December 20, 2012 Don Popowich, Director, Facilities Alberta Utilities Commission Fifth Avenue Place 4th Floor, 425 – 1 Street SW Calgary, Alberta, T2P 3L8 Dear Sir: RE: Application for Alteration of Brintnell Substation 876S Transformer and Voltage Regulator Status Change and Addition of Two 25 kV Circuit Breakers 1.0 1. ATCO Electric Ltd. (“ATCO Electric”) operates the Brintnell Substation 876S (Permit and Licence No. U2012-293) located approximately 30 kilometres (km) northeast of the Town of Wabasca, Alberta. ATCO Electric proposes to change the status of the existing 240 - 25 kilovolt (kV) transformer and 25 kV voltage regulator already in use from temporary to permanent, and add two 25 kV circuit breakers to the substation. The facility alterations are scheduled to be completed by November 1, 2013. 1.1 2. INTRODUCTION DISPOSITIONS REQUESTED ATCO Electric hereby applies to the Alberta Utilities Commission (AUC) pursuant to Section 14 and 15 of the Hydro and Electric Energy Act (HEEA) (Chapter H-16, RSA 2000, as amended) for Permit, Licence, Approval, and Order to alter and operate the Brintnell Substation 876S (Permit and Licence No. U2012-293). 1.2 PROJECT NEED 3. Upgrades to transmission facilities are required to meet the existing and future demand in the area. Pursuant to the applicable processes under the Electric Utilities Act, the need for the project has been addressed by the Alberta Electric System Operator (AESO) as Brintnell 876S Substation Modification. 4. In accordance with Section 35 of the Electric Utilities Act, the AESO has directed ATCO Electric to submit this Application. A copy of that correspondence is included in Attachment 4. AESO and ATCO Electric have agreed to coordinate the submission of the Need Identification Document (NID) and Facility Application. Under the provisions of the applicable AESO and AUC rules and of Section 15.4 of the HEEA, ATCO Electric hereby 10035 - 105 Street, Edmonton, Alberta, Canada T5J 2V6 Tel: 780-420-7310 Fax: 780-420-7400 www.atcoelectric.com ATCO Electric Application to Alberta Utilities Commission Attachment 1 – Application Text Brintnell Substation Alteration December 2012 requests that this application be combined for consideration with NID Application No. 1609118. 2.0 5. PROJECT DETAILS This section describes the location, project details, and engineering specifications of the proposed transmission facilities. The facilities will be designed in accordance with the AESO’s Direction (Attachment 4) and Final Functional Specification (Attachment 5). Brintnell Substation 876S 6. ATCO Electric proposes to add two 25 kV circuit breakers to the current substation equipment, and change the status of the existing 28/37.3/46.7 MVA 240 – 25kV transformer and 25/33.3/41.6 MVA voltage regulator, described in previous Application No. 1606746 as a 42 MVA 25 kV voltage regulator, from temporary to permanent. The transformer and voltage regulator were originally installed on a temporary basis, but load demands in the area require the status of this equipment be changed to permanent. Location and Site 7. The Brintnell Substation is situated in the Municipal District (M.D.) of Opportunity No. 17 located approximately 30 km northeast of the town of Wabasca. The site is located in LSDs 10 & 11 of 36-82-23 W4M, as shown on Site Plan Drawing RS-876S – A - 01 (Attachment 2). ATCO Electric holds a Crown lease for the existing substation property. No fence expansion is necessary to accommodate the proposed substation alterations in this Application. Proposed addition / removal of major equipment a. Two (2) 25 kV circuit breakers (to be added). Final design specifications for listed equipment a. b. c. d. e. f. g. One (1) 28/37.3/46.7 MVA 240-25 kV transformer; One (1) 30/40/50 MVA 240-25 kV transformer; Five (5) 240 kV circuit breakers; Six (6) 25 kV circuit breakers; One (1) 42 MVA 25 kV voltage regulator; An enclosure surrounded by a chain link fence; and Other substation equipment as described in the application. Engineering Outline 8. The general substation equipment layout is indicated on the Site Plan, Drawing RS-876S – A - 01 (Attachment 2). Engineering information, including switching and protection features, is shown on the Proposed Single Line Diagram, RS-876S – A - 02 (Attachment 3). Page 2 ATCO Electric Application to Alberta Utilities Commission Attachment 1 – Application Text 2.1 9. SCHEDULE Construction is scheduled to commence July 7, 2013, with a projected in-service date of November 1, 2013. 2.3 11. TRANSFORMER PURCHASE ATCO Electric proposes to purchase a 240 – 25 kV, 50 MVA LTC transformer. The purchase of the transformer is to replace the system spare which is currently installed at Brintnell Substation 876S on a temporary basis and is proposed to remain installed in the Brintnell Substation 876S on a permanent basis. The cost of purchasing a new spare transformer is included in the Proposal to Provide Service cost estimate in Table 1. 2.2 10. Brintnell Substation Alteration December 2012 PROJECT COST The cost estimate for the scope of project work is $4,881,812 as detailed in ATCO Electric’s Proposal to Provide Service (PPS) that was submitted to the AESO. Additional details are provided in Table 1. Page 3 ATCO Electric Application to Alberta Utilities Commission Attachment 1 – Application Text Brintnell Substation Alteration December 2012 TABLE 1 - PROJECT COST ESTIMATE FOR ALTERATION OF BRINTNELL SUBSTATION 876S PROJECT (Accuracy +20/-10% 2012 Dollars) System Portion Customer Portion TOTAL Transmission Line Costs Material Labour $ $ - $ $ - $ $ - Total-Transmission line $ - $ - $ - Substation Facilities Cost Material $ - $ 1,488,550 $ 1,488,550 Labour $ - $ 1,336,676 $ 1,336,676 Total-Substations $ - $ 2,825,226 $ 2,825,226 $ - $ - Telecommunications Cost Material $ Labour - $ - $ - $ - Total-Telecommunication $ - $ - $ - Owner Costs Proposal to Provide Service $ - $ 58,000 $ 58,000 Facility Applications $ - $ 101,970 $ 101,970 Land Rights - Easements Land - Damage Claims $ $ - $ $ - $ $ - Land - Acquisitions Owners Costs $ $ - $ $ 159,970 $ $ 159,970 Procurement Project Management Construction Management Contingency $ $ $ $ - $ $ $ $ 56,700 275,880 309,880 362,800 $ $ $ $ 56,700 275,880 309,880 362,800 Distributed Costs $ - $ 1,005,260 $ 1,005,260 Total Owners and Dist. Costs $ - $ 1,165,230 $ 1,165,230 Total Direct Costs $ - $ 3,990,455 $ 3,990,455 Salvage - Transmission Line Labour $ - $ - $ - Salvage - Substation Labour $ - $ - $ - Land Remediation and Reclamation $ - $ - $ - Salvage Costs Other Costs $ - $ - $ - Inflation $ E&S $ AFUDC $ - $ $ $ 502,000 389,357 - $ $ $ 502,000 389,357 - Total Indirect Costs $ - $ 891,356 $ 891,356 TOTAL PROJECT COSTS $ - $ 4,881,812 $ 4,881,812 Distributed Costs Page 4 ATCO Electric Application to Alberta Utilities Commission Attachment 1 – Application Text 3.0 Brintnell Substation Alteration December 2012 LANDHOLDER AND AGENCY REFERRAL 12. ATCO Electric undertook a comprehensive consultation program in accordance with the requirements of AUC Rule 007. All landowners, occupants, agencies and other interested parties within at least 800 metres (m) of the existing Brintnell Substation were notified of the proposed alterations. ATCO Electric notified 20 landowners, occupants, agencies and other potentially interested parties. 13. ATCO Electric mailed out an information package on October 17, 2012 to the 20 potentially interested parties to notify them of the project, to provide project specific details and to facilitate the identification of any questions or concerns. The information package is included in Attachment 6. The information package included: 14. Project information package entitled Upgrades to the Brintnell Substation Project Substation site map AESO document entitled Need for Brintnell Capacity Increase in the Fort McMurray Area Reply form and postage paid envelope Alberta Utilities Commission brochure entitled Public Involvement in Needs or Facilities Application In addition to notification, ATCO Electric also conducted personal consultation with directly affected and adjacent landowners, occupants, agencies and other interested parties, including: 7 agencies/organizations 6 industrial landholders or occupants 2 trappers; and 1 First Nation community 15. This personal consultation was conducted with landholders and agencies in the project search area from October to December 2012, in order to identify any concerns. ATCO Electric has confirmed no objections or concerns for the proposed alterations. 16. Following submission of the Facility Application, all participants identified by ATCO Electric from the outset of the participant involvement program will receive an update about the Project announcing that ATCO Electric has applied for the upgrades to the Brintnell Substation. Those in the vicinity of the substation site will be advised of the construction schedule and details prior to construction. 17. Agency, industry and trapper consultations are summarized in Table 2. Page 5 ATCO Electric Application to Alberta Utilities Commission Attachment 1 – Application Text 19. Brintnell Substation Alteration December 2012 ATCO Electric identified one First Nation, the Bigstone Cree Nation, as a potential interest holder based on information from First Nation communities. Starting in October 2012, ATCO Electric provided preliminary project information to this First Nation. The First Nation was provided with additional project information as needed to help assess their interests and to aid in planning any further activities required to identify potential impacts. The Bigstone Cree Nation has confirmed that they do not have any interest in the project. 5.0 LAND AND ENVIRONMENTAL CONSIDERATIONS 20. The existing fenced area of the Brintnell Substation is approximately 131 m by 116 m and will not be expanded. The surrounding area is Crown land with numerous nearby commercial and industrial interests. Two companies hold forest interests in the area with Forest Management Agreements and timber quotas. A pipeline right-of-way exists directly east of the existing substation. 21. ATCO Electric has received Historical Resources Act clearance from Alberta Culture (AC) for this project. If any historical resources are discovered during construction, activity will be suspended until permission is granted by AC. 22. The scope of the activity is relatively minor and the proposed alterations will occur entirely within the existing property. There will be no significant impacts on the adjacent landholders or the environment. Landholders can expect some increase in noise and traffic during construction. ATCO Electric will undertake the alterations adhering to Alberta Environment’s R&R/11-03, Environmental Protection Guidelines for Transmission Lines. 6.0 23. ATCO Electric commissioned a Noise Impact Assessment (NIA) for the Brintnell Substation 876S on October 12, 2010 under a previous project. This NIA was submitted as part of Application No. 1606746. The results indicate that the facility complies with the permissible sound levels (PSL) outlined in AUC Rule 012: Noise Control. ATCO Electric has determined that the findings of this NIA are still valid as no additional significant noise-producing equipment is being installed or altered for this project. 7.0 24. NOISE EFFECTS CONCLUSION The facilities will be built and operated in accordance with the authorizations granted pursuant to this application, Section 39 of the Electric Utilities Act (Safe and Reliable Operation), the Safety Codes Act, and applicable regulations and industry standards. The proposed facilities will be inspected and declared safe prior to being energized. Page 8 ATCO Electric Application to Alberta Utilities Commission Attachment 1 – Application Text 25. Brintnell Substation Alteration December 2012 ATCO Electric is confident that the alterations described herein are both warranted and cost effective, and respectfully requests the AUC’s favourable and timely consideration. Correspondence or questions concerning this project can be directed to Project Planner Sarah Stephenson (phone 780-509-9094), or the Project Manager Rosaria Obazee (phone 780-508-4798). Yours truly, ATCO Electric Ltd. <original signed by> Carey Kostyk, P.Eng, PMP Director, Transmission Projects & Chief Engineer ATTACHMENTS: 1. Application Cover Letter / Text (this document) 2. Proposed Site Plan, Drawing RS-876S – A - 01 3. Proposed Substation Single Line Diagram, RS-876S – A - 02 4. AESO Direction Correspondence (Project 1233, July 17, 2012) 5. AESO Functional Specification (December 11, 2012) 6. Project Information Package to landholders and agencies (October 2012) Note: A confidential site plan drawing has been included as part of the application. This drawing includes landholder information for use by the AUC as part of their review and is designated as “RS-876S – AC – 01.” Page 9 Upgrades to the Brintnell Substation Project October 2012 Why are you receiving this information package? Upgrades to existing transmission facilities are needed near Wabasca, in north-central Alberta. ATCO Electric was directed by the Alberta Electric System Operator (AESO) to prepare a facility proposal to build the required upgrades. We have prepared this summary for landowners, residents, occupants, agencies and interested parties located near the Brintnell substation. This package will provide you with important project information and outlines our public consultation process. We invite any comments, questions or concerns you may have. Please refer to page four for our contact information and details. Project Overview Included in this package Alterations to the Brintnell substation are required to provide a reliable source of electricity and address concerns about capacity. • Project information brochure If approved, the project will involve upgrades to the existing Brintnell substation located near Wabasca. The planned upgrades include installing new equipment and replacing some existing equipment. All upgrades will occur within the existing fenced area at the substation site. Upgrades to the Brintnell Substation Project • Reply form and postage paid envelope • Alberta Utilities Commission brochure Public Involvement in Needs or Facilities Applications • Alberta Electric System Operator Need Overview document • Site plan 1 Project Need and Details Brintnell Substation (876S) When upgrades to Alberta’s electrical system are needed, they are identified by the Alberta Electric System Operator (AESO). The AESO has received a request from ATCO Electric to perform necessary upgrades to the Brintnell substation in order to maintain reliability in the area and address capacity concerns. The Brintnell substation, called 876S, is located approximately 30 kilometres (km) northeast of the Town of Wabasca in the Municipal District of Opportunity on the northeast and northwest quarter of Section 36-82-23 W4M. The AESO is an independent, not-for-profit organization responsible for the safe, reliable and economic planning and operation of the provincial transmission grid. For more information about why this project is needed, please refer to the AESO’s Need Overview included with this package, or visit www.aeso.ca. If you have any questions or concerns about the need for this project you may contact the AESO directly or you can make your concerns known to an ATCO Electric representative who will communicate them to the AESO on your behalf. If approved, upgrades to the Brintnell substation will include installing two 25 kilovolt (kV) circuit breakers and associated switches and equipment (please refer to the site plan on page three). The project will also include changing the status of the 240/25 kV transformer and regulator already in use in the substation from temporary to permanent. Facilities Application Process Once public feedback has been considered, ATCO Electric will submit a facilities application to the Alberta Utilities Commission (AUC) to obtain approval to construct the planned upgrades to the Brintnell substation. For more information about how you can participate in the process, please refer to the enclosed AUC brochure entitled Public Involvement in Needs or Facilities Applications. A substation in Alberta Upgrades to the Brintnell Substation Project 2 Brintnell Substation Site Plan Upgrades to the Brintnell Substation Project 3 ATCO Electric Proposed Timeline* October 2012 Consultation with landowners and agencies December 2012 Submission of the facilities application to the Alberta Utilities Commission (AUC) July 2013 If approval is granted by the AUC, construction will commence November 2013 Facilities completed and operating *Timing may be adjusted to reflect final plans. Contact Us Albertans count on us for the safe, reliable and costeffective delivery of electricity to their homes, farms and businesses. We have delivered electricity to Albertans for 85 years. Headquartered in Edmonton, ATCO Electric has 38 service offices serving nearly two-thirds of the province in northern and east-central Alberta. We help keep the lights on across the province by building, operating and maintaining more than 72,000 kilometres of transmission and distribution power lines. We also operate an additional 10,000 kilometres of distribution power lines on behalf of Rural Electrification Associations. We are committed to responsible development and environmental practices. We conduct an open and transparent consultation process, carefully considering the impacts to landowners, communities and the environment. Your comments and concerns are important to us. Please contact us toll free 1-855-420-5775 or direct: Sarah Stephenson, Project Planner ATCO Electric 10035-105 Street Edmonton, AB T5J 2V6 Phone: 780-509-9094 Fax: 780-420-5030 Email: consultation@atcoelectric.com Website: www.atcoelectric.com Upgrades to the Brintnell Substation Project 4 Need for Brintnell Capacity Increase in the Fort McMurray Area Transmission Development Information for Stakeholders Why is this transmission development needed? ATCO Electric has requested a capacity increase at the Brintnell 876S substation to support load growth in the Brintnell oilfield area near the Town of Wabasca in the Fort McMurray area. In response to this request, the Alberta Electric System Operator (AESO) has determined that this need for capacity increase can be reliably met by installing new breakers and changing the status of one transformer from temporary to permanent at the Brintnell 876S substation. The AESO is processing ATCO’s request, including providing information to landowners, occupants, residents and agencies in the area that may be near the proposed transmission development. The AESO intends to apply to the Alberta Utilities Commission (AUC) for approval of this need in late 2012. The Brintnell 876S Upgrade Needs Identification Document (NID) will be available at http://www.aeso.ca/transmission/8969.html when the AESO files this application with the AUC. Who is the AESO? Alberta’s transmission system, sometimes referred to as the Alberta Interconnected Electric System (AIES), is planned and operated by the AESO. The transmission system comprises the high-voltage lines, towers and equipment (generally 69kV and above) that transmit electricity from generators to lower voltage systems that distribute electricity to cities, towns, rural areas and large industrial customers. The AESO’s role is to maintain safe, reliable and economic operation of the AIES. The AESO’s planning responsibilities includes determining the need for transmission system development and the manner in which that need is met. The AESO is also mandated to facilitate the interconnection of qualified market participants to the AIES. The AESO is regulated by the AUC and must apply to the AUC for approval of its NID. How is ATCO involved? ATCO is the transmission facilities owner (TFO) in the area. While the AESO is responsible for identifying that transmission system development is needed, ATCO is responsible for detailed siting and routing, constructing, operating and maintaining the associated transmission facilities. The AESO has directed ATCO to provide information to stakeholders on this need and to file a facility proposal application with the AUC which will include a detailed description and location of the proposed transmission development. P1233 October 2012 Further Information The AESO appreciates your views on the need for transmission system development and your comments are encouraged. If you have any questions or suggestions regarding the need for the proposed transmission system development in the Fort McMurray area or the AESO’s application regarding this need, please contact: Megan Harris AESO Stakeholder Relations 1-888-866-2959 stakeholder.relations@aeso.ca 2500, 330 – 5th Avenue SW Calgary, Alberta T2P 0L4 The AESO is committed to protecting your personal privacy in accordance with Alberta's Personal Information Protection Act. Any personal information collected by the AESO with regard to this project may be used to provide you with further information about the project, may be disclosed to the Alberta Utilities Commission (and as a result, may become public), and may also be disclosed to AltaLink as the legal owner of transmission facilities in your area. If you have any questions about how the AESO will use and disclose your personal information, please contact us at 1-888-866-2959 or at stakeholder.relations@aeso.ca REPLY FORM UPGRADES TO THE BRINTNELL SUBSTATION PROJECT 10035 – 105 Street, Edmonton, Alberta, T5J 2V6 CONTACT INFORMATION Date (DD/MM/YYYY): First Name: Please help us identify new contacts Last Name: Company/Organization Name (if applicable): Mailing Address: You were contacted about this project because ATCO Electric identified you or your company/organization as having a land interest in the vicinity of the project. Is there anyone else associated with your property, such as other owners, renters or occupants, who we should also contact? If so, please provide the name(s) and contact information below: City/Town: Province: Postal Code: Home Phone: Cell Phone: Business Phone: Fax: I would like to receive all future correspondence about this project by Email (If this is your preference, please check the box) Email: ABOUT PRIVACY: The information on this form is being collected to help identify potential concerns with proposed alterations and the location of proposed power transmission facilities, to facilitate communications about the project, and to comply with our obligations to the Alberta Utilities Commission. This information may be provided to the Alberta Utilities Commission, other electric facility owners or the Surface Rights Board. Information relating to the need for the facilities may be provided to the Alberta Electric System Operator. Enquiries or concerns about ATCO Electric's privacy policies can be directed to Tony Melnychuk, privacy officer (address above), phone 780-420-4466. Please list any residences, buildings or other areas on your property that should be avoided: I am not aware of any residences, buildings, facilities, or areas on my property that should be avoided (If this statement applies to you, please check the box) LOCATION DESCRIPTION (If you require additional space, please attach a separate sheet) Please share any comments or concerns that you have about the project: HOW TO SUBMIT: Please use the enclosed envelope to return by mail or fax to 780-420-5030. If you would like more information about the project, please contact us toll free 1-855-420-5775 or by Email: consultation@atcoelectric.com.