Unplugging the Dirty Energy Economy / Ii
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Polaris Institute, June 2015 The Polaris Institute is a public interest research organization based in Canada. Since 1997 Polaris has been dedicated to developing tools and strategies to take action on major public policy issues, including the corporate power that lies behind public policy making, on issues of energy security, water rights, climate change, green economy and global trade. Acknowledgements This Profile was researched and written by Mehreen Amani Khalfan, with additional research from Richard Girard, Daniel Cayley-Daoust, Erin Callary, Alexandra Bly and Brianna Aird. Special thanks to Heather Milton-Lightening and Clayton Thomas-Muller for their contributions. Cover design by Spencer Mann. This project was made possible through generous support from the European Climate Fund Polaris Institute 180 Metcalfe Street, Suite 500 Ottawa, ON K2P 1P5 Phone: 613-237-1717 Fax: 613-237-3359 Email: [email protected] www.polarisinstitute.org i / Polaris Institute Table of Contents SUMMARY ............................................................................................................................................................. 1 INTRODUCTION ..................................................................................................................................................... 4 CHAPTER 1 - ORGANIZATIONAL PROFILE ............................................................................................................... 6 1.1 TRANSCANADA’S BUSINESS STRUCTURE AND OPERATIONS ............................................................................................... 7 1.1.1 Gas Pipelines ................................................................................................................................................ 7 1.1.2 Liquids Pipelines ......................................................................................................................................... 10 1.1.3 Energy ........................................................................................................................................................ 11 1.2 EXECUTIVES ........................................................................................................................................................... 14 1.3 NOTABLE ADVISORS, EMPLOYEES, AND FORMER EXECUTIVES AND BOARD MEMBERS ............................................................ 14 1.4 TRANSCANADA’S BOARD OF DIRECTORS ..................................................................................................................... 16 1.5 UNIVERSITY & COLLEGE LINKS AND DONATIONS ........................................................................................................... 19 1.5.1 First Nations/Aboriginal grants and scholarships ...................................................................................... 20 1.6 LEGAL HISTORY (SELECTED CASES) ............................................................................................................................. 21 1.7 GOVERNMENT AGENCIES THAT REGULATE TRANSCANADA’S PROJECTS .............................................................................. 25 CHAPTER 2 - ECONOMIC PROFILE ........................................................................................................................ 27 2.1 FINANCIAL RESULTS ................................................................................................................................................ 27 2.2 TRANSCANADA’S FINANCIAL VULNERABILITIES ............................................................................................................. 28 2.3 ECONOMIC VULNERABILITIES OF THE PIPELINE INDUSTRY ................................................................................................ 29 2.4. DIVESTMENT TOOLS ............................................................................................................................................... 30 2.5 TRANSCANADA’S MAIN CUSTOMERS AND MARKETS ....................................................................................................... 31 2.6 MAIN COMPETITORS ............................................................................................................................................... 32 2.7 FUTURE PLANS ....................................................................................................................................................... 33 2.7.1 Expansion Projects - Canada ...................................................................................................................... 34 2.7.2 Expansion Projects – United States ............................................................................................................ 38 2.7.3 Expansion Projects – Mexico ...................................................................................................................... 39 2.7.4 Expansion Projects – South America .......................................................................................................... 39 2.8 JOINT VENTURE PARTNERSHIPS ................................................................................................................................. 40 2.9 CLIMATE CHANGE STRATEGY – CARBON CAPTURE AND STORAGE .................................................................................... 40 CHAPTER 3 - POLITICAL PROFILE .......................................................................................................................... 41 3.1 TRANSCANADA’S LOBBYING DISCLOSURES IN CANADA ................................................................................................... 41 3.1.1 Federal Lobbying Topics ............................................................................................................................. 42 3.1.2 Cabinet Ministers and other notable meetings .......................................................................................... 42 3.1.3 Consultant lobbyists ................................................................................................................................... 45 3.1.4 Lobbying in Canada’s Provinces and Municipalities ................................................................................... 45 3.2 HOW CANADIAN GOVERNMENTS LOBBY IN SUPPORT OF TRANSCANADA ........................................................................... 46 3.2.1 Alberta’s support to TransCanada ............................................................................................................. 47 3.2.2 How Industry defeated tar sands legislation in the US .............................................................................. 48 3.3 TRANSCANADA’S LOBBYING IN THE US ....................................................................................................................... 48 3.3.1 Support from Industry Groups, Oil Companies and the Koch Brothers ...................................................... 49 3.3.2 TransCanada’s lobbying in Nebraska (dollar figures in USD) ..................................................................... 50 3.4 THE REVOLVING DOOR ............................................................................................................................................ 51 Unplugging the Dirty Energy Economy / ii 3.5 INDUSTRY ASSOCIATIONS ......................................................................................................................................... 51 3.5.1 Canadian based Industry Associations ....................................................................................................... 52 3.5.2 U.S. based industry associations ................................................................................................................ 53 3.5.3 Mexican based industry associations ......................................................................................................... 54 3.6 ‘PUBLIC INTEREST’ AND ASTROTURF GROUPS ............................................................................................................... 54 3.6.1 Advertising, PR Firms and Law Firms ......................................................................................................... 55 3.6.2 TransCanada’s engineered positive environmental reviews of Keystone XL .............................................. 58 3.7 CORPORATE WELFARE ............................................................................................................................................. 58 3.8 COMMUNITY ENGAGEMENT ..................................................................................................................................... 59 3.8.1 Municipalities, Local Organizations and the Public.................................................................................... 60 3.8.2 Local Resistance to Regulators ................................................................................................................... 61 3.8.3 Open Houses and the ‘General Public’ ....................................................................................................... 61 3.8.4 Land Acquisition and Landowner Consultation .......................................................................................... 62 3.8.5 Aboriginal Groups ...................................................................................................................................... 64 3.8.6 TransCanada’s Aboriginal Engagement