Heartland Power Line Battle Not Over

The Sherwood Park News reports that Strathcona County is not giving up the fight against an above-ground Heartland power line, even though the Alberta Utilities Commission (AUC) recently dismissed all appeals against its initial decision to let AltaLink, SNC-Lavalin and EPCOR build the largest 500 kilovolt line ever in Alberta close to thousands of residents, numerous schools and daycare centres, and many important environmental areas.

The County is keeping an eye on an Alberta Court of Appeal case by Sturgeon Councillor Karen Shaw that, among other things, is arguing the need for the Heartland line must be proven. Mayor Linda Osinchuk said, “We are waiting to see how that’s going to develop,” suggesting the County could apply for intervener status.

As chair of the Alberta Industrial Heartland Association, Mayor Osinchuk said, “We in the Heartland don’t need this amount of energy.” This is based on the facts that the 8 to 10 tar sands upgraders predicted by the Alberta government and the Alberta Electric System Operator (AESO) are not going to be built, and even if they were, they would co-generate their own electricity and would not require dirty coal-fired electricity from Wabamun.

Mayor Osinchuk also expressed concerns about an above ground high voltage line running parallel for many kilometres to buried pipelines in the Sherwood Park Greenbelt so close to thousands of residents. Many studies and past accidents have shown that overhead high voltage power lines and buried pipelines placed as close together as will be the case with the Heartland line is a ticking time bomb. Lightning strikes can travel along overhead lines, down the towers, arc across to buried pipelines, and ignite the highly flammable pipeline products.

The Mayor is also concerned about Colchester Elementary School closing down because of the Heartland line being built above ground within 140m of the school. Documented health risks associated with overhead high voltage power line electromagnetic fields and the toxic corona effect are of great concern to the parents of the 183 students attending the school, and they have said they will not let their children attend the school with a power line that close. The school will therefore close down.

RETA has also indicated that, in spite of the recent AUC dismissal of appeals, the battle is not over. RETA is exploring legal and other options. View and listen to RETA’s response to the AUC decision at: http://www.albertaprimetime.com/Stories.aspx?pd=3745.

AUC Heartland Decision Not in Best Public Interest

On May 14, the Alberta Utilities Commission (AUC) announced that it dismissed all of the appeals of its decision last November to let AltaLink, EPCOR and SNC-Lavalin build an above-ground Heartland power line near homes, schools, daycares and environmentally sensitive areas. Following is RETA’s initial response, as issued in a news release today:

“(Sherwood Park) May 15, 2012. Responsible Electricity Transmission for Albertans (RETA) is extremely disappointed in the Alberta Utilities Commission’s (AUC) May 14 announcement to dismiss appeals of its decision last year to permit an above-ground high voltage power line to be built in the Edmonton and Sherwood Park Greenbelts (TUCs).

Late last year, RETA challenged the November 1, 2011 decision of the AUC to let AltaLink and EPCOR build the Heartland power line next to 5,200 homes, several schools and daycares, and many environmentally sensitive areas.

First, RETA challenged a chart, accepted by the AUC, that was presented by AltaLink which significantly underestimated electromagnetic field (EMF) levels that nearby residents would be exposed to. Prolonged exposure to overhead high voltage line EMFs have been strongly correlated to increased risks of many diseases including leukemia, other cancers, Alzheimer’s disease, miscarriage, birth defects and suicide.

Second, RETA argued that the AUC quickly and arbitrarily dismissed the underground option as “high risk”. However, undergrounding is becoming increasingly common throughout the world, and even the Heartland applicants agreed that undergrounding is feasible.

Third, RETA indicated that the AUC did not properly consider the fact that Colchester Elementary School will close if the Heartland line is built above ground next to the school.

In summary, RETA’s challenge was based on the argument that the AUC’s 2011 decision was not in the best ‘public interest’.

‘We are very disappointed and frustrated with the AUC process that was supposed to seriously consider the testimony presented by the public. The data and expert testimony presented by us, several local governments, industrial power consumer groups, landowner groups and individual homeowners was either dismissed or ignored by the AUC,’ said John Kristensen, VP Technical, RETA.

As a result of the recent AUC announcement, RETA is exploring legal options to stop the Heartland line from getting built, or at minimum to get it buried when it runs close to people.”

Strathcona County also expressed its strong disappointment in the AUC dismissing its appeal as well (see news release). Mayor Linda Osinchuk said, “I want to assure our residents that we did everything in our power to represent the community’s interests, and to bring the environmental and health considerations to the forefront. We had tremendous support in these efforts from community members, who took a strong stand and got involved in a long and complex process. Unfortunately, the final decision was not ours, but the AUC’s.”

To view and listen to RETA’s response to this latest AUC decision, see Alberta Primetime at this link: http://www.albertaprimetime.com/Stories.aspx?pd=3745. Also see the following media coverage: iNews 880 (1), Global News, iNews 880 (2), Edmonton Journal, TransmissionHub, Alberta Primetime, Sherwood Park News.

Third Class Action Against AltaLink’s Parent Company

There appears to be no end to the number of class actions filed against Quebec-based SNC-Lavalin during the past few months in relation to the extensive corruption probe into the company which, among many other things, builds high voltage power lines in Alberta and around the world.

The latest securities class action, filed on behalf of The Trustees of the Drywall Acoustic Lathing and Insulation Local 675 Pension Fund, is against SNC-Lavalin Group Inc. and “certain of its current and former officers and directors, including Pierre Duhaime, Gilles Laramee, Riadh Ben Aissa, Stephane Roy, Gwyn Morgan, Ian Bourne and Michael Novak,” (Sacramento Bee).

The Statement of Claim alleges that SNC-Lavalin and the other defendants made misrepresentations between November 6, 2009 and February 27, 2012 in relation to, among other things, the adequacy of SNC’s internal controls, as well as SNC’s net income for the 2010 fiscal year, and the compliance of certain of the individual defendants with the company’s code of ethics.

The claim further alleges that the defendants’ misrepresentations caused the price of SNC-Lavalin’s securities to become inflated, and that all persons who acquired securities of SNC-Lavalin suffered damage when the truth was revealed to the investing public.

For more information on SNC-Lavalin and AltaLink, see this link.

SNC-Lavalin Sued Again by Investors

SNC-Lavalin which is building many high voltage power lines in Alberta together with its AltaLink subsidiary, including the controversial Heartland Transmission Project and Western Alberta Transmission Line, is being sued again by investors.

This time, a class-action suit has been launched on behalf of investors outside Quebec who have seen their SNC-Lavalin share values plummet due to the extensive corruption probe into the company. The  claim is seeking $1.5 billion, “alleging the Montreal-based company violated securities law by misrepresenting that it had adequate controls and procedures to ensure accurate disclosure and financial reporting,” (Montreal Gazette). “When a company repeatedly highlights its strong governance practices to the investing public, revelations of serious misconduct cause damage to the company’s reputation and, in turn, substantial harm to its investors, “ said the claimants’ lawyer. The Gazette goes on to write, “The claim arises from alleged payments made by SNC-Lavalin to members, associates, and agents of the Gadhafi regime to secure contracts for infrastructure projects in Libya.”

Although an earlier internal investigation by SNC suggested the unlawful payments made to commercial agents were not related to its business in Libya, the plaintiff’s lawyer said, “In order for shareholders to get to the bottom of this, there has to be a meaningful investigation that is not conducted by those that are potentially responsible,” (Financial Post).

Fred Lazar, Associate Professor of Economics at the Schulich School of Business, said, “How can directors not ask the obvious questions and still claim that the Board is following good corporate governance practices? Unfortunately, some directors choose not to ask so that they have ‘credible deniability’. Don’t ask and the company doesn’t tell, and then, when a scandal breaks, you have your defence: you didn’t know,” (PR Newswire).

This latest suit closely follows a $250-million suit filed in March on behalf of investors in Quebec against SNC and some of its former executive. In summary, that action alleges SNC-Lavalin made statements in relation to its code of conduct, legal compliance and internal controls that were “materially false and misleading”, and that some senior executives “were engaged in unlawful activities in Libya” contrary to the company’s statements.

Another lawsuit was recently filed in Tunisia by a subcontractor who alleges he refused to pay SNC-Lavalin a bribe demanded by the company in exchange for work on a power station.

Meanwhile, the World Bank may soon cancel its funding for the Padma Bridge Project in Bangladesh because the Bangladeshi government has not adequately responded to the World Bank’s report on corruption allegations involving the project. The Daily Star writes, “The report contained findings of the Canadian government’s probe into the corruption allegations over selection of Canadian company SNC-Lavalin as the consulting firm to supervise the main bridge’s work.”

These and many other questionable business dealings by SNC-Lavalin around the world have caused its share values to drop significantly – about 40% (rabble.ca). “Nearly $3.5 billion has been wiped from the company’s value since SNC’s shares peaked at $59.97. They lost 28 cents to $36.77 in afternnoon trading Wednesday (May 9) on the Toronto Stock Exchange,” (Montreal Gazette).

And, according to SNC-Lavalin’s interim CEO Ian Bourne, “The reality of these police investigations mean that they’re going to find some other stuff,” (Financial Post). In other words, we can expect more questionable activities by SNC-Lavalin to be uncovered.

In addition to all of its work with its AltaLink subsidiary on high voltage power lines in Alberta, SNC-Lavalin has many other contracts in Alberta including: $300 million NAIT LRT project in Edmonton, $5 billion North West Upgrading project in the Industrial Heartland, Syncrude’s upgrader expansion, CNRL’s froth treatment plant, MacKay Operating Corp’s SAGD plant west of Fort McMurray, and Grizzly Oil Sands Algar SAGD plant (Edmonton Journal).

AltaLink Keeps Residents in the Dark Again

AltaLink has a habit of providing only that information at Alberta Utilities Commission (AUC) hearings that favour its recommendations. The company consistently withholds information that helps residents and landowners affected by their infrastructure understand the various options available, including the pros and cons of each.

Another recent example has been brought to RETA’s attention by a landowner at the Summer Village of Kapasiwin, which is a lakefront community on Lake Wabamun 65km west of Edmonton. The AUC held a hearing last month on an application by AltaLink to re-string high voltage transmission lines on towers which stand along the lakefront in the Village of Wabamun and in several summer villages on the lake, including Kapasiwin.

The Village of Wabamun has been trying to build its tourism industry for several years now, as Edmonton and area residents look for places close to home for a variety of recreational opportunities. The neighbouring Wabamun Lake Provincial Park was refurbished several years ago as part of providing enhanced camping, picnicking and related recreational opportunities in the area.

Unfortunately, enhancing viewscapes and the local tourism industry is detrimentally affected by the continued placement of high voltage power lines along the lakefront. Village of Wabamun residents thought that the transmission lines would be removed when the TransAlta coal-fired power plant was decommissioned in 2010. Unfortunately, such was not the case, as AltaLink had purchased the transmission lines some time ago for other purposes.

In any event, interveners at the recent AUC hearing submitted that the lines should be re-routed away from the lakefront for long-term economic, health, environmental and other reasons. The Village of Wabamun had made it clear during earlier public consultations that it was seeking a re-routing of the lines away from the lakefront to a corridor along Highway 16.

As AltaLink often does whenever a community, village, town or city requests that another route be considered for one of its high voltage transmission lines, it said such could only be done if the Village of Wabamun pays any additional costs. One would think that a company that trumpets its community relations to the extent that AltaLink does (on the radio and in newspaper ads), would consider all the costs associated with its projects, including negative property value, tourism, health, environmental and other economic impacts. Unfortunately, AltaLink has a history of not caring about these other costs.

At the AUC hearing last month, AltaLink suggested that the cost of re-routing would be about $18 million while the cost of re-stringing on existing towers along the lakefront would be only $4 million. Apparently, a discussion did take place at the hearing about the existing towers being at the end of their economic life and that they would require replacement or major maintenance. No surprise……AltaLink said they did not know how much it would cost to replace or refurbish the old existing towers. Of course this means it is not known how much more than AltaLink’s estimate of $4 million it would actually cost to “re-string” along the lakefront. Is it possible that it might actually cost as much to replace the existing towers and string new lines on them as to re-route the line away from the lakefront?

In summary, AltaLink attended the hearing last month with very little information to adequately compare the costs of the two options. One would think that a proper evaluation of the re-routing option in relation to a truthful evaluation of the “re-stringing” option is a necessary prerequisite to the AUC being able to determine which option would be in the best “public interest”.

Let’s hope the AUC does indeed take the public interest into account as it develops its decision on this application. It is obvious that the re-stringing option is not in the best interests of the Village of Wabamun, adjacent summer villages, development of local tourism opportunities, or protection of the lakefront environment.

FishHawk Ranch Residents Misled About Green Space

Here’s a story similar to the Heartland power line story in Edmonton and Sherwood Park.

When residents in the FishHawk Ranch community near Lithia, Florida bought their lots and homes, they were told the vacant land next to their neighbourhood was a conservation area. In fact, some of the community’s residents had paid a premium for lots on the conservation area. They were told it was a green space and there is now a community trail on it. There was nothing on any of the residents’ closing papers or documents that indicates the land would be used for power lines (Bloomingdale-Riverview Patch).

Recently, FishHawk Ranch residents were surprised to learn that Tampa Electric Co. (TECO)  is planning to build an overhead high voltage power line with 90 to 120-foot tall towers in the conservation area. They are concerned about the health hazards of electromagnetic fields that will emanate from the lines, the unsightly lines and towers, and property devaluation.

Residents have launched a petition and door-to-door awareness campaign, and want to meet with their State Representative.

(Sound similar to the Sherwood Park and Edmonton Greenbelt story where the overhead 500kV Heartland line is now being built?)

Heartland Power Line Update

EPCOR CEO Don Lowry said today the Heartland Transmission Project is on target, with a new estimated cost for EPCOR of $430 million. The original estimate of $400 million was apparently based on early work by AltaLink, according to Lowry (Edmonton Journal).

Lowry said, “We have about 75% of the funds committed, with brush clearing underway and the first towers going up. All the steel for the project has been ordered.”

Let’s see if we have this correct. The Heartland power line is already under construction before decisions have been made on several requests for Review and Variance of the Alberta Utilities Commission (AUC) November 2011 decision on the line. And, construction has already started before the Alberta Court of Appeal has a chance to hear the appeal of the AUC decision last year by the Shaw family.

Construction of the line has barely started and already it is going to cost EPCOR $30 million more than estimated only a few short months ago.

Summary:

1)  EPCOR must be aware of the AUC’s not-yet announced decisions on several Review and Variance requests.

2)  EPCOR must be aware of how the Alberta Court of Appeal will rule on the Shaw appeal, which has not even been heard.

3)  EPCOR (and/or AltaLink) have been pretty sloppy estimating the cost to build the Heartland power line.