President and CEO of ATCO Nancy Southern addresses shareholders at the company's annual meeting in Calgary, Alberta, May 14, 2014.Todd Korol/Reuters
The debate over who should control Alberta's "critical infrastructure" is kicking up nearly as much dust as the Calgary Stampede this year.
Companies, governments and public policy specialists are all weighing in on the role of foreign private investment in the province's energy infrastructure, a discussion that spurred on by Berkshire Hathaway Energy's $3.2-billion deal for AltaLink LP, operator of more than 80 per cent of the province's power lines. The utilities division of famed investor Warren Buffett's Berkshire Hathaway Inc. struck a deal for the company with SNC-Lavalin Group Inc. in May, but the transaction has yet to close.
Before the ink dries on the deal, utility and energy company Atco Ltd. wants a public discussion over the sale of of AltaLink assets, and even took out unbranded ads in local newspapers urging the province to rethink foreign ownership of the power distribution grid.
On Friday Atco issued a press release telling Albertans to share their views of the sale with local members of the provincial legislative assembly and the Alberta Utilities Commission.
"The electric transmission system is critical infrastructure and in every other province, but Alberta, it is owned within the province," said Nancy Southern, chief executive of Atco, in a statement. "I believe this is a matter of principle that should be debated so that all Albertans understand the impact of such a transaction."
Atco has grown from a trailer rental shop in the 1940s to a $16-billion business with various units including a utilities group focused on pipelines, natural gas and electricity transmission and distribution, so it is tied closely to the industry and this ownership issue. Ms. Southern made it clear in an interview with the Edmonton Journal that she wants lines to be built and operated by a Canadian company that, she says, can keep costs down and prioritize Canadian business.
But Berkshire Hathaway Energy is no stranger to the province. It is run by Edmonton-born executive Greg Abel, and he already has working relationships and partnerships in the province's power sector through strategic alliances with TransAlta Corp.
AltaLink broke its silence following Atco's latest criticisms and launched a website with facts about the deal to squash the "incorrect" information it said was circulating. AltaLink said it would continue to support Albertans, making no changes to daily operations and answering to the same regulator. Profits will stay in Canada, the company said, and Berkshire Hathaway Energy has valuable experience in the electricity industry that will benefit the market.
AltaLink also detailed the electricity companies that have been successfully foreign owned in the province. "Prior to being purchased by ATCO in 1980, the majority of the gas and electric system in northern Alberta was U.S. owned and managed by International Utilities," the website said.