A request for financial reimbursement from Prince Edwards Island’s electricity supplier has been denied by the federal government in the aftermath of tropical storm Fiona.
Maritime Electric, the province’s electricity supplier, spent around $36 million in post-storm cleanup and restoration costs after hurricane Fiona. The money spent covered materials to repair lines, labour and accommodations and food for those who came in to help from outside the province.
Premier Dennis King said that Ottawa had previously agreed to cover Maritime Electric’s spending in relation to storm cleanup last November.
The costs were supposed to be covered under the Disaster Financial Assistance Program (DFAA), however on Tuesday, Ottawa confirmed that they would not be reimbursing those costs. It will likely be consumers in P.E.I. who will now be responsible for dealing with the expenses.
“Unless we find a way to deal with this, it’s going to be tough news for Islanders to hear, and it’s very tough news for me to hear,” said King. “I was quite disappointed that that’s the case.”
Prime Minister Justin Trudeau had initially promised to cover the expenses under the DFAA program in October 2022. The program is designed to have disaster costs paid out at 90% from the federal government and the remaining 10% to be covered by provincial governments.
Almost 90% of P.E.I. was left without power in the aftermath of Fiona and Trudeau responded by saying that under DFAA, money would go towards, “projects to repair and rebuild storm-damaged critical infrastructure.”
“As of today, I don’t think I feel much more confidence in that the [$36]-million bill from Maritime Electric for pole reconstruction and vegetation is going to be dealt with under the disaster program,” said King.
“We felt that would be covered, and now learning that it isn’t over the last few days is to say disappointing.”
King provided CBC News with a letter from Bill Blair, former minister of emergency preparedness which stated that because Maritime Electric is a private company it does not meet standards set in place to be a small business under DFAA guidelines, therefore the Fiona-related spending is not eligible.
“I am conscious that eligibility guidelines are limiting for some sectors given the current definition for small businesses,” wrote Blair.
“Providing support to public utility companies to respond to impacts of Hurricane Fiona would create a precedent for future extreme weather events whereby the responsibility for costs associated for storm preparedness and/or response shifts from public utility companies to the Federal Government.”
According to Blair’s letter, Public Safety Canada will be reviewing other disaster assistance programs because, “it is clear that disasters are growing in frequency and severity in Canada.”
The Trudeau government set aside $1 billion dollars for disaster relief in their 2023 budget as a result of hurricane Fiona, according to an email released by the federal office for Emergency Preparedness but it is unlikely that any of that money will go to P.E.I.
“We recognize that there are ways this program can be improved to better serve Canadians and reduce the risks they experience by building greater resiliency,” stated the email.
“Last year, we announced an advisory panel of experts from the public sector, academia, non-profit, Indigenous communities, and the private sector that provided recommendations around how to improve the sustainability and long-term viability of disaster financing in Canada and improve DFAA program administration.”
King said that if there is no financial aid from the federal government to Maritime Electric then it will likely be the people of P.E.I. who foot the bill through increased electricity rates of 2-3%. It’s a sizable increase considering those who live in P.E.I. are already paying among the highest electricity rates in Canada.
King said he still hopes he will be able to change the federal government’s stance on the issue.
