Medicine Hat City Council approved first reading of a new bylaw that if approved would result in borrowing $66 million for a new electric generation unit ( Tiffany Goodwein)

By Tiffany Goodwein

Council approves first reading of electric generation unit

Jul 20, 2020 | 10:46 PM

MEDICINE HAT, AB – Medicine Hat City Council voted to support first reading of a new bylaw that if approved, would result in the city borrowing $66 million for a new 44 megawatt Electric Generation unit, unit 17.

According to city staff, the city has a need to obtain additional electric generation to provide reliable supply and to provide back up power if the city loses its largest generation unit.

“One of the requirements is to maintain enough power that we may be able to serve our residents barring the loss of our largest generator. So under that formula N-1 , presently last year’s peak, about 250 megawatts, if we lost our generator, we would not be able to supply our load, now of course we can get from the grid but under exemptions, so that’s the logic behind it,” Mayor Ted Clugston said.

Clugston said greater corporate interest could follow, if the city approves the new unit and is able to supply the power that is needed.

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“ We are courting of course more industry again, even during COVID-19 and power brings industry frankly. Hut 8 is a perfect example, it’s funny everyone thought Hut 8 was a fly-by night company and we were getting involved in a pyramid scheme with cryptocurrency, and Aurora was going to be the big power user and it has turned out for now that Hut 8 has been a very stable customer, so who knows what we may find coming in the future for this new power,” Clugston said.

Council is expected to vote on second and third reading at their next council meeting slated for August 17.