Integration of Hydro and Thermal Power Resources in Alberta

The populated area of Alberta, comprising approximately the southern half, receives electric service from an extensive network of high-voltage transmission lines which link all the major production facilities in the Province. This transmission network facilitates the joint development of a substantial hydro power potential and large reserves of low-cost coal and natural gas. Calgary Power Ltd., which supplies some two thirds of the electric energy requirements throughout much of the populated area of Alberta, is particularly well situated to develop both of these power sources. Large thermal-electric plants are being designed and constructed for base load operation and hydroelectric plants are being extended to supply the peak load requirements. Fuel costs of 10¿ cents per million Btu or less, and low operating costs, by the use of central control equipment, enable Calgary Power to produce base load energy at a lower cost in thermal-electric plants than is possible from the remaining hydroelectric sites. Peaking capacity can, in general, be provided more economically from automatically controlled hydroelectric plants than in thermal plants as the incremental cost of hydro capacity does not include the cost of such major hydraulic structures as dams and spillways. Minimum power production costs are obtained by Calgary Power when thermal-electric and hydroelectric plants are integrated with the thermal plants carryig the base load and hydro plants the peak load. These two major sources of electric energy are therefore treated as complementary to, and not competitive with, each other.