On December 1, 2024, Newfoundland & Labrador Hydro and Hydro-Québec executed a historic Memorandum of Understanding to terminate and replace the existing Churchill Falls Power Purchase Agreements, which originally covered 5,400 MW. The landmark agreement not only redefines the terms of energy distribution but also lays out major expansion plans across multiple fronts. These include the upgrade of current units to boost capacity by 550 MW, construction of a new powerhouse at Churchill Falls providing 1,100 MW, and the development of the Gull Island hydro project projected at 2,250 MW. Altogether, this results in a total renewable energy capacity surpassing 9,000 MW, making it the largest transaction of its kind in Canadian history.
The new Power Purchase Agreement represents a transformative shift in revenue for Newfoundland and Labrador, increasing average annual earnings from C$20 million to C$1 billion. This is due to a thirtyfold jump in the effective price per kilowatt-hour from 0.2 cents to 5.9 cents.
Stikeman Elliott LLP served as legal counsel to Newfoundland & Labrador Hydro with a team that included Éric Mongeau, Dominique Rolland, Maxime Turcotte, Jean Marc Huot, Patricia Larouche and Shannon Corbeil Bathurst.
McCarthy Tétrault LLP acted as counsel to Hydro-Québec.