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