Decision 2013-193 Alberta Electric System Operator Buck Lake 454S Substation Upgrade Needs Identification Document AltaLink Management Ltd. Buck Lake 454S Substation Upgrade Facility Application May 27, 2013 The Alberta Utilities Commission Decision 2013-193: Alberta Electric System Operator Buck Lake 454S Substation Upgrade Needs Identification Document Application No. 1608899 AltaLink Management Ltd. Buck Lake 454S Substation Upgrade Facility Application Application No. 1608933 Proceeding ID No. 2183 May 27, 2013 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 The Alberta Utilities Commission Calgary, Alberta Alberta Electric System Operator Buck Lake 454S Substation Upgrade Needs Identification Document AltaLink Management Ltd. Decision 2013-193 Buck Lake 454S Substation Upgrade Applications No. 1608899 and 1608933 Facility Application Proceeding ID No. 2183 1 Introduction and background 1. On October 12, 2012, pursuant to Section 34(1)(c) of the Electric Utilities Act, the Alberta Electric System Operator (AESO), filed Application No. 1608899 (the NID application) with the Alberta Utilities Commission (AUC or the Commission) seeking approval of the need for additional transmission capacity at the existing Buck Lake 454S substation. 2. Pursuant to Section 35 of the Electric Utilities Act, the AESO directed AltaLink Management Ltd. (AltaLink) to submit a facility application to the AUC for the modification of the transmission system to meet the need identified in the NID application. 3. On October 19, 2012, pursuant to sections 14, 15 and 21 of the Hydro and Electric Energy Act, AltaLink filed Application No. 1608933 (the facility application) with the AUC requesting approval to alter and operate the substation and 138-kilovolt (kV) transmission lines 835L and 835AL. 4. The Buck Lake 454S substation is located in the County of Wetaskiwin No. 10, approximately 20 kilometres southeast of Drayton Valley. The substation is located in LSD 4 of Section 5, Township 47, Range 6, west of the Fifth Meridian. 2 Application process 5. The AESO and AltaLink requested that the Commission consider the NID application and the facility application jointly, pursuant to Section 15.4 of the Hydro and Electric Energy Act. The Commission therefore combined the NID application and the facility application under Proceeding ID No. 2183. 6. The Commission issued notice of applications on March 15, 2013, with a deadline of April 5, 2013, to file any submissions to the AUC. The notice was sent directly to all interested parties, residents and landowners within 800 metres of Buck Lake 454S substation and transmission line alterations. The notice was also published in the Drayton Valley Western Review newspaper on March 26, 2013. No objections were received. 7. The Commission received a submission from Alberta Tourism, Parks & Recreation on March 25, 2013, stating that they had no concerns with the proposed project. AUC Decision 2013-193 (May 27, 2013) • 1 Buck Lake 454S Substation Upgrade Alberta Electric System Operator and AltaLink Management Ltd. 3 Discussion 3.1 NID application 8. FortisAlberta Inc. (Fortis), as the electric distribution facilities owner in the Cardium area, forecasted the load growth within the next 10 years in the Cardium area would cause one distribution feeder to exceed the distribution planning 13.0-megavolt-ampere (MVA) maximum loading criteria at the Buck Lake 454S substation. As well, under an N-1 contingency in the distribution system, there would be unsupplied load at Buck Lake 454S substation and also two distribution feeders at Violet Grove 283S substation would be loaded above the distribution planning13.0-MVA maximum loading criteria. 9. Fortis investigated the possibility of using load shifting via its distribution system to resolve the above-mentioned capacity and reliability issues. However, Fortis determined that under an N-1 contingency, one of the 25-kV feeders at Buck Lake 454S would be required to supply a load exceeding the distribution planning 13.0-MVA maximum loading criteria. 10. To address the above-mentioned distribution system reliability issues, Fortis requested the AESO install the following equipment at the existing Buck Lake 454S substation: one additional 138-kV/25-kV 25/33/42-MVA load tap changer (LTC) transformer two 25-kV feeder breakers two new 25-kV distribution feeders 11. The AESO adopted Fortis’ development option stated above and directed AltaLink to undertake system performance studies to assess the system impact of upgrading Buck Lake 454S substation and associated load increase to the Alberta Interconnected Electric System. Load flow, voltage stability and short circuit studies were performed to identify system constraints. The connection assessment performed for the Buck Lake 454S upgrade indicated the proposed development would not adversely impact the Alberta Interconnected Electric System. 12. The AESO also directed AltaLink to assist in conducting a joint participant involvement program providing stakeholders with an opportunity to raise any concerns they may have regarding both the need and the proposed project. The AESO prepared a need overview document which was posted on the AESO website as well as distributed with AltaLink’s information package. The AESO advertised its intention to file its NID application in the Drayton Valley Western Review newspaper. 13. The AESO stated that no concerns were raised regarding the need for the proposed project. 14. The AESO stated that there were no system-related costs associated with the proposed transmission development. 2 • AUC Decision 2013-193 (May 27, 2013) Buck Lake 454S Substation Upgrade Alberta Electric System Operator and AltaLink Management Ltd. 3.2 Facility application 15. Pursuant to Section 35 of the Electric Utilities Act, the AESO directed AltaLink Management Ltd. (AltaLink) to submit a facility application regarding the following system upgrades: Alterations to Buck Lake 454S substation including: o adding one 138/25-kV transformer o adding one 138-kV circuit breaker with associated disconnect switches o adding one seven-cell switchgear building with two 25-kV feeder breakers o salvaging the existing 138-kV circuit breaker and 25-kV disconnect switch across the voltage regulator o expanding the fence line approximately 40 metres north and 22 metres east on AltaLink- owned property Alterations to existing transmission lines 835L and 835AL including: o adding two 138 kV airbreak structures at the tap point of 835L and 835AL o relocating the existing dead-end structure 835AL108 further north along the 835AL centreline to align with the proposed upgrades to the Buck Lake 454S substation. 16. On March 26, 2012, a project-specific information package was mailed, to all stakeholders within 800 metres of the proposed project areas. Personal consultation took place between April 2012 and September 2012. AltaLink advised that a project-specific update letter was mailed to all stakeholders on September 11, 2012. 17. AltaLink stated they consulted with landowners, occupants, residents and First Nations with respect to the proposed alterations. No concerns were raised. 18. The Buck Lake 454S substation site expansion would occur on a previously cleared site surrounded primarily by pasture land and government roads. 19. Alberta Environment and Sustainable Resource Development had no concerns as the project is located within a previously disturbed substation site, and the airbreak switch additions occur within the existing right-of-way on a road allowance. 20. A Phase 1 environmental site assessment concluded that there were no areas of surface staining at the substation site. 21. AltaLink stated it would implement all mitigation measures described in its environmental specification and requirements document.1 Additionally, AltaLink committed to complying with the Environmental Protection and Enhancement Act, federal PCB Regulations, and all applicable statues, regulations, rules, and guidelines. 1 Exhibit 8, Appendix E: Environmental Specifications and Requirements (ESR). AUC Decision 2013-193 (May 27, 2013) • 3 Buck Lake 454S Substation Upgrade Alberta Electric System Operator and AltaLink Management Ltd. 22. Altalink stated that the proposed project would neither require a Conservation and Reclamation Approval under the Environmental Protection and Enhancement Act nor a Conservation and Reclamation Plan. 23. AltaLink submitted a noise impact assessment for the proposed project predicting, after the project is complete, its facilities at Buck Lake 454S substation would be in compliance with AUC Rule 012: Noise Control (AUC Rule 012). 24. AltaLink stated that they received Historical Resources Act clearance from Alberta Culture on April 12, 2012, for the proposed project. 25. AltaLink estimated the cost of the proposed project to be approximately $12,757,000 to be borne by the customer, Fortis. 4 Findings 26. The Commission has reviewed the NID application and the facility application filed by the AESO and AltaLink, respectively. The Commission finds that both applications meet the requirements stipulated in AUC Rule 007: Applications for Power Plants, Substations, Transmission Lines, and Industrial System Designations (AUC Rule 007). 27. Since no interested party demonstrated that the AESO’s assessment of the need for increased transmission capacity in the Drayton Valley area is technically