A former CEO of N.L. Hydro argues the utility was shortchanged in a new deal with Hydro-Québec
Wells claims that Hydro-Québec should be paying a lot more—like tens of billions more. He feels that most Newfoundlanders don’t even realize how much they’re losing. Current CEO Jennifer Williams disagrees, saying they’ve negotiated a fair deal that maximizes value for the province.
When the MOU was announced, Quebec Premier François Legault touted it as a win-win, promising $227 billion in revenue for Newfoundland and Labrador by 2075. But Wells thinks they could have pushed for even more cash. He argues that the price set for power is way too low compared to what Hydro-Québec would pay for alternatives.
Wells points out that Hydro-Québec has said it could cost them between 13 and 16 cents per kilowatt hour to produce power elsewhere. So, he wonders why Newfoundland is settling for less than two cents to start. He’s convinced they’re giving away a fortune—maybe even up to $200 billion if they had bargained harder.
Williams, however, stands firm, saying the deal is the best they could get. She insists that they’re incentivized to secure the best possible agreement and that it has to make sense for both provinces.
Critics like Wells argue that Hydro-Québec will benefit more in the early years, while Newfoundland and Labrador will see the most cash later on as prices rise. The price increase will depend on a yet-to-be-finalized escalator clause, which could be tricky to predict over the long term.
Williams remains optimistic, saying they’ve built in protections to ensure the province gets significant returns. She believes they’ve managed to reduce risks for the future.
