Sask First Tribunal Releases Report: Federal Clean Electricity Regulations Would Cost Province $7.1 Billion

Released on June 25, 2024

Government of Saskatchewan will not adhere to CER, onus on Federal Government to Prove CER's Constitutionality 

Following the release of the Saskatchewan Economic Impact Assessment Tribunal’s report on the federal Clean Electricity Regulations (CER), the Government of Saskatchewan has announced that it will not be complying with the regulations when they come into effect.

According to the Report, Saskatchewan's economic growth would be at least $7.1 billion lower, the province would lose at least 4,200 jobs, and there would be an $8.1 billion negative effect on Saskatchewan’s export sector under the CER.

“This report offers irrefutable, independent evidence that these federal regulations will have a substantial impact on the cost of electricity in Saskatchewan and, as a consequence, our economy and way of life," Justice Minister and Attorney General Bronwyn Eyre said. "We cannot participate in federal economic harm to our province."

The Tribunal compared the CER to Saskatchewan's Affordable Power Plan to reach net-zero electricity by 2050. The Tribunal was also asked to examine the forecasted collective effect of the CER on the provincial economy to the end of 2035.

“The Tribunal’s findings confirm what the Government of Saskatchewan has already told the federal government—their approach in an attempt to regulate our provincial electricity system is unaffordable and technologically and logistically unattainable,” Crown Investments Corporation Minister Dustin Duncan said. “We will continue Saskatchewan’s plan to ensure reliable baseload electricity for the next decade of growth and beyond, while working toward a net-zero electricity sector by 2050.”

The Tribunal found that regional differences between provinces, including power sources, population, climate and geography were not taken into account when the federal government developed the CER and identified a wide variety of impacts on the Saskatchewan economy, including:

• By 2035, residential ratepayers would face a $241 increase in additional electricity costs and a $630 increase by 2050. Households would have between $1,350-$2,040 less to spend annually.

• By 2035, commercial ratepayers would face a $888 increase in additional electricity costs and a $2,340 increase by 2050.

• By 2035, small industrial ratepayers would face a $1,429 increase in additional electricity costs and a $3,750 increase by 2050.

• Saskatchewan has only three per cent of Canada’s population, but would bear at least 15 per cent of the total costs of CER compliance.

• Saskatchewan and its industries are particularly vulnerable to the consequences of greater electricity costs due to our resource and export-based economy. 

• Complying with the CER would lead to stalled growth, potential shifts of production to jurisdictions with less stringent environmental standards, and a substantial decrease in royalties and taxes paid to the Government of Saskatchewan.

• Taxpayer-funded power infrastructure would have to be abandoned prior to its intended end-of-life.

Saskatchewan’s position is that the onus is now on the federal government to prove the constitutionality of the CER before it imposes these regulations on Saskatchewan. 

“We will not be submitting taxpayers to the cost of litigation against the federal government unless litigated against," said Eyre. "The federal government is well aware that laws with respect to the generation and production of electrical energy fall under exclusive provincial jurisdiction in section 92A of the Constitution Act, 1867.”

The Economic Impact Assessment Tribunal conducted its analysis and developed this report under the authority of The Saskatchewan First Act. The report was released earlier today and can be accessed below.

The Tribunal is currently examining the economic cost of the proposed federal oil and gas emissions cap and federal ‘Methane 75’ regulations.

The CER are expected to come into effect on January 1, 2025.

For more information on the Economic Impact Assessment Tribunal and its ongoing work, visit:

https://www.saskatchewan.ca/government/news-and-media/2023/november/28/government-announces-first-impact-assessment-tribunal.

https://www.saskatchewan.ca/government/news-and-media/2024/april/08/media-advisory.

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For more information, contact:

Kerri Ward-Davis
Justice
Regina
Phone: 306-787-8621
Email: jumedia@gov.sk.ca
Cell: 306-533-2170