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Versorium Energy Ltd. Gillespie 1 Distributed Energy Resource Power Plant, AUC Decision 27057-D01-2022

Link to Decision Summarized

Facilities – Distributed Energy

In this decision, the AUC approved applications from Versorium Energy Ltd. (“Versorium”) to construct and operate the 5.044-megawatt (“MW”) natural gas-fired Gillespie 1 Distributed Energy Resource Power Plant (the “Power Plant”) and to connect the Power Plant to the FortisAlberta Inc. electric distribution system (the “Project”).

Applications

The Project will be located on private, cultivated land, approximately 14.5 kilometers northwest of Provost. The Project will consist of two gas-fired reciprocating engines, with a nominal capability of 5.044 MW, a switchgear building, a generator step-up transformer, a low-pressure natural gas pipeline to connect to the Natural Gas Co-op 52 Ltd. natural gas system, and a distribution line to connect to the FortisAlberta Inc. electric distribution system.

The applications from Versorium included a participant involvement program, noise impact assessment, air quality assessment report, environmental evaluation report and a letter from FortisAlberta Inc. confirming that they are prepared to allow the interconnection. The submitted reports and evaluations indicated that concerns or issues had been addressed or mitigated.

Construction is expected to complete in October 2022. Versorium expects the Project to be in service by October 31, 2022. To account for unforeseeable delay and mitigate the possibility of requiring an extension, Versorium requested a construction completion date of December 31, 2023.

AUC Findings

The AUC determined that the applications met the information requirements set out in Rule 007: Applications for Power Plants, Substations, Transmission Lines, Industrial System Designations, Hydro Developments and Gas Utility Pipelines.

The AUC was satisfied that the applications indicated that the Project would abide by Rule 012: Noise Control and meet the values of the Alberta Ambient Air Quality Objectives and Multi-Sector Air Pollutant Regulations. The AUC further accepted the submissions that the Project will not result in significant adverse effects on the environment.

Versorium submitted an Environmental Protection and Enhancement Act application to Alberta Environment and Parks on December 17, 2021, but had not received feedback on the application by the time of this decision.

Decision

The AUC determined that approval of the applications is in the public interest, as required by Section 17 of the Alberta Utilities Commission Act.

Pursuant to Section 11 of the Hydro and Electric Energy Act, the AUC approved the application for construction and operation of the Power Plant. The application to connect the Power Plant to the FortisAlberta Inc. electric distribution system was approved pursuant to Section 18 of the Hydro and Electric Energy Act.

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