The NDP government will be paying $1.36 billion to three power producers to make up for the losses they’ll feel as the province phases out coal-fired electricity. Environment Minister Shannon Phillips says TransAlta Corporation, Capital Power Corp, and Atco will be paid a total of $97 million a year over the next 14 years.
The funds will be paid out of the carbon tax, but the province maintains power bills won’t go up. As part of the deal, the companies will keep their headquarters in Alberta, support the communities that will be affected by the shutdown, and continue to invest in the province.
All but six coal-fired electricity plants are set to shutter by 2030. Their power will be replaced by natural gas and a mix of renewable energy.