TransAlta faces hearing on electricity market manipulation charge

The Alberta Utilities Commission (AUC) began hearings Monday into charges that power generatorTransAlta manipulated the provinces electricity market to inflate prices.

• TransAlta accused of manipulating energy prices in Alberta

AUC spokespersonJim Lawsaid the province's electricity and natural gas market monitoring agency, the Market Surveillance Administrator (MSA), is allegingTransAlta shut down three coal-fired power plants on four occasions in 2010 and 2011.

"There have been allegations that TransAlta and two specific individuals have contravened those rules in terms of discretionary outages and forward trading," he said.

Theshutdowns occurred on very cold days and the MSAallegesprices for electricity increased as a resultand TransAlta made an additional $16 million.

A spokesman for TransAltahas rejected the allegations andsaid the shutdowns were for repairs and maintenance.

TransAlta has faced similar charges in the past. The Alberta Utilities Commission fined the company $370,000for market manipulation two years ago.

The AUC will hear fromall parties during the hearings, which are expected to run for about three weeks. A decision is expected in March 2015.