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Quebec premier to visit Newfoundland and Labrador for talks on Churchill Falls deal

Click to play video: 'Why Quebec gets most out of Churchill Falls power plant'
Why Quebec gets most out of Churchill Falls power plant
WATCH: In 1969, Quebec Hydro signed a contract that would eventually provide billions in revenue and leave Newfoundland and Labrador residents asking questions – Nov 2, 2018

Quebec Premier François Legault will travel to Newfoundland and Labrador on Thursday for two days of talks on a new Churchill Falls hydroelectricity deal.

Legault made the announcement during question period at the Quebec City legislature.

The 1969 agreement with Newfoundland and Labrador allows Hydro-Québec to purchase the majority of the electricity generated at the station in central Labrador — and therefore reap most of the profits.

As of 2019, the deal has yielded close to $28 billion in profits to Quebec, compared to just $2 billion for Newfoundland and Labrador.

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Legault has made the deal’s renewal a key piece of his energy strategy as the province tries to lower emissions and meet its growing electricity needs.

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The Newfoundland and Labrador government established a panel last year to prepare for the negotiations and examine how the province could benefit when the current agreement ends in 2041.

The panel says in a news release that its recommendations to the provincial government include negotiating a new arrangement for sales to Hydro-Quebec.

In a tweet Tuesday, Newfoundland and Labrador Premier Andrew Furey said there is “much potential” to work with Quebec and meet future energy demands.

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Furey says his team will ensure Newfoundlanders and Labradorians get the best possible value from the province’s energy assets.

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