ENMAX Power Corporation

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Decision 23798-D01-2018 ENMAX No. 36 Substation Transformer Capacity Upgrade August 21, 2018

Alberta Utilities Commission Decision 23798-D01-2018 ENMAX No. 36 Substation Transformer Capacity Upgrade Proceeding 23798 Application 23798-A001 August 21, 2018 Published by the: Alberta Utilities Commission Eau Claire Tower, 1400, 600 Third Avenue S.W. Calgary, Alberta T2P 0G5 Telephone: 403-592-8845 Fax: 403-592-4406 Website: www.auc.ab.ca

Alberta Utilities Commission Calgary, Alberta Decision 23798-D01-2018 Proceeding 23798 ENMAX No. 36 Substation Transformer Capacity Upgrade Application 23798-A001 1 Decision summary 1. In this decision, the Alberta Utilities Commission must decide whether to approve an application from (ENMAX) to alter and operate ENMAX No. 36 Substation. The need for the proposed development was approved by the Alberta Electric System Operator (AESO) pursuant to an abbreviated needs approval process established under ISO Rules Section 501.3. After consideration of the record of the proceeding, and for the reasons outlined in this decision, the Commission finds that approval of the project 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. ENMAX, pursuant to Permit and Licence 22421-D02-2017, 1 is the operator of ENMAX No. 36 Substation located in the northeast quarter of Section 5, Township 25, Range 2, west of the Fifth Meridian in Calgary. The municipal address of the substation is 10202 Bearspaw Dam Road N.W. 3. On July 20, 2018, pursuant to ISO Rules Section 501.3 Abbreviated Needs Approval Process, ENMAX received approval from the AESO for the need to upgrade the ENMAX No. 36 Substation. 4. On August 1, 2018, ENMAX filed an application with the AUC for approval to alter and operate the ENMAX No. 36 Substation. The application was filed pursuant to sections 14, 15, 18 and 19 of the Hydro and Electric Energy Act and registered as Application 23798-A001. 5. Due to the nature of the application, a notice of application was not issued and therefore, a hearing was not required as the Commission considered that its decision or approval would not directly and adversely affect the rights of a person pursuant to Section 9 of the Alberta Utilities Commission Act. 3 Discussion 6. Pursuant to the abbreviated needs approval process, the AESO issued the approval in response to a request from ENMAX, the market participant, for a system access service request to improve the reliability of electricity services in northwest Calgary. The AESO determined that the system access service request could be addressed through the upgrading of the 1 Substation Permit and Licence 22421-D02-2017, Proceeding 22421, Application 22421-A001, March 8, 2017. Decision 23798-D01-2018 (August 21, 2018) 1

ENMAX No. 36 Substation Transformer Capacity Upgrade ENMAX No. 36 Substation by replacing one existing 138/69-kilovolt (kv) transformer with one 138/69-kV transformer of higher capacity. There is no request for a change to the rate demand transmission service contract capacity at the existing ENMAX No. 36 Substation. 7. ENMAX submitted a facility application with the AUC proposing to upgrade the ENMAX No. 36 Substation by replacing one 138/69-kV, 37.5/50-megavolt-ampere (MVA) transformer with a 138/69-kV, 75/100/112-MVA transformer, and install new associated substation protection and control equipment. 8. ENMAX indicated that upon completion of the proposed project, the ENMAX No. 36 Substation would contain the following major equipment: one 138/69-kV, 75/100/112-MVA transformer one 138/25-kV, 30/40/50-MVA transformer one 138/13.8-kV, 20/27/33.6-MVA transformer one 138/13.8-kV, 18/24/30-MVA transformer four 138-kV circuit breakers one 69-kV circuit breaker six 25-kV circuit breakers 20 13.8-kV circuit breakers other substation equipment as described in the application 9. The proposed project would not require an expansion of the existing ENMAX No. 36 Substation fenceline and all work would be conducted within the substation fenceline. ENMAX indicated that construction activities are not anticipated to have any impact on the surrounding environment. ENMAX stated that a Historical Resources Act clearance is not required for this project. 10. ENMAX conducted a participant involvement program in accordance with the requirements of Rule 007: Applications for Power Plants, Substations, Transmission Lines, Industrial System Designations and Hydro Developments. ENMAX developed the participant involvement program, in co-ordination with the AESO, by preparing and distributing project information packages to two landowners located adjacent to the proposed project. ENMAX also stated that it had individually contacted other interested parties through email. ENMAX submitted that no concerns were raised during consultation for the proposed project. 11. ENMAX stated that a noise impact assessment was completed which confirmed that the proposed project would not increase the noise levels at the ENMAX No. 36 Substation. ENMAX stated that the project complies with Rule 012: Noise Control. 12. The proposed project cost is estimated to be $3,233,144 (within +20 per cent/-10 per cent accuracy) allocated fully to the customer, ENMAX. There would be no system costs associated with the proposed project. ENMAX stated that the proposed in-service date for the project is December 14, 2018. 2 Decision 23798-D01-2018 (August 21, 2018)

ENMAX No. 36 Substation Transformer Capacity Upgrade 4 Findings 13. Pursuant to Section 1.4.1(b) of Rule 007, the Commission finds that a needs identification document was not required for the proposed project because the proposed project was a minor alteration to an existing substation approved by the AESO pursuant to an abbreviated needs approval process established under ISO Rules Section 501.3. 14. The Commission finds that the application to upgrade the ENMAX No. 36 Substation, filed by ENMAX pursuant to sections 14, 15, 18 and 19 of the Hydro and Electric Energy Act, complies with the information requirements prescribed in Rule 007. The application is also consistent with the need identified in the AESO s approval letter pursuant to its abbreviated needs approval process. 15. The Commission is satisfied that the participant involvement program undertaken by ENMAX meets the requirements of Rule 007. 16. The Commission finds that the technical and environmental aspects of the proposed project, as submitted by ENMAX, fulfill the requirements of Rule 007. 17. The Commission accepts ENMAX s statement that the proposed project will not increase the noise levels at ENMAX No. 36 Substation. The Commission accepts ENMAX s statement that predicted noise levels at ENMAX No. 36 Substation will comply with the requirements of Rule 012. 18. The Commission accepts ENMAX s assertion that the proposed project will not result in any environmental effects because the alteration is to occur within the existing substation property and an expansion to the existing fenced area is not required. 19. The Commission is satisfied that there are no outstanding concerns associated with the alteration and operation of the substation and finds the proposed project to be in the public interest pursuant to Section 17 of the Alberta Utilities Commission Act. Decision 23798-D01-2018 (August 21, 2018) 3

ENMAX No. 36 Substation Transformer Capacity Upgrade 5 Decision 20. Pursuant to sections 14, 15 and 19 of the Hydro and Electric Energy Act, the Commission approves the application to alter and operate the substation and grants ENMAX the approval set out in Appendix 1 Substation Permit and Licence 23798-D02-2018 August 21, 2018 (Appendix 1 will be distributed separately). Dated on August 21, 2018. Alberta Utilities Commission (original signed by) Joanne Phillips Commission Member 4 Decision 23798-D01-2018 (August 21, 2018)