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Quebec media is reporting new Churchill Falls deal is imminentNewfoundland Premier Tony Wakeham says progress has been made, but no new agreement is in place yetLast updated 2 hours ago You can save this article by registering for free here. Or sign-in if you have an account.Churchill Falls, Labrador. Contributed Hollis Yetman Jr.Despite media reports coming out of Quebec that a new Churchill Falls memorandum of understanding has been reached with that province, the government of Newfoundland and Labrador insists no agreement is in place yet.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorAccording to an article published by La Presse on Wednesday, Aug. 12, 2026, a deal is in place to develop the hydroelectric project in Labrador that has been the source of much political tension in both provinces since a tentative MOU was signed by the provinces in December 2024. A Memorandum of Understanding (MOU) was announced on Dec. 12, 2024 between Newfoundland and Labrador and Quebec to terminate and replace the 1969 Upper Churchill Contract, develop Gull Island and expand capacity of the Churchill Falls plant. StaffSince that original MOU was announced, Newfoundland and Labrador’s government has switched from the Liberal administration that negotiated it to a Progressive Conservative regime led by Premier Tony Wakeham that has renounced the plan and has promised to hold a referendum on a new deal it planned to work out with Quebec.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againQuebec is still governed by the Coalition Avenir Québec, but has had a new premier, Christine Fréchette, since April 2026. She and her party face a general election in October 2026 and are trailing in the polls behind the Parti Québécois, which has vowed to axe the MOU if it wins.According to the La Presse article, the newest deal will include developing more power on the Churchill River than the original MOU had promised and will also incorporate wind power projects, thereby increasing the capacity available to both provinces.The report also said that Wakeham has conceded holding a referendum on the project as a condition of the new agreement. Premier Tony WakehamPostmedia asked Wakeham’s office for an interview and to confirm the veracity of reports of a new deal being formally announced on Monday, but no interview was granted.In an emailed reply provided to all media, Wakeham’s office said there is no deal yet.“We can confirm that in recent days we have made significant progress in our negotiations with both Quebec and the Government of Canada as it relates to replacing the 2024 MOU with a new deal for Churchill Falls and Gull Island,” said the prepared statement.“As of right now, no final deal has been signed. We will inform you should this situation change.”The mention of the federal government‘s involvement refers to the role Ottawa has played in trying to help both sides to agree on a new power deal.La Presse reported that the latest development on that front is the possibility of extending the Clean Electricity Investment Tax Credit — a 15 per cent refundable credit to finance major energy infrastructure projects.The MOU, which involves upgrading the existing hydroelectric power plant at Churchill Falls and developing a new generating station at Gull Island on the Lower Churchill River, would replace the infamous 1969 Churchill Falls contract between Quebec and Newfoundland and Labrador.Not set to expire until 2041, the ‘69 deal has been lopsidedly in favour of Quebec as it purchases cheap power from Newfoundland and Labrador that it sells to North American customers for enormous profit. Former Newfoundland premier Joey Smallwood stands near the Churchill River in Labrador before the 1969 Churchill Falls power agreement was signed with Quebec. Photo by Contributed /SaltWire Network file photoIn a social media post after the La Presse story was published Wednesday evening, the Liberal Party of Newfoundland and Labrador leader John Hogan voiced his concerns about the news report.“Once again, Newfoundlanders and Labradorians are learning about the latest MOU developments through Quebec media rather than from our own government,” posted Hogan.“This time, they’re reporting that a new deal has been reached, but that the core of the agreement remains similar to the previous MOU.“Premier Wakeham needs to be transparent with Newfoundlanders and Labradorians.” Liberal leader John Hogan.In a news release Thursday morning, the leader of Newfoundland and Labrador New Democratic Party also responded to the leaked news of a new deal being finalized, echoing Hogan’s concerns that the news came from the media in Quebec and not from the Wakeham administration directly.“There is not a lot of details available, but the point made in La Presse that the Premier is making a U-turn on his promised referendum in order to get the deal signed before the Quebec election is a very important note,” Jim Dinn said in the NDP release. NDP leader Jim Dinn.“There are many questions: What makes this deal in “the best long-term interest of the people of the province” as per the benchmark set by the government’s own Independent Review Committee in April?”Dinn also asked if Wakeham will be opening the House of Assembly if he foregoes the referendum and asked if the provincial government has consulted with the Innu Nation on the new iteration of the deal. The Churchill Falls Independent Review Committee released its report on May 19, 2026 on the 2024 Memorandum of Understanding signed between NL and Quebec for a new electricity deal on the Churchill River in Labrador.“The seemingly new addition of wind projects for more power and the federal government’s 15 per cent repayable credit may be just fig leaves to make the project look a bit different,” said Dinn.“There are many unanswered questions, and the premier must be transparent. This deal will affect people for many years to come.” Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.