GRID WATCH

Canada's Utility News Roundup

Drought, Demand, and New Directions

Rate hikes, grid expansions, and a landmark federal energy outlook define a consequential week for Canadian utilities.

Robert Ingram Estimated Reading Time: 4 minutes

Policy & Pricing

Manitoba Hydro Rates to Rise for Three Consecutive Years, Regulator Rules

The Manitoba Public Utilities Board issued a final order on March 19 confirming a 4.0 per cent general rate increase for 2026, followed by targeted increases of 3.5 per cent in 2027 and 3.0 per cent in 2028. The board cited severe drought conditions — with 2025 water flows approaching the second-lowest levels in 112 years — as the primary driver. Capital cost escalation was also flagged, including a transmission reliability project whose estimated cost has risen from $1.8 billion to $6.8 billion, according to CBC News.

Quebec's Régie Trims Hydro-Québec Rate Request, Saves Businesses $450M

Quebec's energy regulator handed down its rate decision on March 17, granting Hydro-Québec annual business rate increases of 3.6 per cent — less than the 4.8 per cent the Crown corporation had requested — over 2026, 2027, and 2028. The ruling is expected to result in roughly $450 million less revenue for Hydro-Québec over three years. Residential customers will see the full 3.0 per cent increase in 2026 and 2027, with a slightly lower 2.6 per cent permitted in 2028, according to The Canadian Press.

National Headlines

CER's Energy Future 2026: Electricity Demand Could Double, Wind to Lead New Capacity

The Canada Energy Regulator released its Energy Future 2026 report on March 17, projecting power generation could grow 30 per cent at the low end to more than double current output by 2050. Wind energy is expected to account for the bulk of new capacity additions across all four scenarios modelled — Current Measures, Higher, Lower, and Canada Net-Zero. The report also highlighted data centre demand as a key uncertainty and confirmed that Central Canada will likely remain reliant on U.S.-sourced natural gas under current pipeline configurations, according to the CER.

Canada Must Act Urgently on Growing Electricity Demand, New Report Warns

A report from the Macdonald-Laurier Institute, released the week of March 17, warned that federal and provincial governments must move quickly to ensure affordable electricity as demand surges. The report noted that Alberta's renewable capacity is already close to saturation due to insufficient transmission, and that natural gas remains the most practical near-term option for the province. National grid expansion and clearer investment policy were cited as urgent priorities, according to Global News.

Regional Roundup

SaskPower Wins Approval to Connect Province's Long-Isolated North and South Grids

The Government of Saskatchewan approved SaskPower's North-South Transmission Systems Interconnection project on March 19. The project will install approximately 250 kilometres of new transmission lines connecting the E.B. Campbell and Island Falls hydroelectric stations, linking grids that have until now only been connected through Manitoba. Federal funding of up to $18.075 million has been conditionally approved through Natural Resources Canada's First and Last Mile Fund. Lines are expected to enter service around 2032, supporting northern mining development and energy reliability, according to the Government of Saskatchewan and SaskPower.

Powerful Windstorm Knocks Out Power to 300,000-Plus Hydro-Québec Customers

A severe windstorm swept across Quebec earlier this week, with gusts reaching up to 120 kilometres per hour in some areas and cutting power to more than 300,000 Hydro-Québec customers at the peak of the event. The Montérégie region was hardest hit, followed by Montreal, the Laurentians, and Lanaudière. Hydro-Québec deployed more than 1,100 workers to address over 1,200 individual breaks in the distribution system, according to CBC News.

Hydro-Québec Hits Capacity Ceiling, Plans 9,000 MW Expansion by 2035

Hydro-Québec is confronting supply shortfalls after a days-long disruption to power exports to New England in January 2026 revealed the utility has exceeded its generation capacity. To address the gap, Hydro-Québec's 2035 Action Plan targets up to 9,000 MW of new capacity through wind, solar, battery storage, and expanded hydroelectric generation — much of it on Cree territory, where Indigenous consultation obligations under the 1975 James Bay Agreement remain a central challenge, according to Nation News.

Innovation & Transition

Alberta's Restructured Energy Market Enters Implementation Phase, Full Rollout by 2028

Alberta's transition to its Restructured Energy Market (REM) is accelerating following a Ministerial Order issued on March 10 adopting the final REM ISO Rules. The Alberta Electric System Operator will host a market readiness kick-off webinar on March 24, with a soft launch and early system rollout planned for Q3 2027 and full transition targeted for early 2028. The new framework is designed to improve price signals, enhance reliability, and retire the current Energy Trading System, according to McCarthy Tétrault.

Pembina: Expanding Alberta-BC Intertie Could Unlock Multi-Billion Dollar Grid Benefits

The Pembina Institute published analysis on March 18 supporting Alberta's push to strengthen electricity interconnections with British Columbia. The institute estimated a total investment of $4.6 to $5.8 billion — including $150 million to restore the existing intertie and up to $2.7 billion for battery frequency response — could effectively allow Alberta to draw on BC's hydroelectric capacity as a large-scale seasonal battery. Stronger interties would also allow BC to absorb excess Alberta wind and solar generation during peak production, according to Pembina.

Worth Noting

Quebec's Régie cut Hydro-Québec's energy efficiency budget by 13 per cent in its rate ruling. Read More

Alberta REM rules enacted by Ministerial Order 035/2026 on March 10, 2026. Read More

New York City power lifeline: 339-mile transmission line to carry Quebec hydropower south. Read More

CER wind power forecast: 50 to 150 GW of new wind capacity projected by 2050 above 2023 levels. Read More