Pembina NGL Corporation

Transcription

1 Decision D Megawatt Cogeneration Power Plant, Alteration to Scoria 318S Substation and Amendment to the Redwater Industrial System Designation January 9, 2018

2 Alberta Utilities Commission Decision D Megawatt Cogeneration Power Plant, Alteration to Scoria 381S Substation Proceeding Applications A001 to A003 January 9, 2018 Published by the: Alberta Utilities Commission Fifth Avenue Place, Fourth Floor, 425 First Street S.W. Calgary, Alberta T2P 3L8 Telephone: Fax: Website:

3 Alberta Utilities Commission Calgary, Alberta 45-Megawatt Cogeneration Power Plant, Alteration to Decision D Scoria 318S Substation and Amendment to the Proceeding Redwater Industrial System Designation Applications A001 to A003 1 Decision summary 1. In this decision, the Alberta Utilities Commission must decide whether to approve applications from to construct and operate a new 45-megawatt cogeneration power plant, alter Scoria 381S Substation within the Redwater Industrial Complex and amend the Redwater industrial system designation to include the proposed facilities. After consideration of the record of the proceeding, and for the reasons outlined in this decision, the Commission finds that approval of the project is in the public interest having regard to the social, economic, and other effects of the project, including its effect on the environment. 2 Introduction and background 2. On June 17, 2015, the Commission issued Decision D and Industrial System Designation Order D , 2 designating the Redwater Industrial Complex as an industrial system, pursuant to Section 4 of the Hydro and Electric Energy Act and providing an exemption from the operation of the Electric Utilities Act regarding the electric energy produced from and consumed by the proposed industrial system, pursuant to Section 117 of the Electric Utilities Act. 3. The industrial system designation is owned by (Pembina NGL), Williams Energy (Canada) Inc. and TransCanada Energy Ltd. It encompasses all facilities within the Redwater Industrial Complex boundary, located in southeast quarter of Section 12, Township 56, Range 22, west of the Fourth Meridian, in Sturgeon County. 4. Pembina NGL filed applications with the Commission for approval to amend the industrial system designation by adding a new 45-megawatt (MW) natural gas-fired combustion turbine generator, one 13.8/140-kilovolt (kv) step-up transformer and altering the existing Scoria 318S Substation at the industrial system site. A 175 metre 138-kV transmission line is also required to connect the transformer yard to the Scoria 318S Substation within the industrial complex boundary. These applications were registered as applications A001 to A003 on September 7, Decision D : Redwater Industrial System Designation Amendment, Proceeding 20484, Applications A001 to A003, June 17, Industrial System Designation Order D , Proceeding 20484, Application A001, June 17, Decision D (January 9, 2018) 1

4 3 Discussion 5. Pembina NGL stated that the Redwater Industrial Complex is expanding the fractionation and storage operations and, therefore, requires the new power plant and substation alteration to serve the electrical load and to produce heat. The 45-MW cogeneration power plant would consist of one GE LM 6000 gas-fired turbine generator, a 13.8/140 kv, 50/66.5/83 MVA step-up transformer and a 175 metre 138-kV overhead transmission line connecting the transformer yard to the Scoria 318S Substation. Pembina NGL stated the primary fuel supply for the cogeneration power plant is natural gas, which is currently supplied to the Redwater Industrial Complex by TransCanada Pipelines. 6. Pembina NGL is the operator of the Scoria 318S Substation, pursuant to Permit and Licence D In order to support the addition of the cogeneration facility, Pembina NGL also applied to the Commission to alter the existing Scoria 318S Substation by adding one 138-kV circuit breaker, extending the 138-kV bus, and adding other associated substation equipment. There is no change in fenceline required for the alteration to the Scoria 318S Substation. 7. Pembina NGL stated that no material changes to the industrial process integration would result from the proposed industrial system designation amendment. Pembina NGL also stated that the proposed amendment does not facilitate the development of an independent electric system and would improve efficiency of the Alberta Interconnected Electric System and reduce electricity losses. Pembina NGL added that FortisAlberta provided an Electric Utilities Act Section 101 approval in 2009 for the Redwater Industrial Complex and that no additional agreements are envisioned at this time. 8. Pembina NGL stated that the existing facility is approved under the Environmental Projection and Enhancement Act (EPEA) and that an amendment including the proposed project was approved in February 2017, on condition of receiving AUC approval. Pembina NGL further stated the proposed power plant had no significant contribution to air quality and meets the requirement of the Alberta Air Emissions Standards for Electricity Generation (AENV, 2005) and the Canadian Council of Ministers of the Environment (CCME) National Emission Guideline for Stationary Combustion Turbine (CCME, 1992). 9. The proposed project is located within the boundary of the Northeast Capital Industrial Association (NCIA) that has an established Regional Noise Management Plan (RNMP) recognized and approved by the Alberta Energy Regulator (AER) and endorsed by the Commission. 10. Pembina NGL identified the four closest residential receptors within 1.5 kilometres of the proposed project that were modelled in the noise impact assessment (NIA). Pembina NGL stated that these receptor locations are consistent with those used in the NCIA RNMP and with the latest NIAs conducted for other projects within the Pembina facility. 3 Permit and Licence D , Proceeding 20484, Application A002, June 17, Decision D (January 9, 2018)

5 11. Pembina NGL stated that the purpose of the NIA is to assess compliance with Rule 012: Noise Control and the AER Directive 038: Noise Control requirements, taking into consideration the NCIA RNMP. 12. Pembina NGL stated that it used the predicted sound level results from the latest NCIA Regional Noise Model (RNM) under downwind conditions, which represent the latest available information on noise contributions from existing and approved facilities in the NCIA in its determination of its Base Case Sound Level for the project. 13. The application case results of the NIA are presented below. Application Case ResultsReceptor ID Base Case Sound Level Daytime Nighttime Application Case Sound Level Daytime Nighttime Permissible Sound Level Daytime Nighttime R R R R Notes: Base Case Sound Level includes the NCIA RNM results for Proposed NCIA Regulated Facilities - downwind conditions (NCIA 2015); Application Case Sound Level includes the cumulative effects of the NCIA RNM results for Proposed NCIA Regulated Facilities - downwind conditions (NCIA 2015) plus the proposed project. 14. Pembina NGL stated that the daytime sound levels are below the permissible sound levels; however, the nighttime levels exceeded the permissible sound levels. 15. Pembina NGL stated that when comparing the NCIA RNM results with the requirements of Rule 012, the base case nighttime sound levels were already in excess of the nighttime sound levels established in the RNMP at some receptor locations before the project was considered. It submitted that the proposed project would be compliant with Rule 012 because no net increase in nighttime noise emissions was demonstrated between the base case and the application case, which included the proposed project. Pembina NGL stated it is committed to manage noise issues and to respond promptly to noise complaints. 16. Pembina NGL distributed a project notification letter to the public in May It stated that consent from every third-party was received on June 28, 2017 and no objections were Decision D (January 9, 2018) 3

6 received from the landowners. Pembina NGL also stated that a development permit application was submitted and is currently under review by Sturgeon County. 17. Pembina NGL requested that, Inter Pipeline Ltd. and TransCanada Energy Ltd. hold the industrial system designation order if approved because Williams Energy (Canada) Inc. was purchased by Inter Pipeline Ltd. in August The proposed project is anticipated to be in service by May Findings 19. The Commission has reviewed the applications and finds that the applications meet the information requirements stipulated in Rule 007: Applications for Power Plants, Substations, Transmission Lines, and Industrial System Designations and Hydro Developments. 20. The NCIA is an approved Special Area with a Regional Noise Management Plan approved by the AER (following the requirements outlined under Section Special Cases of AER Directive 038: Noise Control) and endorsed by the Commission. Although Pembina NGL stated that the predicted nighttime application case sound levels exceed the predicted nighttime base case sound levels at some receptor locations in the NIA, the applicant has demonstrated the project contributes to less than a 0.4 dba increase in sound level at the four receptor locations above the base case sound levels. The Commission finds that a no net increase in sound level was demonstrated at the four receptor locations with the addition of the project. The Commission accepts that the exceedance of the allowable sound levels during the nighttime period is a result of the existing base case noise levels exceeding the allowable sound levels. In its endorsement of the NCIA and the RNMP, the Commission has outlined its requirements on the Commission web site. 4 Specifically, an applicant is expected to prepare a standard application assessing noise before and after a facility is constructed and operating although [the NCIA] regional noise baseline would be used rather than having to measure or otherwise establish the existing noise levels. The expectation is that the noise levels at nearby receptors would have no net increase as a result of the new facility because of the existing ambient sound levels. If there is any net increase, the applicant would need to address how the noise level would be planned to be restored to the initial level in the next short term 3-5 year period The Commission finds the addition of the power plant and alteration to Scoria 318S Substation to the existing base case comply with the requirements of Rule 012 and the RNMP endorsed by the Commission for the NCIA. 22. The Commission finds the environmental effects of the project to be minor given the developed nature of the Redwater Industrial Complex. The Commission notes that EPEA approval has been obtained by Pembina NGL. 23. The Commission issued a notice of applications on November 1, The notice was distributed directly to the potentially affected stakeholders and no objections were received by the November 23, 2017 deadline. The Commission notes that Pembina NGL s participant Decision D (January 9, 2018)

7 involvement program has been conducted and there are no outstanding public or industry objections or concerns. 24. The Commission finds that the applicant has demonstrated that the addition of the on-site generation is the most economic and efficient source of power for the industrial system, that the efficiency of the interconnected electric system is improved and that there is no duplication of the interconnected electric system. The Commission also finds that the industrial process of the Redwater Industrial Complex will continue to be integrated as a result of the project. 25. Based on the foregoing, the Commission considers the project to be in the public interest in accordance with Section 17 of the Alberta Utilities Commission Act. 5 Decision 26. Pursuant to Section 4 of the Hydro and Electric Energy Act and sections 2(1)(d) and 117 of the Electric Utilities Act, the Commission approves Application A001 and grants to, TransCanada Energy Ltd. and Inter Pipeline Ltd. the approval set out in Appendix 1 Redwater Industrial System Designation Order D January 9, 2018 (Appendix 1 will be distributed separately). 27. Pursuant to Section 11 of the Hydro and Electric Energy Act, the Commission approves Application A002 and grants to, the approval set out in Appendix 2 Cogeneration Power Plant Approval D January 9, 2018 (Appendix 2 will be distributed separately). 28. Pursuant to sections 14, 15 and 19 of the Hydro and Electric Energy Act, the Commission approves Application A003 and grants to, the approval set out in Appendix 3 Scoria 318S Substation Permit and Licence D January 9, 2018 (Appendix 3 will be distributed separately). Dated on January 9, Alberta Utilities Commission (original signed by) Henry van Egteren Commission Member Decision D (January 9, 2018) 5