Quebec, Newfoundland and Labrador Announce Energy Deal to Resolve Decades-Old Dispute

Newfoundland and Labrador Premier Andrew Furey (L) and Quebec Premier Francois Legault pose in the Office of the Premier at the Confederation Building in St. John's on Feb. 24, 2023. The Canadian Press/Paul Daly

Quebec and Newfoundland and Labrador have reached a sweeping deal to develop new energy projects in Labrador and end a decades-old contract that has long been a thorn in the side of Canada’s easternmost province.

The new agreement in principle will see Hydro-Québec pay 30 times more for power from the Churchill Falls hydroelectric station in Labrador, and shell out $3.5 billion for the right to partner on the new installations with Newfoundland and Labrador Hydro.