Control Number: II 1111 III 1 III Item Number: 91. Addendum StartPage: 0

Transcription

1 Control Number: II 1111 III 1 III Item Number: 91 Addendum StartPage: 0

2 PUC DOCKET NO SOAH DOCKET NO APPLICATION OF ONCOR ELECTRIC DELIVERY COMPANY LLC TO AMEND A CERTIFICATE OF CONVENIENCE AND NECESSITY FOR A PROPOSED 345/138-KV TRANSMISSION LINE IN LOVING, REEVES, AND WARD COUNTIES '20I8 MAY 11 PM 1: 14 PUBLIC UTILITY cpmki,i55,11dn,:,,, FiLltiO CLERK OF TEXAS ORDER This Order addresses the application of Oncor Electric Delivery Company LLC to amend a certificate of convenience and necessity (CCN) for a proposed 345-kilovolt (kv) transmission line initially operating at 138-kV in Loving, Reeves, and Ward Counties. A hearing on the merits was held on March 1, All parties who appeared at the hearing announced their agreement or non-opposition to the selection of route 54. Those same parties subsequently requested issuance of an Order, recomrnending that route 54 be approved.' The Cornmission approves Oncor's application as amended utilizing route 54. The Commission adopts the following findings of fact and conclusions of law: I. Findings of Fact Procedural History 1. Oncor is an investor-owned electric utility providing service under CCN No On July 21, 2017, Oncor filed with the Commission an application to amend its CCN for the Riverton-to-Sand Lake transrnission line in Loving, Reeves, and Ward Counties. The project consists of a new double-circuit capable transmission line on 345-kV structures, with one circuit initially installed and operated at 138-kV, that extends frorn Oncor's I A few parties previously filed a statement of position but subsequently failed to appear at the hearing and did not offer any evidence in this matter. Those non-participating parties did not specifically join in the request made by all other parties for approval of the application based on route 54. Accordingly, the State Office of Administrative Hearings (SOAH) administrative law judge (ALJ) did not present a proposed order based on a unanimous agreement but rather issued a proposal for decision recommending approval of route 54. Except for minor changes, including the deletion of proposed finding of fact number 25 and renumbering all subsequent findings, the proposal for decision rnatched the proposed proposal for decision filed by the parties. 01 I 00001

3 PUC Docket No Order Page 2 of 15 4 Riverton switching station currently under construction in Reeves County, located along County Road 440 just east of U.S. Highway 285, to Oncor's proposed Sand Lake switching station to be located approximately six miles northeast of the City of Pecos on the northwest side of Farm-to-Market Road 3398 in Ward County. The proposed routes included in the application were 37 to 42 miles in length, depending on the route. 3. On July 21, 2017, Oncor: (1) mailed written notice of the application, including a map, to each municipality within 5 miles of the requested facilities; (2) either hand delivered or mailed written notice of the application, including a map, to each county in which the requested facilities will be located; (3) mailed notice of the application to each neighboring utility providing the same utility service within five miles of the requested facilities; (4) mailed written notice by first class mail of the application, including a map, to each landowner as stated on current county tax rolls that will be directly affected if the requested CCN amendrnent is granted; (5) mailed a copy of the application to the Office of Public Utility Counsel (OPUC); and (6) mailed a copy of the Environmental Assessment and Alternative Route Analysis (EA) supporting the application to the Texas Parks and Wildlife Department (TPWD). 4. In an affidavit filed on July 26, 2017, Oncor attested to the provision of a copy of the application to OPUC. 5. In an affidavit filed on July 26, 2017, Oncor attested to the provision of a copy of the EA supporting the application to the TPWD. 6. In an affidavit filed on August 10, 2017, Oncor attested to the provision of notice to cities, counties, neighboring utilities, the Department of Defense Siting Clearinghouse, and landowners. 7. In an affidavit filed on August 15, 2017, Oncor attested to its publication of notice of its application in newspapers having general circulation in the counties where the certificate of convenience and necessity is being requested, including Monahans News, Kermit - The Winkler County News, Odessa American, and Pecos Enterprise. 7A. In Order No. 2 issued on August 16, 2017, the Commission administrative law judge (ALJ) granted intervenor status to Ashley Korth-Juricek and Cecil J. Lee, II

4 PUC Docket No Order Page 3 of In Order No. 3 issued on August 25, 2017, the Commission ALJ found Oncor's application sufficient and approved Oncor's notice. 8A. In Order No. 4 issued on September 7, 2017, the Commission ALJ granted intervenor status to Harold J. Dehr (Trustee-Bohlander Trust); Alan Zeman, Nan Wyly Zeman, ETUX. and the Zeman Family Limited Partnership; John Hargrove, Jr.; and Larmore Oil & Gas, LLC (Joel A. Larmore). 9. In a letter filed on September TPWD made various comments and recommendations, including avoiding the use of links El, E2, E3, M2, and R. 10. In an amended affidavit filed on September 26, 2017, Oncor attested to its publication of notice in newspapers having general circulation in the counties where the CCN is being requested. 10A. In Order No. 5 issued on September 29, the Commission All granted intervenor status to Mark Delgado; HB213 Ranch Interests, LLC; WJB Texas Management, LLC; and William H. Betts, Jr.; James Kern; Wellington Soohoo; DCP Midstream, LP; and Glenn Rogers (Co-Trustee of the Helen Sue Donnell Intervivos Trust). 11. In its order of referral issued on October , the Commission referred this proceeding to SOAH. 12. In SOAH Order No. 1 issued on October , the SOAH ALJ provided for various case management procedures and provided notice of a prehearing conference and technical conference. 13. In its preliminary order issued on October 12, 2017, the Commission specified the issues to be addressed. 14. On November 1, 2017, a prehearing conference was held in Austin, Texas, and Brandal Noe and Tyesonn Noe were granted intervenor status. 15. In SOAH Order No. 2 issued on November 2, 2017, the SOAH ALJ memorialized the prehearing conference, adopted a procedural schedule, provided notice of the hearing on the merits and prehearing conference, and addressed motions to intervene and general procedures

5 PUC Docket No Order Page 4 of On January 5, 2018, Commission Staff filed objections to and motions to strike portions of prefiled direct testimony of three intervenors: Alan Zeman, Nan Wyly Zeman, and the Zeman Family Limited Partnership (together, the Zemans); Oxy USA, Inc. and Oxy USA WTP LP (together, Oxy); and William H. Betts, Jr., HB 213 Ranch Interests, LLC, and WHB Texas Management, LLC (together, Betts). 17. On January 11 and 12, 2018, the Zemans, Oxy, and Betts filed responses to Commission Staff s motion to strike. 18. On February 9, 2018, SOAH Order No. 3 was issued granting intervenor status to Oxy and dismissing the following intervenors who did not file testimony or a statement of position: Cecil J. Lee, II; Larmore Oil & Gas, LLC; Mark Delgado; Wellington Soohoo; James Kern; and DCP Midstream, LP. 19. On February 22, 2018, Oncor filed an amended application clarifying certain provisions contained in its original application. 20. On February 28, 2018, Brandal Noe and Tyesonn Noe withdrew from the proceeding. 21. The remaining intervenors in this case are: the Zemans; Oxy; Betts; Harold J. Dehr, trustee of the Bohlander Trust (Dehr); John Hargrove, Jr.; Glenn Rogers, co-trustee of the Helen Sue Donnell Intervivos Trust; and Ashley Korth Juricek. 22. On March 1, 2018, a second prehearing conference was held in Austin, Texas, followed by the hearing on the merits. The following parties attended the hearing on the merits: Oncor, Commission Staff, the Zemans, Betts, Oxy, and Dehr. 23. At the hearing, Commission Staff s motion to strike was overruled, certain evidence was admitted into the record, and witnesses for Oncor and Commission Staff presented live testimony. 24. All parties who attended the hearing on the merits indicated on the record that they either support or do not oppose route The record closed on March 16, 2018, with the filing by Oncor of the Joint Proposed Proposcd. for Decision, which was supported by all parties appearing at the hearing, specifically Commission Staff, the Zemans, Oxy, Betts, and Dehr

6 PUC Docket No Order Page 5 of 15 Application and Project Description 26. The project consists of a new double-circuit capable transmission line on 345-kV structures. with one circuit initially installed and operated at 138-kV, extending from Oncor's Riverton switching station currently under construction to its proposed Sand Lake switching station. 27. Work at the switching stations will also be required at both endpoints. 28. Oncor filed one recomrnended route and 22 alternative routes. 29. The application's 23 geographically diverse routes are an adequate number of reasonably differentiated alternative routes to conduct a proper evaluation. 30. The routes are proposed to use 160 feet of right-of-way (ROW). 31. Oncor will acquire 60 feet of additional ROW parallel and adjacent to the approved route for future use. Need 32. The transmission line is needed for a number of reasons. including: to address reliability violations; to serve load growth driven primarily by increased oil- and gas-related activity; to extend transmission service to an area without it; to irnprove the level of the voltage entering new substations; and to improve substation transformer- and distribution-feeder performance at existing substations. 33. Currently, the area is served by Oncor's Wink-to-Culberson and Yucca Drive-to-Culberson 138-kV transmission lines. The aggregate historical load on these lines, the Culberson Loop, increased from 29 MW in 2012 to 205 MW in At the time of the application, the aggregate load was estimated to exceed 400 MW in 2018 and exceed 500 MW in By the time Oncor filed its direct testimony, those estimated loads had increased to 677 MW for 2018 and 839 MW by Oncor's estirnates only reflected load increases it confirmed based on signed customer agreements. 35. The Electric Reliability Council of Texas (ERCOT) regional planning group reviewed and endorsed the transmission line as a Tier 2 transmission project

7 PUC Docket No Order Page 6 of ERCOT's power fiow studies conducted during its independent review of the project found voltage violations under established reliability criteria. 37. ERCOT also recommended building the transmission line at 345-kV standards to meet long-term load growth in the area and support voltage conditions. 38. The transmission line will also serve load growth by establishing transmission service for new substations in the project area, such as Oncor's Mentone SW Substation, and by improving distribution feeder performance for existing customers. 39. Approval of the transrnission line on route 54 will also allow Oncor to establish a new Mentone SW Substation, as recomrnended by ERCOT, near the community of Mentone without the need to file an additional CCN application to build an additional transmission line to connect the Mentone SW Substation to the this transmission line. 40. Construction of this transmission line at 345-kV standards will (i) provide synergies with the upcoming Far West Texas group of projects that ERCOT's Board of Directors recently endorsed, as well as others currently being studied, (ii) allow for future operation of this line at 345-kV, and (iii) support future 345-kV transmission systern improvements in the area. 41. Other alternatives to the transmission line were considered and rejected, because they failed to provide the same electrical, reliability, or cost advantages. These alternatives included the rebuilding of existing transmission lines, construction of new radial transmission lines, and use of dynamic reactive devices, among others. 42. There is no distribution alternative to the transmission line. 43. The transmission line will facilitate robust wholesale competition. 44. The transmission line is needed for reliability and to serve load growth in the area, and it will improve both transmission and distribution service in the project area. 44A. It is reasonable and appropriate for a CCN order not to be valid indefinitely because it is issued based on the facts known at the time of issuance

8 PUC Docket No Order Page 7 of 15 Route 45. To assist Oncor in its route selection process, Oncor retained Halff Associates, Inc. to prepare an EA. 46. The transmission line will be generally constructed on Oncor's standard 345-kV doublecircuit steel lattice V-towers. 47. As described in the EA, route 54 consists of Links A. All, D1, D2, D3. H, Q, W, Zl. Z3. Z4, and Z DELETED. 49. Route 54 is the best alternative when all routing factors are considered. 50. All parties who attended the hearing on the merits support or do not oppose route According to the applicable county tax data used to prepare the application and maps, route 54 does not cross Betts properties in sections 20 and 24 of block 54 in Reeves County. Community Values 52. DELETED. 53. Oncor held a public participation meeting on February 15, 2017, at the Reeves County Convention Center, in accordance with 16 TAC A total of eight people signed in as attending the public participation meeting. 55. Two people attending the meeting completed questionnaires and submitted them to Halff for consideration. 56. Based on information received by Halff frorn the public involvement program, the locations of portions of seven existing preliminary route links were modified, six new route links were added, and two route links were deleted. 57. Information from the public participation meeting and from local, state, and federal agencies was considered and incorporated into the selection of recommended and alternative routes by Oncor

9 PUC Docket No Order Page 8 of Route 54 does not significantly impact or adversely affect community values, recreational and park areas, historical and aesthetic values, or the environmental integrity of the area traversed by route There are no airports registered with the Federal Aviation Administration with runways more than 3,200 feet in length within 20,000 feet of the centerline of route There are no airports registered with the Federal Aviation Administration with runways less than 3,200 feet in length within 10,000 feet of the centerline of route There is one private airstrip located within 10,000 feet of the centerline of route Route 54 best meets the cornmunity values of the area. Recreational and Park Areas 63. Route 54 will not significantly impact the use or enjoyment of parks and recreational facilities. 64. Route 54 does not cross any parks or recreational areas. 65. No parks or recreational areas are within 1,000 feet of the centerline of route 54. Historical Values 66. No adverse effects to archaeological or historical resources are anticipated as a result of the construction of the transmission line. 67. There is one recorded cultural resource site crossed by route 54, and there are two such sites located within 1,000 feet of route Of the approximately 204,748 feet crossed by route 54, only 5,625 feet pass across areas of high historical and archaeological site potential. Aesthetic Values 69. The transmission line will not significantly impact aesthetic values. 70. Aesthetic impacts of the transmission line have been considered and minimized to the extent possible. 71. None of route 54 lies within the foreground visual zone of a park or recreational area

10 PUC Docket No Order Page 9 of Of the approximately 204,748 feet crossed by route 54, an estimated 93,560 feet lie in the foreground visual zone of federal and state highways. Environmental Integrity 73. The EA prepared by Halff analyzed the possible impacts of the transmission line on numerous different environmental factors. 74. Oncor and Halff appropriately performed an evaluation of the impacts of the transmission line on the environment, including endangered and threatened species. 75. Route 54 will not cross any known habitat for endangered or threatened species. 76. Oncor stated that it will coordinate with the U.S. Fish and Wildlife Service (USFWS) if threatened or endangered species habitats are identified during field surveys. 77. Route 54 is unlikely to affect federally-listed animal species, and any such effect will be mitigated by Oncor's standard practices or as required by the Endangered Species Act. 78. Construction of the transmission line on route 54 will not significantly affect existing land uses or geological, hydrological, or wetland resources of the area. Renewable Energy Goals 79. The transmission line will not adversely affect the goal for renewable energy development established in PURA (a). Engineering Constraints 80. DELETED. 81. DELETED. 82. DELETED. Costs 83. The total estimated cost for the routes listed in the application ranges frorn $47,483,000 to $55,758,000, excluding station costs. Route 54 is estimated to cost approximately $49,868,000, excluding station costs

11 PUC Docket No Order Page 10 of Approximately $8,750,000 in station costs associated with the facilities at the Riverton switching station and Sand Lake switching station are also included in the transmission line. Including these costs, route 54 is estimated to cost $58.618,000. Compatible Corridors 85. None of the filed routes, including route 54, utilizes existing, Oncor-owned ROW. 86. Route 54 is 204,748 feet long and parallels existing compatible ROW for 96,615 feet. 87. Route 54 utilizes or parallels existing compatible ROW and apparent property boundaries for approximately 47.2 percent of its length. Prudent Avoidance 88. Prudent avoidance is defined in 16 TAC (a)(6) as the limiting of exposures to electric and magnetic fields that can be avoided with reasonable investments of money and effort. 89. DELETED. 90. Over its approximately mile length, route 54 has one habitable structure within 500 feet of its centerline. 91. Route 54 complies with the Commission's policy of prudent avoidance. TPWD's Written Comments and Recommendations 92. On September 25, 2017, TPWD filed its comment letter regarding the transmission line. 93. TPWD's comment letter addressed issues relating to impacts on ecology and the environment but did not consider the other factors the Commission and utilities must consider in CCN applications. 94. Oncor must comply with all environmental laws and regulations, including those governing threatened and endangered species. 95. Oncor stated that it will comply with all applicable regulatory requirements in constructing the transmission line, including any applicable requirements under section 404 of the Clean Water Act

12 PUC Docket No Order Page 11 of In preparing the EA, Halff reviewed and took into account TPWD's previous correspondence in this docket. 97. Halff relied on habitat descriptions from various sources, including the Texas Natural Diversity Database and other sources provided by TPWD, along with observations from field reconnaissance, to determine whether habitat for some species is present in the study area. 98. Oncor will coordinate with USFWS and TPWD if threatened or endangered species habitats are identified during field surveys. 99. DELETED Environmental permitting and mitigation measures are determined after a route is approved by the Commission and on-the-ground surveys are completed for the route. Should construction impact federally-listed species or their habitat or impact water under the jurisdiction of the United States Army Corps of Engineers (USACE) or the Texas Cornmission on Environmental Quality (TCEQ). Oncor will coordinate permitting and any required mitigation, as appropriate, with the USFWS. USACE, and TCEQ The standard mitigation requirements included in the ordering paragraphs in this Order, coupled with Oncor's current practices, are reasonable measures for a utility to undertake when constructing a transmission line and are sufficient to address TPWD's comments and recommendations. 11. Conclusions of Law 1. Oncor is an electric utility as defined in PURA and (6). I A. The authority granted by this Order is limited to a period of seven years from the date the order is signed unless, before that time, the transmission line is commercially energized. 2. The Commission has jurisdiction over this matter under PURA , , , , , and

13 PUC Docket No Order Page 12 of SOAH has jurisdiction over this proceeding under PURA and Texas Government Code Oncor provided proper notice of the application in compliance with PURA and 16 TAC 22.52(a). 5. This docket was processed in accordance with the requirements of PURA, the Administrative Procedure Act,3 and Commission rules. 6. Approval of the transmission line using route 54 is necessary for the service. accommodation, convenience, and safety of the public within the meaning of PURA (a), taking into consideration the factors set out in PURA and 16 TAC Route 54 complies with all aspects of PURA, including , 16 TAC , and the Commission's policy of prudent avoidance. 8. The application, as amended, is reasonable and should be approved. 9. DELETED. III. Ordering Paragraphs In accordance with these findings of fact and conclusions of law, the Commission issues the following orders: 1. Oncor's CCN No is amended and Oncor's application, as amended, to build a new double-circuit capable 345-kV transmission line, with one circuit initially installed and operated at 138-kV, from the Riverton switching station to the Sand Lake switching station is approved. The approved route for the transmission line is Oncor's route 54 as described in the EA. 2. Oncor shall conduct surveys to identify pipelines that could be affected by the transmission line, if not already completed, and coordinate with pipeline owners in modeling and 2 Tex. Gov't Code Ann (West 2016). s Tex. Gov't Code Ann ,902 (West 2016 & Supp. 2017)

14 PUC Docket No Order Page 13 of 15 analyzing potential hazards because of alternating-current interference affecting pipelines being paralleled. 3. In the event Oncor encounter any archaeological artifacts or other cultural resources during transmission line construction, work shall cease immediately in the vicinity of the resource. Oncor shall report the discovery to the Texas Historical Commission and take action as directed by the Texas Historical Commission. 4. Oncor shall follow the procedures outlined in the following publication for protecting raptors: Suggested Practices for Avian Protection On Power Lines, The State of the Art in 2006, Avian Power Line Interaction Committee (APLIC), 2006, the Avian Protection Plan Guidelines, APLIC, 2005, and Reducing Avian Collisions with Power Lines: State of the Art in 2012, APLIC, Oncor shall take precautions to avoid disturbing occupied nests and take steps to minimize the impact of construction on migratory birds, particularly during nesting season. 5. Oncor shall exercise extreme care to avoid affecting non-targeted vegetation or animal life when using chemical herbicides to control vegetation within the ROW. Herbicide use shall comply with rules and guidelines established in the Federal Insecticide, Fungicide and Rodenticide Act and with Texas Department of Agriculture regulations. 6. Oncor shall rninimize the amount of flora and fauna disturbed during construction of the transmission line, except to the extent necessary to establish appropriate ROW clearance for the transmission line. In addition, Oncor shall re-vegetate using native species and shall consider landowner preferences in doing so. Furthermore, to the maximum extent practical, Oncor shall avoid adverse environrnental impact to sensitive plant and animal species and their habitats, as identified by TPWD and the USFWS. 7. Oncor shall implement erosion control rneasures as appropriate. Also, Oncor shall return each affected landowner's property to its original contours and grades unless otherwise agreed to by the landowner or the landowner's representative. Oncor shall not be required to restore original contours and grades where a different contour or grade is necessary to ensure the safety or stability of the transmission line's structures or the safe operation and maintenance of the line

15 PUC Docket No Order Page 14 of Oncor shall use best management practices to minimize the potential impact to migratory birds and threatened or endangered species. 9. Oncor shall cooperate with directly affected landowners to implement minor deviations in the approved route to minimize the impact of the transmission line. Any minor deviations in the approved route shall directly affect only landowners who received notice of the transmission line in accordance with 16 TAC 22.52(a)(3) or have waived notice and agreed to accept the transmission line across their property, and shall directly affect only those landowners that have agreed to the minor deviation, excluding public ROW. 10. Oncor shall not be permitted to deviate from the approved route in any instance in which the deviation would be more than a minor deviation without further amending its CCN. 11. Oncor shall update the reporting of the transmission line on its monthly construction progress report prior to the start of construction to reflect the final estimated cost and schedule in accordance with 16 TAC 25.83(b). In addition, Oncor shall provide final construction costs, with any necessary explanation for cost variance, after completion of construction and when all charges have been identified. 11A. Entry of this Order does not indicate the Commission's endorsement or approval of any principle or methodology that may underlie the agreement among the parties participating in the hearing on the merits. Entry of this Order shall not be regarded as a binding holding or precedent as to the appropriateness of any principle or methodology underlying the agreement. 12. All other rnotions any other requests for general or specific relief, if not expressly granted, are denied

16 PUC Docket No Order Page 15 of Signed at Austin, Texas the 1 \ day of May PUBLIC UTILITY COMMISSION OF TEXAS,017piAi(g/abt DEANN T. WALKER, CHAIRMAN ARTHUR C. D'ANDREA, COMMISSIONER W2013 q \cadrnnorders\fmal\47000\47368fo docx

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