Critics slam Newfoundland, Quebec power agreement as MLA leaves party

There was turmoil in and outside the Newfoundland and Labrador legislature Monday as a four-day debate about a tentative deal to share Labrador energy with Hydro-Québec got underway.

Government member Keith Russell rose to tell his colleagues he was leaving the governing Progressive Conservatives to represent his Labrador district as an Independent. He did not explain why he was walking away from the party and he refused to speak to reporters after his announcement.

“This is not a decision I make lightly, but there are moments in public life when we must listen to our conscience and put the people we represent first,” he told the legislature.

“Mr. Russell was in our caucus this morning,” Wakeham told reporters. “But Mr. Russell has made his choice.”

The Tories now hold half of the legislature’s 40 seats, though they retain a working majority.

Outside the Confederation Building, more than 100 people opposed to the proposed energy agreement sang the “Ode to Newfoundland” — the province’s official anthem — and applauded Russell’s move.

“This deal is absolutely not in Newfoundland and Labrador’s best interest,” said William Wells, who was CEO of Newfoundland and Labrador Hydro from 1996 until 2004.

Wells said the 50-year framework agreement gives Hydro-Québec the lion’s share of the power from the Churchill River in Labrador, with little in return for Newfoundland and Labrador.

The province’s former Liberal government first unveiled a draft deal in 2024, but Wakeham sent negotiators back to work after he was sworn in as premier last year. He unveiled the latest iteration of the agreement last month, alongside Prime Minister Mark Carney, who touted it as the “largest clean energy investment in North American history.”

The framework agreement outlines plans for Hydro-Québec and Newfoundland and Labrador Hydro to divvy up power from the Churchill Falls generating station and launch new hydro, wind and transmission projects worth more than $50 billion, officials said.

The two provinces’ electric utilities co-own and operate the 5,428-megawatt Churchill Falls hydroelectric plant through a 1969 contract described by critics in Newfoundland and Labrador as lopsided in favour of Hydro-Québec.

The Tories opened the legislature on Monday for four days of debate, after walking back their promise to subject any final agreements to a referendum. Outside, at least one protester held up a sign saying, “Tony lied,” denouncing the broken referendum promise.

Des Sullivan said the proposed agreement was a “travesty” because it gives Quebec decades of energy at rates below market value, just as the 1969 contract did. Sullivan is well known in the province for his energy blog, called Uncle Gnarly.

“I don’t think that’s well understood by Newfoundland and Labrador people.” Sullivan said.