Electric Transmission System Development in Alberta

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Electric Transmission System Development in
Alberta

• Neil J. Brausen, P. Eng., Director System
  Planning
• APEGGA Calgary Branch Luncheon
• March 17, 2004

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Electric Transmission System Development in
Alberta

• Industry Background and Structure
• AESO Core Business Functions
• Transmission Planning Process
• Transmission System Development
• Questions

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Industry Background and Structure
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Albertas Electric Industry

• single control area of 660,000 km²
• 20,000 km transmission 450 substations
• B.C. Sask. interconnections
• 8,570 MW system peak
• over 130 generating units
• 10,515 MW internal capacity net to grid
• over 200 market participants

BC
Alta
Sask
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Albertas Electric Market
TransAlta/ATCO/EP
Existing Generating Units
New Generation (IPPs)
Balancing Pool
Marketer
Market
Transmission
Transmission Facility Owners
Distribution Wire Service Provider
Retailer
Retailer
F
F
H
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Industry Model Post-Restructuring
Vertically Integrated Utility
Functional Separation
competitive forces
Generation
natural monopoly
Transmission
natural monopoly
Distribution
competitive forces
Retail
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AESO Core Business Functions
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Who Is the AESO?

• Statutory organization integration of previous
  Power Pool and Transmission Administrator
  functions
• Not-for-profit
• Revenue generated from trading charge and
  transmission tariff
• Hold no assets
• Impartial - no affiliation with industry players
• Regulated by the Energy and Utilities Board
• Governed by board of directors appointed by the
  Minister of Energy

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Industry Structure (June 2003)
Electric Utilities Act
Minister of Energy Appoints Board members , MSA
EUB Chair
Balancing Pool
Market Surveillance Administrator (MSA)
Alberta Electric System Operator
Alberta Energy Utilities Board (EUB) Regulates
AESOs Transmission business
Wholesale Energy Market
Load Settlement
Transmission
Real-time Alberta Electric System Operator
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Transmission Planning Process
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Transmission Planning - The Process

• Determine the inputs.
• Identify the anticipated problems.
• Develop the alternatives.
• Analyse the alternatives.
• Choose the preferred solution.
• Initiate the project(s).

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Transmission Planning - The Inputs

• Load - forecast, location, timing, peak vs.
  off-peak
• Generation - size, location, timing, merit order
• Existing system - capacity, equipment ratings,
  operating constraints
• Planning criteria - bulk system, subtransmission,
  load supply stations
• Externalities - siting and routing
  considerations, planning horizons for other
  stakeholders, other jurisdictions

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Transmission Planning - Project Initiation

• AESO determines need for system expansion or
  upgrade.
• AESO prepares Need Application and files with
  Energy and Utilities Board (EUB).
• EUB considers application and makes decision.
• Following receipt of EUB approval AESO procures
  project from a transmission facility owner (TFO).
• TFO prepares and files Facility Application with
  EUB.
• EUB considers application and makes decision.
• Following receipt of EUB approval TFO proceeds
  with construction of project.

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Transmission System Development
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AESO Transmission Strategy Objectives

• To define a transmission system development
  strategy that will enable the timely approval and
  construction of transmission facilities so as to
• Provide adequate transmission facilities that
  will meet defined reliably and performance
  criteria and provide efficient service
• Facilitate the development of new generation in
  the system
• Facilitate the competitive wholesale electricity
  market so as to allow market forces to minimize
  the overall delivered wholesale cost of
  electricity to consumers
• Strategy Deliverable The Conceptual Plan

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The Conceptual Plan

• Objectives
• 20 year outlook for system development
• primary focus on 500 kV development
• Better understanding of the implications of
  alternative generation and export scenarios on
  the development of the transmission system
• Preliminary evaluation of the impact on the
  overall costs of generation and transmission
  costs of the alternative generation and export
  scenarios
• 3 generation scenarios - Ft. McMurray, Edmonton
  area, southern Alberta area
• 3 export scenarios - 0, 1000 and 2000 MW
• 2 load forecast scenarios - expected, high

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North - South Upgrade

• 1. Convert the south Keephills to Genesee to
  Ellerslie circuit to 500 kV operation by 2006,
  estimated cost 32M
• 2. Build 1st north - south 500 kV cct from
  Genesee to Langdon by 2009 estimated cost 300 M
• 3. Acquire right-of-way for 2nd north - south 500
  kV cct from Keephills to Langdon estimated cost
  11 M
• 4. Acquire right-of-way for /- 500 kV HVDC line
  from Fort McMurray area to Calgary area
  estimated cost 45 M

FM
EL
KH
1
GN
3
4
2
LD
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Southwest Alberta - Staged Development, Triggers
and Cost Estimate
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Proposed Development - Southwest Alberta
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Other Transmission Constraints

• To northwest Alberta
• Into southeast Alberta, including tie to
  Sask.
• Local Edmonton and Calgary areas
• Other regional and local upgrades

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Questions?
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Contact Us
Current Prices and Market Statistics Historical
Reports News, Announcements Market and
Transmission Access www.aeso.ca
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