Canadian Industrial Outlook: Electric Utilities—Autumn 2018

The Conference Board of Canada, 18 pages, December 13, 2018
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This report examines the short-and medium-term economic and profitability outlook for Canada’s electric utilities industry.

Document Highlights

Canadian Economy—After a strong performance last year, Canada’s economy is losing steam. Uncertainty about the new USCMA trade agreement and a widening tax differential with the U.S. are weighing down business confidence. With the projected slowdown in the economy, the outlook for electricity demand will be weaker this year.

Greenhouse Gas Emissions—Canada has ratified the Paris Agreement and committed to significantly decreasing CO2 and other emissions through 2030. Due to significant differences in provincial generation mixes, policies to reduce emissions will require a more regional focus.

Carbon Pricing—Starting in January 2019, provinces that do not have their own carbon pricing system in place will be subject to a federal carbon tax. This tax will have significant impact on the costs of electricity generation from combustible sources, such as coal, natural gas, and oil.

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