| Build it -- they're here Priority after deregulation debacle must be building new power stations Calgary Herald - EDITORIAL December ,16 2000 With announcements made and promised, retractions, last-minute regulation changes and secret meetings everywhere, it's difficult to get a picture of what's next for Alberta and electricity. Only one thing is certain, if indeed anything can be at this point. No matter what industry environment is created during the next few months -- regulated, deregulated, re-regulated or half-regulated -- moves must be taken to bring more supply of power on stream. The biggest strain on Alberta's electricity market has been the gaping inequity of supply and demand. Demand has gone up, certainly, but five years of uncertainty about the details of electrical deregulation have dampened the willingness of players to build new plants and generators. Events during the past few weeks, such as 11th-hour changes to power auction guidelines and the imposition of price controls by the Klein government, have only inflamed an already jittery marketplace. The biggest draw for any investor is stability and certainty. With regards to electricity, Alberta has neither right now. Alberta Liberal Leader Nancy Macbeth says the government must take quick steps to encourage more generation, even as it tries to bring order to the current mess. How? By including industry experts in the decision-making process, instead of leaving it all to the troika of Ralph Klein, Steve West and Mike Cardinal. By streamlining a clunky approval process so that applications for building new plants can be fast-tracked. By looking at ways to increase Alberta's inter-connectivity with other jurisdictions such as B.C. By revisiting the potential of coal. All good ideas. Many have been touted by industry players such as Epcor. All, however, will take years to make a dent. In the meantime, everyone -- the Klein government, the Liberals, consumers and industry -- are still trying to catch their breath, figure out what's happening and what to do next. Sadly, no one seems to have a plan. It's particularly distressing to see Klein lurching from one approach to another, disputing comments made by his ministers, and appearing to make it up as he goes. Deregulation is supposed to go into effect Jan. 1. Slapping on price controls a month before D-day makes it appear that no one in government really knows what they're doing on this front. Even worse, recent actions look a lot like Klein is throwing over the needs of a key industry and Alberta's economy in order to cosy up with consumers for the short time it takes to get re-elected. With a spring provincial vote expected, the Klein Tories and the Liberals had better develop far more encompassing plans for electricity than currently provided. Voters will want some assurance that the lights are on. |