Saamis Solar purchase opponents except more details now

By Collin Gallant on January 9, 2025.

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A group opposing the city’s plan to purchase a major solar energy proposal says now that it is no longer involved in a regulatory challenge of the transaction, more transparency and information should be forthcoming.

The Medicine Hat Utility Ratepayers Association applied but was denied standing with the Alberta Utilities Commission as it considers a transfer of ownership application for Saamis Solar Park.

The construction of a huge 1,600-array solar array on barren land in Medicine Hat’s north end, was approved by the AUC last summer, and is the subject of a conditional sale from private-sector developer DP Energy to the City of Medicine Hat.

The MHURA argued that since the sale would have large implications for their city’s finances, they should be allowed to question administrators before a decision was rendered.

On Tuesday, the AUC ruled that those questions about costs and potential effect on city finances were outside of its jurisdiction as it determines the ownership question.

Now, MHURA head Sou Boss says the decision should allow city administrators to speak more freely now that the AUC question is settled and no hearing is set.

“We knew it was a slim chance,” said Boss on Wednesday. “There’s no party that will have intervenor status, and the AUC is saying it’s council’s decision. We get that too, but this is a monumental decision, which we feel should be given to the public to decide.

“We’re still hoping to persuade council to delay a decision or just halt it. If they do the economics on it, they’ll see it’s not a money maker.”

City officials have deferred comment on the plan until the AUC determines the sale issue and several others, but have stated that a full financial plan would be presented if construction of an initial 75-megawatt phase of the 325-megawatt project proceeded to council for a decision.

As of yet, only $7 million has been allocated for the purchase.

Council members and administrators have said the project has the potential to strengthen the city’s power production division as it manages higher costs and regulatory pressure to reduce carbon emissions.

MHURA says it has opinions from industry analysts that the project’s a financial risk to taxpayers.

City energy committee chair, Coun. Darren Hirsch, has said the purchase would provide an “option” for the utility, and regardless, have value as an approved power facility application.

Energy division top administrator Rochelle Pancoast says that staging construction in small blocks is a potential “no regret” decision. She told council in a net-zero strategy overview this fall that the technology is proven, the green energy sector is mature in Alberta and hoe the city can manage peak supply in summer when solar is most productive.

The city has estimated that a 75-megawatt phase would also reduce the cost of maintaining gas-fired generation facilities by $7 million per year in 2028, as well as lower the cost power to the mix.

Industry standards would place stage one construction costs near $100 million.

As well, considering the land mass involved and required for solar power production, losing control of the Saamis project would in essence limit the city’s ability to build solar at all inside city limits for its own use.

The facility would be sited partially on a former fertilizer plant tailings pond that would be leased from Viterra, as well as vacant land extending eastward past the extension of Division Avenue.

The AUC also ruled against providing standing to a group of land developers with interests adjacent to the Saamis site. They argued that a proposal to stage development under city ownership would delay water and sewer access to their lands, potentially delaying subdivisions there for decades.

Without any party acting as an intervenor or opposing the project, the AUC will not hold a hearing and will make a determination on the merits of the application by early February, it stated.

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