Federal electricity regulations threaten Albertans with high costs and power outages

Alberta responds to dangerous federal electricity regulations

Alberta has submitted detailed analysis showing why proposed federal regulations will threaten the province’s electricity grid.

Alberta is rapidly reducing emissions and targeting a carbon-neutral grid by 2050. Electricity emissions have declined by 53 per cent since 2005 and the province will have phased-out all coal generation by early 2024.

However, in August, the federal government released its draft Clean Electricity Regulations, which propose rigid rules to try and achieve net-zero electricity by 2035.

Based on expert analysis and industry consultations, Alberta’s government has submitted a detailed response outlining the technical problems with these regulations. The province’s analysis found that these regulations are unrealistic, ineffective and could compromise grid reliability to an unacceptable degree, resulting in the very real risk that Albertans will not have access to an essential service, like power, when they need it.

“These regulations are irresponsible and reckless, setting unrealistic targets and even banking on technologies that don’t exist. They will result in Albertans shouldering an unbearable cost for an electricity system that will no longer deliver the safety, reliability and affordability upon which our lives depend. We will not permit these dangerous and unconstitutional regulations to be imposed upon our province.”

Danielle Smith, Premier

“The standards and enforcement that Ottawa is proposing would put the safe, reliable and openly competitive market of Alberta’s electricity system at risk, all for targets that aren’t feasible or realistic. We cannot allow the reliability of our electricity to be compromised and risk public safety during the coldest months of the year, when people need the power most. We urge Ottawa to abandon these regulations and work with us on a realistic path that aligns with our own emissions-reduction goals.”

Rebecca Schulz, Minister of Environment and Protected Areas

Some of the key problems outlined in Alberta’s technical submission include:

Flawed modelling creates unrealistic targets

The modelling tools used by the federal government lack the capability to properly assess Alberta’s energy-only market, including the province’s large share of cogeneration. The federal tools also use incomplete proxies to evaluate system reliability, leading them to drastically underestimate the negative impacts.

The federal modelling also relies heavily on technologies that are currently not ready to be deployed, assuming that they will soon be easily or quickly available. As a result, the federal modelling offers an unreliable and inaccurate picture of the costs, impacts on reliability and outcomes of these regulations. With better modelling, the federal targets would be unachievable.

Unachievable standards

The regulations propose unachievable emission standards, with limited flexibility and using a rigid approach that will not work. The standard is also based on unproven design specifications that will be very challenging for operators to meet, even under optimal conditions, and potentially impossible given the operational variability that occurs in electricity grids on a daily basis.

Notably, Ottawa’s standard is significantly higher than those proposed in the United States in May. Standards need to be based on actual performance.

Creating a retirement cliff

The proposed regulations set an end of prescribed life of 20 years, despite the typical operating life of natural gas units being closer to 45 years. This will create stranded assets and massive retirement “cliffs,” as large numbers of natural gas facilities go off-line.

Approximately 55 per cent of Alberta’s existing and approved natural gas generation installed capacity would be subject to the federal emissions standard by 2035. The unnecessary retirement of best-in-class natural gas units would have massive negative impacts on Alberta’s electricity system.

A one-size-fits-all approach won’t work

It is clear that the federal government drafted these regulations based largely on the electricity systems of Canada’s three largest provinces, which primarily rely upon hydroelectricity and nuclear energy.

Regional differences must be recognized, including flexibilities for those jurisdictions most negatively affected by the regulations. When Ottawa exempted home heating oil from the carbon tax, they recognized the need for this flexibility. Alberta and all provinces deserve the same consideration.

Flawed understanding of natural gas

Alberta currently relies on natural gas for more than 70 per cent of its generation. Alberta’s grid reliability is maintained through natural gas generation to backup and balance intermittent sources of power such as wind and solar. Considering the seasonality of renewable resources, Alberta anticipates the need for efficient high-capacity abated natural gas units for decades to come.

The regulations are so rigid and strict that they will effectively make it economically unviable for companies to build and operate natural gas facilities, including abating emissions through carbon capture, utilization and storage (CCUS).

Inflexible and punitive compliance options

The draft regulations are unnecessarily punitive with inflexible compliance options. As written, generators must not emit or they could face criminal penalties under the Canadian Environmental Protection Act, which includes a threat of incarceration. The regulations also increase red tape, increase costs, and offer very little flexibility for industry.

Limiting new technologies

The proposed federal electricity regulations will limit the adoption of important new technologies like hydrogen and CCUS by setting unproven and unrealistic performance standards for facilities. This imposes high costs, introduces investor risk, and creates challenges such as older facilities not being able to upgrade or retrofit new technologies. The result will be added costs and grid reliability risks.

Risks to reliability and safety

Alberta requires reliable electricity power in periods when intermittent sources are not generating. In December 2022, the 5,000 megawatts of installed renewable capacity generated as little as 187 megawatts of energy at one point during a period of cold weather with little wind or solar generation. Natural gas was needed to keep the province from experiencing blackouts.

The proposed allowable peaking provisions – needed to ensure that power is available at any time, under any weather conditions – will result in Alberta not having enough power available when needed most. This is dangerous and irresponsible. The proposed low annual-run-hour limit and emissions restrictions do not enable natural gas assets to respond when needed to increasing demands and the variability of intermittent generation.

A ridiculous approach to emergencies

The proposed treatment of emergencies is unacceptable. It is untenable for the federal government to require post-emergency sign-off by a federal minister. Alberta’s provincial system operator knows best when we have an emergency, not politicians in Ottawa. Provinces must have flexibility to call on generators during emergencies to protect the safety and security of families and businesses, without the threat of punitive action on system operators or generators.

Inadequate financial support for those hit hardest

The federal government released the draft regulations without providing the financial supports needed to enable this transition. Any claims otherwise are false. Federal modelling indicates the regulations will cost $58 billion – since 60 per cent of the net costs will fall on Alberta, the province should receive 60 per cent of the necessary federal funding. Also, the $58-billion figure is likely incorrect as it’s based on flawed modelling and does not adequately consider the distribution and transmission and other costs that will be required. Other third-party assessments further estimated the costs reaching into the trillions.

Next steps

Alberta continues to call on the federal government to respect jurisdictional authority and the enshrined rights and responsibilities of the provinces. The Supreme Court of Canada’s decision on the Impact Assessment Act confirmed the unconstitutionality of the federal government’s ongoing efforts to interfere with electricity and natural resource sectors of all provinces.

The Alberta-Ottawa working group continues to discuss how to bring Ottawa’s efforts to achieve carbon neutrality in the economy in line with Alberta’s Emissions Reduction and Energy Development Plan. If this alignment is not achieved, Alberta will chart its own path to protect its citizens and economy by ensuring the province has additional reliable, affordable and sustainable electricity brought onto the power grid.

Alberta officials will continue to share technical information and analysis on these regulations with the federal government as required to achieve a more practical and realistic approach.

Quick facts

Alberta has reduced electricity emissions by 53 per cent since 2005.
According to Canada’s Constitution, legislating and regulating the development of electricity explicitly falls within the jurisdiction of the province (92A (1) (c)).
The Alberta Electric System Operator found that Alberta would face disproportionate risk and costs, compared with other provinces, as a result of the federal electricity regulations.
The Public Policy Forum previously indicated that the cost of the federal electricity approach could be more than $1 trillion and as high as $1.7 trillion.

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Preston Manning: Canada is in a unity crisis

Published on April 30, 2025

Todayville

Preston Manning

A Canada West Assembly would investigate why

The election of a minority Liberal government on Monday, and the strong showing of the Conservative party under Pierre Poilievre, cannot mask the fact that Canada remains seriously fractured on many fronts. Thus, one of the primary tasks of the Carney government will be to unite us for the sake of our own national well-being — not simply for the sake of presenting a strong front in future dealings with the United States.

But how is that to be done? When parliament meets as scheduled on May 26, will the government’s throne speech acknowledge the main sources of national disunity and propose the immediate adoption of remedial measures? Or will it ignore the problem entirely, which will serve to further alienate Quebec and the West from Ottawa and the rest of Canada, and weaken Canada’s bargaining position vis a vis the United States?

The principal tactic employed by the Liberal party to unite Canadians behind it in the recent election was to employ the politics of fear — fear of U.S. President Donald Trump trying to “break us so that America can own us,” as Liberal Leader Mark Carney has repeatedly said.

But if the only way to unite Canadians is through the promotion of anti-Americanism fostered by fear of some alleged American takeover — if reaction to the erratic musings of an American president is the only way to motivate more Canadians to vote in a federal election — then not only national unity, but Canadian democracy itself, is in critical condition.

We need to pinpoint what actually is fracturing the country, because if we can clearly define that, we can begin the process of removing those divisive elements to the largest extent possible. Carney and the Liberals will of course declare that it is separatist agitations in Quebec and now the West that is dividing us, but these are simply symptoms of the problem, not the cause.

Here, then, is a partial list of what underpins the division and disunity in this country and, more importantly, of some positive, achievable actions we can take to reduce or eliminate them.

First and foremost is the failure to recognize and accommodate the regional character of this country. Canada is the second-largest country by area on the planet and is characterized by huge geographic regions — the Atlantic, Central Canada, the Prairies, the Pacific Coast and the Northern territories.

Each of these regions — not just Quebec — has its own “distinctive” concerns and aspirations, which must be officially recognized and addressed by the federal government if the country is to be truly united. The previous Liberal government consistently failed to do this, particularly with respect to the Prairies, Pacific and Northern regions, which is the root of much of the alienation that even stimulates talk of western separation.

Second is Ottawa’s failure to recognize and treat the natural resources sector as a fundamental building block of our national economy — not as a relic from the past or an environmental liability, as it was regarded by the government of former prime minister Justin Trudeau.

Will the throne speech announce another 180-degree turn for the Liberal government: the explicit recognition that the great engine of the Canadian economy and our economic recovery is not the federal government, as Carney has implied, but Canada’s agricultural, energy, mining, forestry and fishery sectors, with all the processing, servicing, manufacturing and knowledge sectors that are built upon them?

A third issue we’ve been plagued with is the division of Canadian society based on race, gender, sexual preferences and other identity traits, rather than focusing on the things that unite us as a nation, such as the equality of all under the law. Many private-sector entities are beginning to see the folly of pursuing identity initiatives such as diversity, equity and inclusion that divide rather than unite, but will the Liberal government follow suit and will that intention be made crystal clear in the upcoming throne speech?

A final issue is the federal government’s intrusion into areas of provincial jurisdiction — such as natural resources, health, municipal governance, along with property and civil rights — which is the principal cause of tension and conflict between the federal and provincial governments.

The solution is to pass a federal “act respecting provincial jurisdiction” to repeal or amend the statutes that authorize federal intrusions, so as to eliminate, or at least reduce, their intrusiveness. Coincidentally, this would be a legislative measure that both the Conservatives and the Bloc could unite behind if such a statute were to be one of the first pieces of legislation introduced by the Carney government.

Polling is currently being done to ascertain whether the election of yet another Liberal government has increased the growing estrangement of western Canada from Ottawa and the rest of Canada, notwithstanding Carney’s assurances that his minority government will change its policies on climate change, pipelines, immigration, deficit spending and other distinguishing characteristics of the discredited Trudeau government.

The first test of the truthfulness of those assurances will come via the speech from the throne and the follow-up actions of the federal government.

Meanwhile, consultations are being held on the merits and means of organizing a “Canada West Assembly” to provide a democratic forum for the presentation, analysis and debate of the options facing western Canada (not just Alberta) — from acceptance of a fairer and stronger position within the federation based on guarantees from the federal government, to various independence-oriented proposals, with votes to be taken on the various options and recommendations to be made to the affected provincial governments.

Only time will tell whether the newly elected Carney government chooses to address the root causes of national disunity. But whether it does so or not will influence the direction in which the western provinces and the proposed Canada West Assembly will point.

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Alberta

Premier Danielle Smith hints Alberta may begin ‘path’ toward greater autonomy after Mark Carney’s win

Published on April 30, 2025

Todayville

From LifeSiteNews

By Anthony Murdoch

Alberta’s premier said her government will be holding a special caucus meeting on Friday to discuss Alberta’s independence.

Alberta Premier Danielle Smith hinted her province could soon consider taking serious steps toward greater autonomy from Canada in light of Mark Carney and the Liberal Party winning yesterday’s federal election.

In a statement posted to her social media channels today, Smith, who is head of Alberta’s governing United Conservative Party, warned that “In the weeks and months ahead, Albertans will have an opportunity to discuss our province’s future, assess various options for strengthening and protecting our province against future hostile acts from Ottawa, and to ultimately choose a path forward.”

“As Premier, I will facilitate and lead this discussion and process with the sincere hope of securing a prosperous future for our province within a united Canada that respects our province’s constitutional rights, facilitates rather than blocks the development and export of our abundant resources, and treats us as a valued and respected partner within confederation,” she noted.

While Smith stopped short of saying that Alberta would consider triggering a referendum on independence from Canada, she did say her government will be holding a “special caucus meeting this Friday to discuss this matter further.”

“I will have more to say after that meeting is concluded,” she noted.

Smith’s warning comes at the same time some pre-election polls have shown Alberta’s independence from Canada sentiment at just over 30 percent.

Monday’s election saw Liberal leader Mark Carney beat out Conservative rival Pierre Poilievre, who also lost his seat. The Conservatives managed to pick up over 20 new seats, however, and Poilievre has vowed to stay on as party leader, for now.

In Alberta, almost all of the seats save two at press time went to conservatives.

Carney, like former Prime Minister Justin Trudeau before him, said he is opposed to new pipeline projects that would allow Alberta oil and gas to be unleashed. Also, his green agenda, like Trudeau’s, is at odds with Alberta’s main economic driver, its oil and gas industry.

The Carney government has also pledged to mandate that all new cars and trucks by 2035 be electric, effectively banning the sale of new gasoline- or diesel-only powered vehicles after that year.

The reduction and eventual elimination of the use of so-called “fossil fuels” and a transition to unreliable “green” energy has also been pushed by the World Economic Forum (WEF) – the globalist group behind the socialist “Great Reset” agenda – an organization in which Trudeau and some of his cabinet are involved.

Smith: ‘I will not permit the status quo to continue’

In her statement, Smith noted that she invited Carney to “immediately commence working with our government to reset the relationship between Ottawa and Alberta with meaningful action rather than hollow rhetoric.”

She noted that a large majority of Albertans are “deeply frustrated that the same government that overtly attacked our provincial economy almost unabated for the past 10 years has been returned to government.”

Smith then promised that she would “not permit the status quo to continue.”

“Albertans are proud Canadians that want this nation to be strong, prosperous, and united, but we will no longer tolerate having our industries threatened and our resources landlocked by Ottawa,” she said.

Smith praised Poilievre for empowering “Albertans and our energy sector as a cornerstone of his campaign.”

Smith was against forced COVID jabs, and her United Conservative government has in recent months banned men from competing in women’s sports and passed a bill banning so-called “top and bottom” surgeries for minors as well as other extreme forms of transgender ideology.