Sask. to extend life of all coal-fired power plants despite federal clean electricity regulations

The Saskatchewan government has informed Crown employees it will extend the life of all its coal-fired power plants, setting up a potential legal battle with the federal government over environmental regulations.

Crown Investments Corporation Minister Jeremy Harrison announced the decision in a letter distributed to all SaskPower employees on Wednesday. It was not announced publicly.

Harrison said the province will continue the use of the coal plants as it moves toward adopting nuclear power generation for its base load requirements, and remains committed to the goal of a net-zero grid by 2050.

READ| Letter to SaskPower employees

The letter also tees up a potential dispute between the province and Ottawa, with Harrison writing that the province does not believe the federal government has any standing to shut down provincial coal plants.

"We have also been clear that we do not recognize the legitimacy of the federal Clean Electricity Regulations," Harrison wrote.

Brett Dolter, a professor of economics at the University of Regina, described the decision as an "incredibly disappointing development."

Dolter, who has researched electricity options and pathways in Saskatchewan for more than a decade, said the decision to extend the life of the province's coal-fire plants violates federal regulations meant to reduce carbon dioxide emission.

"This opens up the door for protracted legal battles with the federal government and great uncertainty at a time when rapid investment in our electricity system is needed, " Dolter said in an email.

The province announced earlier this year that it was mulling this decision over.

At the time, it appeared to fly in the face of years of work on the coal-fired power plants. In 2012, then-prime minister Stephen Harper's federal government passed new regulations that would see the end of most coal-fired power by mid-21st century.

In 2016, Justin Trudeau's government passed further regulations requiring all coal-fired power stations to be closed down after 50 years of operation, or by 2030, whichever comes first. The province has previously said it would comply with those rules.

The decision announced today makes it clear that will no longer happen.

Saskatchewan even provided financial support for communities as it initially pushed toward ending its use of coal-fired plants. In 2020, it announced Estevan would receive $8 million and Coronach would receive $2 million. A further $550,000 was announced for Coronach in 2023.