This release was issued under a previous government.
The Alberta government has directed that the two North-South transmission lines proceed as recommended by an independent committee and that the costs of their construction will not fall solely on the shoulders of current users.
Since the need for North-South transmission upgrades was first identified in 2002, Alberta’s economy has grown by over 30 per cent and there are over 700,000 more Albertans. Provincial demand for power closely tracks economic and population growth and is forecast to nearly double over the next 20 years.
“Our decision to proceed with strengthening the backbone of the transmission grid will ensure we can power our economy for the foreseeable future,” said Energy Minister Ted Morton in accepting all of the recommendations of the Critical Transmission Review Committee.
”This is not about what’s best for Alberta for the next four years, but rather what’s best for the next four decades. As such, we will ensure the costs for these projects are shared equitably between today’s consumers and future generations,” said Morton.
Government will direct the Alberta Utilities Commission (AUC) to conduct an inquiry to examine ways to reduce the cost impact of the two North-South lines to consumers. Current estimates of the cost of developing the two lines are $3 a month for residential consumers and $3.75 per megawatt hour for industrial consumers.
In addition to supporting the strongest economic growth and fastest growing population in the country, reinforcing Alberta’s transmission system will also incent new investment in electrical generation plants, which will lead to increased competition and therefore put downward pressure on the cost of electricity.
Recommendations regarding future projects are also being implemented. Legislative amendments will be made to amend the Electric Statutes Amendment Act, 2009 (formerly Bill 50) so that responsibility for considering the need for all future transmission projects will be assigned to the AUC. A competitive procurement process that is transparent and openly competitive will also be used on all future major transmission projects to save costs.
In addition to accepting the recommendations of the Critical Transmission Review Committee, government will strike an independent panel to review the variable, regulated rate option and consider the ability to reduce volatility and costs for consumers on the variable default rate.
The Critical Transmission Review Committee report, Powering Our Economy, was released on Feb 13. The report and a detailed government response and action plan are available at www.energy.alberta.ca.
Backgrounders: Government of Alberta Action Plan for Critical Transmission, Premier’s Four-Points on Electricity
Media inquiries may be directed to:
Bart Johnson
Director of Communications
Alberta Energy
780-422-3667
To call toll free within Alberta dial 310-0000.
Backgrounder
Government of Alberta Action Plan for Critical Transmission
- Request the Alberta Utilities Commission (AUC) to proceed with its consideration of the existing facilities applications for siting of the Western and Eastern Alberta Transmission Lines.
- Pursue options to reduce the impact to consumers of the cost of transmission projects. This work will include:
- The development of preliminary transmission cost recovery options by the existing Transmission Cost Recovery Subcommittee.
- Directing the AUC to conduct a public transmission cost recovery inquiry into approaches that could mitigate the rate impact of new transmission on consumers.
- Implementing changes to transmission cost recovery approaches as appropriate prior to the completion of the Western and Eastern Alberta Transmission Lines.
- Amend the Electric Utilities Act so that all future transmission development proposals will require need and routing approvals from the AUC. This legislation will be introduced in the fall Session of the Legislature.
- Ensure that all future major transmission infrastructure projects are awarded using a competitive procurement process.
- Undertake a review of the variable, regulated retail electricity rate to ensure it meets the needs of Alberta consumers in the context of an open and competitive retail sector.
- Evaluate the electricity system education and awareness activities in the province and identify areas and programs that would enhance Albertans’ knowledge about electricity and transmission costs and retail market choices.
Media inquiries may be directed to:
Bart Johnson
Director of Communications
Alberta Energy
780-422-3667
To call toll free within Alberta dial 310-0000.
Premier’s Four-Points on Electricity
The Premier is introducing a four-point plan to help address both the volatility and costs associated with electricity. The plan includes:
- A review of the variable, regulated rate option by an independent panel. The panel will review the variable rate option to reduce volatility and costs. As part of the review, the Utilities Consumer Advocate (UCA) will represent consumers' interests. The UCA’s mandate in this process is to ensure the costs associated with electricity are just and reasonable for consumers.
- A request that the Alberta Utilities Commission freeze ancillary costs included on Albertans' power bills including distribution, transmission, rider and administration charges until the completion of the review.
- A request that the Alberta Utilities Commission continue its work on performance based results, which will serve as an incentive for industry to find efficiencies with electricity distribution. Efficiencies will be passed on to the consumer through lower prices.
- An amendment of the regulations affecting deposits for energy marketers and fixed-rate contracts to ensure more options are available for consumers who need them.
Media inquiries may be directed to:
|
Bart Johnson |
Gerald Kastendieck |