Power production is expected to rise under new Churchill Falls deal — and Labrador west needs it, mayor says

More details are emerging about a new Churchill Falls deal between N.L. and Quebec, including plans to boost energy production and how it will be split.

Earlier this week, sources not authorized to speak confirmed to CBC News a memorandum of understanding was close to being struck between the provinces, with a formal announcement possibly coming next week.

As first reported by Radio-Canada, according to sources close to the matter, each province will receive significantly more electricity than the previous MOU stipulated — with nearly 40 per cent more for Quebec and between 25 per cent and 60 per cent more for N.L.

Quebec will receive around 10,000 MW, while N.L. will receive at least 2,350 MW — possibly as much as 3,000 MW. Some details still remain to be worked out.

To increase electricity production by that amount, the two sides have agreed to develop an even more powerful hydroelectric facility at Gull Island and further increase the generating capacity of the turbines at the existing Churchill Falls plant.

The new agreement also includes wind power, which was not part of the 2024 MOU.

According to sources, this is where the main difference between the two agreements lies. The price at which the electricity will be sold is not expected to have changed significantly.

During last year’s election, N.L. Premier Tony Wakeham promised the Churchill Falls MOU would be put to a referendum if his party formed government.

When asked if a new deal should be put for a referendum, Lela Evans, Torngat Mountain MHA and Minister for Labrador Affairs, did not address the question, instead pointing out the PCs have been in government for the better part of a year.

“I think we're starting to see now what a Tony Wakeham government is doing. It’s creating opportunities for the people in the province. It's going to create a lot of jobs and it's going to create a lot of financial wealth for our residents,” she told reporters Friday, before segueing back to the fertility funding announcement she was at Confederation Building to make.

Referendum question lingers as new Churchill Falls MOU expected next week

When Radio-Canada asked whether the deal could be released Monday, or potential reaction from the Innu Nation on a wind project on their land, Evans was tight-lipped, once again pivoting to speaking about the funding announcement.

Labrador City Mayor Jordan Brown said people in his region have been waiting for a new deal that will boost electricity production.

“It's a make-or-break kind of situation. If no deal was had … within this year, we could have seen cancellations of projects and probably a mini-recession here in the region,” Brown told CBC Radio’s Labrador Morning .