Electricity Deregulation - A Possible Solution

The two gentlemen you see here have written a couple of reports on electricity deregulation in Alberta. The Edmonton Journal did a story on those reports yesterday. Click here to have a look.

Don Peterson, left, and Keith Provost, both members of the deregulation committee of the Canadian Society of Senior Engineers, are calling Alberta's power deregulation program a colossal error.

It is hard for the Klein government to dismiss these guys as left wing nuts or communists - the usual treatment for those who critisize the Tory regime. Provost was chairman of the Alberta Electric Utilities Planning Council before he retired as vice-president of Atco Power after 35 years. Peterson, also an ex-Atco manager, leads the deregulation committee of the Society and does consulting work with an Edmonton engineering firm. These guys are credible and have no vested interests to support. They just want all Albertans, industry and individuals, to get the best deal when it comes to electricity.

Here are some quotes from the article.

Power deregulation cost Alberta $7.7 billion and killed its advantage in attracting energy-consuming industry -- and the penalty is still growing.

Virtually overnight Alberta's electricity service went from the most reliable, lowest-cost service in Canada to the most expensive and complicated energy-manipulation system imaginable.

It's a manipulated market. It's not a competitive market.

While deregulated power market operations are complex, its effects are simple -- price increases, Provost said. "Suppliers are well off. Users are paying," Peterson said.

As you might expect, the suppliers disagree. "Their scheme is a central planning system that would create "a massive conundrum," said Evan Bahry, executive director of the Independent Power Producers Society of Alberta referring to the solution proposed by Mr. Provost and Mr. Peterson.

Martha and Henry think we have one of those "massive conundrum" things operating right now that shovels money from the pockets of ordinary Albertan consumers into the hands of the power producers. We would like to see that stopped and Mr. Provost and Mr. Peterson have a credible plan to make that happen.

So. Our question for Premier Klein is:

Mr. Premier. You keep telling us that electricity deregulation is working. We all know it isn't every time we open our monthly power bill. According to the deregulation committee of the Canadian Society of Senior Engineers it has cost Albertans $7.7 billion so far. Albertans simply cannot afford this.

Should your government be re-elected, will you agree to implement a public consultation with power producers, distributors, retailers and consumers. The purpose would be to evaluate solutions to our electricity deregulation "conundrum" so that Alberta consumers can once again have reliable supplies of electricity at the lowest possible prices.