The provincial government is taking some of the biggest energy companies operating in Alberta to court over what it says is an secret and illegal clause allowing them to back out of power purchase agreements to buy from coal-powered plants early. Deputy Premier Sarah Hoffman says the government is looking to have the clause lobbied for by Enron back in 2000 removed.
“Our government believes that Albertans should not be on the hook for secret, back room deals that were created between companies like Enron and the previous PC government.”
With worsening market conditions, four companies have applied to terminate their agreements early. If the legal challenge fails, Hoffman says taxpayers could be on the hook for up to $2 billion.
Written by Chris Hunter