Quebec and Newfoundland Strike Landmark Churchill Falls Energy Deal

The agreement increases Newfoundland's revenue tenfold and secures Quebec's long-term energy needs with plans for new hydro projects.

The preliminary agreement increases Hydro-Québec's payment for Churchill Falls power from 0.2 cents to 4 cents per kilowatt-hour until 2041, benefiting Newfoundland with an additional $9 billion in revenue over 16 years.
The deal extends the Churchill Falls power contract to 2075, with Hydro-Québec paying an average of 6 cents per kilowatt-hour for electricity from existing and future hydro developments.
The provinces plan $25 billion in new hydroelectric projects, including a long-awaited facility at Gull Island, with Hydro-Québec assuming 90% of the financial risk and purchasing 90% of the power generated.
The agreement aims to address decades of tension over the original 1969 contract, which heavily favored Quebec, and includes commitments to engage with Indigenous communities before finalizing the deal.
Hydro-Québec secures access to 7,200 megawatts of power for 50 years, helping Quebec meet its rising electricity demand and carbon neutrality goals by 2050.