Alberta reviewing future of regulated rate option for electricity

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No final decisions on the program have been made, province says

Paula Duhatschek · CBC News · Posted: Mar 18, 2023 

A power line is pictured in Calgary. The price of electricity has soared in recent months. (Evelyne Asselin/CBC)

The future of Alberta's regulated rate option (RRO) for electricity is in question as it undergoes a provincial review — a move one economist says isn't surprising given how high rates have climbed in recent months, though he questions what the alternative might be. 

"If you get rid of the RRO … what is the default and how do you ensure that it's reasonable?" said Blake Shaffer, an assistant professor in the University of Calgary's economics department. 

In Alberta, the RRO is the default electricity option for consumers who don't want to sign a contract with a competitive retailer. It's also used by those who can't sign a contract because of certain barriers, such as a poor credit score or a lack of cash to pay an up-front deposit, said Shaffer. 

Rather than being locked into a fixed rate for a set period, customers on the RRO pay a monthly rate that's tied directly to the market price of electricity. 

• 6 things to know about your utility bill

That can mean customers see significant price swings on their monthly bills. In recent months, those prices have hit record highs. 

In December, regulated rates surpassed 20 cents per kilowatt hour and surged even higher this year, though customers on the RRO have recently been paying no more than 13.5 cents per kilowatt hour after the province brought in a temporary price cap. (Any costs over and above that cap have been deferred, and will have to be repaid eventually.)

Blake Shaffer is an assistant professor in the department of economics at the University of Calgary. He says many Albertans still use the RRO, but their ranks have declined in recent years. (University of Calgary)

Premier says rate could be phased out

Alberta Premier Danielle Smith said Saturday — on Corus Entertainment's Your Province, Your Premier radio program — that the regulated rate is the most volatile rate.

She said fixed income seniors, renters and newcomers are among the most affected by price fluctuations. 

"We've got to do something more to make sure that they have a lot more price stability. So we're going to be figuring out the best way to phase that rate out," Smith said. 

In a statement, the provincial government told CBC News it's now reviewing the RRO "as part of our ongoing work to explore ways to improve affordability and rate stability for Albertans."

"As part of this review, we will be working with industry and others to examine various options, including around the future of the RRO, to ensure the needs of Albertans are being met," said Andrea Farmer, a spokesperson for the Ministry of Affordability and Utilities.

She added that no final decisions on the RRO have yet been made. 

The province didn't specify what options are being considered, or what an alternative to the RRO could look like. 

The NDP's energy and natural gas critic, Kathleen Ganley, said in a statement the RRO plays an important role in making sure everyone has access to power, no matter their financial circumstances.

"Any changes to the RRO would require continued regulatory oversight of prices and the ability for Albertans with low credit to access affordable electricity," she said. 

'Has it served its purpose?'

A sign is pictured outside the Enmax Corporation building in Calgary. (David Bell/CBC)

Speaking at a recent conference, the head of Enmax Power agreed the RRO needs to be "seriously" looked at. 

"I don't think that there was ever the intention that we would have customers on the RRO as long as we have," said Jana Mosley, president of Enmax Power, during a panel discussion hosted by the Independent Power Producers Society of Alberta.

"We really do need to think seriously about, 'Has that served its purpose?'"

• Did Alberta overbuild its energy infrastructure? This critic thinks so, and it affects what you pay

Given the cost pressures consumers are facing, Janine Sullivan, president and CEO of FortisAlberta, said it's understandable the RRO is up for discussion. She noted it would likely be a complex program to phase out if the province decided to go that route. 

"We have over 330,000 customers on the RRO in our service area, so just the education and the transition of those customers from something like that into a different arrangement will be very complex," she said. 

Policy reform could help people get off RRO

While there are still many Albertans using the RRO, their ranks have declined in recent years, Shaffer said, with a particular drop in the last year as prices have skyrocketed. 

Currently, about 63 per cent of Alberta customers are on competitive retail electricity contracts and the other 37 per cent are on the RRO, according to the latest numbers from the Market Surveillance Administrator. 

Some have remained on the RRO because they don't have the credit score or the deposit money to sign a contract, Shaffer said. One simple way to reduce reliance on the RRO, he said, could be to reduce those barriers. 

"The government could really easily step in and say to the competitive retailers, 'Look, we will cover any non-bill payment that's needed, but we're going to make sure you allow people even with low credit to go and get their electricity from you," said Shaffer. 

Shaffer said this would likely reduce the amount of non-payment overall, as people with low credit scores or low incomes would have more stability in their monthly bills.

• Calgarians experience 'sticker shock' at increasing energy bills

"I'm actually confused as to why the government over the past two years hasn't moved to try to help folks get on to fixed rates by removing those credit barriers."

Shaffer hopes to see this policy change made sooner rather than later, as anyone still on the RRO after the temporary cap is lifted will be left to pay the deferred costs. 

The province said its review will continue through 2023. 

Visualizing California’s GDP Compared to Countries


March 18, 2023
By StatsPanda

Featured Creator
Article/Editing:
Aran Ali



California’s GDP Compared to Countries

Comedian Trevor Noah once said America is fifty little countries masquerading as one.

From an economic sense, this might carry some truth. When looking at the economic output of each state, especially the largest and wealthiest ones, they often compare to or even exceed the GDPs of entire nations.

To illustrate, this visual from StatsPanda looks at California’s $3.36 trillion GDP using data from The World Bank and compares it to 10 sizable country economies. Let’s take a closer look.
Sizing Up California’s GDP in 2021

California’s $3+ trillion GDP is an enormous figure in its own right, so it’s no surprise that it is larger than certain nations’ economic output.

But even when comparing with economies like Malaysia, Colombia, and Finland, all among the top 50 countries by GDP, California stands tall.

Country GDP (2021 USD)

Malaysia $372B
Hong Kong $369B
Vietnam $366B
Iran $359B
Pakistan $348B
Chile $317B
Colombia $314B
Finland $297B
Romania $284B
Czechia $281B

Total $3,307B

California $3,357B


What’s more, these 10 countries are quite densely populated, with a combined population of 653 million compared to California’s 39 million total.

A Closer Look At California’s Economy

What makes California’s GDP so vast and their economy so powerful?

Relative population is a big factor, as the state is the most populous in the U.S. with roughly 12% of the country’s population calling it home. But since California’s GDP makes up over 15% of the country’s economic output, there must be something else at work.

One key driver is the technology sector. Not only does Silicon Valley generate massive amounts of technological output, this also translates directly to wealth and economic activity. Many tech markets follow winner-take-all dynamics, bringing large revenues back to the state. In addition, smaller technology companies are frequently gobbled up by larger competitors, adding wealth back into the mix through M&A.

This might partly explain why California’s GDP is actually estimated to overtake Germany’s in the coming years and become the world’s 4th largest economy.

Banking complaints reached new records in 2022: report



Joey Chini
CTVNews.ca Writer-Producer
Published March 17, 2023 

Canada's Ombudsman for Banking Services and Investments (OBSI) says it responded to a record high of more than 10,000 public inquiries in 2022, and the number of fraud complaints rose dramatically year-over-year.

OBSI is a national and independent not-for-profit that deals with disputes between people and financial services. In its 2022 annual report, OBSI recorded a 40 per cent increase in public inquiries year-over-year. OBSI says the jump was mainly driven by banking complaints—which rose 56 per cent compared to 2021—while investment complaints increased by eight per cent.

OBSI says it opened 1,151 cases last year, also a new record high and an increase of six per cent from the last record set in 2021.

"These higher volumes continued a trend we have seen throughout the pandemic period, as Canadians, small businesses and financial services firms continue to cope with unprecedented economic challenges, increasing levels of financial stress, and increasing rates of financial fraud," said Sarah Bradley, Ombudsman and CEO at OBSI, in a news release accompanying the report.

RELATED LINKS

The Ombudsman for Banking Services and Investments' 2022 annual report.

BANKING CASES

People complaining about their bank accounted for 686 cases OBSI dealt with in 2022—a 33 per cent increase from 2021’s 514 cases.

Bradley says on top of economic pressures brought on by the COVID-19 pandemic, changes last year to financial consumer protections laws have also led to more complaints being brought to and addressed through the system.

More consumers than ever are making use of Canadian banks’ internal complaint-handling services to resolve their concerns and a record number are escalating their concerns to us for an independent expert review of their case,” Bradley said.

According to the report, fraud was the leading issue for complaints against banks in 2022. Thirty-one per cent of banking cases opened by OBSI were fraud-related, an increase from 22 per cent in 2021. Most fraud cases involved complaints regarding e-transfers, credit cards and wire transfers.

Nineteen per cent of all banking complaints were about service issues, while credit card chargebacks made up seven per cent of all banking cases. OBSI adds complaints about interest rates increased from nine cases in 2021 to 26 cases last year.

Credit cards, personal chequing and savings accounts and e-transfers were the top banking products people raised complaints to OBSI about in 2022. Credit card complaints made up 32 per cent of all banking cases, savings and chequing account complaints made up 15 per cent, while complaints about e-transfers accounted for 14 per cent.
INVESTMENT CASES

Cases involving investments decreased in 2022 by about 18 per cent, compared to 2021.

"Investment cases started the year with some moderation to near pre-pandemic levels, but surged later in the year, largely driven by investor concerns relating to ongoing market downturns and volatility, as well as increasing problems associated with fraud and service issues," Bradley said.


Towers are shown from Bay Street in Toronto's financial district, 

According to the report, fraud-related cases jumped drastically to 11 per cent of all investment cases in 2022, a rise from one per cent in 2021.

A breakdown of investment cases includes: Mutual funds – 37 per cent
Common shares (equities) – 33 per cent
Service issues – 21 per cent
Investment suitability – 15 per cent
Fee disclosure – Eight per cent

The newest category of complaints—crypto assets—was the third most common complaint for investors in 2022, accounting for 11 per cent of all investment cases.

"The rise in crypto asset complaints is associated with the increasing regulatory oversight of cryptocurrency dealers, which led to a number of dealers joining OBSI in 2022 as participating firms," OBSI said in a release.

With files from The Canadian Press

Crypto at a crossroads: Some provinces are wary of the technology's vast appetite for electricity

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B.C. energy minister says province must put its power to 

the best use

Christian Paas-Lang · CBC News · Posted: Mar 18, 2023 

Miners at work at the Bitfarms bitcoin mine in Magog, Que., on May 8, 2019. (Paul Chiasson/The Canadian Press)

Proponents of cryptocurrency mining say the industry's future in Canada is hanging in the balance after several provinces moved to restrict new projects earlier this year in response to concerns about their electricity usage.

Crypto entrepreneurs — most of them focused on Bitcoin — have been drawn to Canada because of the abundant supply of clean, inexpensive electricity in provinces like British Columbia and Quebec. Most crypto operations need unfettered access to cheap power to operate the rows of high-powered computers required for cryptomining.

"Why Canada? So, first of all, we said, 'What are the key ingredients you need to run this computing service?'" said Dan Roberts, an Australian cryptocurrency entrepreneur whose company, Iris Energy, operates three facilities in B.C.

"Cool temperatures — really important. Stability of law, good regulatory jurisdiction. But most importantly, renewable energy."

Roberts said he sees a new wave of economic prosperity growing out of cryptocurrency mining in provinces like B.C., which currently enjoys an electricity surplus.

"We can build a whole industry around this. We can go into those regional towns where they've been decimated by the end of the pulp-and-paper mill … rehire local workers, retrain them, and deliver all these benefits back into the community," he said.

But some provinces have slammed the brakes on new projects, saying the mining sites — where computers churn through complex equations to verify cryptocurrency transactions on the blockchain ledger (earning digital assets as a reward) — consume a staggering amount of electrical power.

• B.C. suspends new cryptocurrency mining requests over power, environmental concerns

• High energy demand prompts Manitoba to suspend new cryptocurrency operations

B.C. currently has seven mining sites in operation, with six more in advanced states of development. But it also has imposed an 18-month moratorium on connecting any new crypto mining projects to its electrical grid — halting 21 other projects which the province says would have used the same amount of power as 570,000 homes.

Manitoba also has paused new crypto hookups, while Hydro-Québec has set up higher rates and an electricity usage cap for mining projects. Ontario has proposed excluding crypto miners from an incentive program that could allow them to save money on electricity.

Uncertainty clouds future investments

Right now, Canadian crypto miners account for the fourth highest amount of computing power being contributed to the blockchain network, after crypto operations in the United States, China and Kazakhstan. Moves by some provinces to ration the sector's access to electricity have some crypto enthusiasts questioning whether Canada will continue to be a major player.

"As a public company, I have shareholders and I need to pause or not make decisions until I know what the rules are. And once I know what the rules are, I look at whether to invest in Canada or somewhere more lucrative," said Sheldon Bennett, CEO of DMG Blockchain Solutions and part of the Canadian Digital Asset Mining Coalition, an advocacy organization.

B.C. Energy Minister Josie Osborne told The House B.C.'s decision to impose the moratorium was meant to give the province time to consult with the industry to make sure energy is being put to good use.

The Site C dam in B.C., under construction in 2021. (B.C. Hydro/submitted)

While B.C. has an energy surplus right now, Osborne said that might not always be the case.

"We don't want to put that electricity at risk. It's why we have to take this pause right now and instead use the electricity for the best opportunities in the future," she told host Catherine Cullen.

Osborne argued that in order for B.C. to achieve its climate and economic goals, it has to look at other areas where its electricity might be more useful.

• NEW
  Ethereum network completes merge that could cut its electricity use by 99%

• Poilievre blasted during Commons debate on cryptocurrency legislation

"Cryptocurrency definitely does not create the number of jobs that other industry does," she said.

It also does nothing to help B.C. achieve its climate goals, she added.

"Cryptocurrency mining doesn't lower pollution in other industries," she said. "We want to use that electricity for our mines and for forestry operations, for marine port operations, for hydrogen operations [so] we could use the hydrogen to blend natural gas and decarbonize there. We want to use these electrons for their highest and best use."

Osborne did signal her government is somewhat open to hooking up new crypto operations in the future.

Dan Roberts, co-founder of the cryptocurrency company Iris Energy, says Canada's supply of clean energy is a huge draw for his industry. (Bob Keating/CBC)

Cryptocurrency was once a trendy topic in Canadian politics. It was championed by Pierre Poilievre during his successful run for the Conservative leadership (he famously bought a shawarma sandwich with Bitcoin just under a year ago).

Poilievre suggested at the time that cryptocurrencies could allow ordinary Canadians to "opt out" of inflation because they are not influenced by central banks. That was before many cryptocurrencies crashed last year; Bitcoin's value in late 2022 had dropped to about one-fourth of what it had been a year prior.

But policy development on crypto is moving forward. The Canadian Securities Administrators (CSA), the umbrella organization representing Canada's provincial and territorial securities regulators, has pushed for restrictions on crypto trading, while the Bank of Canada is in the midst of a digital asset review.

• Alberta cryptocurrency companies still say they're optimistic despite industry struggles

• Crypto lender Silvergate's viability questioned after lender delays financial report, reveals massive losses

The shift of some cryptocurrencies like Ethereum — the second largest cryptocurrency — to what's known as a "proof of stake" system has eliminated the need for mining, and thus for most of the currency's energy consumption. That's provided hope to some advocates that the energy argument against cryptocurrencies can one day be eliminated.

But Bitcoin remains on a "proof of work" model, where mining is key. Bennett said he wonders about Canada's willingness to engage with the new sector.

"What does Canada decide it wants to do with this industry? Does it want to foster it and grow it? Does it appreciate the technology, the jobs and the investment that's coming into it and want to grow that?" he said.

"Or does it want to sit back and see how other countries manage it?"

 TRUDEAU IGNORES ALBERTA, AGAIN

Federal government announces $80M to boost Alberta pharmaceutical development

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Planned Edmonton facility expected to produce 70 million medicine doses annually

The Canadian Press · Posted: Mar 18, 2023 1:13 PM MDT | Last Updated: March 18

Nate Glubish, Alberta minister of technology and innovation, along with other government officials announced federal funding that will go toward increasing Alberta's pharmaceutical capabilities. (David Bajer/CBC)

The federal government has announced more than $80 million over five years toward the Canadian Critical Drug Initiative in Edmonton.

The integrated research, development and manufacturing initiative is led by Applied Pharmaceutical Innovation, a not-for-profit organization, in partnership with the University of Alberta.

It is to strengthen Alberta's biomedical sector and increase the domestic production of critical medicines.

The project is to include a new facility that could produce new and critical medicines, which is touted by both the federal and provincial governments as being the first of its kind in Western Canada.

The 40,000-square-foot facility, which is to be built in Edmonton, is expected to have the capacity to produce 70 million doses annually.

• In small Alberta communities, the struggle to recruit pharmacists is real

• Alberta's first shipment of kids' pain reliever arrives

The Alberta government says it provided $5.6 million in 2022 to Applied Pharmaceutical Innovation, which allowed it to secure the additional funding from the federal government.

"Alberta has a vibrant and thriving research, development and manufacturing ecosystem to develop and produce a domestic supply of essential pharmaceuticals with potential to reach global markets," Nate Glubish, minister of technology and innovation, said in a Friday news release.

"I am proud of the Alberta government's support of these efforts."

Dan Vandal, the minister responsible for Prairies Economic Development Canada, added the federal government hopes to help Canadian innovators strengthen the local supply chain for critical medicines and create good jobs in Alberta.

The funding came as welcome news to both the University of Alberta and Applied Pharmaceutical Innovation.

"This support from the government of Canada and the government of Alberta is an absolute game-changer," Andrew MacIsaac, CEO of Applied Pharmaceutical Innovation, said in a stateme

Recall issued for some Nestlé infant formula due to potential bacteria contamination

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942-gram packages of Good Start Soothe infant formula sold across Canada

The Canadian Press · Posted: Mar 18, 2023 

Some Nestlé Good Start Soothe infant formula sold in Canada has been voluntarily recalled due to a potential bacteria contamination. (Prachaya Teerakathiti/Shutterstock)

Nestlé has issued a voluntary recall for some of its Good Start Soothe infant formula sold in Canada due to a potential bacteria contamination.

Distributor Perrigo Company says the product is being recalled out of an abundance of caution due to the potential presence of the bacteria Cronobacter sakazakii.

The affected formula was sold across Canada in 942-gram packages, with the lot numbers 301757651Z, 301757652Z and 301857651Z, and best before dates of July 18 and 19, 2024.

There have been no reported illnesses associated with the formula, and no distributed product has tested positive for the presence of the bacteria, Perrigo Co. said in a Friday news release.

The distributor says it has been working with the Canadian Food Inspection Agency, and is informing customers who received the products to arrange for them to be removed from store shelves. 

The distributor Perrigo Co. announced a voluntary recall of some 942-gram packages of the formula on Friday. (CNW Group/Perrigo)

Cronobacter sakazakii typically does not cause symptoms in most people, but premature infants, infants under two months of age or infants with weakened immune systems can experience fever, poor feeding, excessive crying or low energy.

It has been associated with severe intestinal infection and blood poisoning, especially in newborns.

Customers are being told to stop using the formula and contact Nestlé consumer services for reimbursement before disposing of the product.

Nunavut Employees Union should share its idea of ‘fair wages’

Unionized housing workers went on strike Friday over wages but haven’t publicly said how much they’re after

The 23 unionized workers who are employed by the Iqaluit Housing Authority have been without a collective agreement since August 2020, when the previous agreement expired. (File photo)

 EDITORIALS  MAR 18, 2023 – 

By Corey Larocque

Housing workers on strike in Iqaluit owe it to the public to put their cards on the table and say what they consider “fair wages” to be.

The strike by about 23 members of the Nunavut Employees Union has both broad implications for the territory’s economy and narrow implications for Iqaluit Housing Authority’s tenants.

Early Friday morning, unionized employees of the Iqaluit Housing Authority went on strike. The labour dispute has been building since last August when talks aimed at a new contract broke down. The previous agreement between the housing authority and its unionized workers expired in 2020.

The strike literally hits people where they live. The striking employees normally provide services like maintenance and support to people living in Iqaluit public housing. The housing authority has reassured the public those services would be provided, but as of Friday it had not explained how that would happen.

When the union issued a 72-hour strike notice earlier this week, NEU representatives told Nunatsiaq News the union was seeking “fair wages” for its members.

But they haven’t publicly stated what percentage increase they believe would be fair.

Earlier in the week, Public Service Alliance of Canada regional vice-president Lorraine Rousseau did divulge that management offered annual increases of 1.25 per cent and 1.5 per cent. But the union hasn’t disclosed what its own wage proposal was when the two sides were still at the bargaining table — way back in August 2022.

On Friday, NEU president Rochon said the union’s priority now is to get the employer back to the bargaining table.

No doubt that’s true. But getting back to the bargaining table is just a means to an end — to renew the negotiations about wages.

It’s only fair that the public should know, because they’re going to have to pay for that increase — either through the rents that tenants pay or through the financial support the government gives.

This labour dispute could set the tone for other public sector settlements. Municipal workers in Kinngait, for example, are bracing for a strike against the hamlet.

Nunavut — like the rest of Canada — has been feeling inflation’s pinch. It’s understandable for the housing workers to want a new contract to address that.

When talks broke down, the annual inflation rate was about seven per cent. Half a year later, inflation has dropped to about six per cent and some analysts predict it could drop back to three per cent by the end of 2023.

And Nunavut — like the rest of Canada — is facing a labour shortage, generally. That would seem to be in the union’s favour and a factor Iqaluit Housing Authority needs to take into consideration. Give the workers what they want, or risk losing them.

There’s a lot at stake in this labour dispute, which is all the more reason for both sides to be forthcoming about what they’re fighting over.

Toronto calls on feds to amend Criminal Code amid rising attacks on transit workers

A Toronto Transit Commission sign is shown at a downtown Toronto subway stop Tuesday, Jan. 31, 2023. THE CANADIAN PRESS/Graeme Roy

:

•  
•  

Bryann Aguilar, CP24 Web Content Writer

@BryannAguilar

Published Friday, March 17, 2023 4:39PM EDT

Toronto is calling on the federal government to better protect transit workers against increasing violence by revising the Criminal Code to deter future attacks.

Deputy Mayor Jennifer McKelvie sent a letter to federal Justice Minister David Lametti on Friday requesting that subsection 269.01 of the Criminal Code be amended to include all transit workers in the provisions.

The subsection of the law requires a judge to consider an assault on a public transit operator as an "aggravating circumstance" when handing out punishment.

The law defines a public transit operator as someone who "operates a vehicle used in the provision of passenger transportation services to the public, and includes an individual who operates a school bus."

In her letter, McKelvie said changing the subsection to also include all transit workers would send a “strong message” and help improve their safety.

"While I understand that the Criminal Code includes general provisions that respond to acts of violence committed against anyone, including transit workers, the proposed amendment would act as a deterrent, sending the message that abuse and assault against transit workers will not be tolerated," the deputy mayor wrote.

The letter comes a day before the Transit Operator and Worker Appreciation Day.

It also builds on a similar request sent by the Toronto Transit Commission (TTC) last year that follows conversations on transit safety.

"At that time, you had said you would share the proposal with the appropriate departmental officials for consideration. Since then we have seen more attacks on transit workers and I believe it is important for a strong message to be sent as soon as possible that violence against any transit workers is totally unacceptable and will be dealt with severely by Canada's justice system," she wrote.

Recent violent incidents involving TTC workers include employees allegedly assaulted in swarming attacks, a TTC bus operator shot with a BB gun, and two TTC workers chased by a suspect wielding a syringe.

These random acts of violence and other societal challenges, such as mental health, substance abuse, and homelessness, are affecting the well-being of TTC employees and customers, McKelvie said.

While the city has implemented necessary measures to address the issues, the deputy mayor said long-term solutions are needed and that involves all levels of government working together.

"Ongoing intergovernmental collaboration is required to address and reduce the number of assaults against TTC employees while performing their duties and to ensure the safety of customers," McKelvie wrote.

"Intergovernmental support remains critical to the future of Toronto's public transit system, including eradicating safety issues."

McKelvie also voiced her support for the creation of a national transit task force, which ATU Canada, the national union representing transit workers, has repeatedly called for in the wake of violent incidents.

"I support that call and will ensure Toronto and the TTC take part should the Government of Canada launch such a task force focused on preventing future transit attacks," McKelvie wrote.