Facilities – Sale Offering
In this decision, the AUC granted the application from ATCO Electric Ltd. (“AE”) for approval of the sale bids received for asset packages 2, 3, 4, 5, and 10, which comprise isolated generating units located at the Palisades Power Plant. Consistent with the AUC’s determinations in Decision 26078-D01-2021, the isolated generating units were bundled and offered for sale by ATCO Electric in 11 separate asset packages.
Introduction and Background
On September 18, 2019, the AUC approved the Palisades Power Plant sale offering as filed in Decision 24598-D01-2019. It directed AE to proceed with the sale offering in accordance with the approved sale proposal.
AE thereafter filed an application under s. 8 of the Alberta Utilities Commission Act and s. 18 of the Isolated Generating Units and Customer Choice Regulation (“IGUCCR”) requesting approval to amend the sale offering approved in Decision 24598-D01-2019. The AUC approved the application and directed AE to proceed with the sale offering according to Sale Process B, which was one of two alternative sales processes proposed by AE in the application. Under Process B, AE would dismantle and bundle the isolated generating units into 11 asset packages. AE would sell each asset package separately, and bidders would be permitted to submit separate bids on one or more of the packages.
In this proceeding, AE applied for approval of the sale bids for five of the 11 asset packages under s. 21 of the IGUCCR.
AUC Findings and Decision
Under s. 21(1)(b) of the IGUCCR, if more than one bid is received in respect of an isolated generating unit referred to in the sale offer, the AUC must accept the highest bid and, by order, approve the sale of that isolated generating unit. If only one bid is received, the AUC is required to accept the bid and, by order, approve the sale of that isolated generating unit.
AE received single bids for the following asset packages:
A bid in the amount of $27,320 from Surplus Diesel Generators Ltd. for asset package 4;
A bid in the amount of $100,000 from Don Markowski for asset package 5; and
A bid in the amount of $5,000 from Don Markowski for asset package 10.
AE received multiple bids for the following asset packages:
Bids in the amount of $50,000 and $11,200 from Don Markowski and Surplus Diesel Generators Ltd., respectively, for asset package 2; and
Bids in the amount of $101,000 and $100,000 from Cogent Turbine Solutions Ltd. and Don Markowski, respectively, for asset package 3.
The AUC approved the highest bids in accordance with s. 21 of the IGUCCR and directed AE to complete the sale of Palisades Power Plant asset packages 2, 3, 4, 5, and 10 as expeditiously as possible.