Your guide to the Foothills Area Transmission Development

Your guide to the

Foothills Area

Transmission Development

Contents 1

Foothills Area Transmission Development

2

Foothills Area Transmission Development Map

5 Electricity at a Glance 6 Consultation 7 Transmission Routes 8 Compensation 9 Value 10 Investing in Alberta’s Future 11 Environment 12 Construction 13 Transmission Terms

Our transmission lines transport the power you use every day.

85% Edmonton Red Deer Calgary

Lethbridge

AltaLink Service Territory

AltaLink’s transmission system efficiently delivers electricity to 85 per cent of Albertans. Dedicated to meeting the growing need for electricity, AltaLink connects Albertans to renewable, reliable and low-cost power. With a commitment to community and environment, AltaLink is ensuring the transmission system will support Albertans’ quality of life for years to come.

Learn more at www.altalink.ca.

Foothills Area Transmission Development Use this as your guide to the Foothills Area Transmission Development (FATD). Learn about the projects and how you can be involved in our public consultation program and route selection process. This guide also has information about our compensation program and environmental and construction practices.

To maintain a reliable supply of electricity and keep up with the population growth and industrial demand in Calgary, and the communities south and east of Calgary, new power plants are planned including gas generation and wind power generated in southern Alberta.

To bring power from where it’s generated to you, upgrades to the electric system and new transmission developments are required.

Electricity consu mption in Calgary and the communities south and east of Calgary is expected to increase by approximately 30 per cent in the next decade.

Source: Alberta Electric System Operator

The project process The need The Alberta Electric System Operator (AESO) will file the need for the FATD in a formal application, known as a Needs Identification Document (NID), with the Alberta Utilities Commission (AUC). The AESO may consider filing separate NIDs for different projects within the FATD.

Who decides?

For each project, AltaLink submits a Facilities Application for the proposed facilities to the AUC. The AUC must review all applications and can approve, approve with conditions or deny a Facilities Application.

The length of time for the review process varies.

How do you fit in?

We will work closely with you throughout our consultation process so that, together, we can find the best location for our facilities.

Regulatory process When the AUC deems an application is complete, a Notice of Application is issued to people that may be affected by the proposed project and

is also typically published in local newspapers. This notice advises the public a Facilities Application has been received, how copies of the application can be obtained, how to access any additional material filed by parties supporting or opposing the application and how to participate in the process. For more information about the AUC process, please visit the AUC website at www.auc.ab.ca.

Guide to the Foothills Area Transmission Development AltaLink

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PLEASE NOTE - the electric extension cords DO NOT REPRESENT TRANSMISSION LINE ROUTES

CALGARY

CHESTERMERE

1

LANGDON SUBSTATION JANET SUBSTATION

LANGDON

NO. 65 SUBSTATION

2

22

3

NO. 25 SUBSTATION

OKOTOKS SUBSTATION THE BIG ROCK

OKOTOKS

7 HIGH RIVER SUBSTATION FOOTHILLS SUBSTATION HIGH RIVER

23

2 4

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AltaLink Guide to the Foothills Area Transmission Development

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22X

Foothills Area Transmission Development (FATD) Pictured to the left are FATD projects that AltaLink is currently completing public consultation for.

North Foothills Transmission Project

New transmission line starting at the proposed Foothills Substation (east of Highway 2, east of High River) to the proposed No. 65 Substation in southeast Calgary (near the intersection of Highway 22X and 88 Street SE).

Langdon to Janet Transmission Project

New transmission line from the Langdon Substation (located in Rocky View County, and west of the Hamlet of Langdon) to the Janet Substation (located in Rocky View County, east of Calgary at the corner of 50 Avenue and Garden Road SE).

High River to Okotoks Transmission Project

New transmission line from the Foothillls Substation (east of Highway 2, east of High River) to the High River Substation (located just northwest of the city of High River). Transmission line rebuild from the High River Substation to the Okotoks Substation (located just east of Okotoks).

Okotoks to Janet Project

ModiďŹ cations to existing transmission lines from Okotoks Substation (located just east of Okotoks) to the Janet Substation (located in Rocky View County, east of Calgary at the corner of 50 Avenue and Garden Road SE).

Proposed substations

Other area transmission projects Other projects 1

Western Alberta Transmission Line New transmission line from the Genesee area to the Langdon Substation.

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East Calgary Transmission Project Joint project with ENMAX Power that includes work at four existing substations and transmission line connections, including a new transmission line to connect the proposed No. 25 Substation to the Janet Substation.

Substation 65 Interconnection Approximately 400 metres of new transmission line from an existing transmission line to the proposed ENMAX No. 65 Substation.

3 4

South Foothills Transmission Project New transmission line from southwest of Fort MacLeod to the Foothills Substation.

Guide to the Foothills Area Transmission Development AltaLink

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Did You Know?

The existing electrical transmission system in Calgary, and the communities south and east of Calgary, has not had a major development or upgrade since 1985.

A lot has changed since 1985...

1988

2008

Digital cell phones are invented.

The Wii Fit Console is introduced.

1985 The compact disc becomes mainstream.

2001 Apple announces the release of the first ipod, replacing the popular portable CD player.

1985 The population has grown dramatically from 1985 to 2010.

Source: Government of Alberta, Municipal Census

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AltaLink Guide to the Foothills Area Transmission Development

Electricity at a Glance GENERATION GENERATION GENERATION ATCO Power GENERATION Generation ATCO ATCO Power Power TransAlta

ATCO Power ATCO Power TransAlta TransAlta Capital Power Corporation TransAlta TransAlta Capital Power Corporation Capital Power Corporation ENMAX Energy Capital Power Corporation Capital Corporation ENMAXPower Energy ENMAX Energy Wind turbines ENMAX Energy Wind turbines Wind turbines Cogeneration plants Wind turbines Cogeneration plants Cogeneration plants Cogeneration plants

TRANSMISSION Transmission TRANSMISSION TRANSMISSION AltaLink TRANSMISSION AltaLink AltaLink AltaLink

ATCO Electric AltaLink ATCO Electric ATCO Electric ATCO Electric ENMAX Power (Calgary) ATCO Electric ENMAX Power (Calgary) ENMAX Power (Calgary) ENMAX Power (Calgary) EPCOR (Edmonton) ENMAX Power (Calgary) EPCOR (Edmonton) EPCOR (Edmonton) EPCOR EPCOR(Edmonton) (Edmonton)

SUBSTATION SUBSTATION Substations SUBSTATION AltaLink SUBSTATION AltaLink AltaLink AltaLink

ATCO Electric AltaLink ATCO Electric ATCO Electric ATCO Electric ENMAX Power (Calgary) ATCO Electric ENMAX Power (Calgary) ENMAX Power (Calgary) ENMAX Power (Calgary) EPCOR (Edmonton) ENMAX Power (Calgary) EPCOR (Edmonton) EPCOR (Edmonton) EPCOR (Edmonton) EPCOR (Edmonton)

DISTRIBUTION Distribution DISTRIBUTION DISTRIBUTION FortisAlberta DISTRIBUTION FortisAlberta FortisAlberta FortisAlberta

Generating Generating Generating facilities convert Generating facilities convert facilities convert various forms of facilities convert various forms of various forms of ENMAX Energy energy into various forms of energy into energy into Wind turbines electric power. energy into electric power.

Cogeneration plants electric electricpower. power.

Transmission Transmission Transmission lines connect the Transmission lines connect the lines connect the power produced lines connect the power produced power produced at generating power produced at generating atat generating facilities to generating facilities to facilities toto substations. facilities substations. substations. substations.

Substations are Substations are Substations are the connection Substations are the connection the connection points between the connection points between points transmission and pointsbetween between transmission and transmission and distribution transmission and distribution distribution systems. distribution systems. systems. systems.

Distribution lines Distribution lines Distribution lines carry electricity Distribution lines carry electricity carry electricity to homes, farms carry electricity to homes, farms to farms and businesses. tohomes, homes, farms and businesses. and businesses. and businesses.

ATCO Electric FortisAlberta ATCO Electric ATCO Electric ATCO Electric ENMAX Power (Calgary) ATCO Electric ENMAX Power (Calgary) ENMAX Power (Calgary) ENMAX (Calgary) EPCORPower (Edmonton) ENMAX Power (Calgary) EPCOR (Edmonton) EPCOR (Edmonton) EPCOR (Edmonton) Rural Electrification EPCOR (Edmonton)Associations Rural RuralElectrification Electrification Rural Electrification Associations Rural Electrification Associations Associations Associations

Retailers

RETAILERS RETAILERS RETAILERS RETAILERS

Retailers give

Just Energy Alberta Energy CityJust of Lethbridge Utilities Just EnergyAlberta Alberta City of Lethbridge Utilities City of Lethbridge City of LethbridgeUtilities Utilities

providers. providers.

YOU YOU YOU

Electricity is Electricity is Electricity isis delivered to Electricity delivered to delivered to homes, farms delivered to homes, farms homes, farms and businesses. homes, farms and businesses. and andbusinesses. businesses.

Direct Energy Retailers give Retailers consumers a Retailersgive give Direct (Calgary) Energy ENMAX consumers aa Direct Energy consumers choice of Direct Energy consumers a ENMAX (Calgary) EPCOR Energy choice of Direct(Calgary) Energy(Edmonton) choice ofof ENMAX electricity service ENMAX (Calgary) choice EPCOR Energy (Edmonton) Just Energy Alberta electricity service ENMAX (Calgary) EPCOR Energy (Edmonton) electricity service providers.

EPCOR Energy (Edmonton) electricity service Just Energy Alberta City of Lethbridge Utilities providers.

EPCOR Energy (Edmonton)

Y ouYOU

Calgary 625,143 to 1,071,515

High River 5,114 to 11,783

Okotoks 4,981 to 23,201

Generating facilities convert various forms of energy into electric power.

Transmission lines connect the power produced at generating facilities to substations.

Substations are the connection points between transmission and distribution systems.

Distribution lines carry electricity to homes, farms and businesses.

Retailers give consu mers a choice of electricity service providers.

Electricity is delivered to homes, farms and businesses.

2010 Chestermere 550 to 14,285

Guide to the Foothills Area Transmission Development

AltaLink

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Consultation How can you be involved in the process?

AltaLink is committed to an open, respectful and thorough consultation program. We work to identify routes with the lowest overall impact on landowners and the environment. Stakeholder input is crucial throughout this process.

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3 4

We take into consideration the stakeholder input and other technical and environmental information to help us refine the routes.

Depending on the project, we may complete a subsequent stage of consultation on the refined routes.

If this second stage occurs, we will update the information package for community members and once again host open houses and one-on-one meetings.

For most projects, we determine preferred and alternate routes that we believe have the lowest overall impact. The preferred and alternate routes will be included in our Facilities Application so that the Alberta Utilities Commission (AUC) has different route options to review.

5 6

2

We host open houses and meet with landowners oneon-one to collect input about the preliminary routes.

We communicate with the community about those routes and file a Facilities Application with the AUC.

AltaLink Guide to the Foothills Area Transmission Development

Alberta’s economy has changed drastically since the 1980s – more new businesses open each year which require a reliable supply of electricity to operate.

Transmission Routes Our process

Prior to public consultation we develop a series of preliminary route options. The factors below are used when we identify potential route options:

Important Criteria Agricultural

• Loss of crops • Reduced efficiency of field operations

Residential

• Proximity to residences • Loss of developable lands and constraints on future development

Environmental

• Alteration of natural areas and interference with environmentally sensitive areas

Cost

• Construction cost and land acquisition costs

Electrical

• Reliability and reparability of the line

Visual

• Visual impact of structures and lines as seen from residences and recreational areas

Special considerations

• Electrical interference with radio transmitting stations and other telecommunication equipment etc.

Number of businesses operating in 1988 and 2010

High River 1988: 332 2010: 1,623

Calgary 1988: 23,550 2010: 103,705

Okotoks 1988: 253 2010: 2,689

Source: Community Information Database (CID) Business Registry and Statistics Canada Please note due to the changing geographical classifications of these areas over time these are approximate comparisons.

Guide to the Foothills Area Transmission Development

AltaLink

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Compensation How will you be compensated?

There are two primary forms of compensation landowners receive for having transmission facilities on their property: a one-time easement compensation payment and ongoing Annual Structure Payments.

If AltaLink and the landowner are unable to reach an agreement, then the Surface Rights Board would be asked to determine compensation. Further information on the scope of the Surface Rights Board’s authority and procedures are available at www.surfacerights.gov.ab.ca.

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Easement compensation An easement is the area of land required for transmission facilities.

AltaLink will pay fair market value per acre for the total area of the easement that crosses a landowner’s property while the landowner retains ownership of the land. We determine market value by studying sales, industry comparables or appraisals of similar/ comparable types of land in the area.

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Annual Structure Payments (ASPs) ASPs are ongoing annual payments landowners receive per structure on their property. Factors we take into consideration when determining ASPs include: • loss of use of the area enclosed by the structure once operational • inconvenience and additional costs associated with weed control • additional time required to operate equipment around transmission structures • additional seed required • overlap of pesticide/herbicide and fertilizer used when farming around the structure • effects on cultivation • intangible adverse effects

Calgary in 1985

High River in 1986

12th Avenue and 14th Street SW area

4th Avenue S.W. facing east Source: Museum of the Highwood

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AltaLink Guide to the Foothills Area Transmission Development

Value

What impact do transmission lines have on property values?

Landowners often ask this question, and there is no simple answer. Many factors affect market prices of real estate, including market trends, services, proximity to the nearest centres, proximity to existing farming operations and productivity of the soils. The existence of transmission infrastructure is only one factor out of many that would be considered by a prospective buyer.

Further, factors that may be important and valuable to one buyer may be considered a drawback by another. Market forces, such as a buyer’s market, seller’s market and the length of time a property has been listed can also impact a property’s selling price. We can provide you with a list of studies on the subject if you are interested.

Okotoks in 1990 McRae Street facing east Source: Glenbow Archives NA-5654-416

Source: Okotoks Museum and Archives

Guide to the Foothills Area Transmission Development

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Investing in Alberta's Future How AltaLink generates income

Maintaining Alberta’s transmission grid is a big investment. AltaLink earns a regulated return on that investment which is determined by the Alberta Utilities Commission (AUC). AltaLink earns this return by recovering a portion of the transmission charge that is on every ratepayer’s electricity bill. This transmission charge represents less than 10 per cent of the average total electricity bill. As a regulated utility, we must carefully consider all aspects of our projects including the associated costs and we must be prudent in all matters that affect ratepayers.

Breaking down an electricity bill Generation The cost you pay for the electric energy you have used in the given time period.

Charges related to the energy you consume

7% 56%

10%

Administration The cost you pay for administration charges such as fees related to billing and customer service.

Charges related to delivering the energy to you

27% Transmission The cost Transmission Facility Owners (TFO), such as AltaLink, charge to build, operate and maintain the provincial power system.

Distribution The cost your distribution company charges to build, operate and maintain the local distribution system.

Okotoks 2001 to 2006

1996 to 2006

Okotoks had the fastest population growth for mid-size urban centres in Canada.

Okotoks’ labour force more than doubled from 4,560 to 10,065 people.

Source: Okotoks Fact File 2010, Okotoks.ca

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AltaLink Guide to the Foothills Area Transmission Development

Source: Community Information Database (CID)

Environment AltaLink is committed to mitigating the impact on the environment during the planning, construction and operation of our transmission facilities. Wherever reasonable, we avoid environmentally sensitive areas through route selection and structure placement.

Other ways we mitigate environmental impacts include: Wildlife and vegetation

Wetlands

Mitigation of impacts to plants and wildlife is addressed on a case-by-case basis.

Wetlands are avoided where possible through route selection and structure placement. If a structure must be placed into a wetland, we will obtain the necessary approvals from Alberta Environment.

Options include: • f encing off sensitive areas • r estricting the timing of construction • t ransplanting plants or re-seeding if appropriate

Native vegetation

• i nstallation of nesting platforms or habitat restoration programs where applicable

Where appropriate, we implement the following techniques to minimize impacts to native vegetation:

•c leaning vehicles and equipment prior to entering the site to reduce the risk of spreading weeds

Water table Structure foundations on a transmission line are typically not deep enough to affect the water table.

Tree removal

• restricting construction or maintenance activity to designated areas • using existing roadways, access trails and previously disturbed areas for site access trails • re-vegetating disturbed areas post construction using a seed mix appropriate for the site conditions

Some trees may need to be removed to help ensure the safe operation of a transmission line.

Before removing any trees from the right-of-way, we will consult with landowners.

High River 24/7 High River has transformed from a primarily agricultural community to a multi-faceted business community.

New industrial companies demand a lot of power with some operational 24 hours a day.

2X High River is anticipating its population to more than double in the next 20 years.

Source: T own of High River, Business & Tourism Development

Guide to the Foothills Area Transmission Development

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Construction We will continue to communicate with landowners during the construction phase to provide the most up-to-date information and to mitigate any potential impacts that may arise.

Safety commitment

Weed control

AltaLink is committed to the safe design, construction, maintenance and operation of power system facilities. AltaLink’s safety standards and practices are developed to meet or exceed government guidelines and codes to ensure that our facilities meet the requirements for public, employee and neighbouring facility safety.

During construction, weed control measures will be implemented to reduce the risk of spreading weeds. Post construction, a portion of the Annual Structure Payment compensates landowners for ongoing weed control measures. This allows the landowner to choose their preferred method of weed control.

Construction activities

Traffic

The typical stages of transmission line construction include:

During construction, there may be a slight disruption to traffic. Landowners will be notified in advance of any disruption.

• right-of-way, structure workspace and access preparation • materials delivery and storage

Noise

• tree removal and management of vegetation as required

Noise may be produced during the construction phase. After construction is complete, the transmission line may produce a low level noise that might be more noticeable during wet conditions. Our transmission lines are designed to comply with all applicable noise guidelines.

• building of structure foundations • structure assembly and installation • stringing wire (conductor) • completing inspections and energizing the transmission line • cleaning and restoring structure locations and the right-of-way

Calgary 12,500 On average 12,500 new homes were built in Calgary each year, over the last 10 years (2001-2010).

We use electricity more often and in different ways by plugging more things in, turning more things on and flicking switches more often. It’s time to upgrade the system and support Albertans’ quality of life for years to come.

Source: Calgary Economic Development

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AltaLink Guide to the Foothills Area Transmission Development

Transmission Terms Alberta Electric System Operator (AESO) The AESO is the independent, not-for-profit entity responsible for the safe, reliable and economic planning and operation of the Alberta Interconnected Electric System.

Kilovolt (kV) A kilovolt is equal to one thousand volts. This unit of measurement is most commonly used when describing transmission and distribution lines.

Alberta Utilities Commission (AUC) The AUC is an independent agency established by the Government of Alberta with a mission to ensure that the delivery of Alberta’s utility services take place in a manner that is fair, responsible and in the public interest.

Megawatt The generation of electricity, is measured in megawatts (MW).

1 MW = 1,000,000 watts

AltaLink AltaLink owns and maintains the majority of the transmission system in central and southern Alberta.

Capacity The load-carrying ability, expressed in megawatts (MW), of generation, transmission or other electrical equipment.

Facilities Application A Facilities Application is submitted by a Transmission Facility Owner, such as AltaLink, to the AUC. The purpose of the Facility Application is to describe the proposed project to the AUC for its review.

Generation Generating facilities convert various forms of energy into electric power. Most of the electricity generated in Alberta comes from coal or natural gas plants, which create electricity by burning the coal or natural gas and generating steam to turn a turbine. Wind energy is an emerging form of generation and is common in southern Alberta.

Grid A transmission grid is a network of high-voltage, long-distance transmission lines and substations that connect generating facilities to distribution systems.

Interconnected system A system consisting of two or more individual power systems connected together by tie lines or interties.

Need Identification Document A Need Identification Document is a report compiled by the Alberta Electric System Operator. This report examines power production and consumption and identifies areas in the province where there is a need for new or improved utility infrastructure. The Need Identification Document is submitted to the AUC for their review.

Right-of-way A right-of-way is the strip of land required for the construction and operation of a transmission line. A right-of-way refers to the physical space a transmission line encompasses including areas on either side of the line.

Structures Structures support transmission lines. Structures come in different sizes and designs depending on the voltage of the line and number of circuits each tower needs to carry.

Substation A substation is the connection point between transmission and distribution systems. Substations house the equipment used to control and protect the flow of power in the electrical system.

When power passes through a substation, its voltage is reduced so it can be transported to communities through the distribution system.

Transmission lines Transmission lines connect the power produced at generating facilities to substations. Over long distances it is most effective to transport electricity at high voltages.

Thank you

Visit us online! Our website www.altalink.ca has the most up-to-date project information, newsletters, a feedback section and more!

2611 3 Avenue SE Calgary, AB T2A 7W7 www.altalink.ca

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