Ideas pitched for P.E.I. energy future

A Crown corporation and natural gas were amongst the ideas suggested in hearings held by the P.E.I. Energy Commission Wednesday on the future of electricity on the Island.

Wednesday was for stakeholders in the industry, and presenters included Maritime Electric, the province's main electrical utility; Cavendish Farms, the province's single largest user of electricity; and the Council of Canadians, representing citizens.

The provincial government created the commission to determine how to provide stable rates in the years ahead.

Prince Edward Islanders pay more for electricity than anyone in any other province in Canada. Electricity rates have been rising at about double the rate of inflation since 1998.

The Council of Canadians argued rates could be eased if Maritime Electric was made a Crown corporation.

"Eighty per cent of Canadian energy supply is in public hands at the moment," said spokesman Leo Broderick.

"Wherever there are public ownership of energy it is certainly cheaper and it is better for the community."

But Maritime Electric argued rates are high because the Island doesn't have any local resources such as oil or natural gas. CEO Fred O'Brien said that wouldn't change if his company was a Crown corporation.

"They'll still have to buy power from essentially the same sources we do," said O'Brien.

"If there was a cheaper way to build generation here on the Island we would be doing it."

The main local source of electricity on the Island is wind power. P.E.I. will soon be getting 30 per cent of its electricity from wind energy, but with current grid technology that's as high as the province can go.

Last year Cavendish Farms began trucking in natural gas from the mainland to make electricity, and generating biofuel using the waste product from making french fries.

"[We] went from actually having to truck our potato waste and other waste away to actually generating energy from it," said Larry Flemming of Cavendish Farms.

"That offsets a fairly substantial portion of our energy costs."

Others at the hearing suggested natural gas should be considered for electricity generation, either with a pipeline to the Island, or a plant on the mainland that would generate electricity that would go to P.E.I.

There will be a similar session for stakeholders Thursday afternoon. A series of public forums begins next week.

The Energy Commission is supposed to deliver its recommendations to government in the fall.