ST. JOHN'S — Newfoundland and Labrador Premier Tony Wakeham acknowledged Friday that talks with Quebec over a reworked Churchill Falls agreement are advancing, but he cautioned that whether negotiators will reach a final settlement remains "to be determined."
Progress, but no promise
After meeting with Quebec Premier Christine Fréchette during the Council of the Federation gathering in Charlottetown this week, Wakeham spoke briefly to reporters at St. John's International Airport. He said negotiators are making headway on a draft deal first unveiled in December 2024 to expand hydroelectric capacity on the Churchill River in Labrador, but that outstanding issues persist.
"I will tell you one thing we didn't discuss was the border, because Labrador is part of Newfoundland and Labrador (and) always has been, always will be,"
The comment referred to the long‑running Labrador boundary dispute, a sensitive political topic that has surfaced in public commentary around the negotiations.
Where things stand
Wakeham did not contest Fréchette's earlier public confidence that a final deal could be struck in the coming weeks, but he emphasised that work remains for negotiators before any agreement can be signed.
Details of the negotiations have been limited publicly. What is known is that the two provinces are revisiting a framework to broaden power generation on the Churchill River and to create opportunity to transmit electricity from Labrador for sale into export markets.
Political sensitivities and compensation talk
The issue has stirred political comment in Quebec. Pascal Paradis, energy critic for the Parti Québécois, told the National Post his party would be willing to negotiate with Wakeham provided the arrangement addressed compensation tied to a 1927 Privy Council ruling that granted part of Labrador to Newfoundland — a matter that predates Newfoundland's entry into Confederation.
Wakeham's reference to the border when speaking with reporters underlines the political sensitivity of any deal that touches on jurisdictional rights and regional identity.
- Negotiations: Ongoing discussions between Newfoundland and Labrador and Quebec on Churchill Falls expansion.
- Draft framework: First made public in December 2024; aims to expand hydro capacity and enable export transmission.
- Outstanding issues: Premier Wakeham says work remains before a final agreement can be reached.
Implications for the province
At stake for Newfoundland and Labrador are increased power generation capacity in Labrador and the ability to move electricity into markets beyond provincial borders — outcomes Wakeham has said he is pursuing. For Labrador communities and for the provincial treasury, expanded generation and export opportunities could carry significant economic consequences.
Quebec stands to gain from access to additional generated capacity and from arranging transmission corridors that would tie Labrador output into wider North American grids. Both provinces must reconcile economic priorities with legal and historical sensitivities tied to the Labrador boundary and property rights.
What negotiators will need to settle
Although the public reporting has been sparing on the precise sticking points, any final agreement will likely have to address:
- the scale and timing of expanded hydro development along the Churchill River;
- mechanisms for transmitting power from Labrador to export markets;
- financial arrangements, commercial terms, and compensation models; and
- assurances on jurisdictional rights and local community impacts.
| Item | Known status |
|---|---|
| Draft framework | Publicly introduced December 2024 |
| Leader discussions | Met at Council of the Federation, Charlottetown |
| Final deal | "To be determined," per Premier Wakeham |
Next steps
Both premiers signalled a willingness to continue negotiations, but Wakeham's airport remarks were deliberately cautious. With Quebec's public expression of optimism and Wakeham's insistence that further work is required, the coming weeks could prove decisive — or reveal deeper gaps that demand more time.
For now, industry stakeholders, Labrador communities and political watchers across Atlantic Canada will be following subsequent developments closely. Any final agreement would reshape a longstanding chapter in eastern Canada's energy landscape and could affect provincial revenues, regional relations and future development on the Churchill River.
As negotiations continue, the province has so far declined to release specific negotiation texts or timelines beyond confirming ongoing discussions and the December 2024 draft framework.
— Reporting from St. John's.
