U.S. Sen. Steve Daines (R-MT) led three of his Montana Republican colleagues in urging the U.S. Trade Representative (USTR) to address cross-border electricity trade between their home state and Alberta, Canada.
The lawmakers are concerned about regulations impacting the Montana-Alberta Tie Line (MATL), which interconnects the electricity grids of Montana and Alberta, a province in Canada. The Alberta government and the Alberta Electric System Operator (AESO) have enacted rules and practices that the lawmakers say discriminate against Montana electricity exports.
“Furthermore, the AESO is currently proposing potential changes to the Alberta electricity market design that would worsen existing protectionist practices by further excluding U.S. energy imports,” wrote Sen. Daines and the lawmakers in a July 8 letter sent to USTR Jamieson Greer.
“This will result in diminished market access by imposing unfair costs on American producers and putting them at a distinct disadvantage to deliver reliable and affordable electricity,” they added.
The lawmakers also noted that not only will the policies deter future investment in Montana’s electric grid, but they also may undermine Montana’s grid reliability.
“Whereas Montana’s grid meets North American Electric Reliability Corporation standards for reliability and safety, the AESO has significantly deviated from these standards,” according to Sen. Daines and his colleagues. “As a result, it relies on uncompensated frequency response from the Montana grid.”
Under certain conditions, this also would undermine the reliability of Montana’s electricity grid, and could mean the difference between life and death in areas that have temperatures plunging well below zero degrees Fahrenheit, according to the letter.
“Until the Government of Alberta amends its regulatory framework to require a level playing field between Alberta- and U.S.-based energy producers participating in the Alberta electricity market, Montana will continue to be negatively impacted by the lack of reciprocity,” wrote the lawmakers. “We request that you employ all available tools at your disposal to bring about a swift resolution to this ongoing issue.”