TransAlta Profits at Public's Expense if Keephills Expansion Approved

Oct. 29, 2001

If TransAlta is allowed to proceed with its Keephills project as proposed, it will have avoided use of best available coal-fired technology, stated Tom Marr-Laing, Director of the Pembina Institute's Energy Watch program. "This would benefit TransAlta's bottom line while leaving the public to suffer the health and environmental risks of unnecessarily high levels of pollution."

Air pollution from the four generating sites west of Edmonton will increase by up to one third if all the electric power developments proceed. The majority of the emissions will come from TransAlta facilities, especially from its proposal for the Keephills expansion (see background #1).

In its submission filed with the Energy and Utilities Board (EUB) regarding the Keephills proposal, the Pembina Institute shows how TransAlta could free up enough income from its project (some $47-$85 million per annum) to support investments in technologies that could significantly lower emissions from pollutants such as sulphur dioxide, nitrogen oxides and particulate matter (see background #2).

"Emissions produced by the Keephills expansion will be higher than necessary, even for a coal-fired plant," said policy analyst Mary Griffiths. "Much lower emission levels are possible with current technology, as can be seen from a recent Alberta Environment report, received by the Pembina Institute after submitting a Freedom of Information request."

TransAlta is proposing to use a subcritical combustion process, which is less efficient than the supercritical process planned for EPCOR's Genesee expansion. Also, emissions of sulphur dioxide from the TransAlta plant could be double those from EPCOR (on an equivalent per MWh basis) if TransAlta does not invest in better pollution control technology.

While EPCOR has volunteered to meet the much stricter U.S. standard for sulphur dioxide removal, TransAlta is only planning to comply with the existing Alberta standards. These standards were set with no public input, are much weaker than those used in other jurisdictions, and do not require the use of best available technology. The provincial government has already proposed to initiate a public review in order to tighten these standards for future plants.

"Studies in the U.S. and Europe show the high cost to society that results from the health and environmental effects of air pollution from coal-fired power plants," said Griffiths. "The Pembina Institute believes all new coal plants should be deferred until proponents are prepared to use technologies that are at least as clean as gas — technologies which are available now."

The Pembina Institute will be asking the EUB to reject TransAlta's application on the basis that new coal-fired plants are not needed at present to meet demand, will not result in electricity prices any lower than those from gas-fired generators, and will unnecessarily increase risks to human health and the environment.

The submission, which is available on the Pembina website at www.pembina.org is made on behalf of the Clean Energy Coalition, that also includes the Environmental Resource Centre, Toxics Watch Society, Western Canada Wilderness Committee and the Mewassin Community Action Council.

For more information contact:

Tom Marr-Laing
Director, Energy Watch Program, Pembina Institute
Cell: 780-621-2472
Email: thomasml@pembina.org

Mary Griffiths
Policy Analyst, Pembina Institute
Office: 780-433-6675
Cell: 780-915-9771
Email: maryg@pembina.org

For more information please see backgrounder 1, backgrounder 2 and download the submission for this news release.

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