New Churchill Falls hydro deal between N.L. and Quebec being finalized: sources

Quebec and Newfoundland Labrador are close to a new deal on Churchill Falls, sources with knowledge of the matter have confirmed to CBC News.

They said two or three issues are outstanding but are close to being resolved and the two governments are aiming to make a formal announcement early next week.

Montreal-based newspaper, La Presse, has reported that an agreement has been reached.

A spokesperson from the N.L. premier's office said, however, that "As of right now, no final deal has been signed."

"We can confirm that in recent days we have made significant progress in our negotiations with both Quebec and the Government of Canada as it relates to replacing the 2024 MOU with a new deal for Churchill Falls and Gull Island," said Ashley Politi, a spokesperson for Tony Wakeham.

Meanwhile, a spokesperson for Quebec Premier Christine Fréchette said in French that she can "neither confirm nor deny this information at the moment."

The development comes just weeks after Wakeham and Fréchette met in Prince Edward Island to discuss a new agreement for the sale and development of Churchill Falls power.

Liberal former premier Andrew Furey initially signed a Memorandum of Understanding with Quebec — aimed at ending and replacing the controversial 1969 Churchill Falls contract — in Dec. of 2024.

The deal also promised the development of Gull Island, a long-discussed hydroelectric project also located on the Churchill River.

Whether a final energy deal with Quebec will be reached is yet to be determined, says N.L. premier

That MOU was expected to be formalized by April 2026 — but this never happened.

After the October 2025 provincial election, the new Progressive Conservative government called for an independent review of the MOU by a committee. In the spring, that committee concluded that the MOU was not in the public interest.

During the election, Wakeham also promised that the Churchill Falls MOU would be put to a referendum. But he has been tight lipped since — only stating that a deal needs to be made first.

Meanwhile, the opposition Liberals are expressing frustration with how the information has been released to the public.