Facilities – Industrial System Designation
Application
Tidewater Midstream and Infrastructure Ltd. (“Tidewater”) applied for approval to construct and operate the 16.5-megawatt (“MW”) natural gas-fired Brazeau Cogeneration Plant (the “Power Plant”). Tidewater also applied for an industrial system designation (“ISD”) that encompasses the electric facilities at the existing Brazeau River Complex. The Power Plant will be constructed within the existing fenceline of the Brazeau River Complex, near Drayton Valley.
Decision
The AUC approved the applications from Tidewater.
Pertinent Issues
Power Plant Approval
The Power Plant consists of one natural gas-fired turbine generator and a heat recovery steam generator. It will be supplied with natural gas from the gas plant and would generate approximately 128,000 MWh of electricity annually to supply the on-site load of 71,000 MWh and export approximately 57,000 MWh to the Alberta Interconnected Electric System.
The AUC reviewed the evidence submitted in support of the Power Plant application regarding the participant involvement program, noise impacts, air dispersion models for nitrogen dioxide, environmental assessment and Aboriginal consultation and concluded that the project is in the public interest in accordance with Section 17 of the Alberta Utilities Commission Act.
ISD Determination
The AUC considered the ISD application in accordance with the principles and criteria set out in section 4 of the Hydro and Electric Energy Act and found that Tidewater’s proposal meets the principles and criteria for an ISD.
The AUC observed that it would be impractical to precisely scale on-site generation for a specific thermal or electrical output given the need for operational variability having regard for reasonable expansion or growth of the industrial operations. Further, the AUC understood that the electric energy generated exceeding the needs of Tidewater is necessary to produce enough heat and steam to meet the requirements of the Power Plant. As such, the AUC considered that the Power Plant was reasonably scaled to meet the electricity and thermal needs of the gas plant.
