Enmax CEO speaks out on utility’s election spending in Maine after shareholder meeting – Calgary | 24CA News
The head of city-owned Enmax was at metropolis corridor Wednesday to fulfill with City of Calgary representatives, the mayor and councillors to debate the implications of an upcoming referendum in Maine.
The assembly comes after revelations that Enmax has despatched $7.5 million to a U.S.-based non-profit to date this 12 months to marketing campaign for the opposition within the referendum, which asks Mainers whether or not it ought to create a publicly owned energy utility and exchange the state’s two largest privately owned energy corporations, together with Enmax-owned Versant Power.
The non-profit, referred to as Maine Energy Progress, was based by Enmax and Versant Power, in line with the Maine Ethics Commissioner.
“We’re opposed to the proposition mainly because we believe it’s not in the best interest of customers in the state of Maine,” Enmax president and CEO Mark Poweska instructed reporters. “It will not lead to better reliability, better service or lower costs.”
Poweska reiterated that not one of the prices of working the marketing campaign could be introduced onto clients in Calgary or in Maine.
Spending the cash on opposition campaigning is about informing voters in Maine, in line with the Enmax president.
“We believe that voters and customers need to be informed on what this ballot initiative is about and what the possible outcomes are, including the risks and opportunities,” Poweska mentioned. “It’s our obligation and when I say ours, it’s really our team at Versant in Maine leading this campaign.”
Calgary’s mayor and metropolis councillors had an opportunity to ask Enmax representatives in regards to the marketing campaign throughout a closed-door shareholder assembly Wednesday morning at metropolis corridor.
Although the City of Calgary owns Enmax and is its sole shareholder, Mayor Jyoti Gondek mentioned metropolis council doesn’t have any management over Enmax’s operations or how the group spends its cash.
“Council is not the board of directors for Enmax,” Gondek mentioned following the assembly. “We’re the shareholder. We don’t direct Enmax, we don’t make operating decisions, so for that reason I think it’s really important that Calgarians hear directly from Enmax on this one.”
On Tuesday, a number of metropolis councillors instructed reporters they’re not involved with Enmax’s opposition efforts within the Maine referendum and that the city-owned utility is defending its funding within the Maine-based energy firm.
Enmax bought Versant Power three years in the past in a deal that was valued at $1.8 billion.
In a press release to Global News final week, Enmax mentioned it will be entitled to honest market worth for Versant Power if Mainers vote in favour of transferring to a publicly owned energy utility.
It stays unclear how the lack of Versant Power would impression Enmax or the City of Calgary, however Enmax’s web site mentioned the dividend it pays yearly to the town is calculated primarily based on web earnings. That dividend was $82 million in 2023.
“We believe Versant Power is best positioned to continue to provide customers with safe and reliable power now and into the future,” Enmax mentioned in an up to date assertion to Global News. “Enmax’s view is that this is a good investment that will have long-term benefits on both sides of the border.”
Enmax beforehand instructed Global News that charges and charges weren’t affected by its buy or operations of Versant Power.
Mainers go to the polls within the referendum on the way forward for its electrical grid on Nov. 7.
© 2023 Global News, a division of Corus Entertainment Inc.
