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Originally Posted by Fozzie_DeBear
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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To build upon some of the answers to this, the downside risk was not completely socialized. A trigger was built in to enable the downside risk to be socialized. That trigger was the government changing the rules to make the contracts less profitable.
It's not like all these PPA holders could just dump crappy contracts into the balancing pool (i.e. socialize them) as they see fit.
The people's government chose pull that trigger when it increased the carbon tax on emitters.