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Alberta

Painful History: The worst tragedy in the history of the Northern Alberta Railways

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This article is submitted by members of the Alberta Railway Museum

CARBONDALE JUNCTION
On November 10, 1959, 13.6 miles North of Dunvegan Yards, the worst tragedy in the history of the Northern Alberta Railways (NAR) occurred. As a result, four people died and half a dozen men were released from their positions following a public inquest.

STATION HISTORY
The hamlet of Carbondale, North of Edmonton’s Dunvegan Yards, was at one time home to a small railway station on the Northern Alberta Railways (NAR) line. NAR was a CN-CP Rail joint venture that operated throughout Northern Alberta from 1929 to 1981. Carbondale is where the mainline split, allowing passengers and freight either West to Grande Prairie and Dawson Creek, or East to Fort McMurray.

The station was not only a stop en-route to several destinations along the line but, from 1956-1959 it was also the home of Station Agent Arthur “Art” Fraser, his wife Alice, and their youngest of three children, son Kelly (18 years) who were previous station agents in Smith, Alberta.

Courtesy of Shannyn Rus, 2020

SERIES OF TRAGIC EVENTS
On November 10, 1959, the weather was cool and a bit windy as the sun was peaking over the horizon. Carbondale Station was closed until 9am on weekdays and the Frasers were nowhere to be seen. NAR passenger train No.2 was southbound behind CN steam locomotive 5115, having left Grande Prairie the night before, destined for Edmonton. No.2 passed through Morinville at about 7:51 a.m., and was due at Carbondale at 8:00 a.m., on schedule, but was not scheduled to stop.

While the passenger train was headed south, NAR Train No.31, lead by NAR diesel locomotives 202 & 208 with 119 freight cars, left Edmonton behind schedule. In a rush to depart from the city at 7:20 a.m., crew members had improperly placed a tank car filled with gasoline directly behind the two engines, a violation of railway marshalling operating rules.

Upon reaching Carbondale at 7:51 a.m., No.31 moved to switch onto a sidetrack to allow the southbound passenger train to pass, but several cars detached from No.31 and were on the main track as the passenger train quickly approached. In a desperate attempt to notify the oncoming passenger train, the brakeman from the freight train ran ahead to deploy an explosive warning device called a torpedo on the track and wave a red flag signalling the steam train to stop. He did not get far, and the engineer of the passenger train did not see or hear the warning signals.

A precisely 8:00 am, the trains collided head on at a speed of 40 km/h (25 mph) resulting in a sound described by a witness as “atomic”. The impact ruptured the tank car, causing the rapid spread of gasoline over the station, a garage, and three vehicles. The gas immediately ignited. The bodies of the Fraser family were found outside of their home by a high-wire fence; it remains speculation as to whether they were attempting to flee the inferno or were blown from their home at the time of the explosion. The body of steam engine Fireman Albert Villeneuve was found in the buckled cab of the steam locomotive. An additional 19 people were injured in the accident.

Living just 18 metres (59 feet) from the station was retired coal miner William Dickinson. He told the Edmonton Journal in 1959 that the blast was “like an earthquake” and shook him awake. Seeing smoke and fire everywhere, he ran to the phone to report the collision, but the phone line was dead – the crash had taken out the phone and power lines, stopping his electric clock at precisely 8:00 am.

THE AFTERMATH
The fire obliterated the station, a garage, and three vehicles. Historic accounts show the station was destroyed except for its fireproof safe and brick chimney. An official investigation followed the collision. Conflicting testimony was given by the flagman from the freight train and the engineer from the passenger train. The flagman was required to go two kilometres (2,000 yards) beyond the stopped freight train to flag and alert the crew of the passenger train.

The flagman testified he went forward approximately 220 metres (240 yards); however, no footprints were found in the fresh snow beyond 23 metres (75 feet). The engineer of the passenger train stated that he did not see the red flag or hear the track torpedoes. The engineer also testified that he failed to see the freight train on the main track until he was about seven metres (23 feet) away, at which time he placed the brakes into emergency.

Following the investigation, the entire crew of No.31, the freight train, was dismissed by the NAR for violating the operating rules by having the train on the main track and not flagging down the passenger train. The engineer of the passenger train, No. 2, was also dismissed for not obeying the rule that the train be prepared to stop at the junction. The conductor of train No. 2 was severely reprimanded for not checking the signals at the junction and “for failure to exercise proper supervision over his train”.

Courtesy of Shannyn Rus, UPI Telephoto ARP-111101-November 10/59

THE BRICKS
62 years have passed since this tragic historic day and what remains buried of the Carbondale station has begun to reveal itself brick by brick. Carbondale resident Shannyn Rus and her family began finding these “ACP” stamped bricks in 2019. The chimney bricks were made by Alberta Clay Products (ACP) which existed from 1909 to 1962 in southern Alberta, near Redcliff.

The Rus family collected 20 full size, intact red bricks from the crash site and have donated them to rest at the Alberta Railway Museum as part of a collection of rail history not to be forgotten or buried again. You can find a short documentary on the Carbondale Station here.

Alberta

Alberta government should create flat 8% personal and business income tax rate in Alberta

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From the Fraser Institute

By Tegan Hill

If the Smith government reversed the 2015 personal income tax rate increases and instituted a flat 8 per cent tax rate, it would help restore Alberta’s position as one of the lowest tax jurisdictions in North America

Over the past decade, Alberta has gone from one of the most competitive tax jurisdictions in North America to one of the least competitive. And while the Smith government has promised to create a new 8 per cent tax bracket on personal income below $60,000, it simply isn’t enough to restore Alberta’s tax competitiveness. Instead, the government should institute a flat 8 per cent personal and business income tax rate.

Back in 2014, Alberta had a single 10 per cent personal and business income tax rate. As a result, it had the lowest top combined (federal and provincial/state) personal income tax rate and business income tax rate in North America. This was a powerful advantage that made Alberta an attractive place to start a business, work and invest.

In 2015, however, the provincial NDP government replaced the single personal income tax rate of 10 percent with a five-bracket system including a top rate of 15 per cent, so today Alberta has the 10th-highest personal income tax rate in North America. The government also increased Alberta’s 10 per cent business income tax rate to 12 per cent (although in 2019 the Kenney government began reducing the rate to today’s 8 per cent).

If the Smith government reversed the 2015 personal income tax rate increases and instituted a flat 8 per cent tax rate, it would help restore Alberta’s position as one of the lowest tax jurisdictions in North America, all while saving Alberta taxpayers $1,573 (on average) annually.

And a truly integrated flat tax system would not only apply a uniform tax 8 per cent rate to all sources of income (including personal and business), it would eliminate tax credits, deductions and exemptions, which reduce the cost of investments in certain areas, increasing the relative cost of investment in others. As a result, resources may go to areas where they are not most productive, leading to a less efficient allocation of resources than if these tax incentives did not exist.

Put differently, tax incentives can artificially change the relative attractiveness of goods and services leading to sub-optimal allocation. A flat tax system would not only improve tax efficiency by reducing these tax-based economic distortions, it would also reduce administration costs (expenses incurred by governments due to tax collection and enforcement regulations) and compliance costs (expenses incurred by individuals and businesses to comply with tax regulations).

Finally, a flat tax system would also help avoid negative incentives that come with a progressive marginal tax system. Currently, Albertans are taxed at higher rates as their income increases, which can discourage additional work, savings and investment. A flat tax system would maintain “progressivity” as the proportion of taxes paid would still increase with income, but minimize the disincentive to work more and earn more (increasing savings and investment) because Albertans would face the same tax rate regardless of how their income increases. In sum, flat tax systems encourage stronger economic growth, higher tax revenues and a more robust economy.

To stimulate strong economic growth and leave more money in the pockets of Albertans, the Smith government should go beyond its current commitment to create a new tax bracket on income under $60,000 and institute a flat 8 per cent personal and business income tax rate.

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Alberta

Province to stop municipalities overcharging on utility bills

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Making utility bills more affordable

Alberta’s government is taking action to protect Alberta’s ratepayers by introducing legislation to lower and stabilize local access fees.

Affordability is a top priority for Alberta’s government, with the cost of utilities being a large focus. By introducing legislation to help reduce the cost of utility bills, the government is continuing to follow through on its commitment to make life more affordable for Albertans. This is in addition to the new short-term measures to prevent spikes in electricity prices and will help ensure long-term affordability for Albertans’ basic household expenses.

“Albertans need relief from high electricity costs and we can provide that relief by bringing in fairness on local access fees. We will not allow municipalities – including the city of Calgary – to profit off of unpredictable spikes in electricity costs while families struggle to make ends meet. We will protect Alberta families from the extreme swings of electricity costs by standardizing the calculations of local access fees across the province.”

Danielle Smith, Premier

Local access fees are functioning as a regressive municipal tax that consumers pay on their utility bills. It is unacceptable for municipalities to be raking in hundreds of millions in surplus revenue off the backs of Alberta’s ratepayers and cause their utility bills to be unpredictable costs by tying their fees to a variable rate. Calgarians paid $240 in local access fees on average in 2023, compared to the $75 on average in Edmonton, thanks to Calgary’s formula relying on a variable rate. This led to $186 million more in fees being collected by the City of Calgary than expected.

“Albertans deserve to have fair and predictable utility bills. Our government is listening to Albertans and taking action to address unaffordable fees on power bills. By introducing this legislation, we are taking yet another step towards ensuring our electricity grid is affordable, reliable, and sustainable for generations to come.”

Nathan Neudorf, Minister of Affordability and Utilities

To protect Alberta’s ratepayers, the Government of Alberta is introducing the Utilities Affordability Statutes Amendment Act, 2024. If passed, this legislation would promote long-term affordability and predictability for utility bills by prohibiting the use of variable rates when calculating municipalities’ local access fees.

Variable rates are highly volatile, which results in wildly fluctuating electricity bills. When municipalities use this rate to calculate their local access fees, it results in higher bills for Albertans and less certainty in families’ budgets. These proposed changes would standardize how municipal fees are calculated across the province, and align with most municipalities’ current formulas.

“Over the last couple of years many consumers have been frustrated with volatile Regulated Rate Option (RRO) prices which dramatically impacted their utility bills. In some cases, these impacts were further amplified by local access fees that relied upon calculations that included those same volatile RRO prices. These proposed changes provide more clarity and stability for consumers, protecting them from volatility in electricity markets.”

Chris Hunt, Utilities Consumer Advocate

If passed, the Utilities Affordability Statutes Amendment Act, 2024 would prevent municipalities from attempting to take advantage of Alberta’s ratepayers in the future. It would amend sections of the Electric Utilities Act and Gas Utilities Act to ensure that the Alberta Utilities Commission has stronger regulatory oversight on how these municipal fees are calculated and applied, ensuring Alberta ratepayer’s best interests are protected.

“Addressing high, unpredictable fees on utility bills is an important step in making life more affordable for Albertans. This legislation will protect Alberta’s ratepayers from spikes in electricity prices and ensures fairness in local access fees.”

Chantelle de Jonge, Parliamentary Secretary for Affordability and Utilities

If passed, this legislation would also amend sections of the Alberta Utilities Commission Act, the Electric Utilities ActGovernment Organizations Act and the Regulated Rate Option Stability Act to replace the terms “Regulated Rate Option”, “RRO”, and “Regulated Rate Provider” with “Rate of Last Resort” and “Rate of Last Resort Provider” as applicable.

Quick facts

  • Local access fees are essentially taxes that are charged to electricity distributors by municipalities. These fees are then passed on to all of the distributor’s customers in the municipality, and appear as a line item on their utility bills.
    • The Municipal Government Act grants municipalities the authority to charge, amend, or cap franchise and local access fees.
  • Linear taxes and franchise fees are usually combined together on consumers’ power bills in one line item as the local access fee.
    • The linear tax is charged to the utility for the right to use the municipality’s property for the construction, operation, and extension of the utility.
    • The franchise fee is the charge paid by the utility to the municipality for the exclusive right to provide service in the municipality.
  • Local access fees are usually calculated in one of two ways:
    • (1) A percentage of transmission and distribution (delivery) costs, typically 10-15 per cent.
    • (2) A fixed, cents per kilowatt-hour of consumed power charge (City of Edmonton).
  • Calgary is the only municipality that employs a two-part fee calculation formula:
    • 11.11 per cent of transmission and distribution charges plus 11.11 per cent of the Regulated Rate Option multiplied by the consumed megawatt hours.

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