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Originally Posted by OMG!WTF!
Royalties really are a totally different thing all together. No one is forcing companies to produce oil here. A PPA is an agreement to purchase power on our behalf. It would be like hiring Shell to make oil and then telling them we are going to increase the tax they pay by a 1000%. But they still have to make our oil. As it is, companies that don't like our current royalty regime or that don't like any future changes are free to do business elsewhere. Not so with PPA's.
Because it is fundamentally different, royalties are basically negotiations. Producers can and will leave if the government makes it unprofitable. They also will leave and not come back if these sort of shenanigans were common.
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I'm not sure I follow why a utility company is forced to do business here? Because they sign a PPA? A PPA is simply the contract to govern the purchasing of the power, it's a contract just like a Crown Agreement granting the right to win take and remove resources.
Are you saying these utilities have no other options (go to other jurisdictions to do business?) because again, why can't they? There are other deregulated power markets. Sorry just not sure I understand what you're getting at.