Alberta Electric System Operator Needs Identification Document Application

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1 Decision D Alberta Electric System Operator Needs Identification Document Application Facility Applications June 22, 2017

2 Alberta Utilities Commission Decision D : Alberta Electric System Operator Needs Identification Document Application Application A001 Facility Applications Applications A002 to A004 Proceeding June 22, 2017 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 Alberta Electric System Operator Needs Identification Document Application Decision D Facility Applications Proceeding Applications A001 to A004 1 Decision summary 1. In this decision, the Alberta Utilities Commission must decide whether to approve a needs identification document application from the facility applications from for transmission development in the Wapiti area of the Municipal District of Greenview. After consideration of the record of the proceeding, and for the reasons outlined in this decision, the Commission finds the Alberta Electric System Operator s assessment of the need to be correct and 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 April 28, 2017, the Alberta Electric System Operator (AESO) filed a needs identification document for approval of the need to alter the Wapiti 823S Substation, which arose from a request from the distribution facility owner for system access service to serve new industrial demand for electricity in the Wapiti area. The needs identification document application, filed pursuant to Section 34 of the Electric Utilities Act, was registered as Application A Pursuant to Section 35 of the Electric Utilities Act, the AESO directed (ATCO Electric) to submit facility applications to the Commission to meet the need identified in the needs identification document application. 4. ATCO Electric filed facility applications to meet the need identified by the AESO pursuant to sections 14, 15 and 21 of the Hydro and Electric Energy Act. ATCO Electric proposed to alter and operate the Wapiti 823S Substation, the 144-kilovolt (kv) transmission line 7L09, and the Elmworth 731S Substation (the proposed project). Its applications were filed on May 2, 2017, and were registered as applications A002 to A004 (the facility applications). 5. Pursuant to Section 15.4 of the Hydro and Electric Energy Act, the AESO and ATCO Electric requested that the Commission consider the needs identification document application and the facility applications jointly. The Commission advised the AESO and ATCO Electric that the applications had been combined and were being considered jointly as Proceeding Decision D (June 22, 2017) 1

4 6. On May 25, 2017, the Commission issued a notice of applications for Proceeding with a deadline of June 15, 2017 for submissions to express objections, concerns, or support for one or more of the applications. The notice was sent directly to all occupants, residents and landowners within 200 metres of the project, as well as to other stakeholders who were contacted as part of the participant involvement program as identified by ATCO Electric. The notice was also published on the AUC website and notification was automatically ed to efiling System users who had chosen to be notified of notices of application issued by the Commission. 7. No submissions were received by the submission deadline of June 15, On May 26, 2017, the Commission issued information requests to ATCO Electric to clarify details of the facility applications. ATCO Electric submitted its responses on May 31, Discussion 3.1 Needs identification document application 9. ATCO Electric, the owner of electric distribution facilities in the Wapiti area, requested system access service from the AESO to serve new industrial demand for electricity in the area. ATCO Electric requested a staged demand transmission service contract capacity increase of 13.5 megawatts for the system service provided at the existing Wapiti 823S Substation. The AESO indicated that the need could be met by replacing the existing 144/25-kV transformer with a 144/25-kV transformer with a maximum capability of 50-megavolt-amperes (MVA), and adding a 144-kV circuit breaker and a 25-kV circuit breaker at the existing Wapiti 823S Substation. 10. The AESO examined three alternatives to the proposed transmission development that involved upgrades to the existing Wapiti 823S Substation, Bridge Creek 798S Substation and Elmworth 731S Substation. The AESO ruled out these alternatives because the upgrades had either increased costs or were not technically viable compared to the proposed project. 11. The connection assessment conducted by the AESO identified thermal criteria violations following the completion of the proposed project under certain conditions. The AESO stated that real-time operational practices could be used to manage most of the post-connection system performance issues. The AESO stated that the restoration of transmission line 7L75 would also help mitigate observed thermal criteria violations. The work on transmission line 7L75 is part of approved ATCO Electric capital maintenance and is scheduled to be completed before the in-service date of the proposed transmission development. 12. The AESO directed ATCO Electric to assist the AESO in conducting a participant involvement program that would provide stakeholders with an opportunity to raise any concerns regarding the need for the facilities required for the project. No concerns or objections were raised about the need for the proposed project or the AESO s preferred option to respond to the request for system access service. 2 Decision D (June 22, 2017)

5 3.2 Facility applications 13. To meet the need identified by the AESO, ATCO Electric proposed to alter the Wapiti 823S Substation, transmission line 7L09 and the Elmworth 731S Substation. 14. The Wapiti 823S Substation, operating pursuant to Permit and Licence AP 84-35, 1 is located in the southwest quarter of Section 8, Township 69, Range 8, west of the Sixth Meridian. To meet the need identified by the AESO, ATCO Electric proposed to alter the Wapiti 823S Substation as follows: the removal of one 144/25-kV, 10/13.3-MVA transformer the removal of one 144-kV circuit switcher the removal of one 25-kV voltage regulator the addition of one 144/25-kV, 30/40/50-MVA LTC transformer the addition of one 144-kV circuit breaker the addition of one 25-kV circuit breaker the addition of one wood telecommunications tower and associated communications equipment 15. ATCO Electric submitted that upon completion of the proposed project, the Wapiti 823S Substation would include the following major equipment: one 144/25-kV, 30/40/50-MVA LTC transformer one 144-kV circuit breaker three 25-kV circuit breakers one 15-metre tall wood pole telecommunications tower 16. Transmission line 7L09, operating pursuant to Permit and Licence AP 84-36, 2 runs from a connection point on transmission line 7L03 and terminates at the Wapiti 823S Substation. ATCO Electric proposed to extend transmission line 7L09 by approximately 40 metres immediately outside the Wapiti 823S Substation fence, on substation property, in order to reach the proposed equipment at the substation. 17. The Elmworth 731S Substation, operating pursuant to Permit and Licence U , 3 is located in the southeast quarter of Section 8, Township 70, Range 11, west of Sixth Meridian. ATCO Electric proposed to alter the substation by removing the existing 11-metre wood pole telecommunications tower and installing a new 22-metre wood pole telecommunications tower Permit and Licence AP 84-35, Application , August 29,1984. Permit and Licence AP 84-36, Application , August 29, Permit and Licence U , Application , July 11, Decision D (June 22, 2017) 3

6 18. Upon completion of the project, the Elmworth 731S Substation would include the following equipment: one 25/33/41.6-MVA, 144/25-kV transformer one 144-kV circuit breaker one 144-kV circuit switcher three 25-kV circuit breakers one 25-kV voltage regulator one 22-metre tall wood pole telecommunications tower 19. ATCO Electric stated that the existing Wapiti 823S and Elmworth 731S substations are located on ATCO Electric-owned property in central Alberta within the Dry Mixedwood Subregion of the Boreal Natural region and that the surrounding areas are agricultural, industrial and forested in nature. It indicated that the proposed alterations at the substations would occur within the existing fence line and property. 20. In response to the Commission s information requests about the need to install new telecommunication towers at the Wapiti 823S and Elmworth 731S substations, ATCO Electric submitted that the proposed towers are to support new antennas at the substations to meet current protection and supervisory control and data acquisition (SCADA) standards as per the Independent System Operator rules and due to the alteration of major equipment at the Wapiti 823S Substation. Further, ATCO Electric stated that the telecommunications tower at the Elmworth 731S Substation is required as per the AESO s project functional specification as a provision for breaker fail protection at the adjacent substations on the interconnected transmission line. 21. ATCO Electric undertook a participant involvement program and mailed out 21 information packages to municipalities, government departments, and land holders, occupants, and residences within 200 metres of the Wapiti 823S Substation site boundary. In addition, ATCO Electric mailed out 15 information packages to municipalities, government departments, land holders and occupants within 200 metres of the Elmworth 731S Substation site boundary. 22. ATCO Electric indicated that because there would be no alterations to the fence lines or the property lines as part of the project, only consultations with the substation property owners were required. ATCO Electric advised that it owned the Wapiti 823S Substation and the Elmworth 731S Substation properties. 23. ATCO Electric s consultation program did not include Aboriginal engagement because there would be no known potential impact on Aboriginal rights and traditional uses, nor any requirement to conduct Aboriginal consultation based on the scope of activity. 24. ATCO Electric submitted that there are no outstanding public or industry objections or concerns. 4 Decision D (June 22, 2017)

7 25. ATCO Electric stated it evaluated the potential visual effects associated with the proposed substation alterations and the proposed wood pole telecommunications towers being added to both substations. ATCO Electric determined that the new towers would not create new visual impacts in the area given the surrounding land use, existing tree coverage and existing, similarly sized transmission structures in the area. ATCO Electric indicated that there were no areas identified surrounding the Wapiti 823S Substation or the Elmworth 731S Substation that would require tree planting or landscaping to mitigate aesthetic concerns, and that no scenic vistas or viewpoints were identified. 26. ATCO Electric stated that significant effects on adjacent landholders, agricultural operations or the environment would not be anticipated, although landholders could expect some increase in noise and traffic during construction. 27. ATCO Electric indicated that its records confirm there is no equipment at either of the substation sites suspected or tested to contain more than 2 mg/kg (two parts per million) polychlorinated biphenyl oil. Further, ATCO Electric stated its incident report database indicated that no reportable releases have occurred at either of the substation sites. ATCO Electric submitted that an ATCO Electric environment department employee would be on-site to conduct an inspection and collect soil samples if evidence of contamination were to be encountered during construction activities. 28. ATCO Electric stated it would undertake the proposed alterations adhering to Alberta Environment and Park s Environmental Protection Guidelines for Transmission Lines, the project s environmental protection plan, 4 and requisite provincial and federal environmental legislation. 29. ATCO Electric received Historical Resources Act clearance for the proposed project from Alberta Culture and Tourism on March 16, Further, ATCO Electric stated that if historical resources are discovered during construction, ATCO Electric would follow the environmental protection plan measures for any unanticipated discoveries and historic resources. 30. ATCO Electric stated it predicts that the project would have no adverse environmental impacts or impacts on the drainage efficiency of the Wapiti 823S Substation or the Elmworth 731S Substation. ATCO Electric stated that there are no waterbodies, wetlands or watercourses directly adjacent to the substation sites. 31. ATCO Electric stated that a noise impact assessment was conducted for the proposed upgrade to the Wapiti 823S Substation in accordance with Rule 012: Noise Control. The results of the noise impact assessment showed that the proposed facilities would not exceed the permissible sound levels established by the Commission. ATCO Electric stated no noise impact assessment was conducted for the Elmworth 731S Substation because the proposed telecommunications tower addition is not deemed to be noise producing equipment. 32. The cost of the proposed substation upgrade was estimated by ATCO Electric to be approximately $6,592,411 (within +20 per cent/-10 per cent accuracy) and would be a customer cost. 4 Exhibit X0032. Decision D (June 22, 2017) 5

8 33. Construction of the proposed project would commence in July 2017, with a proposed in-service date of April 1, Findings 34. The Commission is satisfied that the needs identification document application filed by the AESO contains all the information required by the Electric Utilities Act, the Transmission Regulation and Rule 007: Applications for Power Plants, Substations, Transmission Lines, Industrial System Designations and Hydro Developments. 35. No interested party demonstrated that the AESO s assessment of the need to upgrade the Wapiti 823S Substation or the Elmworth 731S Substation is technically deficient or that approval of the needs identification document application is not in the public interest. Therefore, the Commission considers the AESO s assessment of the need to be correct, in accordance with Subsection 38(e) of the Transmission Regulation, and approves the AESO s needs identification document application. 36. The Commission is also satisfied that ATCO Electric s facility applications complies with the information requirements prescribed in Rule 007 and that it is consistent with the need identified in the AESO s needs identification document application. 37. The Commission finds that the joint participant involvement program undertaken by the AESO and ATCO Electric meets the requirements of Rule The Commission finds that the technical and environmental aspects of the project, as submitted by ATCO Electric, fulfill the requirements of Rule The Commission expects ATCO Electric to comply with the relevant sections of the Environmental Protection and Enhancement Act, the Environmental Protection Guidelines for Transmission Lines, and other relevant statutes, regulations, rules and guidelines listed in the facility applications. 40. The Commission finds that the noise impact assessment summary form submitted by ATCO Electric fulfills the requirements of Rule 012 and accepts the prediction that the Wapiti 823S Substation will be in compliance with the permissible sound level requirements of Rule The Commission is satisfied that there are no outstanding technical or environmental concerns associated with the project, nor are there any outstanding public or industry concerns from directly and adversely affected parties. 42. Given the considerations discussed above, the Commission finds the project to be in the public interest, pursuant to Section 17 of the Alberta Utilities Commission Act. 6 Decision D (June 22, 2017)

9 5 Decision 43. Pursuant to Section 34 of the Electric Utilities Act, the Commission approves the need outlined in Needs Identification Document Application A001 and grants the AESO the approval set out in Appendix 1 Needs Identification Document Approval D June 22, Pursuant to sections 14, 15 and 19 of the Hydro and Electric Energy Act, the Commission approves Application A002 and grants ATCO Electric the approval set out in Appendix 2 Substation Permit and Licence D June 22, 2017, to alter and operate the Wapiti 823S Substation. 45. Pursuant to sections 14, 15 and 19 of the Hydro and Electric Energy Act, the Commission approves Application A003 and grants ATCO Electric the approval set out in Appendix 3 Substation Permit and Licence D June 22, 2017, to alter and operate the Elmworth 731S Substation. 46. Due to the minor scope of the alteration, no amendment is required to the permit and licence for transmission line 7L The appendices will be distributed separately. Dated on June 22, Alberta Utilities Commission (original signed by) Henry van Egteren Commission Member Decision D (June 22, 2017) 7