Summerside electricity rates going up to pay for underwater cables

Summerside Electric customers will see rates rise 2.3 per cent in each of the next two years.

The increase will allow the city to begin to pay off its share of the cost of two new underwater cables connecting the P.E.I. grid to the mainland.

Summerside Electric is responsible for about 10 per cent of the province's portion of the project, about $10 million. That will be paid off over the next 40 years, says Mayor Bill Martin, and ratepayers will see more increases the coming decades to cover it.

"I recognize that the province has a right to do this," Martin said.

"It wasn't well advertised that this was going to happen, but it is happening."

Maritime Electric customers are facing similar increases, which were announced in March 2016, said a spokesperson for the P.E.I.'s Department of Transportation, Infrastructure and Energy. CBC has reached out to Maritime Electric to ask if that directly relates to the cable.

Martin said energy security is extremely important, and Islanders should not be complacent about it.

"All we need to do is take a look at neighbours to the south of us to a country like Puerto Rico that may not have electricity for months," he said.

"It's a scary scenario and no less important in safe water."

A seat at the table

Martin said there are a couple of advantages coming from the new agreement.

Summerside will no longer face interrupted power. Occasionally there were rolling rolling blackouts in the city when NB Power and Maritime Electric needed the power elsewhere.

Summerside will also be at the table in discussions between the PEI Energy Corporation and Maritime Electric over the province's energy future.

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