Premier François Legault and Newfoundland Leadership Finalize Strategic Clean Energy Accord

QUEBEC CITY, Que. — Premier François Legault and Newfoundland and Labrador provincial officials have concluded bilateral negotiations on an updated framework for long-term clean hydroelectric capacity and grid modernization from the Churchill River basin.

Commercial Framework and Transmission Terms

The agreement establishes principles for collaborative capital investments between Hydro-Québec and Newfoundland and Labrador Hydro ahead of the expiry of the historic 1969 Churchill Falls power contract:

• Joint Transmission Development: Framework to co-invest in high-voltage direct current (HVDC) transmission lines to deliver clean baseload power to Eastern Canadian load centers.
• Equitable Revenue Sharing: Modernized tariff structure aligning power rates with contemporary continental renewable energy market benchmarks.

"Quebec and Newfoundland and Labrador share an immense hydro capability that is essential for North America's clean energy transition," Premier Legault said in Quebec City. "By working together constructively, we guarantee energy security, stabilize rates for families, and power our industrial decarbonization targets."

Regional and Consumer Impact

For consumers and industries in Quebec and Atlantic Canada, the agreement provides decades of guaranteed clean baseload electricity, supporting new green industrial manufacturing investments and electric vehicle battery supply chain plants. The pact also provides a predictable, multi-billion-dollar royalty stream for provincial public services in Newfoundland and Labrador while securing power supplies across the St. Lawrence corridor.

Next Steps and Legislative Approvals

The full interprovincial memorandum of understanding will be formally signed in Montreal on August 17, 2026, followed by briefings before the respective provincial legislative standing committees on energy and natural resources in September.