Newfoundland & Labrador Hydro has signed a historic Memorandum of Understanding (MoU) with Hydro-Québec to end and replace the long-standing Churchill Falls Power Purchase Agreements, originally covering 5,400 MW. The new agreement includes major upgrades: boosting existing capacity by 550 MW, constructing a new 1,100 MW powerhouse at Churchill Falls, and launching the Gull Island hydro project, which is projected to add 2,250 MW. Together, these initiatives bring the total renewable energy capacity to over 9,000 MW, making this the largest renewable energy transaction in Canadian history.

A key financial outcome of the new Power Purchase Agreement is a dramatic increase in revenue for Newfoundland and Labrador—from an average of C$20 million annually to about C$1 billion. This leap is driven by an adjustment in the effective energy price, rising from 0.2 cents to 5.9 cents per kilowatt-hour.