22712-D01-2017
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Decision 22712-D01-2017 ATCO Electric Ltd. Cancellation of the Kodiak Interconnection Project June 29, 2017 Alberta Utilities Commission Decision 22712-D01-2017 ATCO Electric Ltd. Cancellation of the Kodiak Interconnection Project Proceeding 22712 Applications 22712-A001 to 22712-A004 June 29, 2017 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 ATCO Electric Ltd. Decision 22712-D01-2017 Cancellation of the Proceeding 22712 Kodiak Interconnection Project Applications 22712-A001 to 22712-A004 1 Decision summary 1. In this decision, the Alberta Utilities Commission must decide whether to approve applications from ATCO Electric Ltd. to cancel the approvals for the Kodiak Interconnection Project. After consideration of the record of the proceeding, and for the reasons outlined in this decision, the Commission approves the applications because Cenovus FCCL Ltd. no longer requires the approved construction and alteration of facilities in order to connect additional load at the Foster Creek industrial system to the Alberta Interconnected Electric System. 2 Introduction and background 2. On September 29, 2014, the Commission approved Cenovus FCCL Ltd.’s (Cenovus) and ATCO Electric Ltd.’s (ATCO Electric) applications to connect the Foster Creek industrial system to the Alberta Interconnected Electric System in Decision 2014-278.1 Cenovus was granted Industrial System Designation Order U2014-3892 and Permit and Licence U2014-3903 to amend the existing Foster Creek industrial system, and to construct and operate the Kodiak 1210S Substation, respectively. ATCO Electric was granted Connection Order U2014-3914 to connect the Foster Creek industrial system to transmission line 7L86, and the following permits and licences: Permit and Licence U2014-3925 to alter and operate transmission line 7L86. Permit and Licence U2014-3936 to construct and operate transmission line 7LA86. Permit and Licence U2014-3947 to construct and operate transmission line 7LB86. 3. On May 19, 2015, ATCO Electric filed applications requesting approval of a time extension to May 31, 2017 in order to complete the construction of transmission lines 7LA86 and 7LB86, and the alteration of transmission line 7L86. Permits and licences U2014-392, 1 Decision 2014-278: Cenovus FCCL Ltd. – Foster Creek ISD Amendment, ATCO Electric Ltd. – Kodiak 1210S Substation Interconnection, Proceeding 3271, Applications 1610633 and 1610639, September 29, 2014. 2 Industrial System Designation Order U2014-389, Proceeding 3271, Application 1610633, September 29, 2014. 3 Substation Permit and Licence U2014-390, Proceeding 3271, Application 1610633, September 29, 2014. Permit and Licence U2014-390 was rescinded by Permit and Licence 20532-D02-2015. 4 Connection Order U2014-391, Proceeding 3271, Applications 1610633 and 1610639, September 29, 2014. 5 Transmission Line Permit and Licence U2014-392, Proceeding 3271, Application 1610639, September 29, 2014. 6 Transmission Line Permit and Licence U2014-393, Proceeding 3271, Application 1610639, September 29, 2014. 7 Transmission Line Permit and Licence U2014-394, Proceeding 3271, Application 1610639, September 29, 2014. Decision 22712-D01-2017 (June 29, 2017) • 1 Cancellation of the Kodiak Interconnection Project ATCO Electric Ltd. U2014-393, and U2014-394 were rescinded and replaced by permits and licences 20455-D02- 2015,8 20455-D03-2015,9 and 20455-D04-2015.10 4. On June 5, 2017, ATCO Electric filed applications for approval to cancel Connection Order U2014-391, and permits and licences 20455-D02-2015, 20455-D03-2015, and 20455-D04-2015. ATCO Electric also requested that the Commission reissue a new licence for transmission line 7L86 and a new connection order to connect transmission line 7L86 to Cenovus’s Foster Creek 1200S Substation. The applications were registered as applications 22712-A001 to 22712-A004. 5. On June 9, 2017 and June 20, 2017, the Commission issued information requests to ATCO Electric. ATCO Electric responded to those information requests on June 14, 2017 and June 22, 2017, respectively. 6. Cenovus requested this cancellation because it no longer needs the approved construction and alteration of facilities to access the Alberta Interconnected Electric System. The Commission did not issue a notice of application because the cancellation of the connection order and permits and licences did not have the potential to directly and adversely affect any person. 3 Discussion 7. Cenovus filed a letter with the Alberta Electric System Operator, requesting to cancel its system access service request for the Kodiak Interconnection Project on April 12, 2017. As discussed in Decision 2014-278, Cenovus previously stated it would be expanding its Foster Creek thermal project to increase the overall bitumen capacity. The Kodiak 1210S Substation and associated interconnection would have been required to serve the additional load. 8. ATCO Electric has approval to construct and operate a 144-kilovolt (kV) transmission line, designated as transmission line 7LA86, which would connect the Kodiak 1210S Substation to existing transmission line 7L86. ATCO Electric also has approval to redesignate a portion of transmission line 7L86 as transmission line 7LB86, which would connect the Foster Creek 1200S Substation to transmission line 7L86. The portion of the line between the Wolf Lake 822S Substation and transmission line 7LB86 would remain as transmission line 7L86. ATCO Electric entered into a commercial agreement with Cenovus to own and operate transmission lines 7LA86 and 7LB86, which were part of the Foster Creek industrial system. Transmission lines 7LA86 and 7LB86 would not form part of the transmission rate base, and the cost of the Kodiak Interconnection Project would be considered non-regulated assets to ensure ratepayers were not affected. 9. Because the system access service request has been cancelled, ATCO Electric no longer requires the connection order and permits and licences associated with the Kodiak Interconnection Project. ATCO Electric stated that it would not be notifying stakeholders 8 Transmission Line Permit and Licence 20455-D02-2015, Proceeding 20455, Application 20455-A001, June 4, 2015. 9 Transmission Line Permit and Licence 20455-D03-2015, Proceeding 20455, Application 20455-A002, June 4, 2015. 10 Transmission Line Permit and Licence 20455-D04-2015, Proceeding 20455, Application 20455-A003, June 4, 2015. 2 • Decision 22712-D01-2017 (June 29, 2017) Cancellation of the Kodiak Interconnection Project ATCO Electric Ltd. of the cancellation because the Kodiak Interconnection Project is located on Crown land with significant industrial activity and it would not have had any adverse impact on stakeholders. 4 Findings 10. In Decision 2014-278, the Commission approved the applications from Cenovus and ATCO Electric and considered the Kodiak Interconnection Project to be in the public interest having regard to the social, economic, and other effects of the project, including its effect on the environment. The Commission also found there were no outstanding public or industry objections or concerns with the Kodiak Interconnection Project. 11. Because Cenovus has cancelled its system access service request for the interconnection, the connection order and permits and licences granted to ATCO Electric for the Kodiak Interconnection Project are no longer required. The Commission rescinds Connection Order U2014-391, and permits and licences 20455-D02-2015, 20455-D03-2015, and 20455-D04-2015. In making this decision, the Commission observes that no work has commenced under these permits and licences and that the approved facilities are no longer required by Cenovus. 12. Transmission line 7L86, constructed and in operation prior to changes resulting from the Kodiak Interconnection Project, is still required. The Commission grants to ATCO Electric an amended licence to operate transmission line 7L86 on the same terms and conditions set out in Licence U2003-028.11 13. Prior to Connection Order U2014-391, ATCO Electric had an order to connect transmission line 7L86 to the Foster Creek 1200S Substation. Because this connection is still required, the Commission grants to ATCO Electric an amended connection order to connect transmission line 7L86 to the Foster Creek 1200S Substation on the same terms and conditions set out in Connection Order U2012-8.12 11 Transmission Line Licence U2003-028, Application 1289287, January 17, 2003. 12 Connection Order U2012-8, Proceeding 1492, Application 1607852, January 23, 2012. Decision 22712-D01-2017 (June 29, 2017) • 3 Cancellation of the Kodiak Interconnection Project ATCO Electric Ltd. 5 Decision 14. Pursuant to sections 15 and 19 of the Hydro and Electric Energy Act, the Commission grants ATCO Electric the approval set out in Appendix 1 – Transmission Line Licence 22712-D02-2017 – June 29, 2017 to operate transmission line 7L86. Appendix 1 will be distributed separately. 15. Pursuant to Section 18 of the Hydro and Electric Energy Act, the Commission grants ATCO Electric the approval set out in Appendix 2 – Connection Order 22712-D03-2017 – June 29, 2017 to connection transmission line 7L86 to Cenovus’ Foster Creek 1200S Substation. Appendix 2 will be distributed separately. 16. The Commission rescinds ATCO Electric’s permits and licences 20455-D03-2015 and 20455-D04-2015 to construct and operate transmission lines 7LA86 and 7LB86, respectively, pursuant to Section 10 of the Alberta Utilities Commission Act. Permit and Licence 20455-D02-2015 and Connection Order U2014-391 are rescinded by Licence 22712-D02-2017 and Connection Order 22712-D03-2017, respectively. Dated on June 29, 2017. Alberta Utilities Commission (original signed by) Anne Michaud Commission Member 4 • Decision 22712-D01-2017 (June 29, 2017) .