Decision D ATCO Electric Ltd. Crystal Lake 722S Substation Telecommunications Tower Replacement

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Decision 21617-D01-2016 Crystal Lake 722S Substation October 5, 2016

Alberta Utilities Commission Decision 21617-D01-2016 Crystal Lake 722S Substation Proceeding 21617 Application 21617-A001 October 5, 2016 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

Alberta Utilities Commission Calgary, Alberta Decision 21617-D01-2016 Crystal Lake 722S Substation Proceeding 21617 Application 21617-A001 1 Decision summary 1. In this decision, the Alberta Utilities Commission must decide whether to approve an application from (ATCO Electric) to replace the existing telecommunications tower at the Crystal Lake 722S Substation with a new telecommunications tower and associated equipment (the project). After consideration of the record of the proceeding, and for the reasons outlined in this decision, the Commission finds that approval of the project is in the public interest having regard to the social, economic, and other effects of the project, including its effect on the environment. 2 Introduction and background 2. ATCO Electric is the operator of the Crystal Lake 722S Substation in the city of Grande Prairie, pursuant to Permit and Licence U2011-17. 1 ATCO Electric filed an application with the Commission on May 17, 2016, requesting approval to alter and operate the Crystal Lake 722S Substation, located in the northeast quarter of Section 30, Township 71, Range 5, west of the Sixth Meridian. The application was filed pursuant to sections 14 and 15 of the Hydro and Electric Energy Act, as Application 21617-A001. 3. On May 31, 2016, the Commission issued an information request to ATCO Electric to clarify details of the application. ATCO Electric responded to the information request on June 6, 2016. 4. On May 31, 2016, the Commission issued a notice of application for Proceeding 21617 with a deadline of June 24, 2016 for submissions to express objections, concerns, or support for the application. The notice was sent directly to all occupants, residents and landowners within the first row of development surrounding the Crystal Lake 722S Substation site boundary, as well as to other stakeholders identified by ATCO Electric. The notice was also published on the AUC website and notification was automatically emailed to efiling System users who had chosen to be notified of notices of application issued by the Commission. 5. On June 9, 2016, the Commission received a statement of intent to participate from the Office of the Utilities Consumer Advocate (UCA). In its submission, the UCA stated: The UCA has reviewed the application and would like the opportunity to clarify certain information related to principles of utility asset disposition, matters of ownership and 1 Substation Permit and Licence U2011-17, Proceeding 791, Application 1606603, January 21, 2011. Decision 21617-D01-2016 (October 5, 2016) 1

Crystal Lake 722S Substation usage, and the approval of the Grande Prairie Telecommunications Reliability Improvement Project. 2 6. On June 29, 2016, the Commission requested additional information from the UCA to determine its standing. The Commission also established a schedule for the UCA to file further information to support its statement of intent to participate, for ATCO Electric to comment on the UCA s submissions, and for the UCA to respond to any comments. Both the UCA and ATCO Electric filed their respective submissions in accordance with the process schedule. 7. On August 18, 2016, the Commission denied standing to the UCA in this proceeding, 3 ruling that the UCA had not demonstrated that its legal rights, or the rights of its members, may be directly and adversely affected by the Commission s decision on the application. In so doing, the Commission also stated that the UCA s submission did not satisfy the two-part standing test, taking into account the nature of the application and the issues raised in the proceeding. 3 Discussion 8. The Crystal Lake 722S Substation is located on private land within the city of Grande Prairie. In its application, ATCO Electric proposes to alter the Crystal Lake 722S Substation by replacing the existing 20-metre tall telecommunications tower with a new 25-metre tall steel monopole telecommunications tower (the new telecommunications tower). 9. ATCO Electric explained that the new telecommunications tower would be designed to support and enhance ATCO Electric s radio and data communication network, which would help maintain the safety and reliability of the Alberta Interconnected Electric System in the area. ATCO Electric submitted that the increased height of the new telecommunications tower would meet the necessary specifications required for radio path reliability. The project is part of ATCO Electric s Transmission Capital Maintenance Program. 10. The new telecommunications tower would be located within the existing fenced area of the Crystal Lake 722S Substation. 11. Upon completion of the project, the Crystal Lake 722S Substation would include the following major equipment: two 144/25-kilovolt (kv), 30/40/50-megavolt-ampere transformers four 144-kV circuit breakers eleven 25-kV circuit breakers one 25-metre tall telecommunications tower associated substation equipment 12. ATCO Electric undertook a participant involvement program that included mailing approximately 83 information packages to land interest holders, occupants and agencies within the first row of development surrounding the Crystal Lake 722S Substation site. Other interested parties such as the local municipality and government departments were also mailed an information package. ATCO Electric placed advertisements for the project in the Grande Prairie 2 3 Exhibit 21617-X0014, The UCA Statement of Intent to Participate. Exhibit 21617-X0019, Commission ruling on standing of the UCA. 2 Decision 21617-D01-2016 (October 5, 2016)

Crystal Lake 722S Substation Daily Herald Tribune newspaper on February 24, 26 and 29, 2016 as well as on March 2, 2016. Further, ATCO Electric conducted personal consultations with directly affected and directly adjacent parties concerning the project. ATCO Electric stated that there were no known objections or concerns with the project at the time the application was filed. 13. Because of the location of the Crystal Lake 722S Substation, ATCO Electric gave notification of the project to the Horse Lake First Nation. No comments were received. ATCO Electric added that no further aboriginal consultation was conducted because there were no known potential impacts on aboriginal rights and traditional uses, nor any requirements to conduct aboriginal consultation based on the project s scope. 14. ATCO Electric indicated that, should the project be approved, one of its environmental employees would be on-site to conduct an inspection and collect soil samples if evidence of contamination were encountered during construction. ATCO Electric stated that if contamination were identified, it would work with Alberta Environment and Parks to contain any observed contamination at the Crystal Lake 722S Substation site until it is decommissioned and remediated. 15. ATCO Electric committed to adhering to the Alberta Environment and Parks Environmental Protection Guidelines for Transmission Lines. It also committed to adhering to its environmental protection plan. 4 ATCO Electric stated that no significant adverse environmental effects are expected to result from the project. 16. ATCO Electric received Historical Resources Act clearance from Alberta Culture and Tourism for the project on February 10, 2016. If historical resources were discovered during construction, activity would be suspended until Alberta Culture and Tourism grants permission to continue. 17. ATCO Electric stated that the increase in telecommunications tower height would have a minor visual impact for the residences in the direct viewshed of the tower, but should not create any new impacts for residences outside of the existing viewshed of the tower. The change in tower type from a steel-lattice tower to a monopole tower was a result of consultation with the City of Grande Prairie, which requested that the tower be changed to a monopole, in accordance with its preference for telecommunications towers within the city limits. 18. ATCO Electric indicated that a noise impact assessment would not be required pursuant to Rule 012: Noise Control because the equipment proposed to be added to the Crystal Lake 722S Substation does not produce noise. 19. ATCO Electric stated the project cost is considered to be capital maintenance, estimated to be approximately $877,139 (within +20 per cent/-10 per cent accuracy). 20. The project has a proposed in-service date of April 2017. 4 Exhibit 21617-X0002, Environmental Protection Plan for the Grand Prairie Reliability Project. Decision 21617-D01-2016 (October 5, 2016) 3

Crystal Lake 722S Substation 4 Findings 21. The Commission is satisfied that ATCO Electric s application complies with the information requirements prescribed in Rule 007: Applications for Power Plants, Substations, Transmission Lines, Industrial System Designations and Hydro Developments. The Commission accepts ATCO Electric s submission that the project is required to maintain transmission reliability and is a part of its Transmission Capital Maintenance Program. 22. The Commission is satisfied that the participant involvement program undertaken by ATCO Electric meets the requirements of Rule 007. The Commission notes that there were no outstanding public or industry concerns from parties directly and adversely affected by the project. 23. The Commission expects ATCO Electric to comply with the relevant sections of the Environmental Protection and Enhancement Act, the Environmental Protection Guidelines for Transmission Lines, and other relevant statutes, regulations, rules and guidelines listed in the application. The Commission expects ATCO Electric to meet its commitment to perform soil sampling and analysis and communicate the results to Alberta Environment and Parks, should evidence of contamination be identified during construction activities and concentrations exceed the allowable limits listed in the guidelines. The Commission also acknowledges ATCO Electric s statement that it would work with Alberta Environment and Parks to contain any observed contamination to the Crystal Lake 722S Substation site until it is decommissioned and remediated. 24. The Commission agrees with ATCO Electric s submission that a noise impact assessment is not required for the project pursuant to Rule 012. 25. The Commission is also satisfied that no technical or environmental aspects of the project raised public interest concerns. 26. Given the considerations discussed above, the Commission finds that approval of the project is in the public interest having regard to the social, economic and other effects of the project, including its effects on the environment. 5 Decision 27. Pursuant to sections 14, 15, 19 and 21 of the Hydro and Electric Energy Act, the Commission approves Application 21617-A001 and grants ATCO Electric the approval set out in Appendix 1 Substation Permit and Licence 21617-D02-2016 October 5, 2016 (Appendix 1 will be distributed separately). Dated on October 5, 2016. Alberta Utilities Commission (original signed by) Anne Michaud Commission Member 4 Decision 21617-D01-2016 (October 5, 2016)