October 18, 2019

AB Today – Daily Report October 18, 2019

Quotation of the day

“I don't think they can cut their way out of their problems.”

NDP Energy critic Irfan Sabir reacts to a proposed 18 per cent budget cut to the beleaguered Alberta Energy Regulator.

Today in AB

On the schedule The house will return on Monday at 1:30 p.m. for private members’ business.

In the Legislature Licensed practical nurses were in the chamber following a government announcement expanding their scope of practice.

Thursday’s debates and proceedings MLAs debated Government Motion 34, which asks the legislative assembly to denounce any federal party that would block the construction of pipelines.

Energy Minister Sonya Savage introduced Bill 18, Electricity Statues (Capacity Market Termination) Amendment Act, which was given first reading.

Community and Social Services Minister Rajan Sawhney introduced Bill 17, Disclosure to Protect Against Domestic Violence (Clare’s Law) Act, which passed second reading.

Government introduces legislation to return to energy-only market The Alberta government introduced legislation Thursday to end a plan to move the province's power market to a capacity system.

In tabling Bill 18, Electricity Statutes (Capacity Market Termination) Amendment Act, Energy Minister Sonya Savage brought teeth to a United Conservative Party election promise to keep the existing energy-only market, and reverse the previous NDP government’s plan to move to a capacity market.

“We promised we would act quickly to amend the necessary legislation to return to an energy-only market and bring back investor stability, and we are delivering on that promise,” Savage said.

In 2016, the NDP decided in favour of moving to a capacity market, which means power generators are paid for both the price of the electricity they use and for reserving the capacity to generate power at a given time.

The decision was made amid concerns Alberta was at risk of running into an energy shortage and facing price spikes thanks to plans to shutter the province’s coal-powered plants by 2030 and to bring more renewable energy to market.

The government announced its plans to formally cancel the transition in July, following a review of the electricity market system conducted in June.

“We heard overwhelmingly that the way to keep electricity prices low is with an energy-only market, that that was by far the preferred market for affordability and reliability and to attract investment,” Savage said. “Moving to a capacity market was an experiment.”

Bill 18 will make sweeping changes to three acts — the Alberta Utilities Commission Act, Electric Utilities Act, and Hydro and Electric Energy Act — and seven regulations, effectively repealing the capacity market’s mandate to provide a reliable supply of electricity at a reasonable cost.

While several jurisdictions — including U.S. states New York, Massachusetts, Pennsylvania, and Maryland — have switched to a capacity market, there are fears such a switch can result in oversupply and higher overall costs.

In an energy-only market, where producers are only paid for power that has already been produced, concerns revolve around price fluctuation because supply-and-demand changes over time, which in turn raises fear of outages.

The NDP’s 6.8 cents per kilowatt hour cap on power prices, which took effect June 1, 2017, and is in effect until 2021, falls outside the scope of Bill 18, Savage said. She declined to say whether the government has plans to keep or scrap the price cap.

The government did not disclose the stakeholders it met with, saying only that they comprised power generators; regulated utilities and retail providers; and representatives of small and industrial consumers, financial institutions and other investors, as well as the Alberta Electricity Systems Operator.

Consumers will not see changes to their bills because the capacity market has not yet been implemented.

NDP Energy critic Irfan Sabir said sticking with the energy-only market exposes the province to rolling brownouts — which plagued the province in 2011 and 2012 — spikes in prices, and a lack of investor certainty for renewable energy.

Sabir also questioned who the minister consulted.

“We didn’t see consultation with the public at large,” Sabir said.

Today’s events

October 18 at 9 a.m. — Edmonton Education Minister Adriana LaGrange will make an announcement about an audit on the effectiveness of funding to reduce class sizes.

October 18 at 9 a.m. — Enoch Indigenous Relations Minister Rick Wilson will speak at the Northern Alberta Mayors’ and Reeves’ Caucus at the River Cree Resort.

October 18 at 11 a.m. — Stony Plain Lac Ste. Anne—Parkland UCP MLA Shane Getson will participate in a groundbreaking ceremony for the affordable housing development 17 Folkstone Place.

October 18 at 11 a.m. — Edmonton Climate Activist Greta Thunberg will march from Beaver Hills House Park to the Alberta legislature to take part in a rally organized by Indigenous Climate Action, Edmonton Youth for Climate, Beaver Hills Warriors, Climate Justice Edmonton and other groups.

October 18 at 4 p.m. — Edmonton Culture, Multiculturalism and Status of Women Minister Leela Aheer will speak at the Marvel: Universe of Super Heroes event at the Telus World of Science.

October 18 at 5 p.m. — Edmonton The Alberta Union of Provincial Employees is hosting a “Cutback? Fightback!” rally on the steps of the legislature.

Topics of conversation

● Conservative Party of Canada Leader Andrew Scheer announced, if his party forms government and he becomes prime minister, his first bill would scrap the federal carbon tax.

● Former Freedom Conservative Party Leader Derek Fildebrandt incorporated a new business called Wildrose Media Corp. “Coming soon,” he announced on Twitter.

● United We Roll, the group that organized a trucking convoy to Ottawa in support of Canada’s oil and gas sector, is planning to hold a counter-rally against climate activist Greta Thunberg. ○ “The pro Canadian energy rally tomorrow is a peaceful family event,” the group said in a Facebook post Thursday. “If schools can take our kids out to support a Canadian climate emergency hoax then parents in Alberta can take our kids out to show support for our oil and gas.” ○ United We Roll organizer Glen Carritt told the Red Deer Advocate the group had asked to hold a rally at the government’s McDougall Centre in Calgary, but the premier’s office denied the request.

● The Alberta Gaming, Liquor and Cannabis commission says that edibles, extracts and topicals will be available for sale in both retail locations and on AlbertaCannabis.org by early-to-mid January 2020. ○ A spokesperson for the commission said there will likely be a limited number of products available initially, while producers determine the market demand. ○ Finance Minister Travis Toews said his government’s priority is the safety of products and keeping edibles and other cannabis products out of the hands of youth. ○ One year after legalization, Alberta has more cannabis retailers than other provinces by far, with 306 approved shops.

● The NDP obtained a letter from the Alberta Energy Regulator, in which the regulator says it is planning for an 18 per cent cut to its budget in advance of the United Conservative government’s first provincial budget. ○ The leaked letter, signed off by AER president and CEO Gordon Lambert, says he will be making organizational changes to deal with the new reality. ○ “I recognize this uncertainty is stressful,” Lambert wrote. ○ NDP Energy critic Irfan Sabir noted the potential cuts aren’t in line with the UCP’s goals for speeding up approval times for energy projects.

● The NDP slammed Finance Minister Travis Toews for a $125-ticket “budget breakfast” to be held in Edmonton the day after the provincial budget is expected to be tabled. ○ “It’s incredibly insulting to the people of Alberta to have a Finance Minister who won’t go out and talk to Albertans about the budget, unless they fork over cash to the UCP’s coffers,” Heather Sweet, NDP critic for Democracy and Ethics, said in a news release. “If Travis Toews really has a vision for the future of this province, he owes it to Albertans to share it with all of us.”

New briefs — Governmental Ministry of Health The government is expanding the scope of practice for licensed practical nurses (LPNs).

Health Minister Tyler Shandro made the announcement in the legislature’s media theatre Wednesday, stating LPNs will now be able to administer blood and blood products.

LPNs will also now be available to dispense drugs based on prescribers’ instructions, provide ultrasounds for bedside nursing assessments, administer intravenous nutrition, and administer medication by an invasive procedure.

The change in scope of practice will take effect on February 1, 2020, bringing the province’s 16,000 LPNs in line with other jurisdictions in Canada.

Valerie Paice, president of the College of Licensed Practical Nurses of Alberta, said LPNs already receive training for these tasks during their two-year diploma, but regulations — which have not been updated since 2003 — barred them from providing the care.

NDP Health critic David Shepherd said the move is a good one but should not be used as an excuse to roll back wages.

Alberta Union of Provincial Employees vice-president and LPN Susan Slade said she is concerned by the announcement, warning “the UCP government is asking LPNs to do more with less,” despite frontline workers already being stretched thin.

“Increasing their workload without any firm promise to increase staffing levels or other resources is not good for workers or health care delivery. Working conditions are patient conditions.”

New briefs — Non-governmental NDP says UCP government has failed to bring back jobs and investment The NDP Opposition slammed the UCP’s performance on jobs and the economy, citing recent jobs numbers and rig counts.

The Baker Hughes Rig Count recently reported there was an average of 91 active rigs operating in Alberta per week since the end of July, down from 141 active rigs per week in the same time period last year. That would make it the worst drilling season on record — lower than 113 rigs active in 2016.

“We can now see Jason Kenney and the UCP have completely mismanaged the oil and gas sector with their inability to get our resources to market or attract investment,” NDP Energy critic Irfan Sabir said in a news release.

The NDP also cited Statistics Canada job numbers, which report the province has lost 15,000 jobs in the oil and gas sector since the UCP formed government and that 12,000 people left the workforce last month.

“They put all their eggs in the $4.5 billion corporate tax gift basket. Now that their plan has failed, Albertans are the ones left suffering,” said NDP Economic Development critic Deron Bilous. “All we’ve seen is companies boost stock dividends for bankers out east without creating any jobs in the industry.”

Appointments and employments Ministry of Advanced Education ● Bridget Hennigar was appointed to the board of governors of Grande Prairie Regional College, effective December 13, 2019, for a term set to expire on December 12, 2022. ● Luke Day and Sarah MacKenzie were appointed to the board of governors of the Medicine Hat College until October 16, 2022. ● Chris Lavin, Lily Le and Philomina Okeke-Ihejirika were appointed to the NorQuest College board of governors until October 16, 2022. The order-in-council rescinded three previous appointments.

Question Period NDP kickoff

● NDP MLA for Edmonton—Glenora Sarah Hoffman led question period by asking about the lack of improvement in the Alberta economy, including record low active rigs and thousands of jobs lost in the oil and gas sector. ○ “How long before this premier realizes that his corporate gift hasn’t increased drilling and hasn’t created jobs? When will he wake up?” Hoffman asked.

● Pointing to the 5,000 new jobs created in September, Premier Jason Kenney said the NDP’s record is overseeing the worst recession in the province’s history since the great depression. ○ “Obviously, no government is going to be able to turn around that disaster overnight, but we’re doing everything we can,” Kenney replied.