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Backgrounder: PEI Electricity Transmission System Upgrade

November 18, 2005

The Governments of Canada and Prince Edward Island and Maritime Electric Company Ltd., have announced plans for a collaborative project involving an electricity transmission system upgrade that will help PEI maximize its renewable energy sources.

The project will involve upgrading the electricity transmission system in the province and between the Islandand New Brunswick, allowing the province to take advantage of the exceptional wind power potential on Prince Edward Island.

PEIcurrently imports more than 90 per cent of its electricity from New Brunswick.  The project will augment the existing 200 megawatts (MW) of transmission capacity with a new 200 MW cable. The work will begin as soon as possible with the completion targeted for mid-2008.

This new cable will allow flexibility in the system as PEIwill need the capacity to export wind power whenPEI’s electrical demand is low and the wind is strong.  Conversely when the wind is not sufficient to meet PEI’s demand, then PEI will need to import power to meet their domestic demand.  A new cable will also provide security of electrical supply to PEIin the event that one cable should fail.

PEIis committing to work with private sector developers to establish at least 200 MW of wind power capacity by the year 2010.  This will cut greenhouse gas emissions by at least 500,000 tonnes and sulphur dioxide (SO2) levels will be reduced by 5,700 tonnes each year. PEI’s peak demand in 2004 was 210 megawatts of electricity.

The overall project cost is estimated at approximately $60 million.  Details of the cost sharing arrangements will be worked out over the coming weeks among the partners. 

Project partners include: The Government of Canada, the Government of Prince Edward Island (through the PEI Energy Corporation), and Maritime Electric.

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