APPENDIX C PARTICIPANT INVOLVEMENT PROGRAM (PIP)
Red Deer Region Participant Involvement Program From February to May 2011, the AESO conducted a participant involvement program (PIP) as part of preparing the needs identification document (NID) for the transmission development in the Red Deer region. 1. Overview The AESO s PIP notified all occupants, residents and landowners with the areas where facilities could be required, as well as other stakeholders as indicated below, about the need for transmission development, and the proposed solution and plans, and provided them with an opportunity to provide input to the AESO. The stakeholders identified in the Red Deer region were: Residents, occupants, landowners and businesses in the Red Deer region; Elected and administrative government officials at the following local, municipal, and provincial levels, each of which were invited to meet with the AESO to discuss the need for transmission system development in the Red Deer region; and Mountain View County P.O. Box 100 Didsbury, Alberta T0M 0W0 County of Red Deer 38106 Range Road 275 Red Deer, Alberta T4S 2L9 Town of Didsbury Box 790 Didsbury, Alberta T0M 0W0 Town of Innisfail 4943 53 Street Innisfail, Alberta T4G 1A1 Town of Ponoka 5102 48 Avenue Ponoka, Alberta T4J 1P7 City of Wetaskiwin Box 6210 Wetaskiwin, Alberta T9A 2E9 Page 1
Red Deer Region Participant Involvement Program The following First Nations and Métis with interests in the Red Deer region who were invited to meet with the AESO to discuss the need for transmission system development in the Red Deer region. Ermineskin Tribe First Nation P.O. Box 219 Hobbema, Alberta T0C 1N0 Louis Bull First Nation P.O. Box 130 Hobbema, Alberta T0C 1N0 Montana First Nation P.O. Box 70 Hobbema, Alberta T0C 1N0 O' Chiese First Nation P.O. Box 1570 Rocky Mountain House, Alberta T4T 1B2 Paul First Nation P.O. Box 89 Duffield, Alberta T0E 0N0 Samson First Nation P.O. Box 159 Hobbema, Alberta T0C 1N0 Sunchild First Nation P.O. Box 747 Rocky Mountain House, Alberta T4T 1A5 The AESO carried out a variety of PIP activities for the purpose of sharing information with stakeholders and gathering their feedback. Below is a list of the various PIP activities conducted by the AESO: Information package mailed out by postal code Meetings with elected officials Notification of Filing newspaper advertisement (15 publications) Open houses (6) Page 2
Red Deer Region Participant Involvement Program Open House newspaper advertisements (15 publications) Website project page Section 2 describes the various communications and PIP activities used during the AESO s PIP, and Section 3 summarizes the feedback the AESO received. The AESO is not aware of any outstanding stakeholder concerns regarding the need for transmission system development in the Red Deer region. Complete details of concerns that arose during the PIP and the subsequent actions taken are presented in Section 3. 2. Description of Products and Activities This section describes the various communication products used during the PIP, as well as the activities and events conducted. 2.1 AESO Need Overview for transmission system development The AESO developed a need overview, which is a background document that describes the need for transmission development in the Red Deer region. The need overview explained that the primary reasons for transmission development in the Red Deer region are the need to alleviate existing constraints in the Red Deer region and the need to enable the transmission system to continue to reliably meet the existing and growing demand for electricity. A copy of this document was posted to the AESO web site (http://www.aeso.ca/transmission/22715.html) on February 15, 2011. A copy of the need overview has been included in this appendix as Attachment 1. 2.2 Advertising In January 2011, the AESO placed an advertisement in local Red Deer area newspapers notifying readers of open house dates, locations and times. The AESO placed advertisements in the same newspapers in March 2011, and again in April 2011 1, notifying readers of the AESO s intention to file a NID with the Alberta Utilities Commission (AUC) for the Red Deer project. Table 1 shows the dates and publications in which the AESO advertised the open houses and its intention to file a NID with the AUC. 1 The original filing date for the Red Deer Region Transmission Development Needs Identification Document was delayed, as a result, a second advertisement was published with the revised filing date. Page 3
Red Deer Region Participant Involvement Program Table 1: Newspaper Advertising Schedule Publication Open House Notification Description of advertisement and publication date Notification of Intention to File with the AUC Notification of Intention to File with the AUC Bashaw Star January 25, 2011 March 22, 2011 April 26, 2011 Camrose Canadian January 27, 2011 March 24, 2011 April 28, 2011 Carstairs Courier January 25, 2011 March 22, 2011 April 26, 2011 Didsbury Review January 25, 2011 March 22, 2011 April 26, 2011 Eckville Echo January 28, 2011 March 25, 2011 April 29, 2011 Innisfail Province January 25, 2011 March 22, 2011 April 26, 2011 Lacombe Globe January 25, 2011 March 22, 2011 April 26, 2011 Olds Albertan January 25, 2011 March 22, 2011 April 26, 2011 Ponoka News January 26, 2011 March 23, 2011 April 27, 2011 Red Deer Advocate January 26, 2011 March 23, 2011 April 27, 2011 Red Deer Express January 26, 2011 March 23, 2011 April 27, 2011 Rimbey Review January 25, 2011 March 22, 2011 April 26, 2011 Stettler Independent January 26, 2011 March 23, 2011 April 27, 2011 Sylvan Lake News January 28, 2011 March 25, 2011 April 29, 2011 Wetaskiwin Times January 26, 2011 March 23, 2011 April 27, 2011 The open house advertisements provided a general overview of the need, a map of the areas potentially affected, contact information for the AESO, and the dates and times of the open houses. Copies of these open house advertisements were posted to the AESO web site (http://www.aeso.ca/transmission/22715.html) and are included as Attachment 2. The Notification of Filing advertisements have been included as Attachment 3. 2.3 Open Houses The AESO held six open houses throughout the Red Deer region between February 22 and March 4, 2011. A total of at least 147 people attended, as measured by those who chose to sign-in and register plus the non-registered attendees noted by the AESO. AESO employees staffed each open house and escorted attendees through the Red Deer project poster boards. The AESO staff members also recorded and responded to stakeholder comments, suggestions and questions. Representatives from AltaLink, the legal owner of the transmission facilities in the area, were also available to answer questions regarding its proposed facility application(s) for the Red Deer region. Table 2 lists the location and dates of the open houses and the estimated attendance at each open house. Page 4
Red Deer Region Participant Involvement Program Table 2: Open House Locations and Attendance by Stakeholders Open House Attendance Location Date Estimated Attendance Red Deer (1 st session) February 22, 2011 51 Innisfail February 23, 2011 21 Ponoka February 24, 2011 21 Didsbury March 2, 2011 23 Red Deer (2 nd session) March 3, 2011 25 Sylvan Lake March 4, 2011 6 Total Attendees 147 Each participant was asked to register and complete surveys before leaving each open house. The AESO prepared a Response to Stakeholders that summarized the participant survey responses and included answers to question frequently asked at the open houses. The Response to Stakeholders was sent to all the open house participants who provided their address (either email address or postal address) and who indicated either they want the Response to Stakeholders, or who suggested they required further clarification relating to the need for transmission development. A copy of the Response to Stakeholders is included as Attachment 4. 2.4 Stakeholder Meetings The AESO met with elected and administrative officials from Towns, Municipal Districts and Counties in the Red Deer region to discuss the need for transmission system development and respond to questions they may have. The AESO met with representatives of the following municipal governments: County of Red Deer Town of Didsbury 2.5 Postal Code Mailout (unaddressed mail) In January 2011, the AESO prepared mailout packages that included the need overview and a copy of the open house advertisement for a postal code mailing. Approximately 95,000 of these packages were mailed to postal codes in the Red Deer region as shown in Table 3. Page 5
Red Deer Region Participant Involvement Program Table 3: Postal Codes T0B0H0 T0C0Y0 T0M0G0 T0M0N0 T0M0X0 T0M1H0 T0M1W0 T0M2G0 T4L T0B3C0 T0C1L0 T0M0H0 T0M0R0 T0M0Y0 T0M1J0 T0M1X0 T4E T4N T0B3L0 T0C1Z0 T0M0J0 T0M0S0 T0M1B0 T0M1K0 T0M2A0 T4S T4P T0C0B0 T0M0A0 T0M0K0 T0M0T0 T0M1C0 T0M1M0 T0M2B0 T4G T4R T0C0J0 T0M0C0 T0M0L0 T0M0V0 T0M1E0 T0M1R0 T0M2C0 T4H T9A T0C0L0 T0M0E0 T0M0M0 T0M0W0 T0M1G0 T0M1V0 T0M2E0 T4J T0M2H0 2.6 Ongoing Dialogue In addition to the PIP activities described above, the AESO provided other opportunities for stakeholders to become involved in this application. These included a dedicated, toll-free stakeholder relations telephone line (888.866.2959) and a dedicated email address (stakeholder.relations@aeso.ca). AESO contact information, along with the AESO s mailing address (2500, 330 5th Ave, SW, Calgary), website address (www.aeso.ca), and a privacy statement that describes how the AESO honours Alberta s Personal Information Protection Act, were included in all materials and correspondence related to this application. Finally, the AESO published updates and other information associated with this application in its weekly stakeholder newsletter throughout the development of this application. The AESO will continue to inform stakeholders of ongoing application activities. 3. Responses to comments and concerns The AESO has received feedback and comments from stakeholders in the form of letters, emails and phone calls. The greatest amount of stakeholder feedback came from participant surveys and informal interviews with participants at the open houses. These sources provided the AESO with feedback on the open house experience and participant opinions regarding the need for transmission in the Red Deer region. The AESO has responded to comments and questions received during the PIP, and has provided answers to these with the exception of questions relating to routing and siting of transmission facilities which were redirected to AltaLink. Table 3 lists the nature of the questions received and the AESO s responses to these. The AESO is not aware of any outstanding stakeholder concerns regarding the need for transmission system development in the Red Deer region. Page 6
Red Deer Region Participant Involvement Program Table 3: Responses to comments and questions Nature of concerns AESO s planning process Consultation process Cost of transmission development Export of electricity Generation of electricity Routing, landowner compensation and environmental concerns AESO response The AESO constantly monitors and plans for the long-term needs of the system and prepares a Long-term Transmission System Plan (Plan) every two years. The 2009 Plan is available on the AESO website at http://www.aeso.ca/transmission/18185.html. For your convenience, information related to the Red Deer region is located on pages 137 and 339. For more details, see AESO planning process in Attachment 4. The AESO acts in the public interest of all Albertans and has no financial interest or investment of any kind in the power industry. As such, we make significant efforts to consult on transmission projects underway in the province. In the case of the Red Deer Region Transmission Development project, the AESO mailed more than 94,000 stakeholder packages throughout the region. We also held six open houses to explain the need for transmission system development in the Red Deer region. For more details, see Consultation in Attachment 4. Ultimately, the Alberta Utilities Commission (AUC) is responsible for ensuring that the costs associated with a transmission project are reasonable. The AUC reviews cost estimates submitted as part of the NID, and as part of facilities applications submitted by the owner of transmission facilities. and also: For transmission system developments of the type being considered for the Red Deer region, each residential ratepayer s bill could increase by approximately 25 cents a month in the transmission portion of their bill. For more details, see Cost of transmission development in Attachment 4. The need for this project was driven by increased demand and existing constraints in the Red Deer area itself. In addition, Alberta is actually a net importer of electricity and imports about twice as much electricity as we export. Our system depends on new generation to meet growing demand. The AESO s mandate is to connect any and all generation approved by the AUC regardless of the type or location of generation. The AESO is responsible for ensuring that a robust and reliable transmission system is in place to carry electricity from where it is produced to where it is needed in advance of that need. For more details, see Generation in Alberta in Attachment 4. "...the transmission facility owner (TFO) in the area, in this case AltaLink, is responsible for addressing such [specific transmission line routes, the compensation for landowners affected by those routes and the potential environmental and health effects of transmission facilities] concerns. An AltaLink representative was available at AESO s open houses to answer such questions. If you were unable to talk to AltaLink at the open house, they can be reached by email at siting.consultation@altalink.ca or by phone at 1-877-267-1453." For more details, see Routing, landowner compensation and environmental concerns in Attachment 4. Page 7
Red Deer Region Participant Involvement Program 4. List of Attachments Attachment 1: AESO Need Overview Attachment 2: AESO Open House Advertisement Final Proof Attachment 3: AESO Notification of Filing Advertisement Final Proof Attachment 4: AESO Response to Stakeholders Page 8
Attachment 1 AESO Need Overview Alberta Electric System Operator RP-05-813 May 13, 2011
RED DEER REGION NEED OVERVIEW Notification to Potentially Affected Stakeholders Need for transmission system development in the Red Deer region The Red Deer region is centred on the City of Red Deer and extends south to Didsbury; north to Wetaskiwin; east to the Joffre area including the industrial complexes of Nova Chemicals; and west to the Benalto and Harmattan areas. In recent years, this region has experienced growth in its demand for electricity. The Alberta Electric System Operator (AESO) forecasts that this growth will continue over the next decade and that the transmission system in this region does exceed its capacity to reliably transmit electricity. You are receiving this notification because you are an occupant, resident, or landowner who may potentially be affected by transmission system developments in the Red Deer region. The following map outlines the Red Deer region and highlights the approximate potential development area. Page 1
Why is transmission development needed in Red Deer region? Electrical demand from industrial, commercial, farming, and residential sectors in this region is forecast by the AESO to continue to grow by as much as 3.5 per cent a year for the next ten years. This, along with existing constraints, has created the need to strengthen the transmission system in the Red Deer region. Transmission system development is needed in this region for the following specific reasons: To alleviate existing constraints or bottlenecks in the Red Deer Region To enable the transmission system to continue to reliably meet the existing and growing demand for electricity. What is the potential solution to this transmission system need? The AESO has identified a potential solution to the transmission system need in the Red Deer region. This includes building new substations near Didsbury, Ponoka, and Innisfail; upgrading substations near Benalto and West Lacombe; adding approximately 150 kilometres of new and rebuilt transmission line; and salvaging over 100 kilometres of existing transmission line. The AESO intends to apply to the Alberta Utilities Commission (AUC) for approval of this need in the spring of 2011. The AESO s needs identification document (NID) will be available at http://www.aeso.ca/transmission/8969.html at the time of its application to the AUC. Where, potentially, may the new facilities be located? The potential solution being considered by the AESO relates to the transmission system need. The solution includes general transmission line and substation requirements, but does not propose transmission line routes or substation locations. AltaLink Management Ltd. (AltaLink), the legal owner of the transmission facilities, will consult with the public about proposed line routes and substation locations later in the regulatory process. AltaLink will then file facility proposals with the AUC for approval that will include detailed line routes and substation locations. Page 2
Who is the AESO? Alberta s transmission system, also referred to as the Alberta Interconnected Electric System (AIES), is planned and operated by the AESO. The transmission system is comprised of the high-voltage lines, towers and equipment (generally 69 kv and above) that transmit electricity from generators to lower voltage systems that distribute it to cities, towns, rural areas and large industrial customers. Our job is to maintain safe, reliable and economic operation of the provincial transmission grid. How is AltaLink involved? While the AESO is responsible for identifying that transmission system development is needed, AltaLink, as the legal owner of the transmission facilities in the Red Deer region, is responsible for constructing, operating, and maintaining the associated transmission facilities. The AESO will direct AltaLink to submit an application to the AUC for approval to construct and operate the required transmission facilities. More information on the need application and the facility application processes can be found on the Commission s website at: http://www.auc.ab.ca/involving-albertans/getting-involved/pages/facilityapplicationprocess.aspx. Further Information The AESO appreciates your views on this need for transmission system development and your comments are encouraged. If you have any questions or suggestions about the need for this transmission system development in the Red Deer region or the AESO s application regarding this need, please contact: AESO Stakeholder Relations Please refer to project #813 1-888-866-2959 stakeholder.relations@aeso.ca 2500, 330 5th Avenue SW Calgary, Alberta T2P 0L4 The AESO is committed to protecting your personal privacy in accordance with Alberta's Personal Information Protection Act. Any personal information collected by the AESO with regard to this project may be used to provide you with further information about the project, may be disclosed to the Alberta Utilities Commission (and as a result, may become public), and may also be disclosed to the eligible legal owner of the transmission facilities. If you have any questions about how the AESO will use and disclose your personal information collected with regard to this project, please contact us at 1-888-866-2959 or at stakeholder.relations@aeso.ca. Page 3
Attachment 2 AESO Open House Advertisement Final Proof Alberta Electric System Operator RP-05-813 May 13, 2011
The AESO invites you to an Open House to discuss the need for transmission development in the Red Deer region. Red Deer Tuesday, February 22 Black Knight Inn 2929 50 Avenue 4:00-8:00 p.m. Innisfail Wednesday, February 23 Royal Canadian Legion, Branch 104 5108 49 Avenue 4:00-8:00 p.m. Ponoka Thursday, February 24 Royal Canadian Legion, Branch 66 3911 Highway 2A 4:00-8:00 p.m. Didsbury Wednesday, March 2 Multi-Purpose Room, Didsbury Memorial Complex 1702 21 Avenue 4:00-8:00 p.m. Red Deer Thursday, March 3 Holiday Inn 67 6500 67 Street 4:00-8:00 p.m. Sylvan Lake Friday, March 4 Sylvan Lake Community Centre 4725 43 Street 4:00-8:00 p.m. You re invited we re listening Open Houses for Transmission Development in the Red Deer Region The map above shows the region in which the Alberta Electric System Operator (AESO) has identified a need for transmission development. This region is centred around the City of Red Deer and extends south to Didsbury; north to Wetaskiwin; east to the Joffre area including the industrial complexes of Nova Chemicals; and west to the Benalto and Harmattan areas. This map does not identify proposed transmission line locations or proposed substation locations. AltaLink, the legal owner of transmission facilities will consult with the public regarding proposed line routes and substation locations later in the regulatory process. AltaLink will then file detailed line routes and substation locations with the Alberta Utilities Commission for approval. The AESO invites you to an Open House to discuss the need for transmission development in the Red Deer region In our role as the planner of the transmission system for all Albertans, the AESO has identified the need for transmission system development in the Red Deer region. This development is needed to meet the growing demand for electricity in the region, alleviate existing transmission system constraints, and enable potential wind generation developments in the region to connect to the transmission system. Please join us at any of the events listed above. AESO staff will be on hand to discuss this need, answer your questions, and record your comments. After receiving stakeholder input, the AESO will prepare and file a needs identification document with the Alberta Utilities Commission for approval. For more information about the AESO, please visit our web site at www.aeso.ca or contact the AESO at 1-888-866-2959 or stakeholder.relations@aeso.ca. For general information about Alberta s electrical system, please visit our site www.poweringalbertans.ca. The AESO is committed to protecting your personal privacy in accordance with Alberta's Personal Information Protection Act. Any personal information collected by the AESO with regard to this project may be used to provide you with further information about the project, may be disclosed to the Alberta Utilities Commission (and as a result, may become public), and may also be disclosed to the eligible legal owner of transmission facilities. If you have any questions about how the AESO will use and disclose your personal information collected with regard to this project, please contact us at 1-888-866-2959 or at stakeholder.relations@aeso.ca. Artist: 2N P r o d u c t i o n O n l y Docket: 103135 Date: Jan 17, 2011 Size: 7.19 Proof: 3 OPTION 2 of 2 Publication(s):
Attachment 3 AESO Notification of Filing Advertisement Final Proof Alberta Electric System Operator RP-05-813 May 13, 2011
Notification of AESO Regulatory Filing Need for Transmission Reinforcement in the Red Deer Region The Alberta Electric System Operator (AESO) advises you of its intention to file a needs identification document (NID) with the Alberta Utilities Commission (AUC) to reinforce the transmission system in the Red Deer region on or after May 13, 2011. The AESO has identified the need to reinforce the transmission system in the Red Deer region. Transmission development in the Red Deer region is needed for the following specific reasons: To alleviate existing constraints in the Red Deer region To enable the transmission system to continue to reliably meet the existing and growing demand for electricity The map above outlines the Red Deer region and highlights the approximate potential development area. The AESO presented this need and plans to address this need to residents, occupants and landowners near the proposed development and other stakeholders during a variety of consultation activities held from February to May 2011. The AESO has considered feedback gathered from stakeholders, and technical and cost considerations, and will apply to the AUC for approval of the need for this project. Once filed, the NID will be posted on the AESO website at http://www.aeso.ca/transmission/22715.html. Please visit our website, www.aeso.ca for more information, or contact the AESO at 1-888-866-2959 or stakeholder.relations@aeso.ca. Artist: 2N P r o d u c t i o n Docket: 103144 Date: Apr 19, 2011 Size: 6.12/6.29 Proof: 1.1 1 of 3 Publication(s): Various O n l y
Attachment 4 AESO Response to Stakeholders Alberta Electric System Operator RP-05-813 May 13, 2011
April 8, 2011 Click and type Recipient Name Click and type Address Line 1 Click and type Address Line 2 Click and type City, Province, Postal Code Dear Click and type Recipient Name Re: Red Deer Region Transmission Development In February and March 2011, the Alberta Electric System Operator (AESO) held six open houses to discuss planned transmission development in the Red Deer region. Just over 140 people were able to attend. Thank you for attending one of our open houses. We are sending you this letter because you filled out a participant survey and included your contact information. The purpose of this letter is to highlight the feedback we heard at these sessions, provide some information to address some of the questions most commonly referenced in participant surveys, and to outline the next steps involved in filing our application with the Alberta Utilities Commission (AUC). There are two attachments to this letter: 1. Answers to Commonly Asked Questions 2. A copy of the Red Deer Region Need Overview that the AESO sent to potentially affected stakeholders by postal code on January 28, 2011. We believe anyone potentially affected by transmission planning should have the opportunity to participate in the process and provide input. In April 2011, the AESO expects to file a needs identification document (NID) with the AUC outlining the necessity for transmission system development to relieve existing constraints and meet forecast load growth in the Red Deer region. The NID does not include specific line routes or facility locations. Route selection and facility locations are part of the facilities applications that will be prepared by AltaLink. As part of preparing these facilities applications, AltaLink will consult with potentially affected stakeholders. (continued on reverse)
Should you have any questions, please don t hesitate to contact Mark Sears-Gamache by email at mark.sears-gamache@aeso.ca or by phone at 403-539-2685. Yours truly, Dean Patterson Program Manager, Project Delivery South Page 2
From February 22 through March 4, 2011, the AESO hosted six public open houses in the Red Deer region to provide information about, and seek perspectives on, the potential developments of the transmission system in the area. Representatives from AltaLink Management Ltd., the legal owner of the transmission facilities in the region, also took part in these sessions. All participants at these events were invited to fill out a participant survey to give us their feedback Participant Survey Results from Open Houses Attendees were asked how they heard about the open houses: Direct Mail 21 Newspaper Advertisement 13 Word of Mouth 4 Other 4 Attendees were asked to comment on the helpfulness of materials used at the open house: Very Somewhat Not at all Were the displays helpful in understanding the proposed project? 25 11 0 Was staff helpful in answering questions? 34 3 0 Attendees were asked to comment on the adequacy of information provided at the session: The information provided at the session I attended was: Adequate 22 Too much 0 Too little 3 Just right 10 Too technical 0 Too conceptual 3 Page 3
Was the information provided on the need for transmission development fully addressed by the AESO? Yes 25 No 5 Unknown 1 What did we hear? Most of the questions raised at the open houses related to transmission facilities, such as questions about routing, environmental impacts, and health issues. These topics are best addressed by AltaLink, who will be consulting with the public as part of preparing their related facilities applications. The most common questions about the need for development related to cost, reliability and future development. Experts were available at the open house sessions to answer questions. For your reference, we are sending you the attached sheet that captures the answers to the questions most commonly asked in the participant surveys. What happens now? Having consulted with the public and reviewed the feedback, the AESO is preparing a needs identification document (NID). The NID will be filed for approval by the Alberta Utilities Commission (AUC) in April 2011. Once the NID is filed with the AUC, it will be posted on the AESO website at http://www.aeso.ca/transmission/22715.html. When the AUC is satisfied that the NID is complete, they will issue a Notice of Application inviting parties to file submissions. For more information on public involvement in the AUC application process, please visit http://www.auc.ab.ca/involving-albertans/gettinginvolved/pages/facilityapplicationprocess.aspx. Contact Information If you have any further questions or concerns, please contact Mark Sears-Gamache at mark.searsgamache@aeso.ca or by phone at 403-539-2685. Page 4
Answers to Commonly Asked Questions Cost of transmission development The Alberta Electric System Operator (AESO) plans the transmission system taking into account technical considerations, reliability standards, and operating and planning criteria. The AESO proposes the right technical solution to a transmission need. Where more than one potential technical solution exists for a given need, the AESO may consider other aspects to help determine the preferred solution Ultimately, the Alberta Utilities Commission (AUC) is responsible for ensuring that the costs associated with a transmission project are reasonable. The AUC reviews cost estimates submitted as part of the NID, and as part of facilities applications submitted by the owner of transmission facilities. The AUC also reviews actual project costs when it reviews tariff applications filed by owners of transmission facilities. It should be noted that the cost of transmission is paid by all ratepayers based on their use of the transmission system. The approximate division of transmission system costs is as follows: Industrial 61 per cent Commercial 19 per cent Residential 16 per cent Farms 4 per cent For transmission system developments of the type being considered for the Red Deer region, each residential ratepayer s bill could increase by approximately 25 cents a month in the transmission portion of their bill. AESO planning process Currently, our transmission system is running near capacity in many areas. Over the next 20 years, we expect an additional 11,500 MW of generation to be added to the grid. In that same time period, we expect overall demand for electricity to double. Upgrades to the system are needed in order to preserve the overall reliability of the system now and into the future. In regard to the Red Deer region, increased demand and the need to ensure reliability are key reasons for the need for transmission development. Demand for electricity around the City of Red Deer is expected to grow by approximately 3.5 per cent per year until 2017 and perhaps beyond. Demand for electricity around Didsbury is expected to grow by approximately 1.7 per cent per year over this same time period, Page 5
The Red Deer Region Transmission Development will help to ensure that the Alberta Interconnected Electric System (AIES) is able to reliably meet that future demand. The AESO constantly monitors and plans for the long-term needs of the system and prepares a Long-term Transmission System Plan (Plan) every two years. The 2009 Plan is available on the AESO website at http://www.aeso.ca/transmission/18185.html. For your convenience, information related to the Red Deer region is located on pages 137 and 339. The 2011 Long-term Transmission Plan will be released in early June and will be made available on the AESO website at that time. Consultation materials for the 2011 Plan are available at http://www.aeso.ca/transmission/22030.html. Generation in Alberta Our system depends on new generation to meet growing demand. The AESO s mandate is to connect any and all generation approved by the AUC regardless of the type or location of generation. The AESO is responsible for ensuring that a robust and reliable transmission system is in place to carry electricity from where it is produced to where it is needed in advance of that need. The AESO is often asked about localized generation, which is the practice of placing generation near where the electricity is consumed. For information specifically addressing localized generation, please refer to our fact sheet located at http://poweringalberta.com/wp-content/uploads/2010/09/09-localized- Generation_2010-10-25.pdf. Routing, landowner compensation and environmental concerns Many stakeholders at our open houses wanted more information on specific transmission line routes, the compensation for landowners affected by those routes and the potential environmental and health effects of transmission facilities associated with the Red Deer Region Transmission Development. Such matters are not addressed directly by the AESO in its NID. Instead, the transmission facility owner (TFO) in the area, in this case AltaLink, is responsible for addressing such concerns. An AltaLink representative was available at AESO s open houses to answer such questions. If you were unable to talk to AltaLink at the open house, they can be reached by email at siting.consultation@altalink.ca or by phone at 1-877-267-1453. AltaLink will be conducting its own public consultation program that addresses all the issues noted above after the AESO s NID is approved by the AUC. Consultation The AESO acts in the public interest of all Albertans and has no financial interest or investment of any kind in the power industry. As such, we make significant efforts to consult on transmission projects underway in the province. In the case of the Red Deer Region Transmission Development project, the Page 6
AESO mailed more than 94,000 stakeholder packages throughout the region. We also held six open houses to explain the need for transmission system development in the Red Deer region. Page 7