A group representing Canada-wide electricity providers told Environment Canada that it has failed to hold up its end of the bargain by jeopardizing the affordability and reliability of the country’s electrical grid.
The president and CEO of Electricity Canada, Francis Bradley, wrote a letter to Environment Minister Steven Guilbeault, Prime Minister Justin Trudeau, and various other ministers about “profound concerns” regarding the proposed Clean Electricity Regulations.
“Our goal with this letter is to inform you about the failure of this process, highlight its potential impacts on the sector and on the Canadian economy, and propose solutions to move forward. We do not make these statements lightly,” reads the letter obtained by True North.
Electricity Canada has consulted with Environment Canada about Canada’s proposed electricity regulations under a non-disclosure agreement since Feb. 2024.
The non-disclosure agreement was intended to allow Environment Canada to share modelling and assumptions to enable industry feedback on carbon reductions, reliability, and cost.
Electricity Canada said that Environment Canada agreed to an aggressive schedule of meetings and workshops when signing the non-disclosure agreement.
“However, the department has repeatedly delayed sharing the information for which the NDA process was intended. Despite repeated attempts over the last four months, as of this writing, ECCC has not yet provided their modelling and the assumptions contained material factual errors, making it impossible for industry to provide meaningful feedback,” reads the letter.
Electricity Canada relayed its concerns to Environment Canada on May 28. The agency has informed Electricity Canada that the formal consultation period will end within a few weeks.
“There is now insufficient time to analyze and provide feedback that could meaningfully impact the regulatory design,” reads the letter. “The department has not provided meaningful modelling information, therefore this engagement process has failed to achieve its purpose.”
Electricity Canada warned any suggestion that the sector endorses the Clean Electricity Regulations was a “mischaracterization.”
“Unfortunately, there is more than simply a failed process. We remain deeply concerned that what has been shared with us during this engagement still reveals what is, in our expert opinion, an unequivocally flawed regulatory design that risks significant impairments to the reliability of the electricity system and severe affordability impacts in many parts of the country,” reads the letter.
The national forum and voice of the electricity business in Canada warned that this impact would be worse in provinces most reliant on fossil fuels.
The Alberta government previously slammed the federal government after the Canada Electricity Advisory released its final report, concluding that the Liberals’ 2035 deadline for a net-zero grid was “unrealistic and unattainable.”
“This letter validates what Alberta, other provinces, and industry has been saying all along — Ottawa’s so-called Clean Electricity Regulations are unrealistic, unconstitutional, and dangerous for our provinces and our country,” Schulz told True North.
Saskatchewan’s electricity regulator previously said that achieving the 2035 net-zero goals was impossible.
“The CERs design articulated by ECCC is both overly optimistic and inflexible, to the extent that our members believe it will put the reliability of electricity service in jeopardy in many parts of the country,” said Electricity Canada in its letter.
Since 2005, Electricity Canada said that the electricity sector has reduced its greenhouse gas emissions by over 60%, far exceeding reductions from other sectors and amounting to tens of millions of tonnes of CO2 annually.
Electricity Canada urged Environment Canada to engage in a more meaningful process. The forum consisting of 42 members said that this process should include providing access to the modelling and assumptions that form the basis of the regulation. It should allow sufficient time for the sector to analyze this information and offer actionable feedback that addresses reliability and affordability concerns before the consultation closes.
To maintain affordability and reliability, Electricity Canada said that the regulation must include sufficient flexibility by using commercially available technologies. The regulation must include a periodic regulatory review, and a systems operator must validate it to ensure it’s achievable in each jurisdiction.
Electricity Canada said it is disappointed with Environment Canada so far but remains ready to collaborate meaningfully.
“We are optimistic that a solution can be reached with proper time and engagement. But, should ECCC be unwilling or unable to work with the electricity sector to find a solution that addresses the affordability and reliability concerns we have repeatedly raised, Electricity Canada will not be able to support the regulations,” reads the letter.
Schulz told True North that Guilbeault needs to scrap the ideology and stick to common sense.
“There are no tweaks or changes that can fix this dangerous regulation… it must be scrapped entirely,” she said. “No one wants to freeze in the dark. What Canadians want is safe, affordable, reliable energy and electricity, 24/7, 365 days a year.”
