Summerside power rates to increase in line with Maritime Electric's

Summerside is once again following Maritime Electric's lead and plans to increase its power rates.

Last week, Maritime Electric announced its rates will go up by 2.3 per cent in each of the next three years if the move is approved by the Island Regulatory and Appeals Commission.

• Maritime Electric, P.E.I. government apply for rate increase of 7% over 3 years
• Keep electricity rates steady, says Summerside business

And although Summerside's windmill farm helps the bottom line, balancing the books isn't a simple task, said Mayor Bill Martin Tuesday night.

"We have to replace 1,400, 1,500 electrical poles at a significant cost," he said. "We have no reserve funds in the electric utility."

He also said the sewer utility is without reserve funds and some of the 135 kilometres of underground pipe, some of it 120 years old, has to be replaced.

"So when people look at rate increases, nobody likes them," he said.

"I live in the city. I don't like to pay, I don't like to pay more. It's $2 or $3 a month, but the reality is some of these decisions need to be made so that our children can have clean water and access to electricity and all the other services they have a right to expect."

Better for business

A resolution to match Maritime Electric's rates has been on the city's books for more than 10 years because around 600 customers still get power from that utility.

Summerside has tried numerous times to buy those customers mainly in the outlying areas who were taken in during amalgamation in the 1990s but Maritime Electric isn't interested in selling them, said Martin.

Council has the power to change the resolution, which would allow the city to decide on its own rate at any time.

Lower power rates would be better for business, said Mark O'Keefe, president of the Greater Summerside Chamber of Commerce.

"This is certainly a way to set the city apart as a potential attraction for new business and also to recognize and award the existing businesses who have decided to locate in Summerside."

But even without lower rates, owning its own utility allows the city to offer other incentives to new businesses, said Martin.