Alberta Power Generator Fined for Operating Without Regulatory Approval

The Alberta-based power generator, Avex Energy, has recently faced financial penalties for operating a natural gas-fired plant without the necessary regulatory approval. The Alberta Utilities Commission imposed a substantial fine, nearing $250,000, on Avex Energy for operating a generator without proper authorization.

Initially, officials from the then Avila Energy had engaged in discussions with the commission regarding the establishment of a generating station in the County of Stettler, located in central Alberta, back in the summer of 2019. Avila Energy had perceived that their existing permits would cover the new plant, which led to the erroneous assumption that no additional approvals were required.

The generator, subsequently known as the Red Willow Power Plant, commenced operations in April 2021, with an initial power output of 3.5 megawatts intended to be supplied to a bitcoin mining operation. Plans were in place to scale the generation capacity to 10 megawatts.

However, as the year progressed, noise complaints from residents residing nearly three kilometers away began to surface, with issues escalating in October 2021 following an increase in generating capacity. The Alberta Utilities Commission investigated these complaints, ultimately discovering that Avex Energy had been operating without the requisite licenses and approvals.

Further findings revealed that Avex Energy had not undergone the mandatory noise assessment or obtained essential environmental clearances for the operation of the plant. Consequently, on December 22, 2021, the Red Willow Power Plant was ordered to cease operations by the commission.

Despite the breach, the commission acknowledged Avex Energy’s cooperative attitude during the investigation, leading to a 30% reduction in the total fine imposed. Such instances of unauthorized operation are sporadic but are subject to regulatory scrutiny once identified, as highlighted by the Commission’s response to Avex Energy’s infringement.

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