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Alberta

Federal electricity regulations threaten Albertans with high costs and power outages

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11 minute read

Alberta responds to dangerous federal electricity regulations

Alberta has submitted detailed analysis showing why proposed federal regulations will threaten the province’s electricity grid.

Alberta is rapidly reducing emissions and targeting a carbon-neutral grid by 2050. Electricity emissions have declined by 53 per cent since 2005 and the province will have phased-out all coal generation by early 2024.

However, in August, the federal government released its draft Clean Electricity Regulations, which propose rigid rules to try and achieve net-zero electricity by 2035.

Based on expert analysis and industry consultations, Alberta’s government has submitted a detailed response outlining the technical problems with these regulations. The province’s analysis found that these regulations are unrealistic, ineffective and could compromise grid reliability to an unacceptable degree, resulting in the very real risk that Albertans will not have access to an essential service, like power, when they need it.

“These regulations are irresponsible and reckless, setting unrealistic targets and even banking on technologies that don’t exist. They will result in Albertans shouldering an unbearable cost for an electricity system that will no longer deliver the safety, reliability and affordability upon which our lives depend. We will not permit these dangerous and unconstitutional regulations to be imposed upon our province.”

Danielle Smith, Premier

“The standards and enforcement that Ottawa is proposing would put the safe, reliable and openly competitive market of Alberta’s electricity system at risk, all for targets that aren’t feasible or realistic. We cannot allow the reliability of our electricity to be compromised and risk public safety during the coldest months of the year, when people need the power most. We urge Ottawa to abandon these regulations and work with us on a realistic path that aligns with our own emissions-reduction goals.”

Rebecca Schulz, Minister of Environment and Protected Areas

Some of the key problems outlined in Alberta’s technical submission include:

Flawed modelling creates unrealistic targets

The modelling tools used by the federal government lack the capability to properly assess Alberta’s energy-only market, including the province’s large share of cogeneration. The federal tools also use incomplete proxies to evaluate system reliability, leading them to drastically underestimate the negative impacts.

The federal modelling also relies heavily on technologies that are currently not ready to be deployed, assuming that they will soon be easily or quickly available. As a result, the federal modelling offers an unreliable and inaccurate picture of the costs, impacts on reliability and outcomes of these regulations. With better modelling, the federal targets would be unachievable.

Unachievable standards

The regulations propose unachievable emission standards, with limited flexibility and using a rigid approach that will not work. The standard is also based on unproven design specifications that will be very challenging for operators to meet, even under optimal conditions, and potentially impossible given the operational variability that occurs in electricity grids on a daily basis.

Notably, Ottawa’s standard is significantly higher than those proposed in the United States in May. Standards need to be based on actual performance.

Creating a retirement cliff

The proposed regulations set an end of prescribed life of 20 years, despite the typical operating life of natural gas units being closer to 45 years. This will create stranded assets and massive retirement “cliffs,” as large numbers of natural gas facilities go off-line.

Approximately 55 per cent of Alberta’s existing and approved natural gas generation installed capacity would be subject to the federal emissions standard by 2035. The unnecessary retirement of best-in-class natural gas units would have massive negative impacts on Alberta’s electricity system.

A one-size-fits-all approach won’t work

It is clear that the federal government drafted these regulations based largely on the electricity systems of Canada’s three largest provinces, which primarily rely upon hydroelectricity and nuclear energy.

Regional differences must be recognized, including flexibilities for those jurisdictions most negatively affected by the regulations. When Ottawa exempted home heating oil from the carbon tax, they recognized the need for this flexibility. Alberta and all provinces deserve the same consideration.

Flawed understanding of natural gas

Alberta currently relies on natural gas for more than 70 per cent of its generation. Alberta’s grid reliability is maintained through natural gas generation to backup and balance intermittent sources of power such as wind and solar. Considering the seasonality of renewable resources, Alberta anticipates the need for efficient high-capacity abated natural gas units for decades to come.

The regulations are so rigid and strict that they will effectively make it economically unviable for companies to build and operate natural gas facilities, including abating emissions through carbon capture, utilization and storage (CCUS).

Inflexible and punitive compliance options

The draft regulations are unnecessarily punitive with inflexible compliance options. As written, generators must not emit or they could face criminal penalties under the Canadian Environmental Protection Act, which includes a threat of incarceration. The regulations also increase red tape, increase costs, and offer very little flexibility for industry.

Limiting new technologies

The proposed federal electricity regulations will limit the adoption of important new technologies like hydrogen and CCUS by setting unproven and unrealistic performance standards for facilities. This imposes high costs, introduces investor risk, and creates challenges such as older facilities not being able to upgrade or retrofit new technologies. The result will be added costs and grid reliability risks.

Risks to reliability and safety

Alberta requires reliable electricity power in periods when intermittent sources are not generating. In December 2022, the 5,000 megawatts of installed renewable capacity generated as little as 187 megawatts of energy at one point during a period of cold weather with little wind or solar generation. Natural gas was needed to keep the province from experiencing blackouts.

The proposed allowable peaking provisions – needed to ensure that power is available at any time, under any weather conditions – will result in Alberta not having enough power available when needed most. This is dangerous and irresponsible. The proposed low annual-run-hour limit and emissions restrictions do not enable natural gas assets to respond when needed to increasing demands and the variability of intermittent generation.

A ridiculous approach to emergencies

The proposed treatment of emergencies is unacceptable. It is untenable for the federal government to require post-emergency sign-off by a federal minister. Alberta’s provincial system operator knows best when we have an emergency, not politicians in Ottawa. Provinces must have flexibility to call on generators during emergencies to protect the safety and security of families and businesses, without the threat of punitive action on system operators or generators.

Inadequate financial support for those hit hardest

The federal government released the draft regulations without providing the financial supports needed to enable this transition. Any claims otherwise are false. Federal modelling indicates the regulations will cost $58 billion – since 60 per cent of the net costs will fall on Alberta, the province should receive 60 per cent of the necessary federal funding. Also, the $58-billion figure is likely incorrect as it’s based on flawed modelling and does not adequately consider the distribution and transmission and other costs that will be required. Other third-party assessments further estimated the costs reaching into the trillions.

Next steps

Alberta continues to call on the federal government to respect jurisdictional authority and the enshrined rights and responsibilities of the provinces. The Supreme Court of Canada’s decision on the Impact Assessment Act confirmed the unconstitutionality of the federal government’s ongoing efforts to interfere with electricity and natural resource sectors of all provinces.

The Alberta-Ottawa working group continues to discuss how to bring Ottawa’s efforts to achieve carbon neutrality in the economy in line with Alberta’s Emissions Reduction and Energy Development Plan. If this alignment is not achieved, Alberta will chart its own path to protect its citizens and economy by ensuring the province has additional reliable, affordable and sustainable electricity brought onto the power grid.

Alberta officials will continue to share technical information and analysis on these regulations with the federal government as required to achieve a more practical and realistic approach.

Quick facts

  • Alberta has reduced electricity emissions by 53 per cent since 2005.
  • According to Canada’s Constitution, legislating and regulating the development of electricity explicitly falls within the jurisdiction of the province (92A (1) (c)).
  • The Alberta Electric System Operator found that Alberta would face disproportionate risk and costs, compared with other provinces, as a result of the federal electricity regulations.
  • The Public Policy Forum previously indicated that the cost of the federal electricity approach could be more than $1 trillion and as high as $1.7 trillion.

Alberta

Canadian Christian chiropractor fights ‘illegal’ $65,000 fine for refusing to wear mask

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From LifeSiteNews

By Anthony Murdoch

Dr. Curtis Wall went against the College of Chiropractors of Alberta’s COVID mask mandate in 2020 and the organization has been pursuing disciplinary action ever since.

The legal team for Dr. Curtis Wall, a Canadian chiropractor who was recently fined $65,000 by his medical college for not wearing a mask in 2020 despite the fact public health orders last year were nullified by a court, has vowed to fight the “illegal” fine, saying that Wall was targeted because he is a “Christian man of integrity and principle.”

“Dr. Wall should not pay any fines or costs when the public health orders he was charged with not following have been declared void by the courts,” said Wall’s legal team, Liberty Coalition Canada (LCC), in a press release.

“He is a Christian man of integrity and principle — attributes that make him a target for government overreach in the era of COVID.”

Wall was practicing in Calgary in 2020 when the COVID crisis was gearing up, went against Alberta’s public health orders and chose not to wear a mask during patient visits. Many of his patients also decided to not wear masks during their visits, which quickly drew the ire of College of Chiropractors of Alberta, which had mandated that all chiropractors wear masks.

Wall, who has been seeing patients for the last 25 years with a pristine record, was then targeted by the College, which tried to strip him of his license to practice. The College was unable to strip Wall of his license and he continued to practice, sans mask in 2021 and 2022.

In 2021, the College had brought against Wall, as per the LCC, “a long list of charges of unprofessional conduct against Dr. Wall, most of which related to Dr. Wall not wearing a mask while treating patients and permitting his patients to not wear a mask.”

Wall was then brought before a disciplinary hearing Tribunal to mediate his case, which went well into 2022, and had placed a publication ban on all “identities of all witnesses,” including Wall’s.

James Kitchen, Wall’s lawyer from the LCC, was successful in getting the publication ban lifted, as the LCC noted due to the College “wishing to avoid likely defeat before the courts” regarding keeping the ban in place.

Fined chiropractor says college did not recognize his ‘Christian convictions’

The Tribunal’s decision noted the LCC is “riddled with errors of fact and law and is so poorly decided it is an embarrassment to the chiropractic profession.”

Wall spoke with LifeSiteNews and observed that while in his point of view he does not feel his fines and costs imposed on him by the college “are a direct result of my Christian faith,” he did note that the tribunal did “not recognize my honest Christian convictions as a valid reason for my not wearing a mask.”

“They put placed no merit in the argument that as a Christian I believe I am created in the image of God,” Wall said.

“My face is an expression of Him. Having man arbitrarily mandate that I cover my face is an affront to that expression and signifies that I am living in the fear of man, not by faith.  So, in all, I don’t feel directly persecuted as a Christian, but certainly indirectly.”

Wall told LifeSiteNews that in his opinion the college could have “handled this issue much differently.”

“There must always be room for exceptions to a rule. I did present a doctor’s note to verify my inability to wear a mask. They did not place any weight on that note. They blamed me for ‘self-diagnosing’ my problem,” Wall said.

“Number one, I’m a doctor. I think eight years of schooling has given me some wisdom to diagnose my own signs and symptoms. Number two, if someone eats a peanut and their throat swells shut, can they not diagnose themselves and stay away from nuts? It’s not a problem to self-diagnose.”

Wall said that despite his legal team presenting four expert witnesses to demonstrate “the obvious inadequacy and lack of efficacy in mask-wearing, not to mention the harms as well,” the college “did not cite the record once in their verdict.”

He noted that “common sense, science and past and present studies overwhelmingly demonstrate” the lack of efficacy regarding mask-wearing.

The LCC noted that although both Kitchen and Wall hoped for an “unbiased decision from the tribunal,” they knew it was more “likely the tribunal members would lack the courage to oppose the government’s COVID narrative by accepting the scientific evidence masks are utterly ineffective at preventing the transmission of COVID and harmful to wearers.”

“Nonetheless, it is shocking the lengths the tribunal went to dismiss the evidence of Dr. Wallthree of his patients, and his four expert witnesses while blithely accepting all the evidence of the College.”

Wall’s charges laid despite a recent court ruling nullifying all Alberta COVID health orders

According to LCC, the charges brought against Wall show that the College of Chiropractors of Alberta has “ignored the law” relating to non-criminal COVID-era charges handed out in the province.

As reported by LifeSiteNews before, last year a judge from Alberta ruled that politicians violated the province’s health act by making decisions regarding COVID mandates without authorization. This ruling came from the Alberta’s Court of Kings Bench’s Ingram v. Alberta decision, which put into doubt all cases involving those facing non-criminal COVID-related charges in the province. In effect, the ruling struck down and nullified all health orders issued by Dr. Deena Hinshaw, Alberta’s former chief medical officer of health.

As a result, multiple people facing charges, such as Dr. Michal Princ, pizzeria owner Jesse Johnson, café owner Chris Scott, and Alberta pastors James Coates, Tim Stephens, and Artur Pawlowski who were jailed for keeping churches open under then-Premier Jason Kenney, have had COVID charges against them dropped due to the court ruling.

The Alberta’s Court of Kings Bench’s Ingram v. Alberta decision put into doubt all cases involving those facing non-criminal COVID-related charges in the province.

As a result of the court ruling, Alberta Crown Prosecutions Service (ACPS) said Albertans facing COVID-related charges will likely not be convicted but instead have their charges stayed.

However, last year, the College, and of important note after the Ingram ruling, ordered Wall to pay $65,000 in fines and costs “under threat of immediately losing his license to practice if he does not pay,” the LCC said.

Chiropractor’s lawyer to fight fine tooth and nail

According to the LCC, the College’s new complaints director said she will enforce the tribunal’s court-defying order and mandate Wall pay the $65,000.

Because of this, Kitchen submitted an application to the College “to prevent this injustice” against Wall, the LCC noted.

“The Application will be heard on June 21. It will be heard virtually and is open to public, although the College has erected a number of barriers to people attending its hearings. For one, people must register with the hearings director and must do so many days in advance,” he told LifeSiteNews.

“The Tribunal elected to ignore the Ingram decision despite issuing its decision over two weeks after Ingram was released by the Court.”

Kitchen noted that the Tribunal had a lawyer advising it who was being paid some $700 an hour. He told LifeSiteNews that “Tribunals can do whatever they want and often do.”

“Only if the affected person takes further legal action can they hold the Tribunals accountable. And even then, that’s very difficult because the first appeals are to the councils of the Colleges, which almost always rubber stamp whatever the Tribunals decide. Real accountability isn’t had until the impugned professional is able to reach the Court of Appeal, which of course takes years and an enormous amount of funding for lawyer fees,” Kitchen said.

Kitchen is working Wall’s case at discounted rates and noted that high legal costs in such cases dealing with tribunals, who can drag things on for years, to him appear to be a tactic the Colleges count on for “avoiding accountability.”

The LCC estimates the College, which is funded through payments from all chiropractors, paid some $600,000 in legal fees to fight Wall.

“LCC asks supporters to donate toward Dr. Wall’s case so he and Mr. Kitchen can hold the College of Chiropractors of Alberta accountable and bring an end to the unjust persecution of Dr. Curtis Wall. Liberty Coalition Canada is assisting Dr. Wall with his legal expenses through the Legal Defense Fund.”

Kenney quit after losing the confidence of his United Conservative Party (UCP) members for backtracking on his promise to not impose a COVID vaccine passport. Under Kenney, thousands of businesses, notably restaurants and small shops, were negatively impacted by severe COVID restrictions, mostly in 2020-21, that forced them to close their doors for a time. Many never reopened. At the same time, as in the rest of Canada, big box stores were allowed to operate unimpeded.

Under Kenney, thousands of nurses, doctors, healthcare and government workers lost their jobs for choosing to not get the jabs, leading Premier Danielle Smith to say – only minutes after being sworn in – that over the past year the “unvaccinated” were the “most discriminated against” people in her lifetime.

Recently, LifeSiteNews reported on how Alberta-based Rath & Company is in the process of putting together a class-action lawsuit against the Alberta government on behalf of many business owners in the province who faced massive losses or permanent closures from what it says were “illegal” COVID public health orders enacted by provincial officials.

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Alberta

Game changer: Trans Mountain pipeline expansion complete and starting to flow Canada’s oil to the world

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Workers complete the “golden weld” of the Trans Mountain pipeline expansion on April 11, 2024 in the Fraser Valley between Hope and Chilliwack, B.C. The project saw mechanical completion on April 30, 2024. Photo courtesy Trans Mountain Corporation

From the Canadian Energy Centre

By Will Gibson

‘We’re going to be moving into a market where buyers are going to be competing to buy Canadian oil’

It is a game changer for Canada that will have ripple effects around the world.  

The Trans Mountain pipeline expansion is now complete. And for the first time, global customers can access large volumes of Canadian oil, with the benefits flowing to Canada’s economy and Indigenous communities.  

“We’re going to be moving into a market where buyers are going to be competing to buy Canadian oil,” BMO Capital Markets director Randy Ollenberger said recently, adding this is expected to result in a better price for Canadian oil relative to other global benchmarks. 

The long-awaited expansion nearly triples capacity on the Trans Mountain system from Edmonton to the West Coast to approximately 890,000 barrels per day. Customers for the first shipments include refiners in China,  California and India, according to media reports.  

Shippers include all six members of the Pathways Alliance, a group of companies representing 95 per cent of oil sands production that together plan to reduce emissions from operations by 22 megatonnes by 2030 on the way to net zero by 2050.  

The first tanker shipment from Trans Mountain’s expanded Westridge Marine Terminal is expected later in May.

Photo courtesy Trans Mountain Corporation

 The new capacity on the Trans Mountain system comes as demand for Canadian oil from markets outside the United States is on the rise.  

According to the Canada Energy Regulator, exports to destinations beyond the U.S. have averaged a record 267,000 barrels per day so far this year, up from about 130,000 barrels per day in 2020 and 33,000 barrels per day in 2017. 

“Oil demand globally continues to go up,” said Phil Skolnick, New York-based oil market analyst with Eight Capital.  

“Both India and China are looking to add millions of barrels a day of refining capacity through 2030.” 

In India, refining demand will increase mainly for so-called medium and heavy oil like what is produced in Canada, he said. 

“That’s where TMX is the opportunity for Canada, because that’s the route to get to India.”  

Led by India and China, oil demand in the Asia-Pacific region is projected to increase from 36 million barrels per day in 2022 to 52 million barrels per day in 2050, according to the U.S. Energy Information Administration. 

More oil coming from Canada will shake up markets for similar world oil streams including from Russia, Ecuador, and Iraq, according to analysts with Rystad Energy and Argus Media. 

Expanded exports are expected to improve pricing for Canadian heavy oil, which “have been depressed for many years” in part due to pipeline shortages, according to TD Economics.  

Photo courtesy Trans Mountain Corporation

 In recent years, the price for oil benchmark Western Canadian Select (WCS) has hovered between $18-$20 lower than West Texas Intermediate (WTI) “to reflect these hurdles,” analyst Marc Ercolao wrote in March 

“That spread should narrow as a result of the Trans Mountain completion,” he wrote. 

“Looking forward, WCS prices could conservatively close the spread by $3–4/barrel later this year, which will incentivize production and support industry profitability.”  

Canada’s Parliamentary Budget Office has said that an increase of US$5 per barrel for Canadian heavy oil would add $6 billion to Canada’s economy over the course of one year. 

The Trans Mountain Expansion will leave a lasting economic legacy, according to an impact assessment conducted by Ernst & Young in March 2023.  

In addition to $4.9 billion in contracts with Indigenous businesses during construction, the project leaves behind more than $650 million in benefit agreements and $1.2 billion in skills training with Indigenous communities.   

Ernst & Young found that between 2024 and 2043, the expanded Trans Mountain system will pay $3.7 billion in wages, generate $9.2 billion in GDP, and pay $2.8 billion in government taxes. 

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