Comparing Prices
Maritime Electric continues to keep electricity prices as low as possible. In March 2011, the PEI Energy Accord came into effect. The PEI Energy Accord is an agreement developed by the Government of Prince Edward Island and Maritime Electric that will reduce the cost of electricity and provide for stability in rates for five years. Through a five year power purchase agreement and a reduced cost of borrowing, the typical Island household will, beginning March 1, 2011, see a saving in annual electricity costs of 14% in the first year of the Accord, no change in costs in the second year and annual projected increases of 2.5% in the remaining 3 years.
Comparing Prices and Generation Fuel Sources Across Canada
PEI typically has electricity prices that are amongst the highest in Canada. Other Canadian provinces, including our close neighbours in New Brunswick and Nova Scotia, have their own natural resources (such as hydro, coal and natural gas) or nuclear generation sources. The portion of PEI's electricity supply Maritime Electric purchases from the commodity wholesale marketplace is substantial and therefore PEI's electricity costs are significantly impacted by commodity market volatility.
The lowest electricity prices in Canada are in those provinces that have an abundance of hydroelectric generation (see chart below). Hydro (the use of water) generation produces over 60% of all electricity used in Canada and is generally the most cost effective way to generate electricity. PEI is the only province that has no hydro generation. Other low-cost jurisdictions have large amounts of coal or nuclear energy. PEI's only practical economic electricity source is wind, which is intermittent by nature. As such, we have to purchase a significant amount of electricity from sources off the Island to meet our needs.
Country-Wide Generation Fuel Source Comparison |
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| Canadian Provinces' Primary Fuel
Source Electrical Generation Scan map to see primary fuel source * This map is for illustrative purposes only. |
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| Primary Fuel Source: National Energy Board, The Canadian Industry, Figure 1 - Canada Generation by Fuel –2008 |
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While purchasing off-Island electricity is expensive, generating electricity from Maritime Electric’s own generators on-Island is even more expensive. Maritime Electric’s own generators are small, and use heavy fuel oil or diesel as fuel. These facilities produce electricity at a higher price than the price Maritime Electric can purchase electricity for in the wholesale marketplace. The Island-based generators are necessary, however, to ensure electricity supply in the event supply is disrupted from the mainland.
Comparing Prices in Our Region
The following graphs reflect the monthly cost (including taxes) of electricity for an urban residential customer on PEI as compared to the other Maritime Provinces and select Northeastern US utilities as of March 1, 2011.
