Thursday's letters: Texas power crisis a harbinger for Alberta
Edmonton Journal 3/4/2021
Re. “Texans facing $5K electric bills after storm,” Feb. 22
© Provided by Edmonton Journal KILLEEN, TEXAS - FEBRUARY 18:
Icicles hang off the State Highway 195 sign on February 18, 2021 in Killeen, Texas.
Texans are now receiving alarmingly high invoices for their electricity, even though the system failed.
This is a harbinger of what could happen in Alberta. During the Klein era, companies like Enron lobbied the government to replace a perfectly functioning regulated system which provided the lowest power rates in North America with a free-market system where power producers sell electricity to the power distributors at a price determined by an hourly bid process.
Allegedly, this was to create competition but we soon had high prices. The province originally protected Albertans from the Texas scenario by placing a price cap of $100 but has since decided this price ceiling was not required.
Now, if there is a shortage, prices can be driven sky-high. We are somewhat protected by an integrated continental system but that has its drawbacks. If another jurisdiction bids up prices, we will see our prices affected.
In Texas, there are calls for the government to pay the bills. But there is no mention yet of a refund of the vast profits the power producers will have made from this natural disaster. Isn’t it wonderful how deregulation always looks after those poor old corporations and forgets about the little guy.
Don Davidson, Edmonton
FOR MY HISTORY OF ELECTIRCAL AND OTHER DEREGULATION
IN ALBERTA GO TO:
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