"Historic partnership" between NL and Quebec to be announced today dealing with the Upper Churchill

In 2019, Hydro Quebec made 28 billion from Churhcill Falls while NL received $2 billion. 

A deal that was signed in 1969 is not set to expire until 2041, but today, people will get a chance to hear what the new deal will be for the Upper Churchill contract. Talks between both provinces broke down in 1964 and in the May5th, 1965  edition of the Globe and Mail, Quebec Premier Jean Lesage is quoted as saying, “ The absolute first condition since the beginning of negotiations, and this has not changed, is that hydro Quebec shall become the owner of all electricity that travels through the province of Quebec, at its entry point into the province of Quebec. We will negotiate on no other ground than this.”  Over the years, it became a contentious issue for then NL Premier Joey Smallwood. The three stumbling blocks were the boundary, ownership of the then Churchill Falls Labrador Corporation, and the sale of power from the dam to Quebec. Hydro Quebec buys 85 percent of what is produced at Churchill Falls at a cost of  just 0.2 cents a megawatt. Today, rate payers in this province spend over 3 cents for each megawatt wit the surge in electricity costs. According to an article in LaPresse yesterday, “The Churchill Falls contract is extremely profitable for Hydro-Québec, which gets a lot of energy at a ridiculous price. Quebec still has a great need for this energy. François Legault wants to develop a new hydroelectric dam project in Labrador – the Gull Island project, a 2,250 MW structure.”   In 2019, Hydro Quebec made 28 billion from Churhcill Falls while NL received $2 billion.  Bayfm will broadcast today’s announcement starting 2 p.m.