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The Alberta government plans to borrow more than $2 billion over four years to cover losses from power contracts, despite claims there are cheaper alternatives.

Four companies that bought coal-fired electricity from generators and resold it to the grid under the deregulated market have walked away from these power purchase agreements.

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They claimed the deals are no longer attractive after the government raised the carbon levy on large industrial emitters last year, increasing their costs at a time they were already losing money.

The companies transferred the money-losing deals to the Balancing Pool, a provincial agency that manages power agreements. With low electricity prices, the agency can’t make enough money selling the power to cover its expenses.

Last fall, the government authorized the Alberta Balancing Pool to borrow money to cover its losses, but the province didn’t disclose how much it would have to borrow at the time.