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Review Rebukes Churchill Falls MOU As Newfoundland Seeks New Terms With Quebec

An independent panel said the draft deal limits Newfoundland and Labrador’s access, sets weak pricing, gives Hydro‑Québec too much control.

From left, Mines and Energy Minister Lloyd Parrott and Premier Tony Wakeham answer questions from the media after releasing the report of the Independent Churchill River Review Committee on Tuesday, May 19, 2026.
The Churchill Falls Independent Review Committee released its report of the 2024 announced Memorandum of Understanding between NL and Quebec for a new electricity deal on May 19, 2025.
Liberal Leader John Hogan speaks with reporters following the release of the independent Churchill Falls review, saying the 2024 memorandum of understanding remains the "backbone" of a potential deal with Quebec.
Premier Tony Wakeham says the federal government could play a role in future Churchill Falls negotiations between Newfoundland and Labrador and Quebec.

Overview

  • Premier Tony Wakeham, following Tuesday’s review report, said the province will not sign the MOU as written, named a new negotiating team of Barry Perry, Jerome Kennedy and NL Hydro CEO Jennifer Williams, invited Quebec back to talks, and pledged a referendum on any final deal.
  • The panel detailed flaws that include limited access to Churchill Falls power for NL Hydro, no guaranteed path to transmit power through Quebec, a complex block‑price model, Hydro‑Québec’s outsized control despite a minority stake, and a net present value of about $31 billion versus the $227 billion headline figure.
  • The report warned the framework would give Newfoundland and Labrador only 500 megawatts of new power between 2042 and 2075, which could choke growth in Labrador West’s mines and slow efforts to switch northern communities off diesel.
  • The committee said the former Liberal government over‑directed negotiators by insisting on a 2% annual price escalator and a 50‑year term against expert advice, and opposition leaders pressed the PCs on transparency after the panel skipped the report’s public release.
  • Quebec officials and Hydro‑Québec said they are ready to keep negotiating but want balanced terms, Prime Minister Mark Carney said Ottawa will help if asked, and a Quebec election in October could complicate the timeline.