Newfoundland and Labrador’s newly elected Premier Tony Wakeham has initiated a formal review of a proposed energy agreement wiht Hydro-Québec, possibly reshaping the province’s energy future and its financial prospects. The deal, centered around the crucial Churchill Falls hydroelectric generating station, has been under discussion for nearly a year and promises meaningful revenue – potentially CAD $225 billion over 50 years – for the province facing fiscal pressures. Wakeham’s move underscores his commitment to prioritizing Newfoundland and Labrador’s interests and will culminate in a public referendum on any final agreement.
The newly appointed Premier of Newfoundland and Labrador has launched a review of a significant energy agreement with Hydro-Québec, signaling a potential shift in the province’s energy strategy as it navigates ongoing financial challenges. The move comes as the province seeks to maximize benefits from its natural resources.
Premier Tony Wakeham had been calling for an independent assessment of the deal since it was initially proposed by the previous Liberal government approximately one year ago. The agreement centers around the Churchill Falls hydroelectric generating station, a key asset for both provinces.
Negotiating teams had been aiming to finalize the agreement by April 2026, but Wakeham stated on Tuesday that the review committee is now tasked with completing its work by that same date, April 30, 2026. He also reaffirmed his commitment to put any final agreement to a public referendum.
“I’ve accomplished in six weeks what the previous Liberal government failed to do in nearly a year,” Wakeham said. “Had this process been launched last January, as we’ve now put in place, we could have completed this review already.”
Under the preliminary terms of the agreement, Hydro-Québec would pay a higher price for electricity produced by the Churchill Falls plant in Labrador and would lead new development projects along the Churchill River in partnership with Newfoundland and Labrador Hydro.
The Liberal party contends that the deal could generate approximately CAD $225 billion for Canada’s easternmost province over the next 50 years. This potential revenue stream is particularly important given the province’s current fiscal situation.
The proposed agreement would also terminate an existing 16-year-old contract that allows Hydro-Québec to purchase the majority of the electricity from Churchill Falls at significantly discounted rates, subsequently reselling it at much higher prices.
Québec’s Minister of Economy and Energy, Christine Fréchette, reportedly cautioned Newfoundland and Labrador officials that a defeat of the Coalition Avenir Québec (CAQ) in the 2026 elections could jeopardize the agreement.
According to reporting by La Presse Canadienne, the Legault government indicated to its counterparts that a swift agreement would be in their best interest.
Wakeham, however, stated he is not concerned about the potential outcome of the Québec elections. “I only care about the people of Newfoundland and Labrador, and future generations of Newfoundlanders and Labradorians,” he said. “This is our resource, let’s develop it with our citizens, for their benefit.”
Wakeham plans to meet with Québec Premier François Legault early next year.
Chris Huskilson, former CEO of Nova Scotia-based energy company Emera, will chair the review committee. He will be joined by Michael Wilson, a former EY executive who previously criticized the draft agreement, arguing that Newfoundland and Labrador could secure more favorable terms.
Wilson had been part of a committee established by the previous Liberal government to oversee the negotiation of final contracts, but he resigned, believing the team’s mandate, as interpreted by the Liberals, was too narrow to adequately assess the deal.
Huskilson stated he is not intimately familiar with Wilson’s past opinions. He emphasized that the government has launched the review under the province’s Public Inquiries Act, which allows the committee to operate independently and access the information needed to complete its work.
“All three of us are very committed to the independence of this committee and starting with fresh information,” Huskilson said in an interview.
The committee will examine several key questions, including whether other energy markets were considered and whether the projected economic benefits of the agreement are accurate and reasonable. Ultimately, the committee is tasked with determining whether the preliminary agreement best serves the long-term interests of the people of Newfoundland and Labrador, in accordance with the review’s mandate.
Huskilson believes four months will be sufficient, “provided we have the necessary information.”
“We’ll get started as quickly as possible,” he said, adding that the committee held its first meeting on Monday. “We’ll do as much as we can before Christmas, and then we’ll move forward.”
