New agreement means NL Hydro can buy power from Corner Brook Pulp and Paper at reduced rate

    Monday, 22 December 2025 15:45

    By Tonya Organ

    Up to 140,000 megawatt hours of power can be bought at $187 per megawatt hour, down from $275 in the current agreement.

    Newfoundland and Labrador Hydro has reached a new agreement with Corner Brook Pulp and Paper Limited to buy clean hydroelectricity. Up to 140,000 megawatt hours of power can be bought at $187 per megawatt hour, down from $275 in the current agreement. That arrangement has been in place since 2024 and will end in January 2026, when the new agreement will take effect and run until June 30th, 2026. This will not increase electricity rates for customers and NL Hydro can use Corner Brook Pulp and Paper’s power supply when needed.

    Meanwhile, last July, parent company Kruger announced plans for a $700M retrofit at the mill, that includes the production of saw logs and the addition of a wind farm.  Finance Minister Craig Pardy says “This agreement ensures stability while we carefully review the Corner Brook Pulp and Paper Diversification Project proposal.” He says the “priority is to create opportunities that strengthen rural economies and ensure the people of this province are the first to benefit from projects that drive growth and sustainability”

     

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