Archives for May 2012

Thursday, 31 May 2012 02:01 Letter to the Editor

I must admit I am getting very tired of hearing ads on the radio from AltaLink and the Alberta Electric System Operator (AESO) telling us how much we need new transmission lines and how wonderful they are.
I asked myself why they would be advertising on the radio. Advertising is normally used by someone trying to sell something. Then I realized this is exactly what they are trying to do. They are trying to sell me something I don’t need. Why would they bother to do this? Because AltaLink stands to profit immensely from the planned transmission lines that Albertans don’t really need.
Interest rates today are amazingly low. The Canada Treasury Bill rate is currently under one per cent. Five-year mortgages at three per cent. Government of Canada 10-year bonds yielding 2.6 per cent. So we must be paying a low rate on these new transmission lines, right? Wrong! The generic return on equity for 2011 and 2012 is set at 8.75 per cent by the utility board.
Wow. How do I get a piece of that action? No wonder AltaLink is advertising. I would be doing everything I could, too, if I could get an 8.75 per cent return.
It is time for Albertans to rise up and be heard. Contact your MLAs and tell them that you are tired of big business profiting at the expense or ordinary Albertans.
John R. Davies
President, Lethbridge Iron Works Co. Ltd.

 By Keith Gerein, edmontonjournal.com May 29, 2012

EDMONTON – Debate raged Tuesday in the Alberta legislature over the issue of politicians’ pay, as MLAs gave approval to the majority of Jack Major’s proposals to clean up the compensation system.

The legislature’s vote on Tuesday to approve all but four of the recommendations from the former Supreme Court justice came over the objections of several opposition members. While Wildrose MLAs suggested aspects of the proposal are still too rich, Liberal members argued MLAs shouldn’t be debating their own compensation at all.

Liberal MLA Laurie Blakeman said the process can hardly be called independent if MLAs are “cherry-picking” only what they like from Major’s findings.

“We said we wanted someone else to do this for us, and what are we doing? We are debating our own pay,” she said. “We have the government saying we accept the report, except certain things.”

Tuesday’s vote means the issue now passes to the all-party members services committee, which is responsible for implementing the changes. If the committee moves ahead, MLAs will get Major’s recommended base salary of $134,000, plus up to $67,000 more when they take on extra responsibilities. Though the practice of additional money for committee work will end, Alberta MLAs will still be among the highest paid politicians in the country, behind only Quebec, territorial and federal politicians.

One of Major’s proposals that was not accepted concerns payment for the premier.

Instead of boosting Redford’s salary to $335,000 over the next three years, it will instead be set at approximately 25 per cent more than a minister with a portfolio. The premier’s salary is currently set at about $200,000.

The government has also pledged to eliminate severance pay and the tax-free portion of MLA pay. This will be countered somewhat by the reintroduction of a pension plan, which was scrapped by the Klein government in 1992. The member services committee has been asked to look at the advantages of going with a “defined-contribution” pension plan rather than the “defined-benefit” plan Major recommended.

Wildrose Leader Danielle Smith said her party agrees with many of the proposed changes, but believes some numbers are still too high. In particular, she said the pay for cabinet ministers, who voted themselves a 34-per-cent increase in 2008, should be rolled back.

“No one I spoke to during the recent election said cabinet ministers need a pay raise.”

Smith also targeted the “gold-plated” pension plan Major recommended, saying the government was right to have killed it two decades ago.

“Reinstating this would be a slap in the face to Alberta taxpayers and hard-working Alberta families,” she said. “If we accept this, we merely affirm that which most people already believe about their politicians, that we aren’t really interested in serving the public, that we are merely here for what we stand to gain from it.”

The NDP said politicians pay should be re-examined to get more in line with typical Albertans.

Government House Leader Dave Hancock said he also hopes the members services committee pushes toward a defined contribution plan, which carries less risk of liabilities. However, he took issue with the suggestion that MLAs were again setting their own pay.

“Where we are asking (the committee) to deviate from the report I think is in structure rather than in substance,” he said. “So I think it meets the objective of saying that we’re accepting Mr. Justice Major’s report.”

It is unclear when the committee, leader by new Speaker Gene Zwozdesky, will hold its first meeting.

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© Copyright (c) The Edmonton Journal

 Another example of the effects of overbuilding the transmission system and the death spiral of rate impacts . . .

 You will remember how Albert’s major industry groups (IPCAA and ADC) have been warning that the costs of overbuilding our transmission system will force plants to leave the province or go off the grid and generate their own power behind the fence.  They warned that this will cause those who stay to pay even more for the unneeded transmission lines because transmission lines are a fixed cost that we all pay for whether or not they are used or needed.

 Well, we found this article in the Globe and Mail about what is happening right now in Nova Scotia as a current example that proves the Industries’ point about over-building.  

 Mill closings prompt Nova Scotia power company to seek higher rates

JANET TABER

HALIFAX— Published Wednesday, May. 09, 2012

Nova Scotia’s power company blames two troubled paper mills for forcing it to raise electricity rates for the second time in less than a year.

The province’s power rates are already among the highest in the country and now, Nova Scotia Power Inc. is asking ratepayers for even more, citing the shutdown of one mill and reduced operations at the other.

It’s all because of deep trouble at its two largest customers: the paper mill in Cape Breton, which shut down last September, and the Bowater Mersey Paper Co. on the province’s south shore, which is operating intermittently.

“We face unusual circumstances in Nova Scotia at this time,” the company says in its application. “The system’s largest customer is currently not operating.”

It goes on to note that it still has fixed costs, and its second-largest customer “Bowater Mersey” – will not be able to contribute because of its precarious circumstances.  It is expected to be shut down for several weeks this year.

“This is happening at a time when sales to other customers are not growing so we are not easily able to absorb those unavoidable fixed costs,” the document says.

Progressive Conservative Leader Jamie Baillie said the irony in this is that the two mills cited high power costs as a reason for their troubles.

“Now Nova Scotians are being told the answer to that problem is even higher power rates,” Mr. Baillie said. “We intend to pursue that aggressively. … It’s a vicious circle.”

The power company acknowledged its latest rate-increase proposal comes at a time when many Nova Scotia households and businesses are struggling to manage increases in the cost of heating oil, gasoline, tap water, groceries and other necessities.  “We realize customers will be unhappy to hear NS Power is asking for another increase.”

Haligonians pay the fourth highest rates in Canada after Calgarians and residents of Charlottetown and Regina, according to a 2011 Hydro Quebec study.

Heartland Appeal Update

 The procedural court documents for the next steps will be filed next week.  We will provide further details at that time. 

Again, we thank each and every one of you that contributed to the AUC Heartland decision Appeal.  We are still receiving the pledges that were made, and are very grateful.  If you still have a pledge that has not been sent, please do so, as we are counting on everyone’s commitment to support the Appeal.  It is moving forward, thanks to your help.

 Property Rights

 Attached is an Edmonton Sun editorial that addresses the importance of property rights and the troubling actions of the Alberta Government with the Land Bills.

 Also, last week the Fraser Institute released a report on property rights:  Stealth Confiscation: How Governments Regulate, Freeze, and Devalue Private Property. (summary attached)

 The report proves what we have been saying about the Land Bills.  Interestingly, the report uses the Alberta case of Nillson v. the Alberta Government as illustration of how provincial governments have attempted to use their law making powers to confiscate property without compensation. 

The report also shows why the government’s claim that “compensatory takings” will be compensated under Bill 10 is simply a sham.  No one will get compensated under Bill 36, the Alberta Land Stewardship Act when the Cabinet uses its new central planning powers.

The complete report is available at this link:  http://www.fraserinstitute.org/uploadedFiles/fraser-ca/Content/research-news/research/publications/stealth-confiscation-how-governments-regulate-freeze-devalue-property.pdf

 Land Bills – Premier’s Redford’s New Cabinet and Ministry Re-Organization

We have not heard anything from Ms. Redford or her new government as to their plans for the Land Bills. All that we know is what she said before the election:  she intends to move forward and implement them as part of her vision of “Alberta By Design” of government officials. 

 We do know that she has merged the department of Environment and Sustainable Resource Development.  This may be a first step to full implementation of the Land Bills.

 We will keep you posted if we hear anything more. 

 Alberta Landowners Council

By Trish Audette, edmontonjournal.com May 14, 2012

“It’s something that we take seriously,” Alberta Environment spokesman Trevor Gemmell said Monday.

“Alberta has strict environmental laws. We believe the law was broken and that’s why charges were laid.”

Gemmell could not say how long the gas was released or whether there were complaints from anyone affected.

Hydrogen sulphide has a rotten egg smell. Its release can kill birds, aquatic life and animals, and prolonged exposure to high concentrations can cause sleepiness, blurred vision or respiratory failure in people, Alberta Environment says.

To some extent, hydrogen sulphide is always released when bitumen is produced. The charges laid Friday and announced Monday likely stem from exceeding agreed-on limits for the Horizons facility, about 70 kilometres north of Fort McMurray.

“This is a huge concern for social license in the oilsands,” said Marc Huot, an oilsands policy analyst for the Pembina Institute, an environmental think-tank.

“Things like failing to report these exceedances brings into question whether or not it’s possible for oilsands companies to operate in an environmentally responsible way.”

Huot noted the same company has faced similar charges before, and been penalized. According to the province, last September CNRL paid a $22,500 penalty for exceeding its sulphur dioxide emissions limits and failing to report immediately. In December 2010, the company paid $12,500 for exceeding emissions and not reporting its sulphur dioxide emissions.

“I think probably the biggest challenge here is that there’s just not adequate enforcement right now,” Huot said.

CNRL is now charged with one count of releasing hydrogen sulphide gas at a level, concentration, or rate that could cause significant adverse effect on May 28, 2010, and two counts failing to report the release between May 28 and June 3, 2010.

Canadian Natural Resources Ltd. is to appear in court in Fort McMurray on July 11. The company did not respond to interview requests.

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To see information filed in provincial court, visit edmontonjournal.com

© Copyright (c) The Edmonton Journal

Calgary mayor uses Enmax meeting to reiterate effort to shield consumers from surcharges

By Jason Markusoff, Calgary Herald May 12, 2012

Calgary’s Mayor says he is very pleased to see the man he battled in the 2010 civic election is now Alberta’s new transportation minister. Naheed Nenshi says Mayoralty candidate Ric McIver should be a strong ally for Calgary – especially with his previous efforts to champion the southeast C-train line and a southweest ring road. McIver was appointed to Alison Redford’s cabinet Tuesday.

CALGARY — Although it appears the war’s been fought and lost, Mayor Naheed Nenshi railed Friday against the province’s move to build north-south power transmission lines and vowed to continue pressing for a way to shield Calgarians from surcharges for the lines.

At the annual general meeting of Enmax — the first one for new CEO Gianna Manes — the mayor called the $3-billion twin power lines a “terrible” idea that won’t be needed because of the city-owned utility’s own project, a $1-billion gas-fired power plant in the Shepard district.

“And to build both of them and to put those costs on everyone, even the ratepayers in Calgary who, once the Shepard Energy Centre is built, actually won’t be using them very much, strikes me as very, very strange public policy,” the mayor told reporters after the meeting.

He said he’ll try lobbying Energy Minister Ken Hughes on this front, though he’s not confident he’ll have success.

Earlier this year, an independent review committee — appointed by Premier Alison Redford — reconfirmed the need for the extra transmission capacity, which Alberta Energy plans to have in service by late 2015 for a provincial population forecast of four million.

The need is there for both lines, and having both in different parts of the province also protects the grid from weather shocks, government spokesman Bob McManus said.

“If you have an ice storm or you have heavy snow or you have some kind of problem in one part of the province, it’s unlikely to also occur in the other part of the province.”

Since all power providers use the provincial electricity grid, all customers must pay the cost of new lines equally.

The province estimates the cost of the power lines will add $3 to monthly power bills, but the Redford government has urged the electricity regulator to find ways to limit those costs.

Charles Ruigrok, the utility’s outgoing interim CEO, said Enmax recognizes the eventual need of the lines — it’s a matter of when.

“Our hope will continue to be that despite the fact that construction of both lines has been approved and supported, that we will still see it phased in a smart way so that consumers aren’t asked to pay the cost of transmission infrastructure that’s not required.”

For most of his term, Nenshi has been less outspoken on Enmax transmission policy than on the company’s governance record, including pay and perks controversies that saw former CEO Gary Holden ousted last year.

With new chief executive Manes standing next to him, he told reporters “this is a very different feel than the AGM a year ago.”

Manes, who was a senior executive at U.S. power giant Duke Energy, was loath to talk Friday about her new company’s past.

She said she’s looking forward to working with the current “solid” executive team and moving her family to Calgary.

“What I can do as a leader of Enmax, really, is to bring my leadership and practice those values. What I’m concerned about is how we behave going forward,” Manes said.

Holden, fired in January 2011 after it was revealed he took a trip to Monaco on a software provider’s tab, was paid a total $5.7 million in salary, severance and pension last year, CBC News reported Friday. The company had previously disclosed that his severance was $4.6 million.

City hall will reap a 2012 dividend of $56 million, nearly the same as last year, after 2011 net earnings rose to $184.6 million from $177.8 million in the previous year. The firm’s revenue had risen by $700 million over the 2010 level, but that was matched by a rise in expenses.

Early returns for this year, however, are looking rosier: $62.6 million net earnings in the first quarter, compared with $49.8 million in the first quarter of the prior year.

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© Copyright (c) The Calgary Herald

SOURCE: Burns & McDonnell

May 04, 2012 08:00 ET

CALGARY, AB–(Marketwire – May 4, 2012) – Burns & McDonnell-Canada has been awarded a 5-year contract by AltaLink, L.P., to provide engineering, procurement and construction (EPC) services for a range of high-voltage transmission line and substation projects throughout the Province of Alberta, Canada. Headquartered in Calgary, AltaLink employs 700 and owns and operates the electrical transmission system serving approximately 85 percent of the residents of Alberta.

The transmission projects will be determined based on need assessments and permitting approvals. Though the project list may be modified, many are expected to address power demands from oil sands development and emerging areas of population growth. Others will assist in integrating new generation from wind resource areas into the Provincial grid. The contract includes a 5-year option for additional project support following completion of the initial 5-year contract in 2017.

“With the historic investments now planned for the electrical transmission infrastructure in Alberta and throughout Canada, Burns & McDonnell-Canada is excited and honored to have been awarded this opportunity,” said Walt Womack, President of Burns & McDonnell’s Transmission & Distribution Division. “We are ready to get to work in securing reliable and clean power for the citizens of Alberta for many years to come.”

Burns & McDonnell-Canada will work with Provincial and Canadian suppliers and contractors on various projects as they are prequalified based on qualifications, safety, and quality performance. In addition, a number of local employment opportunities are anticipated in Calgary and other locations as Burns & McDonnell staffs up to support the various projects.

Burns & McDonnell has extensive experience in power transmission project development including regional planning in various ISO/RTOs throughout North America, routing and permitting, land acquisition, community and stakeholder relations, and finance support. This experience complements its traditional project engineering, procurement services, quality control / assurance, schedule control, cost control constructability process reviews, risk management, construction management and other construction services including testing and commissioning.

About Burns & McDonnell

Founded in 1898, Burns & McDonnell is a 100 percent employee-owned, full-service engineering, architecture, construction, environmental and consulting services firm. Burns & McDonnell is currently the 23^rd largest AEC firm in the Engineering News-Record Top 500 ranking. With the multi-disciplinary expertise of more than 3,400 professionals in more than 30 regional, national and international offices, Burns & McDonnell plans, designs, permits, constructs and manages facilities worldwide with one mission in mind — to make our clients successful. For more information about Burns & McDonnell, visit www.burnsmcd.com or www.burnsmcd.ca.

AltaLink publicly apologizes for land agent’s behaviour involving transmission-line project

Saturday, April 30, 2011

By Hanneke Brooymans, edmontonjournal.com

Epcor Utilities and AltaLink have submitted their application to the Alberta Utilities Commission to build the controversial Heartland high-voltage transmission line.

EDMONTON – AltaLink publicly apologized at the Heartland transmission project hearing Friday for the appalling conduct of a land agent it hired to make deals with landowners in the path of the transmission line.

Len Kozak, whose mother owns a farm near Gibbons, said a land agent visited the family farm on April 16 at their invitation to discuss a possible offer. The project team, consisting of AltaLink and Epcor, wants to put five towers on their land as part of a 500 kilovolt, double-circuit transmission line between south Edmonton and the industrial heartland northeast of the capital.

Kozak said his mother, who is 76, has poor hearing and won’t wear a hearing aid. She asked him to tape the conversation.

The project team has sent land agents out to landowners along the preferred route running east of Edmonton to try to reach tentative agreements. The alternate route runs around the western outskirts of Edmonton. Landowners in the preferred route were offered $10,000 if they signed an early access agreement, which would also prohibit them from intervening at the hearing.

“The statements and the things this employee said were nothing more than intimidation tactics to get us to sign our rights away,” Kozak said. “He said things like AltaLink had the support of the premier, had the support of the Progressive Conservative party, that the AUC had already made their minds up that this thing was going ahead. That the western route was nothing more than a bureaucratic optics show, that it was only a requirement that AltaLink had to fulfil and that ultimately if we didn’t sign and take this $10,000, it wouldn’t be available to us when the (Alberta Utilities Commission) made their decision.”

The conversation between the land agent and the Kozaks was professionally transcribed and submitted as evidence to the commission panel currently reviewing the project application.

Kozak and his mother didn’t take the money. Instead, Kozak on Friday cross-examined Darin Watson, AltaLink VicePresident, Major Projects.

“When I read through this transcript,” Watson told the hearing, “I was absolutely appalled at how this land agent represented us, represented the AUC, represented our partner Epcor, speculated on many, many things, misrepresented many things.”

The land agent in question works for Standard Land. Watson said the agent was terminated from all of AltaLink’s work and won’t be working for the company as long as he’s around. He also said Standard Land was suspended from further work, pending investigation. The company also plans to see who else the agent talked to and “ … see what the heck he might have said to them,” Watson said.

According to the transcript of the conversation with the family, the land agent said, “The main reason that (Stelmach) supports it is because he — he feels that the need is very obvious. He feels like there’s no need to actually debate whether or not we require this. He says let’s get it done. And the second reason he supports this is because the timing during the last two years of economic downturn has been brilliant, and this has employed a lot of people and generated a lot of jobs and a lot of work. So the timing of the line just so happens to be perfect, and he feels that the need for transmission is very obvious.”

Standard Land, based in Calgary, declined to comment.

Jim Law, a spokesman for the commission, said they couldn’t comment because the hearing was in progress.

Kozak said he believes the three people on the commission panel holding this hearing are honourable and have impeccable credentials. He doesn’t believe they’ve already made their decision.

But he believes that the land agent’s behaviour was a symptom of how poorly the landowner consultations have been conducted. And he wasn’t happy that the project team won’t admit that fact.

John Kristensen, technical vice-president of Responsible Electricity Transmission for Albertans, said he thought the way AltaLink handled the situation was professional and that Watson’s apology seemed sincere.

But overall, he agreed with Kozak that it was one more example of how poorly the public consultation has gone. An example, he said, is how the maximum height of the towers has changed throughout the process, from 60 metres to 77.

“They just tabled this week a brand new set route of the preferred route. All of a sudden they were able to move the preferred line 100 to 200 metres farther to the west within the Sherwood Park green belt, or the east (transportation utility corridor). So there’s just a constant state of amending the infrastructure they’re going to build or where they’re going to route it. … It’s the most confusing sort of application I’ve ever seen in my life and I’ve been involved with quite a few of them. So it’s been a moving target to the point where landowners aren’t sure what to comment on when they’re asked for their public input as directly affected and adversely affected landowners.”

The Heartland project hearing is expected to take another two weeks.

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© Copyright (c) The Edmonton Journal

By Dina O’Meara, Calgary Herald May 2, 2012

Alberta transmission operator AltaLink LP has awarded its parent, SNC-Lavalin Group Inc., the contract to build a controversial $2-billion Edmonton-to-Calgary power line, the companies said Tuesday.

The Montreal-based engineering giant, which took full ownership of AltaLink a year ago, won an “open and competitive” bidding process to construct the Western Alberta Transmission Line, a deal estimated at $1.6 billion by industry analysts.

“We are proud to have success-fully competed for this new con-tract and we are pleased to have been able to demonstrate value for money through our proposal,” Patrick Lamarre, SNC-Lavalin executive vice-president, said in a statement.

The contract is to deliver engineering, procurement and construction for transmission lines and substations based on project need assessments and permitting.

The deal constitutes the bulk of AltaLink projects for the next five years, including about $1.4 billion for the high voltage direct current power line to link power generation west of Edmonton to demand loads in Calgary and southern Alberta.

© Copyright (c) The Calgary Herald

 By Elise Stolte, edmontonjournal.com May 2, 2012

EDMONTON – A First Nations “freedom train” protesting the planned pipeline through B.C. will stop Wednesday in Edmonton, as demonstrators march to the beat of 40 drums from the Alberta legislature to the Enbridge offices on Jasper Avenue.

The group of 60 First Nations representatives are travelling from B.C. to Toronto in time for the Enbridge shareholders’ meeting, stopping in Jasper, Edmonton, Saskatoon and Winnipeg to hold rallies and build alliances with like-minded supporters.

“It’s not just a First Nations issue,” said Geraldine Thomas Flurer, co-ordinator for the Yinka Dene Alliance, which covers 25 per cent of the proposed pipeline route through the B.C. interior.

It’s an issue of clean water, she said. “We know it’s a guarantee. Wherever you have oil pipelines, there is going to be a leak. It’s going to get into the water.

“Enbridge takes very little responsibility for the cleanup. If you knew that your tax dollars were going to clear up their mess, I don’t think Canadians would agree to that.”

Enbridge Inc.’s proposed Northern Gateway pipeline from Edmonton to Kitimat, B.C., is currently in the midst of a federal regulatory review. If approved, it would cross about 1,000 waterways and is bitterly opposed by B.C.’s First Nations and environmentalists. Opponents fear Ottawa’s recently proposed changes to the Fisheries Act will lessen oversight and make projects such as Northern Gateway easier to approve.

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twitter.com/estolte

© Copyright (c) The Edmonton Journal

By Darcy Henton May 1, 2012

EDMONTON — Wildrose Leader Danielle Smith unveiled her shadow cabinet Tuesday, giving all 17 Wildrose MLAs — including herself — assignments to critique the new Alison Redford Progressive Conservative regime.

Smith will take responsibility for monitoring issues related to the cities of Edmonton and Calgary as well as the country, world and Alberta First Nations while serving as critic for Intergovernmental, International and Aboriginal Relations.

As expected, Airdrie MLA Rob Anderson will continue as House Leader and serve as critic for Finance and Treasury Board.

Calgary-Fish Creek veteran MLA Heather Forsyth gets to important health portfolio to watch while Shayne Saskiw, who defeated PC transportation minister Ray Danyluk, will handle the duties of deputy house leader and serve as critic for Justice and the Solicitor General.

Kerry Towle, elected in Innisfail-Sylvan Lake, will serve as caucus whip and Seniors critic while Bruce McAllister, who defeated PC giant Ted Morton in Chestermere-Rocky View, will serve as deputy whip and as Education critic.

Jason Hale, of Strathmore-Brooks, will be Energy critic, power line crusader Joe Anglin, of Rimbey-Rocky Mountain House, gets Environment, Water and Utilities and Drew Barnes, MLA for Cypress-Medicine Hat, gets Infrastructure and Transportation.

Gary Bikman of Cardston-Taber-Warner is assigned to watch Advanced Education, Little Bow MLA Ian Donovan gets Agriculture and Rural Development and Rod Fox of Lacombe-Ponoka will serve as Service Alberta critic.

Calgary-Shaw MLA Jeff Wilson gets the biggest ministry to watch, Human Services, Livingstone-Macleod MLA Pat Stier gets Sustainable Resource Development, and Bruce Rowe, of Olds-Didsbury-Three Hills, gets Municipal Affairs.

Medicine Hat MLA Blake Pedersen will serve as Arts, Culture and Community Services critic, and Rick Strankman of Drumheller-Stettler, will watch over Tourism, Parks and Recreation.

The list of critics was revealed late Tuesday following a candidate school for all new MLAs. The rookie MLAs heard a speech from outgoing speaker Ken Kowalski and received training on their duties and obligations as members of the Legislative Assembly.

A new speaker will be selected by secret ballot before the next sitting begins.

Redford is expected to name her new cabinet shortly, in advance of a planned late spring sitting. No date for the sitting has been released.

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© Copyright (c) The Calgary Herald