GRID WATCH

Canada's Utility News Roundup

Canada's Energy Grand Bargain Is Under Pressure

Rate wars, a coal gamble, and the $20-billion question hanging over Alberta and Ottawa's landmark energy deal.

Robert Ingram Estimated Reading Time: 4 minutes

National Headlines

$20-Billion Pathways Project Complicates Alberta-Ottawa Energy Grand Bargain

The proposed $20-billion Pathways Alliance carbon capture and storage network is complicating the energy "grand bargain" between Prime Minister Mark Carney and Alberta Premier Danielle Smith, which was due for finalisation by April 1. Oilsands companies behind Pathways want governments to absorb most project costs, raising taxpayer exposure questions. The MOU, signed in November 2025, would scrap the oilsands emissions cap and Clean Electricity Regulations in exchange for expanded oil export capacity, according to the National Post.

OPG Seeks to Nearly Double Electricity Charges to Fund Nuclear and Hydro Expansion

Ontario Power Generation has applied to the Ontario Energy Board to nearly double the charges it levies for the power it generates, a move aimed at funding nuclear expansion and overhauling existing hydroelectric facilities. The application reflects surging demand from AI data centres and vehicle electrification. Critics argue Ottawa and the provinces are overlooking conservation, which could reduce demand without billions in new infrastructure spending. The rate push would likely translate to higher household electricity bills across Ontario.

Regional Roundup

NB Power CEO Backs Debt Restructuring and Separating from Point Lepreau Nuclear Station

NB Power CEO Lori Clark says distancing the utility from the Point Lepreau nuclear station and transferring its debt to the province are "really solid" ideas worth analysis, following a 50-recommendation review panel report released this week. Clark told CBC the utility's debt load is creating challenges for NB Power and provincial borrowing capacity. New Brunswick's energy minister said the province will outline its response to the review panel's recommendations by the end of May.

P.E.I.'s Oldest Wind Farm Set for Full Overhaul as Turbines Near End of Life

The P.E.I. Energy Corporation is preparing a major overhaul of the North Cape wind farm, the province's oldest, as turbines experience increasing downtime and declining output, according to CBC News. Operations engineer Blair Arsenault says breakdowns have grown significantly in recent years. Replacement turbines will boost energy production and better withstand harsh Island weather. The project follows P.E.I.'s March expression of interest for a battery energy storage system, signalling growing investment in grid resilience on the Island.

Policy & Pricing

SaskPower Coal Plant Refurbishment Cost Nearly Triples to $2.6 Billion

Documents filed by SaskPower with the Saskatchewan Rate Review Panel show external consultants now estimate refurbishing the province's coal-burning facilities at $2.6 billion — nearly three times a $900-million estimate provided nine months ago. SaskPower is seeking two rate increases of nearly four per cent each, beginning in 2026, partly to fund the coal upgrades. The province argues extending coal to 2050 saves over $21 billion compared to following federal Clean Electricity Regulations, but critics warn the strategy risks a multi-front legal fight with Ottawa.

NB Power's 500 MW Gas Plant Deal with Nova Scotia Under Regulatory Scrutiny at EUB

New Brunswick Energy and Utilities Board hearings this week are examining a 10-year capacity agreement under which Nova Scotia's electricity system operator would purchase 100 MW of power from two additional turbines at a proposed 500 MW natural gas and diesel plant in Centre Village. NB Power executives testified the arrangement benefits ratepayers by reducing per-unit costs on the expanded plant. The deal with Nova Scotia is expected to be signed within 10 days, according to NB Power's director of strategic partnerships.

Innovation & Transition

Construction Begins on Quebec's $3-Billion Des Neiges Wind Farm

Construction has officially begun on the Des Neiges wind farm northeast of Quebec City, a $3-billion project developed jointly by Hydro-Quebec, Boralex, and Energir. The first two phases will include 114 turbines generating 800 MW — enough to power 140,000 homes. A third phase, if completed, would bring total output to 1,200 MW. The project is central to Hydro-Quebec's goal of adding 10,000 MW of new wind power to its portfolio by 2035, according to The Canadian Press.

B.C. Scales Back 2035 Zero-Emission Vehicle Sales Mandate to Align with Federal Goals

British Columbia has relaxed its 2035 zero-emission vehicle sales mandate, aligning provincial targets with federal policy as EV adoption slows nationwide. The Ministry of Energy and Climate Solutions said the changes will reduce regulatory burden on automakers and reflect current market realities, while retaining the 75 per cent target for 2035. Targets for 2028 to 2030 will be informed by forthcoming federal plans, the ministry said. The Pembina Institute said it was "encouraged" by B.C. keeping the 75 per cent goal intact.

Worth Noting

Manitoba Hydro cuts remote work to one day per week; CUPE Local 998 vows challenge. Read More

Iran war supply chain disruptions posing challenges for renewable energy deployment. Read More

Canada's EV sales plunge as Electric Vehicle Availability Standard is scrapped. Read More