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Alberta

Alberta Premier tells environmental heckler a battery-powered electrical grid is pure ‘fantasy’

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7 minute read

From LifeSiteNews

By Anthony Murdoch

‘There is no industrialized economy in the world operating that way,’ Danielle Smith said at the 2023 Alberta Climate Summit

Alberta Premier Danielle Smith tore a page off a heckler’s fantasy suggestion of a solar and wind battery-powered future after she stepped into the lion’s den to advocate for oil and gas at a conference hosted by a pro-climate change think tank.

On October 26, Smith spoke at the Pembina Institute’s “2023 Alberta Climate Summit” in a Fireside Chat, Premier Smith with Dave Kelly” to argue in favor of oil and gas and against proposals to phase out Alberta’s main energy industry.

While offering remarks in support of Alberta’s energy industry that includes fighting a federal government rule decreeing net-zero power emissions by 2035, Smith said trying to have the province go off natural gas for power generation by that year would be impossible after a heckler interrupted her.

Smith responded to the heckler by saying, “Do think I can get an equivalent amount of nuclear rolled out in 12 years? Do you think I could do that in an environment that we’ve never had nuclear before?”

“And what do I do when there’s no sun and there’s no wind?” she added.

At this point, the heckler shouted, “Batteries,” which irked Smith.

“Let’s talk about batteries, because I’ve talked to somebody and I want to I want to talk about batteries for a minute, because I know that everybody thinks that this economy is going to be operated on wind and solar and battery power and it cannot,” she said.

“There is no industrialized economy in the world operating that way because they need baseload. And I’ll tell you what I know about batteries because I talked to somebody who was thinking of investing in it on a 200-megawatt plant, $1 million to be able to get each megawatt stored. That’s $200 million for his plant alone. And he would get one hour of storage.”

Smith said that if one wants to have “12,000 megawatts of storage, that’s $12 billion for one hour of storage, $24 billion for two hours of storage, $36 billion for three hours of storage.”

Companies such as Tesla offer both home as well as commercial battery pack applications that are designed to store electricity from wind, solar or the grid. However, such packs are massively costly and come with their own negative environmental footprints.

The institute’s goals align with those of the federal government under Prime Minister Justin Trudeau, who has imposed a punitive carbon tax on all Canadians.

‘Fantasy thinking’ won’t keep the lights on in winter, Smith says

Replying to the heckler, Smith stressed how in Alberta, which gets most of its power via natural gas and coal generators, with some solar and wind, there are “long stretches in winter where we can go weeks without wind or solar.”

“That is the reason why we need legitimate real solutions that rely on baseload power rather than fantasy thinking,” she said. “And I’m not going to engage in fantasy thinking and see something is possible when I know that my principal job, I think we need to stop.”

Smith said her “principal job is to have a reliable energy grid” and added that is what she is “trying to do.”

Former Liberal MP turned gas price analyst Dan McTeague, who is against the carbon tax and the push to ban gas-powered cars in favor of electric vehicles, said Smith’s remarks were “beautiful.”

“Beautiful,” McTeague wrote on X (formerly Twitter).

“Climate extremism performs poorly when confronted with reality.”

Trudeau’s carbon tax scheme falling apart

Cracks have begun to form recently. Faced with dismal polling numbers, Trudeau announced he was pausing the collection of the carbon tax on home heating oil in Atlantic Canadian provinces for three years.

This caused a immediate reaction from Saskatchewan Premier Scott Moe, who said his province will stop collecting a federal carbon tax on natural gas used to heat homes come January 1, 2024, unless it gets the similar tax break that Atlantic Canadian provinces.

The Trudeau government’s current environmental goals – in lockstep with the United Nations’ “2030 Agenda for Sustainable Development” – include phasing out coal-fired power plants, reducing fertilizer usage, and curbing natural gas use over the coming decades.

The reduction and eventual elimination of the use of so-called “fossil fuels” and a transition to unreliable “green” energy has also been pushed by the World Economic Forum (WEF) – the globalist group behind the socialist “Great Reset” agenda – an organization in which Trudeau and some of his cabinet are involved.

The Trudeau government has also defied a recent Supreme Court ruling and will push ahead with its net-zero emission regulations.

Canada’s Supreme Court recently ruled that the federal government’s “no more pipelines” legislation is mostly unconstitutional after a long legal battle with the province of Alberta, where the Conservative government opposes the radical climate change agenda.

Alberta has repeatedly promised to place the interests of their people above the Trudeau government’s “unconstitutional” demands while consistently reminding the federal government that their infrastructures and economies depend upon oil, gas, and coal.

Alberta

Alberta’s fiscal update projects budget surplus, but fiscal fortunes could quickly turn

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From the Fraser Institute

By Tegan Hill

According to the recent mid-year update tabled Thursday, the Smith government projects a $4.6 billion surplus in 2024/25, up from the $2.9 billion surplus projected just a few months ago. Despite the good news, Premier Smith must reduce spending to avoid budget deficits.

The fiscal update projects resource revenue of $20.3 billion in 2024/25. Today’s relatively high—but very volatile—resource revenue (including oil and gas royalties) is helping finance today’s spending and maintain a balanced budget. But it will not last forever.

For perspective, in just the last decade the Alberta government’s annual resource revenue has been as low as $2.8 billion (2015/16) and as high as $25.2 billion (2022/23).

And while the resource revenue rollercoaster is currently in Alberta’s favor, Finance Minister Nate Horner acknowledges that “risks are on the rise” as oil prices have dropped considerably and forecasters are projecting downward pressure on prices—all of which impacts resource revenue.

In fact, the government’s own estimates show a $1 change in oil prices results in an estimated $630 million revenue swing. So while the Smith government plans to maintain a surplus in 2024/25, a small change in oil prices could quickly plunge Alberta back into deficit. Premier Smith has warned that her government may fall into a budget deficit this fiscal year.

This should come as no surprise. Alberta’s been on the resource revenue rollercoaster for decades. Successive governments have increased spending during the good times of high resource revenue, but failed to rein in spending when resource revenues fell.

Previous research has shown that, in Alberta, a $1 increase in resource revenue is associated with an estimated 56-cent increase in program spending the following fiscal year (on a per-person, inflation-adjusted basis). However, a decline in resource revenue is not similarly associated with a reduction in program spending. This pattern has led to historically high levels of government spending—and budget deficits—even in more recent years.

Consider this: If this fiscal year the Smith government received an average level of resource revenue (based on levels over the last 10 years), it would receive approximately $13,000 per Albertan. Yet the government plans to spend nearly $15,000 per Albertan this fiscal year (after adjusting for inflation). That’s a huge gap of roughly $2,000—and it means the government is continuing to take big risks with the provincial budget.

Of course, if the government falls back into deficit there are implications for everyday Albertans.

When the government runs a deficit, it accumulates debt, which Albertans must pay to service. In 2024/25, the government’s debt interest payments will cost each Albertan nearly $650. That’s largely because, despite running surpluses over the last few years, Albertans are still paying for debt accumulated during the most recent string of deficits from 2008/09 to 2020/21 (excluding 2014/15), which only ended when the government enjoyed an unexpected windfall in resource revenue in 2021/22.

According to Thursday’s mid-year fiscal update, Alberta’s finances continue to be at risk. To avoid deficits, the Smith government should meaningfully reduce spending so that it’s aligned with more reliable, stable levels of revenue.

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Alberta

Premier Smith says Auto Insurance reforms may still result in a publicly owned system

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Better, faster, more affordable auto insurance

Alberta’s government is introducing a new auto insurance system that will provide better and faster services to Albertans while reducing auto insurance premiums.

After hearing from more than 16,000 Albertans through an online survey about their priorities for auto insurance policies, Alberta’s government is introducing a new privately delivered, care-focused auto insurance system.

Right now, insurance in the province is not affordable or care focused. Despite high premiums, Albertans injured in collisions do not get the timely medical care and income support they need in a system that is complex to navigate. When fully implemented, Alberta’s new auto insurance system will deliver better and faster care for those involved in collisions, and Albertans will see cost savings up to $400 per year.

“Albertans have been clear they need an auto insurance system that provides better, faster care and is more affordable. When it’s implemented, our new privately delivered, care-centred insurance system will put the focus on Albertans’ recovery, providing more effective support and will deliver lower rates.”

Danielle Smith, Premier

“High auto insurance rates put strain on Albertans. By shifting to a system that offers improved benefits and support, we are providing better and faster care to Albertans, with lower costs.”

Nate Horner, President of Treasury Board and Minister of Finance

Albertans who suffer injuries due to a collision currently wait months for a simple claim to be resolved and can wait years for claims related to more serious and life-changing injuries to addressed. Additionally, the medical and financial benefits they receive often expire before they’re fully recovered.

Under the new system, Albertans who suffer catastrophic injuries will receive treatment and care for the rest of their lives. Those who sustain serious injuries will receive treatment until they are fully recovered. These changes mirror and build upon the Saskatchewan insurance model, where at-fault drivers can be sued for pain and suffering damages if they are convicted of a criminal offence, such as impaired driving or dangerous driving, or conviction of certain offenses under the Traffic Safety Act.

Work on this new auto insurance system will require legislation in the spring of 2025. In order to reconfigure auto insurance policies for 3.4 million Albertans, auto insurance companies need time to create and implement the new system. Alberta’s government expects the new system to be fully implemented by January 2027.

In the interim, starting in January 2025, the good driver rate cap will be adjusted to a 7.5% increase due to high legal costs, increasing vehicle damage repair costs and natural disaster costs. This protects good drivers from significant rate increases while ensuring that auto insurance providers remain financially viable in Alberta.

Albertans have been clear that they still want premiums to be based on risk. Bad drivers will continue to pay higher premiums than good drivers.

By providing significantly enhanced medical, rehabilitation and income support benefits, this system supports Albertans injured in collisions while reducing the impact of litigation costs on the amount that Albertans pay for their insurance.

“Keeping more money in Albertans’ pockets is one of the best ways to address the rising cost of living. This shift to a care-first automobile insurance system will do just that by helping lower premiums for people across the province.”

Nathan Neudorf, Minister of Affordability and Utilities

Quick facts

  • Alberta’s government commissioned two auto insurance reports, which showed that legal fees and litigation costs tied to the province’s current system significantly increase premiums.
  • A 2023 report by MNP shows
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