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Rotating brownouts leave thousands of Albertans without power Friday

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Tens of thousands of Alberta households lost power Friday morning as a shortage of electrical generation prompted the province’s electrical system operator to temporarily cut usage.

At least seven major power plants were generating little to no electricity early Friday afternoon, according to information on the Alberta Electric System Operator website.

“It is truly a combination of many things that occurred that got us into the rotating outage situation,” Marie-France Samaroden, vice-president, grid reliability operations at AESO, said at a news conference Friday afternoon.

AESO issued a grid alert at 6:49 a.m., meaning the province’s electric system was under stress and needed to use emergency reserves.

A wind power forecast overestimated the amount of wind power to be generated Friday morning by 800 megawatts, Samaroden said.

When the Keephills 2 natural gas plant west of Edmonton tripped offline two hours later, AESO asked power distribution companies, including Edmonton’s Epcor and Calgary’s Enmax, to begin rotating outages to their customers, she said.

That move saved about 250 MW of power, she said.

Enmax turned off power to about 25,000 Calgary customers for about 14 minutes, a spokesperson said in an email.

Epcor shut off power to about 20,000 customers across Edmonton for less than 30 minutes, a spokesperson said.

Fortis Alberta said about 15,000 customers in rural areas lost power, from the northeastern community of Conklin to the southern Alberta hamlet of Skiff.

It’s a problem Alberta hasn’t experienced in more than a decade, when a July 2013 heat wave led to rolling brownouts to conserve power.

Alberta relies on power imports from B.C., Saskatchewan and Montana, as demand outstrips generation.

AESO also issued a grid alert on Wednesday evening this week due to unexpected outages at power plants and high demand, Samaroden said. Renewables were generating plenty of power at the time, she said.

New plants, expected to generate a combined output of 1,800 MW, are forecast to come online in the next few months.

Samaroden said AESO has some “short-term mitigations” to bring more power online if needed before those plants begin running, expected on July 1.

“There’s always a bit of an art to this, right? It’s not science,” she said, pointing to the challenge of forecasting.

Avoiding future brownouts

Blake Shaffer, an associate professor of economics at the University of Calgary specializing in electricity, called the brownouts a “far more serious situation” than the power demand crisis Alberta experienced in January.

A combination of record cold, surging power demand and some gas plants offline led Alberta to issue an emergency alert Jan. 12, pleading with the public to turn off appliances and lights to relieve an overtaxed grid.

Friday’s challenge was a result of numerous plants being simultaneously offline with little help from solar and wind power, Shaffer said. Any rapid loss of power from major plants is difficult for an electric system operator to manage, he said.

“People like to assign blame on power system woes to their least favourite generation technology,” Shaffer said. “And the reality is, all generation technologies have reliability challenges.”

Rolling brownouts help protect essential equipment from losing power, he said.

“It avoids that catastrophic sudden blackout by just reducing load — involuntarily, mind you — but in a controlled manner,” Shaffer said.

The operator released data in January showing the alerts are becoming more frequent.

Shaffer said there are steps the province could take to make the system more flexible, including allowing more power exchange with adjacent provinces and states, and building a second intertie with B.C. between the northern portions of the provinces.

He said Alberta could embrace smart metering and flexible demand, incentivizing customers to use more power at times outside peak demand. The province could also encourage the construction of “peaker plants” that can generate or distribute a lot of power, quickly, on short notice.

Speaking at an unrelated news conference Friday, Premier Danielle Smith pointed fingers at the design of Alberta’s electrical system, saying it’s too difficult to fire up a natural gas plant quickly if wind and solar plants can’t generate forecasted power. She said the market should encourage gas plants to stay operating.

“This is at the heart of everything that we’ve been saying for the last year, that the the system is broken,” Smith said. “It needs to be repaired. We need to be focused on base load power and reliable and affordable energy.”

The government has tasked AESO with designing a restructured power market by this fall, with ambitions for new regulations to take effect in 2027.

Smith said one change under consideration is a day-ahead market, where prices are set a day ahead of the electricity being generated and consumed.

Andrew Leach, an energy and environmental economist and professor at the University of Alberta, said the current market is skewing production, because companies don’t want to generate more power when supply is high and prices are low.

He said Alberta has been too slow to adapt its electricity system to evolving environmental policies and technologies.

“It’s no longer good enough to say, ‘Sorry, there were policies that were put in place seven or eight years ago that we didn’t agree with,'” Leach said.

“If you are going to stand up today and say, ‘Everyone knew this was coming,’ then the logical question is, why didn’t you act?”

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Roots sees room for expansion in activewear, reports $5.2M Q2 loss and sales drop

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TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.

The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.

“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.

The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.

But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.

Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.

“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.

“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”

Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.

The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.

In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.

Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.

The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.

The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.

Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.

Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.

It will also re-evaluate its design ranks.

Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.

Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:ROOT)

The Canadian Press. All rights reserved.

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Talks on today over HandyDART strike affecting vulnerable people in Metro Vancouver

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VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.

No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.

About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.

Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.

Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.

A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”

This report by The Canadian Press was first published Sept. 12, 2024.

The Canadian Press. All rights reserved.

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Transat AT reports $39.9M Q3 loss compared with $57.3M profit a year earlier

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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.

Companies in this story: (TSX:TRZ)

The Canadian Press. All rights reserved.

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