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SHAPE the conversation May 2015 Thickwood Hills Transmission PROJECT The Thickwood Hills Transmission Project is needed to connect planned critical transmission infrastructure, that will reinforce the electrical system in northeast Alberta, to the provincial electric system. The project will be located approximately 16 kilometres (km) west of Fort McMurray. If approved, the project will include the construction of a new substation and approximately 24 km of new transmission lines. The new lines will connect the planned Thickwood Hills substation (to be called 951S) to two existing transmission lines (called 9L01 and 9L07). Small segments of the existing transmission lines will be removed or altered. The project will also include a new telecommunication tower, control building, back up generator and aquisition of land for the critical transmission infrastructure project. ATCO Electric is seeking your input on how this project may affect you. Alberta s growing population and expanding industry are driving an increasing need for power. New projects are being planned to meet those needs. ATCO Electric s consultations with landowners and other stakeholders routinely lead to improvements on our projects. We routinely adjust transmission project plans as a result of feedback gathered during our consultations with those affected. The AUC ATCO Electric - A Regulated Utility Alberta s electrical system is regulated by the Alberta Utilities Commission (AUC). The AUC is an independent agency of the province that ensures the fair and responsible delivery of utility services. Before ATCO Electric can begin construction on a project, the AUC must approve the facilities application, which includes details such as location of transmission facilities and routes. For more information, please refer to the enclosed AUC brochure, Public involvement in a proposed utility development. This package provides important project information and outlines ATCO Electric s public consultation process. We invite any comments, questions or concerns you may have. Please refer to the back page for our contact information. PROJECT Newsletter 1

The Project If approved, the Thickwood If approved, the Thickwood Hills Hills Transmission Project transmission project will involve will involve the construction the construction of the new of a new substation and Thickwood Hills substation and approximately 24 km of new approximately 20 kilometres of transmission lines. The new new transmission line. The new lines will connect the planned line will connect the planned Thickwood Hills substation Thickwood Hills substation to existing transmission lines. to Small two portions existing of transmission the existing lines. transmission Small segments lines will be of the existing removed transmission or altered. lines will The be project decommissioned. will also include The one project new telecommunication will also include one tower, new telecommunication control building and tower back and up back generator. up generator. The Process Please let us know if you have any questions, concerns and/or suggestions regarding this project. You can provide feedback and share other information using the enclosed reply form and postage paid envelope. Once feedback has been considered and the project details have been finalized, ATCO Electric will submit a facilities application to the AUC to obtain approval for the construction and operation of the planned transmission facilities. If you are in the direct vicinity of the planned facilities, ATCO Electric will contact you in the coming weeks to schedule a personal consultation. Transmission Facilities Prior to initiating consultation on the project, ATCO Electric considers numerous routing and siting constraints and barriers. The planned site for the Thickwood Hills substation was chosen to ensure: suitable site conditions; good access; sufficient space for initial development and incoming lines; adequate setback from adjacent development; and optimal usage of existing disturbed areas. The planned routes for the transmission lines were chosen to: follow existing linear disturbances, other rightsof-way or property boundaries wherever possible; minimize impacts on pipelines, oil and gas operations, electrical rights-of-way, and communication facilities; minimize fragmentation to the environment; and maximize safety. The project area is predominantly Crown land with considerable oil and gas development. The enclosed map shows the planned site and routes for this project. Facilities have been located in an effort to minimize impacts on industrial operations and the environment. Feedback and ongoing study of the project area will be used to further refine the planned substation site and routes to reduce potential impacts. Route refinements typically involve localized adjustments to the line location or position of structures in response to newly identified concerns and constraints. The schedule Public consultation begins with sharing information about the project and inviting input. We gather your input. Based on this input and other factors, adjustments to plans may be made. ATCO Electric submits an application to the AUC to build the proposed facilities. The AUC reviews the application in a public process*. If approved, construction of the new facilities begins. Public consultation is a continuous process that occurs throughout the life of the project. *For more information about how you can participate in the AUC process, please refer to the enclosed brochure entitled: Public involvement in a proposed utility development.

The Right-of-Way The term right-of-way refers to the area a transmission line uses - including areas on either side of the line. Rights-of-way must have a minimum width to ensure safety and ongoing access for maintenance. For safety reasons, some general restrictions on the use of the land in the direct vicinity of the transmission line may apply. These include setback distances for development. In some situations, the right-of-way will follow existing features like a road, pipeline or another power line. The typical right-of-way width for this project is 40 metres (m). Other dimensions will depend on the type and size of the required structure, existing land use, surrounding features and other factors. Once the planned transmission facilities have been finalized, ATCO Electric will submit applications to the AUC for approval and to Alberta Environment and Sustainable Resource Development (AESRD) to obtain the land rights for dispositions on Crown land. Temporary Workspace Temporary workspace may be required along the edge of the right-of-way and in other selected locations. If needed, this temporary workspace will be used to install the structures and string the transmission line. At corners or locations where the line bends, additional areas may be required to string the transmission line and accommodate the movement of equipment. Temporary workspaces will be reclaimed upon the completion of construction activities. Temporary workspace can range from 60 m to 105 m in length by 30 m wide. However, the exact locations of all temporary workspace and structures have yet to be determined, and dimensions may vary with final plans. Off right-of-way access will be required at the north end of the project area to allow for construction access. Where applicable, arrangements for temporary workspace and off rightof-way access located outside of the boundaries of the right-of-way will be discussed and negotiated with landholders individually. Project Notification (selected site & route) DECEMBER 2015 application filed with the AUC SEPTEMBER 2018 facilities completed and operating MAY 2015 to DECEMBER 2015 WINTER 2016/17 consultation with landholders if approval is granted by the AUC, construction begins

CONTACT INFORMATION Your comments and concerns are important to us. Please contact us if you would like to learn more about this project or if you would like to share information with us. Call us toll free at: 1-855-420-5775 or contact the project planner directly: Nicole Hupka Right-of-Way Planning ATCO Electric 10035-105 Street Edmonton, AB T5J 2V6 Phone: 780-733-2734 Email: consultation@atcoelectric.com Website: atcoelectric.com Fax: 780-420-5030 Project Need When upgrades to Alberta s electrical system are needed, they are identified by the Alberta Electric System Operator (AESO). 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.

The Technical Details May 2015 PROJECT fact sheet 1 Thickwood hills Transmission PROJECT This fact sheet describes the technical details of facilities associated with the Thickwood Hills Transmission Project. Designs may vary as plans are finalized. Double Circuit Steel H-Frame Structures Approximately 20 kilometres (km) of new double-circuit transmission line will be built to connect the Thickwood Hills substation to an existing transmission line (called 9L01). If approved, a small section of transmission line 9L01 will be altered, splitting the existing line into two separate lines (called 9L01/9L30). THE DETAILS The newly constructed transmission line will consist of: steel double-circuit H-Frame structures two sets of three conductor wires two overhead shield wires To accomodate the new line, alterations to the existing transmission line 9L01 will be required. New Thickwood Hills Substation The substation (to be called 951S) is being planned to provide support to the existing electrical system. If approved, the new substation will be located approximately 16 km west of Fort McMurray located on Sections 32 & 33-89-11 W4M and 4 & 5-90-11 W4M (see reference map attached). THE DETAILS The new Thickwood Hills substation will be part of the planned reinforcement of the 240-kV tranmission system. The substation will consist of: nine 240-kV circuit breakers one +200/-100 MVAr, static var system one 100 MVAr, 240-kV capacitor bank one propane powered standby generator associated switches and equipment As part of this project ATCO Electric is planning to construct a new telecommunication tower and control building (please refer to the enclosed project fact sheet). Single Circuit Wood H-Frame Structures Approximately four kilometres of new single circuit transmission line will be added to connect the existing transmission line 9L07 to the Thickwood Hills substation. If approved, a portion of the existing transmission line 9L07 will be removed, splitting the existing line into two separate lines (called 9L07/9L112). THE DETAILS The newly constructed transmission line will consist of: wood H-Frame structures three conductor wires two overhead shield wires Following construction, approximately three kilometres of the existing transmission line (9L07) will be removed.

What It Will Look Like If approved by the Alberta Utilities Commission, the new transmission line will be built with double circuit steel H-Frame structures and single circuit wood H-Frame structures, similar to those shown below. The new structures for transmission lines 9L07 and 9L112 will be single-circuit. This means that they will have one set of three wires strung across them. Two overhead shield wires will be strung from the tops of the structures to protect the line from lightning. Typically, the structures will be 20 m tall with a maximum width of 16 m. The distance between the structures will range from 180 to 220 m. The new structures for transmission lines 9L01 and 9L30 will be double-circuit. This means that they will have two sets of three wires strung across them. Two overhead shield wires will be strung from the tops of the structures to protect the line from lightning. Typically, the structures will be approximately 33.5 m tall with a maximum width of 12 m. The distance between the structures will range from 180 to 220 m. Non-typical structures with wider bases and/or guy wires and anchors will 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. Details may change as the project develops and designs are finalized. 20 m 33.5 m 16 m 12 m Single-circuit Wood H-Frame Structure (Drawing not to scale) Double-circuit Steel H-Frame Structure (Drawing not to scale) Definitions Circuit: A circuit is a group of wires electricity flows through. ATCO Electric s transmission lines can be single or double circuit. A single circuit line has three wires and a double circuit line has six. A transmission line may also have one or two shield wires on the top of the structures to protect the line from lightning. Consultation: A meeting where advice, information and views are exchanged. Easement: A right to use private or crown land for the placement of transmission lines and structures. Kilovolt (kv): A kilovolt is equal to one thousand volts. This unit of measurement is most commonly used when describing transmission and distribution lines. Distribution and transmission lines in Alberta carry between 4-kV (4,000 volts) and 500-kV (500,000 volts). Right-of-way: A right-of-way is the use of a strip of land acquired for the construction and operation of a transmission line. The term right-of-way is also used to refer to the physical space a transmission line encompasses, including areas on either side of the line. Termination: A termination is the point where a power line ends and connects to a substation. consultation@atcoelectric.com 1-855-420-5775 (Toll-free)

Telecommunication Tower May 2015 Project fact sheet 12 thickwood hills substation telecommunication tower A new telecommunication tower is needed at the planned Thickwood Hills substation to support and enhance ATCO Electric s radio and data communication network. If approved, a new 30 metre (m) telecommunication tower will be constructed as part of the Thickwood Hills transmission project. Tower DETAILS If approved, the planned telecommunication tower will be located at the new Thickwood Hills substation site located on Sections 32 & 33-89-11 W4M and 4 & 5-90-11 W4M. The telecommunication tower is planned to be located within the Thickwood Hills substation site (see the enclosed map). The project will include the construction of a new 30 m tower and installation of related electrical and telecommunications equipment. The tower will support one microwave dish for use by ATCO Electric and one VHF/UHF antenna. Design Requirements The new tower will meet Transport Canada s aeronautical safety requirements and will be operated in compliance with Health Canada s Safety Code 6 for the protection of the general public and local radio environment. Design and construction will meet applicable standards and will follow good engineering practices, including structural integrity. Impacts No significant adverse environmental effects are expected. Neighbouring landholders may notice some increased traffic and noise during construction. An environmental assessment under the Canadian Environmental Assessment Act is not required for this project. Questions? If you have any questions or concerns regarding the Thickwood Hills substation telecommunication tower, please contact us by June 30, 2015. ATCO Electric right-of-way Planning Toll free: 1-855-420-5775 10035-105 Street Direct: 780-508-4589 Edmonton, AB T5J 2V6 Email: consultation@atcoelectric.com General information relating to antenna systems is provided on Industry Canada s Spectrum Management and Telecommunication website at www.strategis.ic.gc.ca/antenna. For questions regarding land use in the project area, please contact Regional Municipality of Wood Buffalo at 1-800-973-9663.

What It Will Look Like P-22A72G 30 m SD314-H 31 meters (101 30 meters (98 25 meters (82 20 meters (65 Regulatory Process ATCO Electric is seeking approval from the Alberta Utilities Commission (AUC), Industry Canada and other agencies as required for the construction and operation of the planned telecommunication tower. For more information about how you can participate in the approval process required by the AUC, please refer to the enclosed brochure entitled Public involvement in a proposed utility development. A separate approval process is required by Industry Canada. To participate in this process, please call Industry Canada toll free at 1-800-328-6189 or directly at 613-954-5031. You can also contact them by email at spectrum.edmonton@ic.gc.ca. 15 meters (49 10 meters (32 5 meters (16.4 4.9 m Typical Self-Supporting Lattice Tower (Drawing not to scale) consultation@atcoelectric.com 1-855-420-5775 (Toll-free)

October 24, 2014 Dear Stakeholder, Re: Thickwood Hills 240 kv Transmission Development and Reactive Power Reinforcement Update I am writing to inform you about a change to some information we sent earlier this year. In April we sent out a newsletter describing the need for new transmission development in the Fort McMurray area. In the newsletter we explained that a new 240,000 volt (240 kv) substation and new 240 kv transmission lines are needed in the Thickwood Hills area to connect the Fort McMurray 500 kv Transmission project to the grid. We also explained that new equipment is needed to better manage voltage in the area. This new equipment is needed in the new Thickwood Hills substation, and also in the existing Quigley and Engstrom substations. However, after further consideration, we have determined that the new equipment needed in the Quigley and Engstrom substations will no longer be included in this application. We will include this equipment in a future application instead. Please refer to the maps on the next page for further clarification. The original newsletter we sent out in April can be found at www.aeso.ca/thickwood We plan to the file this application later this year or early in January 2015, under the new name Thickwood Hills 240 kv Transmission Development. Please contact us at 1-888-866-2959 or stakeholder.relations@aeso.ca if you wish to discuss this information further. Yours truly, Matt Gray Corporate Communications Page 1 Public

Thickwood Hills 240 kv Transmission Development April 2014 October 2014 The map on the top appeared in our Thickwood Hills 240 kv Transmission Development and Reactive Power Reinforcement newsletter which we sent out in April of this year. The green shaded area on this map shows the approximate area where transmission developments are needed. It also shows substations south of Fort McMurray where new equipment is needed to support voltage in the area. The need for this voltage support equipment will now be removed from our Thickwood Hills application. The map on the bottom has been revised to show this change. We will apply for the voltage equipment in a future application instead. Page 2

Thickwood Hills 240 kv Transmission Development and Reactive Power Reinforcement At the Alberta Electric System Operator (AESO), we plan the province s electric transmission system. We study the transmission system to determine what future upgrades and expansions will be needed to continue to serve Alberta s growing power demands. HOW DOES THE AESO DETERMINE THE NEED FOR TRANSMISSION DEVELOPMENT? Alberta s growing population and expanding industry are driving an increasing demand for power. Power generation developers are planning and building new power plants to meet this demand. The transmission system must have enough capacity to transmit power from where it is generated to where it will be used. Why transmission development is needed? New transmission development is being planned in the Fort McMurray area. Transmission development is needed to connect the Fort McMurray West 500 kv Transmission Project to the existing transmission system in the Thickwood Hills area, west of Fort McMurray. New development is also needed to provide voltage stability in the Fort McMurray area. The transmission developments proposed to meet these needs include: n A new 240 kv substation (called Thickwood Hills 951S*) n Two new 240 kv transmission lines connecting the new Thickwood Hills substation to existing transmission system Approximate Transmission Development Area n Reactive power equipment installed in the new Thickwood Hills 951S substation and in the existing Quigley 989S and Engstrom 2060S substations. We will be applying to the Alberta Utilities Commission (AUC) in late spring or summer of 2014 to have these proposed developments approved. Our application will be called the Thickwood Hills 240 kv Transmission Development and Reactive Power Reinforcement. * The Thickwood Hills 951S substation will later be expanded to include the 500 kv equipment associated with the Fort McMurray West transmission line. Fort McMurray As Alberta s transmission system planner, the AESO forecasts both demand from consumers and supply from generators. We study the location and amount of new generation and growing demand and develop plans to ensure Albertans continue receiving reliable power. Athabasca River Gregoire Lake Existing 2060S Engstrom Substation Gordon Lake Existing Quigley 989S Substation The shaded area on the map shows the approximate area where the proposed substation and transmission lines are needed, along with the approximate locations of the existing Quigley 989S and Engstrom 2030S substations. In a separate application, called a facilities application, ATCO Electric Ltd. (ATCO), the transmission facilities owner (TFO) in the area, will propose specific routes and siting details for the developments, and request AUC approval to construct and operate these transmission facilities. The specific transmission line routes applied for by ATCO may extend beyond the shaded area shown. For more information on AESO and TFO roles, see page 2.

AESO AND TFO ROLES The AESO operates the provincial transmission system so that all Albertans can count on safe and reliable electricity to power our homes and businesses each and every day. The AESO also carefully plans upgrades, reinforcements and expansions to the system to ensure the transmission system keeps pace with Alberta s growing demand for power. ATCO Electric Ltd. (ATCO) is the TFO in the project 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 will direct ATCO to file a facility application with the AUC, which will include a detailed description and location of the proposed transmission development. Planning for Growth in the Fort McMurray Area Fort McMurray West is a new 500 kv AC transmission line that will run from the Wabamun area west of Edmonton to the Thickwood Hills area west of Fort McMurray. We sent out information about this project earlier this year. Fort McMurray West is one of two 500 kv transmission line developments comprising the Fort McMurray Transmission System Reinforcement. The second line is the Fort McMurray East 500 kv Transmission project, a new 500 kv AC line running from the Heartland 12S substation northeast of Edmonton to the new Thickwood Hills 951S substation. The Fort McMurray Transmission System Reinforcement is one of four reinforcements that were designated as Critical Transmission Infrastructure pursuant to the Electric Utilities Act (2009). The AESO will use the Competitive Process to deliver Fort McMurray West and Fort McMurray East transmission projects. For information about the Fort McMurray West 500 kv Transmission project and the Competitive Process, please visit www.poweringalberta.com TFOs IN ALBERTA There are four major TFOs in Alberta: ATCO Electric Ltd. AltaLink EPCOR Utilities (owned by The City of Edmonton) ENMAX Power Corporation (owned by The City of Calgary) WHO IS THE ALBERTA ELECTRIC SYSTEM OPERATOR? The AESO is an independent, not-for-profit organization acting in the public interest of all Albertans. We plan Alberta s transmission system, which is made up of the transmission lines, substations and other related equipment that transmit electricity from where it is generated to where it will ultimately be used.

Transmission Development Approval in Alberta A TWO-PART PROCESS PART ONE: 1 2 APPROVAL OF NEED The AESO studies the transmission system to identify needed upgrades or expansions, and applies to the AUC for review and approval of our plans. The AUC is the regulator for transmission development in Alberta. The AESO s application to the AUC is called a Needs Identification Document, or NID. The NID outlines our specific plans to upgrade or expand the transmission system, which the AUC must approve. PART TWO: APPROVAL TO CONSTRUCT TFOs build what is in the AESO s plans. They consult with stakeholders to find specific routes for transmission lines and sites for substations. Before TFOs begin building, they submit details to the AUC in what are called Facility Applications (FAs). The AUC must review and approve the specific routes and facility locations in the TFOs applications. FAST FACT > In Alberta s electricity industry, transmission lines, substations and other related equipment used to move power are called facilities. AESO Process AESO identifies need for transmission development AESO stakeholder engagement (mailouts, open houses, meetings) AESO submits a NID to the AUC for approval of need and plan TFO Process TFO consultation, detailed design, routing and siting TFO submits a FA to the AUC for approval of siting and routing, and to construct and operate AUC Review and Approval Approval of need Approval of siting and routing, and to construct and operate To learn more about the transmission approval process please contact the Alberta Utilities Commission (AUC): Web: www.auc.ab.ca Phone: 780-427-4903 Dial 310-0000 before the 10-digit number to be connected toll-free from anywhere in Alberta. The AUC must review and provide a decision on both the AESO s application and the TFO s application before developments can proceed. While the AESO will be submitting its application for AUC review shortly, the TFO will submit its application for separate AUC review at a later date.

Other projects in the area Other transmission system developments that have received AUC NID approval in the area include: 1180 NW of Fort McMurray 240 kv Transmission System Development NID approved June 18, 2012. New 240 kv transmission lines between existing line 9L08, the new Ells River 2079S substation, and the new Birchwood Creek 960S substation, all northwest of Fort McMurray. 1267 Algar Area System Development NID approved April 18, 2013. New 240/144 kv substation called Dawes 2011S to reinforce the existing 144 kv transmission system south of Fort McMurray. 1106 Kettle River Substation and Bohn Substation NID approved March 25, 2013. New 240/144 kv substation to serve as a point of supply to industrial loads southeast of Fort McMurray. 1101 Christina Lake Area 240 kv Transmission System Development NID approved on April 24, 2012. New 240 kv transmission lines between the existing Heart Lake 898S substation and new substations called Ipiatik 167S, Pike 170S and Black Spruce 154S, all located in the Christina Lake area. Next Steps Over the coming months we will respond to any of your questions or comments. Before the proposed transmission developments can be built, the AUC must approve the AESO s NID application. ATCO must also apply to the AUC for approval to build the transmission facilities. We will apply to the AUC in the spring or summer of 2014. When we submit our NID application to the AUC, it will be available on our website at www.aeso.ca/transmission/8969.html We want to hear from you We appreciate your views, both on the need for transmission system development and our proposed transmission plans. Your comments are encouraged. If you have any questions or suggestions regarding our proposed transmission system development in the Fort McMurray area, or our application regarding this need, please contact: Matt Gray AESO Stakeholder Relations EMAIL: stakeholder.relations@aeso.ca PHONE: 1-888-866-2959 ADDRESS: 2500, 330 5th Avenue SW, Calgary, Alberta T2P 0L4 To learn more about the electricity industry and its importance to our quality of life and the province s economic well-being, please visit www.poweringalberta.com REV 0314