Transmission Policy in Alberta and Bill 50

Abstract

Various plans developed by the Alberta Electric System Operator (AESO) have indicated for some time a need for expansion of the Alberta electrical transmission system. This was also recommended in Alberta’s Provincial Energy Strategy released in December of 2008 and it seems generally accepted that some expansion is appropriate. However, there are many complex issues involved in determining the exact nature and extent of this expansion. These issues have traditionally been sorted out through the work of the AESO, followed by a formal application and open hearings by the regulator, the Alberta Utilities Commission (AUC).

In June of 2009 the Alberta government proposed new amendments (Bill 50) to the Electric Utilities Act, the Hydro and Electric Energy Act, and the Alberta Utilities Commission Act that significantly alter the regulatory process for the approval of new high-voltage transmission lines. Bill 50 introduces the concept of Critical Transmission Infrastructure (CTI), defined as transmission and related facilities determined by the government to be in the public interest.

Under this Bill, CTI is subject to substantially reduced regulatory oversight by the Alberta Utilities Commission (AUC). It suspends the regulatory framework established under the Electric Utilities Act requiring the Alberta Electric System Operator (AESO) to demonstrate a “need” for the facilities and a finding by the AUC that the facilities are in the public interest.

Bill 50 also identifies the following four transmission projects as critical infrastructure: • Two High Voltage Direct Current (HVDC) transmission facilities in the Edmonton-Calgary corridor, each with a minimum capacity of 2,000 megawatts (MW). • A double circuit 500 kV alternating current line between Edmonton and the GibbonsRedwater region. • A new 240 kV substation in southeast Calgary. • Two single-circuit 500 kV alternating current lines between Edmonton and Fort McMurray.

The estimated cost for these four projects is approximately $5.7 billion. The cost for the two HVDC lines in the Edmonton-Calgary corridor is more than $3.1 billion. The four projects in Bill 50 are a subset of the $14.5 billion for transmission projects identified in the Long-term Transmission System Plan filed by the AESO in June of 2009.