The future site of the SaskPower Power station located near the lagoons on the south side of the city, along Highway 2.Progress has finally been made and been given the green light on the proposed SaskPower plan – to build a 350-megawatt natural gas-fired power station right here, in Moose Jaw.

Dustin Duncan, the Minister responsible for SaskPower announced Thursday that the company has completed its review of new federal regulations and has decided to proceed with the project.

Duncan explained why Moose Jaw was their preferred choice.

"Just really looking at the alternatives, knowing that by 2024 we need that 350-megawatts of base-load power, and really doing all the analysis this was the most cost-effective way to do so, despite the fact that the carbon tax would be applied to the emissions. SaskPower went through a process of the last number of months, crunched the numbers, and still made recommendations to the board and ultimately the government that this was the right approach."

"SaskPower really looks at where is the demand on the load coming from and where it's projected to be. The Regina-Belle Plain-Moose Jaw corridor looks to be an area of demand for load. Going forward this was the best choice in terms of being able to supply that base-load, and be able to supply it in an area where there is expected to be growing demand and where we can do so keeping the rates as low as possible going forward."

Moose Jaw Mayor Fraser Tolmie, Swift Current Mayor Denis Perrault, and representatives from SaskPower touring the Chinook Power Plant earlier this year, which will be similar to the new plant being built in Moose Jaw.

Since SaskPower initially advanced the project, federal environmental approval has been received. A process for the pre-qualification of proposals to build the facility has also been undertaken. With this decision to proceed, SaskPower will submit a technical proposal for provincial environmental review, execute land and service agreements, and proceed with shortlisting qualified proponents to design and build the facility.

Mayor Fraser Tolmie sent a letter to Prime Minister Justin Trudeau earlier this year asking the new plant to be grandfathered into the carbon tax – which appears won't happen. Duncan says that the Chinook plant in Swift Current will be grandfathered in, Moose Jaw's won't. And while it's a big cost, it shouldn't cause too much of an issue.

"The Chinook plant, because it will be operational before 2024, it is grandfathered under the previous regulations - which is good news. Essentially anything that comes online after 2022, the carbon tax will apply. It is a significant additional cost that we weren't expecting, but despite that, the economics of it in terms of base-load power, this is still the project that makes the most sense."