McNally Valuations Inc has been appointed by the Minister of Energy under terms of the Electric Utilities Act (“EUA”) to be the Assessor in an independent assessment of a proposal made by EPCOR Power Development Corporation to build and operate a 4.6 megawatt electrical generation unit that uses landfill gas as a fuel. This is considered a “green” power generation facility that is popular in California and the United Kingdom, but rare in Canada.
The EUA provides a framework for open and fair competition in the market for electricity in Alberta. The EUA states that a subsidiary of a municipality may “hold an interest in a generating unit if the arrangement under which the interest is held is structured in a manner that prevents any tax advantage, subsidy or financing advantage or any other direct or indirect benefit as a result of association with the municipality or subsidiary”. In other words, the Assessor’s mandate is to ensure that the EPCOR Power Development Corporation proposal is structured so that it does not operate with any unfair benefits or advantages as a result of an association with a municipality. The Assessor is solely responsible for carrying out this assessment. The assessment was completed and a recommendation delivered to the Minister in August 2004.
