The Redford government took steps to ease the pressure on Albertans' power bills this week, while approving the construction of two power lines, which will likely increase the bills.
Energy minister Ted Morton announced Thursday that the province would be moving ahead with two massive power lines as the Critical Transmission Review Committee suggested last week.
"It is clear to us that the committee members understood the issues before them and the case they made for each of their recommendations we find compelling."
Morton said during his party's leadership campaign that he didn't believe the lines were needed, but said he now realizes he was wrong.
"One mark of an intelligent person is knowing not just what he knows, but what he doesn't know and I just said I am not an expert in electrical transmission."
Alberta electricity users will ultimately pay for the lines with new costs added to their monthly bills. Morton announced he would ask the Alberta Utilities Commission (AUC) to study the issue and see whether more could be done to lower the costs.
He said the costs of the lines could be spread out over a long period of time, because power lines can last for multiple decades.
"The concept is simple, the details will be complicated, but if you are buying an expensive piece of new infrastructure are you going to amortize it over a decade or four decades."
The review committee also suggested the province amend Bill 50 and send all future power line decisions to the utilities commission. Morton said that would take place for all future lines, but these lines needed to be built right away.
"A hearing like that is a minimum of 18 months and in terms of growth and demand we need these lines probably today."
Premier Alison Redford announced she would ask the Alberta Utilities Commission to freeze the ancillary costs – those not related to the actual power, such as transmission and administration fees – while an independent panel conducts a review.
The panel will also be asked to look at Alberta's regulated rate option (RRO). The RRO is a set price per kilowatt-hour that consumers not on a fixed price contract pay each month based on the cost of generating power.
Morton said the government wants to look at how that rate is calculated and how it might be changed.
"What we want to do is look at it and see whether there were alternative ways of calculating that to see if there are ways to create greater stability."
Opposition unimpressed
Liberal critic and Calgary-Buffalo MLA Kent Hehr said he was disappointed, but not surprised that the government chose to endorse the panel report.
"The Tories back in 2007 tried to take building power lines under their own wing, tried to ram this through in cabinet," he said. "Then they found out that the Alberta people wouldn't stand for it and now they have to find a way to push this through by any other means."
Hehr said the promise to review the RRO and other costs issues is blatant electioneering with a trip to the polls around the corner.
"Up until two days ago every time minister Morton got up he said our power system is working great."
Wildrose energy critic and Calgary Glenmore MLA Paul Hinman said the report is flawed and the AUC should be the only body making decisions on the need for power lines.
"It is a sham report, even the report itself said the process should go through the AUC," he said.
Hinman agreed the freeze is more about the campaign than anything else.
"Anytime a government comes along and puts a freeze on you know it is because they have been meddling too much with the market."
