Quote:
Originally Posted by Slava
I guess I just can't help myself but to chime in. This is exactly the way I understand it though. These PPAs have been around for years, and they were sort of working as they were supposed to. But with increased cogeneration and wind (in particular) the PPAs aren't profitable anymore. They weren't profitable before the Carbon tax. Essentially the companies are using this as a "change in law" which makes it cool for them to walk away. It will be interesting to see how the courts decide on that.
The other thing to recognize here is that regardless of who "wins" the same guys foot the bill at the end of the day. If the lawsuit is successful then we pay through increased utility bills. If the lawsuit isn't successful then we pay because municipal entities like Enmax pay.
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I don't really buy the decline in market argument. The difference in carbon tax is 1000%. It's costing Enmax 15 million now and will grow to 160 million in two years. If that isn't a significant change in the regulatory environment then literally nothing is.