RNNR Committee Report

Supplementary Opinion of the New Democratic Party

Canada faces many evolving challenges when it comes to transitioning our electricity grid to a low-carbon future. New Democrats recognize these challenges and have faithfully worked in this study to ensure the long-term sustainability of our electricity sector and the well-being of those who work in it. We would like to thank our colleagues on the Natural Resources committee from the Liberal and Conservative parties for working together on this study in a constructive and collegial manner. As a result of that work, we believe this report is a strong reflection of our many shared concerns for this important sector to the Canadian Economy.

However, we feel that some areas require a stronger response or more attention. Throughout the study, it was clear from testimony that Federal government investment of some sort would be required to help update, expand, and green the Canadian electricity grid. Federal governments of different political stripes have supported large electricity projects proposed by various provinces or proponents in the past while respecting provincial jurisdictions. Given the current government’s stated focus on Infrastructure spending, we feel that the electricity grid and intertie projects would be a natural fit for such spending, given their high up-front cost and their potential positive impacts towards meeting Canada’s GHG reduction commitments under the Paris Accord.

David Comrie of Manitoba Hydro pointed to the example of building greater interties between Manitoba and Saskatchewan. He stated that:

“the single biggest challenge between Manitoba and Saskatchewan is funding. Manitoba's electric sector is already 100% renewable. We already have a very large and adequate interconnected capability into the United States. For us to invest half a billion dollars or a billion dollars in more transmission lines to connect to Saskatchewan doesn't bring the province any more value than we already have. To the extent that the federal government is able to fund the Manitoba portion of that transmission line, it would make it a much more viable project for Saskatchewan.”

This is an example of a project that might help Canada meet its GHG-reduction targets by allowing a province transition to a low-carbon electricity option. However, it wouldn’t provide value to the second province because it is already producing 100% renewable electricity. Asking the second jurisdiction or utility to pay part of the project expense does not make sense, and could very well be the roadblock that keeps a project with greater national value from happening.

We see potential situations like these as a place where the Federal government can step in and play a role. Therefore, we recommend that the Government of Canada, in collaboration with provincial, territorial and Indigenous governments, consider giving financial support to inter-provincial Intertie projects if, after careful consideration, they are found to be in the national interest without hindering any provincial interests. We believe this is in line with past Federal government practices. We also believe that in cases where a potentially positive project is not going forward due to reasonable concerns like the one raised by Mr. Comrie, the Federal government can play a key role in helping to bridge that gap. One of the key roles of the Federal government is to bring the provinces together to unify the best interests of all Canadians in cases like these.