DRAYTON VALLEY — "Even though TransAlta's proposed Keephills plant expansion will be fired by so-called 'cheap' coal, consumers will not receive the benefit of lower-cost electricity if the project proceeds," says Tom Marr-Laing, Director of the Pembina Institute's Energy Watch program. "Because of the way the deregulated electricity system works, Albertans will pay similar prices for electricity whether it comes from coal- or gas-fired generation, but pollution from coal plants will expose Albertans to substantially higher human health and environmental risks."
These findings are the result of a recent electricity market supply/demand analysis conducted by the Pembina Institute (see the 11-page backgrounder).
Although coal-plants emit much higher levels of pollution than other generation sources, under the old "cost-based" regulated electricity system, consumers at least received the benefit of cheaper power. With the current deregulated system however, there is no longer a direct relationship between the cost of generation and the prices paid by consumers. The price is now determined by the last generator to add power to the electricity grid. Such "marginal units" are almost always natural gas plants, or high-priced imported power. As a result, consumers receive little to no economic benefit from coal-fired generation.
The Institute's analysis also shows that with 6,800 MW of new generation planned for the province by 2010, Alberta would have over 2,500 MW of surplus generation — even after allowing a reserve for equipment shutdowns and repair.
"Even if the province's economy remains strong and electricity demand continues to grow at 3% per year, there will be enough electricity from less polluting sources for at least a decade without adding the 2,200 MW of new coal plants being proposed," said policy analyst Mary Griffiths.
This analysis forms part of the Pembina Institute's submission to the Alberta Energy and Utilities Board hearing on TransAlta's proposed Keephills plant expansion. The Institute will be asking the EUB to reject TransAlta's application on the basis that new coal-fired plants are not needed at present to meet demand, will not result in electricity prices any lower than those from gas-fired generators, and will unnecessarily increase risks to human health and the environment.
The full submission, available on the Pembina Institute's website, is made on behalf of the Clean Energy Coalition, which also includes the Lake Wabamun Environmental Protection Association, the Environmental Resource Centre, Toxics Watch Society, Western Canada Wilderness Committee and the Mewassin Community Action Council.
For more information contact:
Tom Marr-Laing
Director, Energy Watch Program, Pembina Institute
Cell:780-621-2472
Email: thomasml@pembina.org
Mary Griffiths
Policy Analyst, Pembina Institute
Office: 780-433-6675
Cell: 780-915-9771
Email: maryg@pembina.org
For more information please see the backgrounder for this news release.
