To: Frank Pembleton who wrote (93606 ) 8/13/2001 7:24:10 AM From: Frank Pembleton Read Replies (1) | Respond to of 95453 Klein faces energy competition across border Premier to address 13 governors today Graham Thomson, Political Editor The Edmonton Journal It might not have the political punch of the White House, but Premier Ralph Klein is back in the United States to talk to electricity-hungry American politicians about Alberta's energy potential. This time he's in the lakeside resort community of Coeur d'Alene where he's been invited to co-lead a lunchtime discussion today on energy at the annual Western Governors' Association conference. But unlike Klein's visit with Vice-President Dick Cheney in June, this time the politicians were serving notice on Klein that Alberta doesn't have the energy market sewn up, particularly when it comes to generating electricity. And, while they were at it, the largely Republican gathering of governors made no apologies about the tough tariffs being slapped on Canadian softwood imports by the United States federal government. "We have hydro, we have oil, we have clean-coal technology, we have natural gas, ethanol, we're working with wind energy, we have energy that we are ready to sell," said North Dakota Gov. John Hoeven. "The problem is we can't get it to market." What the 13 governors at the conference want from Alberta, and the other western premiers attending the meeting, is help in upgrading western North America's electricity grid. "We are bringing additional capacity on line," said Idaho Gov. Dirk Kempthorne. "We don't have the transmission system in place yet to help us." Klein was to arrive at the conference late Sunday night. Before leaving Alberta, he acknowledged that politicians on both sides of the border "need to streamline regulatory processes and eliminate unnecessary regulatory hurdles to make the continental energy market more efficient." Indeed, at the top of today's agenda is how to deliver larger amounts of electricity throughout the U.S. which, despite a lull this summer, is experiencing an energy crisis. "It is serious and it will remain serious for I would suggest the next two to three years," said Kempthorne. "If we can get transmission and if the source of that energy is in Canada, I think that's a positive for us." Alberta's major power companies, including TransAlta and Epcor, have recently been pushing for the need for major transmission lines into the U.S. to sell a surplus of power expected in the next five years as the provincially based companies build major new coal-fired power plants. The companies are also arguing that the transmission grid must be improved. For them it's crucial to get Alberta's power into the U.S. market before the states build more of their own power plants and edge Alberta out of the market. Many of the western states, notably Montana and Wyoming, have their own vast deposits of coal and are already building or planning more plants. In what sounds like a contradiction of terms, the governors have dubbed their approach to the provinces a "partnership of competition." "What we need to do is start thinking about the benefit of a partnership with Canada rather than the confrontation and conflict that could otherwise arise," said Wyoming Governor Jim Geringer. "It will always be a competitive approach, but a lot of partnerships have a fairly competitive environment. "It's a healthy competition rather than an arbitrary trade barrier that may go up." But that plea had a hollow ring for the premiers, coming just days after the U.S. federal government moved to slap a damaging 19-per-cent tariff on Canadian imports of softwood lumber. The majority of the governors are Republican and fully support the tariffs which Canada has dubbed punitive. The softwood lumber issue is not on the formal agenda but is expected to pop up in informal talks as Canada tries to fight the tariff.edmontonjournal.com