On June 12, 2025, an important update regarding the energy negotiations between Quebec's hydro utility and Newfoundland and Labrador was reported. Jennifer Williams, the chief executive officer of Newfoundland and Labrador Hydro, assured that the upcoming resignation of Michael Sabia, the CEO of Hydro-Québec, would not disrupt the final negotiations for a new energy agreement. Sabia is set to leave his position in July 2025 to assume the role of clerk of the Privy Council in Ottawa.

Williams highlighted that the negotiations between Hydro-Québec and Newfoundland and Labrador Hydro were progressing "full steam ahead" despite the leadership change at Hydro-Québec. The two utilities have been engaged in a significant negotiation process that aims to replace an outdated contract dating back to 1969. This contract has historically allowed Hydro-Québec to acquire the majority of power generated by the Churchill Falls generating station in Labrador at exceptionally low prices.

The new draft agreement on the table indicates a substantial change in terms. Hydro-Québec is expected to pay significantly higher rates for the power it purchases, as well as to collaborate on the development of new projects along the Churchill River with Newfoundland and Labrador Hydro. This shift marks a critical transition in Canada's energy landscape, aiming to establish a more equitable partnership between the two provinces.

Furthermore, Hydro-Québec has expressed confidence in the continuity of its vision and objectives, attributing the cultivation of this "genuine partnership" to Michael Sabia's leadership. The utility emphasized that its "seasoned executive team" is well-equipped to carry forward the plans that Sabia has laid out in collaboration with Newfoundland and Labrador's hydro authority.

This restructuring of the energy agreement represents not only a pivotal moment for Hydro-Québec and Newfoundland and Labrador Hydro but also for the broader implications it may have on energy pricing and cooperation in Canada. The stakeholders involved continue to work closely to finalize the agreement, ensuring that both parties benefit from the changes. The leadership of both Williams and Sabia has been instrumental in steering these discussions toward a more favorable outcome, and the ongoing negotiations reflect a commitment to energy equity and development in the region.