May 13, 2010 Alberta Utilities Commission Attention: Don Popowich
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May 13, 2010 Alberta Utilities Commission Attention: Don Popowich
May 13, 2010 Alberta Utilities Commission Attention: Don Popowich Director of Facilities Fifth Avenue Place 4th Floor, 425 - 1 Street SW Calgary, AB T2P 3L8 Dear Mr. Popowich: Re: Application to the Alberta Utilities Commission (AUC) for approval of the ENMAX No. 24 Substation Transformer Capacity Upgrade Needs Identification Document Please find enclosed the AESO application for approval of the Needs Identification Document for the proposed ENMAX No. 24 Substation Transformer Capacity Upgrade pursuant to section 34(1)(c) of the Electric Utilities Act. Please do not hesitate to contact either of the individuals below if you have questions or concerns regarding the foregoing: Jennifer Hocking Regulatory Legal Counsel [email protected] 403-539-2578 Deanna Merrick NID Filings Coordinator [email protected] 403-539-2563 Yours truly, <filed electronically> Jennifer Hocking Regulatory Legal Counsel 2500, 330 - 5th Ave SW Calgary, Alberta T2P 0L4 t (403) 539-2450 | f (403) 539-2949 | www.aeso.ca Alberta Utilities Commission In the Matter of the ENMAX No. 24 Substation Transformer Capacity Upgrade And in the matter of the Electric Utilities Act, S.A. 2003, c. E-5.1, the Alberta Utilities Commission Act, S.A. 2007, c. A-31.2, the Hydro and Electric Energy Act, R.S.A. 2000, c. H-16, the Transmission Regulation, AR 86/2007 and Alberta Utilities Commission Rule 007, all as amended Application of the Alberta Electric System Operator for approval of the Needs Identification Document for the ENMAX No. 24 Substation Transformer Capacity Upgrade Application No. ______________ ENMAX No. 24 Substation Transformer Capacity Upgrade Needs Identification Document PART A - APPLICATION 1 Introduction 1.1 Pursuant to section 34(1)(c) of the Electric Utilities Act (EUA) and in accordance with the further legislative provisions set out in the recitals, the Alberta Electric System Operator (AESO) applies to the Alberta Utilities Commission (Commission) for approval of the ENMAX No. 24 Substation Transformer Capacity Upgrade Needs Identification Document (NID), as more specifically described herein. 1.2 This NID has been prepared in response to the request by ENMAX Power Distribution (the Distribution Facility Owner, or DFO) for an increase in 25kV capacity at the ENMAX No. 24 Substation located in the southeast section of Calgary. Service is requested commencing October 1, 2011. This NID describes the need to respond to the DFO’s request and demonstrates that the manner in which capacity is proposed to be increased is consistent with AESO’s responsibilities to plan the transmission system to provide efficient, reliable and non-discriminatory system access service and arrange for the timely implementation of required transmission system expansions and enhancements, all in the public interest. 1.3 In the process of establishing need and preparing the NID, the AESO has given various directions to the incumbent transmission facility owner, ENMAX Power Transmission (TFO), including, pursuant to subsection 35(1) of the EUA, to prepare a transmission facility proposal (commonly known as a Facilities Application or FA) to meet the need identified. As per Section 14(1) of the Transmission Regulation (TReg), the AESO has relied on work conducted by the TFO to prepare this application.1 1 This NID is directed solely to the question of the need for expansion or enhancement of the capability of the transmission system. Any reference to existing Customers or other parties and/or the facilities they may, or may wish to, own and operate is not intended to associate this NID with any other application for regulatory or other approval that are the responsibility of such Customer or other party. Alberta Electric System Operator 1 April 28, 2010 ENMAX No. 24 Substation Transformer Capacity Upgrade Needs Identification Document 2 Need Identification Overview 2.1 The AESO, pursuant to its responsibilities under section 29 of the EUA, must provide system access service on the transmission system in a manner that gives market participants a reasonable opportunity to exchange electricity. The market participant, the DFO in this case, has determined that the addition of 138-25 kV transformation capacity is required to serve forecasted distribution system load growth as early as 2010, and has requested that the AESO arrange for the appropriate transmission expansion. Consistent with its responsibilities, the AESO directed the TFO to propose the manner in which the DFO’s request for service could be met. 2.2 The TFO proposal to meet the DFO requirements involves the addition of a second transformer at the ENMAX No. 24 Substation, which is a point of interconnection between the higher voltage transmission system and the lower voltage distribution system. 2.3 The proposed transformer addition includes the addition of a new 138-25 kV 50 MVA transformer at the No. 24 Substation, a 138 kV bus tie breaker, and associated switchgear equipped with protection and controls, and related equipment as will be more specifically described in the TFO’s FA and/or determined as detailed engineering progresses and DFO operating requirements are finalized. The AESO also notes that distribution feeders and any other distribution facilities that are to be subsequently connected to the ENMAX No. 24 Substation are the responsibility of the DFO and are not included in this application. 2.4 The AESO notes that the ENMAX No. 24 Substation has been previously constructed to accommodate additional transformers such as is proposed, and that the proposed transformer addition and related development would take place within the existing fence boundaries, thereby minimizing the potential for environmental, visual and noise effects. Alberta Electric System Operator 2 April 28, 2010 ENMAX No. 24 Substation Transformer Capacity Upgrade Needs Identification Document 2.5 The capital cost of the proposed transformer addition and related equipment is estimated by the TFO to be $5.8 Million ($2010, +20/-10%). The AESO has conducted appropriate studies and determined that facilities totaling approximately $5.7 Million are consistent with the AESO’s standard facilities definition and therefore qualify for AESO investment under its customer contribution policy, with the remainder not eligible for AESO investment. 2.6 Consistent with its local load growth forecast, the DFO has committed to increasing its Demand for Transmission Service (DTS) contract for Substation No. 24 by 33 MW, to a total of 51 MW, upon energization of the proposed transformer addition. 2.7 The AESO directed the TFO to conduct a Participant Involvement Program (PIP), on its behalf, in accordance with AUC Rule 007, NID 13. The TFO, with assistance from the AESO, utilized various methods to notify stakeholders of the potential for transmission development at the ENMAX No. 24 Substation. During and after the PIP conducted through November of 2009 the AESO has received no indication of concern from any party regarding the need for the proposed transformer addition. 2.8 The AESO has assessed the integration of the proposed transformer addition into the transmission system and has determined that there will be no additional system work specifically required in order to connect and operate the transformer as proposed. However, it is noted that transmission system constraints presently exist in the area of southeast Calgary and that the AESO is developing plans to alleviate those constraints. The addition of the proposed transformer at No. 24 Substation in the manner indicated will not affect these forthcoming plans. The proposed alternative is consistent with other planned system enhancements in the immediate vicinity and beyond, including the development of critical bulk system reinforcements planned across the province. 2.9 The AESO notes that until system reinforcements to the transmission system in the area southeast of Calgary are completed, a remedial action scheme (RAS) may limit the firm capacity of ENMAX No. 24 until such time as system constraints have been alleviated. The AESO currently anticipates that these constraints will be removed as Alberta Electric System Operator 3 April 28, 2010 ENMAX No. 24 Substation Transformer Capacity Upgrade Needs Identification Document early as 2012/13, however specific timing remains uncertain. The DFO has been made aware of the constraints that may apply to the operation of the proposed transformer addition and the DTS contract entered into will specify the nature of the constraints. 2.10 Giving consideration to section 29 of the TReg, information obtained from consultations, the fact that the proposed facilities are to be developed within the fenceline of the existing substation, estimated costs, and system studies undertaken by the AESO, it is the conclusion of the AESO that the transformer addition proposed by the TFO meets the identified need and the DFO’s requirements in a manner that is reasonable, and is consistent with the AESO’s duties to plan for the transmission system to provide efficient, reliable and non-discriminatory system access service and the timely implementation of required transmission system expansions and enhancements. The proposed transformer addition is therefore the AESO’s preferred option for the meeting the identified need. As such, the AESO believes the approval of the NID is also in the public interest. 3 Request to Combine NID and Facilities Application for Consideration in a Single Process 3.1 The AESO understands that the TFO’s FA noted in paragraph 1.3 above will be filed shortly. Given the relatively simple scope of the proposed development, and as contemplated by section 15.4 of the Hydro and Electric Energy Act and section 6 of Commission Rule 007, the AESO requests, and expects the TFO will also request, that the NID be combined with the FA for consideration by the Commission in a single process. An evident advantage of doing so will be to enable the Commission to consider factors and information in the FA that are relevant to the issue of need. 3.2 The AESO believes that the NID and the FA will be materially consistent and requests that in its consideration of both, the Commission be mindful of the fact that the two documents have been prepared separately and for different purposes. The purpose of the NID is to obtain approval for the identified need and, at an overview level, provide Alberta Electric System Operator 4 April 28, 2010 ENMAX No. 24 Substation Transformer Capacity Upgrade Needs Identification Document PART B – NID BACKGROUND AND SUPPORTING INFORMATION 1. The AESO is responsible for the safe, reliable, and economic operation of the Alberta Interconnected Electric System (AIES) and for the promotion of a fair, efficient and openly competitive market for electricity in Alberta2. As directed by the EUA, the AESO must forecast transmission needs for Alberta and develop plans for the transmission system to provide efficient, reliable and non-discriminatory system access service and the timely implementation of required transmission system expansions and enhancements3. Part 2 of the TReg further defines the AESO’s transmission planning duties and responsibilities. Part 3 of the TReg directs the AESO to comply with, adopt, develop, and maintain the transmission system reliability standards, agreements, criteria and directives necessary to the execution of its duties. 2. As noted in section 2.1 of Part A, the AESO must provide system access service on the transmission system in a manner that gives market participants a reasonable opportunity to exchange electricity. Where, as in this case, the market participant is requesting the expansion or enhancement of the capability of the transmission system, the AESO must prepare and submit for Commission approval, a NID that describes: the need to respond to the DFO’s request and the assessments conducted by the AESO regarding the manner proposed to address that need. 3. Pursuant to subsection 35(1) of the EUA, the AESO directs the TFO in whose service territory the need is located to prepare a FA to meet the need identified. The FA is also submitted to the Commission for approval. As noted in section 3.1 of Part A, such a direction has been given to the TFO in this case. 2 EUA, section 16. 3 EUA, section 33 Alberta Electric System Operator 6 April 28, 2010 ENMAX No. 24 Substation Transformer Capacity Upgrade Needs Identification Document 4. The remainder of this NID provides supporting information concerning the identified need. Appendix A contains an estimate of the capital costs for the proposed transformer addition, prepared by the TFO. The accuracy of the estimated capital costs is +20/-10%, which exceeds the accuracy required by AUC Rule 007, NID 10. Since, this project is required to meet the load growth in southeast Calgary, this project is eligible for AESO investment and a portion of the costs are indicated as costs for the account of the DFO. It is noted that these cost estimates may differ from those which will form part of the FA. 5. Appendix B contains a summary of the Participant Involvement Program (PIP) activities conducted regarding the ENMAX No. 24 transformer addition; a summary of PIP results is also included. Copies of the relevant materials distributed during the PIP are attached for reference. 6. For information, the Interconnection Proposal (IP) prepared by the TFO in December 2008 is included for reference in Appendix C. The IP contains the DFO’s Statement of Need and provides information regarding the need for increased transformation capacity in the southeast corner of Calgary. The IP is the basis for the DFO’s request to the AESO for transmission enhancements and the TFO’s proposed method of addressing the request. It is noted however, that while the IP was prepared some time ago, there have been no significant changes to the transmission system around ENMAX No. 24 Substation that would change the need for this development. In addition, ENMAX Power Corporation has provided a letter to the AESO dated April 14, 2010 confirming that its needs have not changed in terms of load requirements and verifying its choice of preferred alternative. A copy of the letter is provided for reference in Appendix C, along with updated capital cost estimates for the alternatives considered, escalated to $2010. Furthermore, the AESO and DFO have prepared the appropriate contractual arrangements necessary to proceed with the proposed development upon receipt of appropriate approvals. These arrangements indicate a commitment on behalf of the DFO to proceed with the proposed development as described herein. Alberta Electric System Operator 7 April 28, 2010 ENMAX No. 24 Substation Transformer Capacity Upgrade Needs Identification Document Appendices Appendix A – Capital Cost Estimate for the Proposed Transformer Addition Appendix B – Participant Involvement Program (PIP) Summary and Materials Appendix C – TFO Interconnection Proposal and Update Letter Alberta Electric System Operator 8 April 28, 2010 ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Appendix A: Capital Cost Estimate for Proposed Transformer Addition ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Appendix B: Participant Involvement Program (PIP) 1.0 PARTICIPANT INVOLVEMENT PROGRAM During November, 2009, the AESO conducted a Participant Involvement Program in conjunction with the development of its Needs Identification Document (NID) to address the need for transmission development to install an additional 138/25 kV – 50 MVA transformer in the ENMAX No. 24 substation located in southeast Calgary. The incumbent TFO assisted the AESO in consulting on the need for this transmission development by mailing a project specific information package to all occupants, residents and landowners within an 800 metre radius of the planned development, and as well to industry representatives and agencies with interests in the area. This package included the AESO’s need overview. The AESO’s PIP was designed to notify, provide information and consult, as necessary, with the parties noted in the prior paragraph, and included the following municipalities and businesses: ! 764944 Alberta ltd. ! R. Sidj Holdings Ltd. ! R. Z. Holdings Ltd. ! The City of Calgary ! Allen Sons Recycling ! Procoat Paintings ! AM Jade Co. ! Calgary Tunnelling Horizontal Augering Ltd. ! Westcan Recyclers ! Canadian Pacific ! Chief Construction ! Electrolux ! CV Portable Accommodations ! Big 4 Container Services ! RIMK Industries Inc. ! Sherwood Steel ! JW Fleet Services -1- The AESO used a variety of methods to notify stakeholders about the need for this transmission development in southeast Calgary. Information and an overview concerning the need for the proposed development were: (a) Posted on the AESO’s website (Attachment 1); (b) Included in a mail out by the incumbent TFO in November, 2009, directly addressed to all stakeholders within 800 metres of the proposed development (Attachment 2); (c) Most recently published in the Calgary Herald on April 29, 2010. (Attachment 3). In distributing this information to stakeholders, the TFO was prepared to direct enquiries about the need for this project to the AESO; likewise, the AESO planned to direct facilities-related enquires to the TFO. 1.1 Description of Participant Involvement Program AESO Need Overview The AESO developed an overview document that describes the need for transmission development in southeast Calgary to increase the capacity at No 24 Substation, located at 9905 – 68 Street SE, in order to support the growing electrical needs of the community. This Need Overview also provided a description of the AESO and its responsibilities and encouraged stakeholders to contact the AESO by phone, email or mail if they had any questions or concerns about the need for the planned transmission reinforcement. A copy of this document was posted to the AESO website at http://www.aeso.ca/downloads/need_overview_se_calgary.pdf. Stakeholder Communication Tools In addition to the PIP activities described above, the AESO also provided stakeholders with a dedicated, toll-free telephone line (1-888-866-2959) and a dedicated email address ([email protected]). the AESO’s contact information, along with the AESO’s mailing address, (2500, 330 5th Ave, SW, Calgary), website address (www.aeso.ca) and privacy statement describing how the AESO honours Alberta’s Personal Information Protection Act, was included on all AESO communication related to this application. -2- 1.2 Issues and Concerns Raised and the AESO’s Responses The AESO has received no indication of concern from any party about the need for transmission development to increase the capacity at No 24 Substation in southeast Calgary. -3- Need for transmission system reinforcement in East Calgary For more information please contact the AESO at 1-888-866-2959, www.aeso.ca or [email protected] Why is transmission system reinforcement needed in East Calgary? Demand for electricity in East Calgary continues to grow and transmission system reinforcements to help meet this demand are required. The Alberta Electric System Operator (AESO) has verified the need for transmission system reinforcement in East Calgary and has confirmed that electricity demand in this area can be reliably met by installing an additional 138/25 kV – 50 MVA transformer in the ENMAX No. 24 substation. Who is the AESO? Alberta’s transmission system, sometimes referred to as the Alberta Interconnected Electric System (AIES) or “grid”, is planned and operated by the Alberta Electric System Operator (AESO). The transmission system is comprised of the high-voltage lines, towers and equipment (generally 69 kV and above) that transmit electricity from generators to lower voltage systems that distribute it to cities, towns, rural areas and large industrial customers. Our job is to maintain safe, reliable and economic operation of the provincial transmission grid. Our planning responsibility includes identifying needed transmission reinforcement and recommending preferred options to meet these needs. We are regulated by the Alberta Utilities Commission (AUC) and must apply for approval of the transmission system needs we identify. Further, the AESO is also mandated to facilitate the interconnection of qualified electricity generators and new load customers to the provincial transmission grid. The AESO intends to apply to the AUC for approval of the need identified for transmission reinforcement in East Calgary area in March 2010. How is ENMAX Power Corporation involved? ENMAX Power Corporation. is the Transmission Facility Owner (TFO) in the Calgary Area. While the AESO is responsible for determining the need for transmission system reinforcement, ENMAX, when directed by the AESO, is responsible for filing an application with the AUC for approval of the transmission facilities that will satisfy the transmission system reinforcement need identified by the AESO. The AESO appreciates the views of stakeholders. Your comments and suggestions on the plan for transmission system reinforcement are encouraged. If you have any questions or suggestions regarding the need for transmission system reinforcement in East Calgary or the AESO’s application regarding this need, please contact: Matt Gray AESO Stakeholder Relations 1-888-866-2959 [email protected] 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 the local Transmission Facility Owner. If you have any questions about how the AESO will use and disclose your personal information collected with regard to this project, please contact us at 888-866-2959 or at [email protected]. Stakeholder Newsletter | October, 2009 ENMAX No. 24 Substation Proposed Capacity Upgrade Project To support the growing electrical needs of the community, ENMAX Power Corporation (ENMAX Power) and the Alberta Electric System Operator (AESO) are proposing to increase the capacity at ENMAX No. 24 Substation, located at 9905 – 68 Street SE. We are committed to working with stakeholders and community members to share information, gather input, and address questions you may have. The Regulatory Process and the Industry Partners ENMAX Power and the AESO have been working together to determine the necessary system upgrades required to continue providing reliable power supply to this area of the city. Before upgrades to the electrical system can take place, the AESO must submit a Needs Identification Document outlining their recommendation for system upgrades to the Alberta Utilities Commission (AUC) for review and approval. If they receive approval, the AESO directs the Transmission Facility Owner (in this case ENMAX Power) to develop a Facilities Application which outlines what changes or additions are occurring with the transmission infrastructure. This application is also provided to the AUC for review and approval. Public consultation is a key component in the development of both the Needs and Facility Applications. Project Overview Additional Information The No. 24 Substation Project includes the installation of an additional 138-25 kiloVolt (kV) 50 MVA transformer and associated switchgear, and one 138 kV bus tie breaker with associated protection and controls at the substation site. All of this work will take place inside the existing substation fence. The AESO and ENMAX Power invite your comments about this project. If you have any comments or concerns, or require additional information, please contact us at (403) 514-1341, [email protected], or write to: Transmission Planning and Design ENMAX Power Corporation 141 – 50 Avenue SE Calgary, AB T2G 4S7 Correspondence will be received up to 4:00 pm on February 12, 2010. For more information about the need for this project, please visit www.aeso.ca or contact the AESO at 1-888-866-2959 or [email protected]. Commitment to Community Project Background Glenmore Trail SE 84 St SE 68 St SE 86 Ave SE 90 Ave SE 52 St SE 94 Ave SE Shepard Rd ENMAX No. 24 Substation As part of this public consultation process, the AESO and ENMAX Power will be holding an Open House regarding the proposed project. Representatives will be on hand to provide more information about the project and why it’s needed, and to hear your concerns and respond to any questions you may have. When: Thursday November 26th, 2009 Where: Glenmore Inn – Mcleod Room 2720 Glenmore Trail SE Time: 3 p.m. to 7 p.m. Proposed Additions This area of Calgary has been experiencing rapid growth, particularly in the commercial and industrial segment, and more development is planned. This growth results in increasing demand on the electrical system. The addition of this equipment will increase the overall capacity of the substation and enable ENMAX Power to continue to provide reliable electrical services to meet the needs of residents and other electricity customers in this area of the city. Project Open House Proposed Project Schedule This project requires regulatory approval by the AUC. The AESO and ENMAX Power expect to file their respective applications with the AUC by March 2010, following completion of the initial stakeholder consultation process. If the proposed project is approved, ENMAX Power anticipates construction to take place beginning in October 2010 with project completion by April 2011. Stakeholder Newsletter | October, 2009 ENMAX Power is committed to being an excellent corporate neighbour in the community and providing timely and meaningful consultation with stakeholders about this proposed project. ENMAX Power will work in a collaborative and respectful manner to share information about the proposed No. 24 Substation project and respond to stakeholder questions and concerns. A comprehensive public consultation program has been developed to provide opportunities for area residents, occupants and interested parties to engage ENMAX Power’s project team from planning through construction and operations. About the AESO The Alberta Interconnected Electric System (AIES), our province’s electricity transmission system or “grid”, is planned and operated by the AESO. This network of higher-voltage transmission lines, towers and equipment carries or transmits electricity from generators to large industrial customers as well as lower-voltage systems that distribute it to cities, towns and rural areas. Our job is to maintain safe, reliable and economic operations on the provincial transmission grid. About ENMAX Power ENMAX Power, a subsidiary of ENMAX Corporation, and its predecessors have provided Albertans with safe and reliable electricity for more than 100 years. One of the most reliable urban utilities in Canada, ENMAX Power owns, operates and maintains the distribution and much of the transmission network in and around Calgary. Most of ENMAX Power’s activities are regulated by the AUC. The non-regulated subsidiaries managed by ENMAX Power provide engineering, procurement, construction and maintenance for the electrical servicing of residential and commercial developments and light rail transit systems as well as fiber optic networks for high speed data and internet communications. For more information, visit our website at www.enmaxpower.com. 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 AUC (and as a result, may become public), and may also be disclosed to the eligible Transmission Facility Owner. If you have any questions about how the AESO will use and disclose your personal information collected with regard to this project, please contact us at 1. 888.866.2959 or at [email protected]. When you choose to share personal information with any of the ENMAX group of companies, we consider this information confidential. ENMAX and its affiliates or agents will not sell or trade your information to any third parties. ENMAX will only use this information for the purpose of planning, building, or maintaining the transmission project for which your information was collected, and will only share your information with parties who reasonably require the information for that purpose. Such parties may include other industry participants, such as the AUC, AESO, other electric facility owners, or other industry participants involved in the development of the project. If you have any concerns about how your information will be used, or any questions regarding our Personal Information Commitment, please contact ENMAX, or visit us at http://www.enmax.com/Corporation/Web+Help/Legal/Privacy+Commitment.htm. Stakeholder Newsletter | October, 2009 Stakeholder Newsletter | October, 2009 ENMAX No. 24 Substation Proposed Capacity Upgrade Project To support the growing electrical needs of the community, ENMAX Power Corporation (ENMAX Power) and the Alberta Electric System Operator (AESO) are proposing to increase the capacity at ENMAX No. 24 Substation, located at 9905 – 68 Street SE. We are committed to working with stakeholders and community members to share information, gather input, and address questions you may have. For more information, please review the enclosed detail, or join us at our Open House on November 26 at the Glenmore Inn – Mcleod Room. Stakeholder Newsletter | October, 2009 Notification of Regulatory Filing for Transmission System Reinforcement in the East Calgary Area The Alberta Electric System Operator (AESO) has identified a need to reinforce a section of the transmission system in the East Calgary area. The AESO advises you of its intention to ask the Alberta Utilities Commission (Commission) to approve this need, in the form of a Needs Identification Document (NID) that it will file with the Commission. The map above shows the proposed area for transmission development in the East Calgary area. The AESO has identified the need to install an additional 138/25 kV – 50 MVA transformer in the ENMAX No. 24 substation. The AESO and ENMAX Power Corporation (ENMAX) presented this need to residents near the proposed site and other stakeholders during November and December 2009. The AESO has considered feedback gathered from stakeholders, and technical and cost considerations, and will apply to the Commission for approval of the need for this project. The AESO intends to file its application on or after May 13, 2010. Please visit our web site, www.aeso.ca for more information, or contact the AESO at 1-888-8662959 or [email protected]. A copy of this application is available for download at http://www.aeso.ca/transmission/20535.html In a separate application, ENMAX will apply to the Commission for approval to construct and operate the specific facilities to meet the identified need. 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 the eligible Transmission Facility Owner(s). If you have any questions about how the AESO will use and disclose your personal information collected with regard to this project, please contact us at 1-888-866-2959 or at [email protected]. Artist: 2N P r o d u c t i o n Docket: 103086 Date: Apr 22, 2010 Size: 6.25” Proof: 1 1A of 1 Publication(s): CH CS O n l y ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Appendix C: TFO Interconnection Proposal and Update Letter !"#$%$&'()&*)+,-.-/ !"#$%$&'()&*)+,-.-/) !"#$%$&'()&*)+,-.-/) Interconnection Proposal For Transformer Capacity Upgrades At ENMAX No. 24 Substation Signature Name Prepared: Simon Chan, TFO E.I.T. Reviewed: Shiv Kumar, P.Eng. Projects Todd Driediger, Reviewed: System Operations P.Enq. Michael Andrusiw, Reviewed: P.Eng. DFO Mark Apuzzo, Reviewed: P. Eng. Protection Approved: Brent Thesen, P.Eng. TFO APEGGA Permit to Practice B6756 December 08, 2008 Version: 1 Date Interconnection Proposal for Transformation Capacity Upgrade at ENMAX No. 24 Substation Table of Contents 1.0 PROJECT DESCRIPTION ............................................................................................. 3 2.0 EXECUTIVE SUMMARY................................................................................................ 3 3.0 NEED FOR DEVELOPMENT......................................................................................... 4 4.0 EXISTING SYSTEM....................................................................................................... 4 4.1 4.2 4.3 4.4 5.0 PROPOSED DEVELOPMENT ....................................................................................... 7 5.1 6.0 GEOGRAPHIC AREA....................................................................................... 4 STUDY CRTIERIA ............................................................................................ 5 AREA LOAD FORECAST................................................................................. 5 DETAILED LOAD FORECAST FOR DISTRIBUTION (25 KV) SYSTEM......... 6 TRANSMISSION DEVELOPMENT................................................................... 7 TRANSMISSION ALTERNATIVES ................................................................................ 7 6.1 6.2 ALTERNATIVES CONSIDERED ...................................................................... 7 COMPARISON OF ALTERNATIVES................................................................ 9 7.0 CURRENT PROJECTS................................................................................................ 10 8.0 FUTURE CONSIDERATIONS...................................................................................... 10 9.0 TRANSMISSION CONSTRUCTION SCHEDULE........................................................ 11 APPENDIX A - STATEMENT OF NEED ............................................................................... 12 APPENDIX B – EXISTING TRANSMISSION CONFIGURATION ......................................... 26 APPENDIX C – EXISTING SUBSTATION CONFIGURATION ............................................. 28 APPENDIX D – PROPOSED TRANSMISSION ALTERNATIVES......................................... 31 1 Interconnection Proposal for Transformation Capacity Upgrade at ENMAX No. 24 Substation List of Tables Table 4.3-1 Peak Load Forecast for ENMAX No. 24, No. 26 and No. 37 Substations (25 kV Distribution System Only) ............................................................................................. 5 Table 4.4-1 Peak Load Forecast for ENMAX No. 24, No. 26 and No. 37 Substations (25 KV Distribution System Only)............................................................................................. 6 Table 6.2-1 Capital Cost to Implement Alternatives ............................................................ 9 Table 6.2-1 Capital Cost to Implement Alternatives, continued ........................................ 10 List of Figures Figure B-1 Calgary Area Transmission System.................................................................. 27 Figure C-1 No. 24 Substation Single Line Diagram ............................................................ 29 Figure C-2 No. 37 Substation Single Line Diagram ............................................................ 30 Figure D-1 Transmission Alternative A (Preferred) – Install Transformer at No. 24 Substation with Bus Tie Breaker...................................................................................... 32 Figure D-2 Transmission Alternative B – Install Transformer at No. 24 Substation without Bus Tie Breaker ............................................................................................................... 33 Figure D-3 Transmission Alternative C – Install Two Transformers at No. 37 Substation (1 of 2)……. ......................................................................................................................... 34 Figure D-4 Transmission Alternative C – Install Two Transformers at No. 37 Substation (2 of 2)……. ......................................................................................................................... 35 2 Interconnection Proposal for Transformation Capacity Upgrade at ENMAX No. 24 Substation 1.0 PROJECT DESCRIPTION ENMAX Power Distribution (DFO) has requested increased system capacity originating at ENMAX Power Transmission (TFO) ENMAX No. 24 Substation. Currently, the load east of ENMAX No. 24 Substation in the ENMAX service area is not supplied within acceptable ENMAX Standards of Service. Refer to the Statement of Need provided by ENMAX Power Distribution (DFO) in Appendix A. ENMAX Power Transmission hereby proposes the installation of one 30/40/50 MVA 138 kV25 kV transformer and the associated switchgear at ENMAX No. 24 Substation to meet the DFO need. 2.0 EXECUTIVE SUMMARY Due to the increased commercial, industrial and large customer load currently supplied from ENMAX No. 24 Substation, this substation is projected to have insufficient transformation capacity to supply the forecasted load by winter 2010. Additionally, there will be 19 MVA load at risk with the loss of 24.1TR by the summer of 2009. To address the load growth in this area, the DFO has requested a capacity upgrade at ENMAX No. 24 Substation. Several alternatives were examined with consideration given to current distribution load, future load growth and associated costs of each alternative. These alternatives involved transformation increases at both ENMAX No. 24 and ENMAX No. 37 Substation. The transformer upgrade at ENMAX No. 24 Substation as identified in Alternative B is the least cost alternative and has adequate capacity to supply the forecasted load in the area to satisfy AESO’s requirements for the Standard Facilities. However, in order for ENMAX to meet their Urban Reliability Guideline – Standards of Service while accommodating future load growth, ENMAX proposes the installation of one new 30/40/50 MVA 138 kV-25 kV transformer with 138 kV bus tie breaker at ENMAX No. 24 Substation as identified in Alternative A. The proposed development (Alternative A) at ENMAX No. 24 Substation will require: ! ! ! ! ! Installation of one 50 MVA 138 kV-25 kV transformer with associated protection and controls; Addition of six 25 kV breakers to the existing 25 kV switchgear; Installation of a 138 kV bus tie breaker with associated protection and controls; Addition of a 138 kV PT; and Addition of transformer secondary cables to the new 25 kV switchgear. 3 Interconnection Proposal for Transformation Capacity Upgrade at ENMAX No. 24 Substation Based on current material procurement and required public consultation, the expected in service date for this project is April 22, 2011. The total proposed transmission development has an estimated cost of $5,660,000 (2008$, +/- 30%). 3.0 NEED FOR DEVELOPMENT The driver for the capacity addition at ENMAX No. 24 Substation is load growth in the region of ENMAX No. 24 and ENMAX No. 37 Substation. No. 24 Substation load is predicted to exceed the existing transformer capacity by winter 2010. Increasing the transformer capacity at No. 24 Substation will address the capacity shortfall and will allow the current and forecasted load within this area to be served during N-1 contingencies. Reference Appendix A for the complete Statement of Need provided by ENMAX Power Distribution (DFO). 4.0 EXISTING SYSTEM 4.1 GEOGRAPHIC AREA ENMAX No. 24 Substation is located on 9905 – 68 Street SE. ENMAX No. 24 Substation is served by three 138 kV circuits: 138-24.81 Line, 138-24.82 Line and 138-24.83 Line. 138-24.81 Line is connected to ENMAX No. 31 Substation. The transmission line, 138-24.82, is connected to ENMAX No. 26 Substation. The transmission line, 138-24.83, is connected to AltaLink Janet (74S) Substation. A Calgary transmission system map is shown in Figure B-1 of Appendix B. No. 24 Substation contains one 30/40/50 MVA, 138 kV-25 kV transformer that supplies one set of 25 kV indoor switchgear. A substation single line drawing for No. 24 Substation is shown in Figure C-1 of Appendix C. 4 Interconnection Proposal for Transformation Capacity Upgrade at ENMAX No. 24 Substation STUDY CRTIERIA The following study criteria and guidelines, published by the AESO, have been used to develop the interconnection proposal: Distribution Point-of-Delivery Interconnection Process Guideline: ! Upgrades to Existing Substation (Revision 0: March 22, 2005). The basis of the transformer upgrades is a Loading Issue (section 3.1.2). ! Drivers of Need (Revision 0: March 22, 2005). The drivers of need for this proposal are Load Growth (section 2.1) and Reliability (section 2.2). Technical and operational considerations were studied to determine the proposed solution (section 2.3.4). ! Economic Evaluation (Revision 0: March 22, 2005). A discount rate of 6.28% is used in the evaluation of alternatives. ! Standards of Service (Revision 0: March 22, 2005). The ENMAX Standards of Service are applied to the analysis of this proposal (refer to Table 3.3-1 in AESO Standards of Service). 4.2 AREA LOAD FORECAST Table 4.3-1 shows the summer and winter diversified peak load forecasts provided by ENMAX Distribution for No. 24 Substation and adjacent substations. This forecast is based on the most recent information from ENMAX Power Distribution and has been updated from the forecasted values in the DFO Need Statement. Table 4.3-1 Peak Load Forecast for ENMAX No. 24, No. 26 and No. 37 Substations (25 kV Distribution System Only) Sub # 24 26 37 Area Total Actual Load - MVA Forecasted Load - MVA S/W Peak 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 S W S W S W S W 13 15 0 3 * * 13 18 15 19 3 4 * * 18 23 18 20 5 8 2 3 23 28 22 28 8 8 3 4 34 40 31 32 9 16 4 5 45 53 35 31 14 31 5 7 54 69 39 41 33 36 7 9 79 86 48 51 54 58 8 10 110 119 56 58 58 54 9 12 123 124 63 67 52 57 11 16 126 140 72 74 56 60 14 17 142 151 76 79 64 67 16 18 156 164 84 86 68 72 18 21 170 179 89 91 74 78 20 23 183 192 93 96 80 84 22 25 195 204 5 Interconnection Proposal for Transformation Capacity Upgrade at ENMAX No. 24 Substation 4.4 DETAILED LOAD FORECAST FOR DISTRIBUTION (25 KV) SYSTEM Table 4.4-1 shows the summer and winter peak load forecasts for No. 24, No. 26 and No. 37 Substations. It also shows the Load at Risk (LAR) with the loss of transformer in No. 24 Substation. This forecast is based on the most recent information from ENMAX Power Distribution and has been updated from the forecasted values in the DFO Need Statement. Table 4.4-1 Peak Load Forecast for ENMAX No. 24, No. 26 and No. 37 Substations (25 kV Distribution System Only) Sub # 24 26 Transformer 24.1TR (50MVA) 26.1TR (50MVA) 26.2TR (50MVA) 37 37.4TR (13.3MVA) LAR with loss of 24.1 TR Actual Load - MVA Forecasted Load - MVA S/W Peak 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 S W S W S W S W S W 13 15 * 3 * * * * ----- 15 19 3 4 * * * * -1 -7 18 20 5 8 * * 2 3 ---1 22 28 8 8 * * 3 4 -4 -10 31 32 10 16 * * 4 5 -16 -23 35 31 15 31 * * 5 7 -24 -9 39 41 33 36 * * 7 9 -19 -26 48 51 27 29 27 29 8 10 -15 -23 56 58 25 27 25 27 9 12 -28 -11 63 67 26 28 26 28 11 16 -13 -26 72 74 28 30 28 30 14 17 -29 -38 76 79 32 34 32 34 16 18 -43 -51 84 86 34 36 34 36 18 21 -57 -66 89 91 37 39 37 39 20 23 -70 -79 93 96 40 42 40 42 22 25 -82 -91 6 Interconnection Proposal for Transformation Capacity Upgrade at ENMAX No. 24 Substation 5.0 PROPOSED DEVELOPMENT 5.1 TRANSMISSION DEVELOPMENT ENMAX TFO proposes the following development to address the DFO need for increased transformation capacity at No. 24 Substation. Comparison of the transmission alternatives can be found in Section 6.2. The preferred alternative is labeled as “Transmission Alternative A.” The proposed system additions are: ! ! ! ! ! Installation of one 50 MVA 138 kV-25 kV transformer with associated protection and controls; Addition of six 25 kV breakers to the existing 25 kV switchgear; Installation of a 138 kV bus tie breaker with associated protection and controls; Addition of a 138 kV PT; and Addition of transformer secondary cables to the new 25 kV switchgear. 6.0 TRANSMISSION ALTERNATIVES 6.1 ALTERNATIVES CONSIDERED In order to meet the DFO request for increased capacity at ENMAX No. 24 Substation, three alternatives were considered. The alternatives considered include: a 30/40/50 MVA, 138 kV25 kV transformer addition at ENMAX No. 24 Substation with a bus tie breaker, a 30/40/50 MVA, 138 kV-25 kV transformer addition at No. 24 Substation without a bus tie breaker and addition of two 30/40/50 MVA, 138 kV-25 kV transformers at No. 37 Substation. The preferred TFO solution, Transmission Alternative A, is the best overall economical and technical solution to meet ENMAX Standards of Service. Transmission Alternative B recommends a new 30/40/50 MVA, 138 kV-25 kV transformer at ENMAX No. 24 Substation. As the majority of the upcoming load growth is situated close to No. 24 Substation, it is geographically advantageous to have the transformer addition at this substation. This alternative meets the AESO definition of a Standard Facility for the purposes of applying AESO’s customer contribution policy. Additionally, the installation of a second transformer at No. 24 Substation will provide better operational flexibility for transformer maintenance. 7 Interconnection Proposal for Transformation Capacity Upgrade at ENMAX No. 24 Substation Transmission Alternative C proposes the increase of transformation capacity by installing two new 30/40/50 MVA, 138 kV-25 kV transformers at ENMAX No. 37 Substation and removing the existing 13 kV-25 kV autotransformer (37.4TR). This would free up some 13 kV capacity at No. 37 Substation. However, this alterative would not provide the required operational flexibility at ENMAX No. 24 Substation for transformer maintenance and restoration as it will remain a single transformer substation. Furthermore, it is the most costly alternative as it requires two transformer additions, new 25 kV breakers, and 138 kV and 25 kV switchgear additions. Transmission Alternative A requires the addition of a new 30/40/50MVA, 138 kV-25 kV transformer at No. 24 Substation. It is the same as Transmission Alternative B but with an additional 138 kV bus tie breaker. Transmission Alternative A provides the best overall economical and technical solution because the increase in transformation capacity will be located near the majority of new load growth. This alternative meets the DFO need for increased transformation capacity. Also, ENMAX No. 24 Substation was originally designed to be a two transformer substation. Adding a second transformer at No. 24 Substation would require less construction costs than Alternative C while still providing operational flexibility for transformer maintenance. Although the cost of this alternative is greater than that of Alternative B, it is still the preferred alternative due to the additional reliability and operational flexibility provided by a bus tie breaker. Table 6.2-1 shows the technical and economic evaluation of the transmission alternatives that were considered. Figure D-1, D-2, and D-3 in Appendix D show single line diagrams of the Transmission Alternatives A, B, and C. 8 Interconnection Proposal for Transformation Capacity Upgrade at ENMAX No. 24 Substation 6.2 COMPARISON OF ALTERNATIVES Table 6.2-1 Capital Cost to Implement Alternatives Alternative A. Transformer Addition at ENMAX No. 24 Substation (Preferred Solution) ! Install a new 50 MVA 138 kV-25 kV transformer with associated protection and controls. ! Install six new 25 kV breakers to existing 25 kV switchgear. ! Addition of a 138 kV bus tie breaker. ! Addition of a 138 kV PT. ! Addition of transformer secondary cables to the 25 kV switchgear. B. Transformer Addition at ENMAX No. 24 Substation ! Install a new 50 MVA 138 kV-25 kV transformer with associated protection and controls. ! Install six new 25 kV breakers to existing 25 kV switchgear. ! Addition of transformer secondary cables to the 25 kV switchgear. Approx. Cost x1000 Total Capital Cost – (Transmission Development) – 2008 = $5,660 Total Capital Cost – (Transmission Development) – 2008 = $5,327 Advantages ! Meets DFO need for increased transformation capacity. ! Majority of developing load growth is situated close to No. 24 Substation. ! 2nd Transformer at No. 24 Substation provides more flexibility for transformer maintenance. ! Bus tie breaker provides increased reliability. ! Meets DFO need for increased transformation capacity. ! Majority of developing load growth is situated close to No.24 Substation. ! 2nd Transformer at No. 24 Substation provides more flexibility for transformer maintenance. ! Lowest cost. Disadvantages ! 25 kV and 13 kV capacity limitations at No. 37 Substation until 2016. ! Higher cost than Alternative B. ! 25 kV and 13 kV capacity limitations at No. 37 Substation until 2016. ! Less reliability with the absence of the 138 kV bus tie breaker. Table Continued on Next Page 9 Interconnection Proposal for Transformation Capacity Upgrade at ENMAX No. 24 Substation Table 6.2-1 Capital Cost to Implement Alternatives, continued Alternative C. Two Transformer Additions at ENMAX No. 37 Substation ! ! 7.0 Remove 13 kV-25 kV transformer (37.4TR) Approx. Cost x1000 Total Capital Cost (Transmission Development) – 2008 = $9,975 Install two 50 MVA 138 kV-25 kV transformers with associated protection and controls. ! Install fourteen new 25 kV breakers with new 25 kV switchgear. ! Addition of transformer secondary cables to 25 kV switchgear. Advantages ! Meets DFO need for increased transformation capacity. ! Provides additional 25 kV capacity at No. 37 Substation. ! Disadvantages ! Less flexibility at No. 24 Substation for supporting the projected load growth. ! Most expensive alternative. Increases 13.3 MVA of 13 kV capacity. CURRENT PROJECTS Due to the increase in commercial and industrial development in the south east section of the city, capacity additions will be needed to supply this growing load. Current projects in this area assume the implementation of the work outlined in this IP: ! 8.0 2010 – A capacity increase at ENMAX No. 26 Substation. No. 26 Substation is expected to have two 50 MVA 138 kV-25 kV transformers installed for a total substation capacity of 100 MVA. FUTURE CONSIDERATIONS Future additions in this area assume the implementation of the work outlined in this IP: ! 2016 – A capacity increase at ENMAX No. 37 Substation. No. 37 Substation is expected to have one new 50 MVA 138 kV-25 kV transformer installed. 10 9.0 TRANSMISSION CONSTRUCTION SCHEDULE Figure 7.1 – Project Timeline 11 APPENDIX A - Statement of Need 12 Interconnection Proposal for Transformation Capacity Upgrade at ENMAX No. 24 Substation APPENDIX B – Existing Transmission Configuration 26 Figure B-1 Calgary Area Transmission System 27 APPENDIX C – Existing Substation Configuration 28 Figure C-1 No. 24 Substation Single Line Diagram 29 Interconnection Proposal for Transformation Capacity Upgrade at ENMAX No. 24 Substation Figure C-2 No. 37 Substation Single Line Diagram 30 APPENDIX D – Proposed Transmission Alternatives 31 Figure D-1 Transmission Alternative A (Preferred) – Install Transformer at No. 24 Substation with Bus Tie Breaker 32 Figure D-2 Transmission Alternative B – Install Transformer at No. 24 Substation without Bus Tie Breaker 33 Figure D-3 Transmission Alternative C – Install Two Transformers at No. 37 Substation (1 of 2) 34 Figure D-4 Transmission Alternative C – Install Two Transformers at No. 37 Substation (2 of 2) 35