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The NDP government is reviewing a move by Enmax to unload a money-losing power contract onto ratepayers, Premier Rachel Notley says.

Notley said her government wants to determine whether the Calgary utility can terminate a Power Purchase Arrangement with a coal-fired power plant on the grounds that an increase in the carbon levy made it no longer profitable.

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“We’re reviewing the announcement made by Enmax back in December to determine whether or not the criteria that are necessary to revoke the PPA actually are in play,” she said. “Certainly, the argument is that it is related to (carbon levy) changes, but really there’s a lot to be said for the fact that it’s actually attributable to the overall low price of the energy.”

Enmax said last December that historically low power prices and the NDP hike in the carbon tax for heavy carbon emitters made the deal unprofitable.

“With low power prices in the wholesale market and changes to the Specified Gas Emitters Regulation announced in June 2015, the Battle River PPA became unprofitable for Enmax,” the utility said at the time. “Based on these market conditions, Enmax made the business decision to exercise its right under the PPA to terminate the agreement, effective January 1.”