Editor’s Note: The Press Release below is the verbatim transcript of Concerned Citizens of Newfoundland and Labrador.
St. John’s, NL—September 30, 2025
Concerned Citizens of Newfoundland and Labrador wish to draw public attention to a newly released analysis by Dr. Doug May of Memorial University, which provides important context for the ongoing MOU negotiations.
Dr. May’s findings, presented as a series of YouTube videos, highlight how climate change-driven drought in critical watershed areas has reduced Hydro-Québec’s (HQ) ability to generate sufficient electricity. As a result, Quebec has had to import electricity from the United States to meet its own generation shortfalls: in some cases, purchasing power from the same U.S. markets and utilities to which it exports, at higher costs. Clearly, it is this growing supply challenge that underscores Quebec’s urgency to finalize agreements under the Churchill Falls MOU.
Quebec’s Emerging Electricity Shortage and It’s Urgent Need for Additional Power
The videos also illustrate how low-cost electricity from Churchill Falls has long enabled HQ to offer some of the cheapest power rates in the industrialized world. For example, residential electricity rates in St. John’s are approximately 80% higher than in Montreal, where rates are the lowest anywhere in the G7. In addition to directly benefiting Quebec consumers, this policy also increases equalization payments to the Province of Quebec by strategically suppressing government revenues.
Importantly, Dr. May also highlights a significant disparity in royalty arrangements—in that NL receives water royalties estimated at just 1/36th of what Quebec collects for comparable hydroelectric generation. And, notably, HQ’s royalty revenues flow directly to the Quebec government, helping to reduce its provincial debt. NL Hydro has indicated that royalty rates will be “modernized” as part of the MOU discussions—an area with significant potential to increase revenues for the people of our province.
The analysis also suggests that NL is likely in a far stronger bargaining position than was assumed during the negotiation of the current MOU. By better understanding Quebec’s reliance on Churchill Falls power, citizens and policymakers alike can better appreciate the urgency on the Quebec side and the opportunity this represents to ensure that any agreements serve the best interests of the citizens of Newfoundland and Labrador.
The full series of videos can be accessed here: Churchill Falls MOU Analysis by Dr. Doug May
We encourage all citizens to watch and become better informed, as these insights are critical to achieving transparency and fairness in the Churchill Falls MOU process.
About the Concerned Citizens of Newfoundland and Labrador
Concerned Citizens of Newfoundland and Labrador is a group of volunteers dedicated to ensuring that the people of our province have full access to information about the Churchill Falls MOU.
Media Contact:
Alvin Hewlett
Phone: (709) 697-1275
Email: ahewlett.mwhite@gmail.com
