What is the Long-Term Plan?

Running an electric system involves thousands of decisions and millions of moving parts. In fact, the North American electric system has been described as the largest and most complex machine in the world. As part of this larger interconnected grid, Alberta’s power system must be able to respond to instantaneous changes in the supply and demand for power at any given moment. Our system controllers balance generation supply with the demand for power every second of the day, 24 hours a day, 365 days a year. We hope this article helps to answer some of your questions about Alberta’s transmission system.

 

Who’s got the big picture in mind?

The AESO monitors how the power system is working 24 hours a day, seven days a week, 365 days a year.  We also have the complete picture about how the system needs to be reinforced to make sure power can be transported to light our homes into the future.

We don’t build, own or operate any of the power facilities. We’re a not-for-profit company. Our motivation is to do what’s in the best interest of all Albertans.

 

Who is in charge of the plan for Alberta’s transmission system?

Since its inception in 2003, the AESO has had the responsibility to plan transmission. Transmission is planned to be in place ahead of any increases in consumer demand or any new investor-owned generation development. While this approach works well to support a competitive marketplace, it does create some challenges for transmission planning.

Some types of natural gas or wind generators can be built in 18 months to three years, but a transmission line now takes between five and eight years to plan and construct. This means that our transmission system planners must look to the future using projections of population and forecasts of economic growth, as well as information from industrial customers about their power needs and from generators about plans for building new power plants. By analyzing different scenarios for where and when new power plants might be built, our planners are able to see how well the transmission system can handle the new demands. They can pinpoint where the system is weak, and where and when it will need to be upgraded in time to address future needs.

 

Why is it so important to build transmission?

Over the last several years the province has grown at an astonishing pace; matched by an increasing demand for electricity. While the regional transmission system has been reinforced, there has only been one major transmission line built in the last 20 years; it is located between Fort McMurray and the Edmonton area. Alberta’s backbone, or major transmission system, requires reinforcement and expansion to continue providing power efficiently and reliably to meet the needs of the province’s growing population and flourishing economy.  Transmission is also essential for a competitive power market. We need transmission to deliver power to customers and if it can’t be built in time to connect new generators then investors may decide to build their power plants or wind farms
somewhere else.

 

How are other points of view considered in your transmission system plans?

We welcome input from Albertans through our open houses and meetings with community representatives, agencies, industry and all levels of government. We also share discussion papers and draft documents for feedback. Our aim is to consider a range of alternatives. We stay informed about the plans of industry. Our consultation processes and the knowledge and information we gather is critical to helping us ensure that our transmission system is reinforced when and where it’s needed.

 

What plans are in place for Alberta’s system?

The AESO’s transmission planners create three types of key planning documents to guide the timely development of Alberta’s system.  The 20-Year Outlook represents the strategic direction for the entire transmission system and is produced every four years.

The 10-Year Transmission System Plan provides a roadmap for the types of projects that may be required if the most likely scenarios for electricity supply and demand unfold as expected. This plan is updated every two years.  A Need Identification Document represents a specific recommendation for a particular transmission line or system upgrade. These documents are developed as required and submitted to the regulator for approval.  All of these documents are quite technical in nature and provide a comprehensive analysis of the system needs for the future. We consult with stakeholders when developing these plans and publish them on our website at www.aeso.ca.

 

How do we know that the power we need won’t be exported on new transmission lines?

Imports and exports are important to Alberta. We depend on imports of power when Alberta generators can’t produce all the electricity Albertans need, and in other situations where equipment breaks down and we need additional supply.  Alberta can also import power when it can be purchased at a lower price from another jurisdiction. Alberta has imported significantly more power than it has exported over the last five years. A provincial regulation and policies of the AESO are in place to provide that the interties have the capacity to import and export electricity up to the design rating of the transmission line.  The AESO has procedures in place to ensure that the electricity needs of Albertans are met before exports of power occur. For example, in emergency situations, the AESO’s system controllers will cancel all exports to maintain electricity supply to Albertans. Power exports also help facilitate a competitive power market because they allow generators to sell their excess electricity and that’s an incentive to investors when deciding where to build new power supply.

 

Who pays for electricity transmission?

The regulator determines how transmission system costs are allocated. Most transmission costs are charged to distribution utilities and industrial customers, based on their use of the transmission system. In Alberta, the transmission facilities that deliver electricity to consumers are owned, built and maintained by companies known as Transmission Facility Owners (TFO’s). TFO costs, as well as other costs of planning and operating the transmission system, are recovered through transmission charges paid by all electricity consumers in the province. All consumers - whether industrial, residential, commercial, farm or irrigator - pay for transmission service. Alberta’s transmission system continues to be regulated as it always has. The chart below represents an approximation of how most transmission costs are allocated in Alberta. Generators pay for transmission system losses.

 

What’s the long-term plan?

2009 Long-term Tranmission System Plan

 

Key system reinforcement projects: