Newfoundland and Labrador Hydro has extended its interim power purchase agreement with Corner Brook Pulp and Paper Limited for one year, which began on July 1, 2026, and ends on June 30, 2027.

This agreement provides the Provincial Government an opportunity to review and consider Kruger's proposed approach to diversification at Corner Brook Pulp and Paper. Newfoundland and Labrador Hydro will buy up to 280,000 megawatt hours of power at $187 per megawatt hour. Newfoundland and Labrador Hydro can use Corner Brook Pulp and Paper's power supply when needed.

This will not increase electricity rates for customers.

Corner Brook Pulp and Paper is a long-standing employer in rural Newfoundland and Labrador and a key part of the forestry industry. The Provincial Government will work to ensure rural Newfoundland and Labrador economies can grow and thrive, and that the people of the province are the first to benefit from its natural resources.

Quotes
"Extending the power purchase agreement gives our government the time needed to carefully review Kruger's proposed diversification plans and ensure any future decisions are in the best interests of the people of our province. We remain committed to strengthening Newfoundland and Labrador's economy and maximizing the benefits of our natural resources for all of us."
Honourable Craig Pardy
Minister of Finance

"Extending the power purchase agreement between Corner Brook Pulp and Paper Ltd. and Newfoundland and Labrador Hydro is part of the commitment we made in the Letter of Intent signed with Kruger Inc. earlier this year. We are committed to reviewing the company's diversification plan to ensure it works not only for the company and the province, but for the entire forest sector."
Honorable Pleaman Forsey
Minister of Forestry, Agriculture and Lands

"The extension of this agreement will provide additional capacity for NL Hydro at a lower cost as compared to what was signed by the previous administration as our government ensures due diligence in reviewing the Kruger proposal."
Honourable Lloyd Parrott
Minister of Energy and Mines