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CP NewsAlert: Quebec and Newfoundland and Labrador reach energy agreement

  • Sarah Smellie

    Sarah Smellie

  • Canadian Press

  • August 17, 2026

Prime Minister Mark Carney meets with Newfoundland and Labrador Premier Tony Wakeham on Parliament Hill in Ottawa, Wednesday, Nov. 26, 2025. THE CANADIAN PRESS/Adrian Wyld

ST. JOHN'S -- Hydro utilities in Quebec and Newfoundland and Labrador have reached a non-binding agreement to share energy from Labrador, with help from the federal government.

The provincial and federal governments unveiled the sweeping tentative agreement in St. John's.

It outlines plans for Hydro-Quebec and Newfoundland and Labrador Hydro to divvy up power from the Churchill Falls generating station and launch new hydro, wind and transmission projects worth more than $50 billion.

If finalized, the proposal would realize a long-sought goal in Newfoundland and Labrador to transmit power from Labrador -- up to 985 megawatts -- through Quebec to markets in the United States.?

Negotiators hope to hammer out a final deal by the end of this year.

However, Quebec must hold a provincial election by Oct. 5 and it's not clear how the campaign, nor the installation of a new government, could affect those goals.

This report by The Canadian Press was first published Aug. 17, 2026.