AltaLink Management Ltd.

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1 Decision D Central Alberta Underground Fibre Optic Build July 12, 2016

2 Alberta Utilities Commission Decision D Central Alberta Underground Fibre Optic Build Proceeding Application A001 July 12, 2016 Published by the: Alberta Utilities Commission Fifth Avenue Place, Fourth Floor, 425 First Street S.W. Calgary, Alberta T2P 3L8 Telephone: Fax: Website:

3 Alberta Utilities Commission Calgary, Alberta Decision D Proceeding Central Alberta Underground Fibre Optic Build Application A001 1 Decision summary 1. In this decision, the Alberta Utilities Commission must decide whether to approve an application by (AltaLink) to construct and operate an underground fibre optic cable in central Alberta. For the reasons outlined in this decision, the Commission finds that approval of the proposed development is in the public interest, having regard to the social and economic effects of the project and its effect on the environment. Pursuant to sections 14 and 15 of the Hydro and Electric Energy Act, the Commission approves the application and grants AltaLink a permit to construct and a licence to operate the underground fibre optic cable. 2 Introduction 2. On February 8, 2016, AltaLink applied to the Commission pursuant to sections 14 and 15 of the Hydro and Electric Energy Act for approval to construct and operate an underground fibre optic cable from the Sunnybrook 510S Substation to the Ellerslie 89S Substation (the project). AltaLink requested the fibre optic cable be designated as Central Alberta Underground Fibre Optic Cable 0012F (the fibre optic cable). The application was filed as Application A001 and assigned Proceeding The Sunnybrook 510S Substation is located in the southwest quarter of Section 36, Township 50, Range 3, west of the Fifth Meridian, in Warburg, Alberta. The Ellerslie 89S Substation is located in the northwest quarter of Section 27, Township 51, Range 24, west of the Fourth Meridian, in the city of Edmonton. The following map illustrates the location of the proposed fibre optic cable: NORTH R R.1W.5M. 16 STONY PLAIN SUNNY BROOK 510S SUBSTATION R.27 SPRUCE GROVE STONY PLAIN NO. 135 SASK ATCH EWAN 16A 60 R. DEVON CITY OF EDMONTON ELLERSLIE 89S 14 SUBSTATION BEAUMONT 2 R.24W.4M. T.53 T.50 LEDUC PROPOSED UNDERGROUND FIBRE OPTIC LINE N.T.S. Decision D (July 12, 2016) 1

4 4. The Commission issued a notice of application to all potentially directly and adversely affected stakeholders on February 29, The Gunn Métis Local 55 (Gunn Métis) submitted a statement of intent to participate (SIP) and an application to file confidential information with the Commission to supplement its SIP. No other person responded to the notice of application. 5. The AUC denied the Gunn Métis request for confidentiality on April 19, 2016, 1 but granted the deadline of April 25, 2016, for the Gunn Métis to file any additional information in support of its SIP. 6. The Gunn Métis did not to file any additional information and, on May 6, 2016, the AUC ruled that the Gunn Métis had failed to demonstrate how the rights it was asserting may have been directly and adversely affected by the Commission s decision on the fibre optic cable and therefore it did not have standing to trigger a hearing into AltaLink s application The AUC also reissued the notice of application to a list of new stakeholders identified by AltaLink but no new submissions were received by the May 24, 2016, submission deadline. 8. The Commission considers the close of record for this proceeding to be May 6, Discussion 9. AltaLink explained that its Western Alberta Transmission Line and ATCO Electric s Eastern Alberta Transmission Line projects are each strung with an optical ground wire creating two significant north-south fibre optic cable links. It stated that these links represented the initial portions of a province-wide utility-owned fibre optic cable ring, built to enhance transmission system reliability. AltaLink stated that an east-west gap exists that could be connected with the proposed new fibre optic cable. AltaLink stated that the project would increase the security, speed and reliability of AltaLink s current telecommunications network. 10. In addition, AltaLink explained that the Alberta Interconnected Electric System is currently experiencing issues with fault protection on the existing 500-kV Transmission Line 1209L. It stated that the project would allow protection on the transmission line to be converted to direct fibre. 11. The project would consist of: a. 71 kilometres of one 72 single-mode fibre optic cable between AltaLink s Sunnybrook 510S Substation and Ellerslie 9089R Radio Site, utilizing: i. AltaLink s existing easement on private land ii. highways 770 and 627 government road allowance iii. Winterburn Road (215th Street) road allowance within the city of Edmonton 1 2 Exhibit X0024, Ruling on Confidentiality Motion, April 19, Exhibit X0034, Ruling on Standing, May 6, Decision D (July 12, 2016)

5 iv. AltaLink s existing 1043L and 909L/1045L and 909L/1044L transmission line rights-of-way within the city of Edmonton v. portions of the Edmonton Transportation/Utility Corridor (TUC) including AltaLink s existing 1209L and 1202L rights-of-way b. 0.4 kilometres of two 48 single-mode fibre optic cables between AltaLink s Ellerslie 9089R Radio Site and Ellerslie 89S Substation in two existing conduits 12. AltaLink stated that the project would provide faster, more secure and reliable communications between the termination points of AltaLink s Sunnybrook 510S Substation and Ellerslie 89S Substation. It explained that this would support faster fault-clearing time between the Genesee electrical generation area and the city of Edmonton. 13. AltaLink explained that the project may also provide communication tie-in points with the proposed Harry Smith 367S Substation and the existing Acheson 305S Substation. These tie-ins would provide the same benefits to reliability, security and speed as with the Sunnybrook 510S and Ellerslie 89S substations. 14. AltaLink stated that the project is part of AltaLink s capital replacement and upgrade programs. As such, there was no direction letter or needs identification document from the Alberta Electric System Operator for the project. 15. AltaLink stated that public notification was provided to all stakeholders, including occupants, residents and landowners, local First Nations, agencies, industrial interest holders and oil and gas companies within 100 metres from the edge of the road allowance, existing transmission rights-of-way and new utility easements in accordance with Rule 007: Applications for Power Plants, Substations, Transmission Lines, Industrial System Designations and Hydro Developments. AltaLink also consulted with the landowners on whose land the fibre optic cable work was proposed. AltaLink submitted that 295 landowners, nine agencies, eight industrial interest holders, and 15 oil and gas companies were notified by mail. 16. AltaLink determined that a six-metre right-of-way would be necessary due to an approximate construction equipment width of four metres plus a one-metre buffer on either side to allow for slight deviations and additional equipment access for construction on private land. Where AltaLink proposed to construct within the TUC, it explained that there would be sections where it would be limited to a four-metre right-of-way width due to obstacles and other facilities in the area. 17. AltaLink stated that some of the rights-of-way it required were located on privately owned lands. It explained that it would make all reasonable efforts to secure the land rights required through negotiation with landowners. If it was unable to obtain the needed land rights through negotiation, AltaLink stated that it would apply to the Surface Rights Board for rights-of-entry orders under the Surface Rights Act. 18. AltaLink stated that it proposed the fibre optic cable route that represented a low-impact location for the project and viable route from a technical and constructability standpoint. AltaLink stated that in its route determination process, it considered routes that utilized or Decision D (July 12, 2016) 3

6 paralleled existing infrastructure, minimized line length and costs, and included feedback from key government agencies and landowners. 19. AltaLink stated that approaches, water bodies, roads and other infrastructure crossings would be directionally drilled to minimize surface disturbance and inconvenience to residential accesses. 20. AltaLink stated that the post-construction land maintenance and weed control of lands on which the fibre optic cable would be installed would be the responsibility of the landowner. Where the fibre optic cable would be located in road allowances in Parkland County, Leduc County, the city of Edmonton, and in the TUC, vegetation management and maintenance would be the responsibility of the appropriate agency. Where AltaLink has a right-of-way easement with a landowner on cultivated lands, AltaLink would not have vegetation management obligations post construction. Where AltaLink has right-of-way easement with a landowner on uncultivated land, generally, AltaLink would follow the obligation in the negotiated right-of-way easement agreement with the landowner. 21. AltaLink submitted an Environmental Specifications and Requirements (ESR) document for the project. In the ESR, AltaLink stated that the project would comply with the Environmental Protection Guidelines for Transmission Lines (R&R/11-03). All activities related to the project would comply with all applicable legislation; regulations and guidelines applicable to transmission line and substation construction, and all project activity would occur within the rights-of-way and approved project work sites. 22. AltaLink submitted that the cost of the project would be $6,658,000 (within +20 per cent/-10 per cent accuracy) allocated as capital maintenance. 4 Findings 23. AltaLink conducted a complete participant involvement program and there are no outstanding public or industry objections from parties granted standing or concerns associated with the construction or operation of the underground fibre optic cable. 24. The Commission finds that the application meets the information requirements stipulated in Rule 007. The Commission also finds that the participant involvement program completed by AltaLink meets the requirements of Rule The Commission is satisfied that the application sufficiently addresses AltaLink s intent to increase the reliability of AltaLink s telecommunications network by connecting, through the fibre optic cable, the Western Alberta Transmission Line to the Eastern Alberta Transmission Line. The Commission finds that the proposed enhancement to AltaLink s communication capability will enhance transmission system reliability. 26. The Commission is satisfied that the environmental aspects of the project have been reasonably assessed by AltaLink. The Commission accepts that impacts to wildlife and the environment would be minimized by virtue of the fact that the underground fibre optic cable will generally be buried in existing road allowances, previously disturbed areas within existing rights-of-way, and the Edmonton TUC. The Commission further finds that the additional 4 Decision D (July 12, 2016)

7 mitigation measures proposed by AltaLink in the ESR and adherence to environmental legislation and environmental regulatory requirements will also effectively minimize the impacts of the project. 27. The Commission finds, given its underground nature, the project will have limited adverse social effects. The Commission observes in this respect that it received only one objection to the project from the Gunn Métis. The Commission considers this lack of objections to the project to be evidence of the project s limited impact to neighbouring landowners. 28. Having considered the social, economic and environmental effects of the proposed project, the Commission finds that approval of AltaLink s application to construct and operate the fibre optic cable is in the public interest pursuant to Section 17 of the Alberta Utilities Commission Act. Therefore, the Commission approves the project as proposed by AltaLink. 5 Decision 29. Pursuant to sections 14, 15 and 19 of the Hydro and Electric Energy Act, the Commission approves Application A001 and grants AltaLink a permit to construct and a licence to operate the Central Alberta Underground Fibre Optic Cable 0012F as set out in Appendix 1 Telecommunications Facilities Permit and Licence D July 12, Appendix 1 will be distributed separately. Dated on July 12, Alberta Utilities Commission (original signed by) Tudor Beattie, QC Commission Member Decision D (July 12, 2016) 5

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