Alberta approves more time for Maxim to build 190-MW peaker

The Alberta Utilities Commission (AUC) has agreed to grant Maxim Power (TSX: MXG) more time to complete construction of the 190-MW Deerland gas-fired peaking power plant in the Bruderheim, Alberta area.

In an order entered May 30, the commission approved Maxim’s request to further extend the stipulated completion date for the gas-fired peaker until June 1, 2014.

Maxim, a Calgary-based independent power producer, has previously put the estimated capital cost of the power plant at (C)$140m.

Back in September 2010 Maxim requested and subsequently received AUC permission to extend the deadline until June 1, 2012. Then on April 12 of this year Maxim applied to the AUC for another two-year extension, which has now been granted.

The plant will consist of four General Electric (NYSE: GE) NexGen LM6000 gas-fired turbine generator units, operating in simple-cycle mode, with a total generating capacity of 190 MW. Maxim must submit a progress report to the commission every three months.

In a related development, Maxim said in a May 15 news release that it has entered into agreements to secure firm natural gas transportation service for the Deerland power plant, which Maxim hopes to actually begin operating in late 2013.

Maxim also refers to Deerland as its D1 station. The company describes the peaking plant as the “only shovel-ready” and permitted natural gas-fired peaking project in the province of Alberta.

The D1 site is located near Bruderheim in Alberta’s industrial heartland. D1 is in close proximity to the entry point of the proposed Gateway pipeline and adjacent to the existing Deerland high voltage substation. This area is expected to experience significant growth in electrical demand. Maxim expects peaking requirements across Alberta to continue to grow to meet this increasing demand and to provide firm backup for intermittent wind resources.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.