By Monique Mulima | Updated on Aug 16, 2026 at 04:16 PM
The Canadian provinces of Quebec and Newfoundland and Labrador are poised to announce a major new electricity supply agreement, according to a report from Radio-Canada.
Newfoundland and Labrador Premier Tony Wakeham has scheduled a news conference with Quebec Premier Christine Fréchette on Monday afternoon. The two provinces have large hydroelectric resources, but have fought for years over a lopsided contract that allows Quebec to buy power from its eastern neighbor at rock-bottom rates.
As part of the new agreement, Quebec will receive 10 gigawatts of power over the long term and Newfoundland will receive 2.35 gigawatts to 3 gigawatts. That’s 39% more for Quebec and as much as a 58% increase for Newfoundland, compared with a previous deal announced in late 2024, according to Radio-Canada, the French-language public broadcaster.
That earlier deal was a 50-year power supply agreement worth C$34 billion ($24.5 billion). But it fell apart when Wakeham, who became premier last October, said it wasn’t in the best interest of his province and called for fresh negotiations.
One gigawatt is roughly equal to the power generated by a typical nuclear reactor.
As under the previous agreement, Churchill Falls Labrador Corp. is now expected to increase its generating capacity and a new run-of-river generating station is planned on the Churchill River at Gull Island to increase power capacity. But the new agreement will also include wind power, according to Radio-Canada.
Hydro-Quebec, a utility owned by Quebec, Canada’s second-most populous province, holds a 34% stake in Churchill Falls Labrador Corp., and the rest is owned by Newfoundland’s provincial power company.