Projects, ResourceST. JOHN’S, N.L. – Quebec Premier Francois Legault says he is ready to make “adjustments” to the Churchill Falls energy agreement between his province and Newfoundland and Labrador ahead of the official end to the contract in 2041.
Legault was referring to meetings scheduled later this week between himself and Newfoundland and Labrador Premier Andrew Furey. Legault is expected to arrive in St. John’s to dine with Furey on Thursday evening, and energy talks are scheduled for the next day. The talks will be “high level,” Furey said Wednesday, describing them as “discussions” rather than negotiations.
The contract was challenged unsuccessfully in Quebec Superior Court. Churchill Falls Corporation Ltd., a subsidiary of Crown corporation Newfoundland and Labrador Hydro, argued that Hydro-Quebec had a duty to renegotiate the contract because the lopsided profit structure was unforeseen in 1969. Appeals ultimately made it to the Supreme Court of Canada, which ruled in 2018 that there was no legal obligation to reopen the deal.
Legault has made the renewal of the Churchill Falls deal a key piece of his energy strategy as the province tries to lower greenhouse gas emissions and meet its growing electricity needs. He told reporters Wednesday he expects a long negotiation.