Maritime Electric, province argue over new generator ownership

Maritime Electric submitted an application for a new 50-megawatt generator to the Island Regulatory and Appeals Commission Thursday, but a bit of a power struggle is emerging over who will own it.

As demand for electricity increases, the utility says it needs more power. 

We just really do need this generator.- Fred O'Brien, Maritime Electric CEO

P.E.I.'s new Liberal government has said it plans to introduce legislation that gives it the option of owning any future power generating facilities.

But Maritime Electric CEO Fred O'Brien said it makes sense that the utility owns the new generator.                            

"This is our business. We have the responsibility to supply," said O'Brien.

"So, we've been developing this project for a couple of years now. Quite naturally, we would like to own this and ensure it's there when we need it. But whoever owns it, we need it in place and we'll work to get it to that point. We just really do need this generator."

Maritime Electric is in discussion with the province, and says government may be able to finance the deal at a lower interest rate, said O'Brien.

The government has estimated the generator would cost about $50 million. However, O'Brien said Maritime Electric estimates it will cost between $65 million to $70 million.              

The company has also forecast a 2.7 per cent increase in electricity rates for Islanders to pay for the new facility.