Wildrose leader Danielle Smith unveiled her party’s plan for Alberta’s electrical system Tuesday, pledging to lower costs for consumers and repeal Bill 50.
Her announcement, made in Fort Saskatchewan, was the first of five commitments the party is promising to make before the election this spring. Smith said her party would repeal Bill 50, a contentious piece of legislation that deals with power lines, arguing the province is on the verge of building lines it may not need, only to pass the construction costs on to consumers.
“We will go back to having a fair and independent needs assessment so Albertans are not stuck paying for needless new lines.”
Under a Wildrose government, Smith said power companies would also only be able to pass half of the costs of building lines on to consumers.
“If the companies are going to profit from the new lines it is only fair they help pay for them.”
Smith said the party would also look at pricing transmission costs more fairly so that power generators would be incentivized to set up power plants near to where the power is needed.
“Right now we don’t have a level playing field because it doesn’t matter how far you are away from the market everybody pays the same, the power producer pays nothing for transmission. It is paid 100 per cent by ratepayers.”
Smith also promised her party would study changes to the way the regulated rate for power is set in Alberta to encourage more generation in the province and be fairer to consumers.
“Under the current system Albertans are subject to wild and unpredictable price spikes that take a big chunk out of their monthly budgets.”
The Wildrose has consistently said free enterprise is at the centre of their party’s policy. Smith said that commitment remains, but the government already controls transmission and the regulated rate so it is important they do both of those things right.
“Those are the two areas, the parts that remain regulated, that are being completely mismanaged by the government.”
Local MLA Ken Allred said the power issue is complicated and he is pleased Premier Alison Redford is already looking at certain aspects.
Shortly after taking office, Redford asked the Alberta Energy and Utilities Board to cancel hearings on two proposed north-south transmission lines.
“I think it is good that the premier has indicated that she is going to review that,” said Allred.
He said the problem with splitting transmission costs between consumers and power companies is that power companies will eventually pass along those costs.
“Really, that is just moving it from one pocket to another.”
Allred said the issue is very complicated and the government has an expert board to study the system through the Alberta Electric System Operator. He said while he had faith in their opinions it is worth considering if the operator has the right mandate.
“They should be the experts and we sort of have to hang our hat on that, but maybe we need to look under the covers.”
