Hidden deep in the latest budget, the one that plunges Alberta over $71B into debt by 2020, is the fact that the government is borrowing $2B to cover the growing losses in the Balancing Pool.
The Balancing Pool is the middle man, a government agency acting as the contract holder between the power generators and the companies that sell power to Albertans. There is a clause in those contracts stating that if the government does something to make the power contracts unprofitable, or more unprofitable, the Balancing Pool is on the hook for the whole mess.
The NDP’s carbon tax did just that. When the NDP carbon-taxed coal fired electricity generation, a bunch of those contracts turned to junk, and the Balancing Pool started bleeding cash, up to $70M per month.
The NDP say this cash injection is a loan and the Balancing Pool is supposed to pay all of it back. But how can they? The Balancing Pool is still bleeding millions of dollars every month.
Actually, it’s even worse than that - the Balancing Pool is or nearly is, insolvent right now. And I have the internal emails to prove it.
The NDP just loaned $2B borrowed dollars, money Alberta doesn't have and can't afford, to cover the losses the NDP caused through their own actions at a government agency that is almost or totally insolvent. Oh, and that government agency is of course, still losing money.
What could possibly go wrong? What are the prospects do you think, of Albertans ever seeing this money paid back?
About as likely as Joe Ceci actually balancing a budget.