Alberta electricity price manipulation investigation.

[Maxt]

http://www.calgaryherald.com/touch/news/politics/TransAlta+Corp+accused+manipulating+electricity+market/9555676/story.html?rel=841484
Any TA power engineers on here that can speak to this? The next question is how independent of industry is the AUC ?

[Unknown303]

Sounds like crazy talk to me! :angel:

[googe]

Originally posted by Maxt
http://www.calgaryherald.com/touch/news/politics/TransAlta+Corp+accused+manipulating+electricity+market/9555676/story.html?rel=841484
Any TA power engineers on here that can speak to this? The next question is how independent of industry is the AUC ?

Haha, not a chance that TransAlta's lawyers are going to let some engineer comment on allegations this serious.


Sounds like one of the Enron scandals again!

[Darkane]

Originally posted by Maxt
http://www.calgaryherald.com/touch/news/politics/TransAlta+Corp+accused+manipulating+electricity+market/9555676/story.html?rel=841484
Any TA power engineers on here that can speak to this? The next question is how independent of industry is the AUC ?

I would not want to be the Shift Supervisor on those days :rofl:

Wonder if his ticket is Gonzo.

[Inzane]

Originally posted by googe
Haha, not a chance that TransAlta's lawyers are going to let some operator comment on allegations this serious.

Fixed.

The OP used the term "power engineer". You understand the difference, right?

[eblend]

AUC is funded by the industry, but are mandated by the GOA.

I know people who work in AUC and are at hearings all the time, including the last 2 big transmission lines, and from what they tell me, they have until recently never told anyone no outright. The hearings are held, the routes and complaints are argued over and adjusted to make most people happy. From what I know of AUC, i think they are very impartial on their decisions. They can't simply say "no", every single item has to be explained and deliberated.

Some of the decisions that my friend has worked on are like 7 thousand pages long...

Also, the whole EUB spy scandal that happened back in the day made AUC work really hard to upkeep their image. Hell AUC isn't even the government but the management at AUC follows pretty much anything that is done in the government. The government says they will require managers to disclose expenses, AUC does the same, government says a wage freeze, AUC does the same.

[BigMass]

wannabe Enron

[Darkane]

Originally posted by Inzane


Fixed.

The OP used the term "power engineer". You understand the difference, right?

Oh god not this again lol.

Are you by chance an professional engineer?

[lasimmon]

Originally posted by Darkane


Oh god not this again lol.

Are you by chance an professional engineer?

Moot point.

[codetrap]

Whatever... if they're guilty, they pay the fine and then just add it back to our bill as a rate rider for something stupid like "Pension shortfall".

[Unknown303]

Engineers are the worst

[Cos]

.

[Toma]

This is exactly why all essential service MUST be non profit and or publicly owned and run.

Anyone that even mentions "privatization" should immediately be jailed for corruption and treason (against the people) lol

[pheoxs]

Just as bad as this:

http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/cold-weather-makes-natural-gas-a-hot-commodity/article16722076/

Natural gas went up almost 6x in value from ~3-5$ a gigajoule to 38$ one day.

[Feruk]

Originally posted by Toma
This is exactly why all essential service MUST be non profit and or publicly owned and run.
I hate to say it, but that's true. If energy distribution was public, companies like Transalta should be allowed to do all the price manipulating they want.


Originally posted by Unknown303
Engineers are the worst
Agreed, bunch of smart asses! We need more priests for truth. ;)

[eblend]

Originally posted by Cos



As for the EUB scandal, that is why we have ERCB and AUC now so that isnt a good comparison.

:werd:

Just a minor correction, ERCB is no more, they are now the AER

[Maxt]

Originally posted by eblend

Also, the whole EUB spy scandal that happened back in the day made AUC work really hard to upkeep their image. Hell AUC isn't even the government but the management at AUC follows pretty much anything that is done in the government. The government says they will require managers to disclose expenses, AUC does the same, government says a wage freeze, AUC does the same.
Following the Governments example might not be a good thing, since the government we have had for the last while has had a penchant for stacking its oversight bodies with PC cronies and bagmen, to the point no one takes the decisions handed down seriously. The PC's have no fear of putting anything into investigation or inquiry because they already know the outcome..lol..

[Cos]

.

[themack89]

Originally posted by Toma
This is exactly why all essential service MUST be non profit and or publicly owned and run.

Anyone that even mentions "privatization" should immediately be jailed for corruption and treason (against the people) lol

Not true, just need the right regulation system. Even completely Government owned essential services will have dark sides that may or may not be obvious. A large issue with doing complete Govt owned utilities is the methodology they use to determine when to expand, where to expand, and how to go about the expansion. Typically influenced by political positions. Private firms have been historically better at choosing where to invest and how to go about it. Incentive for innovation to beat out competitors is also eliminated.

Intelligent regulation and incentive schemes are the best solution (in my opinion)....An example would be the Vogelsang and Finsinger Mechanism LINK (http://elsa.berkeley.edu/regulation/ch5.pdf).

Honestly though, regulatory economics is the forefront of economic discovery these days and it can get horrendously complicated. So I couldn't explain any simpler than the link I provided.

I do know of systems, particularly in electricity pricing, which has produced more efficient market outcomes than what we have in Alberta. I'll see if I can find them again.

[ZenOps]

Well, at least they aren't charging people for air - yet.

[Sugarphreak]

...

[eblend]

Originally posted by Sugarphreak


Odd, I had no idea about this... and yet I still use ERCB Directive-055 for storage containment:rofl:

I know only because I used to work there, and some of my friends still do.

AER is also now 100% industry funded just like AUC (used to be 50/50) so I don't know how much influence the government has on them if any, other than the fact that they have to exist by law.

[dubhead]

"TransAlta is very committed that we followed all appropriate protocols" she said. "We believe there has been some lack of clarity in the marketplace"

Ah yes the Bill Belichick move "I didn't understand the rules"

[Gainsbarre]

More details about the allegations are posted here: http://albertamsa.ca/uploads/pdf/Archive/00-2014/0630%20Notice%20to%20AUC%20140225.pdf

For those in the power industry, Scott Connelly is a familiar name...

http://www.ft.com/cms/s/0/dac712ec-eebd-11e2-98dd-00144feabdc0.html#axzz2uTp9Q1Vd

http://www.reuters.com/article/2012/11/01/us-barclays-ferc-manipulation-idUSBRE8A004X20121101

[OU812]

Why wouldnt you do shutdowns for maintenance during peak hours? The shit companies spew out. I mean thats why all the highrises have their elevator maintenace done during rush hours and why CT take their buses off the road right?

[ipeefreely]

Originally posted by eblend
AER is also now 100% industry funded just like AUC (used to be 50/50) so I don't know how much influence the government has on them if any, other than the fact that they have to exist by law.
AER is still under the Department of Energy and is accountable to the Mister of Energy.

"The AER answers directly to the Executive Council (Cabinet) of Alberta through the Minister of Energy, but makes its formal decisions independently in accordance with the six statutes it administers."
About AER (http://www.aer.ca/about-aer)

They just moved things around to stream line the applications process (One Window to the Government), brought in field inspectors that formally worked for ESRD and changed how they are funded... etc.

[Cos]

.

[Maxt]

More.

http://www.calgaryherald.com/news/alberta/seeks+against+energy+traders+TranAlta+case/9565197/story.html

The counter attack on the MSA is pretty ballsy, this is going to be a pivotal point for Electricity deregulation and will probably end up becoming a major election issue next time around. Be interesting to hear the Wildroses take on this, will they condemn open market deregulation or just propose more checks and balances.

[schocker]

Originally posted by Sugarphreak
Odd, I had no idea about this... and yet I still use ERCB Directive-055 for storage containment:rofl:
That was last updated December.......2001. They just changed the logo to AER and had previously done the same to ERCB from EUB as the document still has EUB everywhere in the document. DDS is still an EUB domain :rofl:

[Toma]

Originally posted by Maxt
More.

http://www.calgaryherald.com/news/alberta/seeks+against+energy+traders+TranAlta+case/9565197/story.html

The counter attack on the MSA is pretty ballsy, this is going to be a pivotal point for Electricity deregulation and will probably end up becoming a major election issue next time around. Be interesting to hear the Wildroses take on this, will they condemn open market deregulation or just propose more checks and balances.

Please, those loons are even right of the conservatives lol.

They'll talk big, then make it worse.

[Sugarphreak]

...

[codetrap]

Wow.. just wow.

http://www.cbc.ca/news/business/transalta-admits-to-manipulating-electricity-prices-1.976969


Top executives at TransAlta approved the strategy of shutting down power plants temporarily to drive up electricity prices for millions of dollars in profits — and company officials congratulated each other about how well it was working, according to documents filed with the provincial electricity regulator.

Three TransAlta vice-presidents, including the vice-president of regulatory and legal affairs, approved a portfolio bidding strategy in November 2010 to stage discretionary plant outages during peak periods to drive up the price of electricity, the market watchdog alleges in documents filed to the Alberta Utilities Commission (AUC) this week.

None of the allegations have been proven and TransAlta denies any wrongdoing. The matter has yet to be heard and adjudicated by the AUC.

“We’re looking forward to a full and fair hearing from the AUC,” TransAlta spokeswoman Stacey Hatcher told the Herald this week, saying plant shutdowns were all for maintenance, operations or safety reasons.

“We do stand behind our employees and we do stand behind our conduct and we will defend it.”

Alberta’s Market Surveillance Administrator (MSA) alleges that four times in 2010 and 2011, TransAlta deliberately shut down major coal-fired generators, usually at the supper hour — the super peak — on extremely cold winter days, to enhance their profits through trades and sales of electricity from other plants they controlled.

Shutdowns of three TransAlta plants in December 2010 garnered a $6.69-million profit alone — even taking into account penalties TransAlta had to pay the utilities that owned the rights to the power it produced.

When three plants went down Dec. 14, 2010, the electricity price spiked to $992.25, just short of the maximum.

TransAlta officials congratulated each other in e-mails when the numbers began rolling in.

One of the authors of the strategy, Nathan Kaiser, applauded the “great work” by plant managers on their co-ordinated effort in taking the plants down at the same time.

“All three of these outages were discretionary and all three plant managers worked with us on the timing,” Kaiser stated in an e-mail, quoted in the MSA documents.

“It means juggling schedules and moving into position faster than they might have otherwise, but we received full support through the process. Great Work!”

A followup memo noted that the daily price more than tripled after the units were taken off-line.

The next TransAlta discretionary shutdown in February 2011 triggered an energy emergency alert in which the Alberta Electricity System Operator had to call on all other available generators to supply electricity to the grid to meet the demand to avoid rolling blackouts.

“The MSA concludes that TransAlta disrupted or impaired the safety or reliability of the interconnected system by scheduling a discretionary outage during a time frame where supply was already low and demand was high,” say the documents filed with the commission.

The outage caused the daily price to reach an average of $618 per megawatt-hour — the second-most expensive day for power consumers in Alberta history.

Documents allege the shutdown garnered TransAlta nearly $8.5 million over just three days.

When TransAlta took its plants and their committed power off-line, it left their competitors scrambling to purchase electricity from other sources at a price often higher than what they were selling it to consumers, the documents say.

[e31]

One will have to look into the true motives for the Western Alberta Transmission Line project. After all it was conceived around the same time frame as all this price gouging crap, and they want taxpayers to be on the hook for 1.3 billion to 1.7 billion.

[spikerS]

I think that when price fixing and gouging like this are found, that fines should equal the profits made, plus an additional 15%. Also, then mandating that they are not able to increase prices for 2 years should be a big enough deterrent to stop this from happening in the future.

[Cos]

.

[Maxt]

Originally posted by Sugarphreak
Even if TransAlta was manipulating the market, how are they going to prove anything?

I am sure they have legitimate paperwork handy for the power plant shut downs, and even if it was a logistical mastermind to have them shut down to drive up prices, unless they can prove they knowingly did it, there is no case.
A distilled version of the MSA story.
http://www.calgaryherald.com/news/alberta/TransAlta+officials+approved+plant+shutdowns+documents+show/9565795/story.html
Transalta isn't denying they took action to drive up the prices and distorted the market, it looks like they are taking the stance that no one told them they couldn't do it.

[Cos]

.

[Maxt]

Originally posted by e31
One will have to look into the true motives for the Western Alberta Transmission Line project. After all it was conceived around the same time frame as all this price gouging crap, and they want taxpayers to be on the hook for 1.3 billion to 1.7 billion.

https://www.robanderson.ca/weekly-blog/8/456-electrical-blackouts-must-be-explained

[HiTempguy1]

Originally posted by spikers
I think that when price fixing and gouging like this are found, that fines should equal the profits made, plus an additional 15%. Also, then mandating that they are not able to increase prices for 2 years should be a big enough deterrent to stop this from happening in the future.

Yep. Take away the financial incentive, and then hit them a bit more for it. Why on earth they'd be charged any less is beyond me (oh yea, because the government is in industries pocket of course).

[spikerS]

Originally posted by HiTempguy1


Yep. Take away the financial incentive, and then hit them a bit more for it. Why on earth they'd be charged any less is beyond me (oh yea, because the government is in industries pocket of course).

well my train of thought is this:

Scenario A:
Do everything by the book and make $15M in profit

Scenario B:
Break the law, make $50M in profit, take a $20M fine for it if they get caught...

I mean, all things equal, if I don't have to worry about jail time, I am going option B every time...

Now, if option C was there:
Break the law, make $50M in profit, and face $58M in fines...breaking the law does not seem like such a great idea any more...

[M.alex]

Originally posted by Cos


That isnt how the market works unfortunately. They bid every day before 10am for the following day per hour, per generator, etc. etc. It isn't an MSA type contract.

they can change offers up to 2hrs before the hour

[Cos]

.

[Unknown303]

Plus the coal fire plants around Wabamun are usually so incredibly low in the merit order. It's when that cheap power is offline for maintenance that the pool price jumps.

[Cos]

.

[Maxt]

http://www.calgaryherald.com/news/politics/RCMP+probe+urged+into+power+plant+scandal/9579402/story.html

[googe]

Penalties have to be far more than 15%, because if there is less than 15% chance of getting caught, you basically have a positive EV by cheating. If it's far higher, it makes it not worth it to try.

[Maxt]

http://www.calgaryherald.com/news/politics/Damages+could+160M+alleged+electricity+market+manipulation/9660900/story.html

[colinderksen]

On a side note I heard a "rumour" Altalink has been sold, but has not been announced yet.

[Unknown303]

Originally posted by colinderksen
On a side note I heard a "rumour" Altalink has been sold, but has not been announced yet.

You're crazy.

[colinderksen]

Originally posted by Unknown303


You're crazy.

SNC put it up for sale so it can't be that crazy can it?

[FraserB]

Originally posted by colinderksen


SNC put it up for sale so it can't be that crazy can it?

Hopefully Unknown has enough of a clue to know if AltaLink has been sold lol.:rofl:

[colinderksen]

Originally posted by FraserB


Hopefully Unknown has enough of a clue to know if AltaLink has been sold lol.:rofl:


Very good

[Cos]

.

[Unknown303]

If only we knew someone that worked there that didn't sign a NDA...

[colinderksen]

Originally posted by Unknown303
If only we knew someone that worked there that didn't sign a NDA...

Well keep us in the loop.

[themack89]

@ original topic...

I heard from someone who may work at TransAlta (but I couldn't possibly comment on that) that it is the MSA dicking them around. Saying X is okay and then back pedaling on it when they make too much money off of it.

[M.alex]

Originally posted by themack89
@ original topic...

I heard from someone who may work at TransAlta (but I couldn't possibly comment on that) that it is the MSA dicking them around. Saying X is okay and then back pedaling on it when they make too much money off of it.

I'm sure TransAlta wouldn't have a jaded view at all :rolleyes: :rolleyes: :rolleyes: :rolleyes:

[Maxt]

http://www.calgaryherald.com/news/politics/TransAlta+insists+followed+power+rules/9785377/story.html

As TransAlta Corp. faces accusations it manipulated power prices to bolster profits, the company’s top brass insisted Monday it followed the rules set out by Alberta’s regulator and acted no differently than other electrical suppliers.

In February, Alberta’s Market Surveillance Administrator filed documents with the Alberta Utilities Commission alleging that on four occasions in 2010 and 2011, the company shut down coal-fired power plants during hours of peak operation to drive up electricity prices.

In a meeting with the Herald’s editorial board Monday, TransAlta president Dawn Farrell and board chair Gordon Giffin said all the shutdowns happened because units needed maintenance or repair.

The company maintains, however, that it was allowed under MSA rules to co-ordinate the timing of the shutdowns in a way that could affect the price.

“Every other power company in the province was doing the same thing. This is not TransAlta doing some weird scheme off on its own in a dark corner that nobody else does. Every single generator, everybody who bids into this market, has to have considered the same things in terms of how they bid into the market,” said Farrell, who described the company as “rule followers.”

“I don’t see that TransAlta stood out alone here. I don’t see that TransAlta did something just so it could fill its coffers. TransAlta worked hard to follow the rules and that’s what we’re going to show.”

Farrell said Alberta’s deregulated electricity market works to reach an optimal price that allows for companies to take in enough revenue to allow for further capital expansion to meet future demand.

“We don’t set the rules. We operate within the rules,” added Giffin.

“The morality of it, from a public policy point of view is an interesting question . . . you’ve got to relate all of the moving parts, because if you said to that person who felt like they paid too much on a given day, ‘Would you rather have it dark in January because there’s no capacity being built?’ The answer would be, well, no, now I see how the balance works.”

Giffin said under current rules, suppliers are still able to co-ordinate the timing of operations to affect price. In this case, the dispute is whether it could be done with customers under power purchase arrangements.

A former United States ambassador to Canada, Giffin said TransAlta’s integrity is under attack and it will fight to defend its reputation. The company has filed complaints with the AUC over the MSA’s handling of the investigation.

No one was available from the MSA to comment Monday.

But in its filings with the AUC, the electricity market watchdog alleges that the closure of three TransAlta plants on Dec. 14, 2010, garnered a $6.69-million profit, even taking into account penalties TransAlta had to pay the utilities that owned the rights to the power it produced.

The next TransAlta discretionary shutdown in February 2011 triggered an energy emergency alert in which the Alberta Electricity System Operator had to call on all other available generators to supply electricity to the grid to meet the demand to avoid rolling blackouts.

Documents allege the shutdown garnered TransAlta nearly $8.5 million over just three days.

When TransAlta took its plants and their committed power off-line, it left their competitors scrambling to purchase electricity from other sources at a price often higher than what they were selling it to consumers, the documents say.

The MSA has estimated potential damages from the shutdowns could run as high as $160 million, with the fight to be settled in an AUC hearing likely to be held later this year or in early 2015.

The Progressive Conservative government has kept mum on the allegations and Premier Dave Hancock said Monday “it would be inappropriate for me to get into the middle of it” when the issue is before the regulator.

But opposition parties say the alleged conduct shows the flaws with Alberta’s electrical market.

Wildrose MLA Joe Anglin said he doesn’t buy TransAlta’s argument it was operating fully within the rules, noting the MSA is in the best position to interpret the regulations.

“We’ll see the outcome of the hearing process but, clearly, what we have going on is a system that is to the disadvantage of consumers,” Anglin said.

Liberal MLA Kent Hehr said TransAlta may well have been following the rules, but it is up to the Tory government to ensure any such loopholes have been closed.

“The government has set up a policy of the day that allows economic withholding to occur and it appears that TransAlta used the strategy many times and the government remained mute on the issue and the watchdog remained mute on the issue,” he said.

— With files from Deb Yedlin, Calgary Herald

[email protected]

[Cos]

.

[HiTempguy1]

So... is their argument basically "everyone else is doing it!"?

If so, LOL.

[Unknown303]

Having any large generation out in Alberta during peak loading times is very hard to work around. I imagine the argument will be why they don't schedule these outages during off peak times of year.

[Tik-Tok]

The defence is that they're legally allowed to fuck their customers in the ass, so they do. Just like their competition. Same old "Don't hate the player, hate the game." spiel.

[colinderksen]

Originally posted by Unknown303


You're crazy.
1 month later. I see Altalink was sold.

[Unknown303]

Originally posted by colinderksen

1 month later. I see Altalink was sold.

:rofl: I wasn't allowed to say anything.

[colinderksen]

Originally posted by Unknown303


:rofl: I wasn't allowed to say anything.

Be interesting to see if they make any large changes to the company in the next few years.

[Cos]

.

[Maxt]

http://www.calgaryherald.com/business/energy-resources/TransAlta+pays+149M+settle+market+manipulation/9892602/story.html?__lsa=9306-6f16

CALGARY — TransAlta Corp., facing charges of utility market manipulation in Alberta, has agreed to pay $149 million to settle unfair pricing allegations in California dating back to 2000-2001.

On Wednesday, the U.S. Federal Energy Regulatory Commission approved the payment by subsidiary TransAlta Energy Marketing to public utilities affected by manipulation of electric and natural gas prices during the California energy crisis 13 years ago.

The crisis was marked by large-scale blackouts due to a shortage of power as the state deregulated its power markets.

“We find that the settlement is fair and reasonable and in the public interest, and it is hereby approved,” the FERC said in a decision posted on its website, noting that the deal is expected to “avoid further litigation, provide monetary consideration, eliminate regulatory uncertainty, and enhance financial certainty.”

The decision explains that FERC instituted formal hearing procedures under the Federal Power Act in 2000 to investigate the “justness and reasonableness” of public utility sellers’ rates in the California Independent System Operator Corp. and California Power Exchange markets.

In 2002, FERC started a fact-finding investigation into alleged manipulation of prices and, in 2003, directed staff to “investigate anomalous bidding behaviour and practices,” the decision says.

TransAlta president and chief executive Dawn Farrell welcomed resolution of the long-standing issue while pointing out that TransAlta made no admission of wrongdoing.

“We’re pleased to move forward and focus on a positive commercial relationships in with the State of California,” said Farrell. “It was in the best interests of our company to settle this matter. It was time to put this behind us. The settlement recognizes that TransAlta admits to no wrongdoing during the crisis.”

The settlement amount will be funded from TransAlta’s estimated receivables of $52 million and interest of $45 million, according to the decision. TransAlta will also make two additional separate payments of $26 million, the first of which will be due within five business days of the settlement’s effective date.

In Alberta, meanwhile, charges that TransAlta manipulated power prices during the winter of 2010 and 2011 are to go to a public hearing before the Alberta Utilities Commission in August.

The Market Surveillance Administrator, the power market regulator, claims that TransAlta engaged in “anti-competitive conduct” in 2010 and 2011 by taking three coal-fired power plants off-line on four cold days, during high-demand hours and in periods when other players in Alberta’s competitive power market were the least likely to be able to pick up the slack.

The activity drove up electricity prices and allowed TransAlta to reap as much as $16 million in additional profits, it claims.

TransAlta denied it broke any rules and lodged a complaint against the MSA, which was dismissed by the AUC.

TransAlta spokeswoman Stacey Hatcher said the California and Alberta cases “could not be more dissimilar.”

She said in an e-mail that TransAlta was invited to provide power to California during an extraordinary period of energy need in 2000 and 2001.

“What followed was simply a disagreement over pricing of the power,” she said.

In 2012, TransAlta was fined $370,000 for power price manipulation in Alberta but said at the time the rules were unclear.

[ZenOps]

The more that the power companies get sued, the more likely that California will start to get blackouts. No power at any price, no matter how high. That is hardball, and it can be thrown at any time.

Just sayin... You don't shoot the donkey that is pulling the cart, you don't put a toll on railways, and you don't whip the guy that is turning the treadmill that is creating the electricity.

Harper government making big mistakes in that it does not understand how the real world works. They live to some sort of imaginary standard that only exists alongside unicorns and rainbows.

DxVEgxidiJk

At the current rate of money printing, California should be paying at least 35 cents per KWH by 2020. Alternately, they can refuse to pay - and risk lasting (weeklong) blackouts.

[clem24]

Well I can see where they stand on it - it's not in the rules, therefore it's legal. It's like a tax loophole; you can exploit it until the government finds it and closes it.

[Maxt]

Guilty as charged...Now lets see a real penalty and a ratepayer rebate...

http://calgaryherald.com/news/politics/auc-finds-transalta-breached-the-rules-in-power-price-fixing-case

Calgary-based TransAlta Corporation manipulated power prices and engaged in insider trading when it shut down its coal-fired power plants during peak periods nearly five years ago, according to a decision handed down by the Alberta Utilities Commission on Monday.

The commission found that TransAlta could have deferred each of the outages to off-peak hours but chose instead to take them during peak or super-peak hours to maximize the benefit to its own portfolio of generating assets.

“The commission is satisfied that TransAlta’s conduct in this regard was unquestionably deliberate and designed to move market prices away from a competitive market outcome by timing the outages at its coal-fired units … at times of high demand and/or constrained supply,” it said in a 217-page ruling.

AUC spokesman Jim Law said a hearing will be held to determine the administrative penalty.

The commission can levy fines of $1 million per day for each infraction that occurred, and can also order the utility to return the money it made to electricity consumers and competitors, Law said.

TransAlta said in a statement it is reviewing the ruling and considering an appeal to the Alberta Court of Appeal.

TransAlta and two employees — Nathan Kaiser and Scott Connelly — were accused of violating the Electric Utilities Act and the Fair, Efficient and Open Competition Regulation by driving up electricity prices though shutdowns of coal-fired power plants in late 2010 and early 2011.

The supper-hour shutdowns on cold winter nights increased electricity prices by 10 to 60 per cent, and forced the companies that owned the rights to the power to scramble to purchase high-priced electricity for their customers.

The shutdowns in 2011 also triggered an emergency alert over the short supply of power.

While finding TransAlta violated the provincial acts, the commission exonerated the two traders.

“The AUC found that one of two traders accused of insider trading had not done so while the other trader raised concerns repeatedly but was nonetheless authorized by senior TransAlta managers,” Law said.

The Market Surveillance Administrator (MSA), the power market watchdog, claimed TransAlta made nearly $16 million profit from the shutdowns by selling power it owned at other facilities after driving up prices and by trading in Canada’s only deregulated electricity market.
TransAlta argued that holding back power from the grid to reduce supply and increase prices is permitted under market rules, but the commission flatly rejected the argument.

“The commission finds that, a reasonable person in similar circumstances, would not have embarked upon such a strategy without first seeking express confirmation from the MSA that the conduct in question was lawful,” the regulator said in its decision. “This, TransAlta did not do.”

Consumer groups and opposition party critics applauded the commission’s decision, but called on it to send a clear signal to utilities that price-fixing cannot be condoned.

“The wholesale market, that was deregulated in 1996 and the years thereafter, has now received a black eye,” said Alberta Consumers Coalition lawyer Jim Wachowich. “It’s very difficult to know if these things can go on … and if we are going to be able to punish the wrongdoers.”

A better system would have mechanisms that don’t have opportunities for wrongdoing, he said.

Wildrose critic Don MacIntyre said it is critical TransAlta receives more than a slap on the wrist.

“I think that any penalty should take away any motive for companies to manipulate prices in the system again,” he said. “This is especially offensive given the amount of people on fixed incomes who had to pay higher power prices just to improperly top off a company’s bottom line.”

PC energy critic Rick Fraser said the party respects the decision and wants “to work with industry to implement good practices that benefit Albertans.”

Alberta Party Leader Greg Clark urged the NDP government to overhaul the rules to ensure companies can’t withhold electricity to artificially drive up prices and profits.

“I am not convinced others aren’t out there doing the same thing,” he said. “I think there’s a real need to tighten up the language to make sure it’s very clear what is economic withholding and what is not.”

Industry consultant David Gray said he believes TransAlta was caught manipulating prices only because competitors complained the utility was doing it at their expense.

“At the end of the day, the safeguards are there for the competitors, really, not the consumers,” said Gray, a former Utility Consumers Advocate executive director. “It’s not a good situation where you have a lot of companies with the ability to drive up prices X number of hours per year.”

But Enmax, one of the companies affected by the shutdowns, said in a statement the ruling demonstrates Alberta’s legislation and electricity market regulations do work.

TransAlta was fined $370,000 for breaking market rules in November 2010 by restricting electricity imports 31 times over eight days to create an artificial shortage and increase prices.

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[HiTempguy1]

Yay deregulated utilities! Fuck government, public employees, and unions!

:love:

[rx7_turbo2]

I'm shocked and interested in Watts going to happen ;)

[Super_Geo]

Interested in what the fine will be... Hopefully enough to send a message.

[Seth1968]

Originally posted by Super_Geo
Interested in what the fine will be... Hopefully enough to send a message.


The fine will be NOTHING.

[M.alex]

Originally posted by HiTempguy1
Yay deregulated utilities! Fuck government, public employees, and unions!

:love:

You do realize the regulated portion of your bill (delivery charges) accounts for half of your bill and is set to increase sharply over the next years?

[Unknown303]

Originally posted by M.alex


You do realize the regulated portion of your bill (delivery charges) accounts for half of your bill and is set to increase sharply over the next years?

You guys don't even know the half of it. The amount of useless equipment your paying for on your bills is pretty sad.

[M.alex]

Originally posted by Unknown303


You guys don't even know the half of it. The amount of useless equipment your paying for on your bills is pretty sad.

As much as people moan about deregulation, at least it shifts the risk of capital investments to the generation developers. If the NDP ever "smart-regulates" the spot market watch what's going to happen to your bill :rofl:

[Cos]

.

[Maxt]

Which means that it should probably be 225 million or so.

[M.alex]

Step 1 - Fire 250 people to save $25M
Step 2 - Agree to pay a fine of $25M
:rofl:

[Cos]

.