Power – Facilities
In this decision, the AUC approved applications from Versorium Energy Ltd. (“VEL”) to construct, operate and connect a 5.0-megawatt natural gas-fired power plant, designated as the Kenilworth 1 Distributed Energy Resource (“Kenilworth 1”).
Application
VEL applied to construct and operate Kenilworth 1 and to connect it to the ATCO Electric Ltd. Electric distribution system (the “Project”). The Project includes two gas-fired reciprocating engines, with a capability of 5.0 megawatts (“MW”), a switchgear building, a generator step-up transformer, a low-pressure natural gas pipeline to connect to the County of Vermillion River’s natural gas system, and a distribution line to connect to ATCO Electric Ltd.’s distribution system.
With its application, VEL filed a noise impact assessment (“NIA”) participant involvement program, as required by Rule 012: Noise Control which raised no issues or concerns. VEL also submitted an air quality assessment report that indicated that the Alberta Ambient Air Quality Objective would be met, and an environmental evaluation report that concluded that potential and residual effects would not be significant.
VEL submitted that it expects the project to be in service by June 15, 2022, but requested a construction completion date of December 31, 2023, to account for any unforeseeable delay and to mitigate the possibility that an extension request is required.
The AUC did not issue a notice of applications, and no hearing was held, as the AUC considered that the decision and order would not directly and adversely affect the rights of a person pursuant to Section 9 of the Alberta Utilities Commission Act.
AUC Findings
The AUC determined that the requirements of Rule 007: Applications for Power Plants, Substations, Transmission Lines, Industrial System Designations and Hydro Developments were met. VEL engaged with landowners, residents, occupants, businesses, and individuals who may have a registered interest in land within 1,500 meters of the Project boundary as well as with the broader community and the Frog Lake First Nation. No objections to the project were received.
The AUC determined that the NIA met the requirements of Rule 012 and was satisfied that all sound levels would comply with Rule 012.
The AUC noted that while the Project will operate intermittently, on a peaking basis, the air dispersion modelling assumed continuous operation. The Project will increase ground-level concentrations of NO2, CO, and PM2.5, however, the increased values remain below the limits set by the Alberta Ambient Air Quality Objectives. VEL further submitted that the project would be compliant with federal Multi-Sector Air Pollutant Regulations emission standards for applicable substances. The AUC was satisfied that the modelling results are conservative in comparison to the expected actual emissions levels, and the predicted emissions do not breach Alberta Ambient Air Quality Objectives.
The AUC accepted the submission from VEL that the Project would not result in significant adverse effects on the environment. Alberta Environment and Parks (“AEP”) confirmed that an environmental impact assessment would not be required for the project.
The AUC found that all requirements for a connection order had been met. ATCO Electric Ltd. confirmed that it would allow the interconnection of Kenilworth 1, and the AUC had no outstanding concerns regarding the interconnection. The AUC approved the application to construct and operate the Kenilworth 1 Distributed Energy Resource, and to connect Kenilworth 1 to the ATCO Electric Ltd. Electric distribution system.
