Maritime Electric to tackle $47.6M smart-meter project, with some federal help

P.E.I.'s main power utility has announced a project that could change the way Islanders consume and pay for their electricity.

The $47.6-million project, with a $19-million assist from the federal government, will see the meters of all of Maritime Electric's 88,000 customers replaced with smart meters.

Maritime Electric supplies power to all of the Island outside of the City of Summerside, which has its own utility.

"With the new smart meters that we'll have out there, it's a two-way communication. We'll be able to reach out and talk to that meter," Maritime Electric president and CEO Jason Roberts said at a launch event Friday.

That two-way communication comes with advantages, said Roberts.

First, with feedback going back to the company every 15 minutes, Maritime Electric will be able to tell where power outages are without relying on customer phone calls or line inspections. This will lead to quicker repairs, said Roberts.

On a more regular basis, the meters will allow for what is called time-of-use rates. For example, when the wind is blowing and P.E.I. is producing abundant electricity from turbine installations, rates will go down. Not only that, but Maritime Electric will communicate that to customers.

"We can send signals to customers to say, 'Hey, maybe now you want to consume more energy,' but when the price starts to go up in the market, [power] that we're buying, then you say to the customer, 'Maybe you don't want to use it right now,' and you save some money," said Roberts.

Maritime Electric has been working toward smart metering for some time, the CEO said, calling the $19-million contribution from the federal government central to the project launch.

Egmont MP Bobby Morrissey said modernizing the electricity grid is an important part of the federal government's strategy for reducing greenhouse gas emissions.

"It benefits us all in allowing us to more quickly achieve our carbon reduction commitment," he said.

As part of its role in regulating utilities, the Island Regulatory and Appeals Commission is required to approve the project.

In response to the capital budget application from Maritime Electric, officials at IRAC have raised questions about the cost. In particular, they noted that the cost per meter being installed in Nova Scotia and New Brunswick is considerably lower than what Maritime Electric is anticipating. 

Details around that cost comparison are from a third-party analysis submitted as part of Maritime Electric's application.