Alberta power bills to get a jolt: Operator
Billions of dollars in upgrades to Alberta’s power transmission network will hit consumers in the pocketbook.
The province’s electrical operator says the average consumer will see power bills go up by $8 a month to pay for the first phase of projects, which have an estimated price tag of $8.1 billion.
“There have been no reinforcements or enhancements to the backbone of the grid over the past two decades and in that same period of time demand has doubled,” David Erickson, president and interim CEO of the Alberta Electric System Operator, said Tuesday.
“As a result the grid is stretched to its limits.”
Erickson outlined the priority projects which could get underway in 2011.
They include two new lines between Edmonton and Calgary, a new line from Edmonton to the so-called Upgrader Alley east of the capital and two new lines from that area to Fort McMurray. Existing power lines in and around Calgary are also to be upgraded.
There are also plans to embrace “green” energy such as wind, solar and water power, but nuclear energy is not being considered.
“The nuclear question in Alberta is currently under study,” said Erickson. “The provincial government is continuing to consult with the public to determine whether nuclear power is acceptable for Alberta.
“Our plan for the next 10 years does not actually contemplate building transmission to accommodate a nuclear plant.”
A survey is currently being conducted to help the Alberta government determine whether to allow nuclear reactors to be built.
Bruce Power Alberta has picked an area about 30 kilometres north of Peace River as its preferred site for a potential power plant should the government give the OK. The proposed $10-billion facility is being touted as capable of producing enough electricity to power two million homes by 2017.
Erickson said it is more likely that any future plans would involve linking up with a plant in Saskatchewan if that province were to go ahead with its own nuclear facility.
Alberta’s transmission infrastructure is currently the weakest in Canada, Erickson said, and has made it next to impossible for power generators in the province to export excess electricity outside of the province.
“It’s difficult for generators to build far in advance of need because they have no way to export their excess power when it can’t be consumed in Alberta,” Erickson said.
“What (an upgrade) allows generators to do is to access larger markets so that when there is surplus power in Alberta it can be shipped outside of Alberta and sold elsewhere.”
Alberta introduced legislation Monday to give the government more control over power lines that need are to be built.
Bill 50 would give cabinet more say over which lines are built and when, but the Alberta Energy Utilities Commission would retain control over where they would be put up. It would also continue to hold public meetings with landowners affected by a line.
The Consumers’ Coalition of Alberta has warned Bill 50 must ensure that projects undergo a cost-benefit analysis to ensure that Albertans who are paying the cost are getting value for their money.
Spokesman Jim Wachowich has said this will be especially important if private power companies in Alberta ever generate enough electric power for export.
Having consumers foot the bill for future power transmission projects makes sense, said the Alberta director of the Canadian Taxpayers Federation.
“I don’t know what the alternative is,” said Scott Hennig. “If the companies pay for it, they will ultimately pass the costs on to consumers anyway.
“Whether it’s being charged through higher taxes or through higher fees, I think I’d rather see it come through consumers instead of taxes because at least people can to a certain extent adjust their consumption.”
By Bill Graveland
The Canadian Press
2 June 2009
Tags: Wind power, Wind energy
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