Sask. coal plant life-extension plan faces growing price tag

Plans to extend the life of Estevan and Coronach coal plants by 25 years may now come with a much higher price tag. Wayne Mantyka reports.

The cost of extending the life of Saskatchewan’s coal-fired power plants is climbing significantly, according to the provincial NDP.

Saskatchewan’s six coal-fired generating units at the Shand, Boundary Dam and Poplar River power stations were originally mandated to shut down by 2029. SaskPower has instead opted to refurbish the facilities and extend their lifespan to 2050.

When the plan was announced last year, the price tag was estimated at $900 million. However, the NDP says that figure has since increased by $700 million, citing a SaskPower submission to the province’s rate review panel.

“We learn that their plan for electricity is going to cost another $700 million dollars more. I would say that the budget deficit doubled, just like people’s power bills will under this government’s reckless plan,” said NDP MLA Alena Young.

The provincial government says the upgrades are part of a broader, long-term transition toward nuclear energy, including the potential development of small modular reactors (SMRs) or a large-scale nuclear facility.

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However, officials note that SMRs could take at least a decade to come online, meaning coal-fired power will be needed as a bridge in the interim.

“The investments that are going to be made into the transition to nuclear power. We’re making investments as well into life extending our existing thermal assets,” said Minister of Crown Investments Jeremy Harrison.

“There are rate pressures because of the investments we’re making. We believe that it’s reasonable with regard to that path forward for SaskPower, that these are investments that need to be made and we’re going to make them.”

SaskPower is currently seeking a 3.9 per cent rate increase this year and another 3.9 per cent next year. The rate review panel has not yet approved the request.

The Crown corporation says the increases would help fund major capital projects, including the refurbishment of its coal-fired generating units.