Brooks Heat and Power Ltd.

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Decision 23028-D01-2017 14.9-Megawatt Power Plant Time Extension October 24, 2017

Alberta Utilities Commission Decision 23028-D01-2017 14.9-Megawatt Power Plant Time Extension Proceeding 23028 Application 23028-A001 October 24, 2017 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

Alberta Utilities Commission Calgary, Alberta Decision 23028-D01-2017 14.9-Megawatt Power Plant Proceeding 23028 Time Extension Application 23028-A001 1 Decision summary 1. In this decision, the Alberta Utilities Commission must decide whether to approve an application from for a time extension in order to complete construction of the power plant. After consideration of the record of the proceeding, and for the reasons outlined in this decision, the Commission finds that approval of the project is in the public interest, having regard to the social, economic, and other effects of the project, including its effect on the environment. 2 Introduction 2., pursuant to Approval 22033-D02-2016, 1 has approval to construct and operate a 14.9-megawatt cogeneration power plant at the JBS Food Canada Inc. meat processing plant in the Brooks area. 3. Blue Earth Inc., on behalf of, filed an application with the AUC for approval to extend the construction completion date of the power plant from December 15, 2017 to December 31, 2018, pursuant to Section 19 of the Hydro and Electric Energy Act. This application was registered on October 14, 2017, as Application 23028-A001. 4. Due to the minor nature of the application, a notice of application was not issued and, therefore, a hearing was not required as the Commission considered that its decision or order would not directly and adversely affect the rights of a person pursuant to Section 9 of the Alberta Utilities Commission Act. 3 Discussion 5. The applicant submitted the project has experienced significant delays because JBS Food Canada Inc., the client, requested changes to the integration of the power plant s steam and electricity into the meat processing plant s process. As a result, major changes occurred to the engineering company retained to carry out the integration re-design, the management and corporate structure of, and the co-ordinated outage of the meat processing plant. 6. stated there are no physical alterations proposed to the power plant that deviate from what had been approved, and it remains as defined in the original application. 2 1 Power Plant Approval 22033-D02-2016, Proceeding 22033, Application 22033-A001, October 12, 2016. Decision 23028-D01-2017 (October 24, 2017) 1

14.9-Megawatt Power Plant Time Extension 7. submitted that a participant involvement program was not conducted for the time extension request because the project is proceeding in accordance with the original application and there are no changes to the project map for public notification. The original application received one objection; however, that objection was withdrawn. The time extension request does not affect the concerns raised in that objection. 8. contacted the Alberta Electric System Operator, FortisAlberta Inc., AltaLink Management Ltd. and JBS Food Canada Inc. to inform them of the construction delay. obtained approval for a change proposal from the Alberta Electric System Operator. 4 Findings 9. The Commission has reviewed the application and has determined that the technical, siting, emissions, environmental and noise aspects of the power plant continue to be met as there are no changes to the power plant. 10. While did not conduct a participant involvement program, it did notify the Alberta Electric System Operator, FortisAlberta Inc., AltaLink Management Ltd. and JBS Food Canada Inc. of the delay. With respect to local landowners and residents, the Commission considered the record from the previous approvals of the project. The majority of the lands in the area are owned by JBS Food Canada Inc. and the only residences within 2,000 metres of the project are owned by JBS Food Canada Inc. and rented by JBS Food Canada Inc. staff. The Commission is satisfied that stakeholders would not be affected by the later in-service date. 11. The Commission finds that has provided information respecting the need, nature and the duration of the requested time extension. Based upon the information provided, has demonstrated that the requested time extension is of a minor nature, but necessary in order to complete construction of the power plant. 12. Based on the foregoing, the Commission considers the application to be in the public interest in accordance with Section 17 of the Alberta Utilities Commission Act. The Commission grants approval of a time extension to December 31, 2018, to complete construction of the power plant. 2 Application 1610248, Proceeding 3028, January 20, 2014. 2 Decision 23028-D01-2017 (October 24, 2017)

14.9-Megawatt Power Plant Time Extension 5 Decision 13. Pursuant to sections 11 and 19 of the Hydro and Electric Energy Act, the Commission approves the application and grants the approval set out in Appendix 1 Power Plant Approval 23028-D02-2017 October 24, 2017 (Appendix 1 will be distributed separately). Dated on October 24, 2017. Alberta Utilities Commission (original signed by) Henry van Egteren Commission Member Decision 23028-D01-2017 (October 24, 2017) 3