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Decision 23556-D01-2018 Altalink Management Ltd. Transmission Line 13L Rebuild

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Decision 23556-D01-2018 Altalink Management Ltd. Transmission Line 13L Rebuild Decision 23556-D01-2018 AltaLink Management Ltd. Transmission Line 13L Rebuild October 29, 2018 Alberta Utilities Commission Decision 23556-D01-2018 AltaLink Management Ltd. Transmission Line 13L Rebuild Proceeding 23556 Application 23556-A001 October 29, 2018 Published by the: Alberta Utilities Commission Eau Claire Tower, 1400, 600 Third Avenue S.W. Calgary, Alberta T2P 0G5 Telephone: 403-592-8845 Fax: 403-592-4406 Website: www.auc.ab.ca Alberta Utilities Commission Calgary, Alberta Decision 23556-D01-2018 AltaLink Management Ltd. Proceeding 23556 Transmission Line 13L Rebuild Application 23556-A001 1 Decision summary 1. In this decision, the Alberta Utilities Commission must decide whether to approve an application from AltaLink Management Ltd. to rebuild and operate transmission line 13L in the High River and Okotoks areas. After consideration of the record of the proceeding, and for the reasons outlined in this decision, the Commission finds that approval of the proposed development is in the public interest, having regard to the social and economic effects of the project, including its effect on the environment. 2 Introduction 2. AltaLink Management Ltd. (AltaLink), pursuant to Permit and Licence U2014-425,1 is the owner of the 69-kilovolt (kV) transmission line 13L from the High River 65S Substation to a connection point with transmission line 158L in the High River and Okotoks areas. 3. On May 14, 2018, AltaLink filed a facility application, pursuant to sections 14, 15, 19 and 21 of the Hydro and Electric Energy Act, with the Commission requesting approval to salvage and rebuild a portion of transmission line 13L. AltaLink applied to rebuild approximately 13.7 kilometres of transmission line 13L from the High River 65S Substation to a connection point with transmission line 158L in the Okotoks and High River areas. The application was registered as Application 23556-A001. 4. Alberta Foothills Property Ltd. (AFPL) (the developer) owns a quarter section of land located in the northwest quarter of Section 16, Township 20, Range 29, west of the Fourth Meridian (the developer land). 5. AltaLink proposed two route options to rebuild transmission line 13L. The first option is the preferred route which would be to rebuild transmission line 13L along the existing right-of-way. The second option is the developer requested route which would consist of rebuilding transmission line 13L along the quarter section lines around the developer land. Both route options would have transmission line 13L rebuilt along its existing right-of-way for the majority of the project. 6. AltaLink, pursuant to Permit and Licence U2014-4262 and Permit and Licence U2013-509,3 is also the owner of transmission line 158L and transmission line 753L, respectively. To accommodate the transmission line 13L rebuild project, AltaLink also proposed 1 Transmission Line Permit and Licence U2014-425, Proceeding 3455, Application 1610908, November 17, 2014. 2 Transmission Line Permit and Licence U2014-426, Proceeding 3455, Application 1610908, November 17, 2014. 3 Transmission Line Permit and Licence U2013-509, Proceeding 2001, Application 1608643, November 21, 2013. Decision 23556-D01-2018 (October 29, 2018) • 1 Transmission Line 13L Rebuild AltaLink Management Ltd. to alter five structures on transmission line 158L and to relocate one structure of transmission line 753L. 3 Discussion 7. AltaLink stated that the rebuild of transmission line 13L is part of AltaLink’s capital maintenance and upgrades program and is not an Alberta Electric System Operator direct assigned project. AltaLink stated that the structures of transmission line 13L have reached the end of their life cycle and require replacement. 8. AltaLink proposed two route options for the transmission line 13L rebuild project: the preferred transmission line route and the developer requested transmission line route. As shown in the map below, the only divergence between the two routes is at the northern end of the project area where the preferred route cuts diagonally across a quarter section whereas the developer requested route follows quarter section lines. 2 • Decision 23556-D01-2018 (October 29, 2018) Transmission Line 13L Rebuild AltaLink Management Ltd. 9. AltaLink stated in its application that it prepared the developer requested route to accommodate the Town of Okotoks’ future entrance plan for a proposed residential development by AFPL. AltaLink proposed the developer requested route to be built along the south and west sides of the developer land on the quarter section lines so that it would not be located on future residential lots. 10. AltaLink stated that the total cost of the transmission line 13L rebuild project would be approximately $5.8 million along the existing route, with an incremental cost of approximately $379,500 for the developer requested route. AltaLink submitted that the incremental cost of the developer requested route should not be passed onto ratepayers. In its application, AltaLink indicated that it had not selected the developer requested route as its preferred route because AFPL had not agreed to pay the incremental cost associated with that route. AltaLink submitted that its preferred route was the most cost effective option and in the public interest. 11. On June 20, 2018, the Commission issued a notice of application for Proceeding 23556. The notice was sent directly to potentially affected stakeholders. The notice was also published on the AUC website and notification was automatically emailed to AUC eFiling System users who had chosen to be notified of notice of applications issued by the Commission. 12. AltaLink subsequently reassessed the incremental costs for the developer requested route to be $300,000. 13. The Commission received statements of intent to participate from the Town of Okotoks and AFPL. The Town of Okotoks stated that the developer requested route “is the appropriate option to ensure the efficient and orderly development of the land.”4 AFPL stated in its statement of intent to participate that it agreed to pay AltaLink’s newly adjusted incremental cost of $300,000 for the developer requested route. 14. On August 21, 2018, AltaLink advised the Commission that it had reached an agreement with AFPL for the incremental costs of the developer requested route. AltaLink confirmed that AFPL had provided it with a non-refundable deposit as security and committed to paying the remainder of the $300,000 incremental cost of the developer requested route with 30 days of receipt of the permit and licence for the project. AltaLink indicated that it now endorsed the approval of the developer requested route. 15. AltaLink also stated that since the application only requires minor alterations to transmission line 158L and transmission line 753L, it was not requesting new permits and licences for these transmission lines. However, AltaLink requested that a new permit and licence be issued for transmission line 13L specifying the locations of the temporary workspaces to be used during construction of transmission line 13L. AltaLink stated that in the event that necessary land rights could not be obtained for the temporary workspaces on reasonable terms through negotiations with the landowners, it would apply for a right-of-entry order from the Surface Rights Board. 16. AltaLink’s participant involvement program consisted of notification and consultation. AltaLink provided a project-specific information package to stakeholders within 800 metres of the project in the rural area and within the first row of development for the urban area of the 4 Exhibit 23556-X0022, Statement of intent to participate from Elaine Vincent on behalf of the Town of Okotoks. Decision 23556-D01-2018 (October 29, 2018) • 3 Transmission Line 13L Rebuild AltaLink Management Ltd. project. AltaLink also conducted consultation with agencies, oil and gas companies, and industrial interest holders. AltaLink stated that an Aboriginal consultation program was not required because Crown land was not impacted by the proposed project and there were no Aboriginal-owned lands within 800 metres of the proposed project. AltaLink submitted that there were no known outstanding concerns or objections to the proposed project other than the AFPL concerns at the time the application was filed. 17. AltaLink indicated that the proposed project is to be located mainly on the existing right-of-way and in the road allowance. AltaLink filed an environmental specifications and requirements (ESR) document for the transmission line 13L rebuild,5 in which it described its construction-related environmental commitments and mitigation measures. In the ESR, AltaLink committed to implementing the mitigation measures specified in the ESR and concluded that the implementation of such measures would result in no adverse effects to wildlife or vegetation in the project area. AltaLink added that it did not anticipate any adverse effects from the proposed project on aquatic species, aquatic habitat, hydrology, groundwater, wetlands, surface water bodies, soils or terrain. AltaLink maintained that, during construction, an AltaLink environmental advisor would periodically monitor project activities and verify that the specific mitigations listed in the ESR were followed. After energization, AltaLink would follow the Environmental Protection Guidelines for Transmission Lines for its reclamation activities. 18. On August 15, 2016, AltaLink received Historical Resources Act clearance for the rebuilding of transmission line 13L from Alberta Culture and Tourism. On May 9, 2018, AltaLink submitted information regarding the proposed modifications to transmission line 158L and transmission line 753L. AltaLink stated that it would not commence construction activities until Historical Resources Act clearance is granted for these transmission lines. 19. AltaLink’s final estimated cost of the developer requested route would be approximately $5.8 million (plus 20 per cent to minus 10 per cent) plus the incremental cost of $300,000 which would be paid for by AFPL. AltaLink further advised that in addition to agreeing to pay the $300,000 in incremental costs, AFPL also agreed to provide the necessary land rights for the right-of-way.
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