P.E.I. government looking to own future power plants

P.E.I.'s Minister of Transportation, Infrastructure & Energy Paula Biggar says government will introduce legislation this fall to give itself the option to own future electrical generating facilities proposed by private utility companies including Maritime Electric.

"We're working closely together with (Maritime Electric) as a partner," she told the Legislative Assembly on Thursday, "however we have adopted the policy that any new generating requirements would be an asset of this government."

The announcement comes less than a week after the news the P.E.I. government will finance construction of a new 50 megawatt diesel generating station. According to government, Maritime Electric was ready to apply to build the facility on its own. Government says it will finance the construction cost of $50 million, then lease the facility back to Maritime Electric.

Biggar says that move will save Islanders $30 million on their electricity bills, in part because government can obtain financing at a lower rate.

Opposition finance critic Jamie Fox said he was surprised at the sudden policy announcement, noting it wasn't part of the Liberal election platform or the throne speech delivered last week. He said government's focus should be on securing a funding arrangement to build a pair of new electrical cables to the mainland. Recently the federal government said it would commit $50 million to the $150 million project, but the province wants a 50/50 deal.

"Since the throne speech and we've been back in the House now we've had a total shift, a different shift to a complete different strategy," said Fox. "Is this a policy on the fly? Do they have a plan? What is the priority of their government?"

"We only learned just before I made that announcement that Maritime Electric were preparing a submission to (the Island Regulatory and Appeals Commission)," said Biggar. "So in response to that we felt it important to be proactive, in taking the position that this was going to be our policy going forward."

Green Party leader Peter Bevan-Baker says it makes no sense for the province to build a new generator that runs on fossil fuel.

"At this point in time to be actually building one of these things is crazy," Bevan-Baker said. "It makes no sense economically, it certainly makes no sense ecologically and it really ties us in for the next 30 to 50 years, the lifespan of a plant like this, to an outdated form of energy which is going to cost Islanders an inordinate amount of money over time."

Government says the new plant could run on a number of different fossil fuels including diesel and natural gas. It would only be used to supplement wind energy and electricity coming from the mainland during times of peak load.

Bevan-Baker would like to see government take the time to consider alternative proposals that are more environmentally-friendly, but Biggar says the project has to move forward immediately.

An energy report commissioned by government and delivered September 2012 recommended future electricity generation assets should be publicly owned. It also recommended government begin talks with Maritime Electric to purchase existing generating facilities. Government says it has no plans to do that.