SUMMERSIDE, P.E.I. — Summerside Electric will have to fill a $430,000 hole in its budget next year.
Since 2010, the city-owned electric utility has benefited from a federal program called the Renewable Power Production Incentive. That initiative aimed to encourage the production of renewable energy by providing a one cent per kilowatt hour payment to qualifying green energy producers.
Summerside Electric receives its payment based on the power generated from its 12-megawatt wind farm. But the money from this program was only intended to flow for 10 years. That makes 2019/2020 the last time the utility will get a payment.
In its 2020/2021 budget, the utility will have to find a way to make up the lost revenue, which staff have said averages about $430,000 annually.
“That’s part of the discussions of council. They’ll decide whether we need to find more revenue or whether or not we tighten the belt,” said Greg Gaudet, the city’s director of municipal services.
In the past, Summerside has tied its electrical rates to those of Maritime Electric. But in the 2019/2020 budget, council indicated it will not do that this year. That decision will be re-evaluated next year.
Summerside Mayor Basil Stewart said recently that council has not yet had a chance to discuss the ending of the incentive but, now that the 2019 budget is out of the way, it will be on the agenda for them to start talking about.
“There’s a number of things in the hopper for council to discuss,” said Stewart.
“We’re working hard and we’ll see how things unfold.”
Stewart has been a proponent of keeping Summerside’s power rates lower than those of Maritime Electric as a way to attract development.
Summerside Electric has an annual budget of about $21 million.
