Decision 2012-318 Alberta Electric System Operator Weasel Creek 947S and Abee 993S Substations Needs Identification Document AltaLink Management Ltd. Abee Substation and Weasel Creek Transmission Project ATCO Electric Ltd. Weasel Creek and Abee Transmission Project Costs Awards November 27, 2012 The Alberta Utilities Commission The Alberta Utilities Commission Decision 2012-318: Alberta Electric System Operator, AltaLink Management Ltd. and ATCO Electric Ltd. Weasel Creek 947S and Abee 993S Substations and Transmission Line Project Needs Identification Document Costs Awards Application Nos. 1608500 and 1608518 Proceeding ID No. 1916 November 27, 2012 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 Web site: www.auc.ab.ca Contents 1 Introduction ........................................................................................................................... 1 2 Authority to award costs ...................................................................................................... 2 3 Assessment of costs claims .................................................................................................... 3 3.1 Dodd/Shwetz Group costs claim .................................................................................... 3 3.2 Honoraria........................................................................................................................ 5 3.2.1 Summary of approved costs .............................................................................. 5 3.3 The Blue Route Group costs claim ................................................................................ 6 3.3.1 Honoraria .......................................................................................................... 6 3.3.2 Summary of approved costs .............................................................................. 7 4 GST ......................................................................................................................................... 7 5 Order ...................................................................................................................................... 7 AUC Decision 2012-318 (November 27, 2012) • i The Alberta Utilities Commission Calgary, Alberta Alberta Electric System Operator, AltaLink Management Ltd. and ATCO Electric Ltd. Weasel Creek 947S and Abee 993S Substations, Decision 2012-318 Transmission Line Project and Application Nos. 1608500 and 1608518 Needs Identification Document Costs Awards Proceeding ID No. 1916 1 Introduction 1. This costs awards deals with claims filed by two local intervener groups relating to four applications comprising Proceeding ID No. 1363 culminating in a hearing before the Alberta Utilities Commission (AUC or Commission) in Redwater, Alberta from May 8 to 10, 2012. 2. On July 22, 2011, the Alberta Electric System Operator (AESO) filed an application with the AUC seeking approval of a needs identification document related to a proposed Weasel Creek 947S substation, an Abee 993S substation and associated 144/138-kilovolt (kV) transmission lines development in the Athabasca/Lac La Biche area. In its application the AESO described the need as providing new points-of-delivery substations and associated transmission facilities to serve the pipeline developments of two industrial customers. 3. On July 28, 2011, AltaLink Management Ltd. (AltaLink) filed a facility application with the AUC seeking approval to construct and operate facilities which were to be located within its operating territory to meet part of the need identified in the AESO’s needs identification document . These facilities included the proposed 138/4.16-kV Abee 993S substation at LSD 3 of the SW-6-61-19 W4M. 4. On August 17, 2011, ATCO Electric Ltd. (ATCO) filed a facility application with the AUC seeking approval to construct and operate facilities which were to be located within its operating territory to meet other parts of the need identified in the AESO’s needs identification document. These facilities included the proposed 144/4.16-kV Weasel Creek 947S substation at LSD 15 on section 32-59-19 W4M. 5. On August 17, 2011, ATCO filed another facility application with the AUC seeking approval to construct and operate further facilities within its operating area to meet other parts of the need identified in the AESO’s needs identification document. 6. The AESO, AltaLink and ATCO requested that the AESO’s need application be combined for consideration with AltaLink and ATCO’s facility applications in accordance with Section 15.4 of the Hydro and Electric Energy Act. The Commission decided to consider these four applications jointly as Proceeding ID No. 1363. 7. On September 26, 2011, the Commission issued a notice of applications. The notice of applications stated that any person who had concerns with or objections to the applications or who wished to support the applications must file a submission by October 28, 2011. The Commission received 16 submissions from individuals and landowner groups in response to the AUC Decision 2012-318 (November 27, 2012) • 1 Weasel Creek 947S and Abee 993S Substation, Alberta Electric System Operator, Transmission Projects and AltaLink Management Ltd. and Needs Identification Document Costs Awards ATCO Electric Ltd. notice of applications issued on September 26, 2011. Some of these interveners withdrew their objections prior to the hearing. 8. On January 10, 2012, the Commission published a notice of hearing notifying that a hearing on these applications was to be held on May 8, 2012, in Redwater, Alberta. 9. An amended notice of hearing was published on January 31, and on February 3, 2012, which updated the previously published map of the proposed development to show an additional alternate route submitted in an amended application by ATCO. 10. On May 1, 2012, the Commission issued its ruling on standing of parties permitted to participate in this proceeding. The hearing was held from May 8 through 10, 2012, at Provident Place in Redwater, Alberta before a Commission panel comprised of Panel Chair Anne Michaud, Commission Member Neil Jamieson and Acting Commission Member Patrick Brennan. 11. On August 15, 2012, the Commission issued Decision 2012-2201 in Proceeding ID No. 1363. 12. On May 31, 2012, the Blue Route Group filed its costs claim, followed by the Dodd/Shwetz Group costs claim filed on June 7, 2012. 13. On June 19, 2012, the Commission circulated a summary of costs being claimed to interested parties. Parties were requested to file any comments regarding the amounts listed in the summary or the merits of the costs being claimed. 14. The Commission received submissions from ATCO on July 18, 2012, questioning the qualifications and expertise regarding transmission line routing of Mr. Dauphinais from Brubaker & Associates Inc., an expert witness who testified for the Dodd/Shwetz Group, and of Mr. Cline from Grid Power Development and Design Inc. who testified at the hearing for the Blue Route Group. In its submission, ATCO submitted that the Commission should have regard to its ruling regarding the expert qualifications of each of these witnesses when determining the appropriate quantum of costs recoverable with respect to each of their services. ATCO took no position with respect to the balance of either costs claim. 15. On July 18, 2012, counsel filed a response to ATCO for the Blue Route Group followed by the Dodd/Shwetz Group’s response. Both interveners argued that its witness was well qualified as an expert, had been previously accepted as an expert witness by the Commission, and had provided relevant and helpful evidence in the proceeding and the costs for his services should be fully recoverable. 2 Authority to award costs 16. Section 22 of the Alberta Utilities Commission Act provides that the Commission may award costs to persons or group of persons that meet the definition “local intervener”. That provision reads in part as follows: 1 Decision 2012-220: Alberta Electric System Operator, AltaLink Management Ltd. and ATCO Electric Ltd. Weasel Creek 947S and Abee 993 Substations and Transmission Line Project Application Nos. 1607512, 1607550, 1607595 and 1607597, Proceeding ID No. 1363, Released: August 15, 2012. 2 • AUC Decision 2012-318 (November 27, 2012) Weasel Creek 947S and Abee 993S Substation, Alberta Electric System Operator, Transmission Projects and AltaLink Management Ltd. and Needs Identification Document Costs Awards ATCO Electric Ltd. 22 (1) For purposes of this section, “local intervener” means a person or group or associations of persons who, in the opinion of the Commission, (a) has an interest in, and (b) is in actual occupation of or is entitled to occupy land that is or may be directly and adversely affected by a decision or order of the Commission in or as a result of a hearing or other proceeding of the Commission on an application to construct or operate a hydro development, power plant or transmission line under the Hydro and Electric Energy Act or a gas utility pipeline under the Gas Utilities Act, but unless otherwise authorized by the Commission does not include a person or group or association of persons whose business interest may include a hydro development, power plant or transmission line or gas utility pipeline. (2) The Commission may make rules respecting the payment of costs to a local intervener for participation in any hearing or other proceeding