Unexpectedly, Reece lost the premiership in 1969, when the ALP was narrowly defeated by the Liberal Party led by Angus Bethune.

The Liberals had gained a one-seat majority in the House of Assembly by forming a coalition with former Speaker Kevin Lyons, who had founded his own Centre Party.

Well known for his staunch support of Tasmania's Hydro Electric Commission and its power development schemes on the Gordon River, Reece acquired as a result the nickname 'Electric Eric'.

The thing that was significant was that we had to double the output of power in this state in 10 years in order [to] supply the demands of industry and the community.

On this occasion he marched with the incumbent Liberal Premier Robin Gray (a great and self-confessed admirer of his, despite the two men's political differences) in support of the Gordon-below-Franklin dam[5] He died on 23 October 1999 at the age of 90.

Green, Roger (1981) Battle for the Franklin Sydney: Australian Conservation Foundation and Fontana Books ISBN 0-00-636715-1 – specifically pp 26–38 for an extended interview as to his views of the Lake Pedder issue.

The Life and Times of Eric Reece an Australian State Premier' Bokprint and Maribyrnong Press ISBN 978-0-9806157-3-9 (Paperback), 978-0-980157-4-6 (Hardback)