Environmental Compliance Costs and Expenditures
Provincial regulations aimed at reducing the levels of greenhouse gas emissions took effect in July 2007. These regulatory changes impact the change of law provisions in ENMAX’s Power Purchase Arrangements (PPAs) and expose ENMAX Energy to the associated compliance costs.
For the year ending December 31, 2009, the compliance costs associated with the release of greenhouse gas emissions at the Battle River facility (a PPA plant) were $6.81 million. ENMAX Energy reduced the emissions compliance costs at Keephills and the Calgary Energy Centre through the use of offsets, essentially countering 1.2 million tonnes of emissions. ENMAX Energy's use of offsets saved $11 million in compliance costs over the past two and a half years. ENMAX did not have any direct environmental fines in 2009.
Excluding the PPA compliance costs, total environmental protection expenditures in 2009 were approximately $5 million, and were largely allocated to environmental assessment work for new construction development.
Other categories of expenditures include waste management, pollution prevention, pollution abatement, reclamation and decommissioning, environmental monitoring and wildlife and habitat protection.