Energy review defines next steps for reliable electrical service for Islanders

A review of PEI’s electrical service has been completed and will be incorporated in Prince Edward Island’s new energy strategy to be released later in 2025.

On behalf of the Government of Prince Edward Island and the PEI Energy Corporation, Doane Grant Thornton examined the ownership model of PEI’s electrical utilities, the Canadian electricity environment, and critical infrastructure alternatives.

“It takes many partners to make sure our electrical grid is meeting the needs of Islanders today and will be resilient well into the future. Many of the recommendations in this review, when combined with the new energy strategy, will be foundational to PEI’s energy stability for the next decade.”

— Environment, Energy and Climate Action Minister Gilles Arsenault

Key findings include:

• When comparing customer rates in PEI to the rest of Atlantic Canada, both the base and energy rates appear to be consistent and within the current range of other Atlantic Provinces.
• PEI’s customer rates fall near the midpoint of the national range.
• Provincial funding is better used in infrastructure and renewable resources, rather than ownership of an electrical utility.
• The province should provide greater support, guidance, and access to additional resources to create added capacity for effective and efficient regulatory reviews.
• A consumer advocate role is needed to enhance rate hearing processes, monitor planning and reliability of the grid, and improve energy literacy of ratepayers/consumers on responsible electricity usage.
• PEI does not have an independent system operator and the cost of implementing one is likely prohibitive, however some of this responsibility could be placed with a consumer advocate.
• PEI needs additional on-Island generation capacity, even if this involves the use of combustion turbines.
• Investments in subsea cables and transmission infrastructure are necessary to secure more firm capacity and strengthen the resiliency of the Island’s electrical system.
• Private, public and alternative capital pools should be considered to support on-Island capacity and PEI-NB interconnection upgrades. 

“Electricity impacts every household on Prince Edward Island, and we have started the groundwork on developing a consumer advocate role to represent ratepayers and monitor the reliability of the grid,” said Minister Arsenault. “We have also begun discussions on investing in the subsea cables and transmission infrastructure, and Maritime Electric has an application before IRAC for more on-Island generation.”

To read the final report, visit PEI Energy Review

Media contact:
Katie Cudmore
Environment, Energy and Climate Action
katiecudmore@gov.pe.ca
 

Background

Definitions

Consumer Advocate

A Consumer Advocate (CA) is a person or organization appointed to represent the interests of anyone who buys power for their own use in a home. They are the voice of the ordinary resident in complex utility matters. CAs have the authority to represent utility consumers in rate cases and other proceedings at utility regulators. Some CAs represent all utility consumers, while others focus on specific sectors such as residential, farm, and small business interests. They can represent consumers in various forums, including courts, administrative hearings, and legislative lobbying. 

Independent System Operator

The Independent System Operator coordinates with various stakeholders to maintain a stable and reliable electricity supply.