Outgrowing our Electricity System
Critical Transmission Infrastructure
Our system is aging, congested and inefficient.
Demand for electricity has increased significantly over the past decade and this trend is expected to continue. People will keep moving to our province, industry will keep building, and we need critical infrastructure to grow our province.
Critical transmission infrastructure is required to meet Alberta’s electricity needs.
Albertans have a say where transmission lines and facilities are located.
The Electric Statutes Amendment Act, 2009 (formerly Bill 50), gives the Government of Alberta the responsibility for approving the need for critical transmission infrastructure to meet Alberta’s electricity needs. The act was passed and received Royal Assent on November 27, 2009.
Aging
Alberta’s electricity transmission system has not been significantly upgraded in more than two decades. No major new lines have been built since the 1980s. Since then, Alberta’s population has grown by more than one million and our economic value has more than quadrupled.
Currently, we have more than 13,500 megawatts of installed power generation capacity in Alberta. In the next 20 years, we will need in excess of 10,000 megawatts of new generation to meet growing demand and to replace the older generating units being retired.
Congested
Congestion limits the ability of new power plants to deliver electricity to market, limiting competition and reducing reliability. Limited competition means higher energy rates for all consumers.
Today, our transmission system is incapable of always delivering the electricity that is produced at power plants. There are developers that would like to build new generation, but are restricted because of inadequate transmission capacity.
Inefficient
As electricity moves along transmission lines, some of it is lost as heat. These losses rapidly increase when transmission lines are forced to work at or near their limits.
The cost of line losses in 2008 was about $220 million. That lost energy is enough to power about 350,000 homes for one year.
Frequently Asked Questions
How many new lines are there?
The Alberta Electric System Operator (AESO) has identified a need for the following five critical transmission infrastructure projects:
- A southern system reinforcement to connect new wind farms.
- Two new high-voltage direct current transmission lines between Edmonton and Calgary to carry more power to Alberta consumers in central and southern Alberta.
- One new double circuit alternating current transmission line between Edmonton and the Heartland area (near Fort Saskatchewan) to carry power to industrial consumers like Alberta upgrading facilities.
- Two new alternating current transmission lines between Edmonton and Fort McMurray.
- A substation in Calgary to provide more reliable service to customers in south Calgary.
The need approval for the first project was received from the Alberta Utilities Commission (AUC), the provincial regulator, under the existing regulatory process on September 8, 2009. The need for the remaining four projects was approved by the Government of Alberta under the Electric Statutes Amendment Act, 2009 (formerly Bill 50).
Who pays for new lines?
All Alberta electricity consumers —whether industrial, commercial, residential, farm or irrigators—have always paid for transmission.
These charges are regulated by the Alberta Utilities Commission, the provincial regulator, and are based on usage, so the more electricity you use, the more you will pay for transmission.
Who pays for transmission - Fact Sheet
Is Alberta building new lines to export our power?
All of the identified critical transmission infrastructure projects are for Albertans.
Alberta is a net importer of electricity. Currently, imports make up less than two per cent of the electricity used in the province while exports make up less than one per cent. In 2008, we imported four times more power than we exported.
If we need more power, why aren’t we encouraged to conserve or make our own electricity?
Conservation, energy efficiency and micro-generation are important options for Albertans. In fact, wise energy use is an important provincial goal. These actions and options alone cannot provide all the electricity we require to ensure our ongoing economic growth.
An estimated 11,500 megawatts of new generation will be required over the next 20 years. This is almost equal to the present installed capacity in the province.
Do Albertans pay for export lines?
No. Companies that use the transmission lines to export energy pay for the use of the transmission lines. The payments made by exporters for the use of the lines to export power can reduce the transmission costs to Albertans.
Why can’t we build power plants closer to the people who need the power?
In Alberta, most power plants or facilities are built where their fuel source is located. For example, many sources of renewable or low-emission power are located far from where electricity is used. There are hydroelectric resources in the northern area of the province, wind and solar in the south, cogeneration in Fort McMurray and biomass in the northwest.
Power is an essential service; shouldn’t there be oversight or regulation?
Transmission is a public good just like hospitals, highways and schools. The transmission system is fully regulated. Industry does not make decisions about need, siting or rates. That’s the role of the Alberta Utilities Commission (AUC). For critical transmission infrastructure, the Government of Alberta will determine which projects are needed.
Landowners have the right to be heard by the AUC during the public hearing process that will be held for the siting of transmission projects.
What does Bill 50 do? What changes in Bill 50? Who approves the need for critical transmission infrastructure now?
The
Electric Statutes Amendment Act (formerly Bill 50), provides government the authority to approve the need for critical transmission infrastructure projects and approved the need for four critical transmission infrastructure projects.
Nothing else is changing.
The Alberta Electric System Operator will continue to be the provincial planner. The Alberta Utilities Commission (AUC), the provincial regulator, will continue to approve the siting of all transmission projects. Directly and adversely affected landowners will continue to have right to be heard by the AUC during the public hearing process that will be held for the siting of transmission projects. The siting process, during which landowners and other affected Albertans have an opportunity to have their say, is not changing under Bill 50.
(AESO) is Alberta’s independent not-for-profit electricity system planner. AESO acts in the public interest and does not own any transmission or generation assets. 
