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Hydro-Québec and Newfoundland and Labrador Hydroadvance CChurchill Falls energy deal

Preliminary topographic surveys alongside soil studies in Labrador will start this summer to pave the way for a final deal next year.

Chief executive of Hydro‑Québec Michael Sabia and Jennifer Williams, head of Newfoundland and Labrador Hydro are seen at an energy conference in St. John's, N.L. on Tuesday, June 3, 2025. THE CANADIAN PRESS/Sarah Smellie
Hydro Quebec chief executive Michael Sabia speaks to the media about the company’s plans for the future Thursday, November 2, 2023 in Montreal.THE CANADIAN PRESS/Ryan Remiorz
Quebec's government has officially tapped Michael Sabia as the next head of Hydro-Quebec. Sabia responds to a question at the Public Order Emergency Commission, Thursday, November 17, 2022 in Ottawa. THE CANADIAN PRESS/Adrian Wyld

Overview

  • After decades under a 1969 contract that heavily favored Quebec, the draft agreement would increase payments for power from the Churchill Falls plant and launch joint hydro projects along the river.
  • Hydro-Québec CEO Michael Sabia framed the renegotiation as a demonstration of Canadian energy independence in the face of perceived U.S. pressure under President Trump.
  • Newfoundland and Labrador Hydro president Jennifer Williams said rigorous planning alongside swift execution are compatible in moving the proposed projects forward.
  • Officials plan to begin topographic surveys alongside soil studies in Labrador this summer to support feasibility assessments.
  • Negotiators hope to finalize the new energy deal in 2026, securing increased revenue for Newfoundland and Labrador and long-term supply for Quebec.