Billions on the line as Newfoundland launches four-month review of Quebec hydro deal

Newfoundland and Labrador Premier Tony Wakeham speaks to reporters in St. John's, N.L., on Monday, Dec. 15, 2025, after he announced a three-person panel will review a draft energy deal with Hydro-Quebec. THE CANADIAN PRESS/Sarah Smellie

ST. JOHN’S — Newfoundland and Labrador’s new premier has announced a review of a major draft energy deal with Hydro-Québec.

Progressive Conservative Premier Tony Wakeham says he appointed a three-person panel to review the memorandum of understanding, and says they must complete their work by April 30, 2026.

Wakeham had promised to review the deal in the recent provincial election campaign that brought his party to power.

The review casts uncertainty over the deal that could be worth billions of dollars.

But Wakeham says he is focused on getting the best deal possible for Newfoundland and Labrador and the panel will examine whether that is provided in the existing agreement.

The panel will be chaired by Chris Huskilson, a former president and chief executive of Emera Inc., the parent company Nova Scotia Power.

It also includes former EY executive Michael Wilson, who has shared several lengthy notes with media criticizing the draft deal and saying Newfoundland and Labrador could get better terms.

The non-binding agreement was unveiled in Newfoundland and Labrador about a year ago by former Liberal Premier Andrew Furey and Quebec Premier François Legault.

It proposes Hydro-Québec pay more for power from Churchill Falls in Labrador and lead new hydro developments along the Churchill River, in partnership with Newfoundland and Labrador Hydro.

The Liberals have said it could bring about $225 billion to Canada’s easternmost province over the next 50 years.

This report by The Canadian Press was first published Dec. 15, 2025

Sarah Smellie, The Canadian Press