10-07-2025
Innu Nation, Hydro-Quebec reach Churchill Falls agreement
The Innu Nation has reached a multi-million dollar agreement in principle with Hydro-Quebec — one the Indigenous group describes as "major step" toward an out-of-court settlement of their lawsuit against the public utility.
"Innu negotiators were able to reach a fair agreement to address the damage this project has done," said Grand Chief Simon Pokue in a press release.
The Innu Nation sued Hydro-Quebec and the Churchill Falls (Labrador) Corporation over ecological and cultural damage from the Churchill Falls project.
The New Dawn Agreement, signed in 2011, awarded the Innu compensation for Churchill Falls, and — among other things — paved the way for the Muskrat Falls development.
But it didn't include Hydro-Québec, because they weren't at the table.
This new agreement in principle will see Hydro-Quebec pay $87 million to the Innu of Labrador — members of Sheshatshiu Innu First Nation and Mushuau Innu First Nation — in the form of annual payments to a reconciliation fund over 16 years.
In addition to those payments, the agreement also says for as long as Churchill Falls produces power, three per cent of the dividends which Hydro-Québec receives from the Churchill Falls Corporation will go to the Innu of Labrador.
"It's one of those moments in history where it's a watershed moment," said Peter Penashue, one of the negotiators of the agreement. "It's a very important part of history for the Innu people."
"The project proceeded in 1970s and we did not have any consideration, no compensation, no revenue stream, nothing from the project," he said.
In order to finalize the agreement in principle, the Innu Nation will present it to people in Sheshatshiu and Natuashish, who will vote sometime between September and October.
Penashue said they'll release all terms of the agreement after consultation with the communities is complete.
Gull Island
In addition to acknowledging and addressing the extensive damage the Churchill Falls project has done to the Innu way of life, connection with the land, and culture, this new agreement will also serve as a guideline for future projects — including Gull Island, the much-hyped potentially next hydroelectric megaproject on the Churchill River.
The Innu Nation press release called it a "milestone agreement" which "confirms Innu Nation and Hydro-Quebec's intention to forge a long-term relationship based on openness and mutual respect."
"We've always made it known that Gull Island wasn't going to proceed, or big projects, unless … the past wrongs were dealt with," said Penashue.
"It's going to be important what the people decide themselves," Penashue said. "It's in the community's hands at this point."
