City says groups opposing Saamis Solar should be denied

By Collin Gallant on December 10, 2024.

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The City of Medicine Hat has asked utility regulators to deny applications from two local groups wanting to argue against the purchase of the Saamis Solar Park.

The city says the terms of the transaction are the only issue before the Alberta Utility Commission, and concerns from the community are properly dealt with in other venues.

City power officials have said stages of the proposed 1,600-acre solar array could be folded into their capacity expansion plans to drive down production costs and help buffer existing gas-fired generators from increasing carbon regulation.

They are currently applying to have the ownership transferred from private sector developer DP Energy, after which a redrawn construction plan could see it proceed in phases once further approvals are obtained.

Four nearby land developers say the original permit hearings last July should have noted the city’s interest in the project.

As well, a citizens group, the Medicine Hat Utility Ratepayers Association, opposes the sale over a lack of consultation, suggesting details of how it would affect energy or tax rates have not been made public.

Through a letter from the law firm McCarthy Tetrault, the city argues that neither group qualifies as an intervenor in determining if the city is a qualified owner of a power plant.

As well, the financial plan will be dealt with by city council decision, and any alterations will still need future AUC approval.

“The application, should it be successful, is one of many regulatory steps – both municipal and before the AUC – required prior to the city reaching a final investment decision and having the requisite authority to commence construction of the project,” the letter reads.

Since the city doesn’t yet own the project – initial AUC approval is a condition of the sale – the city feels it is “premature” to disclose further information beyond what it claims is proper process.

“MHURA’s concerns related to the financial considerations for the city’s investment in the project are misdirected (to the AUC) because such matters will be considered by city council as the funding authority and rate regulator,” it continues.

Once the ownership issue is settled, the “city can engage in the work required to determine the financial investment required, and can consult with stakeholders in a meaningful way.”

The letter also argues that landowners who argued against a larger site footprint, because it might delay utility servicing to their parcels, had concerns raised at the original application heard last spring.

Submissions from both groups, through law firm McLennan Ross, claims the city’s interest in the park should have been raised during the original application by DP Energy.

The MHURA letter claims its members should be considered stakeholders since they are customers of the utility and taxpayers in the municipality.

A list of MHURA members attached to the application for AUC standing shows 38 names of members who MHURA argues would be affected as city residents and a further 23 city residents with addresses in the city’s northeast or northwest quadrants.

“MHURA is greatly concerned with the potential impact an approval of the Transfer Application will have on its members and others living in the city for years to come,” their statement reads.

DP Energy first announced the proposal to build and operate a smaller 200-megawatt facility mostly located on a fertilizer tailings pond north of 23rd Street in the city’s north end in 2019.

That was expanded in 2020 when land owner Viterra opened up discussions on other portions of its holdings, which extend north of the residential community of Terrace.

Two other DP projects on similar former tailings ponds in Calgary owned by Viterra have since been sold to ATCO and are now operating.

Editor’s Note — This version includes some information omitted in the original version. Specifically, it adds a figure of MHURA members which the group says live in proximity to the project. 

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