Sask. seeks private power

Cassandra Kyle, Saskatchewan News Network; Canwest News ServicePublished:
Tuesday, June 17, 2008

SASKATOON -- Saskatchewan is looking to the private sector to help increase the province's electricity supply, a program applauded by the Sask. Party government.
But critics of the plan say this is the first step towards private, for-profit power generation in Saskatchewan.

Crown Corporations Minister Ken Cheveldayoff announced on Monday a request for proposals from the private sector for electrical generation projects to help support the needs of the growing economy. The move is also intended to enhance the relationship between the province and the private sector by offering companies opportunities in the power market

"We believe not every dollar risked in power generation in Saskatchewan should be a government dollar; there is a role for the private sector as well," Cheveldayoff said at a morning news conference in Saskatoon.

"We're sending the message out to companies across Canada, across the world, that if they have ideas about Saskatchewan or want to undertake studies or any type of due diligence in Saskatchewan we would be welcome and open to that."

No options -- including nuclear, wind and hydroelectric projects -- will be excluded, Cheveldayoff said. As the provincial government works to reduce greenhouse gas emissions in Saskatchewan, preference will be given toward environmentally friendly proposals, he said.

The requests include baseload generation projects sized between 200 and 400 megawatts with an in-service date of December 2012 and peaking generation projects sized up to 100 megawatts in time for the 2011-12 winter months.

The ministry also announced it will add 141 megawatts of natural gas-fired generation to the provincial grid by the end of 2010 and replace 63 megawatts of retired generation at the Queen Elizabeth Power Station in Saskatoon with 105 megawatts of natural gas-fired generation by December 2009.

The projects will cost $290 million and $185 million respectively.
Kim Trew, NDP Crown Corporations critic, says the announcement marks the beginning of higher prices for consumers and opens the door to the privatization of the generating capacity at SaskPower.

"(Monday was) a very sad day for power consumers right throughout Saskatchewan. In one policy move the government has guaranteed there will be price increases for power consumers well into the future," Trew said.

"Prices are going to go up and it's not just Year 1, it's Year 2, three, five and 10 and ongoing and it's structurally built in with (Monday's) announcement."

SaskPower has had a long tradition of building, owning and operating its own systems, he said, an operation Cheveldayoff specifically said the Sask. Party government wants to move away from. While the NDP government did buy power from private suppliers, it was not at a baseload capacity, Trew explained. The critic said the minister should be ashamed of himself for suggesting at the news conference that the Sask. Party's new plan is a continuation of the NDP's system.