Quebec and Newfoundland and Labrador have reached a non-binding agreement regarding the Churchill Falls hydroelectric station, a move N.L. Premier Tony Wakeham described as a “win-win-win” for both provinces and the federal government. The deal was announced in St. John’s on August 17, 2026, alongside Prime Minister Mark Carney and Quebec Premier Christine Fréchette.
The agreement, which extends until 2077, is projected to be the largest renewable energy project in North America. According to Hydro-Québec, the deal secures electricity supply at a rate of six cents per kilowatt-hour, a price significantly lower than alternative market options. The project involves an estimated $45 billion in investments, covering a capacity boost at Churchill Falls, the construction of the Gull Island generating station, and expanded transmission infrastructure. The federal government is contributing $6.5 billion to the initiative.
This new framework replaces the 2024 memorandum of understanding, which had faced scrutiny from Premier Wakeham’s administration after he took office in 2025. An independent review had previously deemed the 2024 terms contrary to the public interest. The latest deal seeks to move past the long-standing tensions stemming from the original 1969 contract, which allowed Quebec to purchase power at rates that became a source of significant regional resentment over the decades.