mustangup
Well-known member
http://www.theglobeandmail.com/news/national/alberta-seeks-legal-action-against-contract-dump-by-electrical-companies/article31112827/
The Alberta government is going to court to stop electrical companies from offloading $2-billion in money-losing power contracts on the province’s consumers.
With Alberta awash in cheap power from natural gas and electrical rates tumbling to the lowest levels in decades, Deputy Premier Sarah Hoffman said Monday that electrical companies were using a clause negotiated in secret with the previous government to dump unprofitable coal-power contracts on the public. Alberta’s deregulated electrical system is run under a complex set of rules where power is most often sold in 20-year contracts known as power-purchase arrangements.
“Our government is taking legal action to protect everyday Albertans from having to pay for the business losses of Alberta’s biggest and most profitable power companies,” Ms. Hoffman said. “We think this is not only unfair to Albertans, it is also unlawful.” “Market changes that affect profits are part of being in business and cannot be the grounds for abandoning contracts and passing on those costs,” Ms. Hoffman said. She added that the province’s power companies collected $10-billion in profits from the contracts, enough to make up for the $2-billion they are now expected to lose.
The Alberta government is going to court to stop electrical companies from offloading $2-billion in money-losing power contracts on the province’s consumers.
With Alberta awash in cheap power from natural gas and electrical rates tumbling to the lowest levels in decades, Deputy Premier Sarah Hoffman said Monday that electrical companies were using a clause negotiated in secret with the previous government to dump unprofitable coal-power contracts on the public. Alberta’s deregulated electrical system is run under a complex set of rules where power is most often sold in 20-year contracts known as power-purchase arrangements.
“Our government is taking legal action to protect everyday Albertans from having to pay for the business losses of Alberta’s biggest and most profitable power companies,” Ms. Hoffman said. “We think this is not only unfair to Albertans, it is also unlawful.” “Market changes that affect profits are part of being in business and cannot be the grounds for abandoning contracts and passing on those costs,” Ms. Hoffman said. She added that the province’s power companies collected $10-billion in profits from the contracts, enough to make up for the $2-billion they are now expected to lose.
