Seven stumbles and a funeral: Why Alberta’s Premier Alison Redford had to quit

Josh Wingrove

The Globe and Mail

Published

Last updated

There was no one thing. Alison Redford, so frequently a premier on borrowed time, succumbed Wednesday when she resigned her leadership of Alberta’s dynasty PC party. But there were signposts along the road as she gradually lost the support of the public and her party.

1. The outsider

Ms. Redford was an outsider from the start, with only one MLA supporting her leadership bid. She made the second ballot largely by signing up outsiders with a string of campaign promises – chiefly to reverse a $107-million education cut, which wooed teachers but angered many in the party. She beat the caucus’s preferred candidate, Gary Mar, with the same outsider support and, six months later, won an election in which the Wildrose Party made serious errors in the final week. She struggled to satisfy both the centrist, non-partisan coalition that handed her power, and the party she led.

2. Trouble on the left, unrest on the right

A pair of anti-union bills passed in December sparked protests and led union leaders, who earlier were favourable, to dismiss her as a fraud. Earlier in the year, her government also changed the way it budgeted, separating out capital spending. The move was explained as being more in line with common accounting principles, but fiscal hawks said it amounted to cooking the books.

3. The Mandela funeral

The catalyst for much of the furor is a $45,000 trip to South Africa for Ms. Redford and an aide to attend Nelson Mandela’s funeral. The costs were high because she took a government plane to meet up with Stephen Harper’s own plane, flew her aide separately and then flew back early, rather than travelling with Mr. Harper. A week ago, she apologized and said she paid back the $45,000.

4. Expenses and ethics under scrutiny

Ms. Redford had introduced what she billed as the country’s most robust expense disclosure rules. But her own expenses came under greater scrutiny after the South Africa trip. She was slammed for booking first-class flights and luxurious hotels. She flew her daughter and her daughter’s friend on the government plane, which was also used for trips timed closely to party events – and to pick Ms. Redford up in California before Ralph Klein’s funeral. Ms. Redford was also critized when a lucrative tobacco lawsuit contract went to the law-firm of her ex-husband.

5. An uprising in caucus

Last Thursday, MLA Len Webber broke publicly with his leader, resigning from caucus and telling a news conference she was a bully and that anybody would be better as leader. Ms. Redford’s allies attacked, saying he was “a very sad man” who should “go back to being an electrician.” That further divided caucus. One well-regarded MLA, former energy executive Donna Kennedy-Glans, followed suit Monday, resigning from caucus and cabinet. Other MLAs were openly discussing doing the same.

6. The isolated leader

Ms. Redford struggled to establish a personal connection with voters and even most members of her own caucus. When Ms. Kennedy-Glans left, she said she had spoken one-on-one with the premier just once since being elected, even though the two are from the same party, their ridings are both in Calgary and Ms. Kennedy-Glans held a junior cabinet post. There were other signs: Ms. Redford replaced government sedans with black SUVs and brought in top staff from Ontario or from outside politics. Seen to be freezing out caucus, she had few friends when things went sour.

7. No rescue party

In the last election, Ms. Redford fought off a challenge from the nascent Wildrose Party but the polls showed support flowing back to the opposition. In the election, business interests – or money, at least – rallied to the PCs. But as Redford’s troubles accumulated there was little support from leaders in the oil patch, out of the oil patch. As Jeff Jones reports, industry leaders shrugged at her crisis because they see little difference in how either the PCs or Wildrose would affect them

8. Polling problems and the knife at the throat

After months of decline, public opinion poll numbers placed Ms. Redford and her Tories at terrifying depths, with a personal approval rating of 18 per cent and party support of just 19 per cent, versus 46 per cent for Wildrose. With the party’s 43-year dynasty at risk, riding association presidents were preparing non-confidence motions in meetings set for Wednesday night, which were pre-empted by Ms. Redford’s departure.
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Redford should quit playing the ‘mommy’ card

By Letter to the Editor on March 18, 2014.

Alison Redford needs to resign immediately to be a stay-at-home mom. Albertans don’t need or want any politician who plays the “mommy” card (or “daddy” card, for that matter) as an excuse for giving themselves yet more perks on the backs of the taxpayer.

What nerve for politicians to think they are entitled to give themselves whatever they want because of the job requirements. If they find those requirements that much of a burden, they should quit and find other employment, like anyone else in the workforce who is dissatisfied with their job does.

The sad reality is that no one goes into politics with a view of “public service;” rather, they go into it with a view of “self service.” And, it’s prevalent in all levels of government, be it local, provincial or federal. What other group gives themselves raises, huge pensions and a myriad of other perks as selfish and self-serving as these individuals? At a time when most Albertans are struggling to pay exorbitant taxes and excessive utility bills, it is unconscionable for these so-called public servants to be “feathering their nests” at taxpayers’ expense. They should be ashamed of themselves.

And, thanks to Ms. Redford, I will no longer consider supporting, for any level of government, any woman who has children under 18. Apparently, it is too great an encumbrance for them. Amazing though, isn’t it, how thousands of other working women manage to juggle motherhood and jobs, with a lot less money and no perks?

Diane Hall

Lethbridge

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Increased chlorination to continue

March 18, 2014.

Dave Mabell

LETHBRIDGE HERALD

[email protected]

With ice thawing along the Oldman River, city residents will have to put up with poor-tasting water.

But Lethbridge water remains clean and safe to drink, city council was assured Monday.

Doug Hawkins, the city’s manager of infrastructure services, reported officials are receiving complaints about the odour and less-than-ideal taste of the city’s water currently, in the wake of a boil-water order last week.

“Turbidity levels and the amount of suspended solids remains high,” he told council.

“And the ice is breaking up now,” adding to the situation.

“It’s a continuing challenge,” he said. “The plant is operating normally,” Hawkins added.

Though last week’s challenges forced the plant’s temporary shutdown, he said conditions now are what’s usually expected in March. As in previous years, part of the city’s response is to increase the level of chlorination in the system as a safeguard.

“That’s normal,” and could continue for several more days.

Mayor Chris Spearman joined council members in thanking Hawkins, water and wastewater manager Doug Kaupp and their staff for their work in overcoming the city’s brief water crisis.

“They were the heroes during the water shortage.”

The mayor also praised the efforts of Fire Chief Brian Cornforth, who doubles as the city’s emergency response director.

City residents should also be thanked for conserving the water supply as requested, Councillor Ryan Parker said.

Spearman told council city officials consider the consequences when they ask businesses and citizens o reduce their water consumption significantly.

“We don’t issue a state of emergency order lightly,” he said.

Nor does Alberta Health Services when it issues a boil-water warning, the mayor added.

As of Monday, however, residents of the Vista Meadows residential development west of the city – along with customers of the Lethbridge North County Potable Water Co-op and the County of Lethbridge Rural Water Association Co-op – remained under a boil-water order from AHS.

Officials said there was a possibility of contamination from the depressurization of co-op lines during the regional water emergency. It could take several days for the systems to be flushed and deemed potable, they said earlier.

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When Will PC Government Listen to Albertans and Stop Allowing Risky Drilling in Urban Areas?

NDP

Question Period: March 17, 2014

Click here to see the Video

Mr. Bilous: Mr. Speaker, for years Albertans have watched this PC government bend over backwards to help industry make huge profits at the expense of the environment and community safety. Today 11,000 citizens of Lethbridge, just to name one city, delivered a petition calling on this government to help protect their homes, schools, playgrounds from harmful drilling. To the Minister of Municipal Affairs: when will you listen to the people of Alberta and their municipal leaders and stop allowing risky drilling in urban areas?

Mrs. McQueen: Thank you, Mr. Speaker, and thank you to the member for the question. I want to say that we’ve been listening very, very carefully to our two MLAs from the area, to the mayor of the community as well, making sure that the environmental concerns from their communities are able to be addressed with me. I’ve talked to the mayor myself. We’re going to meet. We’re also looking at an urban drilling policy. We’re working on that piece right now. What is important for me is the safety of Albertans, all Albertans.

Mr. Bilous: Mr. Speaker, given that there are still no clear rules on drilling in urban areas and given that this PC government has been promising an urban drilling strategy since 2012, when Calgary faced the same threat that Lethbridge does today, to the Minister of Energy: when will we finally get to see this policy, and why has it taken so long? 

Mrs. McQueen: Well, thank you, Mr. Speaker. Indeed, we do have policies about drilling in this province, whether they be for urban or rural, and I have made a commitment to look at the policies, review the policies, and bring forward different stakeholders, municipalities and other stakeholders, so that we can look at those policies, first of all, so that everyone is aware what policies we do have in place. Whether we live in rural Alberta or we live in urban Alberta, it’s important for all of us to have policies for safe drilling.

Mr. Bilous: Tick-tock, tick-tock, Minister. Mr. Speaker, given that without this policy the government and regulators continue to make up rules on the fly in the backroom and given the strong opposition from Albertans, including in Lethbridge the mayor and city council, the chamber of commerce, and both school boards, to the Minister of Municipal Affairs: will the minister commit that changes to the Municipal Government Act will include a prohibition on drilling in urban areas, and if not, why not?

Mrs. McQueen: Well, again thank you for the question. What’s important to note, Mr. Speaker, in this particular case is that there has been no application put forward to the Alberta Energy Regulator, so the citizens are having the opportunity to bring their concerns first and foremost to their two outstanding MLAs – the mayor is able to talk with myself as well – and to be able to talk about those. But, quite frankly, there is no application before the regulator at this point.

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Lethbridge County adds voice to concerns over urban drilling

By Simmons, Garrett on March 10, 2014.

Stan Ashbee

southern alberta newspapers

There’s oil in them there hills – foothills that is. Considered black gold by some. Oil and gas exploration has been at the forefront in Lethbridge and surrounding area over the past few years. Whether it’s good or bad for municipalities will continue to be debated.

At a Lethbridge County council meeting Thursday, a motion was passed that Lethbridge County council send a letter to Robin Campbell, Alberta Environment and Sustainable Resource Development minister, that recognizes the value the oil and gas industry adds to Alberta and also encourages legislative changes that will give local governments in Alberta a stronger voice on resource extraction matters in areas that impact municipalities. Deputy Reeve Henry Doeve opposed the motion.

“I don’t want to be drawn into the City of Lethbridge’s issues. They’re making an issue out of something that is not an issue,” said Doeve. “There’s pretty good stop gaps in place now. They can’t drill in the middle of my house now,” he added.

A recommendation was made after a letter from City of Lethbridge Mayor Chris Spearman was submitted to county council asking whether county council would consider passing a resolution expressing concern about the absence of municipal authority respecting resource drilling within municipal boundaries.

“I think we could have some say in it. I mean it has nothing to do with the Lethbridge issue but potentially they could want to drill next to a hamlet or on a road where it absolutely won’t handle truck traffic. Next thing you know they’ve got 50 trucks a day on some of these roads,” noted Coun. Steve Campbell.

In a recommendation to council from Larry Randle, director of community services, Lethbridge County recognizes the benefits of natural resource extraction and values the oil and gas industry and all the benefits it brings to Alberta. The information submitted also stated having a stronger voice in local area resource extraction would provide the county and other local governments with an enhanced ability to plan for the future.

“We have lots of rules and regulations in place already,” said Coun. Morris Zeinstra.

Lethbridge County Reeve Lorne Hickey added if oil exploration ends up next to hamlets or residential areas it would be beneficial to have a clearer understanding of the development and also a small say in how it occurs.

“Could it be up wind or down wind or how could we do this differently to accommodate the people that live there?” said Hickey, adding while not sacrificing any of the economy.

Doeve asked council if there is indeed a problem. “There’s lots of oil and gas exploration going on all over the place,” he said, adding because of procedures already in place it’s not a problem.

Doeve added he hasn’t heard of any problems in the hamlets within the area and there are currently many safety measures in place.

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Redford using extra cash to hire letter writers

By Dean Bennett  The Canadian Press
March 7, 2014 3:22 pm

EDMONTON – Alberta Premier Alison Redford’s office says it will use $300,000 of a $1.2-million boost in its budget this year to hire more letter writers.

Neala Barton, Redford’s spokeswoman, said Friday the premier needs to respond better to the high volume of correspondence from Albertans.

Barton said the goal is “to speed up how quickly we’re getting back to Albertans.”

She could not say how many new letter writers will be hired or how many are already handling correspondence for Redford.

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Earlier Friday, Barton said the figure to be spent on the hires was one-third of the $1.2 million, which would have been $440,000, but she later clarified that it was one-quarter.

She said the remaining $900,000 will be used to pay off internal contractual obligations and to hold more events to persuade dignitaries to visit and invest in the province.

The increase brings Redford’s office budget to $12.8 million — a 9.4 per cent increase from the previous year.

Opposition critics called it more hypocritical waste from a premier under fire over revelations of lavish travel spending while freezing public sector wages and letting program spending lag.

“She’s putting herself and the members of her inner circle above the very people she’s supposed to serve,” said Liberal Leader Raj Sherman. “Redford is really rubbing it in the face of Albertans.

“With $1.2 million, Redford can actually hire 20 teachers for a whole year.”

NDP Leader Brian Mason said the budget increase for the premier’s office widens the divide between Redford and Albertans.

“It’s another example of the tale of two Albertas: one for the premier and her entourage and the other for the rest of us, who are expected to make do with less.”

On Thursday, Redford’s government delivered a second consecutive budget that held the line on spending in a province leading the country in economic and population growth.

On Friday, her team fanned out across Alberta to talk about the budget.

Redford’s office said she had no events or media availabilities.

It was the end to a rough first week back in the legislature for a premier who has been hounded by opponents for weeks to repay $45,000 for a trip she and her aide took in December to attend Nelson Mandela’s funeral. The trip included use of a government plane and first-class air tickets. Nova Scotia’s premier made the same trip for under $1,000.

There have been other revelations, including one that Redford billed taxpayers for a $9,000 ride back from a Palm Springs vacation on a government plane to attend former premier Ralph Klein’s funeral.

On Tuesday, Redford admitted that for over a year she had been flying her daughter and her daughter’s friends around on government planes. She repaid $3,100 to cover the cost of the friends.

She has now grounded all out-of-province government plane trips and has asked the auditor general to determine if taxpayers are getting value for money on government aircraft.

On Wednesday, when opposition members pointed out it’s against government policy for Redford to fly her daughter on government planes, she said it’s time to change the rules to reflect that “you have a premier who has a 12-year-old daughter.”

Mason said Redford is holding up her being a working mom to ignore rules that don’t work for her.

“We’ve heard from a lot of working mothers that they resent it very much,” he said.

“They struggle to balance work and family. They do not have the luxury of government airplanes to bring them back from Palm Springs. They don’t have the ability to change the rules to suit themselves.

“I think it’s actually created more resentment than sympathy.”

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Wind, solar proponents have high hopes for Alberta renewable energy framework

Policy promised in throne speech

 By Amanda Stephenson, Calgary Herald
March 4, 2014

CALGARY – The solar and wind industries could be about to take off, proponents say, if a long-awaited renewable energy framework becomes a reality in Alberta.

The need for a comprehensive plan governing wind, solar, and geothermal electricity generation in Alberta has been discussed for years in Alberta. As far back as 2007, a group called the Clean Air Strategic Alliance — made up of representatives selected by government, industry, and the non-profit sector — recommended drafting such a framework with the goal of increasing Alberta’s supply of and demand for renewable and alternative electricity sources.

For the most part, the government has remained tight-lipped about its plans. But Monday’s throne speech contained a line promising the introduction of “an alternative and renewable energy framework that empowers consumers to exercise choice within the market-based electricity system.”

That’s significant, said Robert Hornung, president of the Canadian Wind Energy Association. He said Alberta was at one time a leader in Canada on the renewable energy front, thanks to its ideal conditions for wind generation. But other provinces such as Quebec and Ontario have leaped ahead, in part because they have renewable energy policies that are helping to grow the sector.

“We’ve seen more and more of that investment flow to other jurisdictions,” Hornung said. “We will need to see some changes, because if the status quo is maintained, Alberta will have a hard time competing for this investment going forward.”

The challenge for the Alberta government is finding a way to support renewables within Alberta’s deregulated, free-market electricity system.

Ben Thibault, director of the Pembina Institute’s electricity program, said the government is unlikely to replicate Ontario’s feed-in tariff system, which assures wind farm developers of a fixed price for their electricity. But he said he would like to see a “renewable portfolio” or “clean electricity” standard, which would require retailers to either source a certain proportion of their electricity from renewable sources or ensure their portfolio falls below a maximum emissions intensity standard.

“This is a policy that’s been successful in a number of U.S. states,” Thibault said. “Over 30 states now have implemented a policy like this, including in free market systems like Texas, which has increased its wind energy substantially through this type of policy.”

Calgary-based renewable energy development company BluEarth Renewables currently has two Alberta wind projects in the works. Vice-president of market development Marlo Raynolds said the company would like to have more projects in its home province, but said the uncertainty around wind power pricing in Alberta scares away investment.

Requiring retailers to source a certain amount of electricity from renewable producers would be one way to get around that problem, he said.

“The renewable energy resource here, both solar and wind, is incredible — and it’s largely untapped,” Raynolds said. “We have a growing demand for electricity in this province, and it would be really nice to ensure that a portion of that portfolio, and a meaningful portion, is from renewable energy.”

An Alberta Energy presentation at the National Renewable Energy Forum last spring showed coal and natural gas currently account for 89 per cent of Alberta’s electricity, while wind accounts for four per cent, followed by hydro and biofuels and three per cent each. The final one per cent is categorized as “other.”

Electricity provider Enmax is supportive of all types of generation, said spokesperson Doris Kaufmann Woodcock, adding there is a place for renewables within Alberta’s current system. However, she said the company was pleased to see the government use the words “market-based” when it referenced the issue in the throne speech.

“(These words) signal to us that consumers will continue to have the choice to pay the costs of alternate and renewable electricity, rather than receive any significant level of government subsidy or see a change in our electricity market design to treat alternate and renewable electricity differently than other types of power generation,” she said in an e-mail.

[email protected]

© Copyright (c) The Calgary Herald
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RCMP probe urged into power plant scandal

By Darcy Henton, Calgary Herald

March 4, 2014

EDMONTON — An Alberta Opposition MLA has called for an RCMP investigation into the alleged manipulation of the deregulated electricity market by the province’s largest power plant owner while another questioned the PC government about its “new Wild West approach” to regulating the market.

Wildrose electricity critic Joe Anglin told the Alberta legislature Tuesday police should investigate the strategy allegedly employed by TransAlta Corp. to shut down its generating plants during periods of peak demand to drive up power prices in 2010 and 2011.

He questioned why Alberta’s electricity watchdog, the Market Surveillance Administrator, was conducting the probe into the allegations.

“Given that the MSA allegations are, in effect, allegations of fraud, theft, destruction of evidence — all of which are criminal in nature — will this government ask the RCMP to investigate and file criminal charges as necessary and hold these companies and individuals to account?” he asked the Redford government during the first question period of the spring session.

TransAlta has denied the allegations and the matter will be reviewed by the Alberta Utilities Commission.

Donna Kennedy-Glans, associate minister of electricity, said RCMP will decide what they do and pointed out the allegations are now before the AUC, the quasi-judicial body that oversees Canada’s only fully-deregulated electricity market.

“We cannot prejudice the outcome of this case,” she said.

But Liberal Calgary-Buffalo MLA Kent Hehr questioned whether the utility will be found in violation of market regulations since the rules currently allow withholding electricity from the market to increase profits.

“Was the MSA acting on government instructions when it adopted the new Wild West approach to market surveillance?” he asked.

“When the MSA was operating its own policy and procedures, which clearly said that economic withholding is a good thing for these companies to do, why didn’t the government step in and say: ‘This is ridiculous to allow corporations to be gouging Albertans on their power bill?’ ”

Kennedy-Glans said if the government interfered every time there was an allegation about corporate activity, “we’d be awfully busy.”

The issue was raised initially in the legislature by PC Stony Plain MLA Ken Lemke, who said his constituents want to know “What the heck is going on?”

“If the AUC finds that the market manipulation was happening, how is that going to help consumers who have overpaid for electricity?” he asked.

Kennedy-Glans said protecting consumers is a priority for her government.

“If market manipulation did happen, the government has given the AUC the authority to levy a penalty of up to $1 million a day, and as well they can claw back any economic benefits the AUC determines resulted from that behaviour,” she said.

“If the AUC levies a fine, this government will ensure that those funds are directed to consumers.”

TransAlta spokeswoman Stacey Hatcher said the utility has spent three years trying to resolve a dispute with the MSA about the market guidelines and the retroactive application of the rules and the place to do it is in front of the market regulator.

“The right arena and the right authority is the AUC,” Hatcher said in an email Tuesday.

TransAlta and other energy producers followed the guidelines set by the MSA for taking units off-line, Hatcher said.

The company and parties named in the investigation have filed complaints with the AUC over the watchdog agency’s conduct in investigating the matter.

“We’ve asked the AUC for a hearing to find out why the rules were not clear, why the rules changed, and why new rules are being applied retroactively, and selectively to TransAlta,” she said.

[email protected]

© Copyright (c) The Calgary Herald
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TransAlta officials approved plant shutdowns, documents show

 By Darcy Henton, Calgary Herald March 1, 2014
EDMONTON — Top executives at TransAlta approved the strategy of shutting down power plants temporarily to drive up electricity prices for millions of dollars in profits — and company officials congratulated each other about how well it was working, according to documents filed with the provincial electricity regulator.

Three TransAlta vice-presidents, including the vice-president of regulatory and legal affairs, approved a portfolio bidding strategy in November 2010 to stage discretionary plant outages during peak periods to drive up the price of electricity, the market watchdog alleges in documents filed to the Alberta Utilities Commission (AUC) this week.

None of the allegations have been proven and TransAlta denies any wrongdoing. The matter has yet to be heard and adjudicated by the AUC.

“We’re looking forward to a full and fair hearing from the AUC,” TransAlta spokeswoman Stacey Hatcher told the Herald this week, saying plant shutdowns were all for maintenance, operations or safety reasons.

“We do stand behind our employees and we do stand behind our conduct and we will defend it.”

Alberta’s Market Surveillance Administrator (MSA) alleges that four times in 2010 and 2011, TransAlta deliberately shut down major coal-fired generators, usually at the supper hour — the super peak — on extremely cold winter days, to enhance their profits through trades and sales of electricity from other plants they controlled.

Shutdowns of three TransAlta plants in December 2010 garnered a $6.69-million profit alone — even taking into account penalties TransAlta had to pay the utilities that owned the rights to the power it produced.

When three plants went down Dec. 14, 2010, the electricity price spiked to $992.25, just short of the maximum.

TransAlta officials congratulated each other in e-mails when the numbers began rolling in.

One of the authors of the strategy, Nathan Kaiser, applauded the “great work” by plant managers on their co-ordinated effort in taking the plants down at the same time.

“All three of these outages were discretionary and all three plant managers worked with us on the timing,” Kaiser stated in an e-mail, quoted in the MSA documents.

“It means juggling schedules and moving into position faster than they might have otherwise, but we received full support through the process. Great Work!”

A followup memo noted that the daily price more than tripled after the units were taken off-line.

The next TransAlta discretionary shutdown in February 2011 triggered an energy emergency alert in which the Alberta Electricity System Operator had to call on all other available generators to supply electricity to the grid to meet the demand to avoid rolling blackouts.

“The MSA concludes that TransAlta disrupted or impaired the safety or reliability of the interconnected system by scheduling a discretionary outage during a time frame where supply was already low and demand was high,” say the documents filed with the commission.

The outage caused the daily price to reach an average of $618 per megawatt-hour — the second-most expensive day for power consumers in Alberta history.

Documents allege the shutdown garnered TransAlta nearly $8.5 million over just three days.

When TransAlta took its plants and their committed power off-line, it left their competitors scrambling to purchase electricity from other sources at a price often higher than what they were selling it to consumers, the documents say.

The documents refer to emails from employees about what they should tell Enmax, which owned the rights to the power at one shutdown plant, “to get them off our back.”

TransAlta contends in its written response to the watchdog’s allegations that its actions were not prohibited under the market rules.

It claims the MSA initially portrayed TransAlta’s conduct as acceptable, then later called it “completely offside.”

“This regulatory about-face has created an untenable position for TransAlta and other stakeholders and has created a circumstance best described as a regulatory minefield that TransAlta has been led into,” TransAlta states.

It charges the MSA should have been providing guidance rather than filing charges with the AUC.

Associate minister of electricity Donna Kennedy-Glans said she has faith in both the MSA and AUC to police and regulate Canada’s only deregulated electricity market.

“We can’t prejudge the outcome of this case. It’s the AUC’s responsibility to listen to these arguments,” she said.

“I respect their qualifications to do that. The AUC will have to deliver the answers to those questions. They are important questions that need clarity.”

Wildrose critic Joe Anglin said he doesn’t accept the argument that shutting down power plants during peak demand periods to drive up prices for bigger profits is allowable conduct in the market.

“It is wrong under any rules,” he said. “I’m saying it is not right to gouge Albertans — and they know it’s wrong.”

NDP Leader Brian Mason said he has little faith in the MSA investigation or the AUC’s ability to adjudicate the matter.

“They are basically trying to manage a system that’s virtually unmanageable,” Mason said.

Alberta Party Leader Greg Clark said it appears the provincial government needs to give the MSA more teeth, and the ability to levy larger fines when necessary.

“If we’re going to have a deregulated system, we absolutely have to have a very stringent regulator with the willingness to enforce those rules,” Clark said.

In Calgary, Kaiser’s lawyer Steven Leitl questioned the motive behind the MSA actions.

“They are focusing on a very narrow time frame of alleged conduct that occurred in 2010 and very early in 2011,” he said Friday.

“They are not alleging any improper conduct by anybody since that time so this has nothing to do with correcting any behaviour that’s ongoing today. This is an isolated incident in the past.”

He denied his client did anything wrong and said he will contest the MSA’s authority to investigate him.

The MSA launched an investigation after receiving a complaint on Feb. 25, 2011, from an unnamed market participant and began asking TransAlta for its records two weeks later.

However, it didn’t get its hands on many key documents, including the shutdown strategy memo until two years later. It finally received the Alberta Portfolio Bidding Business Case Executive Summary on July 19, 2013.

Computer hard drives of key players, including Kaiser and head trader Scott Connelly, were either deleted or lost, according to MSA’s filed documents.

TransAlta refused to release another 850 documents, which it claimed are privileged, and a court has been asked to rule on whether they have to be turned over.

— With files from Chris Varcoe, Calgary Herald

[email protected]

© Copyright (c) The Calgary Herald
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Transmission fees will hit city power rates

By Mabell, Dave on January 14, 2014.

Dave Mabell

LETHBRIDGE HERALD

[email protected]

Think you’re paying too much for electricity now? Things are only going to get worse, warns Mayor Chris Spearman.

“This is just the tip of the iceberg ” he told city council members Monday, after a detailed briefing from the city’s electrical utility manager.

Alberta’s electrical transmission costs have doubled over the last five years, manager Otto Lenz pointed out.

“And transmission charges could double again in the next five years,” he predicted.

With Lethbridge power bills expected to increase as much as 6.3 per cent per year, Lenz told council three of the city’s largest power users are already hoping to build their own power stations and go “off grid.” The impact, at least in the short term, would be to download more costs on Lethbridge homeowners and small businesses.

The soaring costs of power transmission, he said, are a result of the Conservative government’s decision to build two high-voltage transmission lines in central Alberta. They’ll cost $2 billion, he said, and the government has ruled ordinary Albertans should pay for their construction instead of the companies’ investors.

The two north-south lines’ capacity will be far in excess of need, Lenz said. They’ll be of little benefit to Lethbridge-area customers.

“It’s like running a Via Rail train between Coaldale and Lethbridge, for one passenger.”

Lethbridge officials have often made that point during presentations to the government-appointed energy regulators, he said.

“It’s fallen on deaf ears.”

Responding to council members’ questions, Lenz said while large, power-hungry companies are allowed to generate their own power, the city’s electrical utility is not. Yet Calgary and Edmonton are permitted to own large electric utilities which are allowed to generate.

Medicine Hat has to abide by almost none of the regulations that hamstring Lethbridge, he added. But Lethbridge, as a “wire services provider,” is required to provide service to local customers who do not want to sign a contract with Enmax or one of its retail competitors.

While it’s intended to operate on a break-even basis, he said the utility has lost as much as $2.8 million on those customers one year – when power prices spiked after a train derailed into Lake Wabamun, site of a major power plant west of Edmonton.

Year-end results for 2013 were a loss of about $1.5 million, he said, due to unexpected hikes in transmission charges set by the Alberta Electrical System Operator. The utility transferred $9.7 million to the city’s coffers, however, as a return on the city’s investment in electrical facilities.

In the power distribution tariff proposed for 2014, Lenz said the utility could resume a break-even course despite slight reductions to access fees for distribution.

A typical homeowner using 650 kilowatt-hours could see the bill rise from $112.66 to $117.64 per month, he estimated. A large retailer using about 35,000 kilovolts would see last year’s $5,472 bill increase to $5,841 per month.

The city recently created a higher-impact residential rate, Lenz said, in response to some owners’ decisions to use heat pumps for geothermal heating, or plug-in electric cars. Their monthly bills could advance to $466 for 3,500 kilowatt hours, up from $446 last year.

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