Quebec looks to 'bury the hatchet' with N.L. on hydro

Quebec's Premier is looking to "bury the hatchet"with Newfoundland and Labrador on Churchill Falls power, according to one of his cabinet ministers.

Pierre Arcand, Quebec's minister of natural resources, told reporters on Monday that Premier Philippe Couillardhas been talking to representatives from Newfoundland and Labrador's provincial government in an effort to improve relations between the two provinces.

Newfoundland and Labrador and Quebec have had a sometimes-contentious relationship in the past, particularly with regards to hydroelectricity and the Upper Churchill hydroelectric deal.

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The Upper Churchill contract, signed in 1969 and renewed in Septemberfor another 25 years, means Newfoundland and Labrador makes only $2.00 per megawatt hour (MWh.)

"The Premier is talking about the possibility, right now, of burying the hatchet between Quebec and Newfoundland," Arcand said in French.

"Because we're still in court, for a number of years, between Hydro-Quebec and Newfoundland. So the first step is burying the hatchet."

Quebec has always refused to revisit the Upper Churchill agreement, but according to Arcand, that could change.

Nalcor CEO Stan Marshall has also said he wants to normalize relationships with Hydro-Quebec.A spokesperson for Premier Dwight Ball said he was not immediately available for comment.