Finance committee  In terms of asking for both, I'd remind you that it isn't one of those things where you're going to get both, because to the extent that you're getting government funding, that's going to reduce your amount eligible to claim capital cost allowance against anyway. So it's not a matter of double-dipping per se or anything like that.

Finance committee  In terms of the changes to CCA, I think it's important to keep in mind that any changes would be available to all future developers of similar projects. While it's important for early developers, because of the risk they're taking on, to have access to that lower cost of capital—and whether it's by way of government funding or CCA, all those sorts of things—what we're proposing is something that would put everybody on a level playing field thereafter, so that they can continue to develop similar projects.

Finance committee  It would be across the electricity industry, so for whatever entities would like to construct a similar facility thereafter, those rules would be available to them. There is a declining cost, obviously, to building them after the very first one, but it's still going to be a very sizeable risk that companies would take.

Finance committee  The changes we're asking for are for incremental property and investment that would be over and above the costs associated with building a conventional power plant. They would in fact be additional investments. They would create additional jobs and spending in the economy, as well as growing the capacity of Canada to export power and rely less on imported power.

Finance committee  It would not be an operating expense, because it would have a useful life beyond one year.

Finance committee  Absolutely. Most of it is hard equipment.

Finance committee  It wouldn't be eligible for M and P, because you're producing gas. As the rules are currently written, M and P excludes production of gas. With the gasifying component of the facility, if you end up in that category, then you end up in class 1 at 4%. Arguably you can try to squeeze into the M and P, but it becomes a bit of a debate whether you get there or not.

Finance committee  Most of the technology related to gasification of coal and capture is already out there, so in my view, most of it would not be eligible for the scientific research and experimental development program. What we're trying to do is combine those technologies with a commercial-scale power plant, which to this date is not proven.

Finance committee  I think there is an incentive to develop the first commercial-sized power plant that uses CCS technology in Canada. We have to keep in mind that power is transportable across the borders of Canada and the U.S., and there are other parties in the United States currently looking at similar projects.

Finance committee  Good afternoon, and thank you for the opportunity to appear before you today. My name is Tony Scozzafava. I'm the vice-president of taxation for Capital Power Corporation, based here in Edmonton. With me is my colleague, Dr. David Lewin, senior vice-president responsible for development of our proposed IGCC power plant.