Saskatchewan’s plan to extend life of coal power to cost $26B over 25 years: NDP

The Sask. NDP claims coal plant refurbishment costs jumped while the government says estimate includes 25 years of operating costs. Wayne Mantyka reports.

The Saskatchewan NDP says new figures from SaskPower reveal it will cost about $26 billion over 25 years to extend the life of the province’s coal plants until it transitions to nuclear energy.

That includes $11.4 billion in capital costs, $13 billion in fuel costs, and $1.4 billion to rebuild transmission infrastructure already considered obsolete.

NDP Leader Carla Beck has called the amount staggering, saying the Saskatchewan Party government could do away with the coal extension for cheaper alternatives.

“This is not only about how much we are paying for this coal plant, which is – to be clear – a staggering amount, this is also about all of the things that this government cannot pay for,” she told reporters on Thursday.

“If we are going to spend $26 billion on a coal refurbishment plan, what is that going to leave besides the debt that we’re going to leave our kids and our grandkids?”

Beck says for the same amount of money, Saskatchewan could build new natural gas plants or finance a small nuclear reactor.

Jeremy Harrison, the minister responsible for SaskPower, says it’s cheaper to extend the life of coal rather than build new gas plants.

The minister claimed the NDP’s leaked documents were from an incomplete early draft of a presentation to SaskPower’s board made in spring 2025. Harrison also maintained the coal plant refurbishments would cost $2.6 billion.

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“We’re absolutely committed to running our coal-fired power generation into the future,” he told media.

“...we’ve been very clear with our employees about what our plan is, we’ve laid it out in the energy security strategy. Coal is going to be our bridge to get to nuclear-based power generation.”

Harrison claimed the NDP was misrepresenting the capital costs by adding things like maintenance, operations, fuel, salaries, and mining as part of the $26 billion, arguing these costs would be incurred regardless of the power generation method.

Harrison announced last year the province was to keep coal until 2050, arguing the move ensures power remains reliable and secure.

SaskPower Vice-president Gregg Milbrandt oversees the company’s coal-extension program.

He reiterated Harrison’s statement that SaskPower’s capital investment for the coal refurbishment program was $2.6 billion.

“Within that cost, there was also a value for sustainment, so that is also ongoing capital,” he told reporters.

“As you can imagine, equipment wears out, and you need to continue to reinvest, much like you do ... in your vehicle today. You have something that goes in a vehicle, you need to put more money back into that.”

Milbrandt said SaskPower’s operating costs comprise of things like salaries, contracts and material costs like items and components.

With files from The Canadian Press