Newfoundland and Labrador Premier Tony Wakeham has decided not to proceed with a public vote on a new Churchill Falls deal, citing changing political circumstances. Wakeham had pledged a referendum during the provincial election but announced a new deal alongside Prime Minister Mark Carney and Quebec Premier Christine Fréchette without a referendum. He acknowledged the disappointment this decision might bring.
In a phone interview with CBC Radio’s The St. John’s Morning Show, Wakeham explained that the involvement of the federal government was a significant factor in the decision. He highlighted the altered landscape due to the ongoing U.S. trade war and the urgency conveyed by the federal government for swift action.
The House of Assembly will convene on September 14 for a special discussion on the new deal, which supersedes a 2024 memorandum of understanding that Wakeham’s government deemed unfavorable to the province. The revised agreement offers Newfoundland and Labrador the option to sell power to Quebec or utilize excess power to support local industries.
Wakeham emphasized the enhanced benefits of the new agreement, including provisions for N.L. to purchase back equity in an onshore wind energy project in Labrador facilitated by Ottawa. The deal also includes loan guarantees for the Gull Island hydroelectric project and investment tax credits, with federal support totaling over $3.5 billion.
Despite the upcoming Quebec election potentially impacting the agreement, Wakeham expressed optimism about the deal’s mutual benefits for both provinces. Energy N.L. CEO Charlene Johnson praised the clean energy investment as a significant opportunity for the region, emphasizing Newfoundland and Labrador’s capacity to meet global energy demands amidst geopolitical uncertainties.
Johnson highlighted the potential for job creation and economic growth from the energy projects, expressing enthusiasm for the project’s full lifecycle. She echoed Carney’s recognition of the deal as a landmark clean energy investment in North America, underscoring the region’s readiness to meet the world’s energy needs.
The definitive agreement is expected to be finalized by the end of the year, marking a pivotal development in the energy sector for Newfoundland and Labrador.
