Calgary’s Enmax spends $7.5M to oppose Maine referendum on electricity providers – Calgary | 24CA News
An upcoming referendum south of the border is producing some considerations for Calgary’s publicly-owned electrical energy utility Enmax, which is sending cash to a political marketing campaign within the northeast United States.
In November, voters in Maine will forged a poll on a referendum query on whether or not to dismantle the state’s two largest privately-owned electrical utilities to create a consumer-owned utility known as Pine Tree Power.
One of these electrical energy corporations is Versant Power, at present owned by Enmax after a deal valued at $1.8 billion was finalized in 2020.
Richard Silkman, CEO of Maine-based Competitive Energy Services and supporter of the Pine Tree Power Company marketing campaign, stated the vote comes as Mainers are involved with the rising value of electrical energy and overseas possession in its electrical grid.
“There are folks that are very worried about the cost of energy and they believe that there may be a cheaper way of providing that electricity delivery service,” Silkman instructed Global News. “There’s another constituency that views foreign ownership of utilities as being something that’s antithetical to the way in which we ought to organize society.”
According to the Maine Ethics Commission, Enmax has donated $7.5 million thus far in 2023 to a non-profit group known as Maine Energy Progress to advocate in opposition of a transfer to a publicly-owned electrical energy entity.
The Maine Ethics Commission stated the founding organizations of Maine Energy Progress are Enmax and Versant Power.
“A government-controlled utility company is a risk Mainers can’t afford,” Main Energy Progress’ web site reads.
The non-profit didn’t reply to Global News’ request for remark.
Others against the transfer stated it might value Mainers billions in debt to accumulate the belongings of each of the facility corporations.
Lucy Hochschartner, a spokesperson for the Pine Tree Power Company marketing campaign, stated the funding is getting used to “mislead voters” by means of political promoting on social media.
“I think most Canadians would be surprised to learn that this company that is supposed to be working for them is spending their money in our elections,” she stated. “That’s not small change at all.”
If Maine residents had been to vote in favour of making a consumer-based electrical energy utility, it might kickstart a course of to switch the 2 privately-owned energy corporations in Maine, in addition to a negotiation to accumulate the electrical energy suppliers from their mum or dad corporations.
An elected board of administrators would even be shaped to handle the Pine Tree Power Company.
According to Silkman, the transfer comes as Maine works on local weather efforts and would require upgrades to its electrical grid.
“The question is: what’s the best way to move us from where we are today to where we need to be in the future?” Silkman stated. “The belief is that the best way to do it is through local control, local decision making, local ownership, and the lower cost of capital that comes with that.”
Since Enmax’s acquisition of Versant Power in 2020, it has despatched Enmax a yearly dividend as its sole shareholder.
Similarly, Enmax sends the City of Calgary a yearly dividend with $82 million going to metropolis coffers this 12 months alone.
According to Enmax’s 2022 monetary report, Versant Power generated $349 million in income in 2022.
“I believe it was $31 million in 2022 taken out of Maine and sent to shareholders in Canada,” Hochschartner stated. “That is not working for the people of Maine.”
In a press release to Global News, Enmax stated its acquisition of Versant Power was made “to create value and positive outcomes for customers and stakeholders in both Calgary and Maine.”
Enmax stated its electrical energy charges weren’t affected by the acquisition of Versant Power or the paying down of the debt to accumulate the corporate, and prospects gained’t be charged further charges or charge will increase to offset the price of buying Versant Power, its operations or the referendum course of.
“Although Enmax would be entitled under the (U.S.) Constitution to be paid fair market value if the referendum were to pass, Enmax has opposed this proposal, just as it did when it was put before the Maine legislature and rejected twice in the past,” the utility’s assertion stated. “This proposal is not in the best interests of our customers or the State of Maine, and would not result in better service or lower rates.”
Enmax stated its participation within the referendum is publicly out there info.
The assertion added that Maine is “working hard to make progress” on its renewable vitality targets and Versant Power “strives to be a trusted partner in those efforts.”
The City of Calgary didn’t reply to Global News’ request for remark.
“The message to the citizens of Calgary is: let Maine do what it wants to do, don’t interfere,” Silkman stated.
Mainers go to the polls within the referendum on its electrical grid on November 7.
© 2023 Global News, a division of Corus Entertainment Inc.
