Ditch Deal say da b'ys
Group says Wakeham should start over with Quebec
Following is the text of a statement from a group opposed to the memorandum of understanding with Quebec on Churchill Falls and Gull Island.
Prominent Newfoundlanders and Labradorians Call for Rejection of Churchill Falls MOU
Group says province should pause negotiations and pursue a better deal before committing future generations
ST. JOHN’S, NL, June 10, 2026 – A group of Newfoundland and Labrador business leaders, former senior public servants, lawyers, and energy experts is calling on the provincial government to reject the proposed Churchill Falls Memorandum of Understanding (MOU), arguing that it fails to deliver fair value for one of the province’s most important public assets.
The group’s submission to the Independent Review Committee, titled A Flawed MOU: A Better Path Forward, concludes that the proposed agreement repeats several of the mistakes that have long been associated with the 1969 Churchill Falls contract and does not make Newfoundlanders and Labradorians the principal beneficiaries of their own hydroelectric resources.
“The lesson of 1969 isn’t that we should never make a deal. It’s that we should never make a bad one,” said Gabe Gregory, spokesperson for the group.
“Newfoundlanders and Labradorians have waited decades for the opportunity to renegotiate Churchill Falls. We now have a once-in-a-generation chance to get this right. Our concern is that this agreement locks the province into another long-term arrangement without securing the value our people deserve from these resources.”
The submission argues that the proposed agreement undervalues power from the existing Churchill Falls plant, delays much of the anticipated revenue until later decades of the agreement, and lacks several protections commonly found in major energy agreements elsewhere in the world.
Among the group’s concerns:
The agreement would run for 51 years, a term the group believes is far longer than comparable hydroelectric agreements internationally.
Much of the projected financial benefit arrives decades into the future, creating significant uncertainty about its real value.
The proposed pricing structure does not reflect market-based pricing for power generated at Churchill Falls.
The agreement contains no meaningful re-opener clauses or exit provisions should circumstances change.
Newfoundland and Labrador would still lack practical access to alternative electricity markets through Quebec’s transmission network.
Future development projects are structured in a way that limits the province’s ability to benefit from higher electricity prices in the future.
The group argues that the province is under no immediate pressure to reach an agreement and should instead take the time necessary to develop a stronger negotiating position.
“Time is on Newfoundland and Labrador’s side,” Gregory said. “The existing Churchill Falls plant is already producing the power we need. Before committing ourselves to a 51-year agreement, we should ensure we have a deal that reflects the true value of these resources and protects the interests of future generations.”
The submission recommends that the current MOU be rejected and that the province undertake a comprehensive review of its long-term energy strategy before re-engaging in negotiations. It also calls for future negotiations to include access to outside electricity markets through Quebec’s transmission system and the development of a modern fiscal framework for hydroelectric resources.
The full submission, A Flawed MOU: A Better Path Forward, is available at https://www.theoldchurchilldealandthenewmou.com/a-flawed-mou-a-better-path-forward
Group Members:
Cathy Beehan – Lawyer, former executive assistant to The Hon. J.C. Crosbie, former deputy head of the NAFTA Secretariat (Canadian Section), CEO Emerita, Action Canada
Gabe Gregory – Professional accountant, independent business consultant and former Executive Vice-President, Operations, Fishery Products International Limited
Des Sullivan – Businessman and former Executive Assistant to Premier Frank Moores and Premier Brian Peckford
David Vardy – Economist, former Clerk of the Executive Council, President of the Marine Institute, Deputy Minister of Fisheries and Chair of the Public Utilities Board
William Wells – Lawyer and former CEO of Newfoundland and Labrador Hydro and Churchill Falls (Labrador) Corporation Limited
Ed, your late posting this, having received it just after 6 pm yesterday and the detail submission about 75 pages or so, will take time to devour but some parts stuck my interest, having worked on the 80 or so dykes testing soil compaction , often in the Lobstick area, with a radio active device about the size of the old Hoover vacuum cleaner, but very different technology, and great guys both from Quebec, Nlfd and California (civil engineer Ken Weir, if memory serves), as most know CFs came in less than the 1 billion dollar cost and on schedule.........and NL owning 2/3 and getting FA of the profits ever since ............its........ as the cookie crumbles, hey b'y , as NLers are poor cookie makers.
I was expecting your take on that report, but I guess that will follow , and say "Told you so, kill the MOU, and stop wasting money and high borrowing so to protect the debt rating agencies. . "
This July deadline , by HQ, or Trumps July 4th , which will be the bigger headline? Or maybe we'll have a July blizzard, many possibilities.
How about investing in Quebec companies that profit so much from NL resources? I can give you some tips.
undertake a comprehensive review of its long-term energy strategy - seems obvious. Premier Wakeham says he'll address the problems with the existing MOU without addressing the causes. where is there a public forum to discuss this?