Pros and cons of new rate agreement between P.E.I. government and Maritime Electric
Pro: Electricity rates will be stabilized over the next three years after the P.E.I. Energy Accord expires Feb. 29. Con: Power rates will go up 6.9 per cent by 2019. Pro: P.E.I. Energy Corporation will no longer be on the hook for a $68million CT4 diesel-fired generator.
Con: Ratepayers are locked into 2.3 per cent rate increases for the next three years.
Pro: Maritime Electric will begin work decommissioning the Charlottetown thermal plant, which will reduce P.E.I.’s greenhouse gas emissions in energy supply.
Con: Islanders are responsible for paying for costs associated with this work through the rate increases.
Pro: Maritime Electric has agreed to a slightly lower equity return to its shareholders as part of this new agreement.
Con: The utility still guarantees a return of 9.35 per cent, which is higher than the North American average rate of return on electrical rates of eight per cent.