Alberta Resource Development Minister Mike Cardinal recently announced a 10-point action plan to improve the supply of electricity until the full effects of deregulation are felt.
“Electricity prices will fall as new generation capacity comes on stream and as the benefits of restructuring kick in. Through the 10-point plan, we are working closely with our independent partners to ensure reliability of supply and a competitive marketplace,” the minister said.
The province says that deregulation has encouraged the generation of power by allowing anyone to build new generation capacity, not just the utilities.
New generation of about 1,400 megawatts (MW) will have been added to the Alberta power supply by the end of this year, it says. An additional 1,610 MW is expected over the next few years.
The 10-point plan co-ordinates the actions of the Department of Resource Development, Alberta Energy and Utilities Board (AEUB), the Power Pool of Alberta, the Transmission Administrator and Alberta Environment.
1. ACTION: Obtain more of Alberta’s power supply from neighbouring jurisdictions, such as Saskatchewan and B.C., where appropriate, and from industrial load within the province. GOAL: Free up more domestic energy for use in Alberta.
2. ACTION: Ensure sufficient transmission capability in the Edmonton-Calgary transmission corridor. GOAL: Ensure the long-term reliable operation of the Alberta transmission system and that there is sufficient transmission for future generation.
3. ACTION: Sell the remaining power produced from formerly regulated generating plants that were not sold in the August Power Purchase Arrangement (PPA) Auction. GOAL: Give Alberta consumers, retailers and marketers the opportunity to buy power from formerly regulated generating plants.
4. ACTION: Enable market alternatives to the Power Pool (such as buying power directly from producers and entering into forward markets). GOAL: Provide consumers with alternatives to the spot energy market.
5. ACTION: Work with the Alberta Energy and Utilities Board (AEUB) and Alberta Environment to shorten the approval time for new generation projects. GOAL: Bring on new generation as soon as possible.
6. ACTION: Carefully review all regulated rates to ensure that they are just and reasonable. Ensure utilities use appropriate risk-management tools to control supply costs. These may include hedging, curtailing loads or energy efficiency programs. GOAL: Ensure proper scrutiny of regulated rates for consumers.
7. ACTION: Review rule changes for the purchase and sale of power into the Power Pool. GOAL: Ensure Alberta has a workable competitive market.
8. ACTION: Provide firmer control of utility maintenance schedules. GOAL: Ensure a steady supply of power.
9. ACTION: Implement the recommendations of the Market Surveillance Administrator’s report. GOAL: Ensure Alberta has a workable competitive market.
10. ACTION: Increase consumer education about the wise and efficient use of energy. GOAL: Enable Alberta consumers to make wise choices about the use of electricity.
