Facilities – Salvage
In this decision, the AUC approved the application from ATCO Electric Ltd. (“AE”) to decommission and salvage the Chipewyan Lake Power Plant (the “Power Plant”). The AUC denied the request from AE to remove the isolated generating units from the schedule of generating units in the Isolated Generating Units and Customer Choice Regulation (“IGUCCR”).
Application
AE is the owner of the Power Plant located northwest of Chipewyan Lake. The Power Plant contains three diesel generating units and has a generating capability of 581 kilowatts. AE filed the application for approval to decommission and salvage the Power Plant pursuant to s. 21 of the Hydro and Electric Energy Act (“HEEA”). In addition, under s. 27 of the IGUCCR, AE requested to remove the three generating units from Part B of the schedule of generating units.
AUC Findings
The AUC reviewed the application and determined that the information requirements specified in Rule 007: Applications for Power Plants, Substations, Transmission Lines, Industrial System Designations, Hydro Developments and Gas Utility Pipelines were met. The AUC also determined that AE’s participant involvement program satisfied the requirements of Rule 007.
The AUC was satisfied that the environmental impacts of the decommission and salvage of the Power Plant will result in remediation and reclamation of the Power Plant site to an acceptable degree and that the temporary project noise will comply with Rule 012.
The AUC approved the decommissioning and salvage of the Power Plant pursuant to s. 21 of the HEEA without making any determination regarding the regulatory treatment of the costs for the removal, retiring, or abandonment of the assets, including any associated rate implications. The AUC found that the Power Plant is no longer needed because the Chipewyan Lake community is now connected to the Alberta Interconnected Electric System. The AUC determined that approval of the application is in the public interest having regard to the social, economic, environmental, and other effects of the Power Plant.
The AUC denied the request to strike the units from any part of the schedule of generating units as it determined that this request was premature. AE has not decided about the sale of the units at the time of the application. If AE decides not to sell, two of the units would be deemed to be struck from Part A of the schedule on the date that decision is made, in accordance with s. 26(4) of the IGUCCR. If AE decides to sell the units, the units would be struck from the schedule in the future, in accordance with ss. 20(1)(c) or 22(2) of the regulation.
