Alberta energy regulator CEO steps down after apology over inflated cleanup estimate

Published 2018-11-02, 12:50 p/m
Alberta energy regulator CEO steps down after apology over inflated cleanup estimate

CALGARY, Alberta, Nov 2 (Reuters) - The chief executive of the Alberta Energy Regulator (AER) stepped down on Friday, a day after the provincial regulator apologized over inflated liability estimates used in a presentation to industry that was subsequently covered by Canadian media outlets.

Jim Ellis, who has led the regulator since it was formed in 2013, will step down effective Jan. 31, 2019, the AER said on Friday. It said his departure had been in the works for several months.

On Thursday, numerous Canadian media outlets reported the cost of cleaning up Alberta's fossil fuel industry would be C$260 billion ($198.3 billion), roughly C$200 billion more than any previous estimates, citing a private February presentation by the AER.

After the story broke, the AER issued an apology, saying the C$260 billion estimate had been used to "hammer home" the idea to industry that the current liability system needed improvement. It said its verified liability estimate remained at C$58.65 billion.

"While the message to address liability is important, the numbers were not validated and were based on a hypothetical worst-case scenario. Using these estimates was an error in judgment and one we deeply regret," the regulator said late on Thursday.

The presentation was released to a group of Canadian television and print media outlets through an access to information request.

($1 = 1.3112 Canadian dollars)

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