Enmax documents indicate the company is spending millions of dollars to store equipment purchased for a power plant project that has faced repeated delays. Some pieces, such as these heat recovery steam generators, are sitting in a field in east Calgary. (Scott Dippel/CBC)

Enmax has spent more than $400 million on a power plant planned for Calgary, mostly before it got approval for the mega-project.

That's according to sources inside the city-owned utility, who have said most of that money was spent before the Alberta Utilities Commission green-lit the 800-megawatt Shepard Energy Centre in October 2010.

Ald. Dale Hodges, a former Enmax board member, said he would have expected the company to spend some money up front, but was caught off-guard when told there are rows and rows of power plant equipment sitting outside in a field in east Calgary.

"When it comes to a major project like that, of course they needed council approval several years ago to see if they could get underway," said Hodges. "But it's interesting they ordered it before regulatory approval."

The equipment — including gas turbines ordered from Mitsubishi in January 2009 — is arranged in nine rows, each row being about 100 feet deep. It's covered with tenting, but still exposed to the elements.

Pursuing a risky strategy: Hodges

The company's own documents indicate it is spending millions to store the equipment.

Hodges called this a risky strategy, and warned that consumers would ultimately pay higher electricity bills for it.

But Ald. Brian Pincott, another Enmax board member, said he knew about the spending and believes the risks were tolerable because you need to prepare years in advance for a project of this size.

"Gas turbines don't just come off the shelf at Home Depot," said Pincott. "You have to order them years ahead of time...so that once you get the approvals, you're not sitting there waiting for three years before you can actually get going on it."

Applicants to the Alberta Utilities Commission typically spend some money before a decision is made about their project, although that money usually goes toward planning work.

An official with the AUC said an applicant spending large amounts of money on a project prior to regulatory approval doesn't influence them.

Equipment for the planned Shepard Energy Centre is arranged in nine rows, with each row being about 100 feet deep. Sources inside Enmax say the company has spent more than $400 million in preparation for the power plant project. (Scott Dippel/CBC) Enmax has refused requests from CBC News for interviews about the Shepard project.

Enmax won't say what the project is worth for competitive reasons, but corporate documents on the internet estimated it would cost more than $1 billion.

It's also behind schedule. At one time, the utility hoped the plant would be open this year, but it hasn't even broken ground. Enmax documents indicate the final design of the plant hasn't been completed.

Days after Shepard was approved last fall, Enmax added two more years to the project, making the start-up date 2015.

The plant, which is supposed to produce enough power for half of Calgary, is key to Enmax's plan to become a big electricity producer.

"This is a project that is going ahead. I hope. I hope this project goes ahead, you know," said Pincott. "It's an important, important project."

With files from the CBC's Scott Dippel