Frequently Asked Questions
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What is the MATL project?
The Montana Alberta Tie Line is an international power line (IPL) that will be constructed between Lethbridge, Alberta and Great Falls, Montana. It will be an intertie between the transmission grids of Alberta and Montana.
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What is an intertie?
Interties are transmission lines that connect two electrical control areas. The MATL transmission system is an intertie connecting the Alberta and Montana electrical control areas. Intertie owners and operators, such as MATL, have to follow strict industry rules so that the reliability of each control area is not diminished. In fact, properly designed and operated, an intertie will materially improve the reliability of the two control areas it connects.
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Why is the MATL line needed?
Interties generally make transmission systems more reliable and less susceptible to power interruptions. Additionally, in many parts of North America there are shortages of transmission and generation as a consequence of chronic underinvestment. For example, in Alberta both the provincial government and the electric system operator have identified the requirement for additional power generation sources as well as a need for increased transmission capacity. The MATL line provides both.
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What are the benefits of the MATL line?
The MATL transmission line will provide many direct and indirect benefits to numerous stakeholders. These include:
- Improved reliability of both the Montana and Alberta power transmission grids.
- More diversified power generation, and hence, increased competition in these two markets. Increased supply options decrease price volatility.
- An estimated $35 million in direct spending and economic spinoffs in the local communities during the development of the transmission line.
- Approximately $1 million in annual tax payments to county governments along the line.
- The creation of several hundred jobs during construction of the line, and the ongoing requirement for operations and maintenance personnel during the life of the transmission system.
- Promotion of the development of new power generation projects in Montana and Alberta, including facilitating the establishment of sustainable wind power through the provision of the transmission required to get this clean energy to users.
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How does the MATL line support the developing wind industry?
There is a large area with a high potential for wind generation development in southern Alberta and northern Montana. As this area is sparsely populated, few transmission lines exist that wind developers can tie into to transport this clean and renewable energy to market. The MATL line provides the essential link that will allow wind energy producers to deliver their product to loads in the US and Canada.
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What is the timeline for the MATL project?
All regulatory requirements for the MATL line have been met. MATL projects that construction will begin in 2009 and the transmission line will be in-service in mid-2010.
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Are the rights of way acquired?
MATL has secured right of way agreements for approximately 30% of the Alberta portion of the route. Negotiations to secure easements across the remaining Canadian properties are underway. In the United States, MATL continues to make progress renewing options in Montana that are on the Agency Approved Route.
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Is financing in place?
Yes. MATL is owned by Tonbridge Power Inc., a publicly traded company on the Venture Exchange of the TSX under symbol TBZ. Tonbridge Power has provided equity and debt funding for the development phase. Final negotiations are underway to secure additional debt financing for the construction phase of the project. View Senior Loan Arrangements for Construction.
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How will MATL minimize impact on the environment?
MATL places a high priority on responsible environmental practices. During the planning of the transmission line, MATL has conducted extensive studies and surveys focusing on such things as fish and wildlife habitats, endangered prairie grasses and archeological sites. MATL has made a number of route changes to protect environmentally sensitive areas. MATL’s system design and construction practices are calculated to minimize impacts and environmental footprint.
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How will the MATL transmission line be taxed?
MATL must pay taxes in accordance with all applicable federal, state/provincial and local laws. Most notably, MATL will pay property taxes on each side of the international border in line with the proportion of the physical asset that resides in Alberta and Montana respectively. MATL’s proforma calculations indicate that about $300,000 will be paid annually to local governments in Alberta and $600,000 per year to governments in Montana.