Notley stands by NDP’s handling of power deals
Premier fires back at critics upset about controversial contract saga
Premier Rachel Notley said Thursday that critics of her NDP government’s handling of power contracts are off-base in their attacks.
The government this summer launched legal action to declare void a provision in power purchase arrangement (PPA) regulations that allowed companies to cancel money-losing contracts.
And in recent weeks the NDP has refused to rule out legislation that would retroactively nullify the provisions.
That’s prompted a furious response from Calgary, where Mayor Naheed Nenshi has described the idea as “nuts” and chamber of commerce president Adam Legge suggested it would be a “banana republic” move that would scare away investment.
Speaking to reporters following a speech at the Alberta Association of Municipal Districts, Notley rejected the criticisms. “I would suggest Adam Legge is not fully informed on what’s been going on with respect to this file up to this point,” she said.
“With respect to Mayor Nenshi, he’s taking a position with respect to one particular company that has a relationship with the City of Calgary. And that’s fine, sometimes people are going to have to agree to disagree.”
Enmax, owned by the City of Calgary, is one of four companies that have returned PPAs for coalfired electricity to the Balancing Pool using a provision that allows companies to terminate the contracts if any change in law makes the deals “more unprofitable.”
The companies cite the government’s Jan. 1 increase in the carbon levy on large emitters as the cause.
The government maintains the “more unprofitable” clause was unlawfully enacted under the previous Progressive Conservative government at the behest of the defunct and discredited Enron Corp.
It says that returning the contracts will cost Albertans an additional $2 billion on their power bills by 2020 when the PPAs expire.
On Thursday, Notley again would not rule out retroactive changes to the law, though she said the government would not make that step on any other legislation.
“My view is that on behalf of all people of Alberta, we need to make a decision that is going to result in the best financial outcome for all Albertans,” she said.
The premier also insisted that she does not believe the government’s actions will hurt its cause as it tries to attract an estimated $18 billion to $25 billion in investment for renewable and natural gas facilities as it phases out coal-fired power by 2030.
But Legge stuck to his guns, dismissing Notley’s argument that he’s ill-informed on the issue.
“Even musing about potential retroactive legislation has already done damage to Alberta’s reputation as a place for investment,” he said.
“She’s trying to making it out to be a complex issue, the issue I’m talking about is very simple. When you make a commitment or an agreement, you keep it.”
Wildrose Leader Brian Jean said the government is treading a dangerous path. “The rule of law obviously has to be dominant on governments when they’re making decisions on contracts,” he said.