Premier Furey 'comfortable' with negotiating position for Churchill Falls if it happens

Quebec PremierFranois Legault says negotiating a new Churchill Falls contract will begin in the next few months but his province is also workingon a Plan B.

Churchill Falls, in Labrador, supplies 15 per cent of Quebec's power and, rightnow, the province isgetting a lot of itspower for a very low price.

"In the next few months we have to negotiate the contract with N.L. for Churchill Falls, which stops in 2041," Legault told reporters this week.

"I don't want to have no Plan Bin my pocket and be obliged to accept whatever the tariff Andrew Furey is proposingme. So I think if we want to be in a good negotiation position with Newfoundland, we need to have a B Plan for Churchill Falls, and it means a new dam."

With the contract end date approaching,Hydro-Qubecrisks losing a chunk of its power, which iswhy Legault wants to negotiate a new deal beyond 2041.

Newfoundland and Labrador Premier Andrew Furey saidthere's no guarantee negotiations will even happenbut added it's important to note Hydro-Quebc still owns nearly 35 per cent of Churchill Falls (Labrador) Corporation Limited.

"This is an incredible asset, it's one that grows more valuable by the day and I'm quite comfortable in our starting position should that be the course that decide to take," FureysaidThursday.

"If you look at the position that we're in currently, whether it's because of the disruption in the global energy markets or the necessityto provide greener energy for Quebec's domestic use, whether it's for them to provide the demand and meet the demand for their industrial use, this will continue to be a source of changing market pressures. That puts Newfoundland and Labrador in a better negotiating position."

Two panels are tasked with advising Newfoundland and Labrador andplotting apath forwardwith the historic hydroelectric dam that began producing power in 1971 18 months ahead of schedule.

Negotiating a new deal with Quebec is still a possible outcome, Furey said, butthere are other options and he will wait to see what the panels will suggest.

He said hehopes to have a report in his hands within the next few weeks, althoughin May 2022Fureysaid the reportwas expected by the following September.

"There are other potential opportunities that we haven't thought about, haven't contemplated, whether that's in using the hydroelectric capacity for domestic or domestic-industrial use, or for hydrogen usethere is a different energy space than there was in 1969," Furey said.

"So I'm interested to hear their thoughts before proceeding down any specific road."

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