Premier Robert Ghiz released details today of the Prince Edward Island Energy Accord that will result in significant electricity cost savings for Island consumers.
“Our five-year energy strategy will reduce power rates and stabilize prices bringing benefits to Island families, seniors, business and commercial users,” said Premier Ghiz. “All these groups will share equally in the power rate reduction of 14 per cent.”
The Prince Edward Island Energy Accord contains a number of initiatives including a new power purchase agreement, increased public investment in wind and the establishment of a Commission on the Future of Electricity in Prince Edward Island.
The major component of the Prince Edward Island Energy Accord is a new five-year power purchase agreement between Maritime Electric and New Brunswick Power that will give Islanders lower power rates and more price stability.
“We are pleased to have worked collaboratively with the province to achieve this deal for our customers,” said Maritime Electric President and CEO Fred O’Brien. “The Accord is a good deal for our customers that will help them plan with greater certainty over the next five years.”
Under the Prince Edward Island Energy Accord, the province will increase its investment in locally-owned and produced wind energy.
“We have already seen the potential for wind power to stabilize energy costs when world oil prices rise,” said Premier Ghiz. “We will expand our wind-power capacity to generate more than 30 per cent of our energy requirements by 2013 and, in doing so, establish Prince Edward Island as a world leader with this technology.”
To ensure that all Islanders have an opportunity to participate in the development of the province’s energy future, a Commission on the Future of Electricity on Prince Edward Island will be established. The Commission will be expert, non-partisan, and will seek the views of Islanders. It will examine key issues that affect the cost of electricity on Prince Edward Island.
Government, with its preferred borrowing rate, will assist in financing the debt associated with the shutdown of Point Lepreau. While the replacement energy costs will be deferred until Point Lepreau is refurbished, government will use its low-cost borrowing rates to finance the debt, over the short term, which will ultimately reduce the overall cost to Islanders.
The Prince Edward Island Energy Accord also identifies the need for additional cable capacity between Prince Edward Island and New Brunswick. The province has requested federal funds to assist with the construction of the proposed cable which is required for our future energy security.
Initiatives encouraging energy reduction and conservation are an integral part of the Energy Accord. Both the province and Maritime Electric promote energy efficiency and conservation. Beginning March 2011, the Office of Energy Efficiency will assume responsibility for energy conservation programs for both organizations and will expand its programming.
The Prince Edward Island Energy Accord also calls for legislative changes. The Electricity Rate Reduction Act will be introduced this session of the Legislative Assembly and will legislate the 14 per cent rate reduction effective March 2011 and the freeze will continue until the spring of 2013.
“I am very pleased we are able to offer Islanders relief from high power rates over the next two years,” said Premier Ghiz. “During this time, government will seek out and find other solutions to bring about longer-term price stability.”
See PEI Energy Accord Backgrounder