Energy committee chair backing solar bid

The chair of the city’s energy committee said he’s backing the purchase of the Saamis Solar project.

“It’s the right thing to do,” said Coun. Darren Hirsch at Thursday’s Energy, Land and Environment Committee.

A solar farm located near Hays, Alta., 80 km west of Medicine Hat. (File photo)

The comments were the first at a public meeting by an elected official, nine-days following city administration stating it was moving forward with initial steps to purchase the 325 MW project. That purchase will be subject to council approval, according to a Aug. 27 news release and which was reiterated at Thursday’s meeting.

While the potential Saamis Solar purchase wasn’t on the agenda, talk of the project was sprinkled liberally throughout a presentation on the energy divisions strategic plan.

The 90-minute presentation touched on the history of the city’s utilities along with the legislative carve outs which allow the municipality to directly control gas and electricity production and distribution.

However, concerns are being raised regarding the potential purchase with the Medicine Hat Utility Ratepayers Association (MHURA) issuing an open letter to Mayor Linnsie Clark seeking more information.

The letter issued Thursday morning is asking the mayor to explain just how much the project will cost and what public engagement took place prior to the decision.

MHURA is also stating it intends to object to the Alberta Utilities Commission (AUC) to the transfer of ownership of the project from DP Energy to the city.

“MHURA’s membership is also asking how a decision to forge ahead with applying for approval from AUC for transfer of ownership of the project fits in with the energy business review,” stated the letter signed by the group’s president Sounantha Boss.

City council directed staff one year ago to organize a third-party review of the city’s energy division.

“The intent of the review is to ensure that ownership, governance, financial, rate design approach and other relevant considerations are assessed to deliver optimal value for the community in light of changing community and external circumstances,” read a release by the city on March 5. That release announced KPMG was awarded the contract for the work.

Rochelle Pancoast, the city’s energy division director, told the committee the city will seek to diversify its electricity production portfolio when it make sense to do so, “where it’s driving value regardless of the energy business review outcome.”

Committee members councillor Hirsch along Alison Van Dyke voted to move the report to council to be heard at as of yet to be determined date.

MHURA stated in its letter its intent to hold a townhall in October.

The full committee meeting recording is available exclusively on Community TV’s website and Facebook page.