The agreement promises to transform N.L.’s relationship with Quebec. Here are the unanswered questions that will determine what it’s really worth
The new Churchill Falls agreement promises to rewrite the economics of one of Canada’s largest hydroelectric developments more than a decade before its notoriously lopsided power contract expires.
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Under the agreement in principle announced on Monday, Newfoundland and Labrador will begin receiving substantially more for Churchill Falls electricity starting in 2027, rather than waiting for the existing contract to expire in 2041.
But the agreement goes far beyond that. The province will also gain control of substantially more electricity, secure new ways to benefit from export markets and pursue major new hydroelectric, transmission and wind developments.
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The province estimates the overall package is worth $49 billion in today’s dollars, up from $36 billion under the rejected 2024 memorandum of understanding.
Ottawa is backing the deal with up to $10 billion in financing and other support, which the province values at $3.5 billion in today’s dollars, including a federal loan guarantee for Gull Island.
Here’s what you need to know about this large and complex deal and the questions that remain.