February 26, 2013

Examining the possible risks of PEI Energy Commissions’ proposals

HALIFAX, NS- The PEI Energy Commission’s recent proposals dealing with power supply, utility regulation, and regional opportunities could lead to unnecessary cost increases, according to a new report released by the Atlantic Institute for Market Studies (AIMS).

The report, PEI Electricity Policy: A Review of the PEI Energy Commission Report, written by energy consultant Gordon L. Weil, reviews the commission’s proposals for possible risks, specifically to customers.

According to the commission, Maritime Electric should give up electric generation and let the provincial energy corporation take on full responsibility for power supply. This should reduce costs if the corporation neither collects profits nor pays taxes. However, as Weil points out, Maritime Electric would have to be compensated, and the investor-owned utility and province may have differing views of the fair amount to be paid.

While Weil’s report endorses some the commission’s proposals, he also outlines areas for further review and provides alternative approaches.

Weil concludes that the commission’s general review of PEI’s electricity policies, underrates the potential for regional cooperation.

 “As a consuming province, PEI would greatly benefit from a power pool as it could increase its power supply options, while reducing its costs.”

Click here to read this commentary


AIMS is an independent, non-partisan social and economic public policy think tank based in Halifax, NS. It examines such crucial issues as public education, health care, public finances, equalization, natural resources, Atlantica and demographics.

For more information please contact:

Gordon Weil
Atlantic Institute for Market Studies
207-833-6891 or 207-841-0334