Carney, Wakeham, Fréchette will meet in St. John's as provinces inch toward new deal on Churchill Falls energy

Leaders from Quebec and Newfoundland and Labrador announced an ambitious new energy plan on Monday, describing it as the largest clean energy investment in North America. Prime Minister Mark Carney highlighted the plan, projecting it could power every vehicle, truck, motorcycle, and bus in Canada, as well as the homes in Toronto, Montreal, and Vancouver combined.

The framework agreement aims to divide power from the Churchill Falls generating station, as well as launch new hydro, wind, and transmission projects worth over $50 billion. Quebec's Hydro-Québec and Newfoundland and Labrador Hydro would share approximately 2,750 megawatts of power, while Hydro-Québec would receive 8,515 megawatts. Newfoundland and Labrador Hydro would secure 8,515 megawatts, with the potential for additional power if the partners expand the Churchill Falls plant.

Newfoundland and Labrador could transmit up to 985 megawatts of power from Labrador through Quebec to U.S. markets. The agreement could also resolve decades-long tensions between Newfoundland and Labrador and Quebec, but Quebec Premier Christine Frechette threatened to reject the proposal if it doesn't address Quebec's needs for 10,000 megawatts. Frechette's Coalition Avenir Québec party is not favored to form the next government, as polls show the sovereigntist Parti Québécois and the Liberals as strong contenders.

Newfoundland and Labrador Premier Tony Wakeham acknowledged Quebec's potential rejection of the agreement, emphasizing the importance of the deal for both provinces and the federal government. Wakeham dropped a promise of a referendum on the final deal during the election campaign but maintained he would still hold one for future agreements.