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Quebec, Newfoundland and Labrador Reportedly Set to Reveal New Churchill River Power Deal

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Canadian provinces of Newfoundland and Labrador, and Quebec are all set to reveal a major new electricity supply agreement, according to reports by multiple news outlets.

According to reports, Newfoundland Premier Tony Wakeham has scheduled a news conference alongside Quebec's Premier Christine Frechette, to take place on Monday afternoon, though neither province has explicitly stated what it was about.

The two provinces with large hydroelectric resources have fought over a lopsided contract, which allowed Quebec to buy power from its eastern neighbour at rock-bottom prices, according to a report by Bloomberg News.

As part of the new agreement, Quebec is expected to receive 10 gigawatts of power over the long-term, while Newfoundland will receive 2.35 to 3 GW, representing a 39% and 58% increase in power supplies, respectively, across both provinces.

The new deal on Churchill River power is expected to have a guaranteed transmission access of 985 megawatts through Quebec, which means that Newfoundland and Labrador could sell the same to other markets, according to CBC Canada, citing people familiar with the matter.

This comes after the previous 50-year power supply agreement, worth C$34 billion ($24.5 billion) fell apart after Wakeham became Premier of Newfoundland last year, who said that it wasn't in the best interest of the province.

The offices of Premiers Tony Wakeham and Christine Frechette did not immediately respond to' request for a comment on this story.

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