REGINA – The opposition New Democrats are raising concerns after a new industry submission was made to the Saskatchewan Rate Review Panel opposing Sask Power's 3.9 per cent power rate increases.
The Saskatchewan Industrial Energy Consumer Association, representing 20 members who are major employers in mining, agriculture, manufacturing and healthcare across the province, provided their written submission to the panel dated March 20.
The NDP particularly pointed to two aspects of that submission. One was the contention that SaskPower had given no indication “formal or otherwise” that a rate increase was coming, with the letter stated that even as late as Dec. 19 they had not been aware.
“A lack of transparency or adherence to established processes not only weakens confidence in Crown rate-setting but also creates broader uncertainty regarding the investment climate in Saskatchewan,” they stated. “These concerns are not isolated to SaskPower. Industry continues to experience uncertainty related to procedural inconsistency and reliability across other Crown entities as well.”
The SEICA submission also questioned the government’s plan to retrofit coal plants, and questioned the government contention that this will keep costs down.
“The Provincial Government maintains that extending the life of coal-fired power plants will help keep electricity affordable and reliable. However, to date, SaskPower has not provided details on the costs associated with this decision or timelines. This is particularly concerning, as many of these assets have not been adequately maintained.
“Further, any discussions on exploring the viability of adding carbon capture units to offset emissions is another factor that must be closely examined with respect to affordability as compared to a new natural gas build or further renewables investment. While SIECA can appreciate the importance of ‘Energy Security’ and SaskPower’s all-of- the-above approach to its asset generation mix, affordability remains a vital concern, and natural gas generation is affordable, reliable and extremely flexible in its ability to complement renewable energy. However, an ‘all of the above approach’ should also include all of the above solutions moving forward rather than heavily investing mostly in coal in the short term.”
In speaking to reporters Opposition Leader Carla Beck raised alarm bells about the concerns expressed by SEICA.
“We've got the 20 largest employers in this province warning that this is going to impact jobs and investment in our province. Again, remember, this is a rate hike that was promised to the people of this province in the legislature on Dec. 4 it was not going to happen.”
Beck was also alarmed by the claims of a lack of transparency.
“To hear from the 20 largest employers in this province — mining, healthcare — that this blindsided them, and they had correspondence as late as Dec 19th… that gave them no indication that this rate hike was coming, only to learn in very early January that not only was a rate hike coming, it was coming on Feb.1st and that the Rate Review Panel somehow, inexplicably, honestly, was going to happen after the rates had already hiked? I think SEICA has outlined it pretty clear.”
Beck called the 3.9 per cent rate hikes, which came in on Feb. 1 on interim basis but are still subject to Rate Review Panel approval, a “huge, huge issue for this province.”
“And frankly, as I said to the Premier today, far be it for me to give him advice, but he needs to stop listening to this Minister (of Sask Power Jeremy Harrison)… I mean, there's no good options for the Premier. Either he stood up and misrepresented this rate hike in December, or his Minister did not tell him about it until he blindsided people in this province and industry with it. Neither of those are good options for someone who's supposed to be leading this province.”
In a statement the government said “SaskPower’s rate application is currently subject to review by the independent Saskatchewan Rate Review Panel. This process exists to ensure proposed rate changes are examined carefully, transparently, and with opportunities for stakeholder input. The government respects the role of the Panel and will not prejudge the outcome of its review.”
The government also stated that ensuring “reliable and affordable electricity remains a priority for Saskatchewan, and pointed to the Saskatchewan First Energy Security Strategy released last fall as having laid out an “all of the above approach to power generation utilizing existing thermal power generation assets while transitioning to a nuclear future powered by Saskatchewan uranium. These existing assets include natural gas, coal, hydro, bio-mass, and intermittent renewables including wind and solar facilities.”
The government said it “values ongoing dialogue with stakeholders and encourages continued participation in the regulatory review process. Continued engagement will help to ensure Saskatchewan’s energy system supports economic growth, investment attraction, and the needs of customers across the province.”
SaskPower has also issued a statement in which they said their top priority is “providing reliable and affordable power to customers across Saskatchewan.” They added that as their customers power needs continue to grow, “we must plan ahead to ensure the power system can meet increasing demand—while also replacing aging infrastructure and continuing to invest in a resilient grid. Achieving these priorities requires significant, sustained investment.”
SaskPower also stated that their industrial customers “are important to our company.” They stated that they meet regularly with SIECA throughout the year, and are “committed to understanding their evolving energy needs and sharing timely information through ongoing communication and engagement.”
“By working together, we help ensure reliable service and support Saskatchewan’s economic development. We look forward to continued consultations with SIECA.”
