Archives for July 2014

Calgary Herald

Monday, July 14, 2014

The men running to become the next Progressive Conservative leader – and Alberta premier – say they are closely watching the proposed sale of AltaLink as the debate heats up over the planned purchase of the transmission company by Berkshire Hathaway.

ATCO recently took out full-page newspaper ads warning of “serious consequences” if AltaLink’s current owner, Montreal-based SNC-Lavalin, is allowed to sell the company to the United States firm, which is owned by billionaire Warren Buffett.

The provincial NDP has already called for the $3.2-billion deal – which must be approved by both the province’s arm’s-length Alberta Utilities Commission and the federal government – to be killed.

NDP MLA Dave Eggen wants the PC government and the Tory leadership candidates to call on federal industry minister James Moore to block the deal, saying it fails the net benefit test spelled out in legislation.

“I think the feds have the best opportunity,” said the Edmonton-Calder MLA, one of two candidates seeking the provincial NDP leadership.

“I challenge the Conservative leadership candidates to make themselves heard on this. It’s a multibilliondollar project but more than that, it’s … access and control of a public service.”

Eggen said stopping the deal should be a prelude to returning the transmission

lines to public control.

Foreign takeovers have been the subject of political battles in the past, with the most notable recent example being Saskatchewan Premier Brad Wall’s full-court press in 2010 to get Ottawa to block the sale of Potash Corp. of Saskatchewan to BHP Billiton.

AltaLink owns roughly 12,000 kilometres of transmission lines and 280 substations in the province. It provides electricity to the majority – about 85 per cent – of Albertans.

PC leadership candidate Thomas Lukaszuk said that given Alberta’s reliance on export markets for energy and other resources, “we can’t afford to be protectionist.”

But the Edmonton-Castle Downs MLA said as premier he would want to sit down with the companies to determine whether the sale was in the best interests of Albertans.

“There is nothing wrong with a situation like this, when the deal is of this magnitude, to render an opinion,” said the former deputy premier.

Former federal cabinet minister Jim Prentice noted the province has the ability to provide input to the federal review and “the two regulatory hurdles for this are extremely high.”

But he told the Herald’s editorial board last week that the province needs to look closely at the deal.

“It’s clearly a significant transaction. It has major long-term implications for us in terms of who owns our infrastructure,” Prentice said. “We need to be careful. We need to review it.”

As the federal industry minister in 2008, Prentice blocked the sale of the space division of Macdonald Dettwiler and Associates to an American firm for national security reasons.

Calgary-Hays MLA Ric McIver said foreign investment is “very much a federal issue” but Alberta’s interests must be paramount in Ottawa’s review. “The province needs to take a hard look at this … and if it has concerns to bring those concerns to the federal government,” he said.

Both Wildrose Leader Danielle Smith and Liberal Leader Raj Sherman say they have concerns about the deal but aren’t calling for it to be blocked at this point.

Premier Dave Hancock, who is serving on an interim basis until PC party members vote for a new leader in September, said it would be inappropriate for him to make any comment on the proposed sale.

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Calgary Herald

Thursday, July 03, 2014

EDMONTON – Utilities giant Atco says it paid for anonymous ads in Alberta newspapers this week warning of “serious consequences” if AltaLink is sold to Berkshire Hathaway Energy, controlled by American billionaire Warren Buffett.

The ads, some titled “We’re Losing Control,” appeared in the Edmonton Journal, Calgary Herald, Edmonton Sun, Calgary Sun, Fort McMurray Today and some rural papers.

Berkshire Hathaway Energy announced on May 1 that it intends to purchase AltaLink – Alberta’s largest electricity transmission provider – from current owner SNC Lavalin of Montreal.

The $3.2-billion deal is expected to close Dec. 31 but needs approval from the Alberta Utilities Commission and the federal government.

A full-page ad in Thursday’s Journal and Herald warned of “serious consequences for the province we call home” if the sale is approved: loss of control of critical infrastructure, a lack of regulation south of the U.S. border and the “potential for more power exports.”

Nancy Southern, chairwoman, president and CEO of Atco Ltd., confirmed Atco paid for the ads. There wasn’t a need to disclose to readers that the message was from Atco, she said.

“The reason for not putting our name on it is it isn’t about Atco or AltaLink,” Southern said. “It’s about a principle, and a discussion that Canadians, and Albertans, should have.”

She said Albertans haven’t had enough time to consider the deal and its implications. Southern said she’s not opposed to direct foreign investment in Canada, but the transmission grid is different.

It’s the “lifeblood” of the electricity industry and shouldn’t fall into American ownership, beyond the reach of Canadian regulators, she said.

AltaLink president and CEO Scott Thon said the ads “smacked of self-interest.” He said he questioned why they were anonymous.

“The only conclusion I can bring is that you want them to be anonymous because you want them to spread misinformation, and that’s what these ads do,” Thon said before refuting each of the claims in the ads.

“AltaLink will continue to be an independent Alberta company run by Albertans,” he said. “It will be regulated by the Alberta Utilities Commission and it will have operational oversight by the independent AESO (Alberta Electric System Operator).”

The sale can’t lead to an increase in power exports, he said. AltaLink doesn’t own the power it moves, and Alberta is a net importer of electrical power, not an exporter.

“We’ll continue to be transparent,” Thon said. “We’ll continue to give people the facts.”

The ads encouraged people with concerns about the sale to contact their MLAs, the federal industry minister or the utilities commission.

AUC spokesman Jim Law said the commission had received 70 emails on the issue by mid-afternoon Thursday and that more were coming in. The ads have “generated some renewed interest” in the proposed sale, Law said.

“We welcome the input directly but also remind (people) that they can provide their input to various organizations that may be representing them, such as the Utilities Consumer Advocate or the Consumers Coalition of Alberta,” Law said.

“We do have a process in place – an evidence-based public process that will evaluate the application and produce a written decision.”

The Utilities Consumer Advocate and the Consumers Coalition of Alberta have registered as interveners in the review process. Atco Electric has also registered, and has called for “an open hearing” if it’s deemed necessary.

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