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“The ratepayer group is concerned that transmission rates in Alberta appear likely to exceed other known rates in North America due to an unprecedented level of cost increases,” says the submission.

Electricity consultant David Gray said Wednesday that transmission costs, which make up about 15 per cent of North American power bills, are forecast to soon account for 45 per cent of power bills in Alberta.

He said the Alberta Electric System Operator has vastly overestimated the growth of Alberta demand, and as a result has massively overbuilt the electrical transmission system.

While the spotlight has been focused on the deregulated portion of the electricity market for the past decade, costs on the regulated side for transmission, distribution and administration have spiralled out of control, Gray said.

“Where Alberta has drifted way off track is in the distribution and transmission of power,” he noted in a report released this week. “These charges are regulated but have become extraordinarily high — even with a firm regulator overseeing the costs.”

Gray, former executive director of the Utilities Consumer Advocate, fears the situation could become worse with recent terminations of power purchase arrangements (PPAs) and other pending costs.

“Coal PPAs pushed back on consumers through the Balancing Pool charges, increases in transmission for projects not yet completed and consumer-based taxes proposed by the government could result in Albertans having the unique distinction (of being) the highest cost electricity jurisdiction in the world,” he said in his report.