The battle over two, high-voltage, transmission lines proposed between Edmonton and Calgary isn’t over yet. Sheldon Fulton, representing larger oil and gas companies, said he will seek a meeting with Energy Minister Ted Morton in the next two weeks to discuss a new report by an independent review panel that endorsed the government’s plans to construct two 500-kV, direct current north-south power lines. The IPCA members, mostly larger companies, will much higher transmission costs for the next 30 years to cover their share of the $4-billion grid expansion if it goes ahead. Rather than face that bill, many companies will opt to build their own power generating facilities on-site and pull out of an “expensive, overbuilt” central grid. With another 800 megawatts of new powering coming on stream near Calgary with Enmax’s Sheppard plant, Fulton also questioned the need to build two north-south lines quickly.
Low US power prices due to low nat gas price and warmer winter are good news for companies that sell power to retail customers. But they’re terrible for power-plant operators who sell electricity on the wholesale market. While prices remain low, power plant operators are focusing on sales to end-use customers, which are more profitable. They’re also putting plans for new power plants on hold, which could lead to electricity shortages in Texas and other regions in the next few years, executives at power companies have warned. Analysts are predicting that natural gas prices will remain low this year and next, as gas demand slowly catches up with supply.
