The Globe and Mail reports in its Wednesday edition that Alberta's NDP government has announced it is taking several companies to court to stop them from using the ominously named "Enron clause" to offload up to $2-billion worth of money-losing contracts onto consumers.
The Globe's Jeffrey Jones writes that Premier Rachel Notley contends the language was inserted into the contracts, known as power purchase arrangements (PPAs), at the behest of Enron, on the sly. The company was among the first bidders for a contract.
That was 16 years ago, when then-premier Ralph Klein's Progressive Conservatives first deregulated the electricity market.
Several holders of those contracts have used the language to walk away from them since Ms. Notley began upping a carbon levy on big emitters last year. After broad consultation under the Klein government, the PPA fine print stated that companies could back out of the 20-year deals if government policies made them unprofitable. According to the NDP, the phrase "or more unprofitable" was added after "unprofitable" the day before the first auction of PPAs in August, 2000, in a "backroom deal" with no consultation or public disclosure. Named are TransCanada, Atco and Capital Power.
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