Churchill Falls: Que., N.L. announce energy deal worth billions [Video]

ST. JOHN’S, N.L. –

Quebec and Newfoundland and Labrador have signed a sweeping new deal to build new energy projects and throw out a decades-old contract that has long been a source of strife and bitterness for Canada’s easternmost province.

The agreement in principle ends a contract signed in 1969 that allowed Quebec to buy cheap power from the Churchill Falls hydroelectric plant in Labrador, and it promises hundreds of billions in revenue for both provinces through a new, more equal partnership.

“Today, everything changes for Newfoundland and Labrador,” Premier Andrew Furey said during a speech in St. John’s, N.L., that drew several standing ovations. “Today, after more than 50 years of a lopsided agreement that has been such a contentious point for Newfoundland and Labrador, we finally have a new deal on the table for Churchill Falls with Quebec.”

He picked up a copy of the 1969 agreement and tore it in half, …