So, electricity in Alberta… Just my 2 Cents
There are two solutions that could resolve our electricity costing issues a bit more permanently.
First, strengthen transmission intertie infrastructure. Let’s get the proposed Montana-Alberta Intertie Line (MATL) expansion project Build, it will restore existing interties through private investment and federal funding assistance. This will improve reliability, and lower electricity costs. While also avoiding a more costly regulated ratepayer-funded project in the future…
Once operational, on average, the new MATL project infrastructure will save Alberta’s electricity consumers an estimated minimum of $1,643,835 every day. That’s $600 million per year for the infrastructure’s multi-decade lifespan!
The other solution would be to do away with municipal franchise fees on electricity, and natural gas. Franchise fees on these critical services are the second most-identified barrier to business growth. Citations of franchise fees as a barrier grew nearly 10 points from last year — more than any other.
Not all local governments levy franchise fees on electricity and natural gas utilities. Kudos to those that do not. Municipalities need these utilities to deliver core local services and their provision does not cost anything, as one describes on its website: Electric franchise fees are charged by the city to the distribution company for the exclusive right to provide and operate related assets. The Distribution company passes along the cost of the franchise fee to the consumer as a separate charge on the electric bills. Removing this “fee” would go a long way to reducing the cost of all our electricity bills…
One other Note, not only are we paying a “premium” for electricity, we are still susceptible to rotating power outages…
Tuesday evening the Alberta Electric System Operator issued a grid alert for the province due to the power system being “under stress” from the deep freeze currently cloaking Alberta. They asked us to reduce our electricity use to prevent more serious measures. I am guessing that would include the approximately 3,500 registered EVs in Alberta. As a result, they would not be able to charge their EV enough to perhaps go to work…
We have one of the most stable electricity systems in North America backed up by natural gas. I Cannot imagine how stressed the system would be if Alberta had 35,000 EVs and solar and wind power were the “only” source. The simple truth is we are not ready for Trudeau’s shift to EVs.