Stelmach dismisses Bill 50 furor

CALGARY – Enmax’s allegations that government conspired with power companies to divvy up billions of dollars worth of questionable transmission projects is "a bunch of crap," Premier Ed Stelmach said Wednesday, as opposition parties and the city-owned utility demanded an investigation into the matter.

Gary Holden, Enmax’s chief executive, is accusing the Stelmach government of colluding with Alberta’s major electricity players to construct $14.5-billion worth of taxpayer-funded transmission lines.

He claims the government, through its controversial Bill 50 on power line transmission, offered at meetings earlier this year to let the companies build the projects of their choice, regardless of need or regulatory approval.

But the alle gations were rebuffed Wednesday by the premier and Energy Minister Mel Knight, who also rejected calls for the province to launch an inquiry into the matter.

"It’s actually a bunch of crap," Stelmach said about Holden’s accusations. "That’s totally wrong."

Alberta’s record power consumption on Monday is further evidence that additional transmission is desperately needed, Stelmach said.

"This is critical and we’ve got to move on it very quickly," he added.

The energy minister, who released a rough agenda of what was discussed at the meetings and the players involved, said there was no "carte blanche" when the province and Alberta Electric System Operator were determining critical transmission upgrades.

Knight rejected Holden’s claims that power companies were told they could sidestep the provincial regulator — the Alberta Utilities Commission — and were promised the power line projects of their choice.

"This again is a complete overreaction to what would actually have taken place at the time. He (Holden) has his agenda and he wants to move things in a certain direction and that’s fine."

But Holden, a vocal opponent to Bill 50, alleges the billions in transmission projects and commercial benefits for industry were originally offered up by the province during two meetings, in February and March.

Senior officials from the Energy Department, AESO and power companies attended the talks, where industry was told it had two weeks to divvy up the projects.

Holden said he was very troubled with the planned projects because the need wasn’t demonstrated, they weren’t being contested by the provincial regulator and were not in the overall public interest.

The AESO’s 10-year plan soared from around $3.5 billion to $14.5 billion in barely a year, he noted, which sparked more concern. The projects will be completely funded by taxpayers and the costs will ultimately trickle down to consumers.

The proposal breached Enmax’s ethical guidelines and the company later asked Justice Minister Alison Redford to investigate, although she told Holden it was an inappropriate request and the matter was better handled through other channels.

On Wednesday, Holden said the province’s version of events — and denouncing of Enmax’s claims — was "predictable."

"But that (government) version is certainly not what happened that day," he maintained. "In the fullness of time, everybody will realize that deciding who builds what, and setting aside the regulatory process, is fundamentally flawed. Enmax will be recognized as representing the consumer."

Other companies at the meetings, such as Calgary-based AltaLink, have dismissed Holden’s version.

Mayor Dave Bronconnier, meanwhile, said he hasn’t discussed the issue with Holden and doesn’t have any first-hand knowledge of it, although he said "it’s a sad day" to see commercial entities vent their frustrations in the newspaper.

Many of the projects initially identified by the province were eventually included in its contentious Bill 50, which expedites construction of "critical" new power line transmission, but eliminates the legal requirement for the AUC to hold public hearings on the need for the transmission lines.

The bill, which just passed through the legislature, specifically fast-tracks five electricity transmission projects worth $8.1 billion that will add nearly $100 a year to people’s power bills. All told, additional transmission upgrades in the queue total $14.5 billion over the next eight years.

Wildrose Alliance Leader Danielle Smith said Holden’s allegations fare significant and warrant an investigation. "If the allegations being put forward by the Enmax CEO are true, it’s very, very serious and I think it casts a pall over the entire process they used to pass that bill," she said.

Smith, whose party is one of many organizations that lobbied against Bill 50, said proposed transmission projects should be halted and sent to the AUC for consideration.

Liberal Leader David Swann, who’s also asked for a review the matter, said Enmax’s claims highlight the "credibility gap" facing the government and that the province must clean it up.

"They’re the ones that have to prove there was not a secret deal."

The premier, however, said government has no role investigating the issue and it’s up to the ethics commissioner to review it, if he wishes.

jfekete@theherald.canwest.com