Written by:
Curtis Matwychuk-Goodman
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“Ben Franklin may have discovered electricity – but it is the man who invented the meter who made the money”
- Earl Warren-
Introduction to the Issue
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conomic growth and electricity consumption are directly correlated. As a nation’s electricity consumption increases so does the gross domestic product.[1] It is generally accepted that access to electricity is a necessary element for a healthy economy; in today’s day and age electricity is required for production of both goods and services. Without access to reliable sources of electricity the efficiency and productivity of the North American economy would tumble.
This paper seeks to investigate the current trade policy between Canada and the United States in the case of International Power Lines (IPL) and the international sale of electricity. The specific case of the Montana-Alberta Tie Limited (MATL) project provides an excellent case study of the Canada-U.S. relations on electrical energy. MATL will be the first direct merchant-based grid interconnection between the province of Alberta and the state of Montana and will provide context for the regulatory environment of each country. This paper will present the case from the Alberta perspective. It will, however, provide analysis of both the federal and sub-federal governments from both Canada and the U.S. and their related jurisdictional authority over the MATL project. In doing so, this paper will discuss the context surrounding the construction of an International Power Line (IPL). The recent final approval of the MATL project demonstrates the continuing harmonization of the North American electricity grid; which will briefly be discussed.
In addition, this paper will directly examine the popular notion that Alberta is an energy superpower in the North American marketplace; albeit perhaps not a leader in the electric energy industry specifically. In fact, this paper seeks to demonstrate that Alberta has tremendous growth opportunities but currently lacks the adequate infrastructure to exert such influence even in the North American marketplace. To begin our discussion, let us first explore exactly what electricity is.