APPLICATION No. To the ALBERTA ENERGY AND UTILITIES BOARD RE:

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1 APPLICATION No. To the ALBERTA ENERGY AND UTILITIES BOARD RE: New 240 kv Montana Alberta Tie Ltd. (MATL) Substation 120S and Reconfigure 240kV Transmission Line 923L AltaLink Management Ltd rd Avenue S.E. Calgary, Alberta T2A 7W7 December 13, 2006

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3 TABLE OF CONTENTS 1. EXECUTIVE SUMMARY APPLICATION EXISTING PERMITS AND LICENCES AESO DIRECT ASSIGNMENT PROPOSED DEVELOPMENT DESCRIPTION OF PROPOSED FACILITIES MATL 120S SUBSTATION Substation Site Major Items of Equipment Protection Land Rights TRANSMISSION LINE 923L AND 940L Physical Details GENERAL PROTECTION AND COMMUNICATION SITE SELECTION PUBLIC CONSULTATION LANDOWNERS CONTACTED AGENCY REFERRAL AGENCIES CONTACTED STEPS IN AGENCY REFERRAL AGENCY CONCERNS ENVIRONMENTAL MANAGEMENT PROJECT SCHEDULE PROJECT COST...9 i

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5 APPENDICES Appendix A Alberta Electric System Operator (AESO) Documents Direct Assignment Letter Appendix B 120-SLD SITE06 Single Line Diagram Single Line Diagram MATL 120S Substation Site Plan - MATL 120S Substation Appendix C D1 Map1 Mapping Project Area Map Air Photo Map AEUB Project Location map Appendix D Public Consultation Materials Stakeholder Information Package ii

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7 APPLICATION TO THE ALBERTA ENERGY AND UTILITIES BOARD RE: NEW 240 kv MATL SUBSTATION 120S 1. EXECUTIVE SUMMARY Montana Alberta Tie Ltd. (MATL) is moving forward with plans to construct a 240 kv transmission line between Alberta and Montana. The proposed 240 kv transmission line will connect to the Alberta Electric System at a new substation designated as MATL substation 120S. The proposed substation will be located northeast of the City of Lethbridge in the NE W4M where it will be connected to Alta Link s 240 kv transmission line 923L via an in/out configuration. This will involve construction of two new spans of 240 kv transmission line. AltaLink and MATL will own separate segments of the 120S substation. Stakeholders have been contacted and there have been no objections received. The proposed in-service date for the MATL substation 120S is December 7, 2007, with a proposed construction start date of September 7, APPLICATION AltaLink Management Ltd. (AltaLink) hereby makes application to the Alberta Energy and Utilities Board (the Board), pursuant to Sections 14, 15 and 18 of the Hydro and Electric Energy Act (Alberta), being Chapter H-16 of the Revised Statutes of Alberta, 2000, for Permits, Licences, Directions, Orders, and all other laws and regulations as may be necessary to permit AltaLink to: a) construct the AltaLink portion of the new 240 kv substation designated MATL 120S; b) reconfigure existing 240 kv transmission line 923L in and out of 120S substation; c) redesignate the existing portion of 240 kv transmission line 923L, as 940L between North Lethbridge substation 370S and the new MATL substation 120S; 1

8 d) connect AltaLink s segment of the MATL substation 120S to MATL s segment of substation 120S located in NE W4; e) operate these facilities. The work and facilities covered by this Application will: be constructed in accordance with the approvals granted by the Board pursuant to this Application; comply with the Safety Codes Act; comply with the Hydro and Electric Energy Act; comply with the Electric Utility Act; comply with the Radio and Communications Ac;, and be inspected and declared safe for operation under the authority of a properly qualified professional engineer before being energized. Upon completion, AltaLink will provide the Board with a statement that it has been so constructed and inspected and will indicate the nominal voltage level. 3. EXISTING PERMITS AND LICENCES AltaLink Management Ltd. is the holder of the following permit and licence: U for 240 kv transmission line 923L 4. AESO DIRECT ASSIGNMENT This project has been direct assigned to AltaLink by the AESO. See the attached letter from the AESO in Appendix A. 2

9 5. PROPOSED DEVELOPMENT Single Line Diagram 120-SLD06 in Appendix B shows the proposed initial system development of the MATL substation 120S, with the AltaLink and MATL portions of the substation defined. Air Photo MAP1 in Appendix C shows the location of the proposed MATL substation 120S and the two new portions of 240 kv transmission lines. The proposed substation will be located adjacent to existing 240 kv double circuit transmission line 923/924L. 6. DESCRIPTION OF PROPOSED FACILITIES 6.1. MATL 120S Substation Substation Site The proposed MATL substation 120S will be located in NE ¼ of section W4M. (Lat , Long ) See Site Plan 120-SITE06 in Appendix B for details Major Items of Equipment Upon completion of this project, the AltaLink portion of the new MATL substation 120S will contain the following major items of equipment: kv circuit breakers See Single Line Diagram 120-SLD06, in Appendix B for the electrical representation of the proposed substation Protection Install, set, and commission breaker failure protection for each of the three 240 kv breakers in the new substation. On the 240 kv 940L line to North Lethbridge 370S, install, set, and commission A and B distance line protection. On the 240 kv 923L line to West Brooks substation 28S and Langdon substation 102S, install, set, and commission A and B distance line protection. Install, set and commission A and B low-impedance bus differential protection on the 240 kv bus to which the MATL facility is to be connected. 3

10 Land Rights MATL has an agreement in place to purchase approximately 20 acres of land in NE W4 for the proposed substation. This land transfer will be completed once the subdivision application is approved by the local municipal authority. AltaLink will obtain an easement from MATL for AltaLink s portion of the MATL substation 120S and the new transmission lines Transmission line 923L and 940L Transmission circuit 923L will be altered to facilitate an in/out arrangement into the MATL substation 120S. The amount of new transmission line required to connect into the substation will be two spans of about 350 metres and about 100 metres from the existing line into and out of the substation. The portion of existing transmission line from North Lethbridge Substation 370S to MATL substation 120S will be re-designated as 940L Physical Details conductor 2 x 477 kcmil (bundled conductor) span length 350 metres 6.3. General Protection and Communication As part of this project, minor modifications to the protection and control systems will be carried out at North Lethbridge substation 370S and West Brooks substation 28S. 7. SITE SELECTION The site selection for the MATL substation was completed by MATL. MATL negotiated a land purchase agreement with the landowner for the substation site. The proposed location of MATL substation 120S is shown on Air Photo Map1 and Project Area Map D1 in Appendix C and on Site Plan 120-SITE06 in Appendix B. 4

11 The proposed location of the MATL substation: is adjacent to a road, which provides good access for construction, operation and maintenance; is adjacent to existing 240 kv transmission line 923/924L, which minimizes the length of new transmission line required; has no objections from landowners located within 800 m (1/2 mile) of the proposed substation site; has no objections from agency stakeholders. 8. PUBLIC CONSULTATION AltaLink carried out a stakeholder consultation process with local and government agencies and landowners. All concerns raised by stakeholders during the consultation process were addressed. AltaLink has received no objections to the proposed MATL substation 120S Landowners Contacted The landowner mailing list was developed through a title search of all properties within 800 meters of the proposed MATL substation site. "Landowners" includes all owners of land, occupants, renters and businesses located on those properties. There are four landowners located within 800 meters of the proposed substation site. All the landowners have been informed about this project. An information package (attached in Schedule D) describing the project was mailed to all the landowners. The landowners were later contacted by telephone to confirm they had received the information package and to answer any questions. Additional information was sent out to the landowners as requested. Prior to AltaLink contacting the landowners, MATL staff had extensive discussions with the same landowners regarding the proposed transmission line and substation site location. The focus of these discussions regarded the location of the transmission line 5

12 and the need for a substation adjacent to the existing 240 kv transmission line 923/924L. MATL offered to purchase land in NW W4 but was not successful in obtaining these lands. MATL subsequently made an offer to the land owner in NE W4M, and was successful. When AltaLink contacted these landowners to discuss AltaLink s involvement in the project, they were very familiar with the need to construct the substation. Steps in Landowner Contacts October, 2006 Landowner Referral October and November, 2006 Landowner Consultation Information packages were mailed to all landowners identified through land title searches. All landowners within 800 meters of the proposed substation site were contacted by telephone. Landowners did not have any concerns with the proposed project. 9. AGENCY REFERRAL The proposed site for MATL substation 120S was the subject of correspondence and discussion with the agencies and companies listed below. AltaLink has received no objections from these agencies regarding the proposed substation Agencies Contacted Agency Name Alberta Community Development, Alberta Sustainable Resource Development, Wildlife Management County of Lethbridge TELUS Communication Inc Navigation Canada Agency Contact Barry Newton Barry.newton@gov.ab.ca Kim Morton Kim.morton@gov.ab,.ca Rob Singleton r.singleton@county.lethbridge.ab.ca Dwayne Schultz Dwayne.Schultz@TELUS.COM General Manager Airport Operations (GMAO) NAV CANADA Land Use Office West roej@navcanada.ca 6

13 Agency Name Transport Canada Agency Contact Aerodromes and Air Navigation 9.2. Steps in Agency Referral October, 2006 Agency Referral Information packages were sent to agencies. (regular mail or e- mail) 9.3. Agency Concerns Agency Concern Mitigation Alberta Sustainable Resource Development, Wildlife Management No work on grassland areas during the period of April 15 to mid-july. The substation site is on cultivated lands and grasslands should not be impacted by AltaLink. Telus Provision of Ground Potential Rise data of the MATL substation. The information will be provided once the substation design has been completed. 7

14 10. ENVIRONMENTAL MANAGEMENT AltaLink s contractor personnel, tools, equipment and procedures are required to meet the environmental health and safety requirements of all laws and regulations of the jurisdiction in which the work takes place. This includes procedures and practices that follow Alberta Environment guidelines for right of way clearing, construction, reclamation, and subsequent activities as described in the Information Letter Environmental Protection Guidelines for Electrical Transmission Lines (C&R/IL/95-2). Impacts are managed through utilizing appropriate procedures for vegetation management, spill response, and stream crossings. AltaLinks contractors will follow Alberta Environment Guidelines for all creek and river crossings. AltaLink s contractors are expected to use approved single trail access routes and construction practices and equipment that minimize rutting, compaction, soil disturbance, and preservation of topsoil and sub-soil structures. Ongoing operational impacts are managed through procedures for accessing rights-of-ways, landowner access procedures, vegetation management procedures, spill response procedures and maintenance inspection procedures. 11. PROJECT SCHEDULE REQUESTED APPROVAL: August 24, 2007 CONSTRUCTION START: September 7, 2007 COMMISSIONING: December 7,

15 12. PROJECT COST The estimated cost for the MATL substation 120S project is as follows: Project Totals Percentage of Rounded Numbers Total Estimate Material Transmission Component Total Transmission Line Cost 435,000 5% Survey 10,000 <1% Right of Way Acquisition 10,000 <1% Right of Way Preparation 45,000 <1% Sub total 500,000 6% Substation Equipment Transformers & Switchgears 850,000 9% Site Preparation & Survey 500,000 5% Building 180,000 2% Protection/Telecontrol (including Metering & Settings) 580,000 6% Switchyard Bus Work, Foundation & Superstructures 820,000 9% SCADA 70,000 1% Land 10,000 <1% Sub total 3,010,000 33% AltaLink Regulatory (Siting) 40,000 <1% Prelim Engineering & Design 60,000 <1% Supervision (Project Mgmt., Field Insp., Eng Reviews, Commissioning) 190,000 2% Overhead (E&S) 600,000 7% AFUDC 60,000 1% Sub total 950, % Contractor Engineering Procurement Construction & Management (EPCM) Detail Engineering & Design 1,050,000 11% Procurement 140,000 1% Construction Labor 2,630,000 29% Project management 920,000 10% Sub total 4,740,000 51% TOTAL 9,200, % This estimate is within a +20/-10% cost variance and the entire cost will be borne by MATL. 9

16 This Application has been reviewed by the undersigned, who is a registered Engineering Technologist under The Engineering, Geological and Geophysical Professions Act of Alberta. All communication regarding this Application should be directed to Conrad Journault at or at conrad.journault@altalink.ca or John Rohrich at or at john.rohrich@altalink.ca Dated at the City of Calgary in the Province of Alberta this 13 th day of December AltaLink Management Ltd., By its agent John Rohrich, R.E.T., Manager of Siting AltaLink Management Ltd rd Avenue SE Calgary, Alberta T2A 7W7 10