SUBSCRIBE & WIN! Sign up for the Daily CHAT News Today Newsletter for a chance to win a $75 South Country Co-op gift card!

The Medicine Hat Utilities Ratepayer Association is calling for a referendum on the city's purchase of the Saamis Solar Park project. Jlhope/Dreamstime.com
ENERGY

Medicine Hat ratepayer’s group requests ‘intervenor status’ in city’s solar farm buy

Nov 7, 2024 | 10:00 AM

The Medicine Hat Utilities Ratepayer Association has applied to receive formal “intervenor status” in the city’s application to purchase the rights to a solar field project, with the group calling for transparency and public consultation.

If the utility ratepayer advocacy group, known as MHURA, is approved as an intervenor, they will be able to present a case during an Alberta Utilities Commission public hearing that includes the ability to call witnesses.

The city announced it filed an application with the utilities commission to purchase the Saamis Solar Farm project in August that, if successful, would give Medicine Hat the permission to purchase the initiative.

The total cost of buying the solar farm will come before council and the public after a ruling is made by the utilities commission, according to councillors who have spoken to CHAT News. The final number is expected to be in the millions.

That ruling is expected before the end of the year.

Staff say the purchase will allow the city to scale up the project gradually in a way where it can meet the needs of Medicine Hat and green energy requests from commercial customers.

A successful acquisition would diversify Medicine Hat’s largely thermal and natural gas-fueled energy portfolio that will allow the city to offset increasing carbon levy costs and prepare for a coming energy transition to cleaner sources, staff say.

Sounantha Boss, president of the ratepayer association, said Tuesday that MHURA is standing up for residents.

“We are demanding transparency and accountability,” Boss told CHAT News.

MHURA also asked the Saamis Solar project be put to a plebiscite — otherwise known as a referendum of all residents — in its Tuesday news release.

“The city has not taken the initiative to consult with the taxpayers on such a monumental financial investment such as this,” Boss said, adding that MHURA wants to see the costs associated with the acquisition.

MHURA is expected to give more details on its plans during a town hall taking place 7 p.m. on Thursday at the Medicine Hat Exhibition and Stampede’s Higdon Hall.

Rochelle Pancoast, the city’s managing director of energy, land and the environment, said in August that cash for the initial purchase from DP Energy Group has already been approved by council through its business development initiatives funding.

Pancoast said the city expects to hear back on if it can buy the project by the end of 2024.

Boss said her group is not attacking solar farms in general.

“If it works, that’s great,” she said.

Premier Danielle Smith weighed in on the project in October.

The Brooks-Medicine Hat MLA said the best approach to solar energy is placing panels on rooftops when she was asked for her take on the city’s approach.

“My personal view is that the best opportunity that we have for solar is going to be rooftop solar,” Smith said during her visit to the city, without specifically criticizing Medicine Hat’s effort.

Those who produce electricity from the panels are able to sell it back to the grid to create “reliability and off-grid opportunities for the business owner,” she added.

City officials say they are pushing for the purchase because it was a unique opportunity.

DP Energy, the Ireland-based company behind the project, says the solar farm will create enough energy to power 250,000 homes when it’s complete.

It would be largest urban solar initiative in North America, according to DP Energy. About half of the 1,600-acre project site is made up of a contaminated brownfield site in the city’s north end.

City staff say that would build up the solar farm step-by-step as it meets the city’s needs.

It could start with building enough capacity to produce 75 megawatts instead of the full 325 megawatts for $600 million that was proposed by DP Energy. A new plan would require council approval if the city buys the project.

Pancoast during a budget meeting on Oct. 31 said the project was an example of a “no regret” strategic investment the city can build at a reasonable pace if it acquires the rights to purchase it.

In September, Pancoast said Medicine Hat’s gas and electricity revenues are headed towards a decade-long decline but insisted Thursday the “sky is not falling” as there’s room to prepare for a looming transition away from non-renewables.

The City of Medicine Hat’s “transfer of ownership” application can be viewed on the Alberta Utilities Commission website.