Replacement Project

Urban Pipeline

A NAtURAl GAS PiPEliNE iNitiAtivE Edmonton, Alberta

Safety First. Always.

Project Overview
Background
For more than 100 years ATCO Pipelines has safely and reliably transported natural gas from producers to communities and industrial customers through a network of high-pressure pipelines. For residential customers, these high-pressure lines feed the low-pressure local distribution pipelines, managed by companies such as ATCO Gas, that deliver the natural gas to homes and businesses. In the 1950s and 60s a network of high-pressure pipelines was built on, what was predominately, the outskirts of both Edmonton and Calgary to deliver natural gas to the growing communities. Over the years, urban development in Edmonton and Calgary has overgrown the network of high-pressure natural gas pipelines placing homes, schools and businesses adjacent to these lines. This has created three serious concerns for ATCO Pipelines: 1. Public Safety Due to the proximity of these pipelines to densely populated areas, and the very high pressures at which they operate, an incident involving these pipelines has the potential for tragic consequences. Additionally, despite our best efforts to educate the public, pipelines are still hit by third parties during excavation activities. The current location of these pipelines continues to make them vulnerable to damage and increases the risk that an incident will occur. 2. Construction Standards - These pipelines were constructed to the standards of 50 years ago and are more vulnerable to failure as they near the end of their expected operating life as high-pressure lines. Pipelines built to todays standards have the advantage of substantial improvements in materials, inspection capabilities and damage prevention technologies that reduce the risk of an incident. 3. Meeting Demand - As Edmonton and Calgary continue to grow in size and population, the location and capacity of the existing high-pressure network will not be able to meet the associated growth in demand for natural gas in these cities. This situation is a matter of public safety that is challenging cities across North America. There have already been serious incidents in other jurisdictions prompting ATCO Pipelines to re-evaluate the integrity of its existing pipeline network. As a result, ATCO Pipelines has developed a solution that will dramatically improve public safety and ensure that customers receive safe, reliable natural gas service for decades to come.

Safety First. Always.

the Project
ATCO Pipelines has developed a proactive solution, the Urban Pipeline Replacement (UPR) Project, that will be considered for approval by the Alberta Utilities Commission (AUC). The UPR Project is composed of 10 distinct projects that, if approved, will see a new, modern high-pressure network of natural gas pipelines constructed inside the Transportation/Utility Corridor (TUC) of each city over a period of five years. Unlike many other jurisdictions in North America, Edmonton and Calgary benefit from the Province of Albertas foresight in establishing the TUCs in the 1970s to accommodate utility infrastructure as well as a ring road. These corridors were specifically designed to provide a controlled space to safely locate infrastructure for the growing cities. By shifting the high-pressure transmission of natural gas to a new, modern pipeline network located within the designated TUCs, the UPR Project will reduce the risk of a serious incident by up to 95%. The new pipelines will have significant technological improvements over the existing high-pressure network including: modern pipeline coatings that better protect the pipe from corrosion; enhanced welding practices that reduce the occurrence of leaks; inspection of 100% of the welds during construction; inline inspection capabilities that will detect defects in pipelines and identify repairs required prior to an incident occurring, and remote monitoring technologies that provide early warning of threats to the integrity of the pipeline.

By shifting the high-pressure transmission of natural gas to the TUC, the UPR Project will greatly improve public safety and provide the additional capacity to meet the growing demand for natural gas. ATCO Pipelines believes that the UPR Project is the only viable solution to address the long-term safety and growth of the Edmonton system.

Cost of the UPR Project

The project will be managed and funded by ATCO Pipelines, an investor-owned utility, that ultimately recovers its costs through customer natural gas bills. The impact on customers bills will be incrementally phased in over a period of five years. By the end of the project, the average residential bill will increase by less than $2 per month. The total cost of the UPR project is approximately $600-700 million, which includes the cost to integrate the new high-pressure network with the ATCO Gas low-pressure distribution system.

Make your voice heard!

An important component of our submission to the Alberta Utilities Commission will be the feedback we receive from you. Online, on the phone, or in person, ATCO Pipelines is committed to listening to your comments, answering your questions, addressing your concerns and sharing your feedback. You can make your voice heard by completing and submitting the attached comment card, calling us at 1-855-802-7546 (Mon. to Fri., 8am - 6pm), visiting our web site at www.atcopipelines.com/upr or meeting with us at one of the Open Houses.

Open Houses:
Century Hotel and Casino 13103 Fort Road | Thurs. Dec. 6, 4 - 9pm
10010 12 Avenue SW | Sun. Dec. 9, 11am - 4pm

Four Points by Sheraton Edmonton Gateway

4404 Gateway Boulevard | Mon. Dec. 10, 4 - 9pm 4440 Gateway Boulevard | Tues. Dec. 11, 4 - 9pm

Delta Edmonton South Hotel

Radisson Hotel Edmonton South

Edmonton Marriott at River Cree Resort

300 East Lapotac Boulevard (Enoch, AB)

Wed. Dec. 12, 4 - 9pm

Edmonton Pipeline Map

Natural Gas Pipelines to be removed from High-Pressure Service

Proposed Relocation of High-Pressure Pipelines

Existing High-Pressure Natural Gas Pipelines

Transportation/Utility Corridor Boundaries

For a detailed view of this map

visit www.atcopipelines.com/upr

transportation/Utility Corridors (tUCs)

They were established to protect utility alignments from advancing urban development and offer a long-term solution to many of the land use challenges associated with developing major facilities in an urban setting. The TUC in Edmonton includes Anthony Henday Drive and Highway 216 (Hwy 14X).

The Transportation/Utility Corridors (TUCs) were designed to facilitate infrastructure development in Edmonton and Calgary by accommodating the provincial ring road system, major power lines, pipelines, regional water and sewer lines and telecommunication lines.

The corridors are nearly a kilometre wide and provide a safe designated space to place high-pressure natural gas pipelines.

Safety First. Always.

the Consequences of NOt Proceeding with the UPR Project

If the Urban Pipeline Replacement (UPR) Project is not approved, ATCO Pipelines will pursue a course of action to improve the standards of the existing high-pressure pipelines in their current locations. This will be carried out over two phases. The first phase requires substantial work just to prepare the lines for the testing and ongoing inspection activities that will determine their reliability. The second phase will then replace those sections of the 50 to 60-year-old pipelines that fail the testing or are deemed unreliable. Both of these phases will require major construction activities that will disturb your neighbourhoods, roadways and green spaces, as well as cause disruptions to your natural gas service as the pipelines are being tested and replaced. We estimate the cost to complete the work that prepares the pipelines for testing and ongoing inspection capabilities to be approximately $200 million. There will be additional costs incurred to replace unsuitable sections of the pipeline. The scope of the required replacements can only be determined once the testing is completed. Under the UPR Project, the existing pipelines would be either decommissioned or converted to distribution lines carrying natural gas at a much lower, and safer, pressure. While these upgrades will improve the integrity of the existing pipelines, they do not address our other primary concerns. It leaves the pipelines near where we live, work and play. Without the ability to meet the growing demand for natural gas, new pipelines may still have to be constructed in the Transportation/Utility Corridor (TUC) in the future. This is why we believe the UPR Project is the only viable solution. Building new, modern pipelines in the TUC will dramatically improve public safety by reducing the risk of an incident and protecting the pipelines from other construction activities, while also ensuring we can meet the demand for natural gas as the cities continue to grow.

Safety First. Always.

Frequently Asked Questions

What is natural gas used for? Natural gas is delivered to the vast majority of Alberta homes through a network of high-pressure and lowpressure pipelines. Natural gas fuels many of the comforts of our daily lives including heat for homes through natural gas furnaces, hot water through hot water tanks, as well as cooking appliances, clothes dryers and fireplaces. Natural gas is also used to generate the electricity that powers homes and businesses across the province. Are the existing urban high-pressure pipelines safe? The current system is operating safely. We undertake an intensive integrity program that includes cathodic protection surveys and leak inspections, as well as monitoring our lines 24-hours-a-day through our Control Centre. However, many of the pipelines were constructed 50 to 60 years ago. The new pipelines will benefit from the advancements in materials, construction practices and damage prevention technologies, and be located within the safety of the designated Transportation/Utility Corridor (TUC). What is the difference between the high-pressure pipelines used for transmission and the low-pressure lines used for distribution? High-pressure transmission pipelines are the most efficient way to transport large amounts of natural gas from producers to communities and industrial customers. Large volumes of gas in the pipeline increase the pressure in the pipeline. For residential customers, the highpressure transmission pipelines feed local distribution pipelines, managed by companies such as ATCO Gas. There are more than 9,000 kilometres of distribution pipelines running throughout Edmonton and Calgary bringing natural gas directly into your home. The distribution pipelines operate at a much lower pressure, as the amount of gas travelling through them is much less. A pipeline failure caused by a leak or hit line at these lower pressures is less likely to result in a serious incident. Why is it important to move high-pressure pipelines to the TUCs? Given the high pressures these pipelines operate at, any failure or damage to the pipeline can result in a serious incident. This presents a significant risk to public safety. If a serious incident were to occur in a densely populated area it could have tragic consequences. Why are you not moving all high-pressure pipelines to the TUCs? The lines that are not part of this project are either located in industrial areas that require high-pressure service or are already in a defined corridor and have been constructed to current standards. What will happen to the old high-pressure pipelines near my home? If the Urban Pipeline Replacement Project is approved there will be 260 kilometres of high-pressure pipelines in Edmonton and Calgary removed from high-pressure service. Where appropriate, some of these pipelines will be converted to low-pressure distribution service.

Name:

You can make your voice heard by completing the attached comment card, calling us at 1-855-802-7546 (Monday to Friday, 8am - 6pm), visiting our web site at www.atcopipelines.com/upr or meeting with us at one of the Open Houses. An important component of our submission to the Alberta Utilities Commission will be the feedback we receive from you. Online, on the phone, or in person, ATCO Pipelines is committed to listening to your comments, answering your questions, addressing your concerns and sharing your feedback.

Address:

This issue is a matter of public safety that will have a direct impact on your home and family.

We need your voice.

Phone or Email:

Please provide your comments on the Urban Pipeline Replacement Project:

I am interested in receiving updates on the project.

Thank you for providing your comments and contact information above. We value your comments. As part of our Urban Pipeline Replacement (UPR) Project we will be consulting with various stakeholders, such as yourself, and will be collecting, using and disclosing your comments, feedback and other information that you may provide to us in connection with the planning, development and regulatory review of the UPR Project. By providing your information and comments above, you are asking to participate in this process and are consenting to the collection, use and disclosure of such information for such purposes. At ATCO Pipelines, we take your privacy seriously. For more information about our privacy practices and policies, please visit www.atcopipelines.com/Privacy or contact our privacy officer at 403-245-7060.

Who is AtCO Pipelines?

For more than 100 years, ATCO Pipelines has owned and operated key pipeline infrastructure throughout Alberta that transports natural gas to utilities, power generators and major industries. With offices in Edmonton and Calgary and facilities throughout the province, ATCO Pipelines is committed to operating in a responsible and sustainable manner. Our success depends on building and maintaining a safe and reliable natural gas pipeline system, while meeting high environmental standards and developing strong community relationships. ATCO Pipelines is part of the ATCO Group of Companies an investor-owned, Alberta-based, worldwide organization with more than 8,800 employees that deliver service excellence and innovative business solutions through leading companies engaged in Structures & Logistics, Utilities, Energy and Technologies. More information can be found at www.atcopipelines.com

ATCO PiPelines 1200, 909-11Th Avenue sW CAlgAry, AlberTA T2r 1l8

Your input is Critical

ATCO Pipelines believes that safe communities must be a priority. The only way to ensure the right decision is made for your home and family is to get involved and provide your input. Online, on the phone, or in person, ATCO Pipelines is committed to listening to your comments, answering your questions, addressing your concerns and sharing your feedback.

Visit www.atcopipelines.com/upr Call 1-855-802-7546 (Mon. to Fri. 8am - 6pm) Complete and return the feedback card attached to this document Attend one of our Open Houses
ATCO Pipelines would like to talk to you in person. Listed below are a number of Open Houses we will be hosting to walk you through the details of the project. We will have our project experts there to answer any questions you may have. If these dates do not work for you and you would like to see us in person, please call us at 1-855-802-7546 and we will be happy to come and visit you at your home.

Open House Dates:

Thurs. Dec. 6, 4 - 9pm Century Hotel and Casino Sun. Dec. 9, 11am - 4pm Four Points by Sheraton Edmonton Gateway Mon. Dec. 10, 4 - 9pm Delta Edmonton South Hotel Tues. Dec. 11, 4 - 9pm Radisson Hotel Edmonton South Wed. Dec. 12, 4 - 9pm Edmonton Marriott at River Cree Resort
Note: See page 3 for Open House addresses

Safety First. Always.