Decision 21481-D01-2016 October 18, 2016
Alberta Utilities Commission Decision 21481-D01-2016 Proceeding 21481 Application 21481-A001 October 18, 2016 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 Decision 21481-D01-2016 Proceeding 21481 Application 21481-A001 1 Decision summary 1. In this decision, the Alberta Utilities Commission must decide whether to approve an application from (ATCO Electric) to decommission and salvage portions of Transmission Line 6L79 (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 decommissioning and salvage of the transmission line 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. ATCO Electric, pursuant to Licence AP 87-40, 1 is the operator of the 72-kilovolt (kv) Transmission Line 6L79 from the St. Paul 707S Substation to the Vegreville 709S Substation passing through the Willingdon 711S Substation, in the St. Paul and Vegreville areas. The St. Paul 707S Substation is located in the southwest quarter of Section 17, Township 58, Range 9, west of the Fourth Meridian; the Willingdon 711S Substation is located in the northwest quarter of Section 21, Township 55, Range 14, west of the Fourth Meridian; and the Vegreville 709S Substation is located in the southwest quarter of Section 7, Township 52, Range 14, west of the Fourth Meridian. 3. ATCO Electric, pursuant to Approval 21526-D02-2016, 2 has approval to decommission and salvage the Willingdon 711S Substation. 4. ATCO Electric, pursuant to sections 14, 15, 19 and 21 of the Hydro and Electric Energy Act, filed an application with the Commission requesting approval to decommission approximately 106 kilometres of the transmission line (the proposed project). The application was registered as Application 21481-A001 on April 4, 2016 and is being considered in Proceeding 21481. 5. The Commission issued information requests on May 5, 2016, July 15, 2016, July 28, 2016, and October 11, 2016, and ATCO Electric responded on May 18, 2016, July 18, 2016, August 2, 2016, and October 12, 2016, respectively. 6. The Commission issued a notice of application on May 5, 2016, directing any person who had concerns or objections to the application, or who wished to support the application, to file a 1 2 Licence AP 87-40, Application 870362, April 13, 1987. Decommission and Salvage Approval 21526-D02-2016, Proceeding 21526, Application 21526-A001, June 9, 2016. Decision 21481-D01-2016 (October 18, 2016) 1
submission by May 27, 2016. The Commission received undeliverable mail that was then forwarded to ATCO Electric for updated information. ATCO Electric stated that it was unable to provide updated contact information for four of the stakeholders; however, it provided updated information for the others. On June 2, 2016, the Commission issued a letter and the notice of application to updated stakeholders and provided the stakeholders until June 23, 2016 to file submissions. 7. On May 27, 2016, the Commission received a statement of intent to participate from Ed and Sylvia Lapaschuk. On July 7, 2016, the Commission also received a statement of intent to participate from Ray and Marge Eliuk. Both submissions indicated that the parties objected to the application. 8. On September 21, 2016, the Commission issued its ruling on standing. 3 In the ruling, the Commission found that no party had demonstrated they had rights that may be directly and adversely affected by the Commission s decision on the proposed project. Therefore, the Commission found no hearing was required pursuant to Section 9 of the Alberta Utilities Commission Act. 3 Discussion 9. ATCO Electric stated in its application that approximately 90 kilometres of the transmission line would remain intact and be converted to 25-kV distribution voltage, 12 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 four kilometres would be salvaged entirely. Specifically, nodes A2 to A3, A4 to A5 and A6 to A7 along the transmission line would remain intact and be converted to 25-kV distribution, nodes A1 to A2 and A7 to A8 would have structures altered to be utilized for 25-kV distribution, and nodes A3 to A4 and A5 to A6 would be salvaged. 4 10. ATCO Electric stated that the need for the proposed project was identified by the Alberta Electric System Operator (AESO) in the Central East Transmission Development needs identification document, and was approved by the Commission in Decision 2013-123 5 and Approval U2013-130. 6 The need for the proposed project arose from upgrades associated with the St. Paul Transmission Project, 7 and the Watt Lake Transmission Project, which rendered the transmission line redundant. 11. Pursuant to Section 35 of the Electric Utilities Act, the AESO directed ATCO Electric to submit an application for the proposed project. ATCO Electric also has approval to remove the 3 4 5 6 7 Exhibit 21481-X0039, AUC Ruling on Standing. Exhibit 21481-X0010, Atch04_ProjectAreaMaps, PDF page 2-3 shows the node locations. Decision 2013-123: Alberta Electric System Operator Central East Needs Identification Document Amendment and Watt Lake 956S Substation and Associated Transmission Lines Facility Application, Proceeding 1632, Applications 1607984 and 1608019, March 27, 2013. Needs Identification Document Approval U2013-130, Proceeding 1632, Application 1607984, March 27, 2013. Decision 2013-446: St. Paul Transmission Project, Proceeding 2024, Application 1608654, December 20, 2013. 2 Decision 21481-D01-2016 (October 18, 2016)
existing 72-kV equipment at the St. Paul 707S Substation pursuant to Permit and Licence 20041-D04-2015. 8 12. Approval U2013-130 stipulates the discontinued use, for transmission purposes, of the Willingdon 711S Substation and of Transmission Line 6L79 between the Willingdon 711S Substation and the Vegreville 709S Substation. In response to an information request, 9 ATCO Electric asserted that the decommissioning of the line between the St. Paul 707S Substation and the Willingdon 711S Substation, while not explicitly stated in Approval U2013-130, was inferred in the Central East Transmission Development needs identification document. ATCO Electric stated that the removal of all 72-kV equipment at the St. Paul 707S Substation would remove the connection of Transmission Line 6L79, thereby effectively decommissioning the line between the St. Paul 707S Substation and Willingdon 711S Substation. 13. As part of the application, ATCO Electric filed the final functional specification from the AESO that stated the requirement to discontinue use of the existing Transmission Line 6L79 from the St. Paul 707S Substation to the Vegreville 709S Substation. 10 14. The transmission line currently has distribution circuits mounted under the transmission conductors for portions of line. ATCO Electric stated that the distribution circuits are required to supply local residences and industry with power and, therefore, must remain in place. 15. Segments of the transmission line are located within the county road allowances of the County of St. Paul, the County of Two Hills and the County of Minburn. Other segments are on private land within a six metre right-of-way. 16. 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 November of 2012 to notify them of the proposed project, to provide proposed 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 of 2015. 17. 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 and following the decommissioning and conversion of the transmission line to distribution service, landowners with structures on their property would not be eligible for compensation. 8 9 10 Substation Permit and Licence 20041-D04-2015, Proceeding 20041, Application 20041-A003, January 28, 2015. Exhibit 21481-X0041, Response to AUC Information Request Round 4, PDF Page 3. Exhibit 21481-X0005, Functional Specification, PDF page 11. Decision 21481-D01-2016 (October 18, 2016) 3
18. 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, 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 were being modified in a way that was consistent with the original agreements. 11 19. Other stakeholders expressed concerns with power outages resulting from the proposed project. ATCO Electric stated that, when possible, it would provide at least three days notification through personal calls from the distribution department before a smaller outage. For large outages, ATCO Electric stated that it would attempt to utilize its Electric Outage Notification System, which is an automated call to affected parties. 20. ATCO Electric also stated that it planned to co-ordinate 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. 21. 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. 22. 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. 23. With regard to noise, ATCO Electric stated that any significant noise or traffic would generally be limited to the construction and salvage activities. 24. 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 August 23, 2012. 25. The costs estimate for the proposed project is $4,170,313 (within +/- 10 per cent accuracy) and would be classified as a system-related cost. 4 Findings 26. The proposed project is intended to meet the need identified by the AESO in the Central East Transmission Development needs identification document, and approved by the Commission in Decision 2013-123 12 and Approval U2013-130. More specifically, it falls within 11 12 Exhibit 21481-X0037, Response to AUC Information Request: Round 3, PDF page 2. Decision 2013-123: Alberta Electric System Operator Central East Needs Identification Document Amendment and Watt Lake 956S Substation and Associated Transmission Lines Facility Application, Proceeding 1632, Applications 1607984 and 1608019, March 27, 2013. 4 Decision 21481-D01-2016 (October 18, 2016)
the need identified in component 1, of stage 1, of the Bonnyville and St. Paul areas. The Commission finds, based on its review of the need approved in Approval U2013-130 that, while Approval U2013-130 does not specifically list the decommissioning of Transmission Line 6L79 between the St. Paul 707S Substation and the Willingdon 711S Substation, the removal of all 72- kv equipment at the St. Paul 707S Substation and the decommission and salvage of the Willingdon 711S Substation does effectively require the transmission line to be decommissioned. Based on the above, the Commission finds that the application meets a portion of the need identified in Approval U2013-130. 27. The Commission finds that the application complies with the information requirements as well as the technical and environmental requirements, prescribed in Rule 007. 28. The Commission also finds that the participant involvement program undertaken by ATCO Electric meets the requirements of Rule 007 because the notification included landowners, occupants, agencies, industries, First Nations and other interested parties within 800 metres of 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. 29. 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. 30. The Commission recognizes that the compensation payments for the landowners in the proposed project area may change, and should any concerns arise, the issue of compensation falls under the jurisdiction of the Surface Rights Board. 13 31. The Commission finds, based on ATCO Electric s application, that the proposed project will not result in any significant environmental effects. 32. The Commission accepts ATCO Electric s statement that any significant noise will be generally limited to construction and salvage activities. 33. Based on the foregoing, the Commission considers the application to be in the public interest in accordance with Section 17 of the Alberta Utilities Commission Act. 13 Exhibit 21481-X0039, AUC Ruling on Standing, PDF page 3, paragraph 17. Decision 21481-D01-2016 (October 18, 2016) 5
5 Decision 34. 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 21481-D02-2016 October 18, 2016. (Appendix 1 will be distributed separately). Dated on October 18, 2016. Alberta Utilities Commission (original signed by) Henry van Egteren Commission Member 6 Decision 21481-D01-2016 (October 18, 2016)