At the time of Confederation in 1949, only about one half of the province’s population had electricity and it was not until 1972 that almost every Newfoundlander on the island had electricity. During my early years, we had to rely on our kerosine lanterns, lamps and candles. When we got electricity, my parents tried to save on expenses and so, when schoolwork was finished and my mom finished her knitting or quilting, my dad replaced the higher wattage bulb with a 5 watt one.

Working for the Federal Departments of Transportation and Forestry allowed me to travel extensively from east to west and north to south in Newfoundland and to Nain in Labrador, which is the northernmost personnel settlement in the province. During my visit to Nain, the Canadian Steamship Cabot Strait had to stop at many settlements like Cartwright and Happy Valley-Goose Bay. Churchill Falls is located between those two settlements. The many trips around the island and to Nain and the Labrador coast allowed me to gather some information and speak with people about the Churchill Falls Hydroelectric Power Project.

Churchill Falls is situated on the Churchill River and is one of the largest waterfalls in the Canada where the drop is approximately 245 feet, almost 100 higher than Niagara Falls. The reservoir, known as the Smallwood Reservoir, was formed by reversing the river and building some 88 dykes at a length of about 40 miles. This reservoir is the second largest in the world and covers an area of about 2,520 square miles. It provides over 32 million cubic meters of usable water and is the largest single-site power plant in the world.

The potential of the Churchill River was first noted by Geologist Albert Peter in 1894, but it would be another 73 years before construction would begin. When ground was broken in 1967, it was the largest civil engineering project in North America, requiring over 6,300 workers. This massive operation sits more than 300 metres under the ground, taking a nearly two-minute elevator ride from the ground level Control and Administrative building to arrive at the Powerhouse underground. During construction, there was a total of 663,000 tons of material, equipment and fuel transported to the construction site from as far away as Florida and Alaska.

When the Churchill Falls project was completed, it generated more energy than the combined output of the Aswan Dam in the United Arab Republic and the Grand Coulee Dam in the United States. However, before this giant project was harnessed, the Churchill River had to be diverted about 5 miles (8km) above the falls, eliminating them into a chain of lakes roughly parallel to the river, and millions of cubic yards of material and rock were required to shore up the reservoir around the edge of the plateau. The powerhouse was about 1,000 feet underground, 1,000 feet long, 76 feet wide and 150 feet high. The Churchill Falls project was expected to produce approximately 17 terawatts (TWh) of electricity annual.

Much has been written about Churchill Falls. It’s one of the largest underground power generating projects in the world, and generated roughly one percent of the world’s hydroelectric power. One of the largest engineering projects in Canadian history, Churchill Falls was completed 18 months ahead of schedule, providing its first power on the evening of December 6, 1971 and officially went online in June 1972. During the commemorative ceremony, Joey Smallwood said, “This is our land, this is our river, and we will forever make sure that it will operate primarily, chiefly and mainly for the benefit of the people of Newfoundland.”

Though in the province of Newfoundland and Labrador, Churchill Falls benefited primarily Quebec, which at that time, was one of the largest electricity consumers in Canada. The plant’s operation was a significant contributor to Hydro Quebec’s energy supply, providing about 13% of its power. Nearly all the electricity generated at Churchill Falls was sold under contract at a rock-bottom price to Hydro Quebec which was set to expire on August 31, 2041.

The current Churchill Falls MOW with Quebec is set to end on December 31, 2075. Quebec Hydro sells/exports electricity from Churchill Falls to wholesale markets in Northeastern North America and offers a very important double advantage to markets outside the province by reducing greenhouse gas emissions and targets to manage and lower its carbon footprint, aiming for approximately a 37% reduction in emissions.

On December 12, 2024, Quebec Premier Francois Legault and Premier Andrew Furey met to address the dispute over the Churchill Falls Hydroelectric plant. They signed a memorandum of Understanding (MOU) to end the long-standing contract signed in 1969, which was seen as lopsided in favour of Quebec. This new MOU, not yet officially signed, will allow Quebec to pay an average of 5.9 cents per kilowatt hours, significantly increasing the revenue for Newfoundland and Labrador Hydro, amounting to about $1 billion per year.

The MOU set out the framework for one of the most significant energy deals in the history of Newfoundland and Labrador. This MOU was still a technical commercial document where negotiations were still ongoing and not final, but it was the first critical step in a new, fair deal. Definite negotiating agreements were the final step, and a target date was set for April 2026. These agreements would:

Develop resources with protection from construction and cost overrun risks.
Would secure a fair, market-based price for power, increasing the price 30-fold.
Eliminate the old fixed-price model and new prices would escalate with the market.
Would include strategic off-ramps, giving Newfoundland and Labrador the flexibility to adapt to future market changes.
Would secure nearly four times more energy for use in Labrador and create a massive opportunity for industrial growth and jobs.
Would create thousands of jobs for Newfoundlanders and Labradorians, with a legally required “local first” hiring protocol.

This deal would deliver historic benefits to Newfoundland and Labrador, securing over $225 billion for the province and nearly quadrupling the energy supply in Labrador. The deal would also include and be designed for public trust and transparency, with on-going oversight from a new, independent panel led by consumer advocates.

In addition to the above, there would be significant opportunities for Newfoundland and Labrador businesses during the construction of Gull Island, and this would be embedded in the requirements of the MOU. The work at Gull Island will involve a range of activities to include the collection of environmental data, completion of surveys, and installation of construction trailers.

In December 2021, Newfoundland and Labrador marked the 50th anniversary of the Churchill Falls hydroelectric power project. On December 6th, 1971, the project successfully delivered power across its 735kV transmission lines, more than 1200km to Montreal. To ensure its assets remain strong, reliable and continue to safely operate year after year, this massive operation has undergone various refurbishment, replacements and upgrades to infrastructure and technology. With a generating capacity of 5,428 megawatt, Churchill Falls has been producing and delivering safe, reliable energy to millions of homes for over half a century.

The challenge of developing this major project was not so much about developing complex technology as it was about the scale of planning. Construction teams met this challenge and completed this project on schedule and within budget, despite the harsh climate and remote location. The development of this Churchill Falls Hydroelectric Power Project was a great engineering achievement and it continues to be one of Canada’s greatest success stories.

Al Butt
Ottawa, ON