Saskatchewan government has officially rejected the federal Clean Electricity Regulations (CER), calling them unconstitutional, prohibitively costly, and detrimental to the province's economy and energy reliability.
Crown Investments Corporation Minister Jeremy Harrison announced the province's position following the federal government's attempts to finalize the CER.
When first published in the Canada Gazette, Part I, on August 19, 2023, the regulations were met with widespread concern from multiple provinces and industry stakeholders.
In response, the federal government issued an Update Paper in February 2024, but the changes failed to address Saskatchewan's objections.
"Our government unequivocally rejects federal intrusion into our exclusive provincial jurisdiction over the electricity system," said Harrison.
"Saskatchewan will prioritize maintaining an affordable and reliable electricity grid to support our regional needs and growth. The federal Clean Electricity Regulations are unconstitutional, unaffordable, unachievable, and Saskatchewan cannot, and will not, comply with them."
Under the Saskatchewan First Act, the province had an independent Economic Impact Assessment Tribunal to examine the effects of CER.
"The Tribunal released its report showing the CER would lower Saskatchewan's economic growth by at least $7.1 billion, cost the province 4,200 jobs, and have a $8.1 billion negative effect on Saskatchewan's export sector," said Harrison.
"The Clean Electricity Regulations will cause substantial harm to the provincial economy, slow growth throughout all major sectors, reduce jobs, hike electricity rates, and jeopardize grid reliability."
A federally commissioned Canada Electricity Advisory Council report published in May 2024 acknowledged the challenges faced by resource dependent provinces like Saskatchewan and Alberta, recommending more flexible regulations recognizing significant regional differences, particularly in provinces without extensive hydroelectric or nuclear infrastructure.
Saskatchewan has previously invested billions in a diverse energy portfolio that includes coal, natural gas, solar, wind, biomass, and improved interconnections with neighbouring jurisdictions.
As part of its future strategy, SaskPower is exploring new power generation options, including potential nuclear development, to ensure that reliable and affordable electricity remains available to Saskatchewan homes and businesses.
"The Constitution of Canada is clear: provinces manage electricity systems," said Harrison.
"Our government will not risk the affordability and reliability of Saskatchewan's power grid because of the extreme policies of the Liberal government."
With Saskatchewan's refusal to adopt the CER, tensions between the province and the federal government appear likely to continue.