Press release from Marketwire
ATCO Electric Submits Updated Costs for Major Transmission Project
Friday, August 23, 2013
ATCO Electric Submits Updated Costs for Major Transmission Project16:31 EDT Friday, August 23, 2013
CALGARY, ALBERTA--(Marketwired - Aug. 23, 2013) - ATCO Electric has submitted an updated cost estimate to the Alberta Electric System Operator for the 485 kilometre (km), 500 kilovolt direct current Eastern Alberta Transmission Line (EATL) project between Edmonton and an area southeast of Brooks. The backbone line is being built to add much needed reinforcement and capacity to Alberta's electricity system. The submission updates the costs associated with the EATL project from $1.6 billion to $1.8 billion.
In December 2011, the Alberta Government halted the application process pending a review by an expert Critical Transmission Review Committee. The additional review by this Committee delayed approval of the project until November 2012.
The increase in estimated costs is due to an increase in detailed engineering and design costs, inflation, higher Alberta construction costs and delays in receiving approval for the project. Additional engineering and permitting associated with the 125 kms of alternative routes that the Alberta Utilities Commission approved as the final routing on the EATL project, also contributed to the cost increase.
"ATCO Electric works hard to minimize costs associated with our transmission construction projects," said Sett Policicchio, President, ATCO Electric Transmission Division. "We will continue to be diligent to ensure costs to build this vital project are kept as low as possible."
In July, ATCO Electric completed the Hanna Region Transmission Development project - comprised of 355 kms of transmission lines, six new substations and upgrades to 14 existing substations. This project was completed on time and approximately $60 million under budget, representing ATCO Electric's continued commitment to providing cost effective infrastructure to support Alberta's growth.
ATCO Electric provides safe, reliable delivery of electricity to nearly 216,000 customers in 245 communities across Alberta and is part of the ATCO Group of Companies. ATCO Group, with more than 9,400 employees and assets of approximately $15 billion, delivers service excellence and innovative business solutions worldwide with leading companies engaged in Structures & Logistics (manufacturing, logistics and noise abatement), Utilities (pipelines, natural gas and electricity transmission and distribution), Energy (power generation, natural gas gathering, processing, storage and liquids extraction) and Technologies (business systems solutions). More information can be found at www.atco.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
ATCO Electric Transmission Division