Alberta
Boxing Day Special! Alberta had free power for several hours, and that’s not a good thing
From the Frontier Centre for Public Policy
Imagine, if you will, a Boxing Day sale where everything was free for everyone across every store at the same time, for several hours.
And imagine if in early morning hours of Dec. 26, Best Buy, Staples, Walmart, and indeed every single store in the entire economy got paid precisely zero dollars for their wares for several hours that morning.
Preposterous, you say!
Indeed, it did happen, in Alberta’s free-wheeling unregulated electrical market. The pool price, as recorded by the Alberta Electric System Operator (AESO) was $0.00 per megawatt at 4-7 a.m., and from 11 a.m. until noon.
And as a pool price, that means unless there’s some other contract going, that’s the price all generators get paid.
I might not have an MBA, but I’m fairly certain no business model in the world can survive getting paid nothing at all for their product for terribly long. If McDonalds, Burger King and Tim Horton’s all gave away their breakfasts on Dec. 26 to all comers, they couldn’t do it for long before someone would realize this is idiocy and shut the doors.
So what was happening during those wee hours in the morning, as the Boxing Day shoppers were in line for their flat screen TVs? It was quite windy in Alberta.
X bot account @ReliableAB, which logs hourly reports of the AESO minute-by-minute reporting of the grid showed that wind generation was just a hummin’. For several weeks, Alberta wind power has been been frequently pumping out high numbers, often in excess of 70 per cent of its nameplate capacity. One would think this would be a great thing, right? It’s finally doing what it’s supposed to do.
At 4:38 a.m., @ReliableAB reported Alberta’s now 45 wind farms were putting out 3,508 megawatts of the installed capacity of 4,481 megawatts while the pool price was zero.
At that point, wind was generating a full 33 per cent of total generation, which again, sounds like great news.
It was during one of the deadest periods of economic activity in the whole year, the night after Christmas. Demand in Alberta was low, with an internal load of 9,632 megawatts. The lack of demand happened to coincide with lots of surplus power being dumped onto the grid.
(As it was still dark, solar wasn’t a factor.)
What to do? How about sell as much as you can?
And that’s what happened. Alberta was pumping out 995 megawatts of power exports to its neighbours, 967 megawatts to BC, 26 to Saskatchewan, and two megawatts to Montana.
This situation is also the converse of what I’ve been reporting on over almost precisely 24 months, the frequent collapse of wind power generation in Alberta. Almost every time that has happened, the pool price shoots up, often hitting $700, $800, $900 or even the theoretical maximum of $999.99 per megawatt hour. If the maximum was $2,000, I’m willing to bet it would have hit those heights, too. And the integral under that graph – what consumers get on their bill – is horrendous.
So here we have renewable, “green” power in surplus, driving prices down for everyone, and so much so that it can benefit the neighbours, too.
But therein is the fundamental problem. No one, not Best Buy, McDonalds or Capital Power can produce product for nothing, and definitely not for extended periods. There is a cost to generating power, be it capital or fuel or operating costs. Nor can they sell their products, be it flat screen TVs, hamburgers or electricity for next to nothing, either. The entire economic model will collapse, and then what? Who will provide the power then?
When I wrote my first story on Alberta wind power on Dec. 28, 2021, the province had 2,269 megawatts on nameplate wind generation capacity. It’s now double that, at 4,481 megawatts, a level where big swings in wind power production have a huge impact. And Alberta’s last coal plant will switch to natural gas in a few months.
And there’s more wind coming. Oct. 24, the Calgary Herald noted, “More than 3,500 megawatts of renewable power generation projects are now under construction in Alberta.
“By the end of August, the AESO received 74 wind and solar project applications after the moratorium was announced, (Premier Danielle) Smith noted.”
What’s going to happen when all that comes online, when Alberta will have around 9,600 megawatts of wind and solar, almost equal to daily demand? Will the grid be flooded with power so cheap that reliable, dispatchable power generators can’t stay in business, only to see prices skyrocket when wind and solar inevitably fail, as they frequently do, and at the worst times?
Sounds like a recipe for utter chaos. And blackouts.
Brian Zinchuk is editor and owner of Pipeline Online, and occasional contributor to the Frontier Centre for Public Policy. He can be reached at [email protected].
Alberta
Fortis et Liber: Alberta’s Future in the Canadian Federation
From the C2C Journal
By Barry Cooper, professor of political science, University of Calgary
Canada’s western lands, wrote one prominent academic, became provinces “in the Roman sense” – acquired possessions that, once vanquished, were there to be exploited. Laurentian Canada regarded the hinterlands as existing primarily to serve the interests of the heartland. And the current holders of office in Ottawa often behave as if the Constitution’s federal-provincial distribution of powers is at best advisory, if it needs to be acknowledged at all. Reviewing this history, Barry Cooper places Alberta’s widely criticized Sovereignty Act in the context of the Prairie provinces’ long struggle for due constitutional recognition and the political equality of their citizens. Canada is a federation, notes Cooper. Provinces do have rights. Constitutions do mean something. And when they are no longer working, they can be changed.
Alberta
30 million contraband cigarettes valued at $25 million dollars seized in Alberta
New release from Alberta Gaming Liquor and Cannabis (AGLC)
Record setting contraband tobacco seizures result from AGLC investigations
Alberta Gaming Liquor and Cannabis (AGLC) recently concluded several investigations which netted two of the largest contraband tobacco seizures in Alberta history. The combined total of the contraband tobacco seized was 154,800 cartons of contraband cigarettes (30.7 million individual cigarettes). These seizures are a result of the work conducted by AGLC’s Tobacco Enforcement Unit with the assistance of provincial law enforcement agencies.
- In a January 2024 investigation, approximately 43,500 cartons (8.7 million individual cigarettes) were seized. This equates to $7 million in retail value with a provincial tax avoidance of $2.4 million. This included the seizure of 15,000 grams of contraband shisha.
- In April of 2024, 60 wrapped pallets were seized from a warehouse setting netting a total of 111,300 cartons of contraband cigarettes (22 million individual cigarettes) which equates to over $18 million in retail value with a provincial tax avoidance of $6.6 million.
- Criminal Charges are pending in both cases.
“These are significant contraband tobacco investigations involving individuals that are part of organized networks whose proceeds defraud Albertans millions of dollars in tax revenue. AGLC will continue to work with our partners to investigate and disrupt the individuals and organizations involved in these illegal activities as part our commitment to a strong contraband tobacco enforcement program in Alberta.”
- Gary Peck, Vice President, Regulatory Services, AGLC
“Contraband tobacco hurts law abiding businesses that follow the rules, and it costs Albertans millions each year from lost tax revenue. Our government is committed to keeping illegal tobacco off the streets and ensuring that the sale of tobacco products comply with the law.”
- Dale Nally, Minister of Service Alberta and Red Tape Reduction
Over the last nine months, AGLC’s Tobacco Enforcement unit has seized an estimated 35 million contraband cigarettes and 115,000 grams of contraband shisha from across the province. The total potential lost tax revenue is estimated to be more than $10.1 million.
Contraband tobacco:
- is any tobacco product that does not comply with federal and provincial laws related to importation, marking, manufacturing, stamping and payment of duties and taxes;
- comes from four main sources: illegal manufacturers, counterfeits, tax-exempt diversions and resale of stolen legal tobacco; and
- can be recognized by the absence of a red (Alberta) or peach/light tan (Canada) stamp bearing the “DUTY PAID CANADA DROIT ACQUITTÉ” on packages of cigarettes and cigars or pouches of tobacco.
In addition to lost revenues that may otherwise benefit Albertans, illegally manufactured products also pose public health and safety risks as they lack regulatory controls and inspections oversight.
Albertans who suspect illegal tobacco production, packaging and/or trafficking are encouraged to contact AGLC’s Tobacco Enforcement Unit at 1-800-577-2522 or Crime Stoppers at 1-800-222-TIPS (8477).
Under a Memorandum of Understanding with Alberta Treasury Board and Finance, AGLC enforces the Tobacco Tax Act and conducts criminal investigations related to the possession, distribution and trafficking of contraband tobacco products. In 2022-23, provincial revenue from tobacco taxes was approximately $522 million.
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