The Newfoundland and Labrador House of Assembly opened a four-day special legislative sitting on Monday, September 14, 2026, to debate a proposed 50-year energy agreement with Hydro-Québec concerning the Churchill Falls hydroelectric facility. The negotiations aim to replace the 1969 power contract—which currently runs until 2041—and establish new terms for Churchill Falls, while paving the way for Gull Island and new transmission projects.
Political Fallout and Caucus Defection
The debate began with an unexpected political development when Lake Melville MHA Keith Russell announced at the start of the sitting that he was leaving the Progressive Conservative caucus to sit as an Independent. Russell stated that he was making the move “with some sadness but with a clear conscience.”
Premier Tony Wakeham said he had no advance notice of the departure. Opposition Leader John Hogan remarked on the timing of the floor-crossing during the legislative session. Russell’s exit leaves the Progressive Conservatives with 20 of the House of Assembly’s 40 seats, maintaining a working majority where the Speaker votes only in the event of a tie.
Independent MHA Eddie Joyce and Labrador MHA Lela Evans also addressed the political shift within the legislature, with Evans commenting on the reason for the caucus departure.
Critics targeted the government over the power agreement as the legislative debate commenced.
MHA Lela Evans offered additional perspective on the political landscape in Labrador following the caucus split.
The Churchill Falls Power Station and the 1969 Contract
At the center of the legislative debate is the Churchill Falls hydroelectric power station, located on the Churchill River in Labrador. The facility began generating electricity in 1971 and is one of the largest hydroelectric facilities in the world.
The plant is owned by the Churchill Falls (Labrador) Corporation, or CF(L)Co. Newfoundland and Labrador Hydro holds a 65.8 per cent ownership stake in the company, while Hydro-Québec owns 34.2 per cent.
Under the terms of the 1969 agreement—which includes a 25-year renewal running until 2041—Hydro-Québec buys the vast majority of the electricity produced at Churchill Falls at a very low price. This arrangement has been at the centre of a decades-long dispute over the value Newfoundland and Labrador receives from the plant.
Proposed 50-Year Agreement and Future Transmission Projects
The Progressive Conservative government’s proposed 50-year agreement is designed to replace the original contract. The new agreement would change how Newfoundland and Labrador benefits from its electricity.
Furthermore, the proposed framework paves the way for the development of Gull Island and new transmission projects. MHAs are slated to review the details of the pact across four days of legislative scrutiny.
Worth a look