Calgary Mayor Naheed Nenshi is tearing into the provincial government after hearing reports of legislation in the works to go back and change power purchase agreements.
The NDP has filed a lawsuit against power companies that cancelled their contracts early, which they argue was written into the contracts themselves.
Nenshi is not mincing his words when it comes to his disapproval of such a move.
“If I were giving them advice on this, I would say ‘Holy Cannoli! Are you really thinking about doing this in order to avoid the consequences that you, yourself, filed?'”
Nenshi doesn’t like the thought of governments being able to go back and change contracts like that.
“Man, oh man that is a dangerous precedent, the most dangerous precedent I can imagine any government setting, particularly when they’re about to go into the market looking for participants in the renewable option, and in restructuring the electricity grid.”
He says doing so would send the message to investors that Alberta is “closed for business.”
The province has gone to court after power companies such as Enmax, Trans Alta and Capital power used an opt out clause in their power purchase agreements, in response to the Alberta government introducing new carbon pricing legislation. The clause allows those companies to opt-out when legislation makes the contracts unprofitable.
In response to rumours about the retroactive legislation, Notley would only say the government is looking at all of its options. (kdr, chqr)