Harvest Operations Corp.

Transcription

1 Decision Six-MW Power Plant Exemption July 21, 2014

2 The Alberta Utilities Commission Decision : Six-MW Power Plant Exemption Application No Proceeding No July 21, 2014 Published by The Alberta Utilities Commission Fifth Avenue Place, Fourth Floor, 425 First Street S.W. Calgary, Alberta T2P 3L8 Telephone: Fax: Website:

3 The Alberta Utilities Commission Calgary, Alberta Decision Application No Six-MW Power Plant Exemption Proceeding No Introduction 1. (Harvest), in accordance with Section 13 of the Hydro and Electric Energy Act, filed an application with the Alberta Utilities Commission (AUC or the Commission) for approval of exemption from Section 11 of the Hydro and Electric Energy Act regarding the construction and operation of a six-megawatt (MW) gas-fired power plant at its Bilbo sweet gas processing plant (Bilbo gas plant), located approximately 60 kilometres southwest of Grande Prairie, Alberta. This application was registered on March 30, 2014, as Application No The Commission issued three rounds of information requests to Harvest on April 17, 2014, May 23, 2014 and June 16, Harvest responded to the information requests on April 25, 2014, May 27, 2014, and June 17, 2014, respectively. 3. The Commission issued a notice of application on May 30, 2014, with a deadline of June 20, 2014, to file submissions to the AUC. The Commission reissued the notice to a company with the updated mailing address on June 23, No submissions were received. 2 Discussion 4. Harvest stated that it is planning a green field development project in the Bilbo area of the Deep Basin and the development would involve the drilling of approximately 120 gas wells and construction of associated well site facilities and pipelines. These gas wells are expected to supply raw natural gas to the Bilbo gas plant. Harvest submitted that the power plant is proposed at the Bilbo gas plant to generate electric energy for the facilities. 5. Harvest stated that the proposed power plant would consist of a single Taurus S series Solar Gas Turbine generating unit, with a total capability of six MW. The power plant would be located within the boundary of the Bilbo gas plant, in the southwest quarter of Section 25, Township 65, Range 7, west of the Sixth Meridian. 6. Harvest submitted that the power plant was proposed to generate electric energy solely for Harvest s own use at the Bilbo gas plant and would not be connected to the Alberta Interconnected Electric System. 7. Harvest conducted a noise impact assessment for the power plant project. The noise impact assessment indicated that the predicted noise levels would be in compliance with AUC Rule 012: Noise Control (AUC Rule 012). AUC Decision (July 21, 2014) 1

4 Six-MW Power Plant Exemption 8. Harvest submitted that air dispersion modelling was completed for the proposed power plant, indicating that the project would meet the Alberta Ambient Air Quality Objectives for the ground level concentrations of pollutants. 9. Harvest stated that water would not be required for the operation of the proposed power plant, and that no industrial wastewater would be released as a result of the power plant operation. 10. Harvest submitted that it conducted a participant involvement program to notify all interested parties, including local jurisdictions, within 2,000 metres of the project and that there were no concerns expressed by any notified parties. Harvest stated that there are no occupants or residents within 2,000 meters of the proposed power plant. 3 Findings 11. The Commission finds that the application meets the information requirements stipulated in AUC Rule 007: Power Plants, Substations, Transmission Lines, Industrial System Designations and Hydro Developments. 12. The Commission also finds that the noise impact assessment submitted by Harvest fulfills the requirements of AUC Rule 012 and the predicted noise levels will not exceed the permissible sound level. 13. The Commission is satisfied that the proposed power plant will have minimal environmental impact because it will be located within the boundary of the Bilbo gas plant. The air emissions from the project are expected to be compliant with the Alberta Ambient Air Quality Objectives. 14. The Commission accepts that a participant involvement program was conducted by Harvest and there are no outstanding public or industry objections or concerns. The Commission considers that its decision would not directly and adversely affect the rights of a person, and therefore, did not require a hearing pursuant to Section 9 of the Alberta Utilities Commission Act. 15. Based on the foregoing, the Commission considers the project to be in the public interest in accordance with Section 17 of the Alberta Utilities Commission Act. 2 AUC Decision (July 21, 2014)

5 Six-MW Power Plant Exemption 4 Decision 16. Pursuant to Section 13 of the Hydro and Electric Energy Act, the Commission approves the application and grants Harvest an exemption from Section 11 of the Hydro and Electric Energy Act, conditional upon the following terms and conditions: a) The power plant shall be located in the southwest quarter of Section 25, Township 65, Range 7, west of the Sixth Meridian, as further described in the application. b) The power plant shall consist of a six-mw natural gas-fired generator, as further described in the application. c) Harvest will not export energy from the power plant to the Alberta Interconnected Electric System, with energy generated being solely for Harvest s own use. Should the proposed power plant be operating in synchronism with the electric system of the local utility company, Harvest shall apply for a connection order from the AUC, pursuant to Section 18 of the Hydro and Electric Energy Act prior to connecting the power plant. d) Harvest must meet the noise requirements of AUC Rule 012. e) This exemption is not transferable unless approved by the Commission. 17. The Commission may cancel or suspend this approval, in whole or in part, in accordance with Section 41 of the Hydro and Electric Energy Act, or may review this approval, in whole or in part upon its own motion, or upon an application by an interested party, in accordance with Section 17 of the Alberta Utilities Commission Act. Dated on July 21, The Alberta Utilities Commission (original signed by) Henry van Egteren Commission Member AUC Decision (July 21, 2014) 3