Overhead High Voltage Power Lines are Expensive

Do you ever wonder why overhead high voltage power lines are so expensive to build? This Marketwired report on the use of helicopters to build the controversial 500 kilovolt Heartland Transmission Project helps explain why.

Anyone who has chartered a helicopter for any reason is aware of the high hourly rates charged by the helicopter charter industry. No wonder the Heartland power line is costing tens of millions of dollars more to construct than initially projected by AltaLink and EPCOR. Alberta ratepayers foot 100% of the cost of new high voltage line construction in Alberta, but have no say on the actual costs, and were not even allowed to review whether or not the Heartland line is needed.

Residents, industry and businesses continue to ask why the Heartland power line is being built with towers far taller and wider than any other 500kV line in Alberta. AltaLink, EPCOR, the AUC (Alberta Utilities Commission), AESO (Alberta Electric System Operator) and Alberta Energy are all aware that this line is a significant overbuild because the line will be energized to only 15% of its total capacity. Why then build such a massive line in the first place? The towers are also being built closer together than indicated in AltaLink’s and EPCOR’s application to the AUC. All of these factors add needlessly to the cost of the overhead Heartland line.

The Heartland line is being constructed by Quebec-based SNC-Lavalin (AltaLink’s parent company) which has been plagued with corruption scandals and other questionable activities in Canada and around the world including: Libya, Algeria, Tunisia, Syria, Afghanistan, Bangladesh, India, Cambodia and Mexico. See this link for more information on scandal-plagued SNC-Lavalin.

Situation Worsens for AltaLink’s Parent Company, SNC-Lavalin

As the Canadian and international SNC-Lavalin corruption probes continue, AltaLink’s parent company’s business takes a hit. The Shriners have decided to retain control of the bidding process and selection of sub-contractors instead of making SNC the general contractor for their new hospital in Montreal to be built next to the McGill University Health Centre (MUHC), presently under construction (Canadian Press). SNC is currently under investigation for allegedly making illegal payments to secure the contract to build the MUHC, which is facing further construction delays. Two credit-rating agencies have warned there are mounting concerns that construction of the MUHC is significantly behind schedule (Montreal Gazette).

Hydro Quebec has yanked a contract from scandal-plagued SNC-Lavalin, midway through its 5-year term, to run an energy efficiency program for the utility. Hydro Quebec will manage the program in-house (CJAD).

First Quantum Minerals Ltd. has recently suspended engineering contracts with SNC-Lavalin at Cobre Panama, as part of cost-cutting measures being implemented following the takeover of the Panama copper mining project from Inmet Mining Corp. (Globe and Mail). SNC has already de-booked its work related to the project, estimated at a value of $120 million.

Because SNC-Lavalin has been accused of bid-rigging, bribery and fraud at the Charbonneau Commission construction industry corruption investigation in Quebec, it will face close scrutiny by the Autorite des marches financiers (AMF) (Montreal Gazette). Companies bidding on the $3.7 billion contract to overhaul Montreal’s Turcot Interchange need to live up to the new integrity standards of the AMF. In light of multiple Canadian and international corruption allegations against SNC-Lavalin, eyes are also closely watching SNC’s participation in the bidding process for Waterloo’s $600 million contract to finance, build and operate its new rapid rail transit project (The Record).

The Charbonneau Commission inquiry continues to hear damning testimony about SNC-Lavalin and other construction companies in Quebec. Inside information about upcoming engineering contracts was being passed along exclusively to those construction companies that donated funds to the Montreal municipal party – Union Montreal. The Canadian Press recently reported, “Yves Cadotte, an engineering executive with SNC-Lavalin, had said during his own time on the stand that he paid a fake bill from (Andre) Morrow (spouse of former federal Liberal cabinet minister Liza Frulla) worth $75,000 as part of $200,000 destined for Union Montreal.”

Quebec Premier Pauline Marois has denied any knowledge of disguised illegal donations passed onto her Parti Quebecois by construction companies in the last 12 years (CJAD). On the other hand, SNC-Lavalin and other companies have testified at the Charbonneau Commission inquiry that they handed her party more than $700,000 from 1998 to 2010. The Quebec Liberals are also accused of receiving nearly $900,000.

CBC News has investigated political donations by SNC-Lavalin, and recently reported that 12 SNC executives and 2 family members made $15,000 in political donations to a Conservative candidate during the 2011 federal election. The Canada Elections Act has prohibited corporate donations since 2006. Yves Cadotte has explained to the Charbonneau corruption inquiry how SNC had its executives make political contributions and then compensated them through their bonuses.

A writer to the Northumberland Today editor recently wondered about SNC-Lavalin’s involvement with the $1.28 billion project to rid Port Hope of its radioactive waste. He speculated about possible collusion in this project, in light of the construction industry’s alleged collusion scheme to drive up construction costs in Quebec by as much as 30%.

About 40 temporary foreign workers from Costa Rica have finally been paid the money they were owed by SNC-Lavalin and others for the work they did building the Canada Line rapid transit link between Vancouver and Richmond, British Columbia. In 2008, a B.C. Human Rights Tribunal had ruled they were discriminated against by SNC and other companies in wages, accommodation, meals and expenses when compared to their European work colleagues (Canadian Press).

Internationally, SNC’s troubles also continue. As part of 7 Bangladeshi officials standing accused of conspiracy in the Padma Bridge Project attempted bribery case, the Deputy Director of the Bangladesh Anti-Corruption Commission recently argued that a Bangladeshi official “smuggled out important information to the Canadian firm SNC-Lavalin despite holding an important government office” (bdnews24).

It has recently been learned that SNC-Lavalin  maintained ties to Watan Risk Management (an Afghan security firm) into 2011, long after the U.S. banned contracts with Watan to prevent aid money from winding up in the hands of corrupt officials and the Taliban (The Star).

As part of SNC-Lavalin’s attempts to stem the tide of negative media coverage surrounding various corruption and ethics probes during the past 2 years, it continues to make staff and other personnel changes. SNC recently hired a new chief financial officer to replace Gilles Laramee who refused to sign off on suspect payments ordered by former SNC Vice President Riadh Ben Aissa, currently detained by Swiss authorities, but which were signed off by former SNC CEO Pierre Duhaime (Globe and Mail). And at the top, SNC Chairman Gwyn Morgan and 3 other directors will depart the SNC Board and be replaced at the annual shareholders’ meeting on May 2, 2013 (Canadian Press). Ian Bourne, currently the Vice-Chairman of SNC, will become the new Chairman. SNC hired an executive search firm to recruit 3 new directors – Jacques Bougie, Lise Lachapelle, Alain Rheaume – all of whom speak French. Stephen Jarislowsky, SNC’s  largest shareholder, has disagreed with the nominations, saying “I do not believe that these people understand the heart of SNC, which is project management…When I see the names and the qualifications, I do not believe that is what’s required.” He said the company chose only Quebec-based candidates and failed to diversify the board internationally (Financial Post).

While these and many other personnel changes are being made, SNC took measures last year to keep managers who were considered “high potential” or “key project” employees from bailing out in the midst of the company’s ethics scandal. As the Financial Post wrote, “SNC dished out more than $15 million to a select group of employees for doing nothing more than not quitting.” The move has been criticized as throwing performance pay out the window in favour of simply trying to provide guarantees to keep employees from leaving the scandal-plagued company.

See this link for more on the corruption scandal at SNC-Lavalin which, together with AltaLink (wholly-owned subsidiary of SNC) and EPCOR, is currently building unnecessary high voltage power lines in Alberta.

Updated Alberta Electricity Transmission Timeline

Thanks to the creator of this timeline for an updated version which can be read at this link.

The Voice of the People

Since sending out the communication regarding the decision on RETA’s application for judicial review, we’ve been inundated with responses.  People feel that the government is in the transmission industry’s pocket and that their complete lack of regard for nature and the environment is criminal.  With the Heartland line, Western Alberta Transmission Line and Eastern Alberta Transmission Line all fast-tracked to ensure a healthy supply of electricity to the US, subsidized by Albertans, it is no wonder that people are getting fed up with this corrupt PC government.  To give you some idea of what people are saying we’re posting a handful of their comments here (anonymously):

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Sure wish there was a way to rid ourselves of these people before they finish building this mess. Oh well will never vote for any of them again.

- P.H.

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A forgone conclusion.  Anyone with a brain who sees how fast these things have gone up can only conclude that these things have been stockpiled and waiting for years.  Couldn’t have manufactured and built this volume of metal structure so fast.

 As a Canadian by choice, it leaves a very bad taste in my mouth to see such blatant deep seated corruption in the Alberta PC government.  The worst thing is that people see it and are too apathetic to even make this government accountable.  We seem to be so far left of democracy with this government it is frightening.

 Thank you for standing up and doing what you are doing.

- L.W.

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We knew from the first meeting that everything was in place and that no matter the protests and dialogue and logic, the transmission lines were going to go through and the US will end up getting our electricity and we will pay. 

 We truly appreciate all of your efforts and more and more I believe that we are not in a true democracy!  The big bucks run the country! 

 So, thank you for all of your hard work.  We appreciate you!

- M.C.

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My heart goes out to you people. I live in Wedgewood. It could have been us. But this monstrosity shouldn’t be built anywhere!! I thought that your arguments were good. I really thought you stood a chance. 

- J. M.

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Sad and pathetic news for sure. We live immediately adjoining Hulbert Crescent and behind the strip mall on the Wye Road.  Last year they demolished all the homes and buildings in Hulbert, save for one older garage type, animal shelter building. I was relieved that this shelter remained, since it was not in the way of the construction area and served as a bit of a sound barrier from the vehicle noise on the Wye Road and soon to be Anthony Henday overpass.

I could see the roof top of the building, from my kitchen window. For as long as we have lived here, eight years, every Spring the geese would gather, sun bathe and rest on the roof. Geese, with their innate wisdom, return from the south to the same home base, year after year. This was home base, in addition to the field across from there (the Greenbelt field that is designated for the mega power towers) the geese spent the entire spring and summer, nesting and grazing. Every October, hundreds and hundreds of geese, gathered there, to prepare for their long journey to the south, for winter. A vision to behold; picturesque and beautiful. Nature at it’s finest.

Mark your calender. Yesterday, March 25, sadly, that building was demolished, a mere few days before the geese are expected.  It is heart wrenching.  Can the geese call this home any longer?  Will they nest and graze while being zapped by electricity, rather than the sun’s rays?  So much for Big Business respecting the preservation of the environment and propagation of animal life.  Stupid, greedy people!

-  J.S.

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Thanks for the update. It is indeed a sad time, not an “if”  I am upset by the line, but that our efforts have been futile and have fallen on deaf ears.   I’ve had the field behind me raped of all earth for the building of infrastructure (lines and Henday I know not which) with the ensuing upheaval of wildlife lands. It is sad and stupid, and I can’t make sense of it. Earth movers show up without warning from our county officials etc.  I will remain in my home until this is all completed, as to try and relocate now would be financial suicide.

- S.H.

Heartland Power Line – Previous Alberta Minister’s Assurances Mean Nothing

Several of our members have contacted us asking how it is possible for the court to recently dismiss RETA’s application for Judicial Review of the Infrastructure Minister’s authority to give his consent to construction of the Heartland line in the Edmonton and Sherwood Park Greenbelts. They point out that not only do the 1974 Alberta Regulations make it clear that the Greenbelts were set aside for protection of agriculture and the environment, but then Environment Minister – the Honourable William (Bill) Yurko – even gave his personal assurances of this protection to landowners at a public meeting in the Colchester Community.

The landowners who have contacted us wonder why the current PC Alberta Government did not honour a previous PC Minister’s assurances, and why the court did not recognize these personal assurances by Minister Yurko (who passed away in 2010).

Alberta’s Power Plants Burn More Coal Than the Rest of Canada Combined

Not only are Alberta’s tar sands operations receiving negative attention world-wide, but now a coalition of health and environmental groups has just released a study that shows, “The province (Alberta) burns more coal than the rest of Canada combined, and greenhouse gas emissions from its six coal-fired plants are only slightly less than all of the emissions from oilsands operations combined.” (Edmonton Journal). The study notes that other provinces are quickly transitioning from coal-fired power generation to cleaner, more efficient and more environmentally-friendly generation, while at the same time Alberta continues to focus on burning coal and in fact on building new coal-fired generation.

Alberta has long been criticized for its callous attitude towards the environment and toward exacerbating climate change through massive emissions of greenhouse gases. This latest study looks not only at the negative environmental impacts of coal-fired power generation, but also at the negative health impacts on humans. Referring to the study, the Journal article continues, “Pollution from coal-fired power plants generates $300 million in medical costs and contributes to 100 premature deaths in Alberta each year…emissions from coal-fired electricity plants cause asthma sufferers to miss 4,800 days of work and school in Alberta and prompts 700 emergency-room visits from patients seeking treatment for respiratory and cardiovascular ailments each year.

The study indicates that in 2011, coal-fired power plants emitted 45% of Alberta’s entire output of mercury, 33% of its sulphur dioxide, 10% of its nitrogen oxides and 6% of its fine particulate matter. These pollutants exacerbate symptoms of asthma, negatively affect neurological and lung development, and also result in increased cardiac disease.

How much longer are the Alberta government and industry willing to ignore the very real negative impacts of increased greenhouse gas emissions and many other toxic pollutants when there are cleaner, safer, healthier and more environmentally-friendly alternatives?  The creation of jobs and mega-profits for specific industries continues to take precedence over the health of our population and our environment in Alberta. When will Alberta join the rest of the country in recognizing that a healthy population and a healthy environment are necessary precursors of a healthy and sustainable economy?

See this link for more information on Alberta’s ill-conceived focus on coal-fired electricity generation.

PC MLAs to Look at Electricity Prices

The Redford government has just appointed a group of rookie backbencher members of the PC Caucus to a committee that is charged with trying to stabilize electricity prices in Alberta and bolster price protection for consumers (Edmonton Journal). Only one of the 6 committee members has more than one year’s experience on the job. Committee members are supposed to figure out how to implement the majority of the recommendations of a 390-page report – Power for the People – prepared by an expert Retail Market Review Committee (RMRC).

Rick Cowburn, former EPCOR VP and current independent utility consultant, said the government should have asked implementing agencies like the Alberta Utilities Commission and Alberta Electric System Operator, rather than MLAs, to come up with a plan to implement recommendations of the RMRC. Wildrose Utilities Critic Joe Anglin said, “This is a serious issue – this is about consumer bills. We have outrageous expenses, the cost of our bill is going up, and there is nothing in the short term or long term that will reduce them. Now we have this committee…the inexperience and the lack of knowledge there – I don’t know who is going to guide them.”

It is worrisome to consider what a group of neophyte MLAs will do with the recommendations of the RMRC. What is the background of committee members and how will that influence the decisions they make? Cathy Olesen, the new PC MLA for Sherwood Park, certainly didn’t put up a big fight against the unnecessary and overpriced Heartland power line going right through her constituency. And Maureen Kubinec, the new PC MLA for Barrhead-Morinville-Westlock, argued during the last provincial election campaign that the Heartland power line was necessary, even though all of the experts had shown that it is not needed.

So…once again, it seems that the Alberta Government will scurry around a little bit to make it appear they sincerely want to fix Alberta’s electricity problems, when they really just want to leave things the way they are because the power industry (generation & transmission) is making so much money and is happy with the way things are.

Albertans pay some of the highest electricity prices in the country – some blame it on our deregulated electricity generation, others suggest our overbuilt transmission system is at fault, and some think the power industry (especially transmission) is too cozy with the Alberta PC government (see Making Money by Making Friends).