Newfoundland and Labrador Premier Tony Wakeham has decided not to proceed with holding a referendum on a new Churchill Falls deal, citing changing political circumstances as the reason for his decision. Wakeham had promised a referendum during last year’s provincial election but announced a new deal on Monday alongside Prime Minister Mark Carney and Quebec Premier Christine Fréchette, without putting it to a public vote.
Wakeham explained that the involvement of the federal government in the new deal presented significant opportunities that were not previously considered. He highlighted the impact of the U.S. trade war on the evolving situation, with U.S. President Donald Trump having temporarily paused tariffs on Canadian goods.
The House of Assembly will convene on Sept. 14 for a special debate on the new deal, which replaces a 2024 memorandum of understanding (MOU) reached by the previous Liberal government. Wakeham emphasized that the new agreement offers better terms, including the option for Newfoundland and Labrador to sell power to Quebec or support the local industry with excess power.
The new deal also includes benefits such as loan guarantees for the Gull Island hydroelectric project, investment tax credits, and assistance in building the Labrador Transmission Line. Wakeham expressed optimism about finalizing the agreement by the year’s end, despite the uncertainty of a potential change in government in Quebec.
Energy N.L. CEO Charlene Johnson praised the new deal as a significant clean energy investment and highlighted the opportunities it would bring for her members. She emphasized the importance of Newfoundland and Labrador’s energy resources in meeting global energy demands amidst a volatile geopolitical landscape.
The announcement of the new Churchill Falls deal has generated enthusiasm within the energy sector for the upcoming projects and the economic opportunities they will create.
