Re: “Uncomfortable questions regarding Bill 50,” Airdrie-Chestermere Report, Dec. 17.
Dear editor,
The majority of the comments made by MLA Rob Anderson about the history of this project are incorrect. The need for an Edmonton-to-Calgary project was originally identified by the AESO in 2004, when a needs assessment was conducted and filed with the then Electric Utilities Board (EUB). A public hearing occurred to review the need for the project and the need was approved by the EUB in the spring of 2005. Following approval of the need, the project was rescinded due to complications during the subsequent Facilities Application hearing to determine the location of the lines.
The AESO has since gone back to review and assess the need for the Edmonton to Calgary Transmission Reinforcement Project and has confirmed the project is required to avoid reliability issues for consumers in southern and central Alberta, improve the efficiency of the transmission system, restore the capacity of existing interties and avoid congestion.
Our current forecasts show close to 3.1 per cent annual growth in demand over the next 20 years. To support the long-term projected growth in Alberta, approximately 11,500 MW of new generation will be required over the next 20 years. The future transmission system of the province must be robust enough to interconnect these new generation facilities and supply the increased demand.
The AESO supports the connection of all forms of generation, regardless of the type or location. This includes locally generated electricity. The AESO, however, does not plan generation. In a deregulated market such as Alberta, the decision to invest in generation lies in the hands of the independent investors. It is important to note that the development of generation cannot occur in the absence of a strong transmission grid to carry electricity from where it is produced to where it is needed.
The AESO is committed to building a transmission system that is cost effective and meets our regulatory mandate, which requires us to operate a transmission system that is congestion-free.
An unconstrained transmission system provides certainty to those who invest in new generation projects that they will have the ability to move their electricity to Alberta households and businesses. It also gives those in other industries the confidence to do business in our province, secure in the knowledge that power will be there when they need it. Wind resources in southern Alberta are a current example of where investment has been stalled as a result of a lack of transmission infrastructure.
To manage cost impact, the AESO is introducing a Competitive Procurement process to get the best value for all Albertans. We also use other cost reduction tools as appropriate, which range from the staging of projects to the life extension of an existing project.
Transmission infrastructure is a public good that must be available in advance of need; Alberta’s quality of life and economic wellbeing depends on it. The AESO encourages you to visit our public engagement website, www.poweringalberta.com to learn more.
Greg Retzer, Director, Project Delivery North Transmission, Alberta Electric System Operator
