APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18
ARKANSAS PUBLIC SERVICE COMMISSION
IN THE MATTER OF THE APPLICATION OF ) ARKANSAS ELECTRIC COOPERATIVE ) CORPORATION FOR A CERTIFICATE OF ) ENVIRONMENTAL COMPATIBILITY AND ) DOCKET NO. 19-023-U PUBLIC NEED TO CONSTRUCT, OWN AND ) ORDERNO. 4 OPERATE CERTAIN TRANSMISSION FACILITIES ) IN VAN BUREN AND CLEBURNE COUNTIES ) AND VERIFIED PETITION FOR NAVIGABLE ) WATER CROSSING )
ORDER
On July 22, 2019, Arkansas Electric Cooperative Corporation ("AECC") filed its
Application for a Certificate of Environmental Compatibility and Public Need
("CECPN") pursuant to Ark. Code Ann. § 23-18-501 et seq. and Rules 6.03 and 6.06 of the Commission's Rules ofPractice and Procedure (RPPs") to construct, own, and operate certain transmission facilities in Van Buren County and Cleburne County,
Arkansas and a Verified Petition for Navigable Water Crossings pursuant to Ark. Code
Ann.§ 23-3-501 et seq. (collectively the "Application"). With the Application, AECC filed the Direct Testimony of Curtis Q. Warner, Jenni Sudduth, and Forest Kessinger.
On September 13, 2019, AECC filed the Supplemental Testimony of its witnesses Warner and Sudduth. IJ Order No. 2 adopted a procedural schedule with a Hearing scheduled for
November 21, 2019. Pursuant to that schedule on September 26, 2019, Jeff Roberts,
Senior Electrical Engineer, filed Direct Testimony and a Direct Exhibit on behalf of the
Staff ("Staff') of the Arkansas Public Service Commission ("APSC or "Commission"). He APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18 Docket No. 19-023-U Order No. 4 Page 2 of 34 recommended approval of the CECPN with certain conditions. His Direct Testimony is discussed in more detail later in this Order.
In its Application, AECC proposes to construct, m.vn, and operate a major utility facility consisting of 1) a transmission switching station located adjacent to the existing
Heber Springs North Distribution Substation, located in Cleburne County, Arkansas, and 2) a 25.8-mile, double circuit 161/69 kV transmission line, located in Van Buren and
Cleburne Counties, Arkansas, together referred to as the "Proposed Facilities."
The Application Exhibits are outlined in the table below.
Table 1 Application Exhibits Exhibit Number Description AECC-1 Map indicating general location of project AECC-2 Map of area electrical network AECC-3 Aerial photographs AECC-4 List of landowners AECC-5 Copy of landowner notice AECC-6 Proof of Service AECC-7 Environmental Impact Statement AECC-8 Application to Army Corps of Engineers AECC-9 Compliance Checklist
On August 21, 2019, one landowner whose land was proposed to be traversed, W.
Gary Gore, filed a Notice of Limited Appearance and Verified Statement regarding the expansion of the right-of-way on his property for the proposed project. APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18
Docket No. 19-023-U Order No. 4 Page 3 of 34
As noted above on September 13, 2019, AECC filed the Supplemental Direct
Testimony and Exhibits of witnesses Curtis Q. Warner and Jenni Sudduth. Mr. Warner presents supplemental information about AECC's correspondence with the Tribes that are interested in the location of the Proposed Facilities. Those tribes are the Cherokee
Nation, the Osage Nation, the Quapaw Nation, the Shawnee Tribe, and the United
Keetoowah Band of Cherokee Indians. Mr. Warner also provides correspondence that he has received from the Arkansas Department of Health. Ms. Sudduth provides supplemental information concerning notice.
On October 9, 2019, Order No. 3 waived the Hearing and stated a ruling would be made on the Evidentiary Record.
The 25.8-mile transmission line, located in Van Buren and Cleburne Counties in
Arkansas, will consist of a double circuit 161/69 kV transmission line extending from the proposed transmission switching station ("Switching Station") located in Heber Springs,
Cleburne County, Arkansas to the Partain Transmission Substation ("Partain"),1 located in Van Buren County, Arkansas. The 161 kV transmission line will be constructed with
1272 MCM ACSR conductors capable of carrying 304 MW ("summertime conditions").
The 69 kV transmission line will be constructed with 795 MCM ACSR conductors capable of carrying 98 MW ("summertime conditions"). 2 The Switching Station will be comprised of a ring bus configuration with four (4) circuit breaker positions. Two (2) of the breaker positions will serve as the in-and-out connection to Entergy Arkansas's
1 A CECPN for the construction of the Partain Transmission Substation and associated transmission line was approved by Order No. 4 in Docket No. 18-025-U. 2 Direct Testimony of AECC witness Curtis Q. Warner, p. 20 , lines 13-16. APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18 Docket No. 19-023-U Order No. 4 Page 4 of 34
("Entergy") existing Quitman-to-Greers Ferry 161 kV Transmission Line. One breaker position will serve the existing Heber Springs North Substation, located just across Rock
Products Road from the proposed Svvitching Station. The final breaker position will serve the proposed 161 kV transmission line.3 The 69 kV portion of the proposed double circuit transmission line will be terminated at the east end of the line at the existing
Heber Springs North 161-69 kV Distribution Substation.
I The 69 kV transmission line will replace the existing 69 kV facilities that are currently owned and operated by First Electric Cooperative Corporation ("FECC").
Replacement of this 69 kV transmission line will provide for increased reliability and circuit capacity than presently exists.
The double circuit 161/69 kV transmission line begins at the existing Partain
Transmission Substation, and extends generally east to the proposed Switching Station located in Heber Springs, Arkansas.4 The route will cross Greers Ferry Lake at two (2) locations, Middle Fork Little Red River and Devils Fork Little Red River.s
The first 10.6 miles of the 161/69 kV double circuit transmission line will utilize the existing 69 kV transmission corridor that is within a 100-foot right-of-way ("ROW").
The remaining 15.2 miles of the 161/69 kV double circuit transmission line, with a fev,r exceptions, will follow the existing 69 kV corridor, but will require an additional 25 feet of ROW, as the existing ROW is typically only 75 feet in width.6
3 Direct Testimony of Curtis Q. Warner, p. 5, line 21 through p. 6, line 7. 4 Application Exhibit AECC-2, Partain to Heber Springs North transmission line, p. 15. sApplication Exhibit AEEC-3, Map 4 of 36 (Crossing 1), p. 21, and Map 12 of 36 (Crossing 2), depicting the navigable water crossings, p. 29. 6 Direct Testimony of Curtis Q. Warner, p. 4, lines 8-19. APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18 Docket No. 19-023-U Order No. 4 Page 5 of 34 The exception to proposed 161/69 kV double circuit transmission following the existing 69 kV transmission corridor occurs to avoid a business northeast of Heber
Springs, Arkansas. This is a slight re-alignment and will require new 100-foot wide
ROW.7
AECC indicates that its preferred route is Route A, a portion of which crosses
Federal lands. Depending on AECC's on-going negotiations with the Federal
Government, it may have to choose the Preferred Route A with Bypass B to avoid traversing the Federal lands.8 According to witness Warner, should Bypass B be required, the total amount of additional ROW required will increase from 46 to 56 acres.9 Staff witness Roberts testified that notice was given to landowners in the path of
Bypass B with perhaps the exception of parcel 209A. On October 10, 2019, AECC filed proof that the owner of Parcel 209A had been properly and timely served '""1th notice.
Bypass B will not material change the length or the cost of the Proposed Facilities. The
Proposed Facilities have an anticipated in-service date of February, 2023.10
Staff witness Roberts testified that his evaluation of AECC's CECPN Application
,,vas based upon the Utility Facility Environmental and Economic Protection Act,11 previous Commission Orders, the RPPs and Special Rules - Electric, and the testimony and exhibits filed by AECC in support of its Application.
Staff witness Roberts testified that previous Commission Orders, namely Order
No. 12 issued in Docket No. 89-164-U and Order No. 5 issued in Docket No. 91-182-U,
7Application Exhibit AECC-3, Map 31of36, p. 48. s Application Exhibit AECC-3, Maps 33 and 34, pp. 50-51. 9 Direct Testimony of Curtis Q. Warner, p. 9, lines 14-19. 10 Application, p. 3, ii 3. 11 Ark. Code Ann. § 23-18-501 et seq. APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18
Docket No. i9-023-U Order No. 4 Page 6 of 34 were used as the basis for his evaluation to determine if the proposed route is reasonable.
Pursuant to Ark. Code Ann. § 23-18-519(b), there are a number of findings and determinations that the Commission must make before it may grant a CECPN for a major utility facility. With regard to a major utility transmission line and associated substation facilities, the Commission must find:
• The basis of the need for the facility; • That the facility will serve the public interest, convenience, and necessity; • The nature of the probable environmental impact of the facility; • That the facility represents an acceptable adverse environmental impact; • The nature of the probable economic impact of the facility; • That the financing method represents an acceptable economic impact; • That the facility is not inconsistent with known plans of other electric systems serving the state that have been filed with the Commission; • The location of the facility as proposed conforms as closely as practicable to applicable state, regional, and local laws; • The interstate benefits expected to be achieved by the facility located within a national interest electric transmission corridor; and, • That any conditions proposed to be attached to the certificate for a facility located within a national interest electric transmission corridor do not interfere with reduction of electric transmission congestion in interstate commerce or render the project economically infeasible. Mr. Roberts' Direct Testimony addressed the basis for making these findings, as well as other statutory requirements.
Staff witness Roberts testified that AECC provided a general description of the location and type of major utility facility in compliance with Ark. Code Ann. § 23-18- APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18
Docket No. 19-023-U Order No. 4 Page 7 of 34 511(1). According to AECC witness Warner, the Switching Station will be built on a nine-acre site recently purchased by AECC. The location of the Switching Station is described as being in the Northeast Quarter of Section 13, Township 10 North, Range 10
West, approximately two (2) miles northwest of the center of Heber Springs, Arkansas.
The 911 address of the Switching Station has been as assigned as 365 Rock Products
Road. 12
The 25.8-mile, 161/69 kV double circuit transmission line will begin at the
Partain Transmission Substation13 in Van Buren County and extends eastwardly cross111g Greers Ferry Lake. From there the transmission line turns 111 east/southeastwardly direction to its terminus, the Switching Station located 111
Cleburne County.14
To comply with Ark. Code Ann. § 23-18-511(2), AECC provided a description of alternate locations. AECC witness Warner states, "[m]ost alternative routes were longer which increased cost and impact. Any alternative route that was shorter cut through more developed areas and/ or required longer lake crossings. Some of the alternative routes required cutting across open fields in the flatter, more developed areas of the county, or through commercial timber property. Another concern with each alternative route was the requirement to establish new access points and landowner contacts."1s
Concerning the need and reasons for construction requirements of Ark. Code
Ann. § 23-18-511(3), the Application stated that "[b]ased on knowledge and belief, there
12 Direct Testimony of Curtis Q. Warner, p. 3, line 15 through p. 4, line 2. 13 A CECPN for the construction of the Partain Transmission Substation and associated transmission line was approved by Order No. 4, in Docket No. 18-025-U. 14 Direct Testimony of Curtis Q. Warner, p. 4, lines 3-7. 1s Direct Testimony of Curtis Q. Warner, p. 15, line 19 through p. 16, line 4. APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18 Docket No. 19-023-U Order No. 4 Page 8 of 34 are no prior commission actions in an energy resource declaration-of-need preceding that determined the need for additional energy supply or transmission resources relevant to the Project."16
The Proposed Facilities are the second and final phase of the CECPN approved in
Docket No. 18-025-U and will complete a 161 kV transmission loop to the Clinton West
161 kV Transmission Substation identified as Phase 1 in Docket No. 18-025-U. This will provide for better reliability in the event there is a contingency event between Clinton
West and Partain 161 kV Transmission Line segment, or Partain to S-vvitching Station 161 kV transmission line segment.17 As AECC constructs the proposed double circuit beginning at Partain Transmission Substation, the existing 69 kV transmission line can be taken out of service one (1) segment at a time, facilitating minimal or no outages on
FECC's distribution substations. 1s
The 69 kV portion of the double circuit transmission will replace FECC's aging 69 kV transmission line. FECC will no longer own or maintain the 69 kV transmission line serving its substations Edgemont, Brownsville, Tannenbaum, and Heber Springs North.
As each segment of FECC's 69 kV transmission line is replaced by AECC, FECC will assign its land rights to AECC. 19
The original submission of the Proposed Facilities by AECC to MISO did not include the rebuild of FECC 69 KV transmission line between the Edgemont Substation and the Heber Spring North Substation. AECC has since resubmitted the Proposed
16 Application, p. 4, ii 9. 17 Direct Testimony of Forest Kessinger, p. 5, lines 10-19. •8 Direct Testimony of Forest Kessinger, pp. 7-8. 19 Direct Testimony of Curtis Q. Warner, p. 5, lines 18-19. APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18 Docket No. 19-023-U Order No. 4 Page 9 of 34
Facilities to MISO to include the said rebuild. AECC does not anticipate any objections, and expects approval from MISO in December 2019. 2 0
To comply with Ark. Code Ann. § 23-18-511(4), the Application provides a statement of the estimated cost for the Proposed Facilities of $40.6 million, vvith $36.7 million allocated to the transmission line and $3.9 million for the Switching Station.2 1
AECC plans to use general funds to finance construction; however, should the general funds not be available, AECC has several short-term lines of credit that could be leveraged if necessary. 2 2
The Application provided the information required in the RPPs, Rule 6.06 (a)(2) and (a)(3). AECC will use a 2.75% annual group depreciation rate, which is the recommended rate by the Rural Utilities Service. 2 3 The ROW will have permanent transmission value. The steel poles used in the construction of the Proposed Facilities have a design life of 40 years, but typically last 60 years or longer. The 69-161 kV transformer has an expected life of approximately 30 to 50 years. 2 4 The salvage value of the Proposed Facilities is considered to be very low, with only scrap metal value for the poles and conductors. The cost of removal of the Proposed Facilities is not known, particularly due to its long life expectancy; however, the cost of removal may be offset in all or part by the salvage value. The reuse of the retired equipment is possible, but is
2 0 Direct Testimony of Forest Kessinger, p. 8, line 19 through p. 9, line 5. 2 1 Application, p. 5, i111. 22 Direct Testimony of J enni Sudduth, p. 3, lines 19-22. 2 3 Direct Testimony of J enni Sudduth, p. 4, lines 7 - 11. 2 4 Direct Testimony of J enni Sudduth, p. 4, lines 12-16. APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18
Docket No. 19-023-U Order No. 4 Page 10 of 34 difficult to make a determination at this time, and will need to be assessed at the time of decommissioning. 2 s
AECC discussed financing methods to comply with Ark. Code Ann. § 23-18-511(5)
AECC will seek the most economical source of funding at the time; however, it is more likely to use CFC or Co Bank. Additionally, AECC does not anticipate the use of tax- exempt bonds. 2 6
AECC addressed the projected economic or financial impact on the local community as required by Ark. Code Ann. § 23-18-511(6). According to AECC witness
Sudduth, "AECC does not believe that the Project's annual cost is sufficient to trigger a rate increase. At the time of AECC [sic] next rate increase, annual Project costs will be incorporated into AECC's wholesale rates."27 The Proposed Facilities will be under a
MI SO-tariffed facility, and as such, it is anticipated that 70% of the Proposed Facilities' annual cost will be recovered through MISO's network transmission revenue. Revenues received from tariffed transmission facilities are returned directly to AECC's member cooperatives. This revenue offset means that AECC's member cooperatives are only impacted by the net difference, or approximately 30% of the Proposed Facilities' annual cost.2 8 The Application states, "[t]he community will also be impacted (positively) from ad valorem taxes that will be generated by the construction of the Project."2 9
AECC addressed estimated effects on energy costs for the consumer to comply with Ark. Code Ann. § 23-18-511(7). According to witness Sudduth, "[t]he project is a
2 s Direct Testimony of J enni Sudduth, p. 4, line 17 through p. 5, line 10. 2 6 Direct Testimony of J enni Sudduth, p. 4, lines 1-6. 27 Direct Testimony of J enni Sudduth, p. 5, lines 11-14 . 2 s Direct Testimony of J enni Sudduth, p. 5, lines 14-21. 2 9 Application, p. 6, ii 17. APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18
Docket No. 19-023-U Order No. 4 Page 11of34 transmission reliability project. AECC does not anticipated [sic] the Project will impact market energy prices, or increase or decrease energy market congestion."3°
The Environmental Impact Statement ("EIS") is provided in Application Exhibit
AEEC-7 in compliance with Ark. Code Ann. § 23-18-511(8). It is discussed below in this
Order.
AECC will use standard erosion control methods to reduce soil erosion from reaching waterways. Where lands are disturbed, the land will be smoothed and seeded with a low-growth grass that is compatible with the surrounding environment. Soils in the areas designated for construction, materials storage, equipment parking, and office space will be tested before and after construction for contaminants. Precautionary and mitigation procedures will be in place to address any potential petroleum spillage from vehicular equipment at these sites and the proposed Switching Station site. AECC does not anticipate significant erosion or other impacts on local soils.3 1
No impact to local land use is anticipated, except for the portion of forested areas that are converted to emergent areas. Revegetation of the disturbed areas is the only land use mitigation measure that will be deployed.32
AECC does not anticipate negative impacts on air quality, except during times of controlled burning. Should burning be required, AECC will follow all applicable rules and regulations, including those set forth by the Arkansas State Forestry Commission.
Sulfur hexafluoride is used within the breakers at the S-vvitching Station. AECC manages
3° Direct Testimony of J enni Sudduth, p. 5, line 22 through p. 6, line 3. 3 1 Application Exhibit AECC-7, Environmental Impact Statement, Section 8.2 Geology and Soils, pp. 141- 142. 32 Application Exhibit AECC-7, Environmental Impact Statement, Section 8.7 Land Use, p. 147. APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18
Docket No. 19-023-U Order No. 4 Page 12 of 34 this non-toxic greenhouse gas 111 accordance with industry guidelines to reduce the chance of accidental releases.33
AECC will obtain a general storm '"rater permit for construction of the Proposed
Facilities from the Arkansas Department of Environmental Quality ("ADEQ"). This permit requires the implementation of a Storm Water Pollution Prevention Plan
("SWPPP"), which must be reviewed and approved by ADEQ prior to clearing or construction. The permit also requires buffer zones to be established to prevent the contamination of waterways. A buffer zone of 25 feet is required for most waterways, while a 50-foot buffer zone is required for Extraordinary Resource Water, Ecologically
Sensitive Waterbodies, Natural and Scenic Waterways, or any other uses at the discretion of ADEQ. Within those buffer zones, AECC uses hand c1earing, rather than mechanical clearing.34
The transmission line will cross, but not impact, floodplains. The proposed transmission line will only impact a small portion of wetland areas. Of the 313 acres of right-of-way along the 25.8-mile transmission line, wetlands account for less than 0.9 acres. The wetlands can be spanned with no impacts related to the construction activities. AECC will be required to get a short-term activity authorization issued by
ADEQ for any vehicle stream crossings.3s
33 Application Exhibit AECC-7, Environmental Impact Statement, Section 8.1 Air Quality, p. 141. 34 Application Exhibit AECC-7, Environmental Impact Statement, Section 8.3 Water Resources, p. 142. 35 Application Exhibit AECC-7 Environmental Impact Statement, Section 8.3 Water Resources, p. 142. APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18 Docket No. 19-023-U Order No. 4 Page 13 of 34 The Switching Station will reqmre a SWPPP which should help minimize increases in sedimentation and turbidity resulting from any storm water runoff and/ or erosion.36
Due to the control measures discussed above, AECC does not anticipate significant impacts to local water resources.37
According to the EIS, AECC has submitted an application for a Section 10 and
404 permits to United States Army Corps of Engineers ("USACE"). The two (2)
Navigable Water Crossings occur on Greers Ferry Lake, at Middle Fork Little Red River and Devils Fork Little Red River.38
AECC addressed § 23-18-511(8)(A)(i)(b) stating FECC's existing 69 kV transmission line currently crosses Greer Ferry Lake in two (2) places. The proposed
161/69 kV double circuit transmission line will replace FECC's existing 69 KV transmission at the same water crossings. These water crossings are not expected to have additional impacts.
The EIS indicates, "[t]he Preferred Route is located along mostly private property although it is adjacent to and/ or crosses federal lands in the vicinity of Greers
Ferry Lake. The route runs along the eastern perimeter of John F. Kennedy Park for one
(1) mile which is undeveloped in that area. The route also crosses publicly owned lands which are currently covered by easements also issued by the USACE. AECC will request modifications to those easements where necessary. There will be no other impacts to
36 Application Exhibit AECC-7 Environmental Impact Statement, Section 8.3 Water Resources, p. 142. 37 Application Exhibit AECC-7 Environmental Impact Statement, Section 8-4 Water Resources, p. 143. 38 Application Exhibit AECC-7, Environmental Impact Statement, p. 199. APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18
Docket No. 19-023-U Order No. 4 Page 14 of 34 public recreational facilities. Consequently, no mitigation measures are necessary or proposed. "39
"The facility [Switching Station] will be located on privately-owned property.
There will be no impacts on public recreation facilities."4°
Next, AECC addressed the effect of the Proposed Facilities on sites of natural, historic and scenic values and resources. The land onto which the transmission line traverses is mostly undeveloped. This area has been cleared within the last one hundred years and as such, no old growth forested areas '"rill be impacted. The transmission line will traverse through or alongside a 30-acre commercial timber property, with no unusual timber species. Disturbed lands will be revegetated with low- growth grasses. Erosion control measures will be implemented to minimize soil erosion due to wind and runoff along the transmission line route and the Switching Station site.
These measures will minimize any adverse impacts on local botanical resources.41
The transmission line will require clearing and construction that will require disturbances of grasslands, forested areas, and other vegetation; however, no significant effect on local wildlife is expected, including any unrecorded protected species which may occur in the project area. The construction of the Switching Station is not expected
39 Application Exhibit AECC-7, Environmental Impact Statement, p. 148, Section 8.8 Recreation, Transmission Line. 4o Application Exhibit AECC-7, Environmental Impact Statement, p. 148, Section 8.8 Recreation, Switching Station. 4 1 Application Exhibit AECC-7 Environmental Impact Statement, Section 8.5.1 Botanical Resources, p. 145. APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18
Docket No. 19-023-U Order No. 4 Page 15 of 34 to significantly affect local wildlife, including any unrecorded protected species which may occur in the project area.4 2
Due to erosion control methods already discussed, no significant impact to aquatic communities is anticipated in connection with the transmission line. A small pond, 0.57 acres, is located on the site of the Switching Station. AECC will have to obtain a 404 permit from the USACE. Additionally, AECC expects to be required to purchase wetland mitigation credits. The pond was previously used for watering of livestock, but has not been used for that purpose for close to twenty (20) years. The landowner had no desire for the pond to be relocated. 43
An assessment was conducted to determine potential roost trees ("PRTs") of the
Indiana and Northern Long-eared Bat. The assessment identified 97 PRTs along the
25.8-mile route. The identified PRTs can only be cut during the bat's hibernation season, while the bats are safely hibernating elsewhere. Once the PRTs have been cut during this period, the United States Fish and Wildlife Service ("USFWS") will permit cutting the remaining trees and scrub brush anytime throughout the year.44
The Yellowcheek Darter may be impacted by debris and silt finding its way into stream(s) crossed by the transmission line if preventive measures are not taken. AECC has received acceptance from USFWS Arkansas field office to use buffer areas and
42 Application Exhibit AECC-7 Environmental Impact Statement, Section 8.5.2 Wildlife Resources, p. 145· 43 Application Exhibit AECC-7 Environmental Impact Statement, Section 8.5.3 Aquatic Resources, pp. 145-146. 44 Application Exhibit AECC-7, Environmental Impact Statement, Section 8.5A Protected Species, pp. 146-147. APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18 Docket No. 19-023-U Order No. 4 Page 16 of 34 wattles adjacent to streams to prevent debris and silt from reaching Archey Creek and other streams. 45
One (1) listed flowering plant, the Missouri Bladderpod, is knovvn to be in the area of the Proposed Facilities. This species is known to occur in limestone glades, to which there are none, and no impact to the Missouri Bladderpod is expected.46
The USFWS Arkansas field office states that no federally listed species are expected to be adversely affected by the Proposed Facilities. 47
There will be only slight, temporary impacts to traffic along the transmission line, and there will be no permanent impact to traffic patterns. On occasions, large supply trucks and equipment trucks will disrupt traffic while making turns onto and off roads.
When necessary, flaggers will be positioned on roadways to allow for trucks to navigate into and out of traffic. Any transportation disruptions at the Switching Station are considered to be negligible.48
The entire route was surveyed by a licensed archaeological consulting firm.
Three (3) sites were discovered to be eligible for the National Register of Historic Places.
The recommendation by the archeologist is to avoid the sites by spanning them, as is being done now by the existing transmission line. Therefore, no impacts to cultural - resources are anticipated; however, if artifacts are discovered during construction, the
Arkansas Historic Preservation Officer will be contacted. At the site of the Switching
45 Application Exhibit AECC-7, Environmental Impact Statement, Section 8.5-4 Protected Species, pp. 146-147. 46 Application Exhibit AECC-7, Environmental Impact Statement, Section 8.5-4 Protected Species, p. 147. 47 Application Exhibit AECC-7, Environmental Impact Statement, Section 8.5-4 Protected Species, p. 147. 48 Application Exhibit AECC-7, Environmental Impact Statement, Section 8.6 Transportation, p. 147. APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18
Docket No. 19-023-U Order No. 4 Page 17 of 34
Station, 118 shovel tests were documented, and no prehistoric or historic sites were found on the property. 49
The Arkansas Department of Heritage suggested AECC reach out to five (5)
Tribes that have expressed interest in the location of the Proposed Facilities. On
September 13, 2019, AECC filed the Supplemental Exhibits AECC-1, and AECC-2 of
Curtis Q. Warner, that provided for the copies of the letter sent to the identified Tribes
(the Cherokee Nation, the Osage Nation, the Quapaw Nation, the Shawnee Tribe, and the United Keetoowah Band of Cherokee Indians). According to witness Warner a 30- day review period has passed with no response from any of the Tribes.so
Except for road crossings, the transmission line will have minimal visibility. The transmission line crosses Arkansas State Highway 16, Arkansas State Highway 92, and
Arkansas State Highway 25 twice. Weathering steel poles will be utilized to blend into the wood area. Galvanized steel poles may be utilized in more urban areas. The
Switching Station, encompassing approximately 1.5 acres, is located across from an existing substation. Traffic levels in that area are low, and the aesthetic impact is anticipated to be small.s1
During the clearing of the route and construction of the transmission line, noise levels will increase in or near the right-of-way. Once the line is in service, there should be no continuous noise discernable outside the ROW. Noise from the Switching Station will be minimal if even discernable. The nearest residence to the Switching Station is
49 Application Exhibit AECC-7, Environmental Impact Statement, Section 8.9 Cultul'al Resoul'ces, p. 148. so Supplemental Direct Testimony of Curtis Q. Warner, p. 2, line 22 through p. 3, line 3. s1 Application Exhibit AECC-7 Environmental Impact Statement, Section 8.10 Aesthetics, p. 149. APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18 Docket No. 19-023-U Order No. 4 Page 18 of 34 over 700 feet away. With the exception of the noise generated when the breakers operate, which should be rare, no noise is expected.52
The Proposed Facilities are anticipated to have a positive socioeconomic impact as a result of the ad valorem tax generated by the project investment, which is estimated after the first full year of operation to be $40,000.53
Staff witness Roberts testified that AECC provided an EIS, as required by Ark.
Code Ann. § 23-18-511(8) and fully developed the six (6) factors in Ark. Code Ann. § 23-
18-511(8)(B)(i-vi). Ark. Code Ann. § 23-18-511(8)(B)(iv) and (v), which apply to generation facilities, is not applicable in this Docket. The Proposed Facilities are not generation facilities.
As required by Ark. Code Ann. § 23-18-511(9), according to witness Sudduth,
"[t]here are no anticipated interstate benefits associated with this Project as all the facilities are in central Arkansas."54
Under Ark. Code Ann. § 23-18-511(10), the Application stated that "[t]here is no other information of an environmental or economic nature that AECC considers relevant or that the Commission has required by regulation or order."55
Order No. 12 in Docket No. 89-164-U and Order No. 5 in Docket No. 91-182-U identified seven (7) factors that should be considered in the siting of transmission facilities to determine whether the route or location chosen by the utility is reasonable.
Those seven (7) factors are:
s2 Application Exhibit AECC-7 Environmental Impact Statement, Section 8.11 Noise, p. 149. 53 Application Exhibit AECC-7 Environmental Impact Statement, Section 8.12 Socioeconomic, p. 149. 54 Direct Testimony of J enni Sudduth, p. 6, lines 4-6. 55 Application, p. 7, L. APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18
Docket No. 19-023-U Order No. 4 Page 19 of 34
1. Cost of the Facilities;
2. Health and Safety; 3. Engineering and Technical Concerns; 4. Ecological/Environmental Disruptions; 5. Disruptions to Existing Manmade Property Uses; 6. Disruptions to Planned Manmade Property Uses; and, 7. Aesthetic Displeasure.
These factors are addressed throughout this Order.
Concerning health and safety concerns according to witness Warner, "there will be no significant impacts or threats to health and safety or to the environment. [The
Proposed Facilities] Ylrill be designed and constructed in accordance with good utility practices and in compliance with the National Electric Safety Code. [The Proposed
Facilities] will be operated and maintained according to the standards of the North
American Reliability Corporation whose mission is to assure the reliability of the bulk electric system."s6
Concerning engmeermg and technical concerns according to witness Warner,
"[a]lthough not unique, double circuit transmission lines are more complicated to design and construct than single lines. Additionally the Transmission Line will require crossing of Greers Ferry Lake. Lastly, construction and access of the Transmission Line will be more difficult than average due hilly and rough terrain."s7
56 Direct Testimony of Curtis Q. Warner, p. 17, lines 9-15. 57 Direct Testimony of Curtis Q. Warner p. 10, lines 1-7. APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18
Docket No. 19-023-U Order No. 4 Page 20 of 34 AECC has requested a variance of 500 feet.ss According the requested variance,
Staff witness Roberts testified the variance is reasonable, provided that the variance is used only to accommodate legitimate concerns and objections of property owners whose land is being traversed, and that any deviations or adjustments do not adversely affect other lands that were not depicted as being traversed, do not involve a significant cost increase, and do not prevent AECC from conforming the location of the transmission line as closely as possible to existing land uses and property lines. The variance should be limited to only those landowners that were noticed as being traversed. The variance should be confined to only the portions of the transmission line that is not considered to be a navigable water crossing. No variance should be granted at the navigable water crossmgs.
AECC has s,erved notice on all designated entities as required by Ark. Code Ann. §
23-18-513 and RPPs, Rule 6.03(b). AECC witness Warner testified that "[n]otice of this proceeding has been provided by certified mail in accordance with RPPs 6.03(b) and
Ark. Code Ann. § 23-18-513 to each landowner on the proposed route. Also, a copy of the Notice and Application was provided to statutory officers, entities and places."s9
This is further evidenced by Application Exhibit AECC-4 Landowner List, Application
Exhibit AECC-5 Examples of Notice(s), and Application Exhibit AECC-6 Proof of
Service. Application Exhibit AECC-6 provides an Affidavit of Proof of Service from
Curtis Q. Warner dated July 19, 2019. Proof of Service was filed on September 13, 2019, as Supplemental Direct Exhibit AECC-1 of Jenni Sudduth.
58 Direct Testimony of Curtis Q. Warner p. 18, lines 8-11.
59 Direct Testimony of Curtis Q. Warner, p. 18, lines 13-2i. APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18
Docket No. 19-023-U Order No. 4 Page 21of34 According to Staff witness Roberts, the Company's Application is in compliance with RPPs, Rule 6.06 by providing, in addition to the preceding information:
• A statement of the facts and circumstances upon which applicant relies to establish that present or future public convenience and necessity require the new construction, acquisition, or operation of such facilities;6o • Financial data as of the latest practical date;6 1 and, • A statement of life estimates, value of salvage, cost of removal, and re-use potential of the proposed facility.6 2 Staff sent the required notifications on July 23, 2019, to the designated state agencies and officials. A sample letter of the required notifications was filed in this Docket on
July 24, 2019.
Correspondence from Arkansas Department of Health, which responded to AECC as having no comments in connection with the Proposed Facilities was mailed to Curtis
Warner on August 14, 2019, and is included in the Supplemental Exhibit AECC-3 of
Curtis Q. Warner.
On September 17, 2019, Staff witness Roberts testified that he received an email63 from Curtis Q. Warner that contained a copy of a letter from the Arkansas Department of Environmental Quality ("ADEQ") to Curtis Q. Warner, received September 10, 2019.
In that letter, ADEQ advises AECC of its responsibility to comply with required permitting; in particular, AECC must obtain a Stormwater Construction General Permit
ARR 150000 prior to the start of construction. ADEQ also advised AECC that work conducted in the Waters of the State will require a Short Term Activity Authorization from ADEQ in accordance with Regulation 2.305. ADEQ additionally advised AECC
6o See Generally, Direct Testimony of Warner, Kessinger, and Sudduth. 6 1 Application, p. 5, ii F. 62 Direct Testimony of J enni Sudduth, p. 4, line 12 through p. 5 line 10. 63 Direct Exhibit of J effrey J . Roberts, JJR-1, p.3. APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18
Docket No. 19-023-U Order No. 4 Page 22 of 34 that any work conducted in any United States Waters may require a Section 404 permit from the USACE.
Staff witness Roberts testified that on August 21, 2019, one (1) landowner AECC proposed to be traversed, W. Gary Gore, filed a Notice of Limited Appearance and
Verified Statement regarding the expansion of the right-of-way near and on his property. At the time of the filing of his Direct Testimony, there are no intervenors. At the time of filing his Direct Testimony, no public comments have been received in this
Docket.
Navigable Water Crossing Evaluation
The project will cross two (2) navigable waterways. Greers Ferry Lake, at Middle
Fork Little Red River and Devils Fork Little Red River, 64 will be crossed by the Proposed
Facilities. Both crossings occur at the same location as the existing 69 kV transmission line. The Little Red River will also be crossed; however, a Section 10 Crossing Permit from the USACE will not be required, as the river is not considered navigable at the location of the crossing. 65
Ark. Code Ann. § 23-18-521(b) states that a certificate issued under this subchapter entitles the applicant to a permit under Ark. Code Ann. § 23-3-501 et seq. without any further notice or hearing if the applicant has filed with the Arkansas Public
Service Commission the consent or authorization required by Ark. Code Ann. § 23-3-
504(7) and paid the costs and expenses stated in Ark. Code Ann. § 23-3-510.
64 Application Exhibit AECC-7, Environmental Impact Statement, p. 199. 65 Application, p. 9, ii 26. APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18 Docket No. 19-023-U Order No. 4 Page 23 of 34 The Company has not filed a showing of approval or permissive authorization of the existing or proposed navigable water crossing by the Secretary of Defense or the
Secretary of the Army or other federal agency having jurisdiction to consent to erections in navigable waterways required by Ark. Code Ann.§ 23-3-504(7).
Application Exhibit AECC-8 demonstrates the Pre-Construction Notification application that was given to the USACE on June 25, 2019. The necessary consent or authorization from the Little Rock District USACE for the navigable water crossings of
Greers Ferry Lake, at Middle Fork Little Red River and Devils Fork Little Red River, has not been filed in this Docket at this time. 66
AECC requests in its Application, "[s]imilar to the approach taken in APSC
Docket No. 04-046-U, Order No. 5 at 13-14, in the event AECC has not received authorization prior to the hearing on the matter, AECC respectfully requests that the
Commission grant its Verified Petition for Navigable Water Crossing expressly conditioned upon AECC's receipt and filing of the required authorization."67
Conclusions and Recommendations of Staff witness Roberts
Commission Orders in Docket Nos. 94-003-U and 89-164-U offer guidance to
Staff in its evaluation of the location of transmission facilities. Specifically, Order No. 7 in Docket No. 94-003-U at page 8, citing In re Arkansas Power & Light Company, 118
PUR4th 156, 164-65 (1990), states in part:
It is not the function of a public utility regulatory agency to substitute or superimpose its judgment for that of a utility as to the location of proposed new transmission
66 Application Exhibit AECC-8, Section 10 Permit Application to USACE, pp. 227-233. 67 Application, p. 10, iJ 33. APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18 Docket No. 19-023-U Order No. 4 Page 24 of 34 facilities. If the route selected by the utility is not unreasonable and appears to have been chosen after consideration of the seven factors previously enumerated, and any other factors which may be relevant in that specific case, then in the absence of special or very unusual circumstances the governmental regulatory body reviewing the application for a certificate of public convenience and necessity should confine itself to only ordering minor deviations in the route.
Staff witness Roberts testified that his review of detailed aerial and street imagery confirmed that the chosen route was selected with due regard to avoiding existing homes and structures, minimizing the overall footprint of the project, and utilizing existing property use lines, section lines, fence rows, ditches, creeks, streams, tree lines, and other natural boundaries. As in this particular case, and with minor exceptions, the route utilizes the existing transmission corridor where the ROW is wide enough to accommodate the Proposed Facilities; where the ROW is not wide enough additional
ROW will be acquired to widen the existing transmission corridor.
Docket No. 89-164-U, Order 12, at page 22, further directs that "[a] general rule which has been followed by this Commission in previous siting proceedings is that, where possible, a transmission line should be routed along existing property use lines, section lines, fence rows, ditches, creeks, streams, tree lines, and other natural boundaries."
Staff witness Roberts recommended the Commission find the Proposed Facilities are needed and are in the public interest. He stated that based upon his review of detailed aerial and street imagery, he determined the proposed route generally follows existing roadways, section lines, and property and other natural boundaries. With APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18
Docket No. 19- 0 23-U Order No. 4 Page 25 of 34 minor exceptions, the route utilizes the existing transmission corridor ,,vhere the ROW is wide enough to accommodate the Proposed Facilities, and where the ROW is not wide enough, additional ROW will be acquired to widen the existing transmission corridor.
He recommended the Commission find the proposed route is reasonable. He also recommended the Commission find construction of the Proposed Facilities will have no unacceptable adverse environmental impacts. He stated that based on his review of the
Application, the testimony, and the EIS, he recommended the Commission find that
AECC has satisfactorily addressed each of the areas specified in Ark. Code Ann. § 23-18-
519(b); and that it has complied with Ark. Code Ann. § 23-18-512, § 23-18-513, and all applicable RPPs.
Based on his evaluation, he recommended the Commission:
1. Grant AECC a CECPN to construct, own, and operate the Proposed Facilities along its Preferred Route with consideration given to Preferred Route A with Bypass B, should the Federal Government not give authority to traverse its land; 2. Deny AECC's petition for the required navigable water crossings and give further consideration to AECC's petition once it receives the permissive authority from the USACE and files such authority in this
Docket,68 or in the alternate, conditionally grant AECC's petition to become effective upon receipt and subsequent filing in this Docket of the Section 10 permit from the USACE, granting permissive authority
68 In AECC's Motion to Submit Docket for Commission Approval on th e Evidentiary Record and Waive the I-I earing, AECC stated that "Staff does not oppose, subj ect to the Commission's discretion, conditional approval of the Verified Petition for Navigable Water Crossing based on the specifi c and limited facts in this docket. " APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18
Docket No. i9-023-U Order No. 4 Page 26 of 34
for the navigable river crossings of Greers Ferry Lake, at Middle Fork Little Red River and Devils Fork Little Red River; 3. Grant a variance not to exceed five hundred (500) feet in order to accommodate legitimate concerns and objections of property ovvners whose land is being traversed, provided that any deviation from the approved route does not traverse a landowner not previously noticed as being traversed, does not involve a significant cost increase, and does not prevent AECC from conforming the location of the transmission line as closely as possible to existing land use and property lines. The variance should be confined to only the portions of the transmission line that is not considered to be a navigable water crossing. No variance should be granted at the navigable water crossings; 4. Direct AECC to comply with all permitting requirements of ADEQ and the USACE; 5. Direct AECC to comply with Rules 6.05(a) and (b) of this Commission's RPPs by filing the required completion or delay of construction reports in this Docket; and, 6. Specify in its order that nothing in this proceeding shall be construed as a finding of value for rate-making purposes.
FINDINGS OF FACT AND CONCLUSIONS OF LAW
From the Application, and Exhibits thereto, the Environmental Impact Statement
("EIS"), the testimony, and all other matters of record, I make the following findings of fact and conclusions of law: APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18
Docket No. i9-023-U Order No. 4 Page 27 of 34
1. AECC is an electric cooperative corporation organized and existing under the
Electric Cooperative Act, codified at Ark. Code Ann. §§ 23-18-301 through 23-18-331, with its principal place of business located at 1 Cooperative Way, Little Rock, Arkansas
72209. AECC provides wholesale electricity to its seventeen (17) distribution cooperative members.
2. The Proposed Facilities which are the subject of this Application constitute a
"major utility facility" giving this Commission jurisdiction over AECC's Application for a
CECPN pursuant to Ark. Code Ann. § 23-18-501 et seq., known as the Utility Facility
Environmental and Economic Protection Act, and Rule 6.06 of the Commission's Rules of Practice and Procedure, which govern the authorization and placement of major utility facilities. AECC has provided the evidence needed for me to find that AECC has complied with those Code Provisions.
3. No petitions for intervention or public comments have been filed in this proceeding. One (1) landowner filed a Notice of Limited Appearance.
4. Property owners of record whose property will be traversed by these Proposed
Facilities and all statutorily designated individuals, officials, representatives of various governmental or public agencies, as well as public agencies themselves, as specifically set forth in Ark. Code Ann. § 23-18-513, have been duly notified in writing of this
Application and the public hearing thereon, or have been sought to be so notified, and proof of such notification has been filed with the Commission in accordance with the
Code Provision and RPPs, Rule 6.03. APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18
Docket No. 19-023-U Order No. 4 Page 28 of 34
5. AECC has certified in writing it has published newspaper notice of this proceeding as required by Ark. Code Ann. § 23-18-513(d)(l) and Rule 6.03 of the
Commission's RPPs; and in AECC Exhibit 6, AECC has also certified in writing it has made a copy of its Application available for public inspection in all public libraries in counties in which the Proposed Facilities will be located, as required by Ark. Code Ann.
§ 23-18-513(a)(8). The notifications are discussed in more detail earlier in this Order.
The Applicant has met the notice and proof of service requirements.
6. No objection to the Proposed Facilities has been voiced of record by any public official or agency, property owner, or any other person or organization except as hereinbefore stated, the Notice of Limited Appearance filed by Mr. W. Gary Gore. No public comments were received by the Secretary of the Commission.
7. AECC has taken appropriate action in this proceeding to avoid any damage to or disturbance of culturally, archeologically, or historically significant sites at the location and along the route of these Proposed Facilities, as is discussed in this Order.
8. Staff witness Roberts recommended approval of the CECPN as being needed and in the public interest. He specified to grant AECC a CECPN to construct, own, and operate the Proposed Facilities along its Preferred Route with consideration given to
Preferred Route A with Bypass B, should the Federal Government not give authority to traverse its land. I approve that recommendation.
9. AECC requested and the Staff recommended that AECC be granted a variance not to exceed 500 feet in order to accommodate legitimate concerns and objections of property owners whose lands will be traversed, provided that such deviations or adjustments do APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18
Docket No. i9-023-U Order No. 4 Page 29 of 34 not adversely affect other landowners, does not traverse a landowner not previously notified, do not involve significant cost increases, and do not inhibit AECC's ability to conform the location of the Proposed Facilities as closely as possible to existing land use and property lines. The variance should be confined to only portions of the transmission line that is not considered to be a navigable water crossing. No variance shall be granted at the navigable water crossings. I approve the recommended 500 feet variance as described in this Paragraph.
10. In summary and as more fully discussed in this Order, the need for the
Proposed Facilities are as the second and final phase of the CECPN approved in Docket
No. 18-025-U and they will complete a 161 kV transmission loop to the Clinton West 161 kV Transmission Substation identified as Phase 1 in Docket No. 18-025- U. This will provide for better reliability in the event there is a contingency event between Clinton
West and Partain 161 kV transmission line segment, or Partain to Switching Station 161 kV transmission line segment. As AECC constructs the proposed double circuit beginning at Partain Transmission Substation, the existing 69 kV transmission line can be taken out of service one (1) segment at a time, facilitating minimal or no outages on
FECC's distribution substations.
11. The location and routing of the Proposed Facilities, as more particularly described in the Application, the Exhibits thereto, the EIS, and in the evidence presented, is reasonable and appropriate.
12. The nature of the probable environmental impact of AECC's Proposed
Facilities is described in detail in the EIS and in the testimony of the aforementioned APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18
Docket No. 19-023-U Order No. 4 Page 30 of 34 witnesses who gave testimony in this matter. While there will be certain unavoidable consequences from the construction and operation of these facilities, it is determined they represent an acceptable adverse environmental impact, considering the state of available technology, the requirements of law, the present and future need of the end users for the electricity to be transmitted and distributed by these upgraded transmission facilities, the nature and economics of the Proposed Facilities, and the alternatives which were considered. See Ark. Code Ann.§ 23-18-519(b)(3) and (4).
13. The Proposed Facilities will have minimal effect upon the natural and human resources of the area.
14. The Proposed Facilities should have little economic impact upon the local area through impacts upon agriculture or through increased employment. A small portion of project wages may find its way into the local economy through purchases such as fuel, food, lodging, and possibly construction materials. See Ark. Code Ann. §23-
18-519(b)(5).
15. To comply with Ark. Code Ann. § 23-18-511(4), the Application provides a statement of the estimated cost for the Proposed Facilities of $40.6 million, with $36.7 million allocated to the transmission line and $3-9 million for the Switching Station.
AECC plans to use general funds to finance construction; however, should the general funds not be available, AECC has several short-term lines of credit that could be leveraged if necessary.
16. The Proposed Facilities are not inconsistent with the known plans, that is, those plans which have been filed with the Commission of other electric systems serving APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18 Docket No. 19-023-U Order No. 4 Page 31of34 the State of Arkansas. The original submission of the Proposed Facilities by AECC to
MISO did not include the rebuild of FECC 69 KV transmission line between the
Edgemont Substation and the Heber Spring North Substation. AECC has since resubmitted the Proposed Facilities to MISO to include the said rebuild. AECC does not anticipate any objections, and expects approval from MISO in December 2019.69
17. The location of these Proposed Electrical Facilities at the site and along the route hereby being approved conforms to applicable state, regional, and local laws and regulations. See Ark Code Ann. § 23- 18-519(b)(10).
18. The Proposed Transmission Line is not located vvithin a national interest electric line corridor. See Ark Code Ann. § 23- 18-519(b)(11).
19. These Proposed Facilities will be constructed in accordance with the health and safety standards prescribed by Rules 5.01 and 5.02 of the Commission's Special
Rules - Electric, which designate the National Electric Safety Code and the National
Electrical Code as standards; and the location of these transmission facilities will not constitute an undue safety hazard to persons or property at or along the proposed site or route.
20. AECC has an expected in-service date of February, 2023.
21. The Proposed Facilities are needed and will serve the public interest, convenience and necessity. See Ark. Code Ann. § 23- 18-519(b)(2).
69 Direct Testimony of Forest Kessinger, p. 8, line 19 through p. 9, line 5. APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18 Docket No. 19-023-U Order No. 4 Page 32 of 34
22. The project will cross two (2) navigable waterways. Greers Ferry Lake, at
Middle Fork Little Red River and Devils Fork Little Red River,7° will be crossed by the
Proposed Facilities. Both crossings occur at the same location as the existing 69 kV transmission line. The Little Red River vvill also be crossed; however, a Section 10
Crossing Permit from the United States Army Corp of Engineers ("USACE") will not be required, as the river is not considered navigable at the location of the crossing.71
Arkansas Code Ann. § 23-3-507 provides, "[u]pon the hearing [on a water crossing], if it appears that the Secretaiy of the Army of the United States ... has approved or permissively authmized the proposed navigable water crossings, then the Arkansas Public Service Commission shall grant the prayer of the river crossing proprietor's petition unless the Commission enters specific findings ... "
(emphasis added) . Arkansas law first requires this Commission be provided evidence of approval or pennissive authorization from the USACE for any river crossing before it approves (conditional or not) a petition for a river crossing such as the ones sought in this docket. Once evidence of the USACE approval or pennissive authorization has been filed, this Commission must grant the petition unless it is established by a preponderance of evidence that the proposed river crossing (1) will jeopardize the public safety, or (2) the construction will result in an unlawful interference with some other paramount public or private use of the waterway or its underlying bed As AECC has failed to satisfy the statutmy requirement of establishing the USACE has approved or pennissively authorized the proposed navigable 'Nater crossing, its petition cannot be approved at this time. Frnthe.i; consideration will be given to AECC's request once it receives the approval needed from the Corps of Engineers and files proof of approval in this Docket
7° Application Exhibit AECC-7, Environmental Impact Statement, p. 199. 71 Application, p. 9, ii 26. APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18 Docket No. 19-023-U Order No. 4 Page 33 of 34
IT IS, THEREFORE, ORDERED THAT:
a. AECC is granted a CECPN to construct, own, and operate the Proposed
Facilities along its Preferred Route with consideration given to Preferred Route A vvith
Bypass B, should the Federal Government not give authority to traverse its land;
b. AECC's petition for the required navigable water crossings cannot be approved at this time. Further consideration will be given to AECC's petition once it receives the permissive authority from the USACE and files such authority in this
Docket. Because no Hearing (with a transcript) was held in this Docket, the costs required in Ark. Code Ann. § 23-3-510 will not be assessed against AECC.
c. A variance is granted not to exceed five hundred (500) feet in order to accommodate legitimate concerns and objections of property owners whose land is being traversed, provided that any deviation from the approved route does not traverse a landowner not previously noticed as being traversed, does not involve a significant cost increase, and does not prevent AECC from conforming the location of the transmission line as closely as possible to existing land use and property lines. The variance should be confined to only the portions of the transmission line that is not considered to be a navigable water crossing. No variance should be granted at the navigable water crossings;
d. AECC is directed to comply with all permitting requirements of ADEQ and the USACE; APSC FILED Time: 10/11/2019 9:30:15 AM: Recvd 10/11/2019 9:30:09 AM: Docket 19-023-U-Doc. 18 Docket No. i9-023-U Order No. 4 Page 34 of 34 e. AECC is directed to comply vvith Rules 6.05(a) and (b) of this
Commission's RPPs by filing the required completion or delay of construction reports in this Docket; and,
f. Nothing in this Order shall be construed as a finding of value for rate- making purposes.
g. The Commission retains jurisdiction of this matter for such further proceedings or orders as may be necessary or appropriate.
BY ORDER OF THE ADMINISTRATIVE LAW JUDGE PURSUANT TO DELEGATION.
of October, 2019.
Administrative Law Judge
ry oos ecretary of the Commission
I certify that this order, isslM'ld by Vie Arl([.:nsas Public Service haa been served on ell pt1rti• of rtcorQ on this date by the followi.19 method:
_ U.S. mail with postage itr8Pai9 using the malling address of each party as lndi°'ted in the offic:el docket ftle, er .. iactronic mei . .. the email addrast ot each party as ini.J!r;EAted In thaofflClal dock<:t fit•