Industrial System Designation – Amendment
In this decision, the AUC approved an application from Suncor Energy Inc (“Suncor”) to amend its Base Plant Industrial System Designation (“ISD”).
Introduction
Suncor applied to amend the ISD to include the approved but not constructed Inglis Island 806-megawatt (“MW”) cogeneration power plant and associated transmission facilities.
Discussion
Suncor’s existing industrial system contains five steam turbine generators and seven gas turbine generators with a combined capability of approximately 900 MW, producing gross generation of approximately 700 MW. Suncor requested approval to include the following systems in its ISD:
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Inglis Island Power Plant, which is comprised of two 403-MW natural gas turbine generators;
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Inglis Island Substation (29EDD-60), which includes one 260/15.5-kilovolt (kV), 300/400/500-megavolt ampere (MVA) transformer and associated substation equipment;
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Stone Island Substation (29EDD-61), which includes one 260/15.5-kV, 300/400/500-MVA transformer and associated substation equipment, and
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Two 260-kV transmission lines designated as 29PL9-24 and 29PL9-25.
With the inclusion of the Inglis Island Power Plant, the industrial system would have a total capability of over 1,700 MW. Suncor submitted that up to 1,265 MW of that would be available to be exported to the Alberta Interconnected Electric System (“AIES”).
Findings
The AUC considered principles set out in subsection 4(2) of the Hydro and Electric Energy Act concerning the development of an economical supply of electricity in its decision to amend the ISD. The AUC considered that the energy produced by the Inglis Island Power Plant would be predominantly exported to the AIES rather than used to serve the on-site load.
The AUC found that the proposed industrial system facilitates the economical supply of generation that meets all the energy requirements of Suncor’s integrated industrial processes.
The AUC noted that the existing facilities would continue to serve a significant amount of on-site load, and found that as a whole, the industrial system would result in reduced transmission losses. The AUC accepted Suncor’s submissions that:
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Spare capacity existed on the transmission system in the Fort McMurray area and the project would not trigger incremental system upgrades; and
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The project would help maintain voltage stability, and would provide frequency support, and improve system inertia.
Pursuant to Section 4 of the Hydro and Electric Energy Act and sections 2(1)(d) and 117 of the Electric Utilities Act, the AUC approved the application.
