Premier Wakeham says he “has secured the ability to transmit power from Churchill Falls and Gull Island through Quebec to the U.S. marketplace.” However, that is not what his new agreement does.
The deal states that “NLH may elect to sell to Quebec” a limited amount of power based on U.S. prices, with limitations. There is zero ability for NL Hydro to negotiate a price directly with a U.S. market and then use Quebec transmission to meet that obligation. Zero.
This raises a significant additional concern. U.S. market-based pricing under the new agreement can only apply to approximately 720 MW, whereas the 2024 MOU ensured that U.S. and other market prices applied to all power sold from Churchill Falls.
Former PUB Chair David Vardy told CBC News that the new deal only “maintains our current status.” It does not provide Newfoundland and Labrador with additional wheeling rights to move more power through Quebec to the U.S. marketplace.
This is yet another example of the Premier trying to sell Newfoundlanders and Labradorians a deal that does not live up to the promises he made. Premier Wakeham broke his promise to hold a public referendum on any final agreement for Churchill Falls and Gull Island.
He gave up the escalator clause on Gull Island that would have increased the value of the power over time.
He moved away from the market-based pricing provisions for Churchill Falls that were secured in the 2024 MOU.
And now, he is making claims about transmission through Quebec that are simply not true.
Newfoundlanders and Labradorians deserve straight answers about what this agreement actually delivers, not political spin.
So, is this really a better deal? Or are we stuck in 1969 watching history repeat itself?
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