City to buy electricity from Calgary

Deal with Enmax will save $1M over contract with Capital Power

The City of Edmonton has reached a deal that for the first time will see it buy its electricity from a non-Edmonton company, officials said Tuesday.

Under a contract that started Jan. 1, power for city buildings, street lights, traffic signals and the LRT will be supplied by Enmax, owned by the City of Calgary.

Electricity had been provided by Capital Power, an Edmonton-based generating company spun off by Epcor in 2009 in which the cityowned utility still holds about 19 per cent of the shares.

The new arrangement, the result of a public tender, is expected to cost Edmonton about $1 million less annually than it would have spent under the old contract, facility maintenance services director Paul Specht said.

He estimated 2014 power consumption will cost about $39.1 million, up from $38.4 million in 2012 (the latest figure available) as two new recreation centres and the NAIT LRT begin operating.

The contract also allows the city to create and sell its own electricity from such green sources as solar panels, possibly mounted on city buildings or open space, and cogeneration using waste heat from boilers, Specht said.

The main advantage of this would be reducing greenhouse gas emissions rather than making a profit, he said.

“I anticipate in the coming years we will take advantage of technology enhancements.”

As well, Enmax will provide inexpensive advice on such issues as energy conservation

“We make have the best to procurement decisions ...”

MAYOR DON IVESON

and education, he said.

The change won’t affect Epcor’s $141-million annual dividend payment to the city, finance officials said.

Mayor Don Iveson said he’s not concerned changing electricity suppliers will hurt the firm.

“When we go out to the market, our interest first and foremost is getting a great deal for the citizens of Edmonton … We have to make the best procurement decisions in the interest of the city and look for the best value,” he said.

“The company is in great shape. I don’t think this impacts them.”