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Ian S Yeates's avatar

Good article - I have worked in the industry in the neighbouring province of Sask and will simply note that all utilities operate with fairly slender and chunky reserves. As noted in the article, a couple of major projects were delayed for whatever reason, which had they not been this issue would not have happened. This is the nature of the system. Regulators frown at 'gold plating' systems which has the effect of 'just in time' deliveries of new units to accommodate growth and to replace obsolete and aged out facilities. There is therefore a certain amount of stress in the system due to this approach - needless to add, when you replace a clapped out unit, net book value zero, with a nice new one, net book value $1 billion, you get a rate increase to pay for it. Not popular.

Also not popular is relying on your outdoor BBQ for cooking purposes given a blackout.

The 'chunky' aspect of new facilities is based on the fact that a new unit delivers, say, 1000 MW when load growth and decommissioned units require 200MW. You have a period of surplus which is then eroded in future years of load growth and decommissioned units. The cycle then repeats. Criticism of the 'unnecessary' capital investment providing 'unneeded' capacity is misplaced.

Frankly, the infrequency of problems is a credit to the utilities across the continent - they're all interconnected and all provide back up services when they can (Sask and BC did so at Alta's need, just as Alta does for its neighbours in the same circumstance). Folks generally have no idea as to the toing and froing between utilities but it is a critical part of the system.

Renewables complicate grid management but that's allowed for as well.

The CER will complicate planning and will drive investment in the coming decades but it is manageable. Much of public discourse is a trifle overwrought. No, GHG-emitting units will not be closed without replacement, thereby driving us all back to the days of "Quest for Fire".

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Stuart MacDonald's avatar

How refreshing to read a real, non-biased explanation for what happened. Like so many situations, this one played out as a proof point for whatever pre-existing beliefs people had (eg Government stupid, renewables bad or whatever) and conveniently ignoring the possibility that the professionals whose job is is to plan for and manage these events were actually doing what they were supposed to and got caught out by other factors. This context is so important AND is a good example of the knee jerk reaction people have and use to drive a narrative or stoke anger based on, often, nothing at all actually related.

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