They loomed over the landscape along the Crowsnest Highway, the 57 hulking wind turbines of the Cowley Ridge Wind Farm. This was the first commercial wind farm anywhere in Canada, erected in 1993 before being decommissioned eight years ago, replaced by a more efficient TransAlta-owned project slightly to the north.
With the Alberta government now declaring a ban on any new wind turbines within 35 kilometres of whatever the province deems “pristine viewscapes,” would this be allowed? Would Canada’s pioneering renewable energy project be kosher under Premier Danielle Smith’s new regime?
“My inability to answer that question is the problem here,” said Evan Wilson, policy vice-president with the Canadian Renewable Energy Association, in an interview Wednesday.
When taken to the policy’s most extreme interpretation of buffer zones “with a minimum of 35 kilometres” around all protected areas and designated viewscapes, most of southern Alberta would be off-limits. (Cowley Ridge is seven kilometres as the crow flies from Lundbreck Falls Provincial Recreation Area.)
It’s not clear the rule will be this restrictive — but even Nathan Neudorf, the utilities minister bringing in these plans, noted there is no “universal definition of pristine viewscape,” and details would have to be worked out.
Approvals of wind and solar energy developments have been frozen for seven months, and as this period formally ends on March 1, the province still needs time to figure out what it means by limits within viewscapes.
That’s what has groups advocating for renewable power antsy. After seven months with the sector’s fate left flapping in the air, there’s more uncertainty.
The Smith government “has now essentially introduced a second ‘soft moratorium,'” said Jorden Dye of the Business Renewable Centres-Canada.
Them’s the brakes
Nearly two decades ago, when then-premier Ed Stelmach was facing heat on the societal and environmental impacts of the rapidly expanding oilsands, he declared he didn’t believe in “touching the brakes.”
The current premier surprised businesses by slamming on the brakes when she was faced with another blossoming energy sector that critics said needed regulation. And with the brake now being lifted, businesses aren’t sure where they’re allowed to go.
Smith said further growth “must happen in well-defined and responsible ways.” Yet there’s much more yet to be defined, including the viewscape rules and forthcoming regulation changes to better cover the transmission costs to the wide-ranging renewable power farms. — and that’s a prospect industry leaders worry may add costs to existing wind or solar plants, in addition to new projects.
And there’s more of a potential crackdown yet to come on the power source its advocates tout as low-cost and plentiful, but which this UCP premier casts as unreliable and fraught withdisadvantages.
Wednesday’s announcement was only part of the Smith-ordered review of wind and solar.
The next shoe to drop is on the overall market capacity for wind and solar, and action to back up Smith’s repeated declarations that the grid must add as much “reliable” power (natural gas, mostly) as it adds wind and solar, which cannot produce electricity 24/7/365.
They spoke the language of reassurance, with Smith saying “I don’t know how long it will take us before we end up constraining (development),” and Neudorf saying “there is no requirement for any of those proponents to add natural gas to their approvals” with these new rules.
But embedded into these remarks is the subtext that constraints and mandated gas-to-solar pairing are on the horizon.
This business is watching with what we can generously call anticipation to an hour-long speaking engagement by Neudorf on March 11 at an electricity producer conference in Banff.
Alberta Premier Danielle Smith announced new rules governing the installation and cleanup of renewable energy projects. Joining her was Affordability and Utilities Minister Nathan Neudorf, left, and parliamentary secretary Chantelle de Jonge, right. (Manuel Carrillos/CBC)
As much anxiety as there has been about what Smith’s government was cooking up with this multibillion-dollar Alberta business, It’s not clear any of this yet spells doom for wind and solar in the province. Alberta’s natural advantages and its open-entry market still make it far easier for businesses to develop than in any other province, even as they ramp up their own renewables portfolios in government-controlled quantities.
More than 90 per cent of Canada’s new wind and solar development occurred in Alberta last year, and Smith expressed desire to keep the province a dominant player — even if she may also want to clip this low-carbon power sector’s wings a bit.
Wind and solar players say they can live with the new rules offering more municipal and neighbour input in hearings and (forthcoming) rules for reclamation. Meanwhile, limits on solar farms on top-class agricultural lands cover more than one-quarter of Alberta’s farmland, according to the government, although little of that is in the pasture-heavy southern Alberta, where electricity developers have flocked.
The province also offered power producers a glimmer of hope that it will finally open up government-owned Crown lands to wind and solar farms, which industry advocates say could offset newly restricted lands, especially in areas closer to existing transmission. But while many of these rules take place immediately (or as soon as Alberta figures them out), Crown access won’t happen until at least 2025.
It’s the murky “viewscape” rules that are drawing the most trepidation (thus far) about the sector’s ability to come roaring back post-moratorium.
“That’s going to make it harder to find suitable sites for this development, which means fewer projects are going to go ahead,” said Dan Balaban of Calgary-based renewable developer Greengate Power.
He has pulled back from pursuing expansions in Alberta since Smith’s moratorium, and he’s unsure about coming back yet, with more rules and regulations still yet to come.
The view from here
For a sense of how broad that 35-kilometre buffer is, it’s roughly the length of the full Deerfoot Trail from the north end of Calgary’s Stoney Trail ring road to its south end. That distance would span the entire Crowsnest Pass.
Pressed further to define “pristine viewscape,” Neudorf said the “Foothills and majestic Rocky Mountains are fairly significant.”
So is that declaring the gusty southwest Alberta a new moratorium zone?
He went on, talking about new mandates for “visual assessment” for towering wind turbines.
“Anything on the ridge is far more visible than it might be in a valley or a bluff,” Neudorf said.
So the third generation of Cowley Ridge won’t be allowed unless it’s hidden from view of potential naysayers?
When the Alberta Utilities Commission has reviewed proposed wind projects before, neighbours or landowners several kilometres away would protest the impact on their views. The commission would acknowledge that as a “consequence of the project that needs to be balanced against the project’s public benefits” — but the provincial policy would transform that calculus, and make viewscape impairment more of a deal breaker.
Oil pumpjacks and mountains have long gone together in Alberta’s iconic scenery. (CBC)
For generations, pumpjacks and oil wells came to dot the Alberta landscape as signs of prosperity and economic development. But they’ve never had the sort of geographical limits or landowner-consent issues facing renewables.
Wind turbines and fields of solar fields were starting to become part of the archetypal Alberta vista. But that was before government policy came to see them as blights on the provincial “viewscape.”
The same sort of business uncertainty, extended permitting hurdles and regulatory “red tape” that governments have lifted for other sectors is now imposed on this one — and the view from here to the future seems mightily obscured.
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
Dollarama Inc.’s food aisles may have expanded far beyond sweet treats or piles of gum by the checkout counter in recent years, but its chief executive maintains his company is “not in the grocery business,” even if it’s keeping an eye on the sector.
“It’s just one small part of our store,” Neil Rossy told analysts on a Wednesday call, where he was questioned about the company’s food merchandise and rivals playing in the same space.
“We will keep an eye on all retailers — like all retailers keep an eye on us — to make sure that we’re competitive and we understand what’s out there.”
Over the last decade and as consumers have more recently sought deals, Dollarama’s food merchandise has expanded to include bread and pantry staples like cereal, rice and pasta sold at prices on par or below supermarkets.
However, the competition in the discount segment of the market Dollarama operates in intensified recently when the country’s biggest grocery chain began piloting a new ultra-discount store.
The No Name stores being tested by Loblaw Cos. Ltd. in Windsor, St. Catharines and Brockville, Ont., are billed as 20 per cent cheaper than discount retail competitors including No Frills. The grocery giant is able to offer such cost savings by relying on a smaller store footprint, fewer chilled products and a hearty range of No Name merchandise.
Though Rossy brushed off notions that his company is a supermarket challenger, grocers aren’t off his radar.
“All retailers in Canada are realistic about the fact that everyone is everyone’s competition on any given item or category,” he said.
Rossy declined to reveal how much of the chain’s sales would overlap with Loblaw or the food category, arguing the vast variety of items Dollarama sells is its strength rather than its grocery products alone.
“What makes Dollarama Dollarama is a very wide assortment of different departments that somewhat represent the old five-and-dime local convenience store,” he said.
The breadth of Dollarama’s offerings helped carry the company to a second-quarter profit of $285.9 million, up from $245.8 million in the same quarter last year as its sales rose 7.4 per cent.
The retailer said Wednesday the profit amounted to $1.02 per diluted share for the 13-week period ended July 28, up from 86 cents per diluted share a year earlier.
The period the quarter covers includes the start of summer, when Rossy said the weather was “terrible.”
“The weather got slightly better towards the end of the summer and our sales certainly increased, but not enough to make up for the season’s horrible start,” he said.
Sales totalled $1.56 billion for the quarter, up from $1.46 billion in the same quarter last year.
Comparable store sales, a key metric for retailers, increased 4.7 per cent, while the average transaction was down2.2 per cent and traffic was up seven per cent, RBC analyst Irene Nattel pointed out.
She told investors in a note that the numbers reflect “solid demand as cautious consumers focus on core consumables and everyday essentials.”
Analysts have attributed such behaviour to interest rates that have been slow to drop and high prices of key consumer goods, which are weighing on household budgets.
To cope, many Canadians have spent more time seeking deals, trading down to more affordable brands and forgoing small luxuries they would treat themselves to in better economic times.
“When people feel squeezed, they tend to shy away from discretionary, focus on the basics,” Rossy said. “When people are feeling good about their wallet, they tend to be more lax about the basics and more willing to spend on discretionary.”
The current economic situation has drawn in not just the average Canadian looking to save a buck or two, but also wealthier consumers.
“When the entire economy is feeling slightly squeezed, we get more consumers who might not have to or want to shop at a Dollarama generally or who enjoy shopping at a Dollarama but have the luxury of not having to worry about the price in some other store that they happen to be standing in that has those goods,” Rossy said.
“Well, when times are tougher, they’ll consider the extra five minutes to go to the store next door.”
This report by The Canadian Press was first published Sept. 11, 2024.
TORONTO – The U.S. Consumer Financial Protection Bureau has ordered TD Bank Group to pay US$28 million for repeatedly sharing inaccurate, negative information about its customers to consumer reporting companies.
The agency says TD has to pay US$7.76 million in total to tens of thousands of victims of its illegal actions, along with a US$20 million civil penalty.
It says TD shared information that contained systemic errors about credit card and bank deposit accounts to consumer reporting companies, which can include credit reports as well as screening reports for tenants and employees and other background checks.
CFPB director Rohit Chopra says in a statement that TD threatened the consumer reports of customers with fraudulent information then “barely lifted a finger to fix it,” and that regulators will need to “focus major attention” on TD Bank to change its course.
TD says in a statement it self-identified these issues and proactively worked to improve its practices, and that it is committed to delivering on its responsibilities to its customers.
The bank also faces scrutiny in the U.S. over its anti-money laundering program where it expects to pay more than US$3 billion in monetary penalties to resolve.
This report by The Canadian Press was first published Sept. 11, 2024.
