Alberta Power (2000) Ltd.

Transcription

1 Decision D Battle River Power Plant Alterations August 27, 2018

2 Alberta Utilities Commission Decision D Battle River Power Plant Alterations Proceeding Application A001 August 27, 2018 Published by the: Alberta Utilities Commission Eau Claire Tower, 1400, 600 Third Avenue S.W. Calgary, Alberta T2P 0G5 Telephone: Fax: Website:

3 Alberta Utilities Commission Calgary, Alberta Decision D Proceeding Battle River Power Plant Alterations Application A001 1 Decision summary 1. In this decision, the Alberta Utilities Commission must decide whether to approve an application from for the alteration of a power plant, designated as the Battle River Power Plant, that would convert Unit No. 5 from coal-fuelled to natural gas-fuelled and would allow for additional natural gas as a supplemental fuel in Unit No. 3 and Unit No. 4. 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. (Alberta Power), a wholly owned subsidiary of ATCO Power Canada Ltd., pursuant to Power Plant Approval U , 1 is the owner of a power plant designated as the Battle River Power Plant, in the Forestburg area. The power plant is operated by ATCO Power Canada Ltd. 3. ATCO Power Canada Ltd., on behalf of Alberta Power, filed an application with the Commission for approval to alter and operate the power plant. The application was registered on May 15, 2018, as Application A The Commission issued a notice of application for the proceeding directly to potentially affected stakeholders within 2,000 metres of the project. The notice was also published in the Castor Advance, Stettler Independent, Camrose Canadian and Flagstaff County & Sedgewick Community Press newspapers and on the AUC website. Notification was automatically ed to efiling System users who had signed up to receive notices of application issued by the Commission. No submissions were received in response to the notice of application. 3 Discussion 5. The Battle River Power Plant consists of two 150-megawatt (MW) coal-fuelled generating units (designated as Unit No. 3 and Unit No. 4) and one 375-MW coal-fuelled generating unit (designated as Unit No. 5) with a total generating capability of 675 MW. Alberta Power applied to alter the power plant to allow for the conversion of Unit No. 5 from coal-fuelled to natural gas-fuelled and to allow for the increased use of natural gas as a supplemental fuel in Unit No. 3 and Unit No. 4 (the project). Alterations to the power plant would include adding a new natural gas pipeline, upgrading the gas burners, modifying boiler air 1 Power Plant Approval U , Proceeding 2709, Application , September 10, Decision D (August 27, 2018) 1

4 Battle River Power Plant Alterations ducts, installing additional boiler safety-valve capacity, and possibly upgrading boiler air-fan capacity. 6. Alberta Power stated that natural gas had been used within the existing power plant, initially for starting the units and maintaining flame stability, and more recently to supplement coal consumption to reduce air emissions and fuel costs. The natural gas currently consumed is at the maximum supply capability of the existing natural gas pipeline and the natural gas burner systems in the boilers. 7. A new TransCanada PipeLines Limited (TCPL) pipeline lateral is proposed to supply the incremental natural gas required to operate the converted Unit No. 5 and enable additional natural gas substitution in Unit No. 3 and Unit No. 4 at the same time. The TCPL pipeline would terminate at a natural gas conditioning skid at the power plant boundary where the pressure would be reduced to approximately 830 kilopascals (kpa). 8. Within the power plant, Alberta Power proposed a new natural gas pipeline that would run to the boiler house where it would connect with the Unit No. 5 boiler burner systems. A tee connection would be installed at the boiler house to allow gas to also be supplied to Unit No. 3 and Unit No. 4. This new natural gas pipeline would be 10 inches in diameter, approximately 400 metres long, and operated at a maximum pressure of 8,450 kpa. 9. Alberta Power stated that the alterations to the power plant would be minor, that all equipment changes would occur within existing buildings and the existing boiler, and would not result in adverse visual impacts. 10. Alberta Power indicated that it had filed an amendment application to Alberta Environment and Parks for the power plant s Environmental Protection and Enhancement Act Approval No to reflect the changes to the power plant s fuel supply. 11. Alberta Power stated that the alterations would not have adverse environmental impacts and would result in a reduction of nitrogen oxide, sulphur oxide, mercury, carbon dioxide and particulate matter emissions. 12. Alberta Power submitted a noise impact assessment with respect to the power plant which concluded that the anticipated noise levels would be within the permissible sound levels specified in Rule 012: Noise Control. 13. Alberta Power stated that the design of the natural gas pipeline would be in compliance with applicable safety regulations. Alberta Power stated that the proposed project would not necessitate modifications to the existing station emergency response plan since the plan already addresses the inherent potential hazards associated with natural gas. 14. Alberta Power conducted a participant involvement program that included notification to landowners within 2,000 metres of the power plant site boundary and consultation with landowners within 800 metres of the power plant site boundary. It also notified and consulted with other interested parties, including industry, government agencies and municipalities, and held an open house on May 2, 2018, in Forestburg. Alberta Power stated that it received no objections to the power plant alterations. 2 Decision D (August 27, 2018)

5 Battle River Power Plant Alterations 15. Alberta Power stated that while the in-service date for the project could occur as early as mid-2019, the timing would depend on many factors including federal and provincial government regulations and legislation, market conditions, and availability of natural gas supply. Alberta Power anticipated that the latest in-service date would be December Findings 16. The Commission has reviewed the application and has determined the information provided by Alberta Power satisfies the information requirements of Rule 007: Applications for Power Plants, Substations, Transmission Lines, Industrial System Designations and Hydro Developments and is satisfied that the technical, siting, emissions, environmental and noise aspects of the power plant alteration have been met. 17. The Commission accepts that the power plant will continue to comply with the conditions of the latest Alberta Environment and Parks Environmental Protection and Enhancement Act approval for the site, which includes compliance with the Alberta Ambient Air Quality Objectives and Guidelines. The Commission finds that the alterations will occur within the existing site boundary and will not result in significant adverse effects to the environment. 18. The Commission finds that the noise impact assessment submitted by Alberta Power fulfills the requirements of Rule 012 and the power plant will not exceed the permissible sound levels. 19. The Commission also finds that Alberta Power s participant involvement program has been satisfactory and there are no outstanding public, industry or agency objections or concerns. In addition, the Commission notes that no parties responded to the notice of application. 20. Based on the foregoing, the Commission considers the power plant alteration to be in the public interest in accordance with Section 17 of the Alberta Utilities Commission Act. 5 Decision 21. Pursuant to Section 11 of the Hydro and Electric Energy Act, the Commission approves the application and grants Alberta Power the approval set out in Appendix 1 Power Plant Approval D August 27, 2018 to alter and operate the Battle River Power Plant (Appendix 1 will be distributed separately). Dated on August 27, Alberta Utilities Commission (original signed by) Joanne Phillips Commission Member Decision D (August 27, 2018) 3