A decades-long standoff between this province and Quebec could finally be coming to an end.
Premier Andrew Furey and Quebec Premier Francois Legault are set to make what’s being called a “significant announcement” tomorrow.
It appears as though a deal has been reached to address the contentious Upper Churchill contract in which this province earns just a fraction of the overall revenue generated by the massive hydro project.
The contract is not supposed to end until 2041 and previous attempts in the Quebec Superior Court to revisit the contract and right the wrongs signed off on back in 1969 have failed.
Optimism was piqued when Quebec Premier Francois Legault approached the province indicating that he’s open to discussions on the Upper Churchill.
An announcement is coming tomorrow at 2:00 involving both premiers, NL Hydro President and CEO Jennifer Williams, Energy Minister Andrew Parsons, and the Minister of Quebec’s Department of Energy, Christine Frechette.
VOCM will cover the announcement live.
Previous story:
La Presse is reporting that Quebec and Newfoundland and Labrador are close to ending a decades-long standoff on the contentious Upper Churchill contract, a lop-sided affair that’s been the thorn in NL’s side for the last 50 years. There are strong indications that an update is imminent.
Newfoundland and Labrador sells most of the power produced by the Upper Churchill project to Quebec for a measly 0.2 cents a kilowatt hour in a deal reached in 1969 that did not include an escalation clause to account for inflation and rising costs over the length of the contract.
Numbers released by the provincial government in 2019 showed that Quebec had benefitted from the deal to the tune of $28 billion, while Newfoundland and Labrador had only reaped $2 billion.
The contract doesn’t come to an end until 2041.
Repeated efforts in the courts to right the inequities of the existing contract have failed, but there was renewed hope that this province might finally see a more equitable deal when Quebec Premier Francois Legault signaled a willingness to address the long-standing issue.
Proposed Gull Island project, courtesy Nalcor.
A new deal could help to pave the way for the eventual development of Gull Island. The complicating factor is a court case involving the Innu Nation who have vowed to block any development of the massive Gull Island project if outstanding issues related to Muskrat Falls are not addressed.
The Innu say the Impact Benefit Agreement reached with the federal government was changed to accommodate rate mitigation – that represents a $1 billion loss to the Innu over the next 50 years.
