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When natural gas power plant outages brought Alberta’s electricity grid to the verge of collapse last April, one key factor kept the lights on. That crucial backstop? Imports of electricity from B.C. and other areas, through what are known as interties.
Yet despite the role imported power plays as a source of reliability and insurance, Alberta has neglected those lines, much to the consternation of provincial and state neighbours.
Through a freedom of information request, The Narwhal obtained a letter B.C’s former energy minister wrote last July to Alberta’s minister of affordability and utilities, Nathan Neudorf. In the letter, then-B.C energy minister Josie Osborne urged Alberta to prioritize upgrades on the electricity link between the two provinces — something it has been obligated to do under its own Transmission Regulation since 2007.
As Alberta embarks on a massive overhaul of its electricity market, the letter revealed B.C. was growing concerned power imports were being overlooked. Osborne cited short-term solutions she said likely wouldn’t have a significant impact on the intertie’s capacity and past promises from the Alberta Electric System Operator — the independent agency that operates Alberta’s grid — to improve the link that went unfulfilled.
“Given this context, B.C. is becoming increasingly concerned that intertie restoration efforts may have ceased to be a priority,” Osborne wrote.
The former minister argued Alberta was restricting imports of electricity, in violation of interprovincial agreements and to the financial detriment of B.C.
A ministerial briefing note written at the same time as Osborne’s letter said Alberta was restricting commercial imports of electricity on the line and then relying on the intertie in times of emergency to draw power from B.C. and other jurisdictions — without due compensation.
“The choice to significantly de-rate the intertie’s commercial capacity from B.C. to Alberta, a choice taken despite the availability of other options and instead of making restorative investments, undermines the intended mutual benefit by creating asymmetric market access for Alberta supply,” Osborne wrote to Neudorf.
Since then, Neudorf has directed Alberta’s grid operator to initiate work on the intertie, but it remains unclear whether that work will satisfy its neighbour to the west.
A BC Hydro presentation written after Neudorf’s direction stated, “There is no mechanism currently in place to ensure the B.C.-Alberta intertie is being utilized most effectively for the benefit of both parties.”
Interties can be a critical component of a reliable electricity grid, pulling hydro power from B.C. when required, or sending renewables and natural gas from Alberta west. The more connections there are, the more stable the system is.
Interties can also contribute to competition in Alberta’s private electricity market and bring down prices — a goal of the government and a concern for the province’s big power generators.
Suncor, which is now one of the largest generators in Alberta, has filed a complaint with the Alberta Utilities Commission to add an additional charge to electricity imports.
Alberta is currently the least interconnected province in the country, according to the Alberta Chamber of Commerce, which argues the lack of reliable interties impacts prices, competition and the ability to sell exports, as well as emissions reductions targets.
The B.C. intertie is supposed to allow 950 megawatts of imports — approximately five per cent of Alberta’s generating capacity — but requires infrastructure upgrades to achieve that level.
Jason Wang, an electricity analyst with the Pembina Institute, noted Alberta is able to export more electricity to B.C. than it can import from B.C.
The line is also intentionally restricted by the Alberta Electric System Operator so that it can respond quickly to issues with the Alberta grid.
Wang, with the Pembina Institute, described the B.C.-Alberta intertie as a four-lane highway with all the space that’s needed for traffic to flow, but littered with potholes on the Alberta side. Once you cross the border, everything slows down.
Fixing those “potholes” on Alberta’s side of the intertie requires infrastructure such as substations and batteries that can quickly respond to fluctuations on the grid, which Wang said will require significant investments.
To the south, Berkshire Hathaway Energy — the private company which owns the Montana intertie — argues Alberta is also restricting imports on the intertie it operates between Montana and Alberta and has filed a complaint with the Alberta Utilities Commission.
Berkshire Hathaway spokesperson Scott Schreiner declined to comment for this story.
“Stakeholders in Alberta’s electricity market, including ourselves, are currently participating in consultations on market design and policies, so we have no comment at this time,” he wrote.
Part of those market reforms aim to address how imports of electricity are treated in Alberta’s private system and how the prices are determined, but those details haven’t been finalized.
On Wednesday, B.C. Energy and Climate Solutions Minister Adrian Dix told The Narwhal he’s having regular conversations with Alberta, including a meeting this week with Neudorf.
Dix wouldn’t say whether he believes the changes on the table in Alberta will be enough to satisfy his government, but insisted the two jurisdictions are trying to find a solution as Alberta reforms its market.
“We’re working closely with the Alberta government and look forward to a positive resolution for both our provinces one of these days,” Dix said, adding B.C.’s concern is about who benefits from the market reforms being discussed in Alberta.
The Alberta Electric System Operator responded to a request for an interview by pointing to a letter from Neudorf outlining the need to work on the B.C. intertie, as well as interties with Montana and Saskatchewan. It also directed The Narwhal to its recently released “Long-Term Transmission Plan.”
Both documents call for a “needs identification document” for the restoration of the intertie — essentially a justification for a project — to be submitted by the end of 2026.
Ashli Barrett, the spokesperson for Neudorf, said Alberta is updating transmission policies and “reducing red tape” to improve interties.
“We intend to bring forward legislation this spring to support these changes as part of the government’s efforts to ensure Albertans have reliable and affordable power now and for generations to come,” Barrett said by email. “When fully implemented, these changes will restore the Alberta-B.C. intertie to 950 megawatts.”
The grid operator’s long-term plan calls for a three-step approach to improve interties, ultimately leading to an increased ability to import power.
A longer-term plan calls for investigation into a second line connecting Alberta and B.C.
In its presentation last year, BC Hydro said some proposed reforms could increase costs for B.C. ratepayers. It said a negotiated agreement with Alberta would be the preferred route, but didn’t rule out taking other, unspecified measures if that fails.
“There might be consequences for B.C. and there are consequences that we could respond to,” Dix told The Narwhal. “But rather than responding to that in that way — I think especially in these times — we’ve got to take every step to work together to have mutually beneficial arrangements.”
— With files from Shannon Waters
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