A provincial panel appointed to study the need for two north-south power lines has found that not only are they needed, but they are needed right away.
Panel chair Brian Heidecker released the report Monday calling for a quick build of the power lines. He said the Alberta Electric System Operator had made reasonable predictions about the need for power in Alberta and the lines have to be built quickly.
"The data, methodology and intellectual rigour used to determine future demand for electrical transmission is robust," he said. "We recommend proceeding with the developments of the two lines as soon as possible."
The two lines, proposed to run between Edmonton and Calgary, were included with two others that had been designated as critical infrastructure under the government's Electric Statutes Amendment Act, commonly called Bill 50.
The bill gave cabinet the power to approve such projects, but Heidecker and the panel recommended that power should return to the Alberta Utilities Commission for all future projects.
Given the pressing need the panel saw for the lines, Heidecker said he understood why the government took that approach, but they see no need to continue with it.
"I think it was an extraordinary set of circumstances at that particular time, perhaps it has served its purpose but we don't see any reason for it to continue."
Heidecker said the situation was not yet critical, but the province's existing transmission lines were being taxed.
"The system isn't going to fall apart tomorrow, this is not the sky is falling in, but we have pushed these to a reasonable life span."
The cost of the new lines will fall to consumers. Heidecker estimated the additional power would cost the average consumer about $3 per month, which he said was a reasonable price to pay for a secure grid in the future.
He said the last major grid overhaul was paid for through the last generation and it was time for this generation to pay the cost for the next.
"It is time to do another one and at $3 per month, that is about the cost of a Starbucks coffee."
He said the projects were long term and it was much better for the grid to be reinforced too early for expected demand, than for the grid expansion to come too late.
St. Albert lawyer Keith Wilson, who has been an outspoken critic of the proposed lines, said the committee missed the bigger economic picture.
"The committee members talk about wanting to draw investment to Alberta. Major industry groups, major companies that employ Albertans that build projects that need electricity have looked at this and said it is a massive overbuild."
Wilson said the lines simply won't be needed anywhere in the near future.
"They are talking about building lines now that won't be needed for two or three generations from now," he said. "It would be like stocking up on a lifetime supply of fruit in your pantry."
Wilson said he had high hopes for the panel, but now doubts whether it was truly independent, specifically referencing Heidecker's former role as vice-president of the Progressive Conservative party.
"It seems that this process was designed to get the government out of trouble."
Wilson represented the Alberta Landowners Council at the panel's hearing in January. He said the only groups who supported the plan were the companies planning to build and profit from the lines.
"Every other sector of our economy, but for the people who stand the direct benefit of reaching into our wallets and taking out billions of dollars, are saying it is not needed."
Political reaction
Energy minister Ted Morton accepted the panel's report and thanked them for their efforts. He said the government would have a response to its recommendations by the end of the month.
"We wanted an independent third party opinion, we have it and now we will take a look at it."
Wildrose energy critic Paul Hinman said he doesn't see how the panel could justify the two lines.
"They gave no answer today, and we will go through the report in detail as to why we should keep going ahead with that."
He said the panel's mandate was not strong enough to look at the true economic cost of the power build and will result in little more than political cover for the government.
"I am very concerned with the decision that has been made today, it looks political to me."
NDP leader Brian Mason also questioned the merit of the panel's review.
"I regret to say that I think this committee has just rubber stamped the decisions that this government has already made."
The NDP are currently pushing for a return to regulated power generation and transmission and he said the demand for transmission only increases under de-regulation, because producers demand the ability to get their power to market.
