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A significant step towards further Canadian and American market integration has been amounting as of recent – I am referring to the first inter-national merchant power transmission line. Expected to be complete in 2009, the estimated $140 million dollar endeavor seeks to build a 346km transmission line from Lethbridge, Alberta to Great Falls, Montana.

 

The intense and vast supply of wind along the proposed route provides excellent location advantages for the project. “The MATL line will enable the development of new wind energy projects by linking this renewable and emission-free source of power to consumers across North America.”* Already the MATL transmission line has been leased to wind energy projects in Montana with new projects expected to emerge upon completion. Montana-based McCormick Ranch Wind Park project is expected to produce 300 MegaWatts of power to feed the line. This $500 million dollar project is just one of the few – expected to total over $1 billion in future investments. Although in an impact study released by US federal and state regulators released in February 2008 stated: “while wind farms would be the first users, it is reasonably foreseeable that other shippers can own the right to ship electricity over the proposed line.”

This loophole in MATL service contract entertains the notion of upstream environmental implications. The recent controversy over the Alberta Energy Utilities Board (EUB) resulted in the fracturing of the system into two regulatory bodies; one for energy resources, the other responsible for utilities for the province. Prior to the media-strom Enmax proposed to build a $2.5B natural gas and coal facility South of Calgary, and Energy Alberta wanted to build Alberta’s first nuclear power-site. Since then Enmax plans to have one of three plants operational by 2009, and Energy Alberta has been acquired by Bruce Power (a Toronto company). Upon completion in 2017, these two projects alone stand to generate close to 5,000 Megawatts of power. This would be enough to power three million additional homes. Interestingly enough, if Alberta were to maintain 2.5% annual population growth straight through 2017 only an additional one million residents would require power.

The Calgary firm – Montana Alberta Tie Ltd. (MATL) is a wholly owned subsidiary, and the principle asset of Tonbridge Power Company (also Toronto-based). Tonbridge is a developer of power transmission lines. As of January 31, 2008 the project received conditional approval from the Alberta Energy Utilities Board (EUB); already having approval from the Canadian National Energy Board (April 2007) and the US Federal Energy Regulation Commission (July 2006).

This project is an interesting cross-border environmental endeavor. According to the report released by the EUB the initiative will secure another viable source of power for the Alberta market – which has seen relatively little development in recent years. However before the project can receive approval it “must conduct further discussions with affected landowners along the approved route to address the mitigation of specific impacts on individual landowners. MATL must report back to the EUB about this process by April 30, 2008.”According to the Lethbridge Herald, 16 landowners have filed appeals to the EUB – a date of June 12th is set to hear the case. The 300MW bi-directional line raises concern for some local area residents, electro-magnetic radiation (EMR) emitted by the line will disrupt the current way of life along the 346 kilometre stretch it will occupy between Lethbridge and Great Falls. Landowners have the chance to go through Approved Dispute Resolution (ADR) to have their objections raised – Certus Strategies has been called to the helm to lead the consultation process. In Montana it appears as no major concerns have been raised, rather support for the long-term economic impact of the project which promises:

• increasing the reliability and stability of the existing power grids
• enhancing inter-region import/export capabilities – provide access to wind resources in Montana
• provide more competition and options to the marketplace
• provide greater flexibility in scheduling generator maintenance
• facilitate the optimal allocation of generation resources

Although the MATL project weighs heavily on government approval, there is little doubt the project will face much opposition and should commence construction in summer 2008, and be operational by 2009. It is promising to see the development of wind technology, especially in Southern Alberta. However this signifies yet another milestone towards further integration and consolidation with the US-market (or in other terms subjugation of the Canadian marketplace under a green veil).

 

What can we expect from all of this? It seems that the demand for energy continues to increase, and since deregulation in 2001 it has become quite profitable to meet that demand. But we must ask, what are the actual future electrical needs of Albertans? As it stands projects are being approved aimed to increase production to meet the demands of two million households (in addition to a generous expected population) by 2017. Will the MATL project deliver? One can only hope so, the potential for wind generation along this corridor should allow for the MATL project to become a global leader in environmentally-responsible energy development. But is this the intended purpose of this project? Will further integration of US-Canadian energy markets bring stability and increased competition to the marketplace? Maybe it would be wise to examine this from a macro-perspective… what are the demands of our Southern neighbors?

 

Written by Curtis Goodman
Why not increase your energy EFFICIENCY and limit your consumption – perhaps together we can avoid the further toxification of Alberta habitat.

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References:

“Americans Eager to See Power Line Ok’d” by Rick Swihart, Lethbridge Herald, March 17th 2008 Section A1

http://www.matl.ca/

http://tonbridgepower.com/index.aspx

http://www.policyresearch.gc.ca/doclib/Horizons_V9N4_e.pdf

http://www.canada.com/calgaryherald/news/calgarybusiness/story.html?id=0b3902e4-9267-4bba-8f5a-f4a4b7f8a77f

http://www.policyresearch.gc.ca/doclib/Horizons_V9N4_e.pdf

http://www.cwta.ca/CWTASite/english/whatsnew.html

http://www.joconl.com/article/id26304

http://windenergynews.blogspot.com/2007/02/proposed-wind-farm-near-cut-bank-may.html

http://www.auc.ab.ca/aucdocs/documents/decisions/2008/EUBU2008-6.pdf

http://www.greatfallstribune.com/apps/pbcs.dll/article?AID=/20080212/NEWS01/802120301/1002

http://commerce.mt.gov/energy/mtalberta.asp

*All websites visited March 17th, 2008

Concerns?

MATL@mt.gov

feedback@matl.ca

www.certus-strategies.com

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