There is no effective way for the views of ordinary Albertans to be heard on the issue of whether Alberta should proceed with electrical deregulation. A referendum on electrical deregulation, held in conjunction with the provincial election, would provide that voice.

Our government is opposed to holding a referendum on this issue for reasons that are not clear.

1. On January 29, 2001 Premier Klein acknowledged the validity of referendums in his provincially televised address to Albertans. He stated that "that there would never be a sales tax in Alberta unless Albertans told him by referendum that they wanted one."
2. While Albertans are not concerned about a sales tax, they are very concerned about the process of electrical deregulation which will result in higher electrical rates, higher retail prices and possible job losses if small businesses and Alberta based industries are no longer viable and competitive.
3. A referendum conducted in conjunction with the provincial election would be timely and cost effective.
4. It would an opportunity for Premier Klein to hear from ordinary Albertans using a process that he has publicly validated.
5. A referendum would be compatible with the theme of our government's recent survey entitled "Speak Out, It's Your Money ... We're Listening"
6. A referendum could be non-partisan. There are many supporters of the current government who have grave concerns about electrical deregulation and its future impact on Alberta.
7. Our government appears to be closely allied with the vested interests in the electricity industry. Consumer groups have not been widely consulted about electrical deregulation. The secret meetings held with electrical retailers in the second week of December are a concern. As is the fact that a prominent conservative politician from the recent past, Mr. Jim Dinning, holds a senior executive position with TransAlta Utilities.
8. The government is slow and reluctant to make corrections to the flawed Power Pool pricing system. The recently announced joint study of issues by the E.U.B. and the Market Surveillance Administrator may be yet another delaying tactic. The market rules currently favour electrical generators at the expense of consumers.
9. A referendum would give consumers a clear voice and our government would have difficulty ignoring the result. It may also provide our government with the impetus to make Power Pool rule changes quickly.
10. The information provided to Albertans by our government regarding our electrical market has been inaccurate and misleading. The premier's address on January 29 contained many factual errors (detailed in the attached letter). Albertans need time to understand the issues more fully and an opportunity to learn the true facts. A referendum process would provide that opportunity.
    1. We are at a crucial time when it is still possible to reverse the electrical deregulation process by refunding the proceeds of the P.P.A. auction to the successful bidders and by returning to a system of legislated hedges for a large portion of each consumers electrical cost.
    • The most efficient electrical generating facilities were auctioned off last August for well below market value. The ownership of these facilities could be returned to Albertans and would assist in providing stable and competitive pricing. The need for government financed rebates would be substantially reduced.
    • The M.A.P. auction of the remaining electrical generated facilities held in December would simply not be repeated in 2001 and these assets would also be returned to Albertans.
    • New assets and independently owned generation would be subject to the Power Pool prices and would be part of all consumers bills. The Power Pool rules could be easily amended to provide a level playing field.
    • This can all be done if Albertans have a choice. This choice will not exist and the government will not be motivated to make the necessary changes once the election is over.

Quote from Chris Spearman:

"Albertans are not benefiting from electrical deregulation as it is presently structured and our government is in no hurry to fix the dysfunctional market.

Premier Klein acknowledged that the pain will last for up to two years. We believe that it could realistically be 4 or 5 years. And there may be serious harm done to the Alberta economy in the process. Many companies mat not survive.

Government funds are being siphoned off to provide rebates. More rebates costing billions of dollars, may be required in the future, if our government has the resources to provide them.

The dollars could be better spent on the priorities that Albertans have identified in the past such as:

• Improvements to the Healthcare system
• Investing in Education
• Needed Infrastructure upgrading
• Assistance to those in Need
• Tax Reductions

Mr. Klein validated referendum processes in his provincial address and stated that he would respect the voice of Albertans.

A referendum would provide Albertans with an opportunity to decide whether they want their government to continue with the process of electrical deregulation.

If Mr. Klein is not prepared to provide that opportunity, he should be asked to explain why."

Suggested Referendum Question:

Do you believe that electrical deregulation is the most appropriate process for managing the price and supply of electricity in Alberta?