Decision 2014-374 Genalta Construction GP Ltd. Muskwa Gas to Power Project December 23, 2014 The Alberta Utilities Commission Decision 2014-374: Genalta Construction GP Ltd. Muskwa Gas to Power Project Application No. 1610979 Proceeding No. 3506 December 23, 2014 Published by The Alberta Utilities Commission Fifth Avenue Place, Fourth Floor, 425 First Street S.W. Calgary, Alberta T2P 3L8 Telephone: 403-592-8845 Fax: 403-592-4406 Website: www.auc.ab.ca The Alberta Utilities Commission Calgary, Alberta Genalta Construction GP Ltd. Muskwa Gas to Power Project 1 Decision 2014-374 Application No. 1610979 Proceeding No. 3506 Introduction 1. Genalta Construction GP Ltd. (Genalta), a division of Genalta Power Inc., filed an application with the Alberta Utilities Commission (AUC or the Commission) for approval to construct and operate a 20-megawatt (MW) power plant in the Wabasca area, pursuant to Section 11 of the Hydro and Electric Energy Act. This application was registered on November 3, 2014, as Application No. 1610979 and was assigned Proceeding No. 3506. 2. The Commission issued an information request to Genalta on November 20, 2014. Genalta responded to the information request on December 5, 2014. 3. The Commission issued a notice of application on November 20, 2014, with a deadline of December 10, 2014, to file submissions to the AUC. No submissions were received. 2 Discussion 4. Genalta’s proposed power plant would consist of six, 3.3-MW reciprocating engine generating units and one 35-megavolt-ampere, 13.8/240-kilovolt (kV), step-up transformer. The power plant would be located within the existing Husky Oil Operations Ltd. Muskwa River gas plant (the Husky facility) at LSD 2, Section 33, Township 83, Range 25, west of the Fourth Meridian, in the Wabasca region of northern Alberta. The power plant would be fuelled by solution gas available at the Husky facility that is currently uneconomic to produce. The connection of the plant to the Alberta Interconnected Electric System will be the subject of a future application. 5. Genalta submitted that the project would have no adverse environmental effects to soil, terrain, wetlands, wildlife and groundwater because the power plant would be located in an industrial area within an existing gas plant site. Genalta also submitted that the power plant would be compliant with the regulatory requirements for air quality. 6. Genalta provided a noise impact assessment (NIA) for the proposed power plant. The NIA indicates that once the proposed project is operational, much of the noise-producing equipment at the adjacent Husky facility would be decommissioned. Other than the Husky facility, there are no other significant energy-related noise sources within the project area. Genalta also stated that there are no residential receptor locations within five kilometres. Therefore, compliance was assessed at 1,500 metres from the proposed project, in accordance with AUC Rule 012: Noise Control (AUC Rule 012), where the permissible sound levels (PSLs) were determined to be 40 dBA Leq nighttime and 50 dBA Leq daytime. The cumulative sound levels associated with the proposed project were predicted to be 37.5 dBA Leq nighttime and AUC Decision 2014-374 (December 23, 2014) • 1 Muskwa Gas to Power Project Genalta Construction GP Ltd. 45.3 dBA Leq daytime, which are below the PSL requirements. Therefore, the proposed project is predicted to be in compliance with the PSL requirements of AUC Rule 012. 7. Genalta conducted a participant involvement program to notify occupants, residents and landowners within 2,000 metres of the project as well as other potentially affected parties. These included two trappers, one First Nation, the County of Opportunity No. 17 and five leaseholders. Genalta indicated that no parties expressed concerns with the project. 8. Genalta obtained a new Department Miscellaneous Lease from Alberta Environment and Sustainable Resource Development (ESRD) for the project site. ESRD has not expressed any concerns regarding the effects on the woodland caribou or other sensitive species from the proposed power plant because the location of the power plant would be on a previously developed site and within 100 metres of an existing all weather access road. 9. Genalta also obtained Historical Resources Act clearance from Alberta Culture as well as the approval from ATCO Electric Ltd., under Section 101 of the Electric Utilities Act, to enter into a commercial arrangement directly with the Alberta Electric SystemOperator for Supply Transmission Service. Genalta also provided written confirmation of non-objection from the County of Opportunity No. 17. 3 Findings 10. The Commission finds that the application meets the information requirements stipulated in AUC Rule 007: Applications for Power Plants, Substations, Transmission Lines, Industrial System Designations and Hydro Developments. 11. The Commission finds that the noise impact assessment submitted by Genalta fulfills the requirements of AUC Rule 012: Noise Control and the predicted noise levels emitted from the power plant will not exceed the permissible sound level. 12. The Commission is satisfied that the proposed power plant will have minimal environmental effects because it will be located within the boundary of the Husky Muskwa River gas plant. The air emissions from the project are expected to be compliant with the Alberta Ambient Air Quality Objectives. 13. The Commission accepts that a participant involvement program has been conducted and there are no outstanding public or industry objections or concerns. The Commission considers that its decision would not directly and adversely affect the rights of a person and, therefore, did not require a hearing pursuant to Section 9 of the Alberta Utilities Commission Act. 14. Based on the foregoing, the Commission considers the project to be in the public interest in accordance with Section 17 of the Alberta Utilities Commission Act. 2 • AUC Decision 2014-374 (December 23, 2014) Muskwa Gas to Power Project 4 Genalta Construction GP Ltd. Decision 15. Pursuant to Section 11 of the Hydro and Electric Energy Act, the Commission approves the application and grants Genalta the approval set out in Appendix 1 – Power Plant Approval No. U2014-536 – December 23, 2014 (Appendix 1 will be distributed separately). Dated on December 23, 2014. The Alberta Utilities Commission (original signed by) Mark Kolesar Vice-Chair AUC Decision 2014-374 (December 23, 2014) • 3