City proceeding with legal action against SaskPower

The path has now been cleared for the city of Swift Current to proceed with a lawsuit against SaskPower.

The lawsuit, which was filed back in April 2005, has been tied up in the appeal process as SaskPower tried to have the city's claim struck. However the Saskatchewan Court of Appeal has upheld Swift Current's lawsuit against SaskPower.

The city claims that in the mid 1990s SaskPower began unlawfully engaging in systematic discriminator and anti-competitive behaviour with the intention of causing a reduction in the value of Swift Current Light and Power, for the ultimate purpose of forcing the city to sell it's electrical distribution system to SaskPower at a depressed price. The city has made other claims and they are as follows: Misfeasance in a public office, unjust enrichment, breach of fiduciary duty, unlawful interference with economic interests and breach of contract.

Councilor Tim Keene explains why the city decided to file the lawsuit.

"What we want to do is have the bulk supply of electricity provided to us in a fair and reasonable fashion. We believe there has been a distinct and curious rate set for the city of Swift Current which is unfamiliar to other bulk purchasers that SaskPower has. We're concerned that we seem to be singled out, we are not sure why because they won't tell us. But it appears to us, on our information and our research, that we are singled out and treated differently than their other bulk purchasers."

He added the process has been a very long and time consuming event for the city.

"Well the process has been long and rather torturous. What's happened is we have had to sue SaskPower, and SaskPower's lawyers immediately launched an application to strike the pleadings to say it was without any cause of action and shouldn't be proceedings. Then we had to appear before what is called a Chambers Judge and she made a ruling, which we were satisfied with for the most part but SaskPower and their lawyers were not. So the next round was up to the Court of Appeal and it's the highest court in Saskatchewan. A detailed presentation was made to three judges for it. At the end of that we waited a long time for them to make a decision but they made a very thoroughly analysis of the law with the information presented to them and unanimously the Court of Appeals said certainly the city should be allowed to proceed with these causes of actions against SaskPower."

Keene also explains that it has been unfortunate that this has had to happen, as it has been an awkward on going battle.

City vs SaskPower

"Really what it boils down to is the fairness in terms of our relationship with SaskPower. We are in the awkward position of quite frankly getting our bulk energy from our competitor SaskPower is in the business of supplying the electricity. So we have to go to our competitor and it's been an awkward arrangement for a few years now."

Keene feels a timeline of 30 days would be nice but knows it will still be awhile before anything will be resolved.

"Well I would like to say within the next 30 days but it's going to go on a lot longer than that. The feel I have is that SaskPower is going to take a very aggressive stance on this. A bit of the whole David and Goliath struggle. A smaller corporate municipality such as Swift Current against one of the largest corporations in Western Canada. I guess it's going to be a long drawn out brawl here unfortunately, as much as we would like to have the matter resolved amicably and quickly it's going to be very difficult, but we will carry on."

Mayor Sandy Larson added that the ruling to go ahead with their court action is a great announcement for the city of Swift Current.

"Certainly this was a good news story for us and for our citizens of Swift Current and our utility. This is just phenomenal. I'm very pleased, especially since we have been dealing with this issue for over the course of 10, 12, 15 years and we could get no reaction from SaskPower whatsoever, so now, yes, this is a very good thing."