MontrealPulse
← Back to home
NewsCBC | Montreal News · Tuesday, June 2, 2026

Here's what Hydro-Québec fought to hide from the Newfoundland and Labrador government

Hydro-Québec just lost a two-year legal battle to keep 1960s correspondence secret, and the revealed letters show the utility discussing how cheap Churchill Falls power could sweeten deals for aluminum companies considering Quebec locations. The provincial energy giant fought hard in front of Quebec's access-to-information commission to censor decades-old documents, claiming they could somehow jeopardize current negotiations with Newfoundland and Labrador over the controversial Churchill Falls contract, as reported by CBC Montreal. The uncensored letters reveal internal strategies from when Quebec officials were courting French aluminum company Pechiney to build a smelter in Sept-Îles back in 1966. A Hydro-Québec official wrote that the utility "could not make a firm commitment before next spring, or more specifically before signing the [Churchill Falls] contract." The correspondence shows government enthusiasm for using the anticipated cheap power from Churchill Falls — eventually locked in through the infamous 1969 deal — to offer attractive energy rates to industrial clients. That 1969 contract has been a goldmine for Hydro-Québec and a sore point for Newfoundland and Labrador ever since. The agreement expires in 2041, and both provinces are currently trying to hammer out a replacement deal, which explains why Hydro-Québec was so protective of these musty old files. The fight started in 2022 when Marie-Claude Premont, a professor at École nationale d'administration publique, requested the nearly 60-year-old documents for research. Hydro-Québec handed over heavily redacted versions, prompting Premont to lawyer up and successfully challenge the censorship. Energy experts who reviewed the uncensored letters told CBC they couldn't identify anything that would give either province an unfair advantage in current negotiations. For West Island residents, this matters because Hydro-Québec's energy strategy directly affects our bills and the province's industrial development. The utility's aluminum sector courtship helped shape Quebec's energy-intensive industrial landscape, though economist Jean-Thomas Bernard notes that the 1980s aluminum boom was actually driven by James Bay power surpluses, not Churchill Falls. The episode highlights how Quebec public bodies can too easily hide historical information behind claims of commercial sensitivity. After all, if 60-year-old letters about a smelter that was never built can threaten modern negotiations, what can't they censor? Hydro-Québec took two weeks to finally release the documents to The Canadian Press and still hasn't posted them online as required — because apparently transparency, like good customer service, takes time to generate.