Maritime Electric applies for increased on-Island generation

December 18, 2024 – Charlottetown, PE – Today Maritime Electric filed an application with the Island Regulatory and Appeals Commission (IRAC) to address the vital need for on-Island dispatchable generating capacity due to rapid customer load growth associated with increased population and electrification. Last year, the Company experienced a new system peak load of 359 megawatts (MW), the largest in its history.

“Utilities throughout the country are upgrading infrastructure to meet increased demands for electricity arising from electrification. The same now needs to happen on Prince Edward Island given this reality on and off the Island,” said Jason Roberts, President & CEO. “We take our obligation to provide reliable and least cost energy for our customers seriously and consider this a vital application for addressing the projected capacity needs and ensuring security of service for customers.”

The application provides information on why new generating capacity is needed and asks for approval to begin detailed engineering design work, which will aid the Company in determining costs and timelines for three key components: 50 MW combustion turbine; 10 MW 4-hour battery energy storage system; and 90 MW reciprocating internal combustion engines. Details on these components can be found in the filing. This on-Island capacity is necessary to mitigate the risk of energy supply from the mainland being interrupted due to either limited availability or system restrictions. The additional generating capacity will have a negligible impact on the Province’s greenhouse gas emissions.

Upon approval, the Project will provide 150 MW of additional on-Island dispatchable generating capacity which will address the forecasted capacity deficit so that customers are able to access the electricity they need. The preliminary estimated cost is $427 million before inflation and foreign exchange rate changes. There are many factors that can affect a project of this size, including project approvals, startup and availability of equipment and materials.

“Customer affordability is paramount as Maritime Electric moves forward with its planning. While the costs of this new infrastructure will be significant, they will be phased in over time,” said Roberts.

The regulatory review process is open and transparent. IRAC will release a Notice of Application and a timeframe for public comments. The full application can be viewed on Maritime Electric’s website.