P.E.I. cabinet OKs $88M in extra spending, mostly due to popularity of heat pump program
Kerry Campbell | CBC News | Posted: February 23, 2024 10:00 AM | Last Updated: February 23
Household income threshold to qualify for a free heat pump is now $100,000 net
P.E.I.'s cabinet has authorized more than $88 million to cover spending that came in over-budget.
The spending authorizations, called special warrants, were approved at cabinet meetings on Jan. 30 and Feb. 13.
Finance Minister Jill Burridge said the biggest expenditure was $29 million to expand the province's free-heat-pump program.
"There's a lot of people that are taking advantage of that program," she said. "It goes hand in hand with the affordability piece that we're trying to play, as well as the sustainability piece and having people convert from oil to air-to-air systems."
The province's website says installing a heat pump can save households $1,000 a year on energy costs.
In December, the province increased the household net income threshold to qualify for a free heat pump to $100,000.
Burridge said there are federal revenues heading P.E.I.'s way to offset that spending.
Another expense that came in well over budget was crop insurance, with an extra $15 million in claims from last season.
Burridge said the province remains on track with its original projection for a deficit of about $100 million in the current fiscal year, which ends March 31.