Decision 21552-D01-2016 AltaLink Management Ltd. and TransAlta Corporation Transmission Line 754L Relocation July 25, 2016 Alberta Utilities Commission Decision 21552-D01-2016 AltaLink Management Ltd. and TransAlta Corporation Transmission Line 754L Relocation Proceeding 21552 Applications 21552-A001 and 21552-A002 July 25, 2016 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 AltaLink Management Ltd. and TransAlta Corporation Transmission Line 754L Relocation 1 Decision 21552-D01-2016 Proceeding 21552 Applications 21552-A001 and 21552-A002 Decision summary 1. In this decision, the Alberta Utilities Commission must decide whether to approve applications from AltaLink Management Ltd. (AltaLink) and TransAlta Corporation (TransAlta) to relocate portions of Transmission Line 754L and Transmission Line 742L. After consideration of the record of the proceeding, and for the reasons outlined in this decision, the Commission finds that approval of the proposed development is in the public interest, having regard to the social and economic effects of the project and its effect on the environment. 2 Introduction and background 2. AltaLink, pursuant to Permit and Licence U2006-206,1 is the operator of portions of the 138-kilovolt (kV) Transmission Line 754L outside the boundaries of I.R. 142, I.R. 143 and I.R. 144, in the Canmore-Horseshoe area. TransAlta, pursuant to Licence U2002-923,2 is the operator of portions of Transmission Line 754L, within the boundaries of I.R. 142, I.R. 143 and I.R. 144, in the Kananaskis area. Transmission Line 754L connects the Seebe 245S Substation3 to the Canmore 118S Substation. 3. AltaLink, pursuant to Licence U2002-694,4 is the operator of the 138-kV Transmission Line 742L from the Exshaw 985S Substation to a connection point on Transmission Line 754L in the hamlet of Exshaw. 4. AltaLink, pursuant to sections 14, 15 and 21 of the Hydro and Electric Energy Act, filed applications with the Commission requesting approval to: 1 2 3 4 Relocate and construct approximately 2.7 kilometres of Transmission Line 754L. Salvage approximately 2.4 kilometres of Transmission Line 754L. Rebuild approximately 800 metres of Transmission Line 754L. Salvage approximately 325 metres of Transmission Line 742L. Transmission Line Permit and Licence U2006-206, Application 1473092, August 3, 2006. Licence U2002-923, Application 1274771, December 13, 2002. Permit and Licence U2006-206 showed Transmission Line 754L connecting from Horseshoe 30S Substation to Canmore 118S Substation. Permit and Licence CP 87-47A redesignated Horseshoe 30S Substation as Seebe 245S Substation. Transmission Line Licence U2002-694, Application 1274771, December 13, 2002. Decision 21552-D01-2016 (July 25, 2016) • 1 Transmission Line 754L Relocation AltaLink Management Ltd. and TransAlta Corporation Rebuild approximately 20 metres of Transmission Line 742L in a T-tap configuration from the relocated segment of Transmission Line 754L to the Exshaw 985S Substation. (collectively referred to as the proposed project) 5. AltaLink also applied on behalf of TransAlta to update Licence U2002-923 in order to reflect the relocation of Transmission Line 754L. AltaLink stated that no changes were being proposed for TransAlta’s facilities and TransAlta expressed no concerns regarding the proposed project. 6. The applications were registered as Application 21552-A001 and Application 21552-A002 on April 26, 2016, and were considered as Proceeding 21552. 7. The Commission issued information requests on May 16, 2016 and July 12, 2016, and AltaLink responded to the information requests on May 24, 2016 and July 19, 2016, respectively. 8. The Commission issued a notice of applications on May 16, 2016. The deadline for filing submissions with the AUC was June 6, 2016. The notice was sent directly to landowners, companies and agencies within 800 metres of the proposed project. 9. The Commission received return mail from the notice, which was forwarded to AltaLink with a request to obtain updated address information. On June 17, 2016, AltaLink provided updated addresses and stated that stakeholders with the updated addresses were mailed or emailed a project-specific information package and the AUC’s notice of applications. AltaLink also stated it was unable to locate new mailing addresses for eight stakeholders and, as such, hand-delivered a project-specific information package and the AUC’s notice of applications to the legal land locations these stakeholders either own or occupy.5 10. 3 No submissions were received for this proceeding. Discussion 11. AltaLink filed the applications at the request of Lafarge Canada Inc. (Lafarge), a customer of AltaLink. Lafarge asked for the relocation in order to accommodate the future expansion of Lafarge’s quarry, which is located on Crown land. 12. The proposed project would be located on a combination of land owned by the Municipal District of Bighorn and Crown land in the Green Zone of Alberta. The area is a combination of montane terrain and vegetation types, and residential development, including the hamlet of Exshaw and the Lafarge cement plant and quarry. The proposed project area is from LSD 12 of Section 23, Township 24, Range 9, west of the Fifth Meridian to LSD 11 of Section 28, Township 24, Range 9, west of the Fifth Meridian.6 13. The proposed rebuild and relocation of Transmission Line 754L would consist of a combination of one-pole, two-pole and three-pole structure types and vertical dead-end structure 5 6 Exhibit 21552-X0026, AML Letter to AUC – Returned Notice of Application, PDF page 1 of 4. Exhibit 21552-X0003, AML 754L Line Relocation – Appendix A Project Maps. 2 • Decision 21552-D01-2016 (July 25, 2016) Transmission Line 754L Relocation AltaLink Management Ltd. and TransAlta Corporation types. Transmission Line 754L would be relocated approximately 1.3 kilometres south of its existing location, to just north of the Bow River. 14. In its route determination process for Transmission Line 754L, AltaLink set up a study area with a north boundary located along the closest north quarter line of the existing Transmission Line 754L, a west boundary approximately 200 metres west of Lafarge’s quarry lease, a south boundary along the Bow River and an east boundary located along the east quarter line of the northwest quarter of Section 23, Township 24, Range 9, west of the Fifth Meridian. 15. AltaLink’s proposed route for Transmission Line 754L would parallel Highway 1A for approximately 1.5 kilometres. The proposed route of Transmission Line 754L would also parallel an ATCO Gas pipeline and a Canadian Pacific Railway rail line. AltaLink stated the proposed route of Transmission Line 754L would not traverse pasture or harvested land, would not be located on native prairie, in parks or protected areas, and would not impact wetland habitat. 16. AltaLink determined that a route option for Transmission Line 754L could not be located further north of the existing location because it would still remain inside Lafarge’s quarry lease boundaries. A route option further south of the proposed route would be located in a provincial park, with the closest existing disturbance being the TransCanada Highway. Thus, routing options further north or south would have resulted in a longer line length and additional disturbance and associated land impacts. AltaLink stated that the route proposed for Transmission Line 754L represents a low impact location. 17. As a result of the relocation of Transmission Line 754L, the connection point with Transmission Line 742L was proposed to be relocated. Consequently, approximately 325 metres of Transmission line 742L was proposed to be salvaged and a portion was proposed to be rebuilt. The proposed rebuild of Transmission Line 742L would consist of the replacement of one single-pole span from the Exshaw 985S Substation to the new location of Transmission Line 754L. 18. AltaLink conducted a participant involvement program in accordance with Appendix A of Rule 007: Applications for Power Plants, Substations, Transmission Lines, Industrial System Designations and Hydro Developments and included occupants, residents and landowners, leaseholders, local, regional and provincial government agencies and industry. AltaLink stated that it ensured stakeholders were properly and adequately notified about the proposed project and its potential adverse effects, given opportunity to ask questions and raise issues and concerns about the proposed project, and able to provide input regarding the proposed project. Two information sessions were held by AltaLink at the Exshaw Community Hall and two rounds of consultation were conducted with stakeholders identified as having interests in land directly adjacent to the proposed project. The rounds of consultation occurred between November 2014 to January 2015 and November 2015 to January 2016. AltaLink also completed a First Nations consultation program that received confirmation from the Government of Alberta’s Aboriginal Consultation Office as being adequate. 19. AltaLink stated it was not aware of any outstanding concerns related to the proposed project. Decision 21552-D01-2016 (July 25, 2016) • 3 Transmission Line 754L Relocation AltaLink Management Ltd. and TransAlta Corporation 20. Personnel from Alberta Environment and Parks (AEP) were contacted and provided with project information, and follow up consultation was completed to discuss project specifics. There were no outstanding concerns from AEP. AltaLink anticipated that the potential environmental effects from construction of the proposed project would be minimal. 21. AltaLink stated that construction of the proposed project would occur during dry or frozen ground conditions. Since a large portion of the proposed project would be located in an area with little vegetation, impacts to vegetation would be minimal. 22. Wildlife and wildlife features identified in the Environmental Field Report include an artificial osprey platform, a herd of bighorn sheep and potential presence of both tundra and trumpeter swans. The proposed project does not fall within the setbacks of a provincially identified trumpeter swan area. With regard to an osprey platform located adjacent to Highway 1A, AltaLink consulted with an AEP biologist and FortisAlberta Inc., as the osprey platform was currently maintained by FortisAlberta Inc. AltaLink determined that the platform would be removed to facilitate construction and re-established after construction completion. AltaLink stated that construction was scheduled to occur outside of the osprey nesting season. 23. AltaLink’s environmental specifications and requirements document stated that construction activities would be carried out to meet the requirements of environmental legislation, standards and guidelines. During construction, the environmental lead from AltaLink would monitor project activities to identify and rectify potential environmental issues. 24. Alberta Culture and Tourism determined that the potential for the proposed project to affect archaeological sites was high and required AltaLink to complete a pre-construction historical resources impact assessment. On March 2, 2016, AltaLink received Historical Resources Act approval for the proposed project. 25. AltaLink estimated the cost of the proposed project to be $3.3 million (within +20 per cent / -10 per cent accuracy), paid for by the customer, Lafarge. AltaLink would be responsible for the cost of relocating a portion of Transmission Line 754L between nodes A20 and A35, which was estimated to be $80,000 (within +/- 30 per cent accuracy). AltaLink stated this cost would be paid through its Capital Replacement and Upgrades budget and was not included in the proposed project budget. 4 Findings 26. The Commission finds that the application complies with the information requirements prescribed in sections 14, 15 and 21 of the Hydro and Electric Energy Act, and Rule 007. 27. The Commission observes that AltaLink’s participant involvement program was conducted through notification and personal consultation, and that there were no outstanding concerns. The Commission finds that the participant involvement program undertaken by AltaLink met the requirements of Rule 007. 28. The Commission finds that the technical and environmental aspects of the proposed project fulfill the requirements of Rule 007. 4 • Decision 21552-D01-2016 (July 25, 2016) Transmission Line 754L Relocation AltaLink Management Ltd. and TransAlta Corporation 29. The Commission finds, based on AltaLink’s evidence, that the proposed project will result in minimal environmental effects through the implementation of AltaLink’s environment standards of practice, environment specifications and requirements document, and construction schedule. 30. The Commission finds that the route option for Transmission Line 754L represents a low impact location for the proposed project, as other routing options would result in a longer line length, additional disturbances and associated land impact. The Commission also finds that the rebuild for Transmission Line 742L is necessary in order to connect the Exshaw 985S Substation to the relocated Transmission Line 754L. 31. The Commission recognizes that the proposed project was applied for at the request of Lafarge, who asked for the relocation in order to accommodate the future expansion of its quarry. The Commission acknowledges that the proposed project costs would be paid by Lafarge and the cost of relocating a portion of Transmission Line 754L between nodes A20 and A35 would be paid by AltaLink through its Capital Replacement and Upgrades budget. 32. Based on the foregoing, the Commission considers the application to be in the public interest in accordance with Section 17 of the Alberta Utilities Commission Act. 5 Decision 33. Pursuant to sections 14, 15, 19 and 21 of the Hydro and Electric Energy Act, the Commission approves the applications and grants AltaLink and TransAlta the approvals set out in: 34. Appendix 1 – Transmission Line Permit and Licence 21552-D02-2016 – July 25, 2016. Appendix 2 – Decommission and Salvage Approval 21552-D03-2016 – July 25, 2016. Appendix 3 – Transmission Line Permit and Licence 21552-D04-2016 – July 25, 2016. Appendix 4 – Decommission and Salvage Approval 21552-D05-2016 – July 25, 2016. Appendix 5 – Transmission Line Licence 21552-D06-2016 – July 25, 2016. The appendices will be distributed separately. Dated on July 25, 2016. Alberta Utilities Commission (original signed by) Neil Jamieson Commission Member Decision 21552-D01-2016 (July 25, 2016) • 5