A follow up to our previous blog post, "Government of Alberta Orders a Pause on Power Plant Approvals" on August 4, 2023.

As discussed in our previous blog post, the Government of Alberta issued an order-in-council to pause the approval of new power plant applications by the Alberta Utilities Commission (the "AUC"), to address the "historically high volume" of new renewable power plant applications. The pause period is set to expire on February 29th, 2024.

Over the past five months, the AUC has provided further clarifications for the processing of new power plant applications submitted during and prior to the pause and started an inquiry into the key considerations highlighted in the Government of Alberta's order-in-council. This article provides a brief overview of the updates released by the AUC since the Alberta's announcement to pause power plant approvals.

Update on Approval of New Power Plant Applications during the Pause (August 22, 2023)

On August 22, 2023, the AUC announced that during the pause they will continue to process new applications for renewable power plants up to the final approval stage. After February 29, 2024, the AUC will issue their final decision report and any corresponding approval, if applicable. This decision was made upon consideration of feedback received from nearly 600 stakeholders following the Government of Alberta's pause announcement on August 3, 2023. On October 31, 2023, the AUC clarified that during the pause period, the AUC would continue to issue decisions on amendment applications, letter of enquiry submissions, time extensions and approval transfers for previously approved projects.

Interim Information Requirements (September 6, 2023)

On September 6, 2023, the AUC issued Bulletin 2023-05: Interim Rule 007 Information Requirements setting out Interim Information Requirements applicable to any new power plant applications filed after August 3, 2023. These requirements are in addition to the regular power plant application requirements set out in Rule 007: Application for Power Plants, Substations, Transmission Lines, Industrial System Designations, Hydro Developments and Gas Utility Pipelines. For existing applications filed prior to August 3, 2023, the applicants may be required to respond to the new requirements as part of the review of their application. A brief overview of the interim requirements is as follows:

Agricultural Land

  1. A description of the agricultural capability of soils within the project footprint and a table showing the amount of area for each Land Suitability Rating System class impacted by the project.
  2. A report of all potential impacts (and corresponding mitigation commitments) to:
    • Soil quality
    • Soil quantity
    • Hydrology
  3. A description of all earthworks (i.e. grading and stripping) planned for the project.
  4. A description of the potential for co-locating agricultural activities into the project design.
  5. A list of the qualifications of the agrologist who prepared the responses to the above information.

Land Use Planning

  1. Whether the proposed power plant complies with applicable municipal by-laws or land use orders, or any other municipal planning documents.
  2. Identification of any project features that do not comply with applicable municipal planning documents and justification for any non-compliance.
  3. A description of how the applicant engaged with the municipality.

Viewscapes

  1. Provide a list and description of any pristine viewscapes (i.e. national or provincial parks, culturally significant areas, and areas used for recreation and tourism) that may be affected by the project's construction and operation and all strategies to minimize this impact.

Reclamation Security

  1. A description of the reclamation security program for the project.

A full and detailed description of the interim requirements is available in Bulletin 2023-05. Interested parties are invited to contact our firm's Energy Group for more information regarding submission of new or existing power plant applications under the new requirements.

AUC Inquiry into the Ongoing Economic, Orderly and Efficient Development of Electricity Generation in Alberta (September 11, 2023)

On September 11, 2023, the AUC issued Bulletin 2023-06, announcing it would hold an inquiry, to be separated into two modules (A & B), to explore the key issues identified in the Government of Alberta's August 3, 2023, order-in-council.

Module A

The Module A inquiry explored land impact issues and the role of municipal governments in the development of renewable power plant projects. Specifically:

  1. Considerations on development of power plants on specific types or classes of agricultural or environmental land.
  2. Considerations of the impact of power plant development on Alberta's pristine viewscapes.
  3. Considerations of implementing mandatory reclamation security requirements for power plants.
  4. Considerations for development of power plants on lands held by the Crown in Right of Alberta.

Interested parties were invited to participate in the process and provide submissions in writing and orally at an in-person session. The in-person session was held over several days and concluded on December15,2023. For more details on submissions and participants, see AUC Proceeding 28501. The information gathering portion of Module A is now complete and the AUC intends to deliver their report for Module A to the Minister of Affordability and Utilities by the end of January 2024.

Module B

The Module B inquiry will explore the growing renewable energy industry's impact on both generation supply mix and electricity system reliability. The AUC established the following schedule for Module B:

  1. The AUC has commissioned two expert reports (selected experts: London Economics International LLC and Longview Communications & Public Affairs) that will be published on February 7, 2024.
  2. A meeting will be held on February 14, 2024, for the experts to answer any questions on their report.
  3. Interested parties are encouraged to provide feedback to the expert reports by participating in Proceeding 28542, by February 29, 2024.
  4. The AUC aims to deliver the report of Module B to the Minister of Affordability and Utilities no later than March 29, 2024, as directed by the Government of Alberta's order-in-council.

No other information has been announced regarding the pause or Module B at this time, but the Energy Team at Procido continues to follow this inquiry process. If you have any questions relating to the implications of the pause, the additional interim requirements, the Module A inquiry, or participation in the Module B inquiry, please contact a member of our Energy Team.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.