Renewable energy coming to P.E.I.
Maritime Electric still reviewing 6 project proposals
Last Updated: Thursday, June 10, 2010 | 7:51 PM AT
CBC News
Related
Internal Links
Maritime Electric is still evaluating six renewable energy projects for Prince Edward Island that could cost an estimated $300 million, the company president says.
Fred O'Brien was asked about the status of the projects Thursday at the annual shareholders meeting of its parent company, Fortis Inc. of Newfoundland.
Last fall, the P.E.I. government put out a call for proposals to develop 130 megawatts of renewable energy, with 30 megawatts allotted for the Island and the rest to be exported.
Six proposals were submitted, mostly for new wind farms.
At the end of April, Maritime Electric, which is evaluating the proposals, said they weren't economical and would be more expensive than buying power from the mainland.
O'Brien told shareholders that the bidding companies were asked to bring their costs down and re-submit their proposals.
"We found a couple of changes that we made — maybe share the risk in the companies a little more — to help the projects be more economical," he said. "We went back to all six and received responses, and we're in the evaluation stages now."
Fortis and Maritime Electric reported record growth and profits at the meeting. Company officials said that on P.E.I., the utility would continue to be just a buyer and distributor of electricity.
Even though it's assessing wind farms for the government, the company has no plans to get involved in its own large-scale generation projects.
Point Lepreau shutdown costing utility $2M a month
There are 1,600 Island shareholders in Fortis. Maritime Electric did not reveal how much they earned last year from their investment. They are guaranteed a return of about 10 per cent.
"The company has operated very conservatively and … [has] made successful investments over the years that have allowed our earnings to continue to grow," Barry Perry, vice-president of Fortis, said.
But Maritime Electric has had an ongoing problem because one of its main suppliers is the Point Lepreau nuclear generating station in New Brunswick. Repairs to the plant have dragged on for several years, and it won't be up and running again until at least 2011.
"At this point, it costs us anywhere from $1.5 million to $2 million per month for incremental costs for replacement energy, and we are paying those costs now," O'Brien said.
Although the costs aren't showing up on Islanders' electrical bills yet, they will once Lepreau starts generating again.
The cost of the expensive replacement power will be spread out over the next 25 years.
"The customers that are going to benefit from this outage are the ones who will benefit over the 25-year period that the station life has been extended," O'Brien said.
Fortis is the largest investor-owned distribution utility in Canada, serving about 2.1 million gas and electricity customers, according to the company website.
Its regulated holdings include electric utilities in five Canadian provinces and three Caribbean countries, and a natural gas utility in British Columbia.
It also owns non-regulated hydroelectric generation assets across Canada and in Belize and upper New York State.
Share Tools
Latest Prince Edward Island News Headlines
- Maritime fishermen seeking larger share of halibut
- Maritime fishermen are lobbying for an increased share of halibut quota, arguing it's not fair Quebec's share is dozens of times larger than what they are allowed to catch. more »
- Charlottetown sewer gets answer from Ottawa
- A Charlottetown city councillor says the federal government has given the City of Charlottetown an answer to its multimillion-dollar request to help fix its sewage problem, but nobody is saying what that answer is. more »
- Outstanding P.E.I. fishing loans top $85M
- An increasing number of P.E.I. fishermen owe the province money and some of them are having a hard time paying it back. more »
- What to get your special someone on Valentine's Day
- For those looking for a last-minute Valentine's Day gift, here are some ideas — from the traditional to the outlandish. more »
Top News Headlines
- Air Canada confident it can reach deal with pilots
- Travellers flying Air Canada can keep booking their flights as negotiations continue with a new federally appointed mediator to help resolve an ongoing contract dispute between the airline and its pilots. more »
- Legalize pot, say former B.C. attorneys general
- Four former B.C. attorneys general are joining a coalition of health and justice experts calling for the legalization of marijuana. more »
- Whitney Houston's funeral to be held Saturday
- Pop star Whitney Houston's funeral service will be held Saturday in the New Jersey church where she first showcased her singing talents as a child. more »
- CN blamed for fatal train derailment in Illinois
- CN is being blamed for a 2009 train derailment in Illinois, in which several cars went off the tracks and caught fire, killing one person and injuring seven others. more »
- Crews tackle Magdalen Islands power outage
- Outstanding P.E.I. fishing loans top $85M
- Charlottetown sewer gets answer from Ottawa
- $700M loan questioned by P.E.I. NDP
- Former shelter manager guilty of sexual assault
- Fundraising support for Tignish girl 'unbelievable'
- Maritime fishermen seeking larger share of halibut
- Coyote worries Charlottetown residents
- More power out on Magdalen Islands

