History of electricity sector in Canada
Encyclopedia
The history of electricity sector in Canada has played a significant role in the economic and political life of the country since the late 19th century. The development of hydropower in the early 20th century has profoundly affected the economy and the political life in Canada and has come to symbolize the transition from "old " industrialism of the 19th century to a "new", modern and diversified, Canadian economy.
In the 1890s, three competing firms in Ontario engaged in a competition to develop the Canadian side of Niagara Falls. After several years of delays, construction began on the two sites in 1902 and on a third in 1904. At the same time, a group of municipalities in southern Ontario set up utilities joined their efforts to obtain a stable supply of hydropower. Despite his initial reluctance, Ontario Premier George William Ross
organizes the Ontario Power Commission in 1903 to coordinate efforts.
After the private companies refusal to negotiate power deals, the government responds by setting up an enquiry headed by Adam Beck
, who recommends the establishment of a publicly owned distribution system. The province established the Hydro Electric Commission of Ontario
in 1906 and voters approve municipalization of power distribution a year later. The Commission began delivering power to cities and towns in October 1910. By World War I, 59,000 customers were connected to the grid in Ontario.
In Winnipeg and Vancouver, private companies were also quick to develop hydropower in major centres. The British Columbia Electric Railway is the first company to build an hydro site in British Columbia. The company remained under private control until after the First World War. In the Manitoba capital, railroad tycoon William Mackenzie
built the first plant built on the Winnipeg River to supply the Ogilvie mill. Mackenzie soon faced competition from the city of Winnipeg, after voters backed the construction of a $ 3.25 million publicly funded dam on the Winnipeg River in 1906.
and hydroelectric development.
The Quebec government was a latecomer as far as its involvement in the electricity sector is concerned. After an anarchic period, the industry consolidated into a duopoly of investor-owned utilities
. In Quebec's largest city, Montreal Light, Heat & Power
(MLH&P) became the dominant player through mergers
with competitors.
In the rest of the province, Shawinigan Water & Power Company (SW&P) attracted large industrial customers, aluminium smelters, carbide plants and pulp and paper mills, with an hydroelectric complex built on the Saint-Maurice River
. In 1930, SW&P had grown to become the leading power company in Quebec was one of the largest hydroelectric companies in the world.
Calls for nationalization of the industry began during the Great Depression, after a political scandal surrounded the construction of the Beauharnois Hydroelectric Power Station
, on the Saint Lawrence River
, west of Montreal. Critics attacked the "electricity trust" for their abusive rates and excessive profits. The campaign, masterminded by Philippe Hamel
and T.-D. Bouchard
, led to the nationalization
of MLH&P and the creation of Hydro-Québec
by the liberal government of Adélard Godbout
in 1944. The other electric companies were taken over by Hydro-Québec in 1963, following an snap election
on the issue of electricity spearheaded by René Lévesque
, the provincial minister in charge of Natural Resources in the Jean Lesage
government.
Under government leadership, provincial power companies invested heavily in the power sector to stimulate economic development. Premiers Joey Smallwood
in Newfoundland, W. A. C. Bennett in British Columbia, Ed Schreyer in Manitoba and Robert Bourassa
in Quebec shared this vision of hydropower as a major part of their provinces' industrial development policies.
Hydroelectric mega-projects were undertaken by most provinces during the 1960s and 1970s. BC Hydro
developed power stations along the Peace
and Columbia River
s. Manitoba Hydro
undertook the Nelson River Hydroelectric Project
. In Labrador, the controversial Churchill Falls Generating Station
was built after 20 years of negotiations, and NB Power
undertook the construction of the Mactaquac Dam
, near Fredericton.
But hydroelectric development was most active in Quebec. Between 1965 and 1984, Hydro-Québec built 7 large power stations on the Manicouagan
and Outardes rivers and the first 3 plants of the 16,000-MW James Bay Project
on La Grande River
. The 5 plants of the second phase were built between 1987 and 1996.
But ample supply and increased opposition to large hydroelectric projects by environmentalists and First Nations forced the postponement or cancellation of several proposed developments during the 1980s and 1990s, such as the Site C dam
on the Peace River
in British Columbia or the Great Whale project in Quebec.
Canada has a long and storied nuclear history. The area of Great Bear Lake
has provided uranium
for the Manhattan Project
and the first Canadian nuclear reactor, the ZEEP
, was built in 1945. Two years later, the National Research Council of Canada
began operations on the NRX
(National Research Experimental) heavy-water reactor at Chalk River Laboratories
, near Ottawa. In 1957, it was followed by the National Research Universal Reactor
(NRU).
In the meantime, Ontario Hydro
, Canadian General Electric
and Atomic Energy of Canada Limited
began working on an experimental nuclear power plant
, the Nuclear Power Demonstration
, in Rolphton, Ontario
, not far from Chalk River. The 22 MW reactor generated Canada's first nuclear energy to the grid on June 4, 1962.
The first full-scale nuclear power plant, the Douglas Point Nuclear Generating Station, entered commercial service on September 26, 1968. Douglas Point generated 220 MW and was built for $91 million. The CANDU reactor
was then built at three locations in Ontario in the next 25 years, in Pickering
, Bruce County
and Clarington
.
On the 20 nuclear reactors operational in Canada, only two are located outside Ontario: Gentilly-2
, near Trois-Rivières
, Quebec, and Point Lepreau
, west of Saint John, New Brunswick
. Both became operational in 1983.
In the 1890s, three competing firms in Ontario engaged in a competition to develop the Canadian side of Niagara Falls. After several years of delays, construction began on the two sites in 1902 and on a third in 1904. At the same time, a group of municipalities in southern Ontario set up utilities joined their efforts to obtain a stable supply of hydropower. Despite his initial reluctance, Ontario Premier George William Ross
George William Ross
Sir George William Ross was an educator and politician in Ontario, Canada. He was the fifth Premier of Ontario from 1899 to 1905....
organizes the Ontario Power Commission in 1903 to coordinate efforts.
After the private companies refusal to negotiate power deals, the government responds by setting up an enquiry headed by Adam Beck
Adam Beck
Sir Adam Beck was a politician and hydroelectricity advocate who founded the Hydro-Electric Power Commission of Ontario.-Biography:...
, who recommends the establishment of a publicly owned distribution system. The province established the Hydro Electric Commission of Ontario
Ontario Hydro
Ontario Hydro was the official name from 1974 of the Hydro-Electric Power Commission of Ontario which was established in 1906 by the provincial Power Commission Act to build transmission lines to supply municipal utilities with electricity generated by private companies already operating at Niagara...
in 1906 and voters approve municipalization of power distribution a year later. The Commission began delivering power to cities and towns in October 1910. By World War I, 59,000 customers were connected to the grid in Ontario.
In Winnipeg and Vancouver, private companies were also quick to develop hydropower in major centres. The British Columbia Electric Railway is the first company to build an hydro site in British Columbia. The company remained under private control until after the First World War. In the Manitoba capital, railroad tycoon William Mackenzie
William Mackenzie (railway entrepreneur)
Sir William Mackenzie was a Canadian railway contractor and entrepreneur.Born near Peterborough, Ontario, Mackenzie became a teacher and politician before entering business as the owner of a sawmill and gristmill in Kirkfield, Ontario...
built the first plant built on the Winnipeg River to supply the Ogilvie mill. Mackenzie soon faced competition from the city of Winnipeg, after voters backed the construction of a $ 3.25 million publicly funded dam on the Winnipeg River in 1906.
State control and rural electrification
Development of the electric sector accelerated after the First World War with the creation of provincial utilities in Nova Scotia, New Brunswick, Manitoba, Saskatchewan and British Columbia, in the 1920s. Publicly owned electric companies put a strong focus on rural electrificationRural electrification
Rural electrification is the process of bringing electrical power to rural and remote areas. Electricity is used not only for lighting and household purposes, but it also allows for mechanization of many farming operations, such as threshing, milking, and hoisting grain for storage; in areas...
and hydroelectric development.
The Quebec government was a latecomer as far as its involvement in the electricity sector is concerned. After an anarchic period, the industry consolidated into a duopoly of investor-owned utilities
Investor-owned utility
An investor-owned utility or IOU is a business organization, providing a product or service regarded as a utility , and managed as private enterprise rather than a function of government or a utility cooperative...
. In Quebec's largest city, Montreal Light, Heat & Power
Montreal Light, Heat & Power
The Montreal Light, Heat and Power Company was a utility company operating the electric and gas distribution monopoly in the area of Montreal, Quebec, Canada until its nationalization by the government of Quebec in 1944, under a law creating the Quebec Hydroelectric Commission, also known as...
(MLH&P) became the dominant player through mergers
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
with competitors.
In the rest of the province, Shawinigan Water & Power Company (SW&P) attracted large industrial customers, aluminium smelters, carbide plants and pulp and paper mills, with an hydroelectric complex built on the Saint-Maurice River
Saint-Maurice River
The Saint-Maurice River is a river in central Quebec which flows south from Gouin Reservoir to empty into the Saint Lawrence River at Trois-Rivières, Quebec. The river is 563 km in length and has a drainage basin of 43,300 km² ....
. In 1930, SW&P had grown to become the leading power company in Quebec was one of the largest hydroelectric companies in the world.
Calls for nationalization of the industry began during the Great Depression, after a political scandal surrounded the construction of the Beauharnois Hydroelectric Power Station
Beauharnois Hydroelectric Power Station
The Beauharnois Hydroelectric Power Station is a run-of-the-river hydroelectric power station along the Saint Lawrence Seaway on the Saint Lawrence River, in Quebec, Canada. The station was built in three phases, and comprises 38 turbines, capable of generating up to of electrical power...
, on the Saint Lawrence River
Saint Lawrence River
The Saint Lawrence is a large river flowing approximately from southwest to northeast in the middle latitudes of North America, connecting the Great Lakes with the Atlantic Ocean. It is the primary drainage conveyor of the Great Lakes Basin...
, west of Montreal. Critics attacked the "electricity trust" for their abusive rates and excessive profits. The campaign, masterminded by Philippe Hamel
Philippe Hamel
Philippe Hamel was a nationalist and progressive politician in Quebec, Canada.-Member of the legislature:Hamel entered politics to achieve the nationalization of all privately-owned electric companies...
and T.-D. Bouchard
Télesphore-Damien Bouchard
Télesphore-Damien Bouchard was a politician in Quebec, Canada.Born in Saint-Hyacinthe, Quebec, he was the mayor of the municipality from 1917 to 1930 and from 1932 to 1944 and president of the Federation of Canadian Municipalities in 1918...
, led to the nationalization
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...
of MLH&P and the creation of Hydro-Québec
Hydro-Québec
Hydro-Québec is a government-owned public utility established in 1944 by the Government of Quebec. Based in Montreal, the company is in charge of the generation, transmission and distribution of electricity across Quebec....
by the liberal government of Adélard Godbout
Adélard Godbout
Joseph-Adélard Godbout was an agronomist and politician in Quebec, Canada. He served as the 15th Premier of Quebec briefly in 1936, and again from 1939 to 1944. He was also leader of the Parti Libéral du Québec .-Youth and early career:Adélard Godbout was born in Saint-Éloi...
in 1944. The other electric companies were taken over by Hydro-Québec in 1963, following an snap election
Snap election
A snap election is an election called earlier than expected. Generally it refers to an election in a parliamentary system called when not required , usually to capitalize on a unique electoral opportunity or to decide a pressing issue...
on the issue of electricity spearheaded by René Lévesque
René Lévesque
René Lévesque was a reporter, a minister of the government of Quebec, , the founder of the Parti Québécois political party and the 23rd Premier of Quebec...
, the provincial minister in charge of Natural Resources in the Jean Lesage
Jean Lesage
Jean Lesage, PC, CC, CD was a lawyer and politician in Quebec, Canada. He served as the 19th Premier of Quebec from 22 June 1960, to 16 August 1966...
government.
Hydroelectric developments
Joey Smallwood
Joseph Roberts "Joey" Smallwood, PC, CC was the main force that brought Newfoundland into the Canadian confederation, and became the first Premier of Newfoundland . As premier, he vigorously promoted economic development, championed the welfare state, and emphasized modernization of education and...
in Newfoundland, W. A. C. Bennett in British Columbia, Ed Schreyer in Manitoba and Robert Bourassa
Robert Bourassa
Jean-Robert Bourassa, was a politician in Quebec, Canada. He served as the 22nd Premier of Quebec in two different mandates, first from May 12, 1970, to November 25, 1976, and then from December 12, 1985, to January 11, 1994, serving a total of just under 15 years as Provincial Premier.-Early...
in Quebec shared this vision of hydropower as a major part of their provinces' industrial development policies.
Hydroelectric mega-projects were undertaken by most provinces during the 1960s and 1970s. BC Hydro
BC Hydro
The BC Hydro and Power Authority is a Canadian electric utility in the province of British Columbia generally known simply as BC Hydro. It is the main electric distributor, serving 1.8 million customers in most areas, with the exception of the Kootenay region, where FortisBC, a subsidiary of Fortis...
developed power stations along the Peace
Peace River (Canada)
The Peace River is a river in Canada that originates in the Rocky Mountains of northern British Columbia and flows to the northeast through northern Alberta. The Peace River flows into the Slave River, a tributary of the Mackenzie River. The Mackenzie is the 12th longest river in the world,...
and Columbia River
Columbia River
The Columbia River is the largest river in the Pacific Northwest region of North America. The river rises in the Rocky Mountains of British Columbia, Canada, flows northwest and then south into the U.S. state of Washington, then turns west to form most of the border between Washington and the state...
s. Manitoba Hydro
Manitoba Hydro
Manitoba Hydro is the electric power and natural gas utility in the province of Manitoba, Canada. Founded in 1961, it is a provincial Crown Corporation, governed by the Manitoba Hydro-Electric Board and the Manitoba Hydro Act. Today the company operates 15 interconnected generating stations. It has...
undertook the Nelson River Hydroelectric Project
Nelson River Hydroelectric Project
The Nelson River Hydroelectric Project refers to the construction of a series of dams and hydroelectric power plants on the Nelson River in Northern Manitoba, Canada...
. In Labrador, the controversial Churchill Falls Generating Station
Churchill Falls Generating Station
The Churchill Falls Generating Station is a hydroelectric power station located on the Churchill River in Newfoundland and Labrador. The underground power station can generate 5,428 MW, which makes it the second-largest in Canada, after the Robert-Bourassa generating station. The generating station...
was built after 20 years of negotiations, and NB Power
NB Power
NB Power , formerly known as New Brunswick Power Corporation and New Brunswick Electric Power Commission is the primary and former monopoly electrical utility in the Canadian province of New Brunswick...
undertook the construction of the Mactaquac Dam
Mactaquac Dam
The Mactaquac Dam is an embankment dam used to generate hydroelectricity in the Canadian province of New Brunswick. It dams the waters of the Saint John River and is operated by NB Power with a capacity to generate 653 megawatts of electricity from 6 turbines; this represents 20 percent of New...
, near Fredericton.
But hydroelectric development was most active in Quebec. Between 1965 and 1984, Hydro-Québec built 7 large power stations on the Manicouagan
Manicouagan River
The Manicouagan River is a river in Côte-Nord region of Quebec, Canada. The river originates at the Daniel-Johnson Dam of the Manicouagan Reservoir and flows approximately south, emptying into the Saint Lawrence River near Baie-Comeau...
and Outardes rivers and the first 3 plants of the 16,000-MW James Bay Project
James Bay Project
The James Bay Project is a series of hydroelectric development with a combined installed capacity of over 16,000 megawatts built since 1974 for Hydro-Québec by the on the La Grande and other rivers of Northern Quebec....
on La Grande River
La Grande River
La Grande River is a river in northwestern Quebec, Canada, which rises in the highlands of north central Quebec and flows roughly west to drain into James Bay. It is the second largest river in Quebec, surpassed only by the Saint Lawrence River....
. The 5 plants of the second phase were built between 1987 and 1996.
But ample supply and increased opposition to large hydroelectric projects by environmentalists and First Nations forced the postponement or cancellation of several proposed developments during the 1980s and 1990s, such as the Site C dam
Site C dam
The Site C dam is a proposal by the British Columbia Hydro and Power Authority for a large-scale earth fill hydroelectric dam on the Peace River in north-eastern British Columbia, Canada...
on the Peace River
Peace River (Canada)
The Peace River is a river in Canada that originates in the Rocky Mountains of northern British Columbia and flows to the northeast through northern Alberta. The Peace River flows into the Slave River, a tributary of the Mackenzie River. The Mackenzie is the 12th longest river in the world,...
in British Columbia or the Great Whale project in Quebec.
Nuclear energy
Great Bear Lake
Great Bear Lake is the largest lake entirely within Canada , the third or fourth largest in North America, and the seventh or eighth largest in the world...
has provided uranium
Uranium
Uranium is a silvery-white metallic chemical element in the actinide series of the periodic table, with atomic number 92. It is assigned the chemical symbol U. A uranium atom has 92 protons and 92 electrons, of which 6 are valence electrons...
for the Manhattan Project
Manhattan Project
The Manhattan Project was a research and development program, led by the United States with participation from the United Kingdom and Canada, that produced the first atomic bomb during World War II. From 1942 to 1946, the project was under the direction of Major General Leslie Groves of the US Army...
and the first Canadian nuclear reactor, the ZEEP
ZEEP
The ZEEP reactor was a nuclear reactor built at the Chalk River Laboratories near Chalk River, Ontario, Canada . ZEEP first went critical at 3:45 PM, September 5, 1945...
, was built in 1945. Two years later, the National Research Council of Canada
National Research Council of Canada
The National Research Council is an agency of the Government of Canada which conducts scientific research and development.- History :...
began operations on the NRX
NRX
NRX was a heavy water moderated, light water cooled, nuclear research reactor at the Canadian Chalk River Laboratories, which came into operation in 1947 at a design power rating of 10 MW , increasing to 42 MW by 1954...
(National Research Experimental) heavy-water reactor at Chalk River Laboratories
Chalk River Laboratories
The Chalk River Laboratories is a Canadian nuclear research facility located near Chalk River, about north-west of Ottawa in the province of Ontario.CRL is a site of major research and development to support and advance nuclear technology, in particular CANDU reactor...
, near Ottawa. In 1957, it was followed by the National Research Universal Reactor
National Research Universal Reactor
The National Research Universal reactor, located in Chalk River, Ontario, is one of Canada’s national science facilities. It is a multipurpose science facility that serves three main roles....
(NRU).
In the meantime, Ontario Hydro
Ontario Hydro
Ontario Hydro was the official name from 1974 of the Hydro-Electric Power Commission of Ontario which was established in 1906 by the provincial Power Commission Act to build transmission lines to supply municipal utilities with electricity generated by private companies already operating at Niagara...
, Canadian General Electric
Canadian General Electric
Canadian General Electric was a Canadian manufacturer of various electrical products. The company was a forerunner of General Electric Canada, now known as GE Canada. It was the Canadian counterpart of the American company General Electric.Canadian General Electric Co...
and Atomic Energy of Canada Limited
Atomic Energy of Canada Limited
Atomic Energy of Canada Limited or AECL is a Canadian federal Crown corporation and Canada's largest nuclear science and technology laboratory...
began working on an experimental nuclear power plant
Nuclear power
Nuclear power is the use of sustained nuclear fission to generate heat and electricity. Nuclear power plants provide about 6% of the world's energy and 13–14% of the world's electricity, with the U.S., France, and Japan together accounting for about 50% of nuclear generated electricity...
, the Nuclear Power Demonstration
Nuclear Power Demonstration
Nuclear Power Demonstration was the first Canadian nuclear power reactor, and the prototype for the CANDU reactor design. Built by Canadian General Electric , in partnership with Atomic Energy of Canada Limited and Ontario Hydro , it consisted of a single 22 MWe pressurized heavy water reactor ...
, in Rolphton, Ontario
Laurentian Hills, Ontario
Laurentian Hills is a municipality in Eastern Ontario, Canada, on the Ottawa River in Renfrew County. It surrounds Deep River. The town is home to the Nuclear Power Demonstration...
, not far from Chalk River. The 22 MW reactor generated Canada's first nuclear energy to the grid on June 4, 1962.
The first full-scale nuclear power plant, the Douglas Point Nuclear Generating Station, entered commercial service on September 26, 1968. Douglas Point generated 220 MW and was built for $91 million. The CANDU reactor
CANDU reactor
The CANDU reactor is a Canadian-invented, pressurized heavy water reactor. The acronym refers to its deuterium-oxide moderator and its use of uranium fuel...
was then built at three locations in Ontario in the next 25 years, in Pickering
Pickering Nuclear Generating Station
Pickering Nuclear Generating Station is a Canadian nuclear power station located on the north shore of Lake Ontario in Pickering, Ontario. The facility derives its name from the City of Pickering in which it is located....
, Bruce County
Bruce Nuclear Generating Station
Bruce Nuclear Generating Station is a Canadian nuclear power station located on the eastern shore of Lake Huron, in the communities of Inverhuron and Tiverton, Ontario. It occupies 932 ha of land. The facility derives its name from Bruce County in which it is located, in the former Bruce Township...
and Clarington
Darlington Nuclear Generating Station
Darlington Nuclear Generating Station is a Canadian nuclear power station located on the north shore of Lake Ontario in Clarington, Ontario. The facility derives its name from the Township of Darlington, the former name of the municipality in which it is located.The Darlington station is a large...
.
On the 20 nuclear reactors operational in Canada, only two are located outside Ontario: Gentilly-2
Gentilly Nuclear Generating Station
Gentilly Nuclear Generating Station is a Canadian nuclear power station located near Bécancour, Quebec. The facility derives its name from the Gentilly suburb of the city of Bécancour, in which it is located...
, near Trois-Rivières
Trois-Rivières
Trois-Rivières means three rivers in French and may refer to:in Canada*Trois-Rivières, the largest city in the Mauricie region of Quebec, Canada*Circuit Trois-Rivières, a racetrack in Trois-Rivières, Quebec...
, Quebec, and Point Lepreau
Point Lepreau Nuclear Generating Station
Point Lepreau Nuclear Generating Station is a Canadian nuclear power station located 2 km northeast of Point Lepreau, New Brunswick. The facility was constructed between 1975-1983 by NB Power, the provincially-owned public utility....
, west of Saint John, New Brunswick
Saint John, New Brunswick
City of Saint John , or commonly Saint John, is the largest city in the province of New Brunswick, and the first incorporated city in Canada. The city is situated along the north shore of the Bay of Fundy at the mouth of the Saint John River. In 2006 the city proper had a population of 74,043...
. Both became operational in 1983.