COMMONWEALTH OF MASSACHUSETTS Energy Facilities Siting Board ____________________________________ ) In the Matter of the Petition of ) Silver City Energy Limited Partnership ) EFSB 91-100 to Construct a Bulk Generating Facility ) and Ancillary Facilities ) ____________________________________) FINAL DECISION Jolette Westbrook Hearing Officer June 15, 1994 On the Decision: Enid Kumin William Febiger Phyllis Brawarsky Dana Reed Barbara Shapiro APPEARANCES: John A. DeTore, Esq. Donna Sharkey, Esq. Rubin and Rudman 50 Rowes Wharf Boston, Massachusetts 02110 FOR: Silver City Energy Limited Partnership Petitioner Barry P. Fogel, Esq. Craig A. MacDonnell, Esq. Keohane and Keegan 21 Custom House Street Boston, Massachusetts 02110 FOR: Silver City Energy Limited Partnership Petitioner Frederick D. Augenstern Assistant Attorney General Office of the Attorney General Environmental Protection Division One Ashburton Place, 19th Floor Boston, Massachusetts 02108 Intervenor William Graban 19 Scadding Street Taunton, Massachusetts 02780 Intervenor Robert H. Russell, Esq. Conservation Law Foundation 62 Summer Street Boston, Massachusetts 02108 Intervenor Alan J. Nogee Massachusetts Public Interest Research Group 29 Temple Place Boston, Massachusetts 02111 Intervenor Frances J. Perry 2R. Rail Avenue - River Bend Taunton, Massachusetts 02780 Intervenor - i - William Graban Co-Chairman COAL-FACTS Committee 19 Scadding Street Taunton, Massachusetts 02780 Interested Person Barry J. Andrews, Selectman Stephen J. Lombard, Town Manager Town of Norton 70 East Main Street Norton, Massachusetts 02766 Interested Person Charles Rainville Michael Josefek Greater New Bedford NO-COALition 1025 Pequot Street New Bedford, Massachusetts 02740 Interested Person Irwin Marks Northeast Environmental Defense Council 1122 Main Street Achushnet, Massachusetts 02743 Interested Person Mrs. Edward MacDonald 129 Power Street Taunton, Massachusetts 02780 Interested Person Joseph Zrebiec Audrey Zrebiec 31 Pine Street Taunton, Massachusetts 02780 Interested Person Dorothy Latour 120 Hart Street Taunton, Massachusetts 02780 Interested Person - ii - TABLE OF CONTENTS I. INTRODUCTION .......................................... 1 A. Summary of the Proposed Project and Facilities ................... 1 B. Jurisdiction .......................................... 4 C. Procedural History ..................................... 4 D. Scope of Review ...................................... 10 II. ANALYSIS OF THE PROPOSED PROJECT ........................ 12 A. Need Analysis ........................................ 12 1. Standard of Review ................................ 12 a. Positions of the Parties ......................... 12 i. The Company's Position ................... 12 ii. The Attorney General's Position .............. 14 b. Analysis .................................. 15 c. Conclusion ................................. 17 2. Power Sales ..................................... 19 3. New England's Need ............................... 19 a. Introduction ................................ 19 b. Demand Forecasts ............................ 21 i. Description ............................ 21 ii. Position of the Attorney General .............. 28 iii. Analysis .............................. 34 c. DSM .................................... 38 i. Description ............................ 38 ii. Positions of the Intervenors and Company's Response ............................. 41 iii. Analysis .............................. 45 d. Supply Forecasts ............................. 47 i. Description ............................ 47 (A) Capacity Assumptions ................ 47 (B) Reserve Margin .................... 50 ii. Positions of the Intervenors and Company's Response ............................. 50 (A) Capacity Assumptions ................ 50 (B) Reserve Margin .................... 52 iii. Analysis .............................. 53 e. Need Forecasts .............................. 57 i. Description ............................ 57 ii. Positions of the Intervenors and the Company's Response ............................. 58 iii. Analysis .............................. 59 - iii - f. Economic Efficiency .......................... 62 i. Description ............................ 62 ii. Position of the Attorney General and the Company's Response ..................... 66 iii. Analysis ............................. 70 4. Massachusetts' Need ............................... 74 a. Introduction ................................ 74 b. Demand Forecasts ............................ 75 i. Description ............................ 75 (A) Demand Forecast Methodologies ......... 75 (B) DSM Forecasts .................... 80 ii. Positions of the Intervenors and Company's Response ............................. 81 iii. Analysis .............................. 89 c. Supply Forecasts ............................. 96 i. Description ............................ 96 ii. Positions of the Intervenors and Company's Response ............................. 98 iii. Analysis ............................. 100 d. Need Forecasts ..............................102 i. Description ............................102 ii. Analysis ..............................104 e. Other Factors ...............................106 i. Transmission Benefits .....................107 ii. Dispatch .............................111 (A) Description .......................111 (B) Position of the Attorney General .........114 (C) Analysis .........................115 5. Findings and Conclusions on Need ......................119 B. Alternative Technologies Comparison .........................126 1. Standard of Review ................................126 a. Positions of the Parties .........................126 i. The Company's Position ...................126 ii. The Attorney General's Position ..............127 b. Analysis ..................................130 c. Conclusion .................................132 2. Identification of Resource Alternatives ....................133 3. Environmental Impacts ..............................135 a. Fuel Transportation ...........................136 i. Description ............................136 ii. Analysis ..............................141 b. Air Quality ................................144 i. Emission Rates and Impact on Ambient Air Quality ..145 - iv - (A) Emission Rates ....................145 (B) Impact of Emissions .................149 (1) Criteria Pollutants ..............149 (2) Other Pollutants ...............150 ii. Analysis ..............................152 c. Water Supply and Wastewater ....................158 i. Water Supply ..........................158 (A) Description .......................158 (B) Analysis .........................163 ii. Wastewater ............................163 (A) Description .......................162 (B) Analysis .........................164 d. Noise ....................................165 i. Description ............................165 ii. Analysis ..............................169 e. Solid Waste ................................171 i. Description ............................171 ii. The Position of the Attorney General ...........172 iii. Analysis ..............................173 f. Land Use ..................................175 i. Description ............................175 ii. Analysis ..............................178 g. Findings and Conclusions on Environmental Impacts of the Proposed Project and Alternative Technologies .........179 4. Cost ..........................................185 a. Description ................................185 b. Position of the Attorney General ..................190 c. Analysis ..................................192 5. Reliability ......................................197 6. Comparison of the Proposed Project and Technology Alternatives ..201 a. Comparison ................................201 b. Findings and Conclusions .......................214 C. Project Viability .......................................215 1. Standard of Review ................................215 2. Financiability and Construction .........................216 a. Financiability ...............................216 b. Construction ................................222 3. Operations and Fuel Acquisition ........................226 a. Operations .................................226 b. Fuel Acquisition .............................228 4. Findings and Conclusions on Project Viability ..............233 III. ANALYSIS OF THE PROPOSED FACILITIES ......................235 A. Description of the Proposed Facilities at the Primary and Alternative Sites ..235 - v - B. Site Selection Process ...................................236 1. Standard of Review ................................236 2. Development of Siting Criteria .........................238 a. Description ................................238 b. Analysis ..................................242 3. Application of Siting Criteria ..........................246 a. Description ................................246 b. Positions of the Intervenors ......................249 c. Analysis ..................................250 4. Geographic Diversity ...............................252 5. Findings and Conclusions on Site Selection Process ...........254 C. Environmental Impacts, Cost and Reliability of the Proposed Facilities ....255 1. Standard of Review ................................255 2. Analysis of the Proposed Facilities at the Primary Site ..........258 a. Environmental Impacts of the Proposed Facilities at the Primary Site ............................258 i. Air Quality ............................258