Alberta Electric System Operator Saleski Transmission Project Needs Identification Document

Decision 2013-127 Alberta Electric System Operator Saleski Transmission Project Needs Identification Document ATCO Electric Ltd. Saleski 901S Substation and 144-kV Transmission Line 7L142 Facility Application April 4, 2013

The Alberta Utilities Commission Decision 2013-127: Alberta Electric System Operator Saleski Transmission Project Needs Identification Document Application No. 1608802 ATCO Electric Ltd. Saleski 901S Substation and 144-kV Transmission Line 7L142 Facility Application Application No. 1609105 Proceeding ID No. 2116 April 4, 2013 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

The Alberta Utilities Commission Calgary, Alberta Alberta Electric System Operator Saleski Transmission Project Needs Identification Document Decision 2013-127 ATCO Electric Ltd. Applications No. 1608802 Saleski 901S Substation and 144-kV Transmission Line 7L142 and No. 1609105 Facility Application Proceeding ID No. 2116 1 Introduction 1. The Alberta Electric System Operator (AESO) filed a needs identification document as Application No. 1608802 (the NID application) with the Alberta Utilities Commission (AUC or the Commission) on September 7, 2012, pursuant to Section 34(1)(c) of the Electric Utilities Act, requesting approval of the need for a new point-of-delivery substation and 144-kilovolt (kv) transmission line (the project). The project will serve Laricina Energy Ltd. s Saleski steam assisted gravity drainage facility (the Laricina facility) industrial load, approximately 75 kilometres northeast of the hamlet of Wabasca-Desmarais in the Municipal District of Opportunity No. 17. 2. The AESO assigned the project to ATCO Electric Ltd. (ATCO Electric) pursuant to Section 35 of the Electric Utilities Act. ATCO Electric filed Application No. 1609105 (the facility application) with the AUC on December 6, 2012, pursuant to sections 14, 15 and 18 of the Hydro and Electric Energy Act, requesting approval for a system development to meet the needs identified in the NID application. ATCO Electric requested approval to: Construct a new substation designated as Saleski 901S substation. Construct a new 144-kV transmission line, designated as 7L142, between the new Livock 939S substation (currently under construction) 1 and the proposed Saleski 901S substation. Alter the new Livock 939S substation by adding new equipment, including one 144-kV circuit breaker. Modify one structure on existing 240-kV transmission line 9L57, 2 in order to facilitate a crossing by the proposed 144-kV transmission line 7L142. 2 Application process 3. Pursuant to Section 15.4 of the Hydro and Electric Energy Act, both the AESO and ATCO Electric requested that the Commission jointly consider the NID application and the facility application. The Commission subsequently advised both the AESO and ATCO Electric 1 Livock 939S substation was initially approved by Permit and Licence No. U2011-134. 2 Transmission Line Permit and Licence No. U2012-310. AUC Decision 2013-127 (April 4, 2013) 1

that the NID application and the facility application had been combined and were being considered together in Proceeding ID No. 2116. 4. The Commission issued a notice of applications on March 7, 2013, with a deadline to file submissions to the AUC by March 27, 2013. The notice of applications was sent directly to all interested parties, residents and landowners within 800 metres of all facilities associated with the project. No interventions were received by the Commission. 3 Discussion 3.1 NID application 5. In the NID application, the AESO indicated that ATCO Electric requested a new point-of-delivery substation to serve the Laricina facility. To meet the need, the AESO proposed a new substation, to be designated as Saleski 901S, with one 144/25-kV, 30/40/50-megavoltampere (MVA) transformer, and proposed to connect the new substation to the approved Livock 939S substation 3 with a new 144-kV transmission line. In addition, the AESO indicated that alterations would be required at Livock 939S substation to accommodate connection of the new transmission line. 6. The AESO coordinated with ATCO Electric to carry out a joint participant involvement program which gave stakeholders an opportunity to raise any concerns regarding the need or the facilities proposed for the project. 3.2 Facility application 7. ATCO Electric stated that the proposed Saleski 901S substation would be located approximately 75 kilometres northeast of the hamlet of Wabasca-Desmarais in LSD 16 of Section 22, Township 85, Range 19, west of the Fourth Meridian, directly west of the Laricina facility. ATCO Electric submitted that the Saleski 901S substation site was selected to minimize the length of the connecting 144-kV transmission line while still allowing for access from an existing road. As well, there are no permanent residences within 800 metres of the proposed substation site. 8. ATCO Electric submitted that it intended to connect the proposed substation to Livock 939S substation by constructing a 7.9-kilometre single-circuit 144-kV transmission line, to be designated as 7L142. The Livock 939S substation is located in the northwest quarter of Section 18 and the west half of Section 19 of Township 85, Range 19, west of the Fourth Meridian and in the northeast quarter of Section 13 and the southeast quarter of Section 24 of Township 85, Range 20, west of the Fourth Meridian. 9. ATCO Electric explained that one new 144-kV circuit breaker would need to be added to the Livock 939S substation in order to support connection of transmission line 7L142. 10. ATCO Electric explained that it based its proposed transmission line route primarily on physical and environmental constraints between the Livock 939S substation and the proposed Saleski 901S substation site, as well as from feedback received through its participant 3 Substation Permit and Licence No. U2012-307, Application No. 1608586, Proceeding ID No. 1974, July 12, 2012. 2 AUC Decision 2013-127 (April 4, 2013)

involvement program. ATCO Electric further explained that the proposed route was selected in consultation with the hamlet of Wabasca-Desmarais, the Crown land lease holder in the area. 11. ATCO Electric submitted that the proposed route has the shortest possible length, and that most of the route is situated along pre-existing industrial development. The proposed route would parallel existing linear disturbances for 90 per cent of its length and, therefore, would require less clearing due to the adjacent rights-of-way. 12. ATCO Electric also submitted that the proposed route would have no significant environmental impacts that would trigger a review under the Environmental Protection and Enhancement Act. The proposed routing would also minimize habitat fragmentation by following existing or proposed linear disturbances. 13. Although the proposed project would be located approximately 15 kilometres outside of the region covered by the Lower Athabasca Regional Plan (LARP), ATCO Electric indicated that the proposed project was developed to align with the regional outcomes of the LARP 4 and asserted that the proposed project would not affect ambient air, surface water or groundwater quality. 14. To accommodate a crossing of the proposed 144-kV transmission line under existing transmission line 9L57, ATCO Electric stated that it would need to relocate one structure on existing 240-kV transmission line 9L57 ten metres to the south along the existing centreline of the right-of-way. 15. ATCO Electric stated that it initiated the joint participant involvement program for the need and facilities proposed for the project. In January and February 2012, ATCO Electric conducted preliminary consultation with landholders, occupants, agencies and other interested parties potentially affected by the project. ATCO Electric submitted that there were no private landholders within 800-metres of the proposed transmission line route and new substation site. At that time, ATCO Electric also initiated its aboriginal consultation program. 16. ATCO Electric advised that it mailed a project-specific information package to 32 landholders, agencies and other interested parties within at least 800 metres of the proposed transmission line route and new substation site in March 2012. ATCO Electric further advised that it mailed out an updated project-specific information package to the same parties in August 2012. 17. ATCO Electric confirmed that there were no outstanding concerns or objections from any of the consulted parties. 18. ATCO Electric stated it would construct the substation and transmission facilities in compliance with Alberta Environment and Sustainable Resource Development s R&R/11-03, Environmental Protection Guidelines for Transmission Lines and has committed to the measures described in the Conservation and Reclamation document to reduce environmental impacts of the project. 5 19. ATCO Electric indicated that it received Historical Resource Act clearance from Alberta Culture. 4 5 Exhibit 008, page 22, paragraphs 87 to 93. Exhibit 008. AUC Decision 2013-127 (April 4, 2013) 3

20. ATCO Electric filed a noise impact assessment summary form for the proposed Saleski 901S substation and an noise impact assessment for the Livock 939S substation. Both assessments predicted the cumulative sound levels at the substations would be in compliance with the permissible sound levels specified in AUC Rule 012: Noise Control (AUC Rule 012). 21. ATCO Electric estimated the cost for the project would be approximately $21 million. The entire amount would be a customer cost. 22. ATCO Electric s targeted completion date for the Saleski transmission project is November 2014. 4 Findings 23. The Commission finds that the NID application contains all the information required by the Electric Utilities Act, the Transmission Regulation and AUC Rule 007: Applications for Power Plants, Substations, Transmission Lines, and Industrial System Designations (AUC Rule 007). 24. Because no interested party has demonstrated that the AESO s assessment of the need for the Saleski 901S substation and associated transmission facilities is technically deficient or that approval of the needs identification document is not in the public interest, the Commission considers that the AESO s assessment of the need for the proposed project is correct in accordance with subsection 38(e) of the Transmission Regulation. 25. The Commission finds that the facility application fulfills the requirements prescribed in sections 14 and 15 of the Hydro and Electric Energy Act and AUC Rule 007, including the technical, siting and environmental aspects of the project and the participant involvement program. 26. The Commission further finds that the facility application is consistent with the transmission system development as determined by the AESO in the NID application. 27. The Commission is satisfied that the noise impact assessments submitted for the substations fulfill the requirements of AUC Rule 012. 28. The Commission finds that the facility application is in the public interest pursuant to Section 17 of the Alberta Utilities Commission Act, giving consideration to the social and economic impacts of the project and the impacts of the project on the environment. 29. With regard to the existing 240-kV transmission line 9L57, the Commission finds that the proposed alteration to one structure meets the criteria for a letter of enquiry application pursuant to Section 11 of the Hydro and Electric Energy Regulation. However, under the Commission s recently updated Electric Transmission Facilities Process Guidelines November 7, 2012, 6 an application for this minor alteration to transmission line 9L57 is no longer required. Consequently, a new permit and licence to reflect the minor alteration to transmission line 9L57 is not required. 6 http://www.auc.ab.ca/acts-regulations-and-auc-rules/rules/documents/rule%20007/electrictransmissionloefacilityguidelines2012-11-07.pdf 4 AUC Decision 2013-127 (April 4, 2013)

5 Decision 30. The Commission approves the AESO s NID application, pursuant to Section 34(1)(c) of the Electric Utilities Act and Section 38 of the Transmission Regulation, and grants the approval set out in Appendix 1 Needs Identification Document Approval No. U2013-183. 31. The Commission approves ATCO Electric s facility application, and, pursuant to sections 14, 15 and 19 of the Hydro and Electric Energy Act, grants to ATCO Electric the following: Substation Permit and Licence No. U2013-184 for Saleski 901S substation as set out in Appendix 2. Transmission Line Permit and Licence No. U2013-185 for 144-kV transmission line 7L142 as set out in Appendix 3. Substation Permit and Licence No. U2013-186 for Livock 939S substation as set out in Appendix 4. 32. The appendices will be distributed separately. Dated on April 4, 2013. The Alberta Utilities Commission (original signed by) Anne Michaud Commission Member AUC Decision 2013-127 (April 4, 2013) 5