Decision 22596-D01-2018
Alberta Electric System Operator Needs Identification Document Application
AltaLink Management Ltd. Facility Applications
ATCO Power Heartland Generating Station Interconnection
February 7, 2018
Alberta Utilities Commission Decision 22596-D01-2018: ATCO Power Heartland Generating Station Interconnection
Alberta Electric System Operator Needs Identification Document Application Application 22596-A001
AltaLink Management Ltd. Facility Applications Applications 22596-A002 to 22596-A007
Proceeding 22596
February 7, 2018
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
Alberta Electric System Operator Needs Identification Document Application
AltaLink Management Ltd. Facility Applications Decision 22596-D01-2018 ATCO Power Heartland Generating Proceeding 22596 Station Interconnection Applications 22596-A001 to 22596-A007
1 Decision summary
1. In this decision, the Alberta Utilities Commission decides whether to approve a needs identification document application from the Alberta Electric System Operator (AESO) and facility applications from AltaLink Management Ltd. (AltaLink) to construct and operate facilities for the interconnection of the ATCO Power Canada Ltd. (ATCO Power) Heartland Generating Station. After consideration of the record of the proceeding, and for the reasons outlined in this decision, the Commission finds the AESO’s assessment of the need to be correct and finds that approval of AltaLink’s preferred route 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. The AESO filed an application with the Alberta Utilities Commission, pursuant to Section 34 of the Electric Utilities Act, seeking approval of the ATCO Power Heartland Generating Station Connection Needs Identification Document. The application was registered on April 24, 2017, as Application 22596-A001.
3. AltaLink filed facility applications with the Commission for approval to construct, interconnect and operate additions and upgrades to the 240-kilovolt (kV) transmission system in the Strathcona County area to connect the ATCO Power Heartland Generating Station to the Alberta Interconnected Electric System (the project). The applications, filed pursuant to sections 14, 15, 18, 19 and 21 of the Hydro and Electric Energy Act, were registered on April 25, 2017, as applications 22596-A002 to 22596-A007.
4. Pursuant to Section 15.4 of the Hydro and Electric Energy Act, the AESO and AltaLink requested that the Commission consider the needs identification document application and the facility applications jointly. The Commission advised the AESO and AltaLink that the applications had been combined and were being considered jointly in Proceeding 22596.
5. On May 31, 2017, the Commission issued a notice of applications for Proceeding 22596. Submissions to the Commission in response to the notice were to be made by June 22, 2017. The notice was sent directly to stakeholders within 800 metres of the project. The notice was also published on the AUC website and advertisements were placed in the Sturgeon Creek Post and the Fort Saskatchewan Record on June 7 and June 8, 2017, respectively. A notification was
Decision 22596-D01-2018 (February 7, 2018) • 1 ATCO Power Heartland Generating Station Interconnection Alberta Electric System Operator and AltaLink Management Ltd.
automatically emailed to AUC eFiling System users who had chosen to be notified of the notice of applications issued by the Commission.
6. A statement of intent to participate was received from Nicolas Leblanc, chief electrical engineer at Shell Scotford, on June 13, 2017. In this statement, Mr. Leblanc indicated that the application would support the reliability of the grid in Alberta’s Industrial Heartland area, but that he had concerns with potential induction on pipelines and fences. Mr. Leblanc withdrew his objection to the proceeding on July 17, 2017.
7. On June 7, 2017, the Commission issued an information request to AltaLink to clarify environmental information filed in the facility applications. AltaLink responded to the information request on June 14, 2017. On August 15, 2017, the Commission issued an information request to AltaLink to clarify the approval status of the Lamont 400S Substation. AltaLink responded on August 18, 2017.
8. The Commission placed Proceeding 22596 in abeyance on September 14, 2017, pending ATCO Power’s application for the Lamont 400S Substation and the Commission’s decision on that application. The Commission issued Decision 23125-D01-2018,1 approving the Lamont 400S Substation on February 7, 2018.
3 Discussion
3.1 Needs identification document application 9. The AESO received a system access service request from ATCO Power to connect the Heartland Generating Station’s Lamont 400S Substation, in the Fort Saskatchewan area. ATCO Power requested a contract capacity of 510 megawatts (MW) of new rate supply transmission service and a contract capacity of 15 MW of new rate demand transmission service.
10. The AESO determined that the request could be met by the following developments:
Adding one 240-kV circuit to connect the existing Josephburg 410S Substation to ATCO Power’s Lamont 400S Substation using a radial configuration.
Modifying the existing Josephburg 410S Substation, including adding one 240-kV circuit breaker.
Other associated equipment as more particularly described in the needs identification document application.
11. The AESO examined two other options to meet the need of the project to connect the Lamont 400S Substation. The first option was an in-and-out configuration to the 240-kV transmission line 1120L near Amelia 108S Substation, and the second was an in-and-out configuration to the 240-kV transmission line 1120L near the Josephburg 410S Substation. Both options would require the addition of two 240-kV transmission lines, each approximately
1 Decision 23125-D01-2018: ATCO Power Canada Ltd. – Lamont 400S Substation, Proceeding 23125, Application 23125-A001, February 7, 2018.
2 • Decision 22596-D01-2018 (February 7, 2018) ATCO Power Heartland Generating Station Interconnection Alberta Electric System Operator and AltaLink Management Ltd.
four kilometres in length, and two 240-kV circuit breakers. The AESO ruled out both options due to increased costs when compared to the proposed transmission solution.
12. The AESO stated that the need for the transmission development in the North Saskatchewan area was consistent with the long-term plan for the Northeast Planning Region.
13. The AESO conducted power flow, transient stability and short-circuit analyses to assess the impact of the proposed development on the transmission system. The analyses indicated that the proposed development would create thermal criteria violations under certain Category B conditions that could be mitigated using real-time operational practices and the reconfiguration of the 138-kV transmission system between North Calder 37S Substation and Clyde 150S Substation.
14. The AESO directed AltaLink to file facility applications with the AUC for the facilities to meet the need identified and to assist the AESO in conducting a participant involvement program for its needs identification document application.
3.2 AltaLink facility applications 15. To meet the need identified by the AESO in the needs identification document application, AltaLink proposed to:
Construct one single-circuit 240-kV transmission line, approximately 5.6 kilometres in length and designated as 1181L to connect ATCO Power’s Lamont 400S Substation to the existing Josephburg 410S Substation.
Relocate and re-terminate transmission line 1120L into an existing adjacent bay within the Josephburg 410S Substation.
Re-terminate transmission line 997L into a vacant bay at the Josephburg 410S Substation.
Relocate a portion of the existing transmission line 807L near the Josephburg 410S Substation.
Install fibre optic cable along transmission line 1181L.
Add one new 240-kV circuit breaker and associated equipment to the Josephburg 410S Substation.
16. AltaLink proposed two different routes for the 5.6 kilometres of single-circuit transmission line from the existing Josephburg 410S Substation to the Lamont 400S Substation. The two routes were designated as the preferred route and the preferred variant route. The transmission line would consist of mainly steel and wood H-frame structures, with typical structure heights ranging between 19 and 40 metres.
17. The preferred route and the preferred variant route would generally share the same route, with the exception of approximately two quarter sections. The preferred route would be located within the southern portion of the north half of Section 28, Township 55, Range 21, west of the Fourth Meridian, while the preferred variant route would be located in the northern portion.
Decision 22596-D01-2018 (February 7, 2018) • 3 ATCO Power Heartland Generating Station Interconnection Alberta Electric System Operator and AltaLink Management Ltd.
18. In developing the two applied-for routes, AltaLink utilized a four-stage siting process that included a conceptual, preliminary, detailed and final siting stage. AltaLink stated that it attempted to identify routes with low overall potential environmental, social and economic impact. The project area contains primarily industrial development and leased grazing land, and there are no residences within 800 metres of the proposed right-of-way on either route.
19. AltaLink explained that minor alterations would be required to transmission lines 807L, 1120L and 998L to accommodate the termination of proposed transmission line 1181L at the Josephburg 410S Substation.
20. The proposed modification to the existing 138-kV transmission line 807L includes lowering a single span by adding a new structure and replacing an existing structure. These changes would be required to connect proposed transmission line 1181L to the Josephburg 410S Substation.
21. Transmission line 1120L must be modified to accommodate the termination of proposed transmission line 1181L. The last span of the existing transmission line 1120L requires relocation and re-termination into an existing adjacent bay. AltaLink proposed to accomplish this by utilizing the other side of the existing double-circuit dead-end structure to terminate at the new bay.
22. Transmission line 997L would also require re-termination to an adjacent vacant bay at the Josephburg 410S Substation to prevent a circuit breaker failure from tripping both transmission lines 1120L and 997L simultaneously.
23. AltaLink is the holder of permits and licences 22040-D03-2017,2 U2003-051,3 and U2013-1074 for transmission lines 807L, 997L and 1120L respectively. It submitted that no change to the map of these permits and licences would be required and the alterations would not result in changes to the connection points or centre lines of the transmission lines. Accordingly, AltaLink stated that amendments to these permits and licences would not be required.
24. AltaLink explained that the Josephburg 410S Substation requires the addition of one 240-kV circuit breaker to accommodate the termination of transmission line 1181L, but that no changes would be required to the existing fenceline to upgrade the substation.
25. AltaLink and the AESO conducted a joint participant involvement program. As part of the program, project-specific material was provided to stakeholders within a minimum of 800 metres of the project location. AltaLink notified over 53 stakeholders including landowners, occupants, residents, encumbrance holders, agencies, industry, oil and gas facility owners and special interest groups. Its participant involvement program also included four rounds of consultation and one-on-one consultations with landowners located directly adjacent to and within 100 metres of the existing substation site modification and right-of-way boundary of the proposed transmission line.
2 Transmission Line Permit and Licence 22040-D03-2017, Proceeding 22040, Application 22040-A002, January 23, 2017. 3 Permit and Licence U2003-051, Application 1290955, February 7, 2003. 4 Transmission Line Permit and Licence U2013-107, Proceeding 1808, Application 1608414, February 20, 2013.
4 • Decision 22596-D01-2018 (February 7, 2018) ATCO Power Heartland Generating Station Interconnection Alberta Electric System Operator and AltaLink Management Ltd.
26. In response to a stakeholder’s concern about the visual impacts of the preferred route, AltaLink developed its preferred variant route. The preferred variant route avoids siting the transmission line directly west of the stakeholder’s property and mitigates the visual impact concerns expressed.
27. AltaLink stated that Shell Canada Ltd. opposed the preferred variant route as it would fragment their lands, causing an impact to multi-parcel development plans east of the Shell Scotford site.
28. Both the preferred route and preferred variant route meet the electrical need identified in the functional specification. AltaLink stated that the preferred route has a lower overall impact because all landowners with structures on their lands have no objections to the preferred route. The preferred route would utilize a right-of-way between two large industrial owners and parallels a large linear infrastructure corridor.
29. AltaLink stated that the stakeholder who expressed visual concerns to the preferred route alignment operates an industrial facility, and that there is tree screening between the facility and the preferred route.
30. AltaLink did not include a noise impact assessment because there would be no continuous audible noise sources added by the proposed development.
31. AltaLink retained Golder Associates Ltd. (Golder) to conduct an environmental evaluation of the interconnection project. Golder’s conclusion was that, with the implementation of the mitigation measures outlined in AltaLink’s environmental specifications and requirements, adverse environmental effects associated with the project are predicted to not be significant on either the preferred route or the preferred variant route. The environmental specifications and requirements described construction-related environmental commitments, mitigation measures, communication protocols, environmental training requirements and environmental compliance monitoring programs and reporting for the proposed project. Golder further stated that both route options would have similar adverse residual effects on the environment, but the preferred variant route would cross 24 per cent more wetland area during construction.
32. On March 2, 2017, AltaLink received confirmation from Alberta Culture and Tourism that a historic resources impact assessment for archaeological resources was required. AltaLink stated that it would complete the required assessment prior to construction and adhere to any mitigation requirements issued by Alberta Culture and Tourism.
33. AltaLink estimated the cost of the project to be $37.481 million, with the cost allocated to the customer, ATCO Power. The estimated in-service date is November 1, 2019.
4 Findings
34. The Commission finds that the needs identification document application filed by the AESO contains all of the information required by the Electric Utilities Act, the Transmission Regulation and Rule 007: Applications for Power Plants, Substations, Transmission Lines, Industrial System Designations and Hydro Developments.
Decision 22596-D01-2018 (February 7, 2018) • 5 ATCO Power Heartland Generating Station Interconnection Alberta Electric System Operator and AltaLink Management Ltd.
35. No interested party demonstrated that the AESO’s assessment of the need to connect the Josephburg 410S Substation to the Lamont 400S Substation with a 240-kV transmission line is technically deficient, or that approval of the needs identification document application is not in the public interest. Therefore, the Commission considers the AESO’s assessment of the need to be correct, in accordance with Subsection 38(e) of the Transmission Regulation, and approves the AESO’s needs identification document application.
36. The Commission finds that the facility applications to connect the Josephburg 410S Substation to the Lamont 400S Substation with new transmission line 1181L, filed by AltaLink pursuant to sections 14, 15, 18 and 21 of the Hydro and Electric Energy Act, comply with the information requirements prescribed in Rule 007. The facility applications are also consistent with the need identified in the needs identification document application.
37. The Commission considers it material that none of the landowners on the preferred route for transmission line 1181L objected to the route. However, one of the landowners, Shell Canada Ltd., does not support the preferred variant route because it would cause fragmentation of its land. Although the Commission acknowledges that the preferred variant route may better address the visual impact concerns of one industrial stakeholder, it finds that this is the only factor in its favour. The preferred route, on the other hand, results in less land fragmentation, parallels more existing infrastructure and has a significantly lower environmental impact because it crosses fewer wetlands. The Commission finds that the preferred route is superior to the preferred variant route.
38. The Commission is satisfied that the joint participant involvement program undertaken by the AESO and AltaLink meets the requirements of Rule 007.
39. The Commission considers that the technical, siting and environment aspects of the facilities, as specified in Rule 007, have been met. In addition, the Commission notes that the only objection to the AUC notice of applications was withdrawn.
40. The Commission finds that the proposed alterations to transmission lines 807L, 997L and 1120L are minor alterations and that amendments to the existing permits and licences are not required because the connection points and centre lines remain the same.
41. The Commission is satisfied that there are no outstanding technical or environmental concerns associated with the project, nor are there any outstanding public or industry concerns.
42. Given the considerations discussed above, the Commission finds the proposed project to be in the public interest pursuant to Section 17 of the Alberta Utilities Commission Act.
5 Decision
43. Pursuant to Section 34 of the Electric Utilities Act, the Commission approves the need outlined in Needs Identification Document Application 22596-A001 and grants the AESO the approval set out in Appendix 1 – Needs Identification Document Approval 22596-D02-2018 – February 7, 2018.
6 • Decision 22596-D01-2018 (February 7, 2018) ATCO Power Heartland Generating Station Interconnection Alberta Electric System Operator and AltaLink Management Ltd.
44. Pursuant to sections 14, 15 and 19 of the Hydro and Electric Energy Act, the Commission approves Application 22596-A002 and grants AltaLink the approval set out in Appendix 2 – Permit and Licence 22596-D03-2018 – February 7, 2018, to alter and operate the Josephburg 410S Substation.
45. Pursuant to sections 14, 15 and 19 of the Hydro and Electric Energy Act, the Commission approves Application 22596-A003 and grants AltaLink the approval set out in Appendix 3 – Permit and Licence 22596-D04-2018 – February 7, 2018, to construct and operate transmission line 1181L.
46. Pursuant to sections 18 and 19 of the Hydro and Electric Energy Act, the Commission approves Application 22596-A004 and grants AltaLink the approval set out in Appendix 4 – Connection Order 22596-D05-2018 – February 7, 2018, to connect transmission line 1181L to ATCO Power’s Lamont 400S Substation.
47. The appendices will be distributed separately.
Dated on February 7, 2018.
Alberta Utilities Commission
(original signed by)
Anne Michaud Commission Member
Decision 22596-D01-2018 (February 7, 2018) • 7