Alberta government seeks court ruling on constitutionality of Ottawa’s clean electricity plan

Alberta’s government is seeking a court ruling on the constitutionality of Ottawa’s clean electricity grid regulations.

The regulations, finalized late last year, lay out a plan to decarbonize electricity grids across Canada by 2050.

Premier Danielle Smith, who invoked her controversial sovereignty act for the first time in 2023 against draft versions of the regulations that aimed for a clean grid by 2035, says regardless of the timeline, Ottawa’s goals are too far-fetched and are a breach of provincial jurisdiction.

At a news conference Thursday announcing the court action, Smith said the regulations will only harm the affordability and reliability of Alberta’s electricity grid, which is largely powered through natural gas.

“This is about protecting the lives and livelihoods of Albertans,” Smith said, saying the regulations would increase electricity costs by over 30 per cent.

“We will not accept the reckless and dangerous policies — policies that will harm our economy, stifle our energy industry, jeopardize the reliability of our electricity grid and raise electricity prices for Albertans.”

Share this on X Click to share quote on X: "We will not accept the reckless and dangerous policies — policies that will harm our economy, stifle our energy industry, jeopardize the reliability of our electricity grid and raise electricity prices for Albertans."

Abandoning the regulations was also one of nine demands Smith laid out for the next federal government in advance of last Monday’s election. She said Thursday she’s received no indication that a new government under Prime Minister Mark Carney will take action on the file.

“It depends very much on whether we have pragmatic Bank of Canada governor Mark Carney as our prime minister, or whether we have environmental extremist, keep it in the ground, phase out fossil fuels… Mark Carney as prime minister,” she said.

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“I don’t know the answer to that yet.”

Share this on X Click to share quote on X: "I don't know the answer to that yet."

Carney’s office did not respond to a request for comment.

Alberta Justice Minister Mickey Amery, speaking alongside Smith, said the province is referring the question of the constitutionality of the regulations to the Alberta Court of Appeal.

He said a schedule with the court needs to be determined before its known when a decision on the case can be expected.

1:56 Net-zero electricity target pushed to 2050 as Alberta vows legal challenge

Alberta NDP Leader Naheed Nenshi told reporters Smith seems more concerned about fighting with Ottawa than striking a deal beneficial for both levels of government.

“Three days in with no minister in place, no one to fight against, she launches this lawsuit,” Nenshi said, referring to how Carney has yet to appoint a new cabinet.

“If she sat down with the prime minister and made a deal, we would have proper regulations that would bring certainty for investment to Alberta within the next month. Instead, she’s going to take years.”

Nenshi did say he also thinks the federal regulations would be punishing for Alberta, but said Smith’s insistence on taking Ottawa to court rather than negotiating will only make that punishment worse.

“We heard (Carney) talk about Canada as a clean and conventional energy superpower,” Nenshi said.

“So rather than insulting him and saying, ‘You’re lying,’ why not give him an opportunity to prove that he wasn’t lying?”

Share this on X Click to share quote on X: "So rather than insulting him and saying, 'You're lying,' why not give him an opportunity to prove that he wasn't lying?"

Jason Wang, a senior electricity analyst with the clean energy think tank the Pembina Institute, said Alberta is right to be concerned about the affordability and reliability of its energy grid, but should act on those concerns by expanding opportunities for renewable electricity to come online.

“Alberta is swimming against the tide by focusing on gas to run its grid long into the future,” Wang wrote in a March report.

“This erodes its attractiveness as an investment destination — given that we know demand for low-cost, clean power is going to keep growing as new power-hungry industries, like data centres, look for places to set up business.”

Share this on X Click to share quote on X: "This erodes its attractiveness as an investment destination — given that we know demand for low-cost, clean power is going to keep growing as new power-hungry industries, like data centres, look for places to set up business."

Wang said in a statement Thursday that the finalized regulations addressed Alberta’s concerns about reliability, as carbon intensity thresholds were increased as was the length of time that newly built gas-powered generators can remain online.

Smith argued Thursday those concessions mean little, because Ottawa is still overstepping.

“It violates the Constitution, and we’re going to argue that vigorously in court,” she said.