TransAlta manipulated electricity markets – utilities commission

TransAlta manipulated power prices “away from a competitive market outcome”, the utilities commission said.

The Alberta Utilities Commission says there is clear evidence that the Calgary company shut down power plants during peak usage periods in 2010 and 2011 to drive up the price and improve their bottom line.

Harry Chandler, administrator for the Market Surveillance Administrator, says the decision by the Alberta Utilities Commission is a welcome step towards fair markets. While TransAlta believed the practice was allowed, the commission ruled it should have further discussed the issue with the MSA before implementing the plan.

Macintyre says market manipulation is very serious and harmful to the economy, particularly small businesses.

In a report released Monday, Alberta’s Utility Commission agreed.

TransAlta is “reviewing the ruling, which could include the possibility of an appeal to the Alberta Court of Appeal”, according to a statement late Monday.

Jim Law, a spokesman for the commission, said it could fine up to $1 million per day per offence, plus claw back any benefits it finds TransAlta gained from any offences.

Chandler said his office expects to be actively involved in the next phase of the commission’s hearings.

Don Macintyre, the Wildrose Shadow Minister for Electricity and Renewables says the AUC needs to send a strong message with its punishment to TranAlta.