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Sask: Blinded by the Light

Author: Lee Harding 2008/12/28

How many dollars does it take to screw-in a light bulb?  According to documents obtained by the Canadian Taxpayers Federation through a Freedom of Information (FOI) request, since 2006, SaskPower has spent $2.3-million on campaigns to promote the use of compact fluorescent bulbs (CFLs).

The crown has spent $893,000 to advertise the energy-conserving CFLs in various ad campaigns. In addition, $1.44-million went to Project Porchlight, a non-profit organization that distributes CFLs.

Of this $1.44-million, only $472,500—about one-third of the total costs—went to buying the bulbs themselves.  Another $209,945 went towards advertising, $245,321 for staffing costs and $516,700 under miscellaneous categories such as renting office space, insurance and program evaluation. Full disclosure can be found online at www.taxpayer.com/bank/report/193.pdf.

The goal was to save SaskPower money by lowering consumer demand and save the planet by using less energy.  Customers footing the bill have wondered if this was such a “bright idea” since hearing about a cancelled party for Project Porchlight volunteers.  The mid-December bash at TCU place in Saskatoon was all set to go when it was suddenly cancelled.  Apparently SaskPower thought it was a crass time to party, given that they had recently asked for a 13 percent hike in power rates that will cost the average homeowner an extra $120 per year.

This meant that even though volunteers in Prince Albert and Regina had already had their celebrations, those in Saskatoon would not.  Due to the last-minute cancellation, SaskPower customers still paid Canadian Idol runner-up Theresa Sokyrka to fly to Saskatoon and for a performance she never gave.

SaskPower insists it’s money well-spent.  The crown corporation estimates that it could save as much as $6-million over six years due to increased CFL use. Power generation costs more than it used to, meaning that if SaskPower is to keep up with demand, it has to spend more to build new power generation. The logic is if it can lower demand, it can stave-off this expenditure.

Further examination makes the financial benefits even more marginal.  The federal government says it will ban energy-inefficient bulbs from store shelves by 2012.  Unless the traditional incandescent bulb undergoes radical change, CFLs will be the only choice left.  This means at best, SaskPower’s campaigns will only put these bulbs in people’s hands sooner.

Worse, SaskPower’s gains in lowering demand are far outweighed by decreasing supply—all because of another expensive project.  In addition to $240-million from Ottawa, SaskPower is spending $758-million to capture carbon from its hydro plant at Boundary Dam.  Unfortunately, the retrofit will lower its production by 30 megawatts—roughly enough to power 30,000 homes. More spending has meant less power at the worst possible time.

This shortfall in supply guarantees many more years of expensive projects and propaganda to save the ice caps and decrease power usage. As bills go up to keep world temperatures down, ratepayers can only wonder, “How many lightbulbs does it take to screw a SaskPower customer?”


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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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