Calgary (February 8, 2017) The NDP’s mismanagement of electricity power purchase arrangements cost the provincial Balancing Pool $1.4 billion in the first nine months of 2016, says Alberta Party leader Greg Clark. The latest Balancing Pool interim report shows the Balancing Pool Deferral Account went from a $774 million dollar surplus to a $644 million loss from January 1 to September 30, 2016. The full report can be found here.
“This massive loss is a direct result of the NDP’s lack understanding of the impact of their policy decisions,” said Clark. “The losses can be directly tied to the NDs decision to increase the carbon tax on large emitters, which made power purchase arrangements more unprofitable. The NDs had options to avoid this, but instead pursued an aggressive and ill-conceived lawsuit against PPA owners.”
“Believe it or not, these losses could be worse. The Balancing Pool has added a $100 annual charge on all electricity bills to cover off some of these expenses. The $644 million dollar loss is over and above this charge. It’s outrageous.”
Clark said legislative changes passed last fall put taxpayers on the hook for Balancing Pool losses.
“The NDP doubled-down by passing Bill 34, which enabled the government to borrow an unlimited amount to backstop Balancing Pool losses,” said Clark. “There’s no telling how deep the losses will go, but it will add substantially to Alberta’s debt and debt servicing costs.”
“The level of mismanagement of the electricity file is mind-blowing. It’s nothing short of a scandal and Albertans will hold the NDP accountable at the polls.”
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