Intended to replace the contentious 1969 deal, the new agreement would allow Quebec to continue buying electricity from Churchill Falls \u2014 though at a higher price \u2014 and would increase the amount of energy it imports from Labrador through investments in three new hydroelectric projects.<\/p>\n
The three projects are a new power plant on the Churchill River, increased generating capacity at the existing station, and a run-of-river generating station at Gull Island.<\/p>\n
![\"Map](\"https:\/\/montrealgazette.com\/wp-content\/uploads\/sites\/2\/2026\/05\/churchill-river-dams.svg\")
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When announced, both provinces hailed the agreement as a \u201cwin-win.\u201d But following his election in the fall of 2025, Wakeham expressed skepticism and quickly appointed a three-person panel to review it.<\/p>\n
At a news conference Tuesday, Wakeham said the panel found the memorandum of understanding has positive aspects but is \u201cdeeply flawed.\u201d<\/p>\n
The panel\u2019s report raised concerns about the province\u2019s right to use Churchill Falls power in-province and \u201cproblematic\u201d power pricing models, among other risks.<\/p>\n
\u201cIf the price tag of tearing up one bad deal is being forced to sign a second bad deal, we will be consigning our children and grandchildren to continue living under the shadow of the 1969 agreement,\u201d Wakeham told reporters.\u00a0<\/p>\n
Wakeham announced a new negotiating team but stressed the process would not need to restart from scratch.<\/p>\n
\u201cWe\u2019re going to build on the parts that work, and fix the parts that don\u2019t,\u201d he said.<\/p>\n
Wakeham said he has raised specific concerns about the agreement with Fr\u00e9chette and understands she has issues of her own to put on the table.<\/p>\n
He spoke of a \u201cwindow of opportunity\u201d to reach a new deal but stopped short of setting a timeline.<\/p>\n
In a brief statement issued Tuesday, Hydro-Qu\u00e9bec welcomed Wakeham\u2019s interest in resuming discussions and said it believes a final agreement can \u201ccreate sustainable value.\u201d<\/p>\n
\u201cThat said, any final agreement must be based on balanced terms and be beneficial to Hydro-Qu\u00e9bec\u2019s customers,\u201d the utility added. \u201cThere will be no agreement on terms less favourable than those initially agreed upon.\u201d<\/p>\n
Quebec Economy Minister Bernard Drainville said the provincial government is confident the two sides can finalize the agreement.<\/p>\n
\u201cWe remain committed to getting a final agreement with the government of Newfoundland over what we hope to be a short period of time,\u201d he said.<\/p>\n
Drainville praised the memorandum of understanding signed by Legault in 2024.<\/p>\n
\u201cAnd we think that it is possible to have a final agreement with the government of Newfoundland, which will be yet again a win-win agreement for both of our provinces,\u201d he added.<\/p>\n
Drainville made the comment at an unrelated press conference also attended by Prime Minister Mark Carney.<\/p>\n
Carney said he has had several conversations with the two premiers about the Churchill Falls project.<\/p>\n
Though the proposal is between the two provinces, \u201cif there are things that the government of Canada can do (to help), we will do them,\u201d the prime minister said.<\/p>\n
The Gazette\u2019s Andy Riga contributed to this report.<\/p>\n