Decision D ATCO Electric Ltd. Decommissioning of Transmission Line 6L82

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1 Decision D August 23, 2016

2 Decision D Proceeding Application A001 August 23, 2016 Published by the: Fifth Avenue Place, Fourth Floor, 425 First Street S.W. Calgary, Alberta T2P 3L8 Telephone: Fax: Website:

3 Calgary, Alberta Decision D Proceeding Application A001 1 Decision summary 1. In this decision, the must decide whether to approve an application from (ATCO Electric) to decommission and salvage portions of transmission line 6L82 (the transmission line). After consideration of the record of the proceeding, and for the reasons outlined in this decision, the Commission finds that approval of the proposed project is in the public interest, having regard to the social and economic effects of the project and its effect on the environment. 2 Introduction and background 2. ATCO Electric, pursuant to Licence AP 87-62, 1 is the operator of the 72-kilovolt (kv) transmission line from Bonnyville 700S Substation to St. Paul 707S Substation in the St. Paul- Bonnyville area. The Bonnyville 700S Substation is located at LSD 13, Section 24, Township 61, Range 6, west of the Fourth Meridian and the St. Paul 707S Substation is located at LSD 4, Section 17, Township 58, Range 9, west of the Fourth Meridian. 3. ATCO Electric, pursuant to sections 14, 15 and 21 of the Hydro and Electric Energy Act, filed an application with the requesting approval to decommission approximately 66 kilometres of the transmission line (the proposed project). The application was registered as Application A001 on March 21, 2016 in Proceeding The Commission issued information requests on April 7, 2016, July 11, 2016, and July 25, 2016, and ATCO Electric responded to the information requests on April 13, 2016, July 18, 2016, and August 2, 2016, respectively. 5. The Commission issued a notice of application on April 7, 2016, directing any person who had concerns or objections to the application, or who wished to support the application, to file a submission by April 28, On April 19, 2016, the Commission issued a letter and the notice of application to an updated stakeholder and provided the stakeholder until May 5, 2016 to file submissions. The Commission received return mail that was forwarded to ATCO Electric for updated information. After ATCO Electric provided updated contact information, the Commission mailed the notice of application on May 16, 2016, and subsequently extended the deadline to make a submission to May 30, Licence AP 87-62, Application , June 24, Decision D (August 23, 2016) 1

4 6. On April 28, 2016, the Commission received statements of intent to participate from Darren, Valerie and Nancy Pratch (the Pratch family), and Jeannette and Bobby Poulin (the Poulin family), all objecting to the application. 7. On June 13, 2016, the Commission issued its ruling on standing. 2 In that ruling, the Commission found that neither the Pratch family nor the Poulin family had demonstrated they had rights that may be directly and adversely affected by the Commission s approval of the proposed project. As such, the Commission found no hearing was required pursuant to Section 9 of the Act. 3 Discussion 8. ATCO Electric stated in its application that approximately 37 kilometres of the transmission line would remain intact and be converted to 25-kV distribution voltage, 17 kilometres would be altered to be utilized for 25-kV distribution by having the 72-kV conductor and cross-arms removed from the structure, and 12 kilometres would be salvaged entirely. Specifically, nodes A1 to A2 and A12 to A13 along the transmission line would remain intact and converted to 25-kV distribution, nodes A2 to A3, A4 to A5, A6 to A7, A8 to A9 and A10 to A11 would have structures altered to be utilized for 25-kV distribution, and nodes A3 to A4, A5 to A6, A7 to A8, A9 to A10 and A11 to A12 would be salvaged The need for the proposed project was identified by the Alberta Electric System Operator in the Central East Transmission Development needs identification document, and was approved by the Commission in Decision and Approval U Pursuant to Section 35 of the Electric Utilities Act, the Alberta Electric System Operator directed ATCO Electric to submit an application for this proposed project. 10. ATCO Electric indicated in its application that the transmission line had distribution circuits mounted under the transmission conductors for portions of the transmission line, and the distribution circuits were required to supply local residences and industry with power and, therefore, must remain in place. 11. ATCO Electric explained that upgrades associated with the Bonnyville to Bourque 6 and St. Paul transmission projects, 7 have rendered the 72-kV facilities at the Bonnyville 700S and Exhibit X0041, AUC Ruling on Standing. Exhibit X0011, Attachment 4 Project Area Maps, PDF pages 2-3 shows the node locations. The transmission line was proposed to be salvaged in the following locations: NE W4M and SE W4M, SE W4M and SE W4M, SE W4M and SE W4M, and SW W4M and SE W4M, and SE W4M and NW W4M. Decision : Alberta Electric System Operator Central East Needs Identification Document Amendment and Watt Lake 956S Substation and Associated Transmission Lines Facility Application, Proceeding 1632, Applications and , March 27, Needs Identification Document Approval U , Proceeding 1632, Application , March 27, Decision (Errata): Bonnyville to Bourque Transmission Project, Proceeding 1855, Application , July 23, Decision : St. Paul Transmission Project, Proceeding 2024, Application , December 20, Decision D (August 23, 2016)

5 St. Paul 707S substations redundant. Pursuant to Permit and Licence U and Permit and Licence D , 9 ATCO Electric has approval to remove the existing 72-kV equipment at the Bonnyville 700S and St. Paul 707S substations. 12. Segments of the transmission line are located within the county road allowance of the Municipal District of Bonnyville and the County of St. Paul, and other segments are on private land with a right-of-way width of approximately six metres. 13. ATCO Electric conducted a participant involvement program in accordance with Rule 007: Applications for Power Plants, Substations, Transmission Lines, Industrial System Designations and Hydro Developments and notified all landowners, occupants, agencies, industries, First Nations and other interested parties within 800 metres of the proposed project. Information packages were mailed out to all stakeholders in January 2013 to notify them of the proposed project, to provide project-specific details, and to facilitate identification of any questions or concerns. Due to construction delays related to the St. Paul transmission project, stakeholders were re-notified about the proposed project in November ATCO Electric conducted personal consultation with occupants, residents and landowners on or directly adjacent to the transmission line s existing right-of-way. ATCO Electric stated that some participants expressed concerns regarding the compensation amounts payable for facilities remaining on private property. ATCO Electric asserted that landowners are compensated for adverse effects and loss of production due to the presence of transmission structures on their land. ATCO Electric stated that following the decommissioning and conversion of the transmission line to distribution service, landowners with structures on their property would not be eligible to renew their annual compensation agreements and that affected landowners would receive the remaining payments of their annual compensation agreement as a one-time payment following the conversion of the transmission line. 15. ATCO Electric added that the surface lands rights for the transmission line route were previously obtained and that additional acquisition of lands was not required for the conversion of the transmission line to distribution service. ATCO Electric confirmed that it would adhere to the terms and conditions of the applicable right-of-way agreements and easements. Further, ATCO Electric indicated that the 1959 Utility Right-Of-Way agreements for the transmission line made no distinctions for usage or conversion of usage between transmission and distribution. Since the agreements have not been amended since the time of its acquisition of the right-of-way, ATCO Electric submitted that the original agreements applied and the rights-of-way in question were not being repurposed but modified in a way that was consistent with the original agreements ATCO Electric also stated that it planned to coordinate its activities with agricultural operations in order to minimize any impacts. ATCO Electric would provide compensation, should activities occur in the harvest season or impact farming activities. Another concern brought up by stakeholders related to power outages during the proposed project work Substation Permit and Licence U , Proceeding 3560, Application , December 11, Substation Permit and Licence D , Proceeding 20041, Application A003, January 28, Exhibit X0045, Response to AUC Information Request: Round 3, PDF pages 2-3. Decision D (August 23, 2016) 3

6 ATCO Electric stated it would provide a three day notification if there would be numerous or prolonged outages in the proposed project area. 17. ATCO Electric submitted that the proposed scope of activity associated with the decommissioning, salvage and conversion of portions of the transmission line would be minor, with no significant impacts to adjacent landowners or the environment. 18. ATCO Electric stated that it would undertake conversion and salvage activities in accordance with both Alberta Environment and Parks Environmental Protection Guidelines for Transmission Lines and ATCO Electric s Environmental Protection Plan. 19. With regards to noise, ATCO Electric stated that any significant noise or traffic would generally be limited to the salvage activities. 20. ATCO Electric considered the potential for encountering any sites with historical resource value to be very low and anticipated that any historical resources identified within or near the proposed right-of-way could be avoided and mitigated. ATCO Electric received Historical Resources Act clearance on November 22, The proposed project was tentatively scheduled to start in June 2016 and was to be completed by the end of December The schedule was based on ATCO Electric s assumption that the construction of transmission lines 7L139 and 7L70, and the re-build of the St. Paul 707S Substation would be completed before the proposed project. 22. The proposed project was estimated at a cost of $3,412,075 (within +10 per cent/-10 per cent accuracy) and would be classified as a system related cost. 4 Findings 23. The proposed project is intended to meet the need identified by the Alberta Electric System Operator in the Central East Transmission Development needs identification document, and approved by the Commission in Decision and Approval U More specifically, it falls within the need identified in component 1, of stage 1, of the Bonnyville and St. Paul areas, in this approval. The Commission finds that the application addresses this component of Approval U The Commission finds that the application complies with the information requirements as well as technical and environmental requirements, prescribed in Rule The Commission also finds that the participant involvement program undertaken by ATCO Electric meets the requirements of Rule 007 since the notification included landowners, occupants, agencies, industries, First Nations and other interested parties within 800 metres of Decision : Alberta Electric System Operator Central East Needs Identification Document Amendment and Watt Lake 956S Substation and Associated Transmission Lines Facility Application, Proceeding 1632, Applications and , March 27, Needs Identification Document Approval U , Proceeding 1632, Application , March 27, Decision D (August 23, 2016)

7 the proposed project. Additionally, ATCO Electric consulted with occupants, residents and landowners on or directly adjacent to the transmission line s existing right-of-way. 26. The Commission observes that ATCO Electric plans to coordinate its decommissioning activities with agricultural operations in order to minimize any adverse effects, to provide compensation if activities occur in the harvest season or affect farming activities, and to provide a three day notification should there be numerous or prolonged outages in the proposed project area. The Commission finds these mitigation measures to be sufficient. 27. The Commission recognizes that the compensation payments for the landowners in the project area may change; however, as noted in the standing ruling, the issue of compensation is a matter for the Surface Rights Board. 13 The Commission also recognizes that ATCO Electric will make the remaining payments as a one-time payment. 28. The Commission finds, based on ATCO Electric s application, that the proposed project will not result in any significant environmental effects. 29. The Commission accepts ATCO Electric s statement that any significant noise will be generally limited to salvage activities. 30. Based on the foregoing, the Commission considers the application to be in the public interest in accordance with Section 17 of the Act. 5 Decision 31. Pursuant to sections 14, 15, 19 and 21 of the Hydro and Electric Energy Act, the Commission approves the application and grants ATCO Electric the approval set out in Appendix 1 Decommission and Salvage Approval D August 23, Appendix 1 will be distributed separately. Dated on August 23, (original signed by) Henry van Egteren Commission Member 13 Exhibit X0041, AUC Ruling on Standing, PDF page 4, paragraph 21. Decision D (August 23, 2016) 5

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