Power capacity expansion necessary despite uncertainty of major buyer
By COLLIN GALLANT on April 23, 2021.
cgallant@medicinehatnews.com@CollinGallant Power plant expansion is still required in Medicine Hat even though the city’s second largest power contract is still in limbo, officials said Thursday as construction was officially kicked off on the new Unit 17 power plant. A virtual ceremony saw planners turn sod on the $65-million project that would add 44-megawatts of generating capacity and boost total output by about 15 per cent, when completed in early 2022. Design work began two years ago as the department was tasked to balance power needs to meet internal demand as the Aurora Cannabis greenhouse was set to come on line. That project is stalled and the building up for sale, but officials say the need for backup capacity and high interest from new potential power customers, makes moving forward the right decision. “We believe the need is there,” said Brad Maynes, the city utility department’s managing director, noting the Aurora contract is still “unresolved.” “But, we’re looking at demand over the last two or three years, and the amount of requests we’ve had for additional power.” Unit 16, which was built in 2018 for $55 million, was heralded as a large reason the city lured major power customer Hut 8 data-processing and Aurora in the first place. But those huge contracts also required examining supply scenarios for any significant breakdown in its generators. Last year, city council approved the financing for the plant that was permitted by utility regulators one year earlier. “New businesses, new greenhouse and expanding residential area are all positive signs that we’re doing things right and working collectively on a bright future,” said Mayor Ted Clugston in a video message that accompanied the ceremony. He thanked members of council, saying the decision showed optimism. Power plant manager Brian Strandlund thanked his deign and procurement team as well as outside firms that have worked on the project, such as Burns McDonald on design services, Spark Power for designed substation, and major equipment supplier General Electric. GVN structures, of Redcliff, is performing large civil and site work. Progress can be viewed on a webcam that will be broadcast on the city’s website. 15-14
First they were selling the Power Plant, then they weren’t, now they are investing $66 million in it – with no firm customer for the increased capacity? Seems like rolling the dice with taxpayer money. Also, it should be pointed out that Brad Maynes was the mastermind of the drilling of the infamous Denzil Oil Caper (which quickly became the Denzil Duster-Dud) – so his power prognostications should be taken with a big grain of salt – or several thousand BBL of saltwater.