Boosting Canada’s power

The Hon. Sergio Marchi, president and CEO of the Canadian Electricity Association, spoke with chamber of commerce members, guests and media in Cranbrook, B.C., on October 19, 2016. — G.R. Martin Photography photo

At 65-plus years of age, existing infrastructure for Canada’s electricity cannot be expected to meet increasing demands. Canadian Electricity Association (CEA) president and CEO The Honourable Sergio Marchi advised guests at a Cranbrook Chamber of Commerce luncheon in October that renewal of Canada’s aging electricity infrastructure is sorely needed and will cost about $350 billion over the next 20 years.

The renewal process began several years ago, with CEA members investing some $13 to $14 billion annually. Clearly, said Marchi, the scale of investment will have implications for consumers, and no one likes paying more. However, Marchi sees electricity as a national strategic asset that is a critical element of both our economic prosperity as a nation and the quality of our individual lives in Canada, now and in the future.

Statistics Canada tells us the average cost of power for one day for a Canadian residence is $3.59. Is that a lot? Marchi asks that we put the cost of having a reliable, robust electricity infrastructure into a context that takes into account the value of electricity to us personally and to Canada as a whole.

Plans for upgrades and growth of the electricity infrastructure have to be presented to and approved by provincial regulators. Marchi said that currently when provincial regulators are presented with a proposal for, say, green technologies or improved service to northern communities, the answer is often a resounding "no, it will cost too much." On the other hand, provincial and federal governments are encouraging green technologies and improved services to Canada’s North. This bureaucratic misalignment makes progress difficult.

“We have to marry frugality with the value that we place on electricity,” Marchi said. “We need to have an infrastructure that will continue to provide us with quality power like the system we inherited.”

The CEA is a strong advocate for reducing Canada’s northern and Indigenous communities' dependence on diesel, moving them onto the electrical grid, and federal officials always want to see the business case for this proposal. Marchi has a two-part response.

The Hon. Sergio Marchi believes that electricity is a national asset that should be protected and nurtured. — David Hull photo

“First,” he said, “there is no good business case. It’s called nation building, and sometimes nation building has a price tag.” He reminds the officials that the people in the North are Canadians and as deserving of carbon-free energy as city dwellers.

Second, he agrees that the costs of moving from diesel to electricity are high. However, he said, “Don’t be deceived by looking at only one side—look at the associated costs of diesel.” Cleaning up spills is expensive. Medical treatment for ills resulting from diesel fumes in homes is expensive. Those costs may not come out of the diesel budget, but they are the result of the diesel-fueled system.

There’s another incentive to make progress in this area: economic development and investment in Canada’s North cannot occur without expanded, improved infrastructure.

“I talked to the Canadian Mining Association, and their biggest worry is lack of infrastructure in the North,” said Marchi. “Companies in the industry are comparing us to Africa.”

When government officials ask Marchi why the CEA wants to move forward with these measures, he tells them, “Because our prime minister says it’s 2016. It’s time.”