Ghost Reservoir dam deal to help protect Calgary from flood over 5 years for $5.5M per year

Alberta will pay TransAlta $5.5 million a year for the next five years to use its Ghost River Dam to helpprotect Calgary from flooding and its Kananaskis dams to guard against drought.

The five-year deal extends an arrangement thepower company has reached on a one-off basis with theGovernment of Alberta, as the only major flood-mitigation measure on the Bow Riverupstream of the province's largest city.

• Ghost Reservoir to be used for flood protection
• Ghost Reservoir levels lowered for flood prevention
• High water level at Ghost Dam not cause for concern, TransAlta says

MayorNaheedNenshi, who had been pressing for a long-term arrangement with TransAlta,welcomed the deal.

"This is a valuable agreement that will help protectCalgarianswho live and work along the Bow River," he said in a release.

"This is not only an important investment in the protection of people and the environment, it's an investment in the resilience of our economy through the protection of downtown Calgary."

The deal offers protection to Calgary but doesn't guarantee the city will avoid damage in the event of another major flood.

Special operation of the dam and reservoir can mitigate against roughly 20 per cent of the volume of water seen during the 2013 flood, members of city council heard during a committee meeting Wednesday.

Summer control of Ghost Dam

The agreement means the province can dictatewater levelsat the Ghost Reservoir for flood-mitigation purposes between May 16 and July 7.

By keeping the levels lower than they would normally be, the excess damcapacity can be used to hold back water if there were to be a sudden high-water event.

Alberta Environment said last year's agreement provided an extra 65 million cubic metres of flood storage during the highrun-off season.

The $5.5million is to compensate TransAlta for lost hydroelectric generation capacity, inwhat is projected to be a break-even deal.

"TransAltaexpects to cover lost revenue if and when water levels must be lowered and power cannot be generated for customers, but does not expect to make a profit," the company stated.

Drought mitigation, too

The new, five-year agreement also gives the provinceyear-round control of reservoir levels at TransAlta's dams atBarrier Lake, Upper Kananaskis Lakeand Lower Kananaskis Lake for the purpose of drought mitigation.

"Both flood and drought are serious concerns in southern Alberta," Environment Minister Shannon Phillips said in a release.

"This agreement provides more storage capacity and greater flexibility to help protect communities along the Bow River from the potentially devastating effects of flood and drought, and the uncertainties of a changing climate."

Western Irrigation Districtgeneral managerErwin Braun was pleased to have drought mitigation included as partof the deal.

"We want to make sure there is enough water to grow crops in a dry year," he said in a release.

"Good water management and collaboration are the keys to dealing with both flood and drought."

Ghost Lake Village residents impacted

Not everyone has been happy about the lower water levels on Ghost Lake, however.

Some residents of the Village of Ghost Lake complained last summer about the impact of the changes to the dam operations.

"My well is so low that my pump can't draw water out of it right now, and my neighbour's wells, three of the four houses have gone dry,"AndreVryheidtold CBC News last June.

• Ghost Reservoir water levels frustrate residents
• Ghost Lake residents fear property values falling along with water levels

MikeWeinert, owner of Ghost Lake Marina and campground, said the low water also impacted recreation on the lake, which his business relies on.

"This year we'll survive but Icertainly can't do that for many more years,"he said last summer.