News / Edmonton

Edmonton owns stake in coal plants set to close under climate plan

Capital Power said it hoped it would be treated fairly as the province moves away from coal.

Alberta is set to close all of its coal electricity plants by 2030.

Flickr / Paul Jerry

Alberta is set to close all of its coal electricity plants by 2030.

The city owns a minority stake in four coal plants set to close as part of the Alberta government’s plans, but Mayor Don Iveson is confident the closures won’t hurt the bottom line.

Capital Power owns four coal generating plants that the NDP’s climate change plan spells out will now close earlier than their original lifespans dictated — and EPCOR owns about nine per cent of that company’s shares.

The city is EPCOR’s sole shareholder, and thus the linkage means it owns stake in Capital Power.

But Iveson said the he isn’t worried by the closures and added it’s proof the city was smart to get out of the power generation business, a decision made in 2009.

“Our exposure is quite minimal. It’s one of the benefits of having spun off Capital Power,” he said.

Iveson said the city has to focus on safe, stable investments and power generation presented too much long-term risk.

“All those things created more risk than I thought a municipality should have, but for stockholders, it’s a reasonable risk,” he said.

Capital Power reacted to the government’s decision with cautious optimism and said it hoped it would be treated fairly as the province moves away from coal.

“We support government policies that treat investors fairly, and maintain an attractive climate for investment in new power generation,” said president and CEO Brian Vaasjo, in a statement.

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