Alberta MLA Jason Stephan, during an address in the Alberta legislature, questions why Albertans are subsidizing Quebec residents with their power costs. .Speaking on Friday to the proposed Bill-22, Electricity Statutes (Modernizing Alberta's Electric Grid) Amendment Act, the Conservative MLA for Red Deer-South posed the question, "How about getting Quebec tax payers to pay for the power of Alberta residents. How would we feel about that?" said Stephan..Bill-22, if passed, would "foster a low-carbon future through investment from industry rather than costly subsidies from taxpayers" and bring "long-term savings to the system" benefiting consumers, according to the Alberta government. . Jason StephanWhy are Albertans subsidizing power costs for Quebeckers? .Stephan acknowledged the question was crazy, but said, "that is exactly what they are doing to us." ."I want to share the truth with all Albertans, and here it is. Quebec enjoys the lowest residential power rates in all of North America. How do they do that?"."You see, Quebec Hydro sells their power to Quebec residents at under-market. By selling their power at under-market to Quebec residents, what they do is they actually decrease their fiscal capacity. And, equalization is determined by looking at each individual provinces' fiscal capacity."."So, by selling their power at under market to Quebec residents — the lowest in North America — they actually decrease their fiscal capacity. By reducing their fiscal capacity, they get more equalization.".Alberta is the largest contributor to equalization payments across Canada sending roughly $3 billion per year or $8.2 million daily to the federal government, according to Fairness Alberta. .Fairness Alberta is a group focused on creating awareness around equalization payments and improving fiscal fairness in Canada. Edmonton-based political consultant and public policy analyst, Bill Bewick, is the executive director of Fairness Alberta. Bewick served as the Wildrose Official Opposition director of policy at the Alberta legislature from 2010–2017. ."Albertans sent $324 billion more to the rest of Canada than was spent in Alberta from 2000–2019," quoted Fairness Alberta on its website from StatsCan data. .Federal Director of the Canadian Taxpayers Federation (CTF), Franco Terrazzano, told the Western Standard equalization will cost each Albertan $650 per year of $2,600 for a family of four. ."MLA Stephan is right that the federal equalization scheme is unfair for Alberta taxpayers," said Terrazzano.."Albertans are tired of being treated like the cash cow of Confederation and are tired of subsidizing politicians in other provinces that continue to road-block Alberta's development. That's why a clear majority of Alberta voters voted to end the equalization status quo."."Now it's time for the Kenney government to act on the wishes of Alberta voters and actually push for changes to equalization.".Terrazzano said the CTF presented its 20-year plan to fully phase out the equalization program to the federal government's finance committee..In the last provincial election Albertans voted in favour of a reform to the current equalization plan in Canada, although nothing has been done to address the issue. .Equalization programs began in 1957, however, they were not added to the Constitution until 1982. In order to make a change to the program, a constitutional amendment must occur. That amendment would require a vote in favour of doing so by at least two-thirds of the provinces that together represent at least 50% of the population of the provinces. .The specific formula used to calculate equalization payments is not set and the federal government is free to alter the formula. .According to a calculator on the Fairness Alberta website, Albertans have paid more than $1.7 billion towards equalization since that October 18 referendum vote.
Alberta MLA Jason Stephan, during an address in the Alberta legislature, questions why Albertans are subsidizing Quebec residents with their power costs. .Speaking on Friday to the proposed Bill-22, Electricity Statutes (Modernizing Alberta's Electric Grid) Amendment Act, the Conservative MLA for Red Deer-South posed the question, "How about getting Quebec tax payers to pay for the power of Alberta residents. How would we feel about that?" said Stephan..Bill-22, if passed, would "foster a low-carbon future through investment from industry rather than costly subsidies from taxpayers" and bring "long-term savings to the system" benefiting consumers, according to the Alberta government. . Jason StephanWhy are Albertans subsidizing power costs for Quebeckers? .Stephan acknowledged the question was crazy, but said, "that is exactly what they are doing to us." ."I want to share the truth with all Albertans, and here it is. Quebec enjoys the lowest residential power rates in all of North America. How do they do that?"."You see, Quebec Hydro sells their power to Quebec residents at under-market. By selling their power at under-market to Quebec residents, what they do is they actually decrease their fiscal capacity. And, equalization is determined by looking at each individual provinces' fiscal capacity."."So, by selling their power at under market to Quebec residents — the lowest in North America — they actually decrease their fiscal capacity. By reducing their fiscal capacity, they get more equalization.".Alberta is the largest contributor to equalization payments across Canada sending roughly $3 billion per year or $8.2 million daily to the federal government, according to Fairness Alberta. .Fairness Alberta is a group focused on creating awareness around equalization payments and improving fiscal fairness in Canada. Edmonton-based political consultant and public policy analyst, Bill Bewick, is the executive director of Fairness Alberta. Bewick served as the Wildrose Official Opposition director of policy at the Alberta legislature from 2010–2017. ."Albertans sent $324 billion more to the rest of Canada than was spent in Alberta from 2000–2019," quoted Fairness Alberta on its website from StatsCan data. .Federal Director of the Canadian Taxpayers Federation (CTF), Franco Terrazzano, told the Western Standard equalization will cost each Albertan $650 per year of $2,600 for a family of four. ."MLA Stephan is right that the federal equalization scheme is unfair for Alberta taxpayers," said Terrazzano.."Albertans are tired of being treated like the cash cow of Confederation and are tired of subsidizing politicians in other provinces that continue to road-block Alberta's development. That's why a clear majority of Alberta voters voted to end the equalization status quo."."Now it's time for the Kenney government to act on the wishes of Alberta voters and actually push for changes to equalization.".Terrazzano said the CTF presented its 20-year plan to fully phase out the equalization program to the federal government's finance committee..In the last provincial election Albertans voted in favour of a reform to the current equalization plan in Canada, although nothing has been done to address the issue. .Equalization programs began in 1957, however, they were not added to the Constitution until 1982. In order to make a change to the program, a constitutional amendment must occur. That amendment would require a vote in favour of doing so by at least two-thirds of the provinces that together represent at least 50% of the population of the provinces. .The specific formula used to calculate equalization payments is not set and the federal government is free to alter the formula. .According to a calculator on the Fairness Alberta website, Albertans have paid more than $1.7 billion towards equalization since that October 18 referendum vote.
