Orginally published Aug. 19. 2024 at The Narwhal. Read the full story here.

In July, the arms-length organization that oversees Alberta’s electricity grid announced the sudden departure of its CEO, Mike Law.

At the same time, Alberta is undertaking a massive overhaul of its electricity system and market — an overhaul the Alberta government has been keen to influence.

As a new CEO with a background more in line with the United Conservative Party government’s goals takes the reins, questions remain about Law’s departure and the transition in leadership.

On July 4, the Alberta Electric System Operator’s government-appointed board announced one of its own members, Aaron Engen, would replace Law. Engen has a background investing in technologies including small modular reactors, hydrogen, carbon capture and storage and “renewable natural gas.”

“This is a critical time for the [Alberta Electric System Operator] as we move toward both a new market design and significant energy transition activities,” Karl Johannson, the board chair, said in a news release. “The [Alberta Electric System Operator] continues to focus on the next milestone as it progresses design work on the restructured energy market in parallel with government policy.”

Engen, who was appointed by the United Conservative Party government under former premier Jason Kenney in 2020, officially took over on Aug. 1. 

The circumstances of Law’s departure — whether he was fired or resigned — were not revealed. The Alberta Electric System Operator said it would not clarify the nature of his departure and declined to answer a list of questions regarding Law, ongoing market reforms and new internal documents obtained by The Narwhal. The office of Nathan Neudorf, minister of affordability and utilities, did not respond to requests for comment. 

What is clear is there was deep consternation within the organization Law oversaw around aggressive moves by the provincial government to significantly change the electricity market and the technologies that drive it — including support for technologies in which Engen has a financial background.

The government has made no secret it supports increasing development in those technologies — particularly small modular reactors and hydrogen — while trying to rein in a surging renewable energy sector. 

“Alberta’s government will incentivize investments in carbon capture, utilization and storage, nuclear, geothermal and other reliable sources of base load power,” the government said in its throne speech in 2023. 

Lisa Young, a political scientist at the University of Calgary, said she can’t speculate on what happened in this particular instance, but said there’s been a trend in Alberta with government-appointed boards removing executives who aren’t in line with government desires.

“We’ve certainly seen the Alberta government flexing its muscle over the last five or six years, using its power of appointment of boards,” she said.

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