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March 2, 2010
For immediate release

Government Requests Reconsideration of Electricity Pricing Changes

Environment, Energy & Forestry

The Government of Prince Edward Island has asked the Island Regulatory and Appeals Commission to reconsider a 2008 order that eliminates block pricing for high-use residential customers.

“This afternoon, I have written to IRAC asking them to reconsider their order and to preserve the lower-cost pricing block system for high use customers,” said Minister Richard Brown.

In 2004, the former government passed the Renewable Energy Act. That legislation required Maritime Electric to comply with demand-side measures included in the Act.

“Demand side management remains a priority but we have to consider that this policy may have negative impacts on some people, such as farmers, whose businesses operate under the residential electricity rates,” said Minister Brown.

“Given the state of our economy and of agriculture in particular, I do not believe this is the right time to come forward with measures that could increase the farmers’ cost of doing business.”

The change in block pricing is expected to affect 3,400 Maritime Electric customers, roughly half of whom are believed to be farmers.

Media Contact: Ron Ryder
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