Premier Ed Stelmach did not mince words this week when he dismissed as “a bunch of crap” allegations the government colluded with utility companies to create billions in taxpayer-funded power transmission projects. The seriousness of the claims, coupled with the government’s unimpressive handling of the heavy-handed Bill 50 and the Rimbey spy scandal before that, raises more questions about the need for transmission lines that stand to zap Albertans in the wallet.
Calgary-owned utility company Enmax has been a vocal opponent of the recently approved Bill 50, the Electric Statutes Amendment Act, which allows the Stelmach government to fast-track “critically needed” power transmission projects by eliminating the legal requirement for public hearings. Enmax’s opposition took a shocking turn on Wednesday when chief executive Gary Holden accused the government of holding secret closed-door meetings with power companies to divvy up billions in transmission projects. Holden claims the government offered to allow electricity firms to build the projects of their choice, with no worries of interference from regulators.
The allegations set off a political firestorm. Alberta Liberal leader David Swann said it’s up to the government to prove it’s not in the wrong, and called for an ethics probe. Newly minted Wildrose Alliance leader Danielle Smith, herself a vocal critic of Bill 50, said proposed transmission projects should go before the Alberta Utilities Commission. Stelmach, however, immediately dismissed Holden’s claims, as did Energy Minister Mel Knight, who produced an agenda of what was actually discussed at meetings with industry players.
Whether the allegations are true or not, it’s clear the Stelmach government has won few friends with Bill 50 and, despite its approval last month, still has a fight on its hands. Albertans have not forgotten what happened in Rimbey when the former Energy and Utilities Board spied and collected personal information about opponents of a proposed 500-kilovolt transmission line. Though the government was not directly involved and reacted by scrapping the board, not long after, it created Bill 50.
Bill 50 allows the government to fast-track $14.5 billion in electricity upgrades over the next eight years, including five transmission projects. The cost will be fully funded by Alberta taxpayers via utility bill hikes that are expected to total $175 a year. While the government claims these projects are critically needed, the public has been given little proof outside assurances from the premier and his cabinet. Knight says our current transmission system is so antiquated and inefficient, more than $220 million in electricity is wasted every year. Meanwhile, one of the projects, a proposed $3.1-billion line between Edmonton and Calgary, has been called “overkill” by an engineering team at the University of Calgary.
Energy use may be setting records, as was the case during this week’s cold snap, however without clear, coherent facts and hard numbers it’s hard to know whether Alberta really is in danger of widespread brownouts as the government claims. Taxpayers deserve more information via public hearings, and fewer patronizing assurances from the Stelmach government. As for Enmax’s allegations, it’s important to bear in mind they come from a profit-driven corporation whose plans for local power generation are at odds with the government’s policy, however the seriousness of the accusation warrants further study from the ethics commissioner. With everything at stake, the public deserves answers.
