- Alberta natural gas producer and power generator Avex Energy fined $240,000 for operating without regulatory approval
- The company ran a natural gas-fired generator from April to December 2021 without being licensed by the Alberta Utilities Commission
- The generator was supplying power to a bitcoin miner using gas from the company’s own wells
- The commission investigated the plant after receiving noise complaints from local residents
- The company agreed to shut down the plant and reduce the fine from $300,000 to $240,000
Canadian natural gas producer and power generator Avex Energy has been fined $240,000 by the Alberta Utilities Commission (AUC) for operating a natural gas-fired generator without regulatory approval.
According to an agreed statement of facts, Avex Energy ran the Red Willow power plant in Stettler Country from April to December 2021, without being licensed by the AUC. The 3.5-megawatt plant was burning natural gas sourced from wells owned by the same company, and selling the power to a bitcoin miner.
The AUC began investigating the plant after receiving noise complaints from local residents and determined that it was operating illegally. The commission found that Avex Energy had not conducted any noise impact assessments, environmental screening reports, or public consultations before starting the generator.
The AUC also found that Avex Energy had not registered the generator with the Alberta Electric System Operator (AESO), which manages the province’s electricity market and grid. This means that the generator was not contributing to the system’s reliability, or paying any fees or charges.
The AUC issued a notice of violation to Avex Energy in December 2021, and ordered the company to shut down the generator immediately. The commission imposed a fine of $300,000, which was reduced to $240,000 after Avex Energy agreed to comply with the order and cooperate with the investigation.
The AUC said that such infractions are rare but do occasionally occur. The commission’s spokesman Geoff Scotton said that the AUC is responsible for ensuring that power generators follow the rules and regulations that protect the public interest and the environment.
“The AUC takes these matters very seriously and will take appropriate enforcement action when necessary,” Scotton said.
The Alberta Utilities Commission (AUC) is an independent, quasi-judicial agency that regulates the delivery of utility services in the province. Working for the AUC means joining a team of passionate and curious professionals who contribute to the public interest and the well-being of Albertans. The AUC offers a competitive total compensation package, flexible work options, and opportunities for learning and career growth. If you are interested in work within the regulatory environment and the utilities sector, check out their website to explore employment opportunities.