Critics say work on power lines premature

COMMENT: As the Alberta government writes legislation to push transmission projects ahead, the BC government is similarly about to issue a special order to the BC Utilities Commission in response to its end-of-July rejection of BC Hydro's Long Term Acquisition Plan.

By Darcy Henton
Edmonton Journal
August 26, 2009

'A total disrespect for . . . legislative process'

A move by the Alberta government to authorize two companies to start work on controversial state-of-the-art north-south transmission lines in advance of approval by the Alberta Utilities Commission has sparked outrage from consumers.

Alberta Energy announced Tuesday that AltaLink and ATCO Electric may begin design work, environmental assessments, siting options and consultations for the proposed 500-KV direct current lines between Calgary and Edmonton.

But critics say the move is premature and they're unconvinced the two high-voltage lines are needed.

They say there must to be an independent assessment of the need for the lines before they are constructed because consumers will be stuck with the multibillion-dollar bill.

"It's outrageous," said Sheldon Fulton, executive director of the Independent Power Consumers Association of Alberta. "They're short-circuiting their own process. Nobody has demonstrated a need for these lines."

Fulton said the province "is not playing by anybody's rules."

Gary Holden, president of Calgary-based Enmax, says the Alberta Utilities Commission is much better qualified than the Conservative cabinet to make the decision on the size and scope of new transmission lines that will ultimately be paid for by consumers.

"We're in strong support of the Alberta Utilities Commission having direct and thorough control over the utility companies running amok with costs," he said. "To disenfranchise the Alberta Utilities Commission at a time when we probably need it the most goes against the quality of the regulatory framework we've been using the last five decades. We think consumers are in for a rough ride."

Holden says research by his company shows the amount of electricity being transmitted over the existing lines has actually dropped back to 2005 levels and the two "expensive" new lines are a massive overbuild.

He said Enmax is building three gas-fired electrical generating plants in the Calgary area that will further reduce the need for the lines.

"We keep bringing the north-south transfers down such that more transmission isn't needed at all," he said. "These are factual points that are yet to be considered and the place where they should be considered is at the Alberta Utilities Commission."

The Conservatives under Premier Ed Stelmach have introduced legislation to eliminate the legal requirement for a hearing to determine whether the lines are needed, but the bill won't be debated until the fall session of the legislature.

Critics have questioned whether the province even has the legal authority to launch the project before it uses its massive majority in the legislature to pass Bill 50.

"This is a total disrespect for the legislature and the legislative process," said Liberal MLA Hugh MacDonald.

But Alberta Energy spokesman Bob McManus says there's no connection between the companies being given the authority to start work and the bill before the House.

"This is separate and distinct from Bill 50," he said. "This is not an unusual practice. The preliminary work by the firms to go out and look at the potential routes and that sort of thing is routinely decided prior to needs hearings."

He said the projects have been identified by the Alberta Electric System Operator as critical in its 20-year plan and, the sooner the lines are built, the better for consumers.

"The benefit is people will continue to have reliable power past 2014," he said. "The cost if the projects don't go ahead could be problems providing safe, secure, reliable electricity for the entire province."

Joe Anglin, who heads a landowner group near Rimbey, accused the government of putting "the cart before the horse" by launching the project before passing the necessary legislation empowering it to do so.

"Everything they have done to this point is just farcical," he said.

He compared the scope of the project to building a congestion-free provincial road system with interchanges at every intersection instead of stop lights.

"It's uneconomical. You wouldn't do it with your road system and it doesn't make sense for the grid. We'll overbuild this thing and the public will pay through the nose for it."

Spokesmen for Epcor and Capital Power, which now operates Epcor's generating stations, applauded the move, saying construction of the lines is long overdue.

"New power transmission capacity is urgently needed in Alberta," said Epcor spokesman Tim le Riche. "No major transmission system additions have been made in Alberta for 20 years."

But Jim Wachowich, counsel for the Alberta Consumers Coalition, says the province needs to demonstrate to consumers why it needs two direct current lines when alternating current lines are cheaper. It also needs to explain why consumers are paying for lines that will likely be used to export power for the benefit of generators, he said.

"We're skeptical of them overbuilding the system and pre-building export capacity on the tab of the Alberta utility customer."

Fulton, whose association represents industrial power users, questioned why the projects were not put out to tender and the logic of how having two companies building separate lines would be cost efficient.

But officials with Altalink and ATCO said their costs will be scrutinized by the Alberta Utilities Commission and they will strive to build the lines on time and on budget.

"I know there will be a lot of angst with the dollar amount," said ATCO Electric president Sett Policicchio. "Our costs will get scrutinized by the interveners very closely."

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