Edmonton (September 9, 2016) – Using publicly available information the Alberta Party Opposition has calculated that the Balancing Pool will be out of money by the end of this year.
“The Government was unprepared for the impact of their climate change plan would bring and it’s Albertans, through the Balancing Pool, that will pay the price,” said Clark. “The government is trying to hide their ineptitude through an ill-considered lawsuit, drawing out the process, handcuffing the Balancing Pool and causing greater harm to both industry and everyday Albertans.
“The Government needs to drop this lawsuit and come up with a plan to resolve this problem.”
Clark said the Government should accept the return of Power Purchase Agreements and allow the Balancing Pool to run the plants as economically as possible to minimize the cost to Albertans.
“Our analysis shows the Government’s lawsuit has put the Balancing Pool on a fast path to bankruptcy,” said Clark. “If they allowed the Balancing Pool to accept the PPAs they would cancel some and operate the remainder as economically as possible, reducing losses far below the government’s inflated cost estimates.”
“Bankrupting the Balancing Pool will likely lead to more lawsuits and it will certainly add more debt,” said Clark.
“The Government is thinking politics, not governance, and Albertans continue to pay the price through higher electricity bills and an unstable investment climate. There’s still time for the Government to do the right thing”.
The Balancing Pool Financial Forecast Backgrounder may found here.
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