Sale Offering – Power Plant
In this decision, the AUC considered an application (the “Application”) by ATCO Electric Ltd. (“ATCO Electric”) requesting approval of the sale offering for the Palisades Power Plant, as required by section 18 of the Isolated Generating Units and Customer Choice Regulation (”IGUCCR”). The AUC approved the Application as filed.
In Decision 24183-D03-2019, ATCO Electric was authorized to discontinue operations and to decommission and salvage the Palisades Power Plant. The AUC noted that ATCO Electric is currently in the process of decommissioning the Palisades Power Plant, approved in Decision 24183-D03-2019, and submitted the present Application as part of the decommissioning.
Section 26 of the IGUCCR states that where an isolated generating unit is no longer required to provide electric energy as a result of an isolated community or industrial area requiring less electric energy or being connected to the interconnected electric system, the owner of the generating unit must decide whether to sell the generating unit. In cases where the owner decides to sell the generating unit, the sale must be conducted in accordance with Part 2 of the IGUCCR.
The AUC further noted that section 18(1) of the IGUCCR requires that before advertising a sale offering, the owner of the generating unit must submit to the AUC the sale offering and a proposal as to how the sale offering complies with section 17 of the IGUCCR. Section 18(2) of the IGUCCR also requires that, if on reviewing the proposal, the AUC is satisfied that section 17 will be complied with, the owner must proceed with the sale offering in accordance with the proposal.
The AUC was satisfied that the sale offering was widely publicized and conducted in a way that kept the offering attractive and prevented discouragement of potential bids in response to the offering. Thereby requirements set out in section 17 of the IGUCCR were met. The AUC was also content that ATCO Electric submitted the sale offering and a proposal describing how section 17 of the IGUCCR was abided by before the offering was advertised. The AUC further noted, that no objections were raised to the proposed sale offering and its method.
The AUC was satisfied that the offering and the proposal met all applicable requirements. The sale offering, and proposal was approved as filed.