ATCO Electric Ltd. Dawes Substation and Telecommunications Tower Project Facility Application

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Decision 2014-039 Dawes Substation and Telecommunications Tower Project Facility Application February 19, 2014

The Alberta Utilities Commission Decision 2014-039: Dawes Substation and Telecommunications Tower Project Facility Application Application No. 1610122 Proceeding ID No. 2947 February 19, 2014 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 Decision 2014-039 Dawes Substation and Telecommunications Tower Project Application No. 1610122 Facility Application Proceeding ID No. 2947 1 Introduction and background 1. (ATCO) filed a facility application with the Alberta Utilities Commission (AUC or the Commission) on November 27, 2013, registered as Application No. 1610122 (the application), pursuant to sections 14, 15, 18 and 21 of the Hydro and Electric Energy Act. ATCO requested a new 240/144-kilovolt (kv) substation, two single circuit 240-kV transmission lines and one double circuit 144-kV transmission line. The application was assigned as Proceeding ID No. 2947. 2. On December 17, 2013, the Commission issued information requests to ATCO to clarify details of the application with respect to the environmental evaluation and the project need. ATCO responded to the information requests on January 6, 2014. 3. On January 13, 2014, the Commission issued a notice of application with a deadline of February 5, 2014, for submissions to express objections, concerns or support for the application. The notice of application was sent directly to all occupants, residents and landowners as well as other stakeholders that were contacted as part of the participant involvement program. 4. On January 22, 2014, Alberta Parks submitted correspondence to the Commission indicating that it had received the notice of application and did not have any concerns with the project as proposed by ATCO. 5. No objections or concerns were received by the February 5, 2014 submission deadline. 2 Discussion 6. In accordance with Section 35 of the Electric Utilities Act, the Alberta Electric System Operator (AESO) directed ATCO to submit the application. 7. In its information response to the Commission, ATCO confirmed that the need for the project was approved by the Commission in Decision 2013-150. 1 ATCO further confirmed that the application meets the need as approved in Decision 2013-150. 8. ATCO stated that the development of the proposed transmission facilities are required to support current and future industrial development in the area. The proposed project would consist of the following activities: 1 Decision 2013-150: Alberta Electric System Operator - Algar Area 144-kV Transmission Reinforcement Needs Identification Document, Application No. 1609085, Proceeding ID No. 2293, April 18, 2013. AUC Decision 2014-039 (February 19, 2014) 1

construct a new 240/144-kV substation to be designated as Dawes 2011S substation construct two new approximately one kilometre single circuit 240-kV transmission lines, designated as 9L07 and 9L89, to connect the proposed Dawes 2011S substation to the existing 240-kV transmission line 9L07 with an in-out configuration at the proposed Dawes 2011S substation construct one new approximately 1.3 kilometres double circuit 144-kV transmission line, designated as 7L170/7L194, to connect the proposed Dawes 2011S substation to the existing 144-kV transmission line 7L36 alter the existing 240-kV transmission line 9L07 by: operating the portion of existing line from McMillan 885S substation to the proposed Dawes 2011S substation 2011S as 240-kV transmission line 9L89 operating the portion of existing line from Dawes 2011S substation to the existing Dover 888S substation as 240-kV transmission line 9L07 decommission and salvage a portion of existing transmission line 9L07 between the connection points, approximately 42 metres in length alter the existing 144-kV transmission line 7L36, previously approved to be renumbered as 7L194, by: operating the portion of existing line from Algar 875S substation to the proposed Dawes 2011S substation as 144-kV transmission line 7L170 operating the portion of existing line from the approved Willow Lake 2009S substation to the proposed Dawes 2011S substation as 144-kV transmission line 7L194 decommission and salvage approximately 50 metres of existing transmission line 7L36 between the proposed connection points for the proposed double circuit 144-kV transmission line 7L170/7L194 with an in-out connection alter the existing Algar 875S substation to add one 144-kV circuit breaker connect these facilities to the Alberta Interconnected Electric System 9. Upon completion of the proposed development, ATCO submitted that the proposed Dawes 2011S substation would include the following major equipment: one 240/144-kV, 180/240/300-megavolt-ampere transformer three 240-kV circuit breakers three 144-kV circuit breakers one 125-kilowatt backup generator one self-supporting steel lattice telecommunications tower one control building 2 AUC Decision 2014-039 (February 19, 2014)

an enclosure surrounded by a chain-link fence and other substation equipment as described in the application 10. The proposed Dawes 2011S substation would be situated in the Regional Municipality of Wood Buffalo, approximately 50 kilometres southwest of the Urban Services Area of Fort McMurray. The substation would be located in the southeast quarter of Section 19 and southwest quarter of Section 20, Township 84, Range 11, west of the Fourth Meridian on Crown Land. The proposed substation would require a site approximately 286-metres by 365-metres with a fenced area of approximately 163-metres by 193-metres. The AESO directed ATCO to allow for sufficient land for the ultimate substation configuration. 11. ATCO submitted that the proposed alterations to the existing Algar 875S substation would include the addition of one 144-kV circuit breaker and associated protection and control facilities. The substation is located in the northwest quarter of Section 19, Township 84, Range 11, west of the Fourth Meridian. 12. Upon completion of the proposed development, ATCO submitted that the Algar 875S substation would include the following major equipment: one 144/4.16/25-kV transformer two 144-kV circuit breakers one 144-kV circuit switcher an enclosure surrounded by a chain-link fence and other substation equipment as described in the application 13. To accommodate the proposed substation development, two single circuit 240-kV transmission lines, approximately one kilometre in length and designated as 9L07 and 9L89, are proposed to connect the proposed Dawes 2011S substation to the existing 240-kV transmission line 9L07 with an in-and-out configuration at the proposed Dawes 2011 substation. 14. Further, ATCO submitted that a double circuit 144-kV transmission line, designated as 7L170/7L194, is proposed to connect the proposed Dawes 2011S substation to the existing 144-kV transmission line 7L26. 15. ATCO stated that it worked closely with Alberta Environment and Sustainable Resource Development (AESRD) on the routing and siting of the project. ATCO stated that AESRD is in support of the routing and siting of the proposed transmission lines and substation. 16. ATCO submitted that the proposed Dawes 2011S substation site was chosen as it would be compatible with the surrounding land uses and it would reduce the overall impact of the proposed substation on stakeholders and the surrounding environment. 17. ATCO submitted that the proposed route for transmission lines 9L07 and 9L89 was selected as it would be adjacent to existing industrial disturbances and would minimize disturbances to the natural systems in the area. AUC Decision 2014-039 (February 19, 2014) 3

18. ATCO submitted that the proposed route for the double circuit transmission line 7L170/7L104 would be adjacent to existing disturbances to the extent possible which would minimize disturbances to the natural systems in the area. 19. ATCO conducted a participant involvement program prior to filing the application. The program was comprised of notification and consultation with all landowners, occupants, agencies and other interested parties within 800-metres of the rights-of-way for the proposed transmission lines and the existing Algar 875S substation and within 2000 metres of the proposed Dawes 2011S substation. ATCO confirmed there are no objections to the project. Further, ATCO stated that it is in on-going communications with stakeholders and would continue to work with them to address concerns. 20. ATCO submitted an environmental evaluation and an environment protection plan as part of the application. The environmental evaluation and environment protection plan addressed measures that ATCO would implement to reduce the environmental impacts. 21. ATCO committed to complete a pre-construction rare plant survey by June 2014 and continue to consult with the AESRD Fish and Wildlife Division to determine the required preconstruction wildlife surveys to be undertaken in the project area. 22. ATCO stated that the project would comply with the Environmental Protection Guidelines for Transmission Lines and other relevant regulations and guidelines. 23. ATCO stated that a noise impact assessment was conducted for the project and submitted a noise impact assessment summary form as part of the application. The noise impact assessment predicted the project would not exceed permissible sound levels and would be in compliance with AUC Rule 012: Noise Control (AUC Rule 012). 24. ATCO stated that the project falls within the area of the Lower Athabasca Regional Plan (LARP) and that the project is consistent with the LARP. 25. ATCO s estimated project cost (within +20%/-10% accuracy) for the project development is $48,623,981. 3 Findings 26. The Commission finds that the application, as proposed by ATCO, satisfies the need as directed by the AESO. 27. With respect to ATCO s application, the Commission finds that it complies with the requirements prescribed in sections 14, 15, 18 and 21 of the Hydro and Electric Energy Act and AUC Rule 007. 28. The Commission finds that the participant involvement program, as described above, meets the requirements of AUC Rule 007: Applications for Power Plants, Substations, Transmission Lines, and Industrial System Designations (AUC Rule 007). No objections were received in response to the notice of application. 4 AUC Decision 2014-039 (February 19, 2014)

29. The Commission acknowledges that ATCO will comply with the relevant sections of the Environmental Protection Guidelines for Transmission Lines and other relevant regulations and guidelines. 30. The Commission acknowledges that the project falls within the area of the LARP and accepts that the project is consistent with the LARP. 31. The Commission is satisfied that the technical and environmental aspects of the project, as submitted by ATCO, fulfil the requirements of AUC Rule 007. The Commission accepts that the proposed development would not result in any adverse impacts to the environment. 32. The Commission further finds that the noise impact assessment submitted by ATCO fulfils the requirements of AUC Rule 012. 33. Having considered the social, economic, and environmental impacts of the proposed project, the Commission finds that the application is in the public interest pursuant to Section 17 of the Alberta Utilities Commission Act. Therefore, the Commission approves the project as proposed by ATCO. 4 Decision 34. Pursuant to Sections 14, 15, 19 and 21 of the Hydro and Electric Energy Act, the Commission approves Application No. 1610122 and grants ATCO the following approvals: Substation Permit and Licence No. U2014-53 - February 19, 2014, to construct and operate the Dawes 2011S substation as set out in Appendix 1. Substation Permit and Licence No. U2014-54 - February 19, 2014, to alter and operate the Algar 875S substation as set out in Appendix 2. Transmission Line Permit and Licence No. U2014-55 - February 19, 2014, to alter and operate transmission line 9L07 as set out in Appendix 3. Transmission Line Permit and Licence No. U2014-56 - February 19, 2014, to alter and operate transmission line 9L89 as set out in Appendix 4. Transmission Line Permit and Licence No. U2014-57 - February 19, 2014, to alter and operate transmission line 7L194 as set out in Appendix 5. Transmission Line Permit and Licence No. U2014-62 - February 19, 2014, to alter and operate transmission line 7L170 as set out in Appendix 6. 35. The appendices will be distributed separately. Dated on February 19, 2014. AUC Decision 2014-039 (February 19, 2014) 5

The Alberta Utilities Commission (original signed by) Tudor Beattie, QC Commission Member 6 AUC Decision 2014-039 (February 19, 2014)