Title: Uncertainty Surrounds Quebec-Newfoundland Energy Deal After Election

ST. JOHN’S — The future of a tentative energy agreement between Quebec and Newfoundland and Labrador is uncertain following the recent provincial election in Newfoundland and Labrador. Quebec Premier François Legault expressed his commitment to collaboration with Newfoundland and Labrador in a social media post on Wednesday. He emphasized the mutual benefits of the agreement, stating, "Please be assured of our full commitment to continue our collaboration with Newfoundland and Labrador."

Legault's comments came after the Progressive Conservative Party, led by Tony Wakeham, won a narrow majority in the provincial election, ending a decade of Liberal governance. The Liberals' campaign had heavily focused on the energy deal with Hydro-Québec, which would require the utility to pay significantly more for power from the Churchill Falls plant in Labrador. This agreement is also expected to pave the way for new hydroelectric projects along the Churchill River.

Wakeham has called for an independent review of the agreement, citing past energy project failures in Newfoundland and Labrador. During his victory speech, he pledged to have the deal evaluated and to present the findings to the public in a referendum. "I will use that review to fix this deal or demand a better one," he told supporters. He added, "Given the generational stakes, I will not sign any deal that Newfoundlanders and Labradorians do not approve in a referendum."

Negotiations between Hydro-Québec and Newfoundland and Labrador Hydro have been ongoing, with a target completion date set for April 2026. However, it remains unclear how Wakeham's proposed review and referendum could impact these negotiations. Political scientist Russell Williams from Memorial University noted that the election results could jeopardize the memorandum of understanding, although this outcome was always a possibility.

Williams pointed out that Legault's declining support in Quebec, where an election is anticipated next year, could complicate matters. He suggested that the incoming government in Newfoundland and Labrador might struggle to finalize agreements before the Quebec election, which polls indicate could favor the Parti Québécois.

The energy deal has faced scrutiny, with critics questioning whether it provides a fair return for Newfoundland and Labrador. Earlier this year, a member of a three-person oversight panel resigned, citing concerns about the panel's independence. Williams criticized the Liberals for not having the draft deal evaluated by an independent expert, stating it was "nightmarishly stupid."

The Liberals had claimed that the agreement would generate approximately $225 billion for Newfoundland and Labrador over the next 50 years. This financial boost was seen as crucial for addressing the province's projected net debt of $19.7 billion next year, affecting a population of about 545,000 people.

As the situation develops, the future of the energy deal remains in question, with both provinces facing significant political and economic challenges.