New Churchill Falls power deal expected as Carney meets Quebec, NL premiers

A major energy announcement involving Quebec and Newfoundland and Labrador is expected in St. John's on Monday, amid reports that a new Churchill Falls electricity deal is close.

Prime Minister Mark Carney will join Newfoundland and Labrador Premier Tony Wakeham and Quebec Premier Christine Fréchette for what Wakeham's office described as "an announcement regarding energy security and economic development."

Quebec Energy Minister Bernard Drainville and Hydro-Québec president and CEO Claudine Bouchard are also expected to attend.

Radio-Canada reported that Frechette will sign an agreement, although neither province has confirmed it involves Churchill Falls.

Sources with direct knowledge of the negotiations told CBC News that a new Churchill River power deal would guarantee Newfoundland and Labrador 985 megawatts of transmission access through Quebec, allowing the province to sell electricity to other markets.

Sources also said both provinces could receive significantly more electricity than proposed under the previous memorandum of understanding.

Quebec could receive nearly 40 percent more, while Newfoundland and Labrador's share could rise by between 25 and 60 percent.

The additional electricity would come from a more powerful hydroelectric facility at Gull Island and increased generating capacity at the existing Churchill Falls plant.