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ST. JOHN’S — Newfoundland and Labrador’s new premier says a long-promised review of a proposed energy deal with Quebec’s hydro utility will begin within weeks.
Tony Wakeham was sworn into office Wednesday in St. John’s, N.L., after his Progressive Conservative party won a slim majority in this month’s provincial election. The victory ended 10 years of Liberal governments in the province.
Over the next two weeks, Wakeham and his cabinet will discuss who will be involved in the review and what it might entail, he said.
“We will be anxious to get the independent review up and running in the next few weeks,” Wakeham told reporters, adding: “My priority is to get the best agreement for Newfoundland and Labrador.”
The premier has demanded an independent review of the draft deal since the former Liberal government unveiled it in December. The tentative agreement would see Hydro-Québec pay a forecasted $38 billion for electricity from the Churchill Falls plant in Labrador.
Hydro-Québec would also lead new developments alongside the Churchill River, to be jointly owned by Newfoundland and Labrador Hydro.
The utilities are negotiating final agreements with a goal of reaching binding deals by April 2026.
Wakeham has also promised to hold a public referendum on any final agreements. It is not clear how a review or a referendum may affect the deadline for binding deals.
The premier said he met with officials from Newfoundland and Labrador Hydro to discuss the deal and negotiations, and he plans to meet with them again in the coming days.
He has no plans to meet with Hydro-Québec, he said.
The draft deal would end an existing agreement that was scheduled to expire in 16 years. The current deal allows Quebec’s utility to buy the lion’s share of the energy from Churchill Falls for rock-bottom prices. In Newfoundland and Labrador, the contract has long been a source of bitterness and distrust of Hydro-Québec.
Liberal Leader John Hogan was premier for about four months before he dissolved the legislature for the Oct. 14 election. He championed the new draft deal and was familiar with the ongoing negotiations.
Wakeham should “engage with Hydro-Québec as soon as possible,” Hogan told reporters Wednesday.
The premier needs to be clear with the public and with Hydro-Québec about his plans for a review and referendum, Hogan said. Hydro-Québec may not want to keep negotiating a deal that gets Wakeham’s approval, but is then voted down by the Newfoundland and Labrador public, he said.
“Quebec has $225-ish billion dollars to spend on their energy future. They’re either going to spend it here in the province, or they’re going to spend it somewhere else,” Hogan said.
This report by The Canadian Press was first published Oct. 29, 2025.
The Canadian Press
