Coal Plant Conversion – Dual Fuel
In this decision, the AUC considered an application from Heartland Generation Ltd. (“Heartland”), on behalf of Alberta Power (2000) Ltd. (“Alberta Power”) and TransAlta Cogeneration Ltd. (“TransAlta”) to alter the approval for the Sheerness Power Plant to allow for dual fuel operation (coal and natural gas) until January 31, 2023. The AUC approved the application.
Introduction and Discussion
Alberta Power, an affiliate of Heartland, and TransAlta are the owners of the Sheerness Power Plant, also designated as the Sheerness Generating Station, in the Hanna area. The power plant consists of units 1 and 2, both of which are 400-megawatt natural gas-fired generating units.
In Decision 24179-D01-2019, the AUC granted Alberta Power and TransAlta approval to alter the power plant by converting it from coal-fuelled to natural gas-fuelled. Approval 24179-D02-2019 stipulated January 31, 2023, as the construction completion date for the conversion of units 1 and 2 from coal-fuelled to natural gas-fuelled.
Heartland filed an application with the AUC for approval to alter the power plant approval to allow units 1 and 2 to operate as dual fuel coal and natural gas units until January 31, 2023.
Heartland indicated that it intends to convert units 1 and 2 from coal-fuelled to dual fuel (coal and natural gas) prior to obtaining a reliable natural gas supply. Heartland stated that units 1 and 2 cannot be classified as natural gas units until a reliable natural gas supply is obtained. Heartland submitted that the conversion would allow units 1 and 2 to operate on any combination of coal and natural gas so that the Sheerness Power Plant can provide reliable power and resiliency when planned or unplanned events cause natural gas supply to be disrupted.
Findings
The AUC determined that the application met the requirements of Section 11 of the Hydro and Electric Energy Regulation, and was in the public interest in accordance with Section 17 of the Alberta Utilities Commission Act. It approved the application, allowing units 1 and 2 to operate as dual fuel coal and natural gas units until January 31, 2023.
