B-1-1. Janet L. Fraser Director, Regulatory Affairs Phone: Fax:

Transcription

1 B-- Janet L. Fraser Director, Regulatory Affairs Phone: 0-- Fax: October 00 Ms. Erica Hamilton Commission Secretary British Columbia Utilities Commission 00 Howe Street, Sixth Floor Vancouver, BC VZ N Dear Ms. Hamilton: Re: British Columbia Transmission Corporation (BCTC) Application on Behalf of BC Hydro and Power Authority (BC Hydro) for a Certificate of Public Convenience and Necessity (CPCN) for the Vancouver City Central Transmission Substation Distribution Assets BC Hydro and Power Authority (BC Hydro) has authorized BCTC to seek Commission approval for the VCCT Substation Distribution Assets. Therefore, BCTC files amendments to the following pages of its Application, filed with the Commission on September 00, to incorporate an application for an order issuing a CPCN for the construction and operation of the VCCT Substation Distribution Assets. Application Pages: ES-,,,, -,, Appendices: Appendix A A Revised Draft Order granting BCTC a CPCN for the construction and operation of the VCCT Project except the Substation Distribution Assets A second Draft Order is included granting BC Hydro a CPCN for the construction and operation of the VCCT Substation Distribution Assets. For further information, please contact Gordon Doyle at 0--. Sincerely, Original signed by: Janet L. Fraser Director, Regulatory Affairs cc: Registered Intervenors Suite 00, Four Bentall Centre, 0 Dunsmuir Street PO Box 0, Vancouver, BC VX V

2 Executive Summary 0 for a more secure supply of current load, the need to ensure that load growth can be met, and the need to establish a new link between the north and south Metro systems. Orders Requested Pursuant to Sections and of the Utilities Commission Act, BCTC applies to the Commission for an order issuing a Certificate of Public Convenience and Necessity (CPCN) authorizing construction and operation of the VCCT Project except for the VCCT Substation Distribution Assets. BCTC also applies to the Commission on behalf of BC Hydro for a CPCN authorizing construction and operation of the VCCT Substation Distribution Assets. Vancouver City Central Transmission Project CPCN Application ES- Revised September 00 - Revised October

3 BC Transmission Corporation Introduction 0.0 INTRODUCTION This is an Application by British Columbia Transmission Corporation (BCTC) for two orders. Unless otherwise mentioned, where the term VCCT Project is used in this Application the term is referring to the entire project including the VCCT Substation Distribution Assets. On its own behalf, BCTC applies pursuant to Sections and of the Utilities Commission Act (the Act) for a Certificate of Public Convenience and Necessity (CPCN) for the Vancouver City Central Transmission Project (VCCT Project) except for the VCCT Substation Distribution Assets. On behalf of British Columbia Hydro and Power Authority (BC Hydro), BCTC also applies pursuant to Section and of the Act for a CPCN authorizing construction and operation of the related Substation Distribution Assets (SDA) components of the VCCT Project (the VCCT Substation Distribution Assets) as described in Section. of this Application.. Overview of the VCCT Project The VCCT Project is proposed to address three needs within the Metro Vancouver regional transmission system in the central part of the city of Vancouver. These needs are: 0 (a) significant load growth in the Mount Pleasant/South False Creek area and in adjacent service areas is forecast to exceed the capacity of existing substations serving those areas; (b) approximately 0 MVA of distribution load in the Mount Pleasant/South False Creek area is served by distribution duct banks that extend south from Murrin Substation which are approaching end of-life condition requiring replacement to secure continued reliable service. In addition, these distribution duct banks traverse through seismically unstable soil and would sustain significant damage in a seismic event; and (c) circuit L, a 0 kv underground circuit from Murrin Substation to Mainwaring Substation (MAN) is in a deteriorated condition approaching end- Vancouver City Central Transmission Project CPCN Application - Revised - September 00 - Revised October

4 BC Transmission Corporation Introduction of-life and for planning purposes has been zero-rated as of November 0. In the absence of circuit L, the transmission system in the south Metro area would not meet the normal system minus one element (N-) planning criterion.. Description of Preferred Solution The preferred solution to meeting the three needs is the VCCT Project, which would consist of a new substation in the Mount Pleasant area (the Mount Pleasant Substation or MPT ) connected by two new 0 kv circuits to Sperling Substation (SPG) and to Cathedral Square Substation (CSQ). Vancouver City Central Transmission Project CPCN Application -a Revised - September 00 - Revised October

5 BC Transmission Corporation Introduction (c) providing two new 0 kv underground transmission circuits to supply the new Mount Pleasant Substation which would replace the important function of circuit L of providing a link between the North and South Metro Vancouver transmission systems, allowing supply from the north to serve the south (and vice versa) during contingencies. 0 0 The proposed project provides a cost effective and reliable solution to meet the three identified needs... Description and Location of Substation The proposed Mount Pleasant Substation would be housed in a new building occupying a 0,000 square foot site at the corner of Alberta Street and West th Avenue in the City of Vancouver. The location of the proposed substation is currently zoned light industrial, and is within an area designated by the City as the Mount Pleasant Industrial Area. The conceptual design of the proposed Mount Pleasant Substation contemplates a staged development of the substation with transmission equipment and Substation Distribution Assets (SDA) installed over time as the electrical loads served by the substation increase... Location of Transmission Circuits The Mount Pleasant Substation would be connected by underground 0 kv transmission circuits to each of Sperling Substation, which is located at Arbutus Street and King Edward Avenue, and Cathedral Square Substation, which is located at Richards Street and Dunsmuir Avenue. The routes for the proposed transmission circuits are illustrated in Figure - above... Related ProjectOverview of the VCCT Substation Distribution Assets(SDA Facilities Included in Project) In this Application BCTC, on behalf of BC Hydro, also seeks an order issuing a CPCN for the VCCT Substation Distribution Assets, as described in Section. of this Application. The major components of the VCCT Substation Distribution Assets are: 0 (a) two 0/ kv, MVA (LV winding reconnectable to kv) step- down transformers; and Vancouver City Central Transmission Project CPCN Application - Revised - September 00 - Revised October

6 BC Transmission Corporation Introduction (b) two kv, MVA GIS feeder sections. In this Application BCTC is seeking approval of the transmission components of the VCCT Project. Certain associated SDA which are described for context in Section of this Application will be constructed in conjunction with the transmission infrastructure. However, no approval of the SDA portion of the project is sought in this Application. BCTC is aware of that British Columbia Utilities Commission (Commission) has expressed concerns about the practice of seeking separate approvals of Vancouver City Central Transmission Project CPCN Application -a Revised - September 00 - Revised October

7 BC Transmission Corporation Introduction 0 0 Transmission and SDA components for related projects. In its recent F00/0 BCTC Capital Plan Decision, issued July, 00, the Commission has directed BCTC to work with BC Hydro to either accept its proposal to have either BCTC or BC Hydro seek regulatory approval for the entire projects, including both transmission and SDA components, or develop an alternative resolution to the problem. In its Decision, the Commission directed BCTC and BC Hydro to provide its report within 0 days from the date of Decision, which would be on or about October,, 00. Given the timing of that report, BCTC will update this Application, if required, once it has been filed and further directions are made by the Commission, or if BC Hydro requests that BCTC seek approval of the related SDA assets on their behalf, as is their right under the SDA Service Level Agreement.. Orders Requested BCTC seeks two orders in this Application. Pursuant to Sections and of the Utilities Commission Act, BCTC applies to the Commission for an orders issuing a Certificate of Public Convenience and Necessity (CPCN) authorizing construction and operation of the VCCT Project, except the VCCT Substation Distribution Assets. BCTC also seeks, on behalf of BC Hydro, a CPCN authorizing the construction and operation of the VCCT Substation Distribution Assets as more fully described in Section of this Application. The information contained in this Application meets the information requirements set out in the Commission s Certificates of Public Convenience and Necessity CPCN Application Guidelines (the CPCN Guidelines ) issued March 00, and BCTC submits that the VCCT Project is required and in the public convenience and necessity. A ddraft Orders areis included as Appendix A to this Application.. Consistency with Utilities Commission Act The VCCT Project, as proposed in this Application, is consistent with the Utilities Commission Act. Section of the Utilities Commission Act provides a definition of Directive, page of July, 00 Decision pertaining to the F00/0 Transmission System Capital Plan Order No. G--0 Vancouver City Central Transmission Project CPCN Application - Revised - September 00 - Revised October

8 BC Transmission Corporation Introduction government s energy objectives. Subsection (.) requires the Commission to consider the Provincial government s energy objectives in deciding whether or not to issue a CPCN. Objective (d) in the definition of government s energy objectives is to encourage public utilities to develop adequate energy transmission infrastructure. Vancouver City Central Transmission Project CPCN Application -a Revised - September 00 - Revised October

9 Project Description PROJECT DESCRIPTIONS In Section, the need for development of the transmission system in the Mount Pleasant and central Vancouver area is described. In Section, alternative solutions are evaluated and a preferred solution, the VCCT Project, is identified. The purpose of this section is to describe the preferred solution, the VCCT Project, as proposed by BCTC.. VCCT Project Components and Infrastructure The proposed VCCT Project is comprised of an indoor substation and two underground 0 kv transmission circuits. The transmission circuits would provide supply to the proposed substation from the existing Sperling and Cathedral Square Substations in the City of Vancouver. As noted in Section, BCTC is seeking approval of the transmission components of the VCCT Project through this Application. The associated Substation Distribution Assets (SDA) that would be constructed in conjunction with the transmission infrastructure are described for context in Section. (Related Projects)., however, no approval of the SDA portion of the project is sought in this Application. BCTC is aware that the Commission has expressed concern about the practice of seeking separate approvals of Transmission and SDA components within related projects. In its recent F00/0 BCTC Capital Plan Decision, issued July, 00, the Commission has directed BCTC to work with BC Hydro to either accept its proposal to have either BCTC or BC Hydro seek regulatory approval for the entirety of a combined transmission/sda project, or develop an alternative resolution to the problem. In its Decision, the Commission directed BCTC and BC Hydro to provide its report within 0 days from the date of Decision, which would fall on or about October,, 00. Given that timing, BCTC would update the Application, if required, once that Report has been filed and upon acceptance of the recommendations made in it or further directions by the Commission. The transmission components of the VCCT Project are comprised of; Directive, page of July, 00 Decision pertaining to the F00/0 Transmission System Capital Plan Vancouver City Central Transmission Project CPCN Application - Revised - September 00 - Revised October

10 Project Description (a). km of 0 kv underground transmission circuits, duct banks and associated manholes connecting the proposed Mount Pleasant Substation to the existing Cathedral Square Substation; (b). km of 0 kv underground transmission circuits, duct banks and associated manholes connecting the proposed Mount Pleasant Substation to the existing Sperling Substation; (c) transmission terminations and associated 0 kv Gas Insulated Switchgear at Sperling Substation; 0 (d) transmission terminations and associated 0 kv Gas Insulated Switchgear at Cathedral Square Substation; (e) a new substation building together with transmission terminations and associated 0 kv Gas Insulated Switchgear; and (f) facilities in common between the transmission facilities and SDA facilities within the substation, which are considered transmission facilities under the SDA Asset Management Service Agreement between BCTC and BC Hydro. 0 The VCCT Substation Distribution Assets are described in Section. below... Substation The purpose of a distribution substation is to receive electricity at transmission voltage and transform the electricity to distribution voltage which can then be supplied to customers through distribution feeders. The proposed substation would be housed in a new building occupying a 0,000 square foot site at the corner of Alberta Street and West th Avenue in the City of Vancouver. BC Hydro has acquired property totaling,000 square feet. BC Hydro is in negotiations to acquire one additional lot of,000 square feet. The building would consist of one below ground level and two above ground levels which would house both transmission assets and SDA. A conceptual design layout of the substation and artists rendering of the building is provided in Appendix I and Appendix J respectively. The methods of construction, and accordingly the expected impacts on Vancouver City Central Transmission Project CPCN Application - Revised - September 00 - Revised October

11 Project Description the public from construction, of the substation building would be similar to conventional construction of any light industrial building. Vancouver City Central Transmission Project CPCN Application -a Revised - September 00 - Revised October

12 Project Description 0 The conceptual design of the proposed Mount Pleasant Substation contemplates a staged development of the substation with transmission equipment and SDA installed over time as the electrical loads which are served by the substation increase. The equipment to be included in the initial (F0) stage, which would provide MVA of distribution feeder capacity, is shown in Table -. Subsequent stages are shown in Table -, with conversion to kv when appropriate which would raise the ultimate distribution feeder capacity of the substation to 00 MVA. This Application concerns the transmission VCCT Project assets for the initial F0 stage. Subsequent stages would be included in future BCTC Transmission System Capital Plans, as appropriate, when loads and transmission needs justify these stages. Table -. Mount Pleasant Equipment Staging (Initial Stage) Equipment Description 0/ kv, MVA step-down transformer (LV winding reconnectable to kv) 0 kv GIS position ( transformers, transmission cables) kv, MVA GIS feeder section Quantity Table -. Mount Pleasant Equipment Staging (Stages Two - Six) Stage Equipment Description Station Capacity Two Add rd kv, MVA feeder section 00 MVA 00 Three Add rd 0 kv transformer Add rd 0 kv cable termination Add th and th 0 kv GIS positions Add th kv, MVA feeder section MVA 0 Four Add th kv, MVA feeder section MVA n/a Five Add th 0 kv cable termination Add th 0 kv GIS position MVA n/a Six Add th kv, MVA feeder section 00 MVA n/a Approx.Year The substation transmission facilities, including the building itself, are comprised of the following: Beyond 0-year planning horizon. Vancouver City Central Transmission Project CPCN Application - Revised - September 00 - Revised October

13 Project Description (a) a below grade cable tunnel through which the 0 kv transmission cables would enter the building; 0 (b) a 0 kv Gas Insulated Switchgear (GIS) hall located on the ground floor. This hall would house the 0 kv GIS to which the 0 kv transmission cables would terminate. Gas insulated switchgear is necessary rather than air insulated switchgear because of space constraints present for indoor substations that would generally not be present in an outdoor substation. At the initial stage of the substation development, the 0 kv GIS would include four positions; one each for the termination of the two 0 kv transmission circuits and one each for two transformers (SDA equipment). The substation conceptual design contemplates future addition of up to three more positions to allow for future termination of two additional 0 kv circuits and one additional transformer; (c) also on the ground floor would be a lay down area accessible from the rear of the building, a battery room, and station service rooms; and (d) on the second floor would be the mechanical room which would house the HVAC equipment and the control room which would house telecommunication and protection and control equipment. 0 The remainder of the bays/rooms of the substation would contain SDA equipment,. the approval of which is not the subject of this Application. The SDA equipment would include low voltage switchgear and current-limiting feeder reactors on the main level and basement level. At ground level SDA equipment would include 0 kv step-down transformers housed within transformer bays enclosed within concrete walls. The transformer bays were designed to provide the appearance that it is part of the entire enclosed substation building, while in fact being open to the air for ventilation purposes. On the second level would be a room for future installation of capacitor banks which would become necessary in subsequent stages of substation development as the load served by the substation increases. The transformers would be capable of stepping down the voltage from 0 kv to either. kv or kv depending on how the low voltage side of the transformers was connected. Vancouver City Central Transmission Project CPCN Application - Revised - September 00 - Revised October

14 . Project Cost Project Description 0 0 In Section, BCTC described the potential solutions based on a planning level estimate of -0%/+00%. Once the preferred solution, the VCCT Project, was identified BCTC refined the forecast accuracy to -%/+0%. The forecast project cost for the transmission assets for the VCCT Project is $ million. A further $ million would be incurred for SDA (which are not the subject of this Application). The total VCCT Project cost including both transmission assets and SDA is estimated to be $0 million, based on a -%/+0% forecast accuracy. The cost estimate considers all aspects of the VCCT Project including, consultation with public stakeholders and First Nations, regulatory, engineering, procurement, property acquisition, construction, environmental monitoring and mitigation, commissioning costs, BCTC corporate overhead, inflation and interest during construction (IDC). This cost estimate includes the cost for two transmission circuits, circuit terminations at Sperling, Cathedral Square and the proposed Mount Pleasant Substation, the Mount Pleasant substation building and the substation equipment installed in the first stage (F0) of substation development. Approximately % of the project cost is for the transmission facilities which are the subject of this application with the remainder for Substation Distribution Assets. A breakdown of the project costs is shown in Table -. Vancouver City Central Transmission Project CPCN Application - Revised - September 00 - Revised October

15 Project Description. Related ProjectsThe VCCT Substation Distribution Assets and Related Distribution System Development As discussed above, the installation of the SDA components of the ProjectVCCT Substation Distribution Assets are considered to be a related project that would take place simultaneously and in conjunction with the construction of the rest of the VCCT Project. The SDA Substation Distribution Assets are project is forecast to cost $. million and consists of the SDA equipment that would be installed in the Mount Pleasant Substation. The significant SDA equipment for this SDA project equipment includes: 0 (a) two 0/ kv, MVA (LV winding reconnectable to kv) step-down transformers; and (b) two kv, MVA GIS feeder sections. In addition, concurrent with and following the VCCT Project is, BC Hydro would construct distribution feeder duct banks in the city streets to house the distribution feeders which originate at Mount Pleasant Substation and begin to transfer Mount Pleasant/South False Creek load currently served by Murrin, Sperling and Mainwaring Substation to the new Mount Pleasant Substation. Vancouver City Central Transmission Project CPCN Application - Revised - September 00 - Revised October

16 Appendix A Draft Orders

17 WHEREAS: IN THE MATTER OF the Utilities Commission Act, R.S.B.C., Chapter and An Application by British Columbia Transmission Corporation for a Certificate of Public Convenience and Necessity for the Vancouver City Central Transmission Project BEFORE: (Panel members) Month XX, 00 O R D E R A. On September, 00, the British Columbia Transmission Corporation ("BCTC") applied (the Application ) to the British Columbia Utilities Commission (the Commission ) for a Certificate of Public Convenience and Necessity ( CPCN ) to construct and operate the Vancouver City Central Transmission Project (the VCCT Project) as described in this Application; and B. BCTC is proposing the VCCT Project as the preferred solution to: i) serve load growth in the Mount Pleasant/South False Creek area, ii) resolve reliability concerns associated with the end of life condition of the Main Street distribution duct banks being used to serve the Mount Pleasant/South False Creek area, and iii) resolve reliability concerns in view of the zero-rating of transmission circuit L.; and C. The VCCT Project has an estimated capital cost of approximately $0 million of which approximately $ million is for the VCCT Substation Distribution Assets and the remainder is for The VCCT Project excluding the Substation Distribution Assets (SDA) has an estimated capital cost of approximately $0 million, and includes the construction of a new Mount Pleasant substation and the construction of a new transmission line approximately km in length that follows the route described as Route Option B; and D. By Order No. G-xx-0, the Commission established a Written Public hearing process and Regulatory Timetable for the review of the Application; and E. The XXXX, XXX and XX intervened in the proceeding; and F. Submissions in the proceeding concluded with XXXX on XXXX xx, 00; and G. The Commission Panel has considered the Application and the evidence and submissions in the proceeding and has determined that the VCCT Project is in the public interest and that a CPCN be issued to BCTC for the VCCT Project for the reasons set out in the attached Reasons for Decision.

18 NOW THEREFORE pursuant to Sections and of the Utilities Commission Act the Commission orders as follows:. A Certificate of Public Convenience and Necessity is granted to BCTC for the entirety of the VCCT Project except the VCCT Substation Distribution Assets, all as described in the Application.. BCTC will file with the Commission quarterly progress reports on the VCCT Project schedule and costs, followed by a final report on project completion. DATED at the City of Vancouver, in the Province of British Columbia, this Month 00. day of BY ORDER Panel Chair

19 WHEREAS: IN THE MATTER OF the Utilities Commission Act, R.S.B.C., Chapter and An Application by British Columbia Transmission Corporation on behalf of British Columbia Hydro and Power Authority for a Certificate of Public Convenience and Necessity for the VCCT Substation Distribution Assets BEFORE: (Panel members) Month XX, 00 O R D E R A. On September, 00, the British Columbia Transmission Corporation ("BCTC") applied (the Application ) to the British Columbia Utilities Commission (the Commission ) for a Certificate of Public Convenience and Necessity ( CPCN ) to construct and operate the Vancouver City Central Transmission Project (the VCCT Project) as described in this Application; and B. BCTC is proposing the VCCT Project as the preferred solution to: i) serve load growth in the Mount Pleasant/South False Creek area, ii) resolve reliability concerns associated with the end of life condition of the Main Street distribution duct banks being used to serve the Mount Pleasant/South False Creek area, and iii) resolve reliability concerns in view of the zero-rating of transmission circuit L; and C. The VCCT Project has an estimated capital cost of approximately $0 million of which approximately $ million is for the VCCT Substation Distribution Assets; and D. On October. 00, BCTC amended the VCCT CPCN Application and applied to the Commission on behalf of BC Hydro and Power Authority ( BC Hydro ) for a CPCN to construct and operate the VCCT Substation Distribution Assets; and E. By Order No. G-xx-0, the Commission established a Written Public hearing process and Regulatory Timetable for the review of the Application; and F. The XXXX, XXX and XX intervened in the proceeding; and G. Submissions in the proceeding concluded with XXXX on XXXX xx, 00; and H. The Commission Panel has considered the Application and the evidence and submissions in the proceeding and has determined that construction and operation of the VCCT Substation Distribution Assets is in the public interest and that a CPCN be issued to BC Hydro for the VCCT Substation Distribution Assets for the reasons set out in the attached Reasons for Decision.

20 NOW THEREFORE pursuant to Sections and of the Utilities Commission Act the Commission orders as follows:. A Certificate of Public Convenience and Necessity is granted to BC Hydro for the construction and operation of the VCCT Substation Distribution Assets as described in the Application. DATED at the City of Vancouver, in the Province of British Columbia, this Month 00. day of BY ORDER Panel Chair