City of Calgary not worried about Enmax spending in U.S. referendum

Calgary Mayor Jyoti Gondek and some city councillors say they largely support Enmax’s funding in a referendum over whether a U.S. state should have a publicly funded energy company.

In what was first reported by Global Calgary, a 2023 filing to a political action committee by the Maine Energy Progress shows Enmax forked over $7.5 million into a referendum fight opposing “An Act To Create the Pine Tree Power Company, a Nonprofit, Customer-owned Utility.”

Voters will be asked in November to make that decision, which would eliminate two private companies, one being Versant Power, that Enmax owns.

Gondek says that while the city owns Enmax, it doesn’t make business decisions and said the company is doing what it can to support Calgarian’s interests.

“Enmax made an investment in Versant Power, and they made that investment in the interest of growing the company and providing a better return to its shareholder, which is us,” Gondek said. “So trying to protect that investment is what they’re pursuing right now.”

When asked about any ethical concerns about a Canadian corporation in a foreign election, Gondek says this is not a standard election process.

“This is coming forward through an election process, it has impact to an organization that owns that entity, so I think that’s something that we absolutely need to clarify,” she said.

Ward 11 Councillor Kourtney Penner added that the city is more of a shareholder, not the “board of directors,” so it can’t make direct asks of the company.

“As a shareholder, we give a mandate for the company to perform on various sets of metrics, but we cannot make operational decisions on their behalf,” she told reporters.

“If we felt like they weren’t doing that, I’m sure we would be wanting to call a meeting of the shareholder.”

Penner also defended Enamx’s contribution, saying Maine’s move towards public utility would negate any revenues that Enmax could gain from that region.

“So, therefore, it would be a loss of investment for Calgarians,” she said. “So that is essentially what they’re trying to protect.”

In a statement to CityNews, Enmax says that the Maine Public Utilities Commission performed a “rigorous process” on Versant Power to see that Maine would receive net benefits from the purchase, stating it confirmed residents would.

“Enmax continues to invest in Versant Power and is committed to building a long-term beneficial relationship with customers, regulators, policymakers and stakeholders on both sides of the border,” a statement reads.

It also states that Enmax customers and Calgary’s electricity rates were not affected by the purchase of Versant Power or the paying down of the acquisition debt.

“No additional fees or rate increases are being charged to our customers to offset the cost of acquiring Versant Power, its operations or the referendum process,” it states.

The City and Enmax will talk at a shareholder’s meeting Wednesday.

Residents of Maine go to the polls on Nov. 7.