St. John’s, NL (December 18, 2024) – As part of his ongoing review of the Churchill Falls MOU, Tony Wakeham, Leader of the Progressive Conservative Party and MHA for Stephenville-Port au Port, has identified some key questions he intends to raise, among others, when the House of Assembly opens for debate on January 6.

“The Churchill Falls MOU is a 51-year agreement with Hydro-Quebec.  We have learned from our history with Quebec that long-term deals are nearly impossible to modify if circumstances change, resulting in a less beneficial deal than promised,” said Wakeham. “That is why we must take the right amount of time to ask the right questions and ensure this MOU is in the best interest of our province and our people.”

Key questions Wakeham will raise during the debate include:

• The CEO of Hydro-Quebec said, “If you look at what is happening [to electricity prices] in some U.S. states, if somebody tells me I can get that quantity of electricity for four cents for the next 50 years, I’m going to grab that”. Given these comments, the Premier needs to explain how this price was negotiated. Was there the potential to get more for our power?
• What is the annual rate that Hydro-Quebec will pay for electricity generated at the existing Churchill Falls powerhouse? The Premier has said 5.9 cents per kilowatt hour. Officials in Quebec have said they will pay less than that. Jennifer Williams of NL Hydro has said the price will start at 1.6 cents per kilowatt hour.
• The Premier has said the province will receive $17 billion in new revenue before 2041. Yet, according to the Globe and Mail, Newfoundland and Labrador will receive $9 billion in benefits. Who is correct – the Premier or the Globe and Mail?
• How much revenue will the provincial treasury receive annually? The Premier said, “it starts as of 2025 with a billion dollars a year flowing to the province from the Upper Churchill” yet the schedule in the MOU shows a lesser amount which won’t be received until after the agreements are signed. What is the exact amount that the provincial treasury will receive next year and each of the future years?

Wakeham reiterated his disappointment in the short amount of time given to political parties to effectively review, analyze and debate the MOU. He also stressed the need for full transparency and clear answers to these critical questions.

“This deal will have a significant impact on our province and future generations. The government has had four years to work on this MOU, but we are being forced to review it in just three weeks, including during the holiday season – this is unacceptable."

"The Premier owes it to the people of Newfoundland and Labrador that this MOU undergoes the most thorough review possible by all political parties and others.”