Review of the MOU between NL and Hydro Quebec has found it "is not in the overall best long-term interest of the people of the province"

Premier Tony Wakeham says “the report makes it clear that on issues ranging from pricing to transmission rights to the restricted ability of NL to access our own electricity for economic development, to the saddling of our province with long term debt…there are credible and realistic alternatives to the terms of the inherited MOU.” 

Government has released details of an independent report on the Memorandum of Understanding that was reached between this province and Hydro Quebec. The three personal panel has spent the past 5 months gathering information and reviewing more than 350 submissions. Today, Premier Tony Wakeham said how we develop the Churchill River will be a generational decision. He says “The Memorandum of Understanding (MOU) has several important aspects that are beneficial for the province of Newfoundland and Labrador. Despite these benefits, however, the IRC finds, based on the evidence it has reviewed, that the MOU as currently configured is not in the overall best long-term interest of the people of the province.”

Wakeham says the good news is that the report provides a comprehensive roadmap for what needs to change to get a better agreement for NL. He says “the report makes it clear that on issues ranging from pricing to transmission rights to the restricted ability of NL to access our own electricity for economic development, to the saddling of our province with long term debt…there are credible and realistic alternatives to the terms of the inherited MOU.” 

Wakeham spoke about how we all live under the shadow of the original 1969 Churchill Falls agreement which forced NL to give away electricity at below market rates. He says “this was never about tearing anything up. This was always about getting the best deal for our province. That is why we created this Independent Review–so we can get this right. We’re going to build on the parts that work and fix the parts that don’t.”

The Premier announced a negotiating team today, led by Barry Perry, former president and CEO of Fortis Inc.,  Jerome P. Kennedy, KC, St. John’s lawyer and former cabinet minister, and Jennifer Williams, president and CEO of Newfoundland and Labrador Hydro.