Summerside’s electricity rates will not increase with the rest of P.E.I. on Jan. 1

SUMMERSIDE, P.E.I. — As of Jan. 1, Maritime Electric customers will be paying more for electricity, but Summerside Electric customers will not – at least for now.

Taxpayer-owned Summerside Electric has traditionally matched its rates to that of the larger company, but it is not obliged to do so.

The city usually outlines its power rates in its annual budget, but that document is not going to be presented until March 2021, at the earliest.

Council has the authority to seek a rate change at any time, but that is unlikely to happen anytime soon.

“At minimum, there will be a period of time, whether it’s a couple of weeks or a couple of months, where there are different rates between Maritime Electric and Summerside,” said Gordon MacFarlane, deputy chief administration officer for the city.

The Island Regulatory and Appeals Commission (IRAC) had approved Maritime Electric's three per cent increase in late December. The company hoped to have it approved in March 2020 - however, when the COVID-19 pandemic hit, the company requested the increase be deferred.

Maritime Electric has not been allowed a rate increase since March 2018.

Whether Summerside should continue to follow Maritime Electric’s rate changes has been a perennial issue for city council.

It has been argued that measured rate increases are needed to offset costs and continue investment in Summerside Electric infrastructure.

City officials often point to the utility as one of the primary reasons Summerside has been able to afford big-ticket items like the waterfront beach redevelopment and the Credit Union Place multipurpose facility.

However, others have argued that by keeping its power rates low relative to the rest of the Island, Summerside would have a clear advantage to attract development, which would increase the all-important tax base.

Summerside Mayor Basil Stewart has been clear on where he stands on the issue. He campaigned in 2018 on a commitment to not support a rate increase.

However, as mayor, Stewart only votes on motions of council if there would otherwise be a tie.

He reiterated his position on Dec. 30, 2020.

“I’m not going to go against what I said,” said Stewart.

“I will not support and will not vote for an electrical rate increase. We have to make our city more attractive for commercial development.”

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