Analyst Finds that Aging Hydro Poles are Pushing Electricity Rates Up

November 2, 2017

Saskatchewan’s aging power grid is to blame for rising electrical bills, according to an expert who suggests a focus in renewable energy may the key to cutting costs over the long term.Nick Martin, a policy analyst with the Canada West Foundation, has been studying the details of SaskPower’s latest request to increase rates.   

“It seems to be a story of a lot of old infrastructure that needs to be rebuilt,” Martin told CBC Radio’s Saskatoon Morning. 

While it may feel like electrical rates here keep rising, Martin says that if you look at national averages, Saskatchewan power costs are not much higher than other provinces that also rely on coal. That’s surprising, Martin says, given the market here.  

“You have a lot of wires and a lot of infrastructure to move all that electricity around and then you also have few customers relative to the size, which means you don’t have a lot of people to spread the cost of that system around,” Martin said.

While this increase is due mainly to an aging grid, Martin said, previous rate hikes have been necessary as SaskPower financed and pioneered carbon-capture technology. Martin wonders whether that project will prove to be a wise investment, adding Saskatchewan may have to ask an important question soon.

“How can we reduce emissions and decarbonize the grid and achieve our policy goals in that respect?” he said.

read the whole story at: http://www.cbc.ca/news/canada/saskatoon/aging-poles-wires-pushing-electricity-rates-up-analyst-says-1.4257352