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1 Decision New 500-kW Emergency Back-up Generator for Wal-Mart Perishable Foods Distribution Centre Balzac, Alberta December 17, 2010
2 ALBERTA UTILITIES COMMISSION Decision : Wal-Mart Canada New 500-kW Emergency Backup Generator for Wal-Mart Perishable Foods Distribution Centre Balzac, Alberta Application No Proceeding ID. 893 December 17, 2010 Published by Alberta Utilities Commission Fifth Avenue Place, 4th Floor, Street SW Calgary, Alberta T2P 3L8 Telephone: (403) Fax: (403) Web site:
3 ALBERTA UTILITIES COMMISSION Calgary Alberta WAL-MART CANADA CORP. 500-KW EMERGENCY BACKUP GENERATOR FOR Decision PERISHABLE FOODS DISTRIBUTION CENTRE Application No BALZAC, ALBERTA Proceeding ID INTRODUCTION 1. (Wal-Mart) filed Application No on October 18, 2010, (Application) with the Alberta Utilities Commission (Commission) for an order pursuant to section 11 of the Hydro and Electric Energy Act, seeking an approval for construction and operation of a 500-kilowatt (kw), 600-volt (V) diesel-powered emergency backup generator in Balzac, Alberta (Power Plant). 2. The Power Plant would consist of one Detroit Diesel Engine Generator 500-kW Series 60. The Power Plant would be housed within a Crystal Quiet enclosure, which would be located adjacent to the Wal-Mart Canada Perishable Foods Distribution Centre at Wagon Wheel Crescent, in the Wagon Wheel Industrial Park, Balzac, Alberta. The legal land description of the Power Plant is the southwest quarter of Section 11, Township 26, Range 29, West of the 4th Meridian. 2 DISCUSSION 3. Wal-Mart stated that the Power Plant will only be used in emergency situations when electric power supply, normally provided by the utility to the distribution centre, is interrupted. Further, in the event that Wal-Mart must operate the Power Plant, the power generated will be used solely for its own use. 4. Subsequently, Wal-Mart indicated that it was seeking an exemption for its proposed Power Plant under section 13 of the Hydro and Electric Energy Act. 5. A two-page Noise Impact Assessment Summary Form (NIA Summary) was submitted with the Application. The noise impact assessment was conducted by Stirling Engineering Inc. The nearest residence is located 950 metres northwest of the proposed Wal-Mart facility. The Permissible Sound Level (PSL) is 50 dba L eq nighttime and 60 dba L eq daytime, which was based on a dwelling density of 1-8 dwellings and a category 3 designation of the dwelling because the dwelling is subject to frequent aircraft flyovers. The predicted sound level, including the prescribed ambient sound levels is 46 dba L eq, which is below both the daytime and nighttime PSL and would comply with the requirements of AUC Rule 012: Noise Control. In addition, Wal-Mart submitted that the sound from the proposed power plant would not be discernable beyond 100 metres from the power plant. 6. Wal-Mart submitted in the NIA Summary that the Power Plant would be scheduled for 30 minutes of routine testing once a week in the daytime, for a total of 26 hours per year, excluding power outages. AUC Decision (December 17, 2010) 1
4 New 500-kW Emergency Backup Generator 7. Wal-Mart stated that it had conducted a participant involvement program for the distribution centre, which includes the Power Plant and that there were no concerns as a result. Wal-Mart added that, as the proposed power plant is on its distribution site and will be enclosed, it submitted that the proposed power plant would have negligible impact on the residents near the proposed power plant. 8. Due to the nature of the application and the location of the proposed power plant, the Commission did not issue a notice of application as it did not appear from the application that resident in the area might be directly and adversely affected by the Commission s decision on this application. 3 FINDINGS 9. The Commission considered that Wal-Mart filed the Application pursuant to section 11 of the Hydro and Electric Energy Act, which states: 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. 10. However, subsequent to the filing of its application, Wal-Mart requested an exemption under section 13 of the Hydro and Electric Energy Act which states: 13(1) Sections 9, 10 and 11 do not apply to a person generating or proposing to generate electric energy solely for the person s own use, unless the Commission otherwise directs. (2) Notwithstanding subsection (1), a person generating or proposing to generate electric energy solely for the person s own use, if required by regulation to do so, immediately notify the Commission of the use or proposed use and provide any details of the generation and use that the Commission requires. 11. The Commission has reviewed the Application and considers it important that the proposed power plant will be located in an industrial area on land that has been disturbed by the construction of a distribution centre. Also, the proposed power plant will be enclosed in a Crystal Quiet enclosure. The Commission is satisfied that the submitted Noise Impact Assessment Summary Form and the subsequent information responses meet the requirements of AUC Rule 012: Noise Control. 12. Due to the nature of the Application and its location, the Commission was of the opinion that its decision on this application would not directly and adversely affect the rights of a person, pursuant to section 9 of the Alberta Utilities Commission Act. 13. The Commission finds that the Application meets the requirements of section 13 of the Hydro and Electric Energy Act because the Power Plant will be used to generate electric energy solely for Wal-Mart s own use in the event of an emergency that is in the event of a power outage at its distribution centre. 2 AUC Decision (December 17, 2010)
5 New 500-kW Emergency Backup Generator 4 DECISION 14. Pursuant to section 13 of the Hydro and Electric Energy Act, the Commission approves the Application and grants the requested Exemption to, as set out in Appendix 1 Power Plant Exemption No. U on December 17, 2010 to construct and operate the Power Plant at its perishable foods distribution centre (Appendix 1 will be distributed separately). Dated on December 17, ALBERTA UTILITIES COMMISSION (original signed by) Tudor Beattie, QC Commissioner AUC Decision (December 17, 2010) 3
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