Company planning Alberta solar plant project owes citizens’ group $238K: AUC

A solar panel board is seen in this undated image. (Pixabay/Pexels)

The Alberta Utilities Commission (AUC) is taking action against a company planning to build a solar farm in an Alberta hamlet for failing to comply with an order to pay a local citizens’ group more than $238,000.

On May 28, the commission sent a notice of non-compliance to PACE Bang Energy LP (Pace), which was approved to construct and operate a 14.67-megawatt (MW) solar farm in Caroline, Alta., earlier this year.

• ‘We aren’t anti-solar’: Some citizens in Alberta hamlet of Caroline concerned about approval of solar farm

According to the notice, the AUC issued a costs decision on March 14, ordering Pace to pay the Caroline Concerned Citizen’s Group (CCCG) $238,950.20 as intervener costs awarded for its participation in the proceedings.

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“Pace failed to pay intervener costs to the CCCG and is in breach of the costs decision, the related order to pay costs in accordance with that costs decision, and a subsequent ruling confirming its obligation to pay those costs,” the AUC notice reads.

Pace had until April 14 to pay the group.

It instead filed an application to review the decision on April 14. The company also filed for permission to appeal the costs decision.

“Neither the filing of an application for review nor the filing of an application for permission to appeal acts to stay an order or direction of the AUC,” the AUC notes.

Two days later, on April 16, Pace filed a motion to suspend the costs decision, pending the conclusion of its application for review.

The company argued that paying the costs would force it to delay the development of at least five projects and cause “consequent harms that represent a financial burden impacting Pace’s operational flexibility, investment capabilities, relationships with key consultants and vendors, and the stability required for ongoing business activities.”

The commission temporarily suspended the implementation of the costs on April 17, pending a decision on Pace’s motion.

The motion was ultimately denied on May 8. The commission directed Pace to pay the CCCG within seven days of the ruling.

The commission said the CCCG filed a letter on May 23, informing them that payment of the costs had not been made by Pace within seven days of the ruling.

“The CCCG asserted that this represented willful non-compliance with the commission’s order and requested that the commission take a number of steps to address that non-compliance,” the notice reads.

The notice of non-compliance issued on Wednesday by the commission directed Pace to show cause why it should not take action against the company, listing several measures, including:

• Adding the other applicants involved in the project as liable to pay the intervener costs award;
• Awarding interest on the costs until payment is made;
• Suspending processing of approvals and orders for the Caroline Solar Farm;
• Suspending processing of current applications filed by Pace or its affiliates;
• Ceasing the acceptance and processing of new applications from Pace;
• Requiring Pace to provide up-front security for intervener costs connected to any pending or future applications;
• Bringing an application for contempt under the Alberta Utilities Commission Act; and
• Any further orders, directions or proceedings the commission deems “fit to make in the circumstances.”

The notice directed Pace to file a written response by no later than June 2, at 4 p.m.

CTV News has reached out to Pace for comment.

The CCCG has been opposing the project, citing concerns about zoning upkeep and safety.

The solar power plant would have a footprint of 80 acres, about the same size as the hamlet of Caroline.

The project is set to be built on land designated for residential and agricultural use.

The Alberta Utilities Commission approved the project on February 28.

With files from Alesia Fieldberg