Quebec, Newfoundland and Labrador announce Churchill Falls deal [Video]

Quebec and Newfoundland and Labrador may finally settle a decades-old energy contract that has long been a point of tension between the two provinces.

Under the agreement in principle, Quebec will pay 30 times more for power from the Churchill Falls hydroelectricity plant in Labrador.

Hydro-Québec has been buying the lion’s share of power from the facility for less than half a cent a kilowatt hour, making substantial profits. The cost will now be six cents/kWh, allowing Newfoundland and Labrador to significantly increase its revenue.

The new agreement renews Quebec’s access to the Churchill Falls plant, allowing it to buy electricity at a lower price than any other renewable option in North America, according to Hydro-Québec. The province will gain 11,000 megawatts of additional renewable energy by 2035, it added in a news release.

However, the agreement announced Thursday is non-binding and more consultations with local Indigenous communities and further …