May 2010

East Palliser Transmission Project New transmission lines and switching station

Who is AltaLink?

AltaLink owns transmission facilities in the area and is seeking your input about this project. We are based in Alberta and own and operate approximately 11,800 kilometres of transmission lines and 270 substations. We provide electric service to more than 85 per cent of Albertans and own the majority of the transmission system in central and southern Alberta.

Why are you receiving this newsletter?You are receiving this newsletter because you are a resident, occupant or landowner near the proposed East Palliser Transmission Project and we want your input. This newsletter provides an update about the proposal to construct and operate two new transmission lines, a new switching station in Cypress County and to make additions to the Bowmanton and Cypress substations.MEDICINE HAT

REDCLIFF

Bowmanton244S

Elkwater264S Wildrose 1

Wildrose 2

CYPRESS562S

Bowmanton

Schuler

Pivot

Hilda

McNeill

Tothill

Woolchester

Saskatchewan

C . F . B .S u f f i e l d

www.albertaelectricityfuture.ca/satr • satrinfo@altalink.ca • 1-877-269-5903 (toll-free)

Place: Irvine, AB

Date: Thursday, May 27, 2010

Time: 4 – 8 p.m.

Address: Irvine Community Complex

207 Francis Street

Place: Schuler, AB

Date: Wednesday, May 26, 2010

Time: 4 – 8 p.m.

Address: Schuler Community Centre

19 1st Avenue East

Please join us at our open houses...

Electricity. When you need it.Electricity. When you need it.

What is the history of this project?NaturEner Energy Canada Inc. (NaturEner) and its affiliate company NaturEner East Palliser Transmission Inc. have been working to gather input about this project since 2008. Information collected from landowners, agencies, industry, the Alberta Electric System Operator (AESO) and other stakeholders has been used to develop the proposed project details included in this newsletter. A summary of the consultation activities that have taken place to date are below.

Who is NaturEner?

NaturEner is a global renewable energy company in the business of creating and selling renewable power. NaturEner has a variety of renewable energy production facilities such as solar, wind and hydro in Spain and the U.S. and maintains a development pipeline of more than 1,500 megawatts in Spain, the U.S. and Canada.

Date Activity Company

Spring 2008NaturEner began the consultation process for the East Palliser Transmission Project.

NaturEner

December 2008 Stakeholders received first information package.NaturEner AltaLink

January/February 2009One-on-one consultation meetings with stakeholderswere held.

NaturEner

March 2009 Stakeholders received second information package.NaturEner AltaLink

Spring 2009Environmental reviews were completed along the EastPalliser Transmission Project proposed route options.

NaturEner

Fall 2009

Discussions between NaturEner, AltaLink and theAESO identified the potential opportunity for collaboration between NaturEner and AltaLink to reduce the overall amount of transmission line being built in the Cypress County area.

NaturEner AltaLinkAESO

November 2009A project update letter was mailed out to specific landowners who would be potentially affected by changes to the East Palliser Transmission Project route.

NaturEner AltaLink

April 2010 A second update letter was mailed out. NaturEner

AltaLink is completing the planning and consultation activities for this project and is seeking your input.

Electricity. When you need it.Electricity. When you need it.

How were potential routes identified?When identifying route options, AltaLink takes several factors into consideration in an effort to determine the transmission line route with the lowest overall impact.

We consider factors such as residential density, environmental impacts, gas wells, irrigation systems and future transmission system planning.

We identify areas and sites to follow such as existing linear development, like highways, established transmission lines, quarter lines or section lines. After identifying areas with a lower relative impact, preliminary route options are analyzed for constructability and cost.

Route identification criteriaThe table below lists general criteria we take into consideration when identifying and refining potential routes and some examples of these criteria.

What about Electric and Magnetic Fields (EMF)? AltaLink recognizes some people are concerned about EMF and we treat those concerns very seriously. For more information please refer to the brochure titled A Dialogue on Electric & Magnetic Fields included with this package.

Criteria Examples

Agricultural • loss of crops

• reduced efficiency of field operations

Residential • loss of developable lands and constraints on development

• noise and TV interference

Environmental • alteration of natural areas and interference with outdoor educational opportunities

Cost • construction cost and land acquisition costs

Electrical • reliability and reparability of the line

Visual • visual impact of towers and lines as seen from residences, farms, roads and recreational

installations

Special considerations • electrical interference with radio transmitting stations and other telecommunication

equipment etc.

Electricity. When you need it.Electricity. When you need it.

What does this project involve?

New transmission lines The proposed project involves constructing two new transmission lines.

• East Palliser North: approximately 75 kilometres of new transmission line between the proposed Bowmanton Substation, northeast of Medicine Hat, and the existing Cypress Substation, near the intersection of Highway 41 and Highway 545 in northern Cypress County.

• East Palliser South: approximately 35 kilometres of new transmission line between NaturEner’s proposed Wild Rose 1 Substation (part of the proposed Wild Rose 1 Wind Power Project) and a proposed Elkwater Switching Station. The Elkwater Switching Station will also connect to NaturEner’s proposed Wild Rose 2 Wind Power Project through a small section of proposed transmission line (approximately 0.5 kilometres in length).

Please note NaturEner’s proposed Wild Rose 1 and Wild Rose 2 Substations are not part of AltaLink’s East Palliser Transmission Project. For information about these facilities please visit www.naturener.net.

Please view the picture above for an example of the transmission structure type proposed for this project. These structures will be:

• single-circuit, two-pole H-frame structures • 240 kV (240,000 volts) • approximately 20 to 25 metres tall (65 to 82 feet) • spaced approximately 200 metres apart (656 feet) • located on a right-of-way approximately 40 metres wide (130 feet)

A right-of-way refers to the strip of land required for the construction and operation of a transmission line. The right-of-way is subject to development restrictions to help ensure the safe operation of the transmission facility.

Please refer to the enclosed maps for the potential route options being considered for this project.

Typical 240 kV H-frame transmission structure.

Electricity. When you need it.Electricity. When you need it.New switching stationThe East Palliser Transmission Project includes a proposed 240 kV switching station, to be called Elkwater, near Woolchester. A switching station contains circuit breakers and other automated mechanisms that switch or divide electrical output between different distribution lines should system faults occur.

The Elkwater Switching Station will provide for the safe, reliable and efficient interconnection of NaturEner’s proposed Wild Rose 1 and 2 Wind Power Projects to the electric system.

Additions to Bowmanton and Cypress substationsNew equipment is required at both substations to enable the proposed transmission development. This will not require an expansion to the Cypress Substation but will require an approximate 40 by 12 metre expansion to the east side of the Bowmanton Substation. The Bowmanton Substation is proposed as part of our West Brooks to East Medicine Hat project.

Why is this project needed?The Alberta Electric System Operator (AESO) has confirmed the need for the East Palliser Transmission Project to connect the proposed Wild Rose 1 and 2 Wind Power Projects to the electric system. The AESO is an independent, not-for-profit entity responsible for the safe, reliable and economic planning and operation of the electric grid.

NaturEner has requested a transmission interconnection for its proposed Wild Rose 1 and 2 Wind Power Projects located south of Irvine in Cypress County. Each wind power project will provide up to 200 megawatts (MW) each of additional wind power to the province’s electric system.

The East Palliser Transmission Project not only connects renewable wind power to the rest of the province, but ensures our electricity system is reliable through diversification of power sources.

What is the project schedule?

May to July 2010

Summer 2010

Fall 2011

Notify and consult with stakeholders

File application with the Alberta Utilities Commission (AUC) for its review

Start project construction if approval is granted by the AUC

Typical 240 kV switching station.

Electricity. When you need it.Electricity. When you need it.

How does the East Palliser Transmission Project relate to other projects in the area?The East Palliser Transmission Project is related to both AltaLink’s proposed West Brooks (Cassils Substation) to East Medicine Hat (BM) and the East Medicine Hat (Bowmanton Substation) to Whitla (MW) projects, which are being proposed as part of the Southern Alberta Transmission Reinforcement (SATR).

If the Alberta Utilities Commission (AUC) approves both the BM and MW projects, they will provide two connection points for the East Palliser Transmission Project: • at the Bowmanton Substation • at the Elkwater Switching Station

By coordinating the infrastructure proposed by these projects we are able to reduce costs, increase efficiencies and reduce the overall impact of transmission development in Cypress County.

Please refer to the diagram to the right that illustrates how the East Palliser Transmission Project relates to other AltaLink projects in the area. Please note this diagram does not depict specific routes. Please view the maps included in this package for specific routing options for the proposed East Palliser Transmisison Project.

What will the project cost?The East Palliser Transmission Project is a customer requested interconnection and the majority of the costs associated with the project will be paid by the customer, NaturEner. Costs associated with any system work will be paid by ratepayers. System work required for this project includes some work at the Bowmanton Substation.

An effective transmission system improves reliability so you have power when you need it, reduces wasted energy and provides access to the lowest cost power across the province. As a regulated utility, we must carefully manage our costs as they affect Alberta’s ratepayers.

Medicine Hat

1

1

1

41

41

41

41

41

Proposed AltaLink Bowmanton Substation

ProposedAltaLink

WhitlaSubstation

Proposed AltaLink

Elkwater Substation

Proposed NaturEner Wild Rose 2 Substation

Proposed AltaLinkCassils Substation(Brooks area)

Proposed NaturEner Wild Rose 1 Substation

Existing AltaLinkCypress Substation

Irvine

Schuler

East Palliser Transmission Project (240 kV)

SATR project (240 kV)

Existing transmission line (138 kV)

Electricity. When you need it.Electricity. When you need it.How can you provide input?Your input is very valuable to us. We will work with you to ensure your questions and concerns are understood and responded to. AltaLink’s representatives will contact landowners, residents and occupants near the proposed transmission line routes and substation sites. We consider landowner comments in our routing evaluations and summarize the input received from landowners in our Facilities Application (FA). The FA describes our plans to meet technical requirements set by the AESO and provides information on transmission line routing and site selection, the environment, costs, project components and schedules and our participant involvement program. We will submit the FA to the AUC for its approval.

The AUC is a quasi-judicial agency that ensures the fair and responsible delivery of our utility services. We have enclosed a copy of the AUC brochure: Public Involvement in Needs or Facilities Applications, which describes how you can be involved in the AUC process.

You can provide your input by:

Contacting us directly Phone: 1-877-269-5903 (toll-free)E-mail: satrinfo@altalink.ca

Attending open houses Open house dates and locations can be found in this newsletter. We will also advertise the dates, times and locations in local newspapers. Project team members will be available at each open house to answer questions, provide information and gather your input.

Engaging in personal consultations AltaLink representatives will contact residents, occupants and landowners near the potential routes to discuss the project individually. The personal consultations will begin in May 2010.

Upcoming consultation schedule

Date Activity Company

May 2010 Information package mailed to stakeholders. AltaLink

May 2010 Project open houses held May 26 in Schuler and

May 27 in Irvine. AltaLink

May to July 2010 One-on-one consultation meetings with stakeholders. AltaLink

Summer 2010 A project update letter will be mailed outlining the final details of the project.

AltaLink

Visit us onlineThe AltaLink website www.albertaelectricityfuture.ca/satr has the most up-to-date project information, newsletters, a feedback section and more.

2611 - 3rd Avenue SE Calgary, Alberta T2A 7W7 Phone: 1-877-269-5903 (toll-free)Fax: 403-267-8058 www.albertaelectricityfuture.ca/satr

Follow us on Twitter!

You can now follow AltaLink on Twitter. Learn more about upcoming project open houses, community activities, news releases and much more by becoming a follower. Go to www.twitter.com/AltaLink to follow us.

Included in this Stakeholder Information Package:• Project maps

• AltaLink in Southern Alberta

• A Dialogue on Electric & Magnetic Fields

• Good Neighbours

• AltaLink DVD: Meeting Alberta’s Electricity Needs

• Public Involvement in Needs or Facilities Applications

• Alberta Electric System Operator’s Need Overview

Who can you contact for more information? AltaLink: 1-877-269-5903 (toll-free)

Alberta Electric System Operator (AESO): 1-888-866-2959 (toll-free)

Alberta Utilities Commission (AUC): 780-427-4903

(You can call toll-free by dialing 310-0000 before the number.)

Thank you!Your input is important to us. To learn more about this project please visit www.albertaelectricityfuture.ca/satr or contact us at the information listed below.