FortisAlberta Inc. - conviction information for 2018-08-15

Corporation details
Corporation name: FortisAlberta Inc.
Address: 320 17 Avenue SW
City: Calgary
Province/territory: Alberta
Postal code: T2S 2V1
Country: Canada
Sector or industry: 2211 - Electric power generation, transmission and distribution
Case details
Location of offense: Hinton, Alberta
Case summary: FortisAlberta Inc. (“FortisAlberta”) is an electrical distribution corporation, headquartered in Calgary, Alberta. As an electric distribution service provider, FortisAlberta owns and operates a number of electrical transformers throughout the province, some of which contain varying levels of PCBs.

One of these transformers (“the Transformer”) was located behind the Freson Brothers grocery store located at 102 Athabasca Avenue, in the Town of Hinton, Alberta. The Transformer sat on a cement pad adjacent to the store.

On 19 October 2015, FortisAlberta employees observed that there were oil stains on three sides of the concrete pad, covering an area of approximately 10 square feet.

According to FortisAlberta’s “Environment Incident Reporting” guide, any leak from a transformer involving PCBs or unknown PCB content must be reported to FortisAlberta’s emergency environment response number. FortisAlberta employees did not take steps to determine whether the Transformer contained PCBs or report the oil staining to the company’s internal emergency environment response number.

On 19 April 2016, at approximately 14:00 hours, Freson Brothers grocery store lost power. The Store Manager checked the Transformer and found a fresh oil release. FortisAlberta was contacted, and upon their inspection, it was confirmed that the Transformer had failed due to lack of oil.

On 22 April 2016, FortisAlberta determined that the Transformer contained PCBs in an amount of approximately 14 mg/kg.

On 04 May 2016, the Transformer was drained of oil by a third party and FortisAlberta estimated that 370 litres of oil were released at the Freson Brothers site.

On 12 May 2016, FortisAlberta reported that the Transformer had leaked 370 litres of oil with a PCB concentration of 14 mg/kg.

As a result of the spill, subsequent Environment and Climate Change Canada testing, it was estimated that approximately 325 litres of oil with a PCB concentration of 13 mg/kg were released from the Transformer on April 19, 2016. In total, 3.61 grams of PCBs were released into the environment because of this incident.
Charges:
Count 1: On April 19, 2016 at or near the Town of Hinton, in the Province of Alberta, did release more than one gram of PCBs into the environment from equipment referred to in section 16 that is in use, in violation of subsection 5(2) of the PCB Regulations, SOR/2008-273, thereby contravening subsection 272(1) of the Canadian Environmental Protection Act, 1999, SC 1999, c 33.

Count 2: On April 22, 2016, at or near the Town of Hinton, in the Province of Alberta, failed to notify an enforcement officer or any other person designated pursuant to the regulations, of a release into the environment of PCBs, in violation of paragraph 95(1)(a) of the Canadian Environmental Protection Act, 1999, SC 1999, c 33, thereby contravening subsection 272(1) of the Canadian Environmental Protection Act, 1999, SC 1999, c 33.
Enforcement notification: FortisAlberta Inc. fined $300,000 for contravening the Canadian Environmental Protection Act, 1999 and the PCB Regulations
Conviction
Result: Guilty Plea
Date of conviction: 2018-08-15
Court level: Provincial and Territorial Court
Nature of offense(s):
  • Other
Additional details about the nature of the offense: 1) Release more than one gram of PCBs into the environment from equipment that is in-use

2) Fail to notify an enforcement officer
Legislative details
Act Regulations Section(s)
Canadian Environmental Protection Act, 1999 (CEPA) PCB Regulations Subsection 5(2), SOR/2008-273
Canadian Environmental Protection Act, 1999 (CEPA) Paragraph 95(1)(a)
Sentencing
Date of sentencing: 2018-08-15
Location of sentencing: Hinton, Alberta
Sentence(s):
  • Penalty for the EDF
Amount of fine(s): $300,000
Sentencing details:
On 15 August 2018, before the Hinton Provincial Court, FortisAlberta pleaded guilty to:

- One count for violating 5(2) of the PCB Regulations - release more than one gram of PCBs into the environment from equipment that is in-use (just over 3 grams released).

- One count for violating 95(1)(a) of CEPA - fail to notify an enforcement officer.

FortisAlberta was ordered by the Provincial Court to pay $150,000.00 for each count, totalling $300,000.0, which was directed to the Environmental Damages Fund.
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