Klein power play panned

May 6, 2002

Klein power play panned

Alderman upset over possible move to wrest power from municipalities

Michael Wood

Concern and frustration are mounting among some aldermen over a government proposal which would effectively wrest control of city-owned utilities away from municipalities.

The latest provincial balloon floating around Alberta is a 27-page report which suggests changes be made to a government regulation on the control of corporations.

One of the proposed amendments would give Alberta's minister of municipal affairs the power to force municipalities to sell corporations they own or control.

The report maintains that any such power shift would be done in the interest of protecting shareholders and citizens from money troubles.

Citizen protection

City officials, however, see it as a way for the government to clear the road to deregulation. The proposed legislation would also hamper city-owned corporations from borrowing money.

And it could have far-reaching consequences for other city ventures, some aldermen say.

Ald. Joe Ceci is one of many calling for clarity of the proposed change, which could be read as a curtain call for any costly venture the city undertakes - such as Calgary's Ride The Wind LRT project.

The landmark collaborative effort between Calgary Transit, Enmax and Vision Quest Windelectric Inc. uses wind-generated electricity to power the city's LRT system.

"If you're doing things that come at a premium -- this regulation could prohibit these things," Ceci said.

"(The government) would be saying, 'That probably doesn't benefit your citizens to the degree we want it to, so stop doing it.'

"I think there's a reason to be concerned."

'Reason to be concerned'

And as city council prepares to vote whether to sell Enmax, other aldermen see the proposed legislation as an attempt to play puppet master - for the province's own gains.

"Bluntly put, the municipalities are in the way of the province's plans (for deregulation)," said Ald. Diane Colley-Urquhart at a recent meeting of the special committee on Enmax.