The Minister quotes from Option 1 where Option XIII is submitted to the EUB.
The Minister states Alberta Citizens to pay for utility lines, not 1 billion but 4 billion dollars!

The Minister states Lines built especially for export will be paid for by exporters.
This means the shared lines like the Edmonton-Calgary line is to be paid for by you and I and the exportes ride free!

Klein and company accept the misdirection!

Posts are being cut: copies available at cyberclark@shaw.ca

ALBERTA ENERGY
Office of the Minister Responsible for Alberta Energy and Utilities Board
June 22,2004
07776-04 ELEC-PrC

John Clark
14815 - 123 Avenue Edmonton AB
T5L2Y7

Dear Mr.Clark:

The Honourable Ralph Klein, Premier, has forwarded a copy of your May 21,2004, e-mail and I am also in receipt of your subsequent e-mails of May 28, June 3, and June 6 regarding transmission. I trust the following information will be helpful in addressing your questions and concerns.

I share your view that new transmission is needed to support the next wave of new generation development and as you noted, there is a critical interdependence between generation and Transmission. Adequate transmission must be in place to support development of new generation. In Alberta, resources for electricity generation are located throughout the province: hydro on the Peace River,biomass in northern Alberta coal at existing mines, wind in southern Alberta, and cogeneration at industrial sites, such as the oil sands. Building transmission to areas
where the generation fuel resources are located, is the most practical and cost-efficient solution. Wind generates power where the wind is. Not building adequate transmission capacity to areas
where fuel resources are, risks stranding potential resource development and cost effective generation.

In Alberta, transmission investment has lagged overall economic growth and growth in generation investment. Alberta's Transmission system has not been upgraded for over 18 years even though provincial load has grown by 4,000 megawatts (MW) and 3,000 MW of new generation has been added since 1998. The Government of Alberta, therefore, prepared a public policy to guide how transmission should be upgraded and maintained to ensure that consumers receive reliable and efficient electric service and, to support future growth and new investment in generation. The approved transmission policy can be found on the government Web site by
clicking here.

It is important to note that Alberta's transmission system is regulated and that Albertans remain responsible for the cost of the province's transmission infrastructure through regulated charges on consumer bills. Transmission infrastructure is only built with the approval of the Alberta Energy and Utilities Board (EUB) and only when it is in the public interest.
As you noted, major reinforcements are required to the Alberta transmission system over the next several years. New transmission is needed and the Independent System Operator (ISO) has, therefore applied to the EUB for review and approval of a development plan to reinforce the Edmonton-Calgary transmission corridor. The particulars of this transmission development plan can be found on the ISO Web site at http://www.aeso.ca/

You asked about the potential impact of transmission upgrades on a customer's bill. To put things in perspective, transmission costs typically comprise less than 10 per cent (about $60/year) of a residential customer's electricity bill. The necessary transmission system upgrades have been estimated at about one billion dollars over the next decade. This cost would be recovered in customer bills, once the project has been approved
and constructed. An increase of about $2 per month is estimated for a typicd residential customer by 2012.

Exporters will continue to pay an EUB approved export tariff for the use of the transmission system. This is not a change. Any transmission-infrastrucnre built specifically for elecricity
export will be paid for by users, which are the exporters. Thank you again for taking the time to write and share your views on this important issue.

Yours truly,(Signature) Murray Smith, MLA

copy: Honourable Ralph Klein Premier
Brent Rathgeber, MLA Edmonton-Calder Constituency
404 Legislature Building, Edmonton, Alberta, Canada T5K 286
Telephone 780/427-3740,Fax780/422-0195
http://www.energy.gov.ab.ca/