Stakeholder Information Update

Edmonton-Calgary 500 kV Transmission Development

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

Today’s Meeting - Purpose

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

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

AESO Core Business Functions

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

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

Hydro Wind Project Need:

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

Gas Coal

Edmonton–Calgary Reinforcement

Key Elements

•

S-KEG Lines Conversion to 500 kV (Keephills-Genesee-Ellerslie)

•

New 500 kV line (Genesee to Langdon) Keep hills Wabamun Genesee Benalto

Rossdale Clover Bar

Devon Ellerslie Battle River Cordel Red Deer Benefits

•

Necessary to reliably serve Alberta (Red Deer & south) Lochend

•

Remove barriers to new generation

•

Significant line loss savings Sarcee Beddington Janet E. Calgary Langdon Anderson Milo Metiskow Jenner West Brooks

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

Stakeholder Information Update

Edmonton-Calgary 500 kV Transmission Development

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

Forecast Update

What’s 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

Forecast Update

Adjustments 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

Forecast Update

Supply-Demand Gap

16000 15000 5,400 MW of new generation required by 2015 to fill the gap 14000 13000 12000 11000 10000 9000 8000 7000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

AIL +10% AIL Alberta Firm Generation Alberta Generation with Assumed Additions

Forecast Update

Need 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.

2500 2400 2300 2200 2100 2000 1900 Winter Path Capability 1800 1700 1600 1500 1400 2003 Summer Path Capability 2004 2005 Winter capability exceeded in 2009 2006 2007

Year

2008 Summer Loading Updated Winter Loading Updated 2009 2010 2011

Forecast Update

Congestion on the Edmonton to Calgary path Forecast 2009 Seasonal Path Loading Duration Curve

Interim measures & conversion of S-KEG will reduce congestion to less than 5% 2500 If no new large units go into service in the north, path congestion forecast to be 10% during the summer hours of 2009 2000 1500 1000 500 Summer SOK Winter SOK Summer Path Capability 0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Forecast Update

No 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

Questions?

Stakeholder Information Update

Edmonton-Calgary 500 kV Transmission Development

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

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

Wabamun Keep hills Genesee Benalto Beddington Sarcee Janet E. Calgary

Rossdale Clover Bar

Devon Red Deer Ellerslie Langdon Milo Battle River Cordel Anderson Metiskow Jenner West Brooks

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

Wabamun Keep hills

Rossdale Clover Bar

Genesee Devon Ellerslie Benalto Red Deer Battle River Cordel Metiskow Anderson Lochend Sarcee Beddington Janet E. Calgary Langdon Milo Jenner West Brooks

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 TFO’s (AltaLink & EPCOR Transmission) • • • Hold monthly project coordination meetings Develop a functional specification for each project Develop project monitoring and reporting processes

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

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

EUB Need Approval Amendment

• • • Detailed engineering has led to the need to file an amendment application with the EUB The AESO’s 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

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

Questions?

AltaLink Update South KEG 500 kV Conversion Keep hills Wabamun

Rossdale Clover Bar

Genesee Devon Ellerslie Benalto Red Deer Battle River Cordel Metiskow Anderson Sarcee Beddington Janet E. Calgary Langdon Milo Jenner West Brooks

South KEG Conversion Update

Progress since Need approval

• Engineering studies • • • Transformer amendment studies Short circuit & load flow studies Functional specification input

South KEG Conversion Update

Progress since Need approval (cont’d)

• 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

• • • • • • • • • • •

South KEG Conversion – Schedule

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

Questions?

Genesee to Langdon 500 kV Line Wabamun Keep hills

Rossdale Clover Bar

Genesee Devon Ellerslie Benalto Red Deer Battle River Cordel Metiskow Anderson Lochend Sarcee Beddington Janet E. Calgary Langdon Milo Jenner West Brooks

Genesee to Langdon 500 kV Line

Progress since Need approval

• Engineering studies • • • • Meteorological study completed Tower family development Line optimization study Functional specification input

Genesee to Langdon 500 kV Line

Progress since Need approval (cont’d)

• 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

• • • • • • • • • • •

Genesee to Langdon 500 kV Line – Schedule

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

Questions?

Stakeholder Information Update Edmonton-Calgary 500 kV Transmission Development

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

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

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

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

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

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

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

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

Questions?

Stakeholder Information Update Edmonton-Calgary 500 kV Transmission Development

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

Summary

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

Ongoing Reporting

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

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

Key Areas of Project Reporting

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

Ongoing Reporting Proposal

• AESO website • • • • Regular project report updates Stakeholder letters and notices Transmission Projects quarterly report www.aeso.ca

– Transmission > Transmission Projects> Edmonton to Calgary 500 kV Transmission Development • Weekly Stakeholder email newsletter

Ongoing Reporting Proposal (cont’d)

• 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

Contacts- Project information

• • Andy Kneubuhler, manager, 500 kV Projects • • 539-2758 [email protected]

Fred Ritter, director, Engineering • • 539-2616 [email protected]

www.aeso.ca

– Transmission > Transmission Projects> Edmonton to Calgary 500 kV Transmission Development