The Churchill Falls contract is signed (1969)
Newfoundland's power corporation agreed to sell most of Churchill Falls output to Hydro-Québec at fixed prices that fell over time. The deal locked in rates near 0.2 cents a kilowatt-hour and ran to 2041, with a near-automatic renewal.
Quebec financed the plant and secured cheap, reliable power for its grid.
As market prices climbed, Quebec earned huge resale profits while Newfoundland collected about $100 million a year. Courts upheld the contract into 2019.
This is the grievance the 2026 deal is meant to settle. Understanding how one-sided the original became explains why the reset matters so much in Newfoundland.
