Our government passed Bill 50 this week despite strong opposition from industry, consumer groups, respected academic institutions and public policy think tanks.
Thousands of affected Albertans will be negatively impacted as a result of these projects. From what we know, the vast majority can expect little, if any, compensation.
As such, we feel compelled to disclose the issues surrounding landowner compensation or what has been referred to as the "Hidden Cost of Bill 50".
Through Bill 50, the province is endorsing and facilitating (or according to some, aiding and abetting) the construction of the massive Bill 50 transmission projects. Accordingly, the province is responsible and duty-bound to ensure that all parties contributing to these Bill 50 projects are treated in a fair and equitable manner.
Simply put, there are two vital components to the Bill 50 projects — infrastructure (e.g., wires and towers) and land.
Since each is vital, or to use Bill 50 vernacular 'critical' to the Bill 50 projects, each should be reimbursed in an identical manner. But will they be?
The government is quite clear as to how the infrastructure component is reimbursed. Transmission companies are legislated a guaranteed a minimum nine per cent annual rate of return based on the capitalized value of the sum of any and all costs associated with infrastructure.
The government is not clear on how the land component is reimbursed. The Ministry of Energy Bill 50 Fact Sheet states, "landowners will receive fair compensation." An odd claim, since the government is not even involved. As we understand it, land-related compensation is determined by transmission companies negotiating directly with landowners. Perhaps most disturbing is that compensation is not necessarily based on market value of the land. Furthermore, compensation will be limited only to those lands contained within the narrow plus/minus 80-metre-wide rights-of-way. No compensation is contemplated for affected lands located immediately adjacent to lands containing right-of-ways. Yet, even the transmission companies have publicly acknowledged that negative effects of their projects extend well beyond these right-of-ways. So much for promises of "fair compensation".
A clear dichotomy exists between compensation for the infrastructure and land components. Legislation guarantees the transmission companies lucrative profits, at zero risk. Yet landowners will be left to fend for themselves, and 'cut a deal' with professional negotiators acting on behalf of corporate giants.
Within a decade we're told transmission companies will be receiving over $1.5 billion per year for the new transmission projects (all paid for by the consumer, at the sole risk of the consumer).
In contrast, we've been told that property owners will suffer hundreds of millions of dollars, if not billions, in damages attributed to the Bill 50 projects. Without equitable compensation, the Bill 50 projects will amount to widespread, state-sponsored financial hardship, and for many, financial ruin.
Transmission companies (and their shareholders) eagerly await the approval of Bill 50. In contrast property owners hope and pray their lives will not be disrupted, their savings eroded or even devastated. Surely the government believes landowners are worthy of the same rights and privileges as bestowed upon transmission companies. If so, Bill 50 must be adjourned until need is established and all costs are properly and fairly accounted for.
Ken Pacholok, Sturgeon County
