REGINA — Minister for Crown Investments Corporation Jeremy Harrison was facing questions Thursday over the submission of the Saskatchewan Industrial Energy Consumer Association opposing SaskPower’s 3.9 per cent rate hikes.
In that submission, SIECA had been critical about no advance warning that a SaskPower rate hike was coming. They claimed SaskPower had given no indication “formal or otherwise” that an increase was coming, and that even as late as Dec. 19 they had not been made aware.
Speaking to reporters, Harrison was asked why SIECA wasn’t given a heads up.
“We hadn't made the decision,” said Harrison. “When the cabinet made the decision, we referred the matter to the rate review panel. We hadn't made that decision as of yet, so we weren't going to be telling SIECA that we had made a decision that we had voted.”
Harrison also defended the decision to not give the organization an indication in advance of the application by SaskPower to the Rate Review Panel for the 3.9 per cent increases.
“Where you make the application is to the Rate Review Panel. I can only imagine what the opposition would be saying if we had given confidential heads up to large industrial partners with SaskPower prior to a submission to the Rate Review Panel.”
When asked if the government should be giving advance notice to large employers and mining operations, Harrison replied “no.”
“I'll tell you this, I don't agree with that. I think that everybody in the province should be finding out at the same time, in a formal context, when we refer the matter to the rate review panel, and that's what we did.”
Harrison was also asked about SIECA’s submission that rate increases should only be implemented after approval from the review panel.
“We made a decision to put a rate change in place when we made the submission,” Harrison said. “That's the prerogative of the government. That was the decision we made. But at the same time, there was an opportunity for stakeholders to express the impact this would have prior to it coming in.”
Harrison adds that “there are real rate pressures at SaskPower.”
“We've been candid about that. We've talked about the investments that we're making into transmission infrastructure. We've talked about the investments that are going to be made into the transition to nuclear power. We're making investments as well into life extending our existing thermal assets. There are rate pressures because of the investments that we're making. We believe that it's reasonable with regard to that path forward for SaskPower, that these are investments that need to be made and we're going to make them.”
Harrison was also asked about SIECA’s concerns regarding the costs associated with critical refurbishments, such as on extending the life of coal-fired plants.
The SIECA submission noted that 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.”
“We've been very transparent about that,” Harrison said.
“We've talked about that as far back as the annual report releases last summer. There is a massive savings. I'll tell you this. I've been very clear that we have made the decision with regard to coal-like extension on the basis of energy security. That is the actual reason that we made the decision. But there are also massive cost savings that go along with that.”
Harrison told reporters SaskPower estimated a $21 billion capital savings by extending the life of thermal coal generating assets. He added that the Opposition approach “would put us 100 per cent at the mercy of importing gas from a limited number of sources, being the United States and Alberta, through three pipelines, would make us entirely beholden on that gas supply at SaskPower to keep the lights on. That is entirely irresponsible.”
When further pressed about SIECA’s concerns, Harrison further doubled down and said to reporters “if what you're telling me is what they wrote, no, I would absolutely vigorously disagree with some of the assertions.”
“What we are doing is the right decision from an energy security perspective. It's the right decision from a financial perspective as well, and this is the path we're going on. We've been very transparent about what we're doing. I put out the Energy Security Strategy in October. I've been openly talking about the decisions we were looking at making with regard to the life extension of our coal facilities prior to that. We've been very clear about what our plans are for transmission investment. We've been very clear about what our plans are for nuclear investment going forward as well. These are the right decisions for the province, and what's being proposed by the Opposition is incredibly irresponsible that would jeopardize the ability of us to literally keep the lights on in this province in addition to chasing away tens of billions of dollars of investment and not just jeopardizing, but destroying the energy reliability of our power group.”
Young says government approach will cost more money
Speaking to reporters afterwards, NDP SaskPower critic Aleana Young accused the government of having a plan to retrofit coal plants that cost $700 million more than originally announced, at $2.6 billion.
As for Harrison’s claims that the government will not have to spend $21 billion in capital costs, Young said she is “not sure where those numbers that the Minister is quoting are coming from. I don't believe it's from SaskPower.”
“What we see from this minister is, again, a steady stream of lies. It's clear the premier had no idea that the minister went out and said the cost was going to be $1.9 billion and, whoops, at least today it's $2.6 billion. There's no answers. There's no real transparency or accountability.”
Young said she, members of the public and the largest industries in the province “have been clear: release the business case. Let us know what this looks like, what the impact is going to be on rates and what the impact is going to be on the Crown when it comes to building out electricity in Saskatchewan.”
As for Harrison’s comments saying he “fundamentally disagrees” with some of the statements made by SIECA, Young said:
“If the minister is asking the people of Saskatchewan and the premier to take his word over the largest industries in the province, I would take the word of the largest industries in the province, who indicate very clearly in their letter they have not had engagement with the minister of CIC, and are requesting it.”
