Challenges and Opportunities in
the Power Industry in Alberta
Reliable Power
Reliable Markets
CERI Conference
October 22 & 23, 2007
Reliable People
Warren Frost, P.Eng.
Vice President,
Operations and Reliability
Outline
• Quick Facts on Alberta’s electric
industry
• The Role of the AESO
• Challenges in Powering Alberta
• Planning and Building
Transmission for Tomorrow
• Do More with Existing
Transmission
• Ensuring System Reliability
Quick Facts - Alberta’s Electric
Industry
• 9,661 MW peak & 80% LF
• 11,849 MW total generation
5,893 MW
4,412 MW
(Wind)
497 MW
(Other renewables)
BC
178 MW
869 MW
•
Over 280 generating units
•
~ 200 market participants and up
to 300 MW of price responsive
load
•
> 21,000 km of transmission
•
Interties BC (up to 780 MW) &
Sask. (up to 150 MW)
Alta
Sask
Alberta Electric System Operator
(AESO)
• Established in 2003 through the Electric
Utilities Act to integrate the Power Pool
of Alberta and the Transmission
Administrator
• Non-profit agency independent of
electricity marketplace participants
• Governed by an independent board
appointed by the Minister of Energy
• Regulated by the Alberta Energy and
Utilities Board
 Transmission Tariff
 Transmission Development and Need
Identification Documents
• The costs of operating the competitive
market are recovered through the Pool
Trading Charge and the Transmission
Tariff
Role of the AESO
• Independent System Operator for
the Alberta Interconnected Electric
System
 Markets: develop and operate
Alberta’s real-time wholesale
energy market to facilitate fair,
efficient and open competition
 Transmission System
Development: plan and develop
Alberta’s transmission system to
ensure continued reliability and
facilitate the competitive market and
investment in new supply
 Transmission System Access:
provide system access for both
generation and load customers
 System Operations: direct the
reliable operation of Alberta’s power
grid
Challenges in Powering Alberta
• Alberta is leading North America
in load growth
 Growth in demand is equal to
adding two cities the size of Red
Deer each year - about 3% per
year
 Adequate supply in the near term
but need 3,800 MW by 2016
• Over the last 20 years, power
demand in Alberta has doubled
but no major upgrades to the
transmission backbone!
 Need transmission to interconnect
load and generation for adequate
supply and for reliability
Challenges to Integrating Wind
• Supply-demand balancing is
complicated by wind power – wind
can increase or decrease rapidly and
patterns can be counter to load
• Limits to how much wind a system
can accommodate – wind needs
Supply
Demand
conventional generation as backup
• Transmission upgrades – need
upgrades in southern part of the province
• Worked with industry to agree on
framework and now implementing:

Wind forecasting

Ramping resources

Wind power management

Operational rules and tools
Wind power and
load do not
correlate well
Transmission Planning – A Long
Term View
• Need a flexible, reliable and open
transmission system wherever suppliers and
consumers are located
• Transmission must keep pace with Alberta’s
resource based economy
• Developing new transmission can be
challenging:
Gas
Gas
 Need to consider a wide range of generation
scenarios in a competitive market
 Take a long term view 10 and 20 year plans
 Some generation may be built in 18-24
months but transmission may take 5-8 years
 Need to consult in a comprehensive and
open manner on access issues
 Transmission is critical infrastructure and
excellent value
Coal
•Gas
Gas
Hydro
Coal
Wind
- Facilitates competitive generation market
- $500 million N-S 500 kV line results in about an
70¢/month increase in a "typical" residential
consumer's bill
Build Transmission
• 10-year Transmission System Plan includes
$1.2 billion approved with major upgrades
underway and $5 billion over the next 10 year
period
Dover
• Major transmission reinforcements in the
planning/development stages




Marguerite
Lake
Louise
Creek
Deerland
Whitefish
Josephburg
Rossdale
Clover
Bar
Wabamun
Sagitawah
Sundance
Bickerdike
Keephills
Devon
Genesee
Ellerslie
Brazeau
Battle
River
Red Deer
Metiskow
Cordel
Benalto
Anderson
Sheerness
Beddington
Langdon
h
itis
Jenner
Sarcee
E. Calgary
Janet
Empress
Milo
lum
Co
West
Brooks
bia
City of Edmonton reinforcement
Southwest and Northwest system
reinforcements
Hart Lake
Mitsue
rta
be
–
–
McMillan
Little
Smoky
Al
• Plans being implemented
Brintnel
Br


Edmonton to Calgary 500-kV reinforcement
(refiling)
Southeast region for reliability, interconnection
of wind generation and restoration of the intertie with Saskatchewan
Fort McMurray area meet load growth and to
service oilsands
Heartland region for planned bitumen
upgraders
Second Edmonton – Calgary 500 kV
Additional Interties and merchant transmission
lines
Wesley
Creek
Peigan
N.
Lethbridge
Alberta
Montana
Alberta
an
Saskatchew

Do More with Existing Transmission
• Minor Capital Additions
 Address equipment issues risers,
substation equipment
• Improve BC Tie Performance
 Lightning arrestors, advancing
maintenance
• Investigate supply and demand
options
 Southern Area Generation TMR or
demand side options
• Find innovative ways to connect
generation
 Special protection systems/remedial
action schemes to connect generators
Do More with Existing Transmission
• Dynamic thermal line ratings
 To increase use of existing
transmission
 Currently piloting dynamic line
monitoring system in SW region
• Real time voltage stability
analysis
 Tool to allow operators to
assess voltage stability under all
operating conditions
• Operating analysis to optimize
use of existing transmission
assets
Do More with Existing Transmission
• Phasor Measurement Units (PMUs)
to monitor power system vital
signs across Alberta
 Streaming output of voltage and
current at 30 samples/second
 Initiated a project with U of A to
study the North South path
 Researching use of PMU data as a
real time indicator of system stability
Ensuring System Reliability
• Strong emphasis on tools, training and
procedures
 NERC/WECC Audit identified 3 areas of
excellence:
– Comprehensive Operating Policies and
Procedures Manual with thorough revision
procedures
– Good understanding of voltage issues – study
and monitor voltage and reactive resources on
AIES
– Frequency measurements at all major
generation sources to manage islanding
conditions
 Improved ‘real time’ operating tools to
improve situational awareness
 Ongoing system controller training and well
defined blackout restoration plans and
annual drills (185)
 Seasonal assessments to address operating
issues/optimize use of system
• New System Coordination Centre & EMS
Ensuring System Reliability
• Coordination with Transmission
Facility Owners and Generators
 Comprehensive analysis and followup after disturbances
 Ensure adequate spares and
emergency plans are in place and
tested
 Improve the AESO facilitated
process that provides a view of
forward view of outages
• Compliance
 Mandatory reliability standards are a
means to provide for reliable system
operation
 Mandatory reliability standards will
cover all major functions in the
electrical industry including cyber
security
Reliable: 24 . 7. 365
In Summary
• There are many challenges ahead for the
electric industry and the AESO

Need to advance major transmission
system reinforcements

Heavy demand for customer
interconnections

Need major investment in new supply

Wind Integration

Challenging system operations and more
extreme weather

Continuing evolution of the competitive
market for electricity

Implementation of mandatory reliability
standards
• Reliability: it’s our commitment to
stakeholders, market participants and
Albertans
Questions