Stakeholder Information Update Edmonton-Calgary 500 kV Transmission Development

1
Stakeholder Information UpdateEdmonton-Calgary
500 kV Transmission Development

• September 29, 2005
• Introduction
• Neil Millar, vice-president, Transmission - AESO

2
Todays Meeting - Purpose

• Provide industry stakeholders with initial review
  of project status and activities
• Discuss proposed update process

3
Agenda (9 AM to 11 AM)

• Introduction and context (Neil Millar)
• Review of load and generation forecast
  information (Trevor Cline)
• Overview of overall project status(Andy
  Kneubuhler and Stephen Kane)
• Progress towards facility application(Mark
  Johns)
• Review proposal for ongoing information updates
  and stakeholder feedback (Fred Ritter)
• Wrap-up

4
AESO Core Business Functions

• Operate Canadas first competitive wholesale
  electricity market
• Direct the safe and reliable, real-time operation
  of Albertas interconnected electric grid
• Plan the transmission system and make
  arrangements for upgrades and additions
• Provide open and non-discriminatory access to
  Albertas transmission system
• Coordinate and conduct provincial settlement
  about 5 billion in annual energy transactions

5
Transmission Facility Owner Business Functions
(AltaLink and EPCOR Transmission)

• Own, operate and maintain existing assets
• Construct new transmission reinforcements based
  on direction from the AESO (after EUB approval of
  need application)
• Detailed design and engineering
• Securing specific rights-of-way
• Develop Facility Applications and obtain Permit
  and License from EUB

6

• Project Need
• Generation in North
• Load growth Red Deer
• southern Alberta
• Over 20 years since
• corridor was reinforced

• Gas

• Gas

Gas
Hydro
Wind
7
EdmontonCalgary Reinforcement

• Key Elements
• S-KEG Lines Conversion to 500 kV
  (Keephills-Genesee-Ellerslie)
• New 500 kV line (Genesee to Langdon)
• Benefits
• Necessary to reliably serve Alberta (Red Deer
  south)
• Remove barriers to new generation
• Significant line loss savings

8
Progress To Date

• AESO filed Need Identification document in May
  2004 with EUB
• EUB hearing in December 2004, closing in January
  2005
• EUB Approval of Need received in April 2005

9
Stakeholder Information UpdateEdmonton-Calgary
500 kV Transmission Development

• September 29, 2005
• Review of Load and Generation Forecast
• Trevor Cline, manager, Central System Planning -
  AESO

10
Forecast UpdateWhats changed since the Need
application

• Load forecast increase - Alberta Internal Load
  expected to exceed 13,700 MW by 2015 an increase
  of 1,800 MW due to rapid oil sands growth
• TransAlta is asking the EUB to amend its 900 MW
  Centennial permit to allow for the construction
  of a smaller 450 MW plant
• All Clover Bar units are to be retired before
  2006
• Wind generation requests have increased above the
  forecast
• Proposed Bow City two-unit 1000 MW coal plant for
  southern Alberta continues development with
  public disclosure in January and open houses in
  March 2005
• Calgary area capacitor banks approved and will be
  in-service by February 2006

11
Forecast UpdateAdjustments made to the forecasts
for this update

• Total wind generation to be installed by 2010
  increased from 800 MW to 1500 MW
• On-site generation and load increased
• All Clover Bar units retired before 2006
• New 500 MW coal plant added in southern Alberta
  in 2010
• Completion date for third coal unit at Keephills
  changed from 2009 to 2011

12
Forecast UpdateSupply-Demand Gap
13
Forecast UpdateNeed Timing
Need is
now. The AESO will have interim measures in place
to ensure reliability requirements are met
between the need date and the in-service date.
Summer capability exceeded in 2007
14
Forecast UpdateCongestion on the Edmonton to
Calgary path
Interim measures conversion of S-KEG will
reduce congestion to less than 5
If no new large units go into service in the
north, path congestion forecast to be 10 during
the summer hours of 2009
15
Forecast UpdateNo impact on project schedule

• Capability increase in Edmonton to Calgary
  transmission capability is needed before the
  summer of 2007 therefore early conversion of the
  S-KEG is still required
• Increase in Edmonton to Calgary transmission
  capability is still required as soon as possible
  to address both reliability concerns and
  congestion
• The AESO is in the process of implementing
  interim measures that will bridge the gap between
  the need today and when the new facilities will
  be in place

16
Questions?
17
Stakeholder Information UpdateEdmonton-Calgary
500 kV Transmission Development

• September 29, 2005
• Overall Project Status
• Andy Kneubuhler, manager, 500 kV Projects - AESO
• Stephen Kane, senior project manager - AltaLink

18
500 kV Project Components

• South-KEG 500 kV Conversion
• One 500/240 kV transformer bank at Keephills by
  AltaLink
• Two 500/240 kV transformer banks at Ellerslie by
  AltaLink
• Conversion of 1203L and 1209L by AltaLink
• Conversion of Genesee substation by EPCOR
  Transmission
• Conversion of three Genesee unit transformers by
  generation owners

19
500 kV Project Components

• Genesee to Langdon
• 500 kV Line
• Line termination at Genesee by EPCOR Transmission
• Line termination at Langdon by AltaLink
• 1205L addition by AltaLink

20
AESO Progress to September

• Engineering studies to define equipment function
  and high-level specifications
• Transformer capacity and overload requirements
• Phase shifter capacity and angle range
• Fault level studies
• Coordinate activities between TFOs (AltaLink
  EPCOR Transmission)
• Hold monthly project coordination meetings
• Develop a functional specification for each
  project
• Develop project monitoring and reporting processes

21
Project Cost Evaluation

• Budget baseline from the Need Application is in
  2004 dollars
• The TFO estimates accompanying the Proposal to
  Provide Service (PPS) and subsequent updates will
  be in end-of-project dollars
• S-KEG completion November 2007
• Genesee to Langdon Line completion September 2009
• Developing a financial tracking method to allow
  comparison of costs to the budget on an ongoing
  basis

22
Project Scope Refinements and Cost Estimates

• Detailed engineering progression will provide
  updated information and improved estimate
  accuracy
• AESO functional specification and TFO Proposal to
  Provide Service defines the project scope
• Assessing the impact of trends in transmission
  materials, major equipment and construction costs
  on the project
• Updated cost information will be shared with
  stakeholders before year end

23
EUB Need Approval Amendment

• Detailed engineering has led to the need to file
  an amendment application with the EUB
• The AESOs application will contain the details
  of the required change and associated cost and
  the benefits
• The application will be filed in October and
  available to stakeholders at that time

24
Amendment Application Overview

• Change Keephills and Ellerslie transformers from
  750 MVA three-phase units to 1200 MVA
  single-phase units
• Transformer size was revisited as a result of
  additional engineering studies
• The amendment will provide detail about the
  benefits and costs some of the benefits include
• enhanced loss savings
• improved operating flexibility and future
  capacity
• less impact on generating plants following
  contingencies

25
Questions?
26
AltaLink UpdateSouth KEG 500 kV Conversion
27
South KEG Conversion Update

• Progress since Need approval
• Engineering studies
• Transformer amendment studies
• Short circuit load flow studies
• Functional specification input

28
South KEG Conversion Update

• Progress since Need approval (contd)
• General Project Management
• Baseline scope, schedule and estimate
• Project execution plan development
• Detailed technical scope development
• AltaLink project team in place
• Coordination with EPCOR Transmission
• Project risk management process implemented
• Preparation for Proposal to Provide Service (PPS)
  submission to AESO

29
South KEG Conversion Schedule

• AESO Need Approved April/05
• Landowner Consultation Begins July/05
• Functional Specification Complete Oct/05
• 20 -10 Estimate Nov/05
• Proposal to Provide Service Nov/05
• Facility Application Jan/06
• Permit and License June/06
• Equipment Material Procurement July/06
• Construction Start Sept/06
• 10 -10 Estimate Nov/06
• In-service Date Nov/07

30
Questions?
31
Genesee to Langdon 500 kV Line
32
Genesee to Langdon 500 kV Line

• Progress since Need approval
• Engineering studies
• Meteorological study completed
• Tower family development
• Line optimization study
• Functional specification input

33
Genesee to Langdon 500 kV Line

• Progress since Need approval (contd)
• General Project Management
• Baseline scope, schedule and estimate
• Project execution plan development
• Detailed technical specification development
• AltaLink project team in place
• Coordination with EPCOR Transmission
• Project risk management process implemented

34
Genesee to Langdon 500 kV Line Schedule

• AESO Need Approved April/05
• Landowner Consultation Begins July/05
• Functional Specification Complete Oct/05
• 20 -10 Estimate Apr/06
• Proposal to Provide Service Apr/06
• Facility Application June/06
• Permit and License Dec/06
• Equipment Material Procurement Jan/07
• 10 -10 Estimate March/07
• Construction Start June/07
• In-service Date Sept/09

35
Questions?
36
Stakeholder Information UpdateEdmonton-Calgary
500 kV Transmission Development

• September 29, 2005
• Progress Towards Facility Application
• Mark Johns, manager, Conceptual Engineering and
  Siting - AltaLink

37
Siting Overview

• What are we trying to accomplish
• Determine the most appropriate route, balancing
• Environment
• Land use
• Social
• Technical
• Cost
• Using our ongoing route evaluations and input
  from our stakeholder consultations

38
S-KEG Conversion Siting Overview

• Conversion of an existing 500 kV facility
• No EIA required, as original approvals were for
  500 kV operation
• Information provided to all landowners adjacent
  to existing 500 kV line
• Consultation with landowners adjacent to
  Ellerslie substation site expansion
• Other government and non-government stakeholders
  also consulted with

39
S-KEG Conversion Siting Update

• Stakeholder consultations almost complete
• Most concerns related to existing facilities and
  are being addressed
• Ellerslie site a busy area powerlines,
  substation, Anthony Henday intersection our
  expansion is relatively minor on that landscape
• Stakeholder discussions considering a tree screen
  at Ellerslie substation site

40
S-KEG Conversion Siting Next Steps

• Summarize commitments made to address concerns
  expressed and suggestions made
• File EUB application near end of 2005
• Decision from EUB anticipated in 2006

41
Genesee-Langdon Line Siting Overview

• Two route alternatives Genesee to Lochend
  parallel greenfield, both within the West
  Corridor
• Multiple alternatives Lochend to Langdon
• Draft Terms of Reference for EIA filed with
  Alberta Environment
• Consultation with all landowners within 800 m of
  all routes
• Other government and non-government stakeholders
  also consulted

42
Genesee-Langdon Line Siting Update

• Consultation with approximately 2500 landowners
  plus agencies
• First round of consultation 95 complete
  (individual around kitchen table and phone calls)
• Most common issues are
• Land devaluation
• EMF
• Compensation
• Access for farm machinery
• Visual impact

43
Genesee-Langdon Line Siting Next Steps

• Evaluating the mountain of input we received to
  date
• Meeting with landowner groups
• Information sessions planned for November
• Update package for landowners in the October
  timeframe
• Updates and any decisions made, and summary on
  input received will be communicated
• Next round of consultations to start in January
  06
• Aiming to file EUB application mid-2006

44
Questions?
45
Stakeholder Information UpdateEdmonton-Calgary
500 kV Transmission Development

• September 29, 2005
• Proposal for Ongoing Information Updates
• Fred Ritter, director, Project Engineering - AESO

46
Summary

• No change in timing of the need
• Were on track with the projects
• Filing amendment with EUB on transformer size
• Developing project reporting process

47
Ongoing Reporting

• Reporting objectives
• Key areas of project
• Reporting forums
• Proposal for regular updates

48
Reporting Objectives

• Keep industry stakeholders informed about this
  important project
• Provide a forum for questions and dialogue with
  ALtaLink, EPCOR Transmission, and the AESO
• Gather and address industry stakeholder concerns
  and questions about this project

49
Key Areas of Project Reporting

• Estimated final cost
• Project expenditure commitments
• Schedule update
• Key developments with the project

50
Ongoing Reporting Proposal

• AESO website
• Regular project report updates
• Stakeholder letters and notices
• Transmission Projects quarterly report
• www.aeso.ca Transmission gt Transmission
  Projectsgt Edmonton to Calgary 500 kV Transmission
  Development
• Weekly Stakeholder email newsletter

51
Ongoing Reporting Proposal (contd)

• Stakeholder meeting as today
• AESO, AltaLink and EPCOR Transmission
  participating
• Triggered on key developments or milestones
• Next meeting before year end
• Revised cost projections
• Updated schedule
• Other key developments

52
Contacts- Project information

• Andy Kneubuhler, manager, 500 kV Projects
• 539-2758
• andy.kneubuhler_at_aeso.ca
• Fred Ritter, director, Engineering
• 539-2616
• fred.ritter_at_aeso.ca
• www.aeso.ca Transmission gt Transmission
  Projectsgt Edmonton to Calgary 500 kV Transmission
  Development

53
(No Transcript)