The Government of Prince Edward Island and Maritime Electric jointly filed a General Rate Agreement with the Island Regulatory and Appeals Commission. The Agreement, if approved, would ensure electricity price stability and rates for the next three years.
“We believe this is an important step in securing stable and predictable costs for Islanders for their electricity usage for the next three years,” said Minister of Transportation, Infrastructure and Energy Paula Biggar. “As we work towards a new provincial energy strategy, this proposal allows Islanders to have stable rates and the opportunity to continue to explore long-term policies, programs and approaches to energy and sustainability for the province.”
This Agreement is a direct result of a collaborative approach between the Province of Prince Edward Island and Maritime Electric, with a primary goal to minimize and stabilize electricity costs for Islanders until March 2019. The proposed agreement, if approved, includes an increase of 2.3 per cent for a typical residential customer in each of the next three years. That is an increase of about $2.60 a month.
“We believe this approach secures the best price for our customers and helps them plan for the future”, said Fred O’Brien, CEO of Maritime Electric. “This Agreement allows for continued investment in on-Island operations to ensure that we continue to deliver safe, least cost, reliable electricity to our customers.”
The increase is due to the costs of the new underwater cable, inflation of production costs, and increased depreciation of assets of Maritime Electric. The increased depreciation includes the planned lay-up and eventual retirement of the Charlottetown thermal plant.
Maritime Electric has withdrawn its application for the new CT4 generator. A study completed by New Brunswick Power has found that the firm transmission capacity from New Brunswick to the Nova Scotia/Prince Edward Island interface can be increased, and additional generating capacity on Prince Edward Island can be deferred.
Retirement of the Charlottetown thermal plant and the deferral of the CT4 generator will directly reduce greenhouse gas emissions in energy supply.
“Our energy future will require a focus on clean energy and consumption,” said the Minister. “Our government is committed to diversify our energy mix as we work on the new energy strategy.”
The proposed change to the second block for residential rates is being deferred until the end of the Agreement in 2019. Maritime Electric will continue to study residential rates and will file a report with IRAC by April of 2018.
For a copy of the Agreement filed with IRAC please visit www.maritimeelectric.com to view the full document.