Kettle River Transmission Project

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April 2012 Why are you receiving this project information package? New transmission facilities are needed in the Fort McMurray area. ATCO Electric has been directed by the Alberta Electric System Operator (AESO) to assess site and route options for these upgrades. We have prepared this summary for landowners, occupants, agencies and interested parties located near the proposed power transmission facilities. This package provides important project information and outlines our public consultation process. We invite any comments, questions or concerns you may have. Please refer to page six for our contact information and details. Project Overview Included in this package: Project information brochure Reply form and postage paid envelope Alberta Electric System Operator (AESO) Need Overview document Alberta Utilities Commission (AUC) brochure Public Involvement in Needs or Facilities Applications Maps and drawings Enbridge Pipelines is increasing the capacity of their pipeline network in the Fort McMurray area and building the Janvier pump station. Additional transmission facilities are necessary to meet the increased demand in power associated with the pump station and future industrial development in the area. If approved, the will involve constructing one new substation and one new double-circuit transmission line. The proposed line will be about 2.8 kilometres (km) long and will connect the proposed new substation to an existing transmission line. 1

Project Need and Details When upgrades to Alberta s electrical system are needed, they are identified by the Alberta Electric System Operator (AESO). The AESO has received applications for a new substation to meet the increased regional demand for electricity. If approved, the proposed new Bohn substation will be connected to the electric system reinforcements being proposed as part of a neighbouring project. Landowners and other parties affected by the adjacent project will receive an additional project information package in the mail called Bohn to. The AESO is an independent, not-for-profit organization responsible for the safe, reliable and economic planning and operation of the provincial transmission grid. For more information about why this project is needed, please refer to the AESO s Need Overview included with this package, or visit www.aeso.ca. If you have any questions or concerns about the need for this project you may contact the AESO directly or you can make your concerns known to an ATCO Electric representative who will communicate them to the AESO on your behalf. Kettle River Substation If approved, the proposed Kettle River substation (to be called 2049S) will be located about 110 kilometres (km) south of Fort McMurray in the Regional Municipality of Wood Buffalo. The substation will be located in NW 9-80-6 W4M and will include the installation of the following: two 120/160/200 MVA, 240/144/25 kilovolt (kv) LTC transformers four 240 KV circuit breakers three 144 kv circuit breakers two 144 kv zero crossing breakers two 30 MVAR 144 kv capacitors 32 metre tall self-supporting telecommunication tower related electrical and communications equipment. The preliminary site location is shown on the enclosed map. A substation in Alberta 2

240 Kilovolt (kv) Transmission Line If approved, the project will include the construction of up to 2.8 kilometres (km) of 240 kilovolt (kv) doublecircuit transmission line. The new line will connect the proposed Kettle River substation (to be called 2049S) to an existing transmission line (called 9L990), effectively dividing the existing transmission line into two parts. Typical Steel Double-Circuit 240 kv D Tower Structure The portion of the existing line to the south of the substation will retain the name 9L990. The remaining portion of the existing line to the north of the substation will be renamed 9L45. The new transmission line connecting the existing line and the Kettle River substation will be strung on steel lattice D Tower structures (shown on the right). Non-typical structures with wider bases and/or guy wires and anchors may be required where the line ends or bends, at corners and to go over and around obstacles. In all cases, minimum clearance will meet or exceed the requirements of provincial safety regulations. Approximate Dimensions Height......50 to 56 m Max. Width.....20 m Distance between structures...250 to 400 m 3

Typical Right-of-Way Transmission lines are located in corridors that have been cleared of brush and other obstacles. These are called a right-of-way. A right-of-way must have a minimum width to ensure safety and allow for construction and ongoing access for maintenance purposes. The width of the right-of-way, and the position of transmission structures within it, will depend on a variety of factors, including the type of structure that is used. The typical right-of-ways associated with this project are shown below. Details may change as the project develops and designs are finalized. 4

Route and Site Selection The proposed Kettle River substation location was chosen to ensure the following: suitable site conditions (level, well-drained); good access; sufficient space for initial development and incoming lines; and adequate setback from adjacent development and environmentally sensitive areas. We have identified a preliminary route option for the new transmission line connecting the proposed Kettle River substation to a new substation proposed as part of the adjacent Bohn to (please see the map included with this package). Facilities Application Process Once feedback has been considered and the preliminary transmission line routes and substation location have been finalized, ATCO Electric will submit a Facilities Application to the AUC to obtain approval for the construction and operation of the proposed transmission facilities. For more information about how you can participate in the process, please refer to the enclosed AUC brochure entitled Public Involvement in Needs or Facilities Applications. This option was selected to: minimize impacts to environmentally sensitive areas such as watercourses, wet or steep areas, wildlife habitat and other sensitive areas such as designated historical sites; follow existing road allowances, linear disturbances, other right-of-ways or property boundaries wherever possible; minimize impacts on built-up areas, highways, oil and gas operations and communication facilities; and, minimize fragmentation to oil sand leases. Other options for the preliminary site and route selection may be considered if identified through our consultation process. 5

ATCO Electric Proposed Timeline* April 2012 Consultation with land owners and agencies May 2012 Selection of preferred route options June 2012 Submission of the Facilities Application to the Alberta Utilities Commission (AUC) December 2012 If approval is granted by the AUC, construction will commence October 2013 Albertans count on us for the safe, reliable and costeffective delivery of electricity to their homes, farms and businesses. We have delivered electricity to Albertans for 85 years. Headquartered in Edmonton, ATCO Electric has 38 service offices serving nearly two-thirds of the province in northern and east-central Alberta. We help keep the lights on across the province by building, operating and maintaining approximately 72,000 kilometres of transmission and distribution power lines. We also operate an additional 10,000 kilometres of distribution power lines on behalf of Rural Electrification Associations. We are committed to responsible development and environmental practices. We conduct an open and transparent consultation process, carefully considering the impacts to landowners, communities and the environment. Facilities completed and operating *Timing may be adjusted to reflect final plans. Contact Us Your comments and concerns are important to us. Please contact us toll free: 1-855-420-5775 or direct: Kristen House, Project Planner ATCO Electric 10035-105 Street Edmonton, AB T5J 2V6 Phone: Fax: E-mail: Website: 780-733-2690 780-420-5030 consultation@atcoelectric.com www.atcoelectric.com 6

Need for the Kettle River 2049S and Bohn 931S substations, south of the City of Fort McMurray Transmission Development Information for Stakeholders Why is this transmission development needed? Transmission system reinforcement is required in the area south of the City of Fort McMurray to meet increasing electricity demand. The Alberta Electric System Operator (AESO) has identified the need for a new 240/144 kv source in the area. The AESO is proposing to meet this need by developing a new 240/144 kv substation, to be called Kettle River 2049S, and a new short 240 kv transmission line to connect the proposed substation to the existing 9L990 240 kv transmission line. In addition, ATCO Electric Ltd. (ATCO) has requested an increase in transmission capacity to meet growing electricity demand in the vicinity of the proposed Kettle River 2049S substation. ATCO s request can be addressed by developing a new 144/4.16 kv substation. The proposed substation, to be called Bohn 931S, will be connected to the proposed Kettle River 2049S substation with a new 144 kv transmission line. The AESO is processing ATCO s request, including providing information to landowners, occupants, residents and agencies in the Fort McMurray area that may be near the proposed transmission development. The AESO intends to apply to the Alberta Utilities Commission (AUC) for approval of this need in the summer of 2012. The AESO s needs identification document (NID) application will be available on the AESO s website at www.aeso.ca/transmission/8969.html at the time of its application to the AUC. Who is the AESO? Alberta s transmission system, sometimes referred to as the Alberta Interconnected Electric System (AIES), is planned and operated by the AESO. The transmission system comprises the high-voltage lines, towers and equipment (generally 69kV and above) that transmit electricity from generators to lower voltage systems that distribute electricity to cities, towns, rural areas and large industrial customers. The AESO s role is to maintain safe, reliable and economic operation of the AIES. The AESO s planning responsibility includes determining the need for transmission system development and the manner in which that need is met. The AESO is also mandated to facilitate the interconnection of qualified market participants to the AIES. The AESO is regulated by the AUC and must apply to the AUC for approval of its NID. 1106 Page 1 February 2012

How is ATCO involved? ATCO is the transmission facilities owner (TFO) in the Fort McMurray area. While the AESO is responsible for identifying that transmission system development is needed, ATCO is responsible for detailed siting and routing, constructing, operating and maintaining the associated transmission facilities. The AESO has directed ATCO to provide information to stakeholders on this need and to file a facility proposal application with the AUC which will include a detailed description and location of the proposed transmission development. Further Information The AESO appreciates your views on the need for transmission system development and your comments are encouraged. If you have any questions or suggestions regarding the need for the proposed transmission system development in the Fort McMurray area or the AESO s application regarding this need, please contact: Mark Sears-Gamache AESO Stakeholder Relations 1-888-866-2959 stakeholder.relations@aeso.ca 2500, 330 5 th Avenue SW Calgary, Alberta T2P 0L4 The AESO is committed to protecting your personal privacy in accordance with Alberta's Personal Information Protection Act. Any personal information collected by the AESO with regard to this project may be used to provide you with further information about the project, may be disclosed to the Alberta Utilities Commission (and as a result, may become public), and may also be disclosed to ATCO as the legal owner of transmission facilities in your area. If you have any questions about how the AESO will use and disclose your personal information, please contact us at 1-888-866-2959 or at stakeholder.relations@aeso.ca 1106 Page 2 February 2012

REPLY FORM KETTLE RIVER TRANSMISSION PROJECT 10035 105 Street, Edmonton, Alberta, T5J 2V6 CONTACT INFORMATION Date (DD/MM/YYYY): First Name: Last Name: Company/Organization Name (if applicable): Mailing Address: Please help us identify new contacts You were contacted about this project because ATCO Electric identified you or your company/organization as having a land interest in the vicinity of the project. Is there anyone else associated with your property, such as other owners, renters or occupants, who we should also contact? If so, please provide the name(s) and contact information below: City/Town: Province: Postal Code: Home Phone: Cell Phone: Business Phone: Fax: Email: I would like to receive all future correspondence about this project by Email (If this is your preference, please check the box) ABOUT PRIVACY: The information on this form is being collected to help identify potential concerns with proposed alterations and the location of proposed power transmission facilities, to facilitate communications about the project, and to comply with our obligations to the Alberta Utilities Commission. This information may be provided to the Alberta Utilities Commission, other electric facility owners or the Surface Rights Board. Information relating to the need for the facilities may be provided to the Alberta Electric System Operator. Enquiries or concerns about ATCO Electric's privacy policies can be directed to Tony Melnychuk, privacy officer (address above), phone 780-420-4466. Please list any residences, buildings or other areas on your property that should be avoided: I am not aware of any residences, buildings, facilities, or areas on my property that should be avoided (If this statement applies to you, please check the box) LOCATION DESCRIPTION (If you require additional space, please attach a separate sheet) Please share any comments or concerns that you have about the project: HOW TO SUBMIT: Please use the enclosed envelope to return by mail or fax to 780-420-5030. If you would like more information about the project, please contact us toll free 1-855-420-5775 or by Email: consultation@atcoelectric.com.