March 14, 2025

IPPSA Intelligence

Welcome to this week's edition of IPPSA Intelligence! 

A huge thank you to everyone that attended IPPSA31. It was the largest turnout we've ever had. IPPSA32 is slated for March 8-10, 2026 at the beautiful Banff Springs Hotel.

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Alberta Electric System Operator

The  AESO has raised multiple issues concerning the impact of recent federal Clean Electricity Regulations (CER) on the province's electricity system in a recent analysis. The report has raised concerns that compliance with these regulations could bring about significant challenges, including an estimated additional $30 billion in costs, a potential 35% rise in electricity prices, and a marked decrease in the reliability of the electricity grid. They emphasize that the restrictions imposed by CER may push Alberta toward relying on untested technologies while limiting the use of established natural gas solutions, which are crucial for maintaining system reliability.

The AESO has started actively seeking stakeholder feedback as part of its ISO Tariff Redesign process to improve connections to the electrical grid. Feedback is due on May 27th.

Finally, The AESO announced the release of its 2024 Annual Market Statistics report, which shows a significant shift toward cleaner energy sources, a reduction in average pool prices, record peaks and an increase in renewable energy contributions which have created some challenges.

Footnotes

1. Assessing the Impact of Canada's Clean Electricity Regulations on Alberta's Power System: Risks to Reliability and Affordability
2. Engaging Stakeholders: Alberta's ISO Tariff Redesign for Enhanced Energy System Connections
3. AESO 2024 Annual Market Statistics: A Comprehensive Review of Alberta's Electricity Landscape and Transition to Cleaner Energy

Government of Alberta

On top of the AESO's report, the Government of Alberta is voicing strong opposition to the federal government's Clean Electricity Regulations, arguing that the anticipated costs of implementing these policies will be substantial and will adversely affect electricity reliability in the province. Alberta ministers have indicated that the new regulations could result in a $30 billion financial burden for citizens and a significant increase in energy prices. They assert that Alberta has already made considerable progress in emissions reductions and that further measures should not impose additional costs without demonstrable environmental benefits. The government expresses a commitment to challenging the federal regulations legally to protect both the economy and the energy reliability of Alberta.

New data from province  reveals that the province holds over 1,360 trillion cubic feet of natural gas, including 130 trillion cubic feet of proved and recoverable reserves. This substantial gas resource, compared to Texas’ 170 trillion cubic feet, has helped boost Canada’s global ranking from 15th to 9th. Alberta’s oil resources are equally impressive, with a total in-ground figure of 1.8 trillion barrels and additional growth opportunities from areas like the Clearwater basin, extending the province’s supplies. 

Footnotes

1. Alberta Ministers Challenge Federal Electricity Regulations: Concerns Over Costs and Reliability
2. Alberta's Natural Gas Reserves Surge: A New Era for Canada's Energy Sector

The Tilley Solar Project

This article discusses the Tilley Solar Project, a nearly completed C$52 million 23.6MW solar farm in Alberta that highlights a collaboration between Indigenous groups and a business venture. The project is highlighted as a model for future Indigenous-led energy initiatives and showcases how technological and innovative approaches can address local energy needs, despite facing regulatory challenges in Alberta's renewable energy sector.

Footnotes

1. Harnessing the Sun: The Tilley Solar Project and Indigenous Leadership in Alberta's Renewable Energy Future

Medicine Hat News

In this article, local concerns surrounding a proposed wind farm project north of Oyen, Alberta, are detailed. The plan involves constructing over 80 turbines producing up to 466MW and has led to significant community dialogue regarding land use and potential environmental impacts. Despite the anticipated benefits of renewable energy, some local residents have voiced their apprehensions about land value, livestock well-being, and changes to the rural landscape. A regulatory hearing is set to address these concerns while also reviewing the project's potential impacts to Alberta's energy portfolio.

Footnotes

1. Community Concerns Rise Over Proposed Wind Farm Project Near Oyen, Alberta

Tariff Implications

FortisBC is closely monitoring the implications of U.S. trade tariffs on its electricity procurement strategies. As the province navigates through ongoing trade tensions, particularly surrounding the importation of power sources, the necessity for contingency plans is highlighted. Premier David Eby's government has recognized the dependence on U.S. electricity and is considering its impacts on pricing and supply stability in British Columbia. The article outlines the challenges posed by potential tariff increases and how they might translate into higher consumer costs.

Footnotes

1. Navigating Energy Pricing: The Impact of U.S. Trade Tariffs on FortisBC's Electricity Procurement Strategies

Red Deer Electric System

The City of Red Deer is exploring modernization of its electric utility structure to enhance efficiency. A public hearing is set for June 23rd wherein residents can voice their opinions regarding this transition towards a municipally controlled corporation model, which aims to adapt the utility to changing market conditions. The proposed changes highlight the need for effective governance that aligns with contemporary technological advancements while ensuring public engagement and financial feasibility in operational restructuring.

Footnotes

1. Red Deer Residents Invited to Voice Opinions on Electric Utility Modernization at June 23 Public Hearing

BC Power Dependence

This article examines British Columbia's increasing importation of electricity and the associated economic and environmental critiques. Barry Penner, a former environment minister, highlights the vulnerability of B.C.'s energy strategy, particularly amidst ongoing drought conditions affecting hydroelectric production. He argues that the province's dependence on energy imports could lead to significant downstream emissions without achieving local reduction targets, raising questions about the future sustainability of B.C.'s energy policies.

Footnotes

1. Electricity Imports: B.C.'s Environmental and Economic Dilemma in Energy Policy

BC Rejects Export Tariffs

The article discusses B.C. Premier David Eby's remarks rejecting Ontario's recent decision to impose electricity export tariffs. Instead, Eby emphasizes the need for strategic trade measures that prioritize B.C.'s economic interests without mirroring Ontario's approach. B.C. aims to maintain its position as a net electricity exporter while remaining sensitive to local costs and environmental impacts. Eby's leadership indicates a focus on nurturing beneficial trade relationships amidst ongoing challenges in U.S.-Canada trade relations.

Footnotes

1. B.C. Premier Eby Rejects Ontario's Electricity Export Tariffs, Prioritizes Strategic Trade and Truck Tolls

Alberta's Approach

Alberta's Energy Minister Brian Jean is advocating for a cooperative approach to managing trade tensions with the United States regarding energy tariffs. In contrast to Ontario's retaliatory actions, Alberta's strategy involves working with the U.S. to address concerns in a manner that safeguards long-term economic relationships. Jean's emphasis on collaboration and the potential for diversifying markets outside North America reflects Alberta's goal to remain a crucial player in energy exports while navigating the complexities of international trade.

Footnotes

1. Alberta's Energy Minister Advocates Cooperation to Resolve U.S. Tariff Conflict and Diversify Markets

Alberta vs Ontario's Approach

The article discusses Alberta's and Ontario's differing approaches regarding energy strategies amid U.S. trade tariffs, identifying a contrast in their respective governance on energy export tariffs. Ontario imposes a surcharge while Alberta emphasizes no such taxation on its resources. The differing strategies shed light on the pressures faced by Canadian provinces as they balance local economic interests against the backdrop of escalating U.S.-Canada trade conflicts.

Footnotes

1. Diverging Energy Strategies: Ontario vs. Alberta in the U.S. Trade War

New Markets for Alberta Crude

This article announces Alberta’s new strategy on collecting bitumen royalties in-kind, which is aimed at enhancing its leverage in global oil markets amidst trade conflicts with the U.S. This method allows the province to consolidate resources and aims to increase investments while addressing market uncertainties. The Alberta government’s approach reflects a forward-thinking strategy to navigate challenges in energy relationships while securing beneficial deals for its oil exports.

Footnotes

1. Alberta's Strategic Shift: Collecting Bitumen Royalties In-Kind to Enhance Global Oil Market Influence

Canadian Energy at the Core 

An in depth Maclean's article discusses the importance of Canadian energy exports in the context of trade relations with the U.S., asserting that energy continues to be a vital component of the Canada-U.S. trade landscape. As tensions rise due to trade tariffs, the article examines how Canada's advantage in energy exports can serve as leverage in negotiations. However, the political responsiveness of leaders highlights the need for careful strategy and consideration to navigate the intricate relationship between economic stability and trade dynamics.

Footnotes

1. Navigating Energy Exports: The Crucial Link in Canada-U.S. Trade Relations

Trade with Minnesota

Ontario's new 25% tax on electricity exports to the U.S. is anticipated to have minimal impact on Minnesota residents and utilities, as major providers like Xcel Energy and Great River Energy do not source power from Ontario. Minnesota Power relies primarily on Manitoba Hydro, so the tax is unlikely to significantly affect consumer bills despite concerns from Governor Tim Walz about trade tensions causing higher electricity costs. With less than 1% of Minnesota's electricity coming from Canada, potential price increases would likely be minimal. However, there are uncertainties regarding future trade dynamics if other provinces adopt similar measures, underscoring the interconnectedness of energy markets and the political influences on consumer costs.

Footnotes

1. Navigating Trade Tensions: The Impact of Ontario's New Electricity Export Tax on Minnesota's Energy Landscape