SaskPower probes cost of Ottawa’s natural gas regulations to plans for new plant
Posted July 5, 2019 1:40 pm.
Last Updated July 5, 2019 1:45 pm.
REGINA – The minister responsible for SaskPower says new federal regulations mean the utility has to pump the brakes on plans for a new natural gas plant.
Ottawa last week released its finalized standards for a carbon tax on heavy industrial emitters.
Dustin Duncan says the regulations mean any combined-cycle natural gas plant that begins operating after 2021 will need to hit zero emissions by 2030, or pay up.
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He says it’s too early to know if plans for a natural gas plant in Moose Jaw are at risk, but the utility needs to look at how cost-effective the plant will be to operate under the change.
SaskPower CEO Mike Marsh says the regulations add additional costs over a period of time that will put pressure on rates.
Federal Environment Minister Catherine McKenna says the standards came out of months of consultation and analysis, with a goal of ensuring there’s an incentive for facilities to innovate.
