Alberta
Boxing Day Special! Alberta had free power for several hours, and that’s not a good thing
From the Frontier Centre for Public Policy
Imagine, if you will, a Boxing Day sale where everything was free for everyone across every store at the same time, for several hours.
And imagine if in early morning hours of Dec. 26, Best Buy, Staples, Walmart, and indeed every single store in the entire economy got paid precisely zero dollars for their wares for several hours that morning.
Preposterous, you say!
Indeed, it did happen, in Alberta’s free-wheeling unregulated electrical market. The pool price, as recorded by the Alberta Electric System Operator (AESO) was $0.00 per megawatt at 4-7 a.m., and from 11 a.m. until noon.
And as a pool price, that means unless there’s some other contract going, that’s the price all generators get paid.
I might not have an MBA, but I’m fairly certain no business model in the world can survive getting paid nothing at all for their product for terribly long. If McDonalds, Burger King and Tim Horton’s all gave away their breakfasts on Dec. 26 to all comers, they couldn’t do it for long before someone would realize this is idiocy and shut the doors.
So what was happening during those wee hours in the morning, as the Boxing Day shoppers were in line for their flat screen TVs? It was quite windy in Alberta.
X bot account @ReliableAB, which logs hourly reports of the AESO minute-by-minute reporting of the grid showed that wind generation was just a hummin’. For several weeks, Alberta wind power has been been frequently pumping out high numbers, often in excess of 70 per cent of its nameplate capacity. One would think this would be a great thing, right? It’s finally doing what it’s supposed to do.
At 4:38 a.m., @ReliableAB reported Alberta’s now 45 wind farms were putting out 3,508 megawatts of the installed capacity of 4,481 megawatts while the pool price was zero.
At that point, wind was generating a full 33 per cent of total generation, which again, sounds like great news.
It was during one of the deadest periods of economic activity in the whole year, the night after Christmas. Demand in Alberta was low, with an internal load of 9,632 megawatts. The lack of demand happened to coincide with lots of surplus power being dumped onto the grid.
(As it was still dark, solar wasn’t a factor.)
What to do? How about sell as much as you can?
And that’s what happened. Alberta was pumping out 995 megawatts of power exports to its neighbours, 967 megawatts to BC, 26 to Saskatchewan, and two megawatts to Montana.
This situation is also the converse of what I’ve been reporting on over almost precisely 24 months, the frequent collapse of wind power generation in Alberta. Almost every time that has happened, the pool price shoots up, often hitting $700, $800, $900 or even the theoretical maximum of $999.99 per megawatt hour. If the maximum was $2,000, I’m willing to bet it would have hit those heights, too. And the integral under that graph – what consumers get on their bill – is horrendous.
So here we have renewable, “green” power in surplus, driving prices down for everyone, and so much so that it can benefit the neighbours, too.
But therein is the fundamental problem. No one, not Best Buy, McDonalds or Capital Power can produce product for nothing, and definitely not for extended periods. There is a cost to generating power, be it capital or fuel or operating costs. Nor can they sell their products, be it flat screen TVs, hamburgers or electricity for next to nothing, either. The entire economic model will collapse, and then what? Who will provide the power then?
When I wrote my first story on Alberta wind power on Dec. 28, 2021, the province had 2,269 megawatts on nameplate wind generation capacity. It’s now double that, at 4,481 megawatts, a level where big swings in wind power production have a huge impact. And Alberta’s last coal plant will switch to natural gas in a few months.
And there’s more wind coming. Oct. 24, the Calgary Herald noted, “More than 3,500 megawatts of renewable power generation projects are now under construction in Alberta.
“By the end of August, the AESO received 74 wind and solar project applications after the moratorium was announced, (Premier Danielle) Smith noted.”
What’s going to happen when all that comes online, when Alberta will have around 9,600 megawatts of wind and solar, almost equal to daily demand? Will the grid be flooded with power so cheap that reliable, dispatchable power generators can’t stay in business, only to see prices skyrocket when wind and solar inevitably fail, as they frequently do, and at the worst times?
Sounds like a recipe for utter chaos. And blackouts.
Brian Zinchuk is editor and owner of Pipeline Online, and occasional contributor to the Frontier Centre for Public Policy. He can be reached at [email protected].
Alberta’s government will develop a Passenger Rail Master Plan as the foundation to advancing passenger rail in the province.
Since the early days of Alberta’s development, the province has been shaped by the iron rails that crisscross its landscape. The arrival of the transcontinental railway in the late 19th century brought about profound changes to the way of life, facilitating trade, settlement, and economic prosperity. Towns and cities sprung up along the tracks, serving as vital hubs for commerce and transportation.
Today, the legacy of rail continues to shape Alberta and the rest of Canada. While the modes of transportation may have evolved, the spirit of innovation and connectivity remains as strong as ever. As Alberta experiences record population growth and evolving transportation needs, advancing passenger rail infrastructure is essential for enhancing accessibility, efficiency, and connectivity across the province.
Alberta’s Passenger Rail Master Plan will look forward decades and identify concrete actions that can be taken now as well as in the future to build the optimal passenger rail system for the province. The Master Plan will assess the feasibility of passenger rail in the province, including regional (inter-city), commuter and high-speed services.
“A large and efficient passenger rail network stretching across the province has incredible potential. It represents a forward-looking vision and is a mobility solution for our rapidly growing province and I’m excited to watch this plan take shape and bring us into the future. There’s a lot of work ahead of us, but I’m confident that we will build the network Albertans need to improve daily life and work, boost the economy and take away the stress of long-distance travel.”
“Alberta already has significant public mass transit systems in Calgary and Edmonton for the provincial passenger rail system to build upon. The Master Plan will be a vital tool to guide the province on the next steps in advancing passenger rail. It will provide certainty to the rail sector and ensure the most effective use of tax dollars and government authorities. We look forward to hearing from Albertans and working with municipalities, Indigenous communities and the private sector in advancing passenger rail in the province.”
Passenger rail services connected to urban mass transit shapes and strengthens regional transportation systems, connects communities, supports jobs and the economy and improves access to housing.
“Canada’s railways appreciate the Alberta government’s efforts to conduct a fact-based study on the potential for passenger rail service that recognizes the essential need to protect current and future freight rail capacity. Any proposal to co-locate passenger service in freight corridors must demonstrate the ability to preserve the freight rail capacity required to move goods in support of the province’s economy, today and tomorrow. Rail is the greenest mode of ground transportation for both people and goods.”
The government’s vision is for an Alberta passenger rail system that includes public, private or hybrid passenger rail, including:
- a commuter rail system for the Calgary area that connects surrounding communities and the Calgary International Airport to downtown;
- a commuter rail system for the Edmonton area that connects surrounding communities and the Edmonton International Airport to downtown;
- regional rail lines from Calgary and Edmonton to the Rocky Mountain parks;
- a regional rail line between Calgary and Edmonton, with a local transit hub in Red Deer;
- municipal-led LRT systems in Calgary and Edmonton that integrate with the provincial passenger rail system; and
- rail hubs serving the major cities that would provide linkages between a commuter rail system, regional rail routes and municipal-led mass transit systems.
The vision includes a province-led “Metrolinx-like” Crown corporation with a mandate to develop the infrastructure and oversee daily operations, fare collection/booking systems, system maintenance, and planning for future system expansion.
“At VIA Rail our vision for integrated mobility means dreaming of a future where a passenger can easily switch between commuter rail, light transit, transit buses, and regional trains in an agile and simple way. We’ve already initiated a number of exchanges with partners, and we intend to step up the pace in the coming months and years. I can assure you that as integrated mobility becomes an increasingly important topic of conversation in Alberta, VIA Rail will be there to play a unifying role.”
Alberta’s Passenger Rail Master Plan will ensure government has the required information to make decisions based on where passenger rail delivers the best return on investment. The plan will provide a cost-benefit analysis and define what is required by government, including a governance and delivery model, legislation, funding, and staging to implement passenger rail in Alberta. This work will include a 15-year delivery plan that will prioritize and sequence investments.
“We are excited to see the province taking the next step in committing to regional and intercity rail. This Passenger Rail Master Plan aims to set out a vision for a comprehensive rail network in our province that’s long overdue. We are thrilled to see this process move forward.”
The Master Plan will take into account future growth, planning for the growing provincial population and considering the use of hydrogen-powered trains to ensure a robust and effective passenger rail system to serve Albertans for years to come.
Development of the Master Plan will include engagement with Albertans to gain their perspectives for the future of passenger rail in Alberta.
Alberta’s government has released a Request for Expression of Interest to seek world-class knowledge and consultant services as a first step toward the development of the Passenger Rail Master Plan for Alberta. Following this process, a Request for Proposal will be issued to select a consultant to develop the Passenger Rail Master Plan. The Master Plan is expected to be completed by summer 2025.
Quick facts
- Passenger rail includes:
- Commuter rail – passenger rail that primarily operates within a metropolitan area, connecting commuters to a central city from adjacent suburbs or surrounding commuter towns, and is often traditional heavy-rail
- Regional rail – passenger rail that operates beyond the limits of urban areas and provides inter-city passenger rail transport services and can be traditional heavy-rail or high-speed rail
- Light-rail transit (LRT) – urban passenger rail transit that typically operates small, frequent train service in an urban area. Calgary and Edmonton use LRT as part of their mass transit systems
- Passenger rail in Alberta is currently limited to two tourism-focused services, VIA Rail and Rocky Mountaineer, and LRT in Calgary and Edmonton.
- Budget 2024 includes $9 million to support the development of the Passenger Rail Master Plan this year.
News release from the Alberta Law Enforcement Response Team (ALERT)
ALERT’s Human Trafficking unit has searched and closed three Calgary massage parlours. A year-long investigation has linked the businesses and its owner to suspected human trafficking.
ALERT arrested Hai (Anna) Yan Ye on April 16, 2024 and charged the 48-year-old with advertising sexual services, drug offences and firearms offences. The investigation remains ongoing and further charges are being contemplated.
Ye was linked to three commercial properties and two homes that were allegedly being used for illegal sexual activities and services. The massage parlours were closed following search warrant executions carried out by ALERT, the Calgary Police Service, and the RCMP:
- Seagull Massage at 1034 8 Avenue SW;
- 128 Massage at 1935 37 Street SW; and
- The One Massage Centre at 1919 31 Street SE.
- 1100-block of Hidden Valley Drive; and
- 3100-block of 12 Avenue SW.
As result of the search warrants, ALERT also seized:
- $15,000 in suspected proceeds of crime;
- Shotgun with ammunition; and
- Various amounts of drugs.
“We believe that these were immigrants being exploited into the sex trade. This has been a common trend that takes advantage of their unfamiliarity and vulnerability,” said Staff Sergeant Gord MacDonald, ALERT Human Trafficking.
Four suspected victims were identified and provided resources by ALERT’s Safety Network Coordinators.
ALERT’s investigation dates back to February 2023 when a tip was received about suspicious activity taking place at the since-closed Moonlight Massage. That location was closed during the investigation, in December 2023, when the landlord identified illegal suites on the premises.
The investigation involved the close cooperation with City of Calgary Emergency Management and Community Safety, Alberta’s Safer Communities and Neighbourhoods (SCAN) team, Canada Border Services Agency (CBSA), and the RCMP.
Ye was released from custody on a number of court-imposed conditions.
Anyone with information about this investigation, or any case involving suspected human trafficking offences, is asked to call Crime Stoppers at 1-800-222-TIPS (8477) or the Calgary Police Service non-emergency line at 403-266-1234.
ALERT was established and is funded by the Alberta Government and is a compilation of the province’s most sophisticated law enforcement resources committed to tackling serious and organized crime.
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