OK Hutterian Brethren Colony

Decision 2010-568 300-kW Wind Farm December 8, 2010

ALBERTA UTILITIES COMMISSION Decision 2010-568: 300-kW Wind Farm Application No. 1606388 Proceeding ID. 745 December 8, 2010 Published by Alberta Utilities Commission Fifth Avenue Place, 4th Floor, 425-1 Street SW Calgary, Alberta T2P 3L8 Telephone: (403) 592-8845 Fax: (403) 592-4406 Web site: www.auc.ab.ca

ALBERTA UTILITIES COMMISSION Calgary Alberta OK HUTTERIAN BRETHREN COLONY Decision 2010-568 300-KW WIND FARM Application No. 1606388 COUNTY OF WARNER Proceeding ID. 745 1 INTRODUCTION 1. OK Hutterian Brethren (OK Colony), filed Application No. 1606388 (Application) on July 26, 2010, with the Alberta Utilities Commission (AUC or Commission) requesting approval to: construct and operate two BONUS MK3 150-kilowatt (kw) wind-powered turbines for a total installed capacity of 300 kw (Power Plant) pursuant to section 11 of the Hydro and Electric Energy Act; and connect the Power Plant to the 25-kilovolt (kv) electric distribution system of FortisAlberta Inc. (Distribution System) pursuant to section 18 of the Hydro and Electric Energy Act in the County of Warner, Alberta. 2. Due to the nature of the Application, the Commission considered that a Notice of Application and a hearing were not required as the Commission s decision or order regarding this Application would not directly and adversely affect the rights of a person as defined in section 9 of the Alberta Utilities Commission Act. 2 BACKGROUND 3. The Power Plant would be located in the northwest quarter of Section 34, Township 4, Range 20, West of the 4th Meridian. The location of the wind turbines is listed below: Turbine #1 would be located 40 metres (m) north from the south end of the northwest quarter section line and 180 m east of Range Road 203. Turbine #2 would be located 130 m north from the south end of the morthwest quarter section line and 150 m east of Range Road 203. 4. OK Colony is a Hutterite community located 56 kilometres (km) south of Lethbridge, Alberta, in the County of Warner No. 5. The nearest town is the Town of Raymond, which is over 12 km north of OK Colony. OK Colony is on the Milk River Ridge, which is reputed to have good wind resources. OK Colony occupies approximately 8500 acres, including the land on which the Power Plant would be located. 5. A 480-volt (V) gathering system, consisting of underground power lines, would collect electric power generated from the individual wind-powered turbines and deliver the power to the 480-V/25-kV, 750-KVA pad mount transformer and in turn to the Distribution System. AUC Decision 2010-568 (December 8, 2010) 1

300-kW Wind Farm 6. OK Colony received the following supporting documents with respect to the Power Plant and provided them to the Commission: Aeronautical Obstruction Clearance for the Power Plant from Transport Canada on May 13, 2010; confirmation from Alberta Transportation on May 27, 2010 that a permit is not required for the Power Plant. Alberta Transportation also indicated that it has no objections/concerns with favourable consideration of the OK Colony s application for the Power Plant; and a development permit from the County of Warner on July 20, 2010 for the Power Plant. 3 DISCUSSION 7. OK Colony purchased two used (vintage year 1992) turbines from BONUS Energy A/S, a manufacturer in Denmark, for installation as the Power Plant. The BONUS MK3 150-kW turbine is a 3-bladed upwind turbine with rated power of 150 kw at 50 Hz and would be installed on 30.4-metre tall towers. The rotors have a diameter of 23.8 metres. 8. On September 16, 2010, OK Colony submitted a letter to the Commission from the accredited institute DANAK for the Danish Ministry of Environment in support of its Application. OK Colony submitted that the cumulative predicted sound levels based on distance from the turbine are: 50 m away 52 dba 100 m away 46 dba 200 m away 40 dba 400 m away 33 dba 9. OK Colony property is approximately 8500 acres. OK Colony stated that the Power Plant would be located more than 3 km from the nearest neighbours, therefore there were no other landowners with whom to consult about the Power Plant. 10. OK Colony proposed to connect the Power Plant to the Distribution System. OK Colony has a connection agreement with FortisAlberta Inc. signed on November 24, 2010. 11. OK Colony also submitted the following correspondence regarding the Power Plant: Transport Canada Approval; NAV Canada non-objection letter; and Alberta Transportation Approval. 2 AUC Decision 2010-568 (December 8, 2010)

300-kW Wind Farm 4 FINDINGS 12. The Commission considered the Application pursuant to sections 11 and 18 of the Hydro and Electric Energy Act, which provides: 11 No person shall construct or operate a power plant unless the Commission, by order, has approved the construction and operation of the power plant; 13. Section 18(1) of the Hydro and Electric Energy Act states, in part: 18(1) The owner or operator of a power plant, transmission line or electric distribution system shall not connect that power plant, transmission line or electric distribution system, or cause or permit it to be connected, (a) to any other power plant, transmission line or electric distribution system, unless the connection is in accordance with an order under this section. 14. The Commission finds that the technical evidence provided by OK Colony is marginal for predicting the noise impacts that would be created by the turbines under representative conditions. The Commission finds that the forecasts of sound are informative only and recognizes the effort made by OK Colony to comply with AUC Rule 012: Noise Control. In the circumstances of this Application, the Commission considers the OK Colony s noise information to be reasonable and acceptable. 15. The Commission considers that should a valid complaint regarding noise be made against the Power Plant in the future, OK Colony may be asked to cease operating the Power Plant, to conduct a post-construction noise assessment, and to mitigate any noise in excess of permissible sound levels as prescribed in AUC Rule 012: Noise Control. 16. The Commission finds that the Application complies with AUC Rule 007: Rules Respecting Applications for Power Plants, Substations, Transmission Lines, and Industrial System Designations; participant involvement program and since the Power Plant would be located on OK Colony property, which is a holding of 8500 acres where there are no other landowners within 2 km of the Power Plant, the Power Plant is unlikely to adversely affect the neighbours. 17. The Commission has reviewed the Application and has determined that the Applicant has satisfied the requirements pursuant to sections 11 and 18 of the Hydro and Electric Energy Act respecting the technical, siting, emissions, and environmental aspects of the Power Plant. AUC Decision 2010-568 (December 8, 2010) 3

300-kW Wind Farm 5 DECISION Pursuant to sections 11 and 18 of the Hydro and Electric Energy Act, the Commission approves the Application and grants the approval set out in Appendix 1 Power Plant Approval No. U2010-355 December 8, 2010, and Appendix 2 Connection Order Order No. U2010-356 December 8, 2010, to OK Colony to construct and operate the Power Plant as well as to connect the Power Plant to FortisAlberta Inc. s 25-kV distribution system (Appendices 1 and 2 will be distributed separately). Dated on December 8, 2010. ALBERTA UTILITIES COMMISSION (original signed by) Tudor Beattie, QC Commissioner 4 AUC Decision 2010-568 (December 8, 2010)