The shadow of Enron appears in Alberta

[tay]

The Alberta Utilities Commission has concluded that TransAlta Corp. deliberately timed power outages at power plants at peak times in order to drive up electricity prices.


The province's market surveillance administrator alleged that the Calgary-based company manipulated the electricity market by shutting down power plants in 2010 and 2011 to drive up power costs during periods when demand was high.


But the commission found that the market surveillance administrator did not prove allegations that TransAlta's compliance policies, practices and oversight were inadequate and deficient.


TransAlta denied all of the allegations, calling them "categorically false."




“I’m no more ticked off than I was before,” Gray said after reading the ruling. “The long and the short is [deregulation] has given companies the opportunity and the ability to drive up the price of power in non-competitive ways.”


Gray added that it came to light because the price affected others inside the electricity market.


“If it had only affected customers, it wouldn’t have been an issue.”


The phrase ‘price fixing’ does not appear in the Commission’s ruling.


Jim Law, a spokesperson with the Commission, said Monday’s ruling is the first of several phases to the body’s work.
Next, he said, will be the penalty phase. However he was aware that TransAlta still has the right to appeal the ruling.


The timing of the penalty phase is an unknown, he said.


“I don’t have a date. Fairly shortly, we’ll issue a letter that answers some of the questions.”






more




TransAlta ‘deliberately’ drove up power prices, Utilities Commission finds | Metro

 

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$56M penalty for TransAlta power price manipulation


TransAlta’s $56-million penalty for manipulating power prices and allowing an employee to engage in insider trading five years ago has been approved by the province’s electricity regulator.

The settlement approved Thursday by the Alberta Utilities Commission (AUC) is believed to be the largest of its kind in Canada and approaches the maximum penalty allowed under provincial law, said AUC spokesman Jim Law.

“This amount is protective and preventative,” said Law. “This is the first time this has happened. Albertans need to have confidence it won’t happen again.”

The magnitude of the penalty “is such that it cannot be considered by TransAlta or any future transgressors as the cost of doing business or a licensing fee for transgressions,” the AUC said in its decision.

It said the contraventions by TransAlta in 2010-11 “resulted in significant, widespread harm by negatively impacting pool price, the forward market, and consumer confidence.”

“The outage contraventions were premised on manipulation and were part of a broad scheme that was systematic and persistent,” the AUC said.

It noted the strategy was approved by TransAlta senior management.

The Calgary-based utility negotiated the settlement Sept. 30 after the AUC ruled in July that it engaged in manipulating power prices and insider trading when it shut down its coal-fired power plants for repairs during peak demand periods during the winter of 2010-11.

Under terms of the deal, TransAlta has agreed to pay a $25-million administrative penalty, plus $27 million to reflect the estimated profits it gained from its contravention of market rules, as well as the $4-million cost of the investigation.

The AUC said TransAlta must pay $31 million within 30 days, but has 395 days to pay the balance, plus interest. By law, the money goes into the province’s general revenue fund, much to the consternation of some consumers who paid inflated power prices.
TransAlta spokeswoman Stacey Hatcher said the utility is now looking to the future.

“TransAlta had reached an agreement with the MSA to finalize the proceeding through a consent order, and with the commissions’ approval (Thursday) of that consent order, we are now focused on moving forward,” she said in a statement.

An expert for the Market Surveillance Administrator (MSA) estimated TransAlta gained an economic benefit of between $22.5 million and $26 million through its contravention of the regulations, according to documents filed with the commission.

In the agreement, TransAlta also surrendered any right to appeal the AUC ruling to the courts and agreed the MSA investigation, which it had harshly criticized, was fair and reasonable.

The MSA, which filed the allegations in February 2014, said the settlement provides reasonable assurance to the public and the commission that TransAlta fully appreciates the seriousness of the contraventions.

TransAlta agreed to a previous settlement for $370,000 in 2012 for failing to operate in a manner that supports the fair, efficient and openly competitive operation of the market.

AUC approves record $56M penalty for TransAlta power price manipulation | Calgary Herald

 

[IdRatherBeSkiing]

The AUC said TransAlta must pay $31 million within 30 days, but has 395 days to pay the balance, plus interest. By law, the money goes into the province’s general revenue fund, much to the consternation of some consumers who paid inflated power prices.
TransAlta spokeswoman Stacey Hatcher said the utility is now looking to the future.http://calgaryherald.com/news/polit...enalty-for-transalta-power-price-manipulation

Once again, the victims get nothing. The government gets rich.

 

[Nuggler]

56M. Chump change. Look out Ontario.