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The newly elected NDP government decided last year to hike the carbon levy on large greenhouse gas emitters such as coal-fired power plants, but now insists it wasn’t told the move could potentially trigger billion-dollar consequences for consumers.

How is this possible?

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That’s the $2-billion question everyone in the power industry — along with Calgary’s mayor and political opponents — is wondering about after the province launched an unprecedented lawsuit Monday.

Photo by Lyle Aspinall / Postmedia Network

“Had they done the climate change policy just slightly differently, they would have been able to avoid this trigger, so I’m pretty shocked we’re here,” Mayor Naheed Nenshi told reporters Wednesday. “I’m pretty shocked we’re going to have to spend millions on legal fees.”

The Notley government wants the courts to stop unprofitable power purchase arrangements (PPAs) being transferred from utilities to consumers through the Balancing Pool, a government-created entity.