As the independent, not-for-profit organization that plans and operates the electricity grid for the benefit of all Albertans, the Alberta Electric System Operator (AESO) wishes to provide clarification on facts and figures presented by Ted Morton about Alberta’s electricity system.
Much like every other jurisdiction in Canada, Alberta’s electricity infrastructure is aging. While our existing system has supported us well for many years, significant upgrades are required to support the province’s future growth and quality of life.
Provincial electricity consumption has risen more than 30 per cent in the past 10 years alone and is expected to nearly double over the next 20 years. This increased demand is stretching the system of transmission towers and wires that delivers electricity from where it is generated to our homes, businesses, farms and industries across the province. As the independent transmission planner for the province, it is the AESO’s responsibility to ensure that transmission infrastructure is in place to support need, and it is our mandate to produce and publish a Long-term Transmission Plan (the Plan) that forecasts which projects will be required in the future. This Plan outlines the timing and requirements for projects in each area of the province.
The Edmonton to Calgary transmission system reinforcement, one of four Critical Transmission Infrastructure (CTI) projects approved under the Government of Alberta’s Electric Utilities Act, is needed to address issues with reliability, maximize efficiency, accommodate long term growth and lead generation decisions. The existing 240 kV transmission lines running between Edmonton and Calgary are congested and approaching the end of their operating lives.
As indicated in the Provincial Energy Strategy, the long-term benefits of HVDC lines are significant. HVDC transmission lines experience reduced line losses. They allow for efficient staging, can transport large amounts of power over long distances more efficiently than traditional AC transmission lines and allow for a more efficient use of transmission right-of-ways and corridors.
Ensuring the right level of transmission infrastructure is available at the right time is a key mandate for the AESO, and our engineers and experts study, analyze and plan to these issues each and everyday. The AESO actively consults with industry on an ongoing basis and our planning function balances cost with the goal of achieving an unconstrained transmission system. To manage cost impact, we will be filing a competitive process procedure with the Alberta Utilities Commission (AUC) to help facilitate further transmission competition on key projects.
The estimated cost of the 250+ transmission grid upgrades required over the next 10 years, as identified in the AESO’s 2009 Plan, is approximately $14.5 billion. The cost of the four CTI projects was estimated to cost approximately $5.6 billion. To help put this into perspective, for every $1 billion spent on transmission, the cost to the average residential consumer is about one dollar per month. This increase will be added incrementally over time as projects are developed.
It should be noted that generation is not a substitute for transmission. While localized generation is an important part of a reliable electricity system, it does not necessarily provide infrastructure for future supply and demand in other parts of the province. We are mandated to connect any generator approved by the AUC. The AESO does not have any involvement in the decision to construct a new generator, including the type of generators that will be built or the location of future generators.
The AESO is committed to building a transmission system that is cost effective and meets our regulatory mandate. For more information about the need for transmission upgrades in our province, visit the AESO’s public engagement website, www.poweringalberta.com
Nancy Arab
Director, Corporate Communication
Alberta Electric System Operator