Canada’s major electricity providers are warning senators that Ottawa’s clean electricity regulations are unworkable and risk undermining reliable power supplies while driving up costs for consumers, according to a submission now before Parliament.In a brief to the Senate energy committee, Electricity Canada said the federal rules are “not achievable” across much of the country and would impose affordability and reliability pressures, particularly in Ontario, Saskatchewan, and Alberta.“The regulations will create unacceptable reliability and affordability challenges across Canada,” the utilities’ lobby group wrote, arguing the policy delivers only marginal emissions reductions while threatening economic growth.Blacklock's Reporter said Electricity Canada pointed to projections from the Alberta Electric System Operator, which estimates the regulations would add $30 billion in capital and operating costs between 2024 and 2049. Those costs would push wholesale electricity prices about 35% higher, the group said.The clean electricity regulations place emissions caps on power generators that burn fossil fuels such as coal and natural gas. Environment Canada has acknowledged that compliance will come at a steep price, estimating total costs at $690 billion and assuming most of the burden would ultimately be passed on to ratepayers..In its 2024 Regulatory Impact Analysis Statement, the department noted electricity generation accounts for just under 8% of Canada’s total emissions, with the bulk coming from Alberta, Saskatchewan, Nova Scotia, Ontario, and New Brunswick. Despite past reductions, the department said deeper cuts are required to reach net-zero targets.The analysis also warned that demand for electricity will surge as households and businesses shift away from fossil fuels. Electric vehicles, heat pumps, and other electrification measures are expected to sharply increase power consumption, requiring massive expansion of the grid.Utilities argue the federal rules instead discourage the very spending needed to meet that demand. .Electricity Canada told senators the regulations are a barrier to spending in new generation and transmission at a time when the sector must double or even triple grid capacity by 2050.“The greatest challenge facing the sector is to expand electricity infrastructure in every region,” the submission said, urging Ottawa to revisit the rules to protect reliability and affordability.The federal cabinet has defended the regulations as essential to meeting climate goals. However, Prime Minister Mark Carney signalled potential flexibility last November, proposing in a Canada–Alberta memorandum of understanding to suspend enforcement in Alberta pending a new carbon pricing agreement.
