1- Verified Direct Testimony Of
Total Page:16
File Type:pdf, Size:1020Kb
West Fork Wind, LLC Cause No. _______45047 Petitioner’s Exhibit 1 VERIFIED DIRECT TESTIMONY OF ZACHARY MELDA 1 I. INTRODUCTION 2 Q1. Please state your name and business address. 3 A. My name is Zachary Melda, and my business address is 700 Universe Blvd., Juno Beach, 4 Florida, 33408. 5 Q2. By whom are you employed and in what capacity? 6 A. I am employed by NextEra Energy Resources, LLC (“NextEra”) and have been delegated 7 responsibility for the development of the West Fork Wind Facility (the “Project” or the 8 “Wind Facility”) by West Fork Wind, LLC (“West Fork” or “Petitioner”). I am a Project 9 Manager for NextEra and oversee the development of wind projects including the 10 development of the Wind Facility. The Petitioner is a Delaware limited liability company 11 and is a wholly-owned indirect subsidiary of NextEra. NextEra is headquartered in Juno 12 Beach, Florida. 13 Q3. What is your educational background? 14 A. I have a Bachelor of Science, Civil Engineering from Southern Polytechnic State 15 University and a Master of Business Administration, Operations Management and 16 Supervision from Georgia Institute of Technology. 17 Q4. Please describe your employment history. 18 A. I have worked for NextEra since May 2016 as a Project Manager for Development. My 19 educational and professional background is set forth on Petitioner’s Attachment ZM-1. -1- West Fork Wind, LLC Cause No. _______ Petitioner’s Exhibit 1 1 Q5. Have you previously testified before government bodies or agencies? 2 A. Yes, I submitted testimony in support of a petition for jurisdictional determinations on 3 behalf of Jordan Creek Wind Farm, LLC, another NextEra subsidiary, in Cause No. 4 44978. I have testified before the Public Service Commission of West Virginia, on 5 behalf of Mt. Storm Wind Force, LLC, an indirect wholly owned subsidiary of NextEra, 6 in Case No. 16-1117-E-CS-PC. I have also testified before several County and Township 7 level government bodies in Indiana and West Virginia. 8 Q6. What is the purpose of your direct testimony in this proceeding? 9 A. The purpose of my direct testimony is to discuss the relief sought by Petitioner in this 10 proceeding and to provide the Commission with information regarding the Petitioner and 11 its proposed wind energy generation project. 12 Q7. Please describe NextEra. 13 A. NextEra is a Delaware limited liability corporation and an indirect wholly-owned subsidiary 14 of NextEra Energy, Inc., a publicly traded holding company (NYSE ticker symbol: NEE). 15 NextEra is a national renewable energy marketing and development company that, through 16 its affiliates, owns and operates over 19,000 MW of electric generating capacity, which 17 includes 110 wind projects in 19 states and Canada with more than 12,400 MW of wind 18 generation in operation. Petitioner is an indirect wholly owned subsidiary of NextEra. An 19 organization chart depicting West Fork Wind, LLC within the corporate structure of 20 NextEra is attached as Petitioner's Attachment ZM-2. 21 Q8. What relief does Petitioner request of the Commission in this Cause? 22 A. Petitioner is requesting that the Commission decline to exercise jurisdiction pursuant to 23 Ind. Code § 8-1-2.5-5 over Petitioner’s construction, ownership and operation of, and any -2- West Fork Wind, LLC Cause No. _______ Petitioner’s Exhibit 1 1 other activity in connection with the Project, and to determine that the public interest will 2 be served by the Commission’s declining to exercise jurisdiction over Petitioner. 3 4 II. PROJECT BACKGROUND 5 6 Q9. Please describe the proposed Wind Facility. 7 A. The Wind Facility is a proposed wind generation facility that is anticipated to have the 8 capability of generating up to approximately 102 MW of electricity from approximately 9 41 turbines with an expected nameplate capacity of 2.5 MW. The turbines will have 10 rotor diameters greater than 100 meters and will use tower heights ranging from 80 11 meters to 89 meters. The combination of the tower heights, rotor diameter and wind 12 resource will result in a Net Capacity Factor that approaches 40 percent. Construction of 13 the Project is expected to commence in 2018. 14 The Project is located entirely in unincorporated areas of Fayette County, Indiana 15 (approximately 40 miles east of Indianapolis). The Project will be located across parts of 16 approximately 14,000 acres to which Petitioner has consensually obtained land rights. A 17 preliminary site map depicting the approximate turbine and facility locations for the 18 Project is attached as Petitioner’s Attachment ZM-3. 19 The Project was initially conceived as a 150 MW project that would also be 20 located in Henry and Rush Counties, in addition to Fayette County. Following further 21 analysis of wind conditions and further discussions with Henry and Rush County 22 officials, NextEra resized the Project to 102 MW and modified the point of 23 interconnection, thereby eliminating the need to place turbines or any other Project 24 infrastructure in Henry or Rush Counties. -3- West Fork Wind, LLC Cause No. _______ Petitioner’s Exhibit 1 1 Q10. Is the Project similar to other electric generating plants for which the Commission 2 has previously declined to exercise jurisdiction? 3 A. Yes. The Commission also issued orders declining much of its jurisdiction pursuant to 4 Ind. Code § 8-1-2.5-5 over electric generating facilities proposed by several other wind 5 project entities. See, e.g., In the Matter of the Petition by Benton County Wind Farm, 6 LLC, Cause No. 43068 (Dec. 6, 2006); In the Matter of the Petition by Fowler Ridge 7 Wind Farm, LLC, Cause No. 43338 (Nov. 20, 2007) (and subsequent related Cause Nos. 8 43443 and 43444); In the Matter of the Petition by Hoosier Wind Project, LLC, Cause 9 No. 43484 (Oct. 1, 2008); In the Matter of Meadow Lake Wind Farm, LLC, Cause No. 10 43602 (Feb. 18, 2009) (and subsequent related Cause Nos. 43678, 43758, 43759, 43876); 11 In the Matter of NextEra Energy Bluff Point, LLC, Cause No. 44299 (Apr. 3, 2013); In 12 the Matter of the Petition by Wildcat Wind Farm II, LLC, Cause No. 44335 (July 3, 13 2013); In the Matter of the Petition by Headwaters Wind Farm, LLC, Cause No. 44385 14 (Sept. 19, 2013); and In the Matter of the Petition by Jordan Creek Wind Farm, LLC, 15 Cause No. 44978 (Dec. 20, 2017). This Commission has also in recent years issued 16 several other orders declining much of its jurisdiction over electric generating facilities 17 proposed by independent power producers. Typical of these other orders are those issued 18 to Tenaska Indiana Partners, L.P. (Cause No. 41823) and Duke Energy Vermillion, LLC 19 (Cause No. 41388). The proposed Wind Facility is similar to these electric generating 20 facilities in the sense that it will be a generator of electricity for sale in the wholesale 21 power market, and it represents an increase in the amount of electricity generated in 22 Indiana. -4- West Fork Wind, LLC Cause No. _______ Petitioner’s Exhibit 1 1 Q11. How will the Project generate electricity? 2 A. The Project will generate electricity using wind turbine generators mounted on steel 3 towers. The wind turbine generator voltage of approximately 690 volts will be stepped 4 up to 34.5 kV by pad mount transformers located at or near each wind turbine. 5 Electricity produced by the turbines will then be delivered to an electric substation via 6 34.5 kV power collection lines, which will be located substantially underground. The 7 electricity will then be collected at a centrally located “collector substation” and stepped 8 up to 138 kV. From there, the electricity will be transmitted at 138 kV through an 9 overhead transmission line to the point of interconnection with the existing 138 kV power 10 grid. An interconnection switchyard will be constructed at that location to transfer the 11 power to the existing grid. 12 Q12. Have the component pieces to construct the Project been secured? 13 A. Approximately 5 percent of the total components have been procured; however, existing 14 lead times for all additional components in the wind component sector should not hinder 15 the Project. 16 Q13. How does the production tax credit (the “PTC”) from wind energy affect the 17 Project? 18 A. The PTC has been extended by Congress as part of the Consolidated Appropriations Act, 19 2016 with an expiration date of December 31, 2019, for wind facilities commencing 20 construction. The extension of the PTC will be an aid in expanding the market for the 21 electricity produced by the Project. That market, however, will exist even without the 22 PTC as electric utilities continue to diversify their generation portfolios and look for -5- West Fork Wind, LLC Cause No. _______ Petitioner’s Exhibit 1 1 alternatives to fossil generation. NextEra’s track record with developing successful wind 2 energy projects will enhance the Petitioner’s ability to sell the Project’s electrical output. 3 4 III. PROJECT SITE 5 Q14. What information or exhibits have been collected to demonstrate the 6 appropriateness of the site? 7 A. Petitioner has, through qualified consultants, undertaken several studies to examine the 8 feasibility of the Project. Based upon our due diligence and permitting work to date, no 9 environmental issues are foreseen that would delay or prevent the permitting and 10 construction of the Project within the timeline discussed in this testimony. 11 For example, in 2010, Petitioner engaged an environmental consultant, Atwell, 12 LLC (“Atwell”), to conduct a Desktop Natural Features Analysis and Drainage Review, 13 which is attached as Petitioner’s Attachment ZM-4.