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N.L. premier leaves office on waves of praise, worry about legacy Quebec energy deal

ST. JOHN'S — If all goes to plan, many in Newfoundland and Labrador will likely remember outgoing premier Andrew Furey for ending a decades-old lopsided energy deal with Quebec, according to his inbox.
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Newfoundland and Labrador Premier Andrew Furey (right) and Quebec Premier François Legault look on at the start of a first ministers meeting in Ottawa on Wednesday, Jan. 15, 2025. THE CANADIAN PRESS/Sean Kilpatrick

ST. JOHN'S — If all goes to plan, many in Newfoundland and Labrador will likely remember outgoing premier Andrew Furey for ending a decades-old lopsided energy deal with Quebec, according to his inbox.

More than 80 people sent Furey emails about a new tentative arrangement with Hydro-Québec in the seven weeks after he announced the deal on Dec. 12. The emails were obtained by an access to information request, with the identities of senders redacted.

The emails show a hopeful public deeply engaged in energy issues, in a province still scarred from past missteps.

"I am senior citizen and never thought that I would live to see the day that this issue would be addressed," wrote one person.

"I am a proud Newfoundlander … my eyes fill with tears when I hear the 'Ode to Newfoundland,'" wrote another on the day of the announcement, referring to the province's anthem. "Today my eyes filled with tears and I doubled in size."

Newfoundlanders and Labradorians have long resented a deal signed in 1969 that allows Hydro‑Québec to purchase the lion's share of the energy from the massive Churchill Falls power station in Labrador for rock-bottom prices – 0.2 cents per kilowatt hour.

The deal yielded close to $28 billion in profits to Quebec as of 2019, compared with about $2 billion for Newfoundland and Labrador. It was set to expire in 2041. But on Dec. 12, at a press conference in St. John's, N.L., Andrew Furey tore up a copy of the 1969 contract. He and Quebec Premier François Legault then signed a new draft agreement between the province's utilities that would see Hydro‑Québec pay much more for Churchill Falls power.

If the agreement is finalized and its plans proceed as hoped, Hydro‑Québec would also co-develop new projects along the Churchill River with Newfoundland and Labrador Hydro, and assume much of the financial risk for the builds.

In total, officials say the deal would bring about $225 billion to Newfoundland and Labrador over the next 50 years.

Friday is Furey's last day in office, after he shocked the province with his announcement in February that he would step down. The provincial Liberal party is choosing a new leader – and hence a new premier – on Saturday afternoon.

In December, Furey's announcement of the new deal prompted a flood of emails to his inbox, about half of which were effusive and congratulatory.

"Years of inequity are over," said one note.

Others wrote with questions, advice or pleas for Furey to have the draft agreement reviewed by independent experts. Many of those asking for a review pointed to the Muskrat Falls hydroelectricity project, also in Labrador, which ran more than $6 billion over budget and prompted a public inquiry.

"This is so important for our future … is Newfoundland and Labrador getting the very best deal it can?" said one email. "Let's be sure … an independent review is critical."

People from Labrador asked Furey to ensure jobs will go to Labradorians and its Indigenous Peoples, noting that many Labradorians worked on the Muskrat Falls project and have developed expertise. One email asked Furey to subsidize airfare in Labrador, since the fortunes promised in the draft agreement come from Labrador's natural resources.

People said they were discussing the deal with their friends, family and co-workers. Some asked detailed questions accompanied by charts and references to specific tables in the memorandum of understanding document.

Others worried Newfoundland and Labrador would once again sign a contract that gave its natural resources away and allowed Quebec to profit most. People said they felt the deal didn't receive enough scrutiny before the Liberals voted in the legislature to continue negotiating toward final agreements, which are expected next year.

But even some of the emails critical of the deal or its oversight were hopeful it would ultimately pay off for Newfoundland and Labrador.

Furey appointed an independent three-person oversight panel in January to review the memorandum of understanding and the negotiations toward final agreements.

This report by The Canadian Press was first published May 2, 2025.

Sarah Smellie, The Canadian Press

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