privatization

The Alberta government often appears stuck in yesterday’s rhetoric of a debt crisis, too willing to engage in pitched battles with its civil servants, teachers, and nurses; disregarding of the needs of municipalities; and unresponsive to the plight of the poor and homelessness. 

In 1995/96, the Government of Alberta decided to outsource all the maintenance on its 15,000 km of primary highways to private contractors. In 1997, KPMG Consultants produced a study for the Government of Alberta with the intention of comparing the two systems. However, given that the system had been privatized for only one year they found that it was too early to compare the financial results of outsourcing highway maintenance to previous in-house methods.

In 1993/94 the Alberta Government implemented major policy changes involving the control, taxing, and distribution of liquor products. Ten years later the retail industry has evolved into monopolistic competition with its inherent excess capacity and high costs. 

In September 2000 The Health Care Protection Act (formerly Bill 11) was proclaimed and established as law in Alberta. Since the Act permits private, for-profit surgical facilities to keep patients for more than a 12-hour stay, it is only a matter of time before for-profit hospitals are approved and operating in Alberta. The first ones are likely to appear in Calgary.

This study extends examines EPCOR’s standing in the throes of the deregulation of Alberta’s electricity industry. It finds that EPCOR provides remarkable value to the City of Edmonton, and despite unexpected shifts in regulatory positions by the Alberta government, this value is likely to hold in the medium and long term.

The study presented here is a business analysis of the issue of whether or not Edmonton City Council should proceed with the sale of EPCOR.

This study is intended to assist the citizens of Edmonton and their City Council with their deliberations over the future of Epcor and Edmonton Power.