Decision 3476-D01-2015 Alberta Electric System Operator Yeo 2015S Substation Needs Identification Document ATCO Electric Ltd. Yeo Substation Project Facility Application February 18, 2015
Alberta Utilities Commission Decision 3476-D01-2015: Alberta Electric System Operator Yeo 2015S Substation Needs Identification Document Application 1610938-1 ATCO Electric Ltd. Yeo Substation Project Applications 1610939-1 to 1610939-4 Proceeding 3476 February 18, 2015 Published by the: Alberta Utilities Commission Fifth Avenue Place, Fourth Floor, 425 First Street S.W. Calgary, Alberta T2P 3L8 Telephone: 403-592-8845 Fax: 403-592-4406 Website: www.auc.ab.ca
Alberta Utilities Commission Calgary, Alberta Alberta Electric System Operator Yeo 2015S Substation Needs Identification Document ATCO Electric Ltd. Decision 3476-D01-2015 Yeo Substation Project Applications 1610938-1 and 1610939-1 to 1610939-4 Facility Application Proceeding 3476 1 Introduction and background 1. The Alberta Electric System Operator (AESO) filed Application 1610938-1 (the needs identification document application) with the Alberta Utilities Commission on October 21, 2014, pursuant to Section 34 of the Electric Utilities Act, for approval of the need for the new Yeo 2015S substation and a new 240-kilovolt (kv) transmission line between the proposed Yeo 2015S substation and the approved Birchwood Creek 960S substation. 2. Pursuant to Section 35 of the Electric Utilities Act, the AESO directed ATCO Electric Ltd. (ATCO) to submit a facility application to the AUC for the construction of the new Yeo 2015S substation and transmission line to meet the need identified in the needs identification document application. 3. ATCO filed Applications 1610939-1 to 1610939-4 (the facility application) with the AUC on October 21, 2014, pursuant to sections 14, 15, 19 and 21 of the Hydro and Electric Energy Act, for approval to construct and operate the Yeo 2015S substation and the 240-kV transmission line 9L144, and to alter and operate the approved Birchwood Creek 960S substation. 4. The AESO and ATCO requested that the Commission consider the needs identification document application and the facility application jointly, pursuant to Section 15.4 of the Hydro and Electric Energy Act. The Commission advised the AESO and ATCO that the applications had been combined and were being considered jointly as Proceeding 3476. 5. After reviewing the applications, the Commission issued two rounds of information request to ATCO on November 19, 2014, and January 23, 2015. ATCO responded to the information requests on December 9, 2014, and January 27, 2015, respectively. 6. The Commission issued a notice of applications for Proceeding 3476 on December 16, 2014. The notice provided information about how to express objections to, concerns about or support for one or more of the applications with a deadline to file any submissions to the AUC by January 14, 2015. The notice was sent directly to all landowners, occupants, agencies and other interested parties within 800 metres of the project. The notice was distributed electronically to market participants and published on the AUC website. Decision 3476-D01-2015 (February 18, 2015) 1
Yeo 2015S Substation Project 7. On January 8, 2015, Alberta Parks submitted correspondence to the Commission indicating that it had received the notice of applications and did not have any concerns with the project because the project would not occur within or near any park boundaries. 8. No objections or concerns were received by the submission deadline of January 14, 2015. 2 Discussion 2.1 Needs identification document application 9. ATCO, as the owner of electric distribution facilities in the Fort McMurray area, requested transmission system access service to serve a new industrial load associated with the Grand Rapids Mackay pump station. 10. The AESO s proposed transmission development to address the requested transmission system access included the following major components: one new 240/25- kv substation, to be designated as Yeo 2015S, with two 240/25-kV transformers; and one new 240-kV transmission line between the proposed Yeo 2015S substation and the approved Birchwood Creek 960S substation. 11. The AESO stated that three options were considered to address the need to supply the industrial load growth associated with the Grand Rapids Mackay pump station. The proposed transmission development was selected as the preferred option because it would be located closer to the new industrial load than one of the options and would provide greater reliability than the other option. 12. The AESO directed ATCO to assist it in conducting a participant involvement program. 2.2 Facility application 13. To meet the need identified by the AESO in the needs identification document application, ATCO proposed to: construct a new 240/25-kV substation to be designated as Yeo 2015S; construct approximately 1.5 kilometres of new single-circuit 240-kV transmission line, to be designated as 9L144, from the proposed Yeo 2015S substation to the approved Birchwood Creek 960S substation; alter the existing 240-kV transmission line 9L57 between Birchwood Creek 960S substation and Livock 939S substation by decommissioning and salvaging an approximately 750-metre line segment near Birchwood Creek 960S substation and rebuilding an approximately 750-metre line segment directly southeast to accommodate the new transmission line 9L144; and alter the approved Birchwood Creek 960S substation. 2 Decision 3476-D01-2015 (February 18, 2015)
Yeo Substation Project 14. The proposed Yeo 2015S substation would contain the following major equipment: two 240-kV/25-kV, 30/40/50-megavolt-ampere transformers; two 240-kV circuit breakers; and five 25-kV circuit breakers. 15. ATCO included only one proposed location for the proposed Yeo 2015S substation and one proposed route for transmission line 9L144 and altered portion of transmission line 9L57. 16. The proposed Yeo 2015S substation would be located in the Regional Municipality of Wood Buffalo, approximately 40 kilometres west of the urban services area of Fort McMurray. The proposed substation site is located in the southwest quarter of Section 34, Township 89, Range 14, west of the Fourth Meridian on Crown land. The substation site would be approximately 200 metres by 200 metres with a fenced area of approximately 82 metres by 57 metres. 17. ATCO stated that the site for the proposed Yeo 2015S substation was selected because: it is compatible and integrated with current and planned developments in the surrounding area; it reduces the overall impact on stakeholders and surrounding environment; ATCO will not have to construct a new access to the substation; the amount of new clearing for temporary construction laydown area is less than other areas; it avoids environmentally sensitive areas; it allows for future expansion; and it reduces the length and footprint of connections to the customer s facility. 18. ATCO stated that the proposed route for transmission line 9L144 would incorporate the existing land use development because it utilizes the right-of-way of the existing transmission line 9L57. A portion of transmission line 9L57 would be re-routed directly adjacent and parallel to the transmission line 9L144 right-of-way, which would reduce the total amount of land disturbed by integrating tree-free zones. ATCO also stated that this arrangement would avoid two unnecessary and higher risk line crossings. 19. ATCO stated that, while the proposed alignment for transmission lines 9L144 and 9L57 routes is through caribou habitat and environmentally significant areas, it would allow for minimal tree clearing, integration with the existing disturbances, reduction in safety hazards and increased electrical reliability. 20. The selected site for the proposed Yeo 2015S substation and the proposed routes for transmission line 9L144 and a portion of transmission line 9L57 were presented to stakeholders, including oil and gas developers, agencies, First Nations, interested parties, and the public. Decision 3476-D01-2015 (February 18, 2015) 3
Yeo 2015S Substation Project 21. ATCO stated that the proposed route for transmission line 9L144 was chosen because it: minimizes disturbances to natural systems in the study area; requires no new access; has low environmental impacts overall; has no transmission line crossings; has no objections from stakeholders and agencies; and minimizes transmission line length and cost. 22. The proposed transmission line 9L144 is located within the Boreal Forest Natural Region and the Central Mixedwood and Lower Boreal Highlands sub-regions. ATCO stated that the project is located within the Lower Athabasca Regional Plan (LARP) and that the project is consistent with the LARP in the following ways: ATCO consulted with the government agencies, industrial landholders and trappers in the routing process. The project follows existing linear disturbances, where possible, while avoiding other constraints including wetlands, water crossings and industrial facilities. ATCO worked closely with the large-scale industrial operators in the area to integrate transmission line route planning with other current and planned industrial activities. ATCO engaged the aboriginal communities in the planning process in developing the routing and siting options for the project. The air emissions from the project will not cause the ambient air quality conditions to exceed the triggers or limits detailed in the air quality management framework of the LARP. Depending on weather and ground conditions, ATCO may withdraw water to help stabilize work areas by freezing them. If this is required, ATCO will obtain the necessary regulatory approvals in that regard. The project does not require the use of groundwater, except for the stabilization work noted above. 23. ATCO stated that the Comprehensive Regional Infrastructure Sustainability Plan for the Athabasca Oil Sands Area (CRISP) describes Alberta s mandate of integrating multi-use corridor planning and incorporating extensive consultation in the Athabasca oilsands area for the proposed projects. ATCO also stated that the project is consistent with the CRISP. 24. ATCO indicated that it completed extensive consultation with Alberta Environment and Sustainable Resource Development (ESRD) to mitigate the environmental effects of the project and worked closely with ESRD on the siting of the project. 25. Further, ATCO submitted that the project would comply with the relevant sections of the Alberta Environmental Protection and Enhancement Act, the Environmental Protection Guidelines for Transmission Lines, and other relevant statutes, regulations, rules and guidelines. 4 Decision 3476-D01-2015 (February 18, 2015)
Yeo Substation Project 26. ATCO stated that Historical Resources Act clearance was issued by Alberta Culture in October 2014. 27. ATCO submitted an environmental evaluation report 1 and an environmental protection plan 2 to provide an assessment of the potential environmental effects of the proposed project. The environmental evaluation report for the project described the environmental and land use conditions in the project area including historical resources, land use and designated areas, watercourse crossings and wetlands, soils, vegetation, and wildlife and discussed the potential adverse effects of the project on these environmental components. The environmental evaluation report was based on both desktop data and the results of field surveys. The report included recommended mitigation measures that would limit these potential effects. 28. The environmental evaluation report acknowledged that the project has the potential to impact rare plants, wetland vegetation communities and wildlife species of conservation concern including species at risk such as woodland caribou. However, with the implementation of the recommended mitigation measures, the impacts of the project on vegetation and wildlife were predicted to be low to moderate in magnitude. 29. ATCO conducted a noise impact assessment for the project and submitted a noise impact assessment summary form as part of the application. The results indicated that the project would be in compliance with the noise levels established by Rule 012: Noise Control. ATCO also submitted that the nearest noise receptor (a work camp) from the proposed Yeo 2015S substation is approximately 2,500 metres away. 30. ATCO and the AESO conducted a joint participant involvement program. ATCO and the AESO submitted that project stakeholders, including oil and gas developers, agencies, and other interested parties potentially affected by the project were part of the consultation program. ATCO and the AESO also notified stakeholders, landowners, agencies, and other potentially interested parties within 800 metres of the transmission line route and substation site. ATCO also conducted personal consultation with all the landholders, occupants, agencies and interested parties with 800 metres of the proposed transmission line right-of-way and the proposed Yeo 2015S substation site. 31. The project would be located in a traditional area identified by three First Nation communities. ATCO stated that a consultation plan was implemented to ensure a thorough and meaningful consultation with the affected communities. 32. ATCO estimated the cost of the proposed project to be approximately $21,802,485 (within +20 per cent/-10 per cent accuracy). 3 Findings 33. The Commission has reviewed the needs identification document application and the facility application filed by the AESO and ATCO, respectively. The Commission finds that both applications meet the information requirements stipulated in Rule 007: Applications for 1 2 Exhibit 0009.00.AE-3476. Exhibit 0032.00.AE-3476. Decision 3476-D01-2015 (February 18, 2015) 5
Yeo 2015S Substation Project Power Plants, Substations, Transmission Lines, Industrial System Designations and Hydro Developments. 34. No interested party demonstrated that the AESO s assessment of the need for the proposed facilities 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 Section 38(e) of the Transmission Regulation, and approves the AESO s needs identification document application. 35. The Commission finds that the facility application for the substation and transmission line as proposed by ATCO, satisfies the need identified by the AESO. 36. The Commission recognizes that a participant involvement program was completed, and finds that there are no outstanding objections or concerns with the applications. The Commission finds that the respective consultation efforts made by the AESO and ATCO fulfill the requirements of Rule 007. In addition, the Commission notes that there were no objections or concerns received in response to the AUC notice of applications. 37. The Commission is satisfied that the submitted noise impact assessment is in compliance with the requirements of Rule 012. 38. The Commission acknowledges that the project is within the LARP area and is satisfied that the project is in accordance with the requirements of the LARP, and that ATCO has committed to comply with the relevant sections of the Alberta Environmental Protection and Enhancement Act, the Environmental Protection Guidelines for Transmission Lines and other relevant regulations and guidelines. 39. The Commission acknowledges ATCO s commitment to continue to consult and work with the Fish and Wildlife Operations Division of ESRD regarding the adverse effects of the project on birds, to complete post-construction bird mortality monitoring activities, and to implement any mitigation measures recommended by ESRD. 40. The Commission acknowledges ATCO s commitment to develop a caribou protection plan for the project, to submit the caribou protection plan to ESRD for approval upon completion, and to conform to the mitigation measures identified in the Alberta Woodland Caribou Policy and the caribou protection plan for the project. 41. The Commission expects ATCO to comply with all restricted activity periods, implement sufficient mitigation measures to ensure the protection of wildlife and rare plants prescribed under the Wildlife Act, and to maintain the ESRD recommended setback distances for the specified wildlife, plants, and their associated habitat during project construction. 42. The Commission is satisfied that any environmental issues can be addressed adequately through the mitigation measures proposed by ATCO in its environmental evaluation and environmental protection plan. 43. In order to confirm compliance, ATCO has made commitments in response to the environmentally related information requests. In this regard, the Commission finds that approval of the Yeo 2015S substation project would also require the following conditions: 6 Decision 3476-D01-2015 (February 18, 2015)
Yeo Substation Project ATCO shall protect the bog adder s mouth rare plant by: avoiding the immediate area where occurrences of the rare plant are located; flagging a 0.6-hectare buffer area around the rare plant occurrences that will not be cleared of vegetation; amending the boundary of the proposed Yeo 2015S substation Crown land lease and submitting the amended lease to ESRD Public Lands for approval; and conducting a post-construction survey of the rare plant occurrences within the appropriate survey timing window and advising ESRD of the results of this survey. If bird mortality occurs during operation of the project, ATCO shall consult with a local wildlife biologist at the Wildlife Management Unit of ESRD on appropriate mitigation measures. ATCO shall not conduct any brushing activity along the transmission line right-of-way or within the substation boundaries during breeding bird season. An ATCO environmental advisor has been assigned to this project and shall maintain a presence throughout the project. If the nighthawks are observed during construction, ESRD shall be consulted. A pre-construction nest sweep shall be conducted prior to the start of brushing operations to assess the presence of nests. One year following completion of construction, a post-construction raptor survey shall be conducted in the recommended timing window as per the Sensitive Species Inventory Guidelines. A post-construction auditory amphibian survey shall be conducted in the recommended timing window as per Sensitive Species Inventory Guidelines. An owl survey shall be conducted in early March 2015 as per Sensitive Species Inventory Guidelines or as directed by ESRD. 44. The Commission considers that the technical, siting and environmental aspects of the facilities, as specified in Rule 007, have been met. 45. Based on the foregoing, and having considered the social, economic, and environmental impacts of the proposed project, the Commission finds that the project is in the public interest pursuant to Section 17 of the Alberta Utilities Commission Act. 4 Decision 46. Pursuant to Section 34 of the Electric Utilities Act, the Commission approves the AESO s needs identification document application and grants the AESO the approval set out in Appendix 1 Approval 3476-D02-2015. 47. Pursuant to sections 14, 15, 19 and 21 of the Hydro and Electric Energy Act, the Commission approves the facility application and grants ATCO the following approvals: Decision 3476-D01-2015 (February 18, 2015) 7
Yeo 2015S Substation Project Permit and Licence 3476-D03-2015 to construct and operate Yeo 2015S substation as set out in Appendix 2. Permit and Licence 3476-D04-2015 to alter and operate Birchwood Creek 960S substation as set out in Appendix 3. Permit and Licence 3476-D05-2015 to construct and operate transmission line 9L144 as set out in Appendix 4. Permit and Licence 3476-D06-2015 to alter and operate transmission line 9L57 as set out in Appendix 5. Permit and Licence 3476-D07-2015 to decommission and salvage a portion of transmission line 9L57 as set out in Appendix 6. 48. The appendices will be distributed separately. Dated on February 18, 2015. Alberta Utilities Commission (original signed by) Neil Jamieson Commission Member 8 Decision 3476-D01-2015 (February 18, 2015)