Electricity sector in Canada

The electricity sector in Canada has played a significant role in the economic and political life of the country since the late 19th century. The sector is organized along provincial and territorial lines. In a majority of provinces, large government-owned integrated public utilities play a leading role in the production, transmission and distribution of electricity. Ontario and Alberta have created electricity markets in the last decade in order to increase investment and competition in this sector of the economy.

Canada is the world's second-largest producer of hydroelectricity, which accounted for 58% of all electric generation in 2007. Since 1960, large hydroelectric projects, especially in Quebec, British Columbia, Manitoba and Newfoundland and Labrador, have significantly increased the country's generation capacity. In Ontario, Canadian-designed CANDU nuclear reactors have supplied more than half the provincial electricity demand in 2007.

Canadian homes, offices and factories are large users of electricity, or hydro, as it is often called in Canada. In 2007, Canadian per capita power consumption was among the highest in the world, with an average of 16,995 kilowatt-hours per annum.

History

The 1911 Stave Falls powerhouse in British Columbia.

File:Sir adam beck 1 control room.jpg

The control room at Sir Adam Beck-1 generating station in 1933.

The development of hydropower in the early 20th century has profoundly affected the economy and the political life in Canada and has come to symbolize the transition from "old " industrialism of the 19th century to a "new", modern and diversified, Canadian economy.

In the 1890s, three competing firms in Ontario engaged in a competition to develop the Canadian side of Niagara Falls. After several years of delays, construction began on the two sites in 1902 and on a third in 1904. At the same time, a group of municipalities in southern Ontario set up utilities joined their efforts to obtain a stable supply of hydropower. Despite his initial reluctance, Ontario Premier George William Ross organizes the Ontario Power Commission in 1903 to coordinate efforts.

After the private companies refusal to negotiate power deals, the government responds by setting up an enquiry headed by Adam Beck, who recommends the establishment of a publicly-owned distribution system. The province established the Hydro Electric Commission of Ontario in 1906 and voters approve municipalization of power distribution a year later. The Commission began delivering power to cities and towns in October 1910. By World War I, 59,000 customers were connected to the grid in Ontario.

In Winnipeg and Vancouver, private companies were also quick to develop hydropower in major centres. The British Columbia Electric Railway is the first company to build an hydro site in British Columbia. The company remained under private control until after the First World War. In the Manitoba capital, railroad tycoon William Mackenzie built the first plant built on the Winnipeg River to supply the Ogilvie mill. Mackenzie soon faced competition from the city of Winnipeg, after voters backed the construction of a $ 3.25 million publicly-funded dam on the Winnipeg River in 1906.

State control and rural electrification

Construction of the first phase of the Beauharnois generating station, in 1930.

A 1946 postage stamp, featuring hydroelectricity.

Development of the electric sector accelerated after the First World War with the creation of provincial utilities in Nova Scotia, New Brunswick, Manitoba, Saskatchewan and British Columbia, in the 1920s. Publicly-owned electric companies put a strong focus on rural electrification and hydroelectric development.

The Quebec government was a latecomer as far as its involvement in the electricity sector is concerned. After an anarchic period, the industry consolidated into a duopoly of investor-owned utilities. In Quebec's largest city, Montreal Light, Heat & Power (MLH&P) became the dominant player through mergers with competitors.

In the rest of the province, Shawinigan Water & Power Company (SW&P) attracted large industrial customers, aluminium smelters, carbide plants and pulp and paper mills, with an hydroelectric complex built on the Saint-Maurice River. In 1930, SW&P had grown to become the leading power company in Quebec was one of the largest hydroelectric companies in the world.

Calls for nationalization of the industry began during the Great Depression, after a political scandal surrounded the construction of the Beauharnois Hydroelectric Power Station, on the Saint Lawrence River, west of Montreal. Critics attacked the "electricity trust" for their abusive rates and excessive profits. The campaign, masterminded by Philippe Hamel and T.-D. Bouchard, led to the nationalization of MLH&P and the creation of Hydro-Québec by the liberal government of Adélard Godbout in 1944. The other electric companies were taken over by Hydro-Québec in 1963, following an snap election on the issue of electricity spearheaded by René Lévesque, the provincial minister in charge of Natural Resources in the Jean Lesage government.

Hydroelectric developments

The Hugh Keenleyside Dam was built in the 1960s to fulfil Canada's obligations under the Columbia River Treaty. A 185-MW generating station was added in 2002.

Hydro-Québec's Daniel-Johnson Dam (1968) is the largest multiple-arch buttress dam in the world.

Under government leadership, provincial power companies invested heavily in the power sector to stimulate economic development. Premiers Joey Smallwood in Newfoundland, W. A. C. Bennett in British Columbia, Ed Schreyer in Manitoba and Robert Bourassa in Quebec shared this vision of hydropower as a major part of their provinces' industrial development policies.

Hydroelectric mega-projects were undertaken by most provinces during the 1960s and 1970s. BC Hydro developed power stations along the Peace and Columbia Rivers. Manitoba Hydro undertook the Nelson River Hydroelectric Project. In Labrador, the controversial Churchill Falls generating station was built after 20 years of negotiations, and NB Power undertook the construction of the Mactaquac Dam, near Fredericton.

But hydroelectric development was most active in Quebec. Between 1965 and 1984, Hydro-Québec built 7 large power stations on the Manicouagan and Outardes rivers and the first 3 plants of the 16,000-MW James Bay Project on La Grande River. The 5 plants of the second phase were built between 1987 and 1996.

But ample supply and increased opposition to large hydroelectric projects by environmentalists and First Nations forced the postponement or cancellation of several proposed developments at during the 1980s and 1990s, such as the Site C dam on the Peace River in British Columbia or the Great Whale project in Quebec.

Nuclear energy

Chalk River Laboratories, on the Ottawa River, in Chalk River, Ontario.

Main article: Nuclear power in Canada

Further information: [[:Atomic Energy of Canada Limited]], [[:CANDU reactor]], [[:Bruce Power]], and [[:Ontario Power Generation]]

The Pickering Nuclear Generating Station became operational in 1971.

Canada has a long and storied nuclear history. The area of Great Bear Lake has provided uranium for the Manhattan Project and the first Canadian nuclear reactor, the ZEEP, was built in 1945. Two years later, the National Research Council of Canada began operations on the NRX (National Research Experimental) heavy-water reactor at Chalk River Laboratories, near Ottawa. In 1957, it was followed by the National Research Universal Reactor (NRU).

In the meantime, Ontario Hydro Canadian General Electric and Atomic Energy of Canada Limited began working on an experimental nuclear power plant, the Nuclear Power Demonstration, in Rolphton, Ontario, not far from Chalk River. The 22 MW reactor generated Canada's first nuclear energy to the grid on June 4, 1962.

The first full-scale nuclear power plant, the Douglas Point Nuclear Generating Station, entered commercial service on September 26, 1968. Douglas Point generated 220 MW and was built for $91 million. The CANDU reactor was then built at three locations in Ontario in the next 25 years, in Pickering, Bruce County and Clarington.

On the 20 nuclear reactors operational in Canada, only two are located outside Ontario: Gentilly-2, near Trois-Rivières, Quebec, and Point Lepreau, west of Saint John, New Brunswick. Both became operational in 1983.

Organization

The electricity sector in Canada is organized along provincial and territorial lines as part of their jurisdiction over natural resources. The liberalization process of the 1990s changed some parameters such as the unbundling of generation, transmission and distribution functions of incumbent utilities in order to foster a competitive wholesale market or, as in the cases of large exporters like Quebec and British Columbia, to comply with Order 888 of the Federal Energy Regulatory Commission and other U.S. market rules. Most provincial governments still maintain a strong financial stake as operators in the electrical markets.

In a majority of provinces and territories, utilities are vertically-integrated Crown corporations operating as regulated monopolies. This is by and large the case in New Brunswick, Quebec, Manitoba, Saskatchewan, British Columbia and Nunavut. A second model involves a Crown corporation as a large generator or in transmission, alongside a investor-owned distributor, as in Newfoundland and Labrador, Yukon, the Northwest Territories and, to a lesser degree, Prince Edward Island. Nova Scotia has granted a monopoly to Nova Scotia Power, when it divested its investments in the sector in 1992.

Two provinces, Ontario and Alberta, have deregulated their electric industry to different degrees over the last decade. Both provinces operate electricity markets, but there are significant differences between the two systems. the Ontario market is an hybrid, with the Ontario Power Authority "contracting for supply, integrated system planning, and regulated pricing for much of Ontario's generation and load". In Alberta, the generation business is competitive, while transmission and distribution are rate-regulated.

A number of municipalities operate local distribution systems. Some of them, such as EPCOR in Edmonton, are also significant players in the power generation business, under their name or through their control of publicly traded companies.

The federal government, through the National Energy Board, issues permits for inter-provincial and international power lines. The Canadian Nuclear Safety Commission has jurisdiction over nuclear safety. Ottawa and the provinces share jurisdiction over environmental issues such as air pollution and greenhouse gas emissions. Also, major hydroelectric developments trigger federal environmental assessment processes, as the Government of Canada has the power to regulate waterways and fisheries.

Energy-intensive businesses, such as the aluminium smelting and pulp and paper industries have made significant investments over time in power generatation. One such company is Rio Tinto Alcan, who owns and operates 7 hydroelectric generating stations in Quebec and British Columbia, with a combined installed capacity of 3,300 MW.

In recent years, partial or complete deregulation of the wholesale generation business have created a number of Independent Power Producers, who build and operate power plants and sell over the long term, through power purchase agreements — with terms of up to 35 years — and in day-ahead and hour-ahead transactions, where such markets exist.

Generation

Further information: [[:List of power stations in Canada]]

In 2007, Canada generated 617.5 terawatt-hours (TWh), which ranks the country 7th worldwide. Hundreds of generating station are scattered from the Atlantic to the Pacific, for a nameplate capacity of 124,240 megawatts (MW). The 100 largest generating stations in Canada have a combined capacity of 102,341 MW. In comparison, the total installed capacity of Canada was 111,000 MW in 2000.

In 2007, the leading type of power generation by utilities in Canada is hydroelectricity, with a share of 58.7%. Coal (16.6%), nuclear (15.5%), natural gas (6.6%) , fuel oil (1.2%), wind (0.5%) and wood (0.3%) follow. Other sources, such as petroleum coke make up the remaining 0.7%.

However, these figures do not account for the variety of provincial generation mixes. Historic producers of coal, like Alberta (73.6%), Saskatchewan (61%) and Nova Scotia (56.8%), have come to rely mainly on coal-fired generating stations. In hydro-rich provinces, such as Quebec (94%), British Columbia (94.8%), Newfoundland and Labrador (96.8%) Manitoba (97.7%), Yukon (93.2%) and the Northwest Territories (75.1%), hydroelectric power accounts for the bulk of all electric generation.

In Canada's most populated province, Ontario Hydro has developed 11,990 MW of nuclear capacity between 1966 and 1993, building 18 CANDU reactors at 3 sites: Pickering, Darlington and Bruce. New Brunswick and by extension, Prince Edward Island, who buys 96% of its power from the neighbouring province, has a diversified mix, including a nuclear reactor and hydroelectric dams. However, the province is dependent on expensive fuel oil generation.

The electrical generating capacities of the provinces and territories in Canada are broken down below. Numbers are given in megawatts (MW) and gigawatt-hours (GWh). The tables below use 2007 data from Statistics Canada.

Nameplate Capacity

Utility and industrial nameplate capacity of power plants in 2007, by province or territory

Type		Canada	NL	PE	NS	NB	QC	ON	MB	SK	AB	BC	YT	NT	NU
		megawatts
Hydro		73,436	6,796	0	404	923	37,459	8,350	5,029	855	909	12,609	78	25	0
Wind and tidal		1,600.4	0	43.6	52.8	0	375.8	413.5	103.9	171.2	438.9	0	0.8	0	0
Thermal		49,204	557	158	2,006	3,612	3,183	23,403	494	2,853	10,503	2,223	32	126	54
	Steam	27,212	490	67	1,686	2,149	1,126	9,748	119	2,213	7,845	1,769	0	0	0
	Nuclear	13,345	0	0	0	680	675	11,990	0	0	0	0	0	0	0
	Internal combustion	593.5	24.0	0	0	14.3	129.2	66.2	9.5	0	103.9	61.0	32.2	98.9	54.3
	Combustion turbine	8,054	43	90	320	769	1,252	1,599	365	640	2,554	393	0	27	0
Total installed capacity		124,240	7,353	201	2,463	4,535	41,018	32,166	5,627	3,879	11,851	14,832	111	151	54

Total Generation by Type

Generation of electric energy in 2007, by province or territory

Type		Canada	NL	PE	NS	NB	QC	ON	MB	SK	AB	BC	YT	NT	NU
		gigawatt-hours
Hydro		364,128.2	40,048.5	0	924.5	2,803.0	181,099.8	34,336.0	33,513.2	4,393.0	2,141.2	64,288.2	330.6	250.2	0
Wind and tidal		2,947.6	0	39.6	177.1	0	617.4	492.9	325.1	579.5	715.6	0	0.4	0	0
Thermal		250,393.8	1,534.8	5.1	11,472.5	14,835.9	10,245.0	123,405.4	564.2	15,602.0	64,575.6	7,544.9	23.7	436.0	148.9
	Steam	127,952.9	1,255.9	5.4	11,218.6	8,595.1	2,562.4	34,343.2	511.5	14,271.8	50,180.4	5,008.6	0	0	0
	Nuclear	88,190.4	0	0	0	4,118.7	4,321.6	79,750.2	0	0	0	0	0	0	0
	Internal combustion	4,259.8	43.4	0.1	0	6.1	272.0	2,878.7	12.9	1.4	492.5	82.7	23.7	297.5	148.9
	Combustion turbine	29,990.6	235.5	-0.4	253.9	2,115.9	3,089.0	6,433.4	39.7	1,328.8	13,902.7	2,453.6	0	138.5	0
Total energy generated		617,469.6	41,583.3	44.7	12,574.0	17,638.8	191,962.1	158,234.4	34,402.5	20,574.4	67,432.4	71,833.0	354.7	686.3	148.9

Utilities Generation by Fuel

Utilities generation of electric energy by fuel source in 2007, by province or territory

Fuel		Canada	NL	PE	NS	NB	QC	ON	MB	SK	AB	BC	YT	NT	NU
		gigawatt-hours
Water		334,251.3	38,525.2	0	892.1	2,793.7	163,301.5	33,404.2	33,513.2	4,393.0	2,141.2	54,706.3	330.6	250.2	0
Wind and tides		2,946.5	0	39.6	177.1	0	617.4	492.9	325.1	579.5	714.4	0	0.4	0	0
Coal		94,334.5	0	0	7,011.3	2,914.3	0	27,931.6	388.2	12,361.7	43,727.2	0	0	0	0
Petroleum		6,894.2	1,287.3	1.4	847.2	3,836.9	326.4	269.5	22.0	22.2	10.0	58.6	23.7	40.2	148.9
	Light fuel oil	108.7	-10.2	0.6	16.5	12.3	-1.8	60.5	9.0	21.8	0	0	0	0	0
	Heavy fuel oil	6,085.6	1,253.8	0.8	576.9	3,819.8	225.5	209.0	0	0	0	0	0	0	0
	Diesel	699.9	43.8	0	253.9	4.8	102.7	0	12.9	0.5	10.0	58.6	23.7	40.2	148.9
Natural gas		37,357.0	0	0	788.2	1,843.6	4,563.0	12,531.7	68.8	2,921.8	12,195.6	2,401.5	0	42.7	0
Wood		1,889.8	0	3.7	134.1	0	353.5	518.1	0	0	335.3	545.1	0	0	0
Uranium		88,190.4	0	0	0	4,118.7	4,321.6	79,750.2	0	0	0	0	0	0	0
Other		3,779.2	0	0.02	2,487.0	776.7	199.2	216.2	0	0	100.1	0	0	0	0
Total utility generation		569,660.3	39,812.5	44.7	12,337.1	16,284.0	173,682.5	155,131.8	34,317.4	20,278.3	59,223.9	57,711.5	354.7	333.2	148.9
% of Canadian total		100.0	7.0	0.0	2.2	2.9	30.5	27.2	6.0	3.6	10.4	10.1	0.1	0.1	0.1

Transmission

A Mae West pylon from an Hydro-Québec TransÉnergie 735 kV power line, recognizable by the x-shaped spacers separating the three 4-conductor sets. Its introduction, in 1965, facilitated large-scale power developments on the North Shore, in Northern Quebec and in Labrador.

A terminus of the Nelson River HVDC system, now included on the List of IEEE milestones.

The Canadian transmission networks extend over 160,000 km (99,000 mi). The grids generally follow north-south orientations since most population centers in Canada are concentrated in southern regions along the American border while the largest hydroelectric projects are located in scarcely inhabited areas to the north. This particular situation forced Canadian utilities to innovate. In November 1965, Hydro-Québec commissioned the first 735-kilovolt AC power line linking the Manic-Outardes project to the Lévis substation. In 1972, Manitoba Hydro connected generating stations part of the Nelson River Hydroelectric Project to the Winnipeg area through a high voltage direct current power line, the Nelson River Bipole.

The Canadian transmission networks are largely integrated to the continental power grid. The transmission utilities of provinces sharing a border with the United States are taking part in regional reliability organizations such as the North American Electric Reliability Corporation (NERC); the Maritime provinces, Quebec and Ontario are part of the Northeast Power Coordinating Council (NPCC) with utilities in New England and in New York State, Manitoba participates in the Midwest Reliability Organization (MRO), while Alberta and British Columbia are linked to the Western Electricity Coordinating Council (WECC).

Utilities across Canada are making large investments in the maintenance of aging infrastructure and in the construction of new power lines and substations to connect new generation sources to the bulk power system. For instance, Ontario is spending $2.3 billion on a series of transmission projects aimed at connecting new renewable capacity fostered by the Green Energy Act. In Alberta, the AESO is recommending the construction of a $1.83 billion, 240 kV looped system in the southern part of the province to integrate up to 2,700 MW of new wind generation. In Quebec, Hydro-Québec TransÉnergie filed a $1.47 billion investment plan to connect 2,000 MW of new wind generation scheduled to come on-stream between 2011 and 2015.

Rates

Further information: [[:List of Canadian electric utilities]]

Retail prices of electricity in large Canadian cities
Prices (in cents/kWh) as of April 1, 2009 (excluding taxes)

City (Utility)	Residential	Small power	Medium power	Large power
St. John's (Newfoundland Power/NL Hydro)	11.02	11.32	8.45	3.98
Charlottetown (Maritime Electric)	17.29	17.98	15.68	10.72
Halifax (Nova Scotia Power)	12.88	12.65	10.45	7.70
Moncton (NB Power)	11.66	12.09	10.66	6.66
Montreal (Hydro-Québec)	6.87	8.94	7.21	4.53
Ottawa (Hydro Ottawa)	11.27	10.75	8.76	8.15
Toronto (Toronto Hydro)	11.46	11.07	9.33	8.29
Winnipeg (Manitoba Hydro)	6.94	6.83	5.21	3.45
Regina (SaskPower)	10.91	8.76	8.12	5.11
Edmonton (EPCOR)	10.22	9.81	7.50	5.69
Calgary (ENMAX)	12.13	11.81	10.39	9.38
Vancouver (BC Hydro)	7.13	8.02	5.62	4.03

Provinces

Alberta

The Sheerness Generating Station, near Hanna. Commissioned in 1986, the 760-MW coal-fired power plant is a joint venture between ATCO and TransAlta.

Further information: [[:Alberta electricity policy]], [[:TransAlta]], [[:ATCO]], [[:EPCOR]], and [[:List of power stations in Alberta]]

Alberta was the first Canadian province to implement a deregulated electricity market. The market was established in 1996, following the adoption of the Electric Utility Act, the year before. Local distribution utilities, either investor- or municipally-owned, retained the obligation to supply and the 6 largest utilities were assigned a share of the output of existing generators at a fixed price. The province moved to full retail access in 2001 and a spot market, under the Alberta Electric System Operator, was established in 2003. After consumers complained about high prices in 2000, the government implemented a Regulated Rate Option (RRO), as a means to shield consumers from price volatility.

The generation sector in Alberta is dominated by TransAlta, ATCO Power and Capital Power Corporation, a spin-off of Edmonton's municipally-owned company EPCOR. Although 5,700 megawatts of new generation was added and 1,470 of old plants were retired between 1998 and 2009, coal still accounted for 73.8% of utility-generated power in 2007, followed by natural gas, with 20.6%.

Installed capacity reached 12,834 megawatts in 2009, with coal (5,692 MW) and natural gas (5,189 MW) representing the bulk of the province's generation fleet. Recent additions to the grid have increased wind capacity to 657 MW, while hydroelectric capacity stands at 900 MW. Despite tougher new emission measures announced by the federal government in June 2010, industry officials believe the province will continue using coal to generate electricity into 2050.

British Columbia

BC Hydro's Revelstoke Dam (1984).

Further information: [[:BC Hydro]] and [[:List of power stations in British Columbia]]

BC Hydro was created in 1961 when the government of British Columbia, under Premier W. A. C. Bennett, passed the BC Hydro Act. This act led to the amalgamation of BC Electric and the BC Power Commission, and the creation of the British Columbia Hydro Power and Authority (BCHPA). BC Hydro is the main electric distributor, serving 1.8 million customers in most areas, with the exception of the Kootenay region, where FortisBC, a subsidiary of Fortis Inc. directly provides electric service to 111,000 customers and supplies municipally-owned utilities in the same area.

Between 1960 and 1984, BC Hydro completed six large hydro-electric generating projects, including the 2,730 MW W. A. C. Bennett Dam and Gordon M. Shrum Generating Station and Peace Canyon on the Peace River, Mica and Revelstoke on the Columbia River, Kootenay Canal on the Kootenay River and Seven Mile Dam, on the Pend d'Oreille River.

A third dam and 900 MW generating station on the Peace River, the Site C dam near Fort St. John, has been discussed for decades and was rejected in the early 1990s. In April 2010, the British Columbia government announced moving the project to a regulatory review phase, with plans to build the facility by 2020.

In recent years, the liberal government of Gordon Campell has promoted the construction of a slew of small-scale hydro projects by private businesses. As of April 2010, 63 long-term power purchase agreements have been signed with Independent Power Producers for 2,629 MW of capacity and 10.3 terawatt-hours of energy.

Manitoba

The Pine Falls Generating Station on the Winnipeg River

Further information: [[:Manitoba Hydro]] and [[:List of power stations in Manitoba]]

Manitoba Hydro is the crown corporation in charge of electricity generation, transmission and distribution in Manitoba. Its installed capacity stands, as of March 31, 2010 at 5.511 MW, including 5,033 MW of hydroelectricity generated at 14 locations on the Nelson, Saskatchewan, Laurie and the Winnipeg Rivers.

The company is currently building the 200-MW Wuskatim hydroelectric project in partnership with the Nisichawayasihk Cree Nation. Commissioning of the facility is expected in 2011. By advancing the completion date of the project by 3 years, Manitoba Hydro hopes to cash in on lucrative exports in the Midwestern United States.

The utility is also planning the construction of a third HVDC power line linking northern Manitoba and the Winnipeg area. The Bipole III project involves the construction of a 1,364 km power line and two new converter stations. Manitoba Hydro has also undertaken studies of two more hydroelectric projects, the Keeyasc and Conawapa generation stations.

New Brunswick

TransAlta's Kent Hills Wind Farm (2008), near Moncton. Renewable energy advocates believe New Brunswick can bolster its investments in wind power by using a community-based approach.

Further information: [[:NB Power]], [[:New Brunswick System Operator]], and [[:List of power stations in New Brunswick]]

New Brunswick has a diversified generation mix, featuring fossil fuel, hydroelectric and nuclear capacity. Established in 1920, the provincial utility, NB Power owned 3,297 MW of installed capacity as of March 31, 2008. Since then, the company retired 2 power plants and plans to permanently shut down the 300-MW oil-fired Dalhousie generating station.

In the last decade, the government-owned utility has faced problems with the failure of a plan to switch two of its large thermal facilities to Orimulsion, a heavy bitumen fuel produced by PDVSA, the Venezuelan government oil company, and a 2-year delay in the mid-life refit of the Point Lepreau Nuclear Generating Station.

In October 2009, the provincial government signed a memorandum of understanding with Quebec to sell most of NB Power's assets to Hydro-Québec. The controversial deal was cancelled in March 2010.

Since then, a couple of options are discussed to modernize New Brunswick electricity infrastructure, including a plan to build a 500-MW intertie with Nova Scotia and an preliminary agreement with France's Areva to evaluate the feasibility of a second nuclear generating station at the Point Lepreau site.

Newfoundland and Labrador

File:Churchillfallslabrador2.jpg

Churchill Falls, one of the largest hydroelectric generating facilities in North America.

Further information: [[:Newfoundland and Labrador Hydro]], [[:Newfoundland Power]], [[:Churchill Falls]], and [[:List of power stations in Newfoundland and Labrador]]

Newfoundland and Labrador Hydro, a subsidiary of government-owned Nalcor Energy, owns and operates most generation in the province, the transmission grid and sells directly to large industrial customers. The company also serves remote communities not connected to the main power grids, on the island of Newfoundland and in Labrador.

Newfoundland Power, a subsidiary of St. John's-based Fortis Inc., is a regulated distributor serving 239,000 customers, making up 85% of all electricity consumers in the province. The company buys 90% of its energy from Newfoundland and Labrador Hydro.

Newfoundland and Labrador mainly relies on hydropower for its generation needs, supplemented by the 500-MW Holyrood Thermal Generating Station, near St. John's. The province's main power station, the 5,428-megawatt Churchill Falls Hydroelectric Station, was commissioned between 1971 and 1974. The generating station is owned by the Churchill Falls Labrador Corporation Limited, a joint venture between Newfoundland and Labrador Hydro (65.8%) and Hydro-Québec (34.2%). Most of the output of the plant is sold at a fixed price to the Quebec utility under a 65-year power purchase agreement due to expire in 2041.

For over 35 years, there was talk of building two more hydroelectric generating facilities on the lower Churchill River, at Gull Island (2,250 megawatts) and Muskrat Falls (824 megawatts). Nalcor Energy filed an Environmental Impact Statement for the Lower Churchill Project on March 6, 2009. The EIS is currently evaluated by a joint federal-provincial panel. Nalcor and Danny Williams' conservative government are still considering scenarios to build the project and the required transmission upgrades needed to bring the Lower Churchill power to markets.

Nova Scotia

NSPI's 415-MW Tufts Cove Generating Station, in Dartmouth, near Halifax.

Further information: [[:Nova Scotia Power]] and [[:List of power stations in Nova Scotia]]

Nova Scotia Power Inc. (NSPI), a subsidiary of Halifax-based Emera, is the public utility in charge of the generation, transmission and distribution of electricity in Nova Scotia. Formerly a government-owned company, it was privatized in 1992 by the conservative government of premier Donald Cameron, in what was called at the time the biggest initial public offering (IPO) in Canadian history. From the $816 million proceeds, "$616 million was used to recapitalize Nova Scotia Power by paying down debt owed by the utility".

NSPI has a generating capacity of 2,293 megawatts: 5 thermal plants fired with a mix of coal, petroleum coke, fuel oil and natural gas, provide the bulk of the 13 terawatt-hours yearly supply. The company also operates the Annapolis Royal Tidal Generating Station, the only one of its kind in North America and 33 hydroelectric generating stations, most of them small ones, with the exception of the 230 MW Wreck Cove Generating Station, inaugurated in 1978.

Over the years, Nova Scotia Power has been blamed by Nova Scotia residents for its poor maintenance record and its failure to quickly reconnect customers after storms. In September 2003, 700,000 Nova Scotia residents were without power for up to two weeks after the passage of Hurricane Juan. The Category 2 storm damaged 27 main transmission lines, several transmission towers, 117 distribution feeders, and 31 major electrical substations. More recently, the issue of the company's investment in the provincial grid has been raised at a leaders' debate during the 2009 election campaign. However, the company received praise from premier Darrell Dexter for its efforts in restoring power after the passage of Hurricane Earl in September 2010.

Ontario

The Bruce Nuclear Generating Station near Kincardine, is Canada's largest power station with an installed capacity of 7,276 MW (gross).

The Erie Shores Wind Farm, near Port Burwell.

Further information: [[:Ontario electricity policy]], [[:Ontario Power Generation]], [[:Hydro One]], and [[:List of power stations in Ontario]]

Ontario embraced nuclear power in the 1970s and 1980s, building 3 major nuclear facilities and 18 CANDU reactors, which currently provides half of the province's consumption. The completion of the Darlington Nuclear Generating Station in 1993, "at a cost several times the original estimates", caused huge rate increases and a reassessment of Ontario's electricity policy. Three major policy documents, the Advisory Committee on Competition in Ontario’s Electricity System (1996), chaired by former federal minister Donald Macdonald, a government White Paper on electricity policy (1997) and the Market Design Committee report (1999) paved the way for a major overhaul of the industry.

In April 1999, Ontario Hydro was split into five successor companies: Ontario Power Generation (OPG), in charge of generation; Hydro One, a transmission and distribution utility; the Independent Market Operator, responsible for the operation of a deregulated wholesale electric market in the province; the Electrical Safety Authority and the Ontario Electricity Financial Corporation, in charge of the $38.1 billion stranded debt, derivatives and other liabilities of the former integrated public utility.

In 2001, OPG leased Canada's largest power plant, the Bruce Nuclear Generating Station to Bruce Power, a private consortium originally led by British Energy, reducing its share of the provincial generation market to 70%. The government opened the competitive market on May 1, 2002, but heat waves and droughts in the summer of 2002 caused wholesale prices to soar to peaks of $4.71/kilowatt-hour in July and $10.28/kilowatt-hour in September. Faced with bitter complaints from consumers, the Ernie Eves government announced a price free for small customers while leaving the wholesale market intact, on November 11, 2002.

Although Eves was praised for the pause in generation market deregulation the cancellation of Hydro One's initial public offering and his handling of the 2003 North American blackout, the Progressive Conservatives were defeated by Dalton McGuinty's Liberals in the provincial election of 2003. In the meantime, the phasing out of coal-fired generation — including North America's largest coal plant, the 3,640-MW Nanticoke Generating Station — became a political issue. In 2002, the Conservatives promised to shut down Ontario's 5 coal plants by 2015, while McGuinty committed to a 2007 retirement date, which was pushed back to 2014.

In April 2009, the Ontario legislature passed the Green Energy Act establishing feed-in tariffs for power from renewable sources and streamlining the approval process for new generation sites. Two months after passing the bill, Ontario announced the suspension of a competitive process for the purchase of 2 new nuclear reactors at Darlington, citing the price tag, later evaluated at $26 billion. Critics of the government strategy stress the Act will increase the price of electricity and undermine the system's reliability, while pitting some local residents against wind developers. As of September 2010, Ontario's wind capacity stood at 1,248 megawatts, more than a third of Canada's 3,499 megawatt.

Prince Edward Island

Further information: [[:List of power stations in Prince Edward Island]]

Prince Edward Island is the only Canadian province without an hydroelectric power station. The Island is largely dependent on imported power from NB Power generation facilities in New Brunswick. Two submarine power lines provide more than 80 % of the provincial load. Since the early 2000, the Island has promoted the province as a good place to set up wind farms.

Maritime Electric, a subsidiary of St. John's-based Fortis Inc., operates the integrated public utility serving most of the province, with the exception of the city of Summerside, who has been providing electric service to its residents since 1920. Both utilities own and operate diesel plants, used as peakers or during emergencies.

Quebec

The underground Robert-Bourassa generating station is Canada's largest hydroelectric plant. The 16-unit plant has an installed capacity of 5,616-MW.

Further information: [[:Hydro-Québec]] and [[:List of power stations in Quebec]]

The Quebec electricity sector is dominated by Canada's largest utility, government-owned Hydro-Québec. With an installed capacity of 36,810 megawatts, including 34,118 megawatts of hydropower, the utility generated and bought 203.2 terawatt-hours in 2009, almost one-third of all electricity generated in Canada. Benefiting from low generation costs, favorable interest rates and high export prices, Hydro-Québec paid $10 billion in dividends to the Quebec government between 2005 and 2009.

Since 2003, the company commissioned 8 new hydroelectric generating stations for a total of 2,343 megawatts and is currently building 6 new power plants: Eastmain-1-A (768 MW) and Sarcelle (150 MW) scheduled for 2012, and 4 generating stations on the Romaine River (1,550 MW) to be commissioned between 2014 and 2020. Hydro-Québec's latest strategic plan, released in 2009, outline a further 3,500 MW of new generation capacity, including 3,000 MW of additional hydro projects, to be built by 2035. The company's total investments in generation, transmission, distribution and energy efficiency for the 2009-2013 timeframe are expected to reach $25.1 billion.

Quebec also intends to increase its wind generation capacity. The government's 2006 energy strategy calls for the construction of 3,500 megawatts by 2015. Two calls for tenders initiated in 2003 and 2005 resulted in the signing of 22 20-year Power Purchase Agreements between Hydro-Québec and independent power producers, for a total capacity of 2,990 megawatts. A third one, geared at small-scale community- or First Nations-led projects, is expected to be completed by the end of 2010.

Saskatchewan

File:SaskPowerboundarydamgs.jpg

Boundary Dam Coal Fired Generating Station in Estevan

Further information: [[:SaskPower]] and [[:List of power stations in Saskatchewan]]

In 2007, Saskatchewan produced 12,362 gigawatt-hours of electricity through its coal fired power plants, on a total generation of 20,278 gigawatt-hours. SaskPower, the government-owned public utility is the main power generator in the province. The company has a generating capacity of 3,371 megawatts (MW) and 17 generating facilities. These include three coal-fired baseload facilities (1682 MW), five natural gas-fired plants (674 MW), seven hydroelectric developments (854 MW), and two wind farms (161 MW). Two independent power producers, the Cory and Meridian cogeneration stations have a combined capacity of 438 MW, while 5 waste heat facilities have a maximum output of 31 MW.

The current state of the electric system will require heavy investments in the next decade. Discussion have been undertaken with Manitoba about building a 138-kV interconnection between the two neighbouring provinces. A new privately-owned natural gas-fired combined-cycle generation turbine in North Battleford is under construction. The 260-MW facility is expected to be completed in 2013.

Yukon

Further information: [[:List of power stations in Yukon]]

Yukon Energy Corporation is the crown corporation that generates most of the power consumed in Yukon. Hydro is the main generation source, with a 93.2% share in 2007. It is supplemented by a wind turbine in Whitehorse and diesel generators in remote communities. Yukon has two separate grids. Neither are connected to the continental power grid. Yukon Electrical Company is the main distributor in Yukon.

In its Energy Strategy, released in 2009, the Yukon government has stated it wants to increase the supply of renewable energy, hydro and wind, by 20%. The government is also considering linking Yukon's two main power grids by completing the Carmacks to Stewart transmission line. No timetable has been set.

Northwest Territories

Further information: [[:Northwest Territories Power Corporation]] and [[:List of power stations in the Northwest Territories]]

Although the Northwest Territories are not connected to the North American power grid, there are two electric networks operating in the territory, the first one in theYellowknife area and the other in Fort Smith. In most communities, loads are served by local diesel generators. The government-owned Northwest Territories Power Corporation is in charge of power generation, while Northland Utilities, a subsidiary of ATCO, operate the distribution networks.

Nunavut

Further information: [[:Qulliq Energy Corporation]] and [[:List of power stations in Nunavut]]

The government-owned Qulliq Energy Corporation is the only power generator serving the remote communities of Nunavut. Qulliq, operating under the name Nunavut Power, has a total of 27 diesel-powered generators, serving 25 communities. The territory is not connected to the North American power grid.

Qulliq Energy plans to build a small hydroelectric project at Jaynes Inlet, not far from the territorial capital, Iqaluit, which is currently served by two diesel generators. The 5-MW generating station, which could cost upwards of $200 million, has been delayed by lower oil prices and the financial crisis. Construction could start in 2015 or 2016.

Climate change

Further information: [[:Climate change in Canada]]

In 2008, Alberta's electricity sector is the most carbon-intensive of all Canadian provinces and territories, with total emissions of 55.9 million tonnes of CO
₂ equivalent in 2008, accounting for 47% of all Canadian emissions in the electricity and heat generation sector. It is followed by Ontario (27.4 Mt CO
₂ eq.), Saskatchewan (15.4 Mt CO
₂ eq.) and Nova Scotia (9.4 Mt CO
₂ eq.). Of all provinces, Quebec has the lowest carbon intensity in the electricity sector with 2.45 g of CO
₂ eq. per kilowatt-hour of electricity generated.

Ontario registered a large drop in emissions in 2008, due to lower demand, natural gas prices and government instructions to Ontario Power Generation regarding a gradual decommissioning of coal-fired generation by 2014. According to the Independent Electricity System Operator of Ontario, 4,700 MW of new natural gas-fired generation and 1,100 MW of wind farms have been commissioned in the province between 2003 and 2009. The new natural gas capacity will allow Ontario to retire 2 units each at the Nanticoke and Lambton generating stations by the end of 2010, on track for a complete phase-out by the end of 2014.

In Alberta, TransAlta and Capital Power Corporation have undertaken the construction of a carbon capture and storage project at the 450-MW Keephills-3 supercritical sub-bituminous coal-fired power station. The project, which received a $770 million grant from the federal and provincial governments, involves storing the captured CO
₂ through geological sequestration and enhanced oil recovery. It is scheduled to be operational by 2015. In March 2010, SaskPower has announced its own carbon sequestration project at the Boundary Dam Power Station, the province's largest coal plant. In British Columbia, the provincial government ordered BC Hydro to remove the 50-year old gas-fired Burrard Generating Station from its roster of baseload plants.

Greehouse gas emissions from Electricity and Heat Generation, 1990-2008, by province or territory

Province/Territory	1990	2004	2005	2006	2007	2008
	kilotonnes CO 2 equivalent
Newfoundland and Labrador	1,630	1,450	1,230	795	1,230	1,040
Prince Edward Island	103	18	12	8	-	-
Nova Scotia	6,840	9,990	9,360	8,680	9,140	9,420
New Brunswick	6,130	8,690	8,630	7,060	7,310	6,830
Quebec	1,520	1,660	727	918	2,180	470
Ontario	26,600	32,300	34,300	28,600	32,000	27,400
Manitoba	569	393	511	382	497	488
Saskatchewan	10,400	16,800	15,500	14,900	15,700	15,400
Alberta	40,200	53,400	52,600	53,900	55,400	55,900
British Columbia	1,180	1,870	1,480	1,540	1,460	1,520
Yukon	94	8	8	8	11	-
Northwest Territories	222	264	282	222	256	-
Nunavut	91	45	35	54	35	48
Canada	95,500	127,000	125,000	117,000	125,000	119,000

International trade

Some provincial hydro companies benefited a great deal from the liberalization of the United States electricity sector brought by the Energy Policy Act of 1992 and the Federal Energy Regulatory Commission's Order 888. New Brunswick, Manitoba, Ontario and Quebec have been net exporters while BC Hydro has created an energy marketing subsidiary to actively trade on the neighboring electricity market.

In 2009, Canada exported more than 53 terawatt-hours of electricity — approximately 9% of its output — to its southern neighbor, while it imported 18 terawatt-hours. While occupying a relatively small part of the overall U.S. market, Canadian supplies constitute a significant share of the power consumed in key markets, such as New England, New York State, Ohio, Michigan, Minnesota and the Pacific Northwest.

In August 2010, Hydro-Québec signed a 26-year renewal of its 225-megawatt power contract with the largest Vermont public utilities, Central Vermont Public Service and Green Mountain Power. To facilitate the deal, a new renewable energy law, H.781, was signed into law by governor Jim Douglas on June 4, 2010, after passage in both houses of the Vermont Legislature. The Act makes Vermont the first U.S. state to declare large-scale hydroelectric power as "a renewable energy resource".

Transfers of Electricity between Canada and the United States, 2006-2009

Province	2009		2008		2007		2006
	from the U.S.	to the U.S.	from the U.S.	to the U.S.	from the U.S.	to the U.S.	from the U.S.	to the U.S.
	gigawatt-hours
Alberta	662	216	761	228	651	247	209	67
British Columbia	11,275	6,943	11.514	8,081	7,202	10,323	12,209	5174
Manitoba	224	9,262	88	9,880	528	11,063	819	12,312
New Brunswick	1,408	1,904	1,081	1,367	646	1,598	511	2,058
Nova Scotia	—	—	273	13	25	13	25	229
Ontario	3,328	16,180	7,998	18,571	6,908	10,365	6,353	9,059
Quebec	1,057	18,637	1,352	17,455	3,359	16,101	2,535	11,713
Saskatchewan	334	110	432	137	203	392	1,147	595
Canada	18,288	53,252	23,499	55,732	19,522	50,102	23,808	41,207

Further reading

• Bolduc, André; Hogue, Clarence; Larouche, Daniel (1989), Québec : l'héritage d'un siècle d'électricité (in French) (3rd ed.), Montreal: Libre Expression/Forces, ISBN 2-89111-388-8 {{citation}}: Invalid |nopp=341 p. (help); Unknown parameter |nopp= ignored (|no-pp= suggested) (help)
• Bothwell, Robert (1988), Nucleus, the history of Atomic Energy of Canada, Toronto: University of Toronto Press, ISBN 0-8020-2670-2 {{citation}}: Invalid |nopp=524 p. (help); Unknown parameter |nopp= ignored (|no-pp= suggested) (help)
• Dales, John H. (1957), Hydroelectricity and Industrial Development Quebec 1898-1940, Cambridge, MA: Harvard University Press {{citation}}: Invalid |nopp=265 p. (help); Unknown parameter |nopp= ignored (|no-pp= suggested) (help)
• Froschauer, Karl (1999), White Gold: Hydroelectric Power in Canada, Vancouver: UBC Press, ISBN 0-7748-0708-3 {{citation}}: Invalid |nopp=322 p. (help); Unknown parameter |nopp= ignored (|no-pp= suggested) (help)
• International Energy Agency (2009), Energy Policies of IEA Countries - Canada 2009 Review, Paris: OECD/IEA, ISBN 978-92-64-06043-2 {{citation}}: Invalid |nopp=264 p. (help); Unknown parameter |nopp= ignored (|no-pp= suggested) (help)
• Negru, John (1990), The electric century : an illustrated history of electricity in Canada : the Canadian Electrical Association, 1891-1991, Montreal: Canadian Electrical Association, ISBN 2-9802153-0-9 {{citation}}: Invalid |nopp=118 p. (help); Unknown parameter |nopp= ignored (|no-pp= suggested) (help)
• Norrie, Kenneth; Owram, Douglas; Emery, J.C. Herbert (2008), A History of the Canadian Economy (4th ed.), Toronto: Nelson, ISBN 978-0-17-625250-2 {{citation}}: Invalid |nopp=466 p. (help); Unknown parameter |nopp= ignored (|no-pp= suggested) (help)
• Regehr, Theodore David (1990), The Beauharnois scandal : a story of Canadian entrepreneurship and politics, Toronto: University of Toronto Press, ISBN 080202629X {{citation}}: Invalid |nopp=234 p. (help); Unknown parameter |nopp= ignored (|no-pp= suggested) (help)
• Statistics Canada (2009), Electric Power Generation, Transmission and Distribution (catalog number: 57-202-X) (PDF), Ottawa: Statistics Canada, ISSN 1703-2636 {{citation}}: Invalid |nopp=44 p. (help); Unknown parameter |month= ignored (help); Unknown parameter |nopp= ignored (|no-pp= suggested) (help)
• Statistics Canada (2010), Report on Energy Supply and Demand in Canada (catalog number: 57-003-X) (PDF), Ottawa: Statistics Canada, ISSN 1708-1599 {{citation}}: Invalid |nopp=130 p. (help); Unknown parameter |month= ignored (help); Unknown parameter |nopp= ignored (|no-pp= suggested) (help)

Notes & References

Notes

References