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Originally Posted by Fozzie_DeBear
Honest questions...
1-Were these contracts established under the NDP or the previous Gov?
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The PCs, but that is irrelevant. They were entered into by the Government of Alberta.
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2-Is this accurate? If the contracts terminate, the taxpayers have to pick up the tab. Essentially the downside risk associated with the contracts was socialized...
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That is half the picture yes. The upside benefit was also socialized - the Balancing Pool has paid over $4 billion in rebates to taxpayers since 2006 because it was able to sell at rates higher than the cost of generation.
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3-If these contracts were honoured...what would the impact on energy prices be in Alberta?
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Others with better understanding than I have already debated that in this thread. Go back a few pages. The tl;dr as I understand it is, "it depends". Competition and race to the bottom could make it harder to raise the rates too much. At the same time, we own Enmax. So its losses are our losses. As Calgary taxpayers, we're screwed either way.