Facilities – Gas
In this decision, the AUC approved the application from ATCO Gas and Pipelines Ltd. (“ATCO”) to construct approximately 2.68 kilometers of new 88.9-millimeter outside-diameter, high-pressure sweet natural gas pipeline to loop the existing 60.3-millimeter Gleichen Branch Transmission Pipeline under Licence 1819 (the “Project”).
Application
ATCO submitted that the Project is required to meet the current and future natural gas demands on the Gleichen-Cluny transmission system. The need was demonstrated in the approved 2021-2023 General Rate Application (“GRA”).
The Project cost is estimated to be $1,600,000. ATCO is responsible for 100 percent of the cost. ATCO noted that the cost exceeded the costs approved in the GRA proceeding. It noted that the increase is due to an increase in the length of the loop on the 60.3-millimeter Gleichen Branch Transmission Pipeline from 2.4 kilometers to 2.68 kilometers, which allows for a tie‐in to the existing steel pipeline that is more easily constructible than an aluminum pipeline tie-in. In addition, the longer pipeline allows the existing pipeline to remain in service during the tie‐in, thereby minimizing customer impact during construction. ATCO submitted that even with the additional cost, the Project remained the least cost alternative.
Findings
Considering that the Project need has been established in the ATCO 2021-2023 GRA, and as there were no outstanding environmental or public interest concerns, the AUC found that approval of the Project is in the public interest as required by Section 17 of the Alberta Utilities Commission Act. The AUC determined that the minor increase in Project length to facilitate a tie-in to the existing steel pipeline rather than the existing aluminum pipeline is operationally prudent.
Decision
Pursuant to Section 11 of the Pipeline Act and Section 4.1 of the Gas Utilities Act, the AUC approved the application.
