STATE OF NEW YORK PUBLIC SERVICE COMMISSION At a session of the Public Service Commission held in the City of Albany on August 13, 2020 COMMISSIONERS PRESENT: John B. Rhodes, Chair Diane X. Burman James S. Alesi Tracey A. Edwards John B. Howard CASE 17-T-0816 - Petition of Central Hudson Gas and Electric Corporation for a Certificate of Environmental Compatibility and Public Need for the Rebuild of the Approximately 23.6 Mile H and SB Electric Transmission Lines to 115 kV Standards in the City of Kingston, and Towns of Ulster and Saugerties in Ulster County, and the Town of Catskill and Village of Catskill, Greene County. ORDER ADOPTING JOINT PROPOSAL (Issued and Effective August 14, 2020) BY THE COMMISSION: INTRODUCTION On December 29, 2017, Central Hudson Gas and Electric Corporation (Central Hudson or the Applicant) filed an application pursuant to Public Service Law (PSL) Article VII proposing to rebuild and operate approximately 23.6 miles of two electric transmission lines (the H and SB lines) in Ulster and Greene Counties (the Project or the Facility). On May 29, 2020, Central Hudson filed a Joint Proposal that purported to resolve all issues in this matter. In this Order, we adopt the Joint Proposal with the minor exception of some terms that are self- executing agreements governing the relationships among the CASE 17-T-0816 parties and unnecessary to our review. Accordingly, we grant to the Applicant, pursuant to PSL Article VII § 121, a conditional Certificate of Environment Compatibility and Public Need (Certificate). BACKGROUND Central Hudson’s Article VII application proposes a rebuild of existing 69 kV transmission lines designated “H” and “SB.” The Applicant stated that the rebuild will generally occur within an existing 23.6-mile-long right-of-way (ROW), with approximately 1.2 miles of the H line relocated to avoid the State designated Great Vly Wildlife Management Area. The H and SB lines connect the Hurley Avenue Substation in the Town of Ulster, Ulster County and the North Catskill Substation in the Town of Catskill, Greene County, a right-of-way length of approximately 23.6 miles. According to Central Hudson, the Project is being undertaken to maintain reliable transmission service within Central Hudson’s service territory. The H and SB lines currently operate at 69,000 volts (69 kV). The rebuild design voltage will increase the lines’ capability to 115,000 volts (115 kV), however the lines will continue to operate at 69 kV until the increase in voltage is needed. As originally proposed, Central Hudson planned to remove and replace all structures, insulators, electrical conductors associated with the existing H and SB 23.6-mile long ROW except 24 structures planned for retention. By letter dated April 3, 2018, the Secretary informed Central Hudson of deficiencies in its application. Central Hudson responded with supplemental and revised application materials on May 24, 2018, and provided additional information on June 8, 2018, in response to DPS Staff’s request for information. -2- CASE 17-T-0816 With its Application, Central Hudson requested waivers from certain application requirements such as Department of Transportation maps which are no longer available and aerial photographs that were not made within the time frame required by Commission regulations. By order issued May 18, 2018, the Commission granted Central Hudson’s waiver requests.1 By letter dated June 14, 2018, the Secretary informed Central Hudson that the application was filed or otherwise in compliance with Section 122 of the Public Service Law (PSL). By Notice issued July 17, 2018, the Secretary scheduled an information session and Public Statement Hearing in Saugerties, Ulster County, for August 7, 2018. One individual at the Public Statement Hearing representing the Town of Saugerties raised concerns about visual impact assessment to historic structures within the Town, the Great Vly Wetland (Vly) and the Trumpbour Farm. The Town of Saugerties also submitted written comments on August 17, 2018. The Town’s written comments repeated the concern that certain historic resources of the Town were overlooked in the Application.2 The Town supports the relocation of the transmission facility out of the Vly and agrees with the importance of minimizing disturbance to the bottom of the wetland, even if it results in the existing structures remaining visible a few feet above the water line. Other than the omitted historical structures, the Town generally appreciated the thoroughness of the Application. On August 8, 2018, the Administrative Law Judge held a prehearing conference in Albany. At the conference, the parties indicated their intent to enter settlement negotiations. On August 27, 2018, Central Hudson filed a notice of its intent to 1 Order Granting Waivers (issued May 18, 2018). 2 As described below, the Applicant submitted a Supplemental Visual Impact Assessment on November 21, 2018, (Exhibit 21) to address the Town’s concern. -3- CASE 17-T-0816 commence settlement negotiations. Those negotiations culminated in the filing of the Joint Proposal on May 29, 2020, attached here as Appendix A. In addition to Central Hudson, the Joint Proposal is signed by Trial Staff of the New York State Department of Public Service designated to represent the public interest in this proceeding (DPS Staff), the New York State Department of Environmental Conservation (DEC), and the New York State Department of Agriculture & Markets (DAM). The Applicant also provided several revised exhibits, as well as affidavits swearing to testimony that was filed with the Application in support of the Application’s various exhibits. The ALJs issued a Ruling Admitting Evidence on June 2, 2020. Joint Proposal The Joint Proposal provides the most updated description of the Project. The Project consists of the rebuild and re-conductoring to 115 kV specifications of the existing 69 kV H and SB lines located between the Hurley Avenue Substation in the Town of Ulster, Ulster County and the North Catskill Substation in the Town of Catskill, Greene County, New York. The H and SB lines will initially be operated at 69 kV and will require future modifications at the three substations and one tap station in order to operate at 115 kV.3 The Project will generally occur within an existing approximately 150-foot-wide ROW. The Joint Proposal provides for approximately 1.2 miles of the H Line route to be relocated out of the Vly. The total distance of the H and SB lines is approximately 23.6 miles and the individual lengths of the H and SB lines are 12.2 and 11.4 miles, respectively. The proposed 3 The Commission would also need to approve an amendment to the Certificate. -4- CASE 17-T-0816 new line will be comprised of single-circuit facilities on single, two and three-pole structures made of self-weathering Corten steel and designed in accordance with industry standards. Further details concerning the Project description are contained in Appendix B of the Joint Proposal. As a result of the settlement discussions, the Joint Proposal provides for certain changes to the Project from Central Hudson’s original Application. The modifications include: i) changes to several structures from direct-bury to engineered concrete foundations, reducing or eliminating necessary guying; ii) changes to the design at the southern end of the project to accommodate a recreational trail (Rail Trail project);4 iii) different structure locations at the Kosco/Heritage Energy Facility in order to better accommodate existing commercial operations at the site; iv) different structures in the area of the Bluestone Wild Forest to eliminate a ROW width deficiency; v) the replacement of five structures in Catskill that originally were thought to be structurally adequate to avoid replacement; and vi) additional environmental impact minimization not contemplated with the original filing. Need for the Project The Joint Proposal sets forth the need for the Project as primarily based on the deteriorating condition of the H and SB lines that if not corrected could impact the reliability of the lines. The existing 69 kV lines were installed in 1928 as double circuits on steel lattice structures; the double circuits 4 According to the Joint Proposal, Ulster County is in the process of finalizing a design for the Rail Trail project where there is currently a footpath authorized by Central Hudson for recreational use just north of the Hurley Avenue substation. The Rail Trail is being planned and constructed as a public recreational trail which will go from Kingston to the Ashokan Reservoir. More details regarding the Rail Trail project are provided below. -5- CASE 17-T-0816 subsequently were converted to single circuits with two conductors per phase. Some of the original lattice structures have been replaced as needed. Central Hudson assessed the condition of the structures in 2015 and determined that 32.0% of the existing structures needed replacement or the addition of mid-span poles to correct sag; an additional 35.5% of the structures required repair. If mid-span structures were installed to correct sag, it is very likely that adjacent tangent structures would also require replacement. Nine structures were replaced in 2017-2018 due to severe condition issues. The continuing deterioration and need for the proposed project are also evidenced by the need to replace an additional five structures in Catskill that Central Hudson originally thought were adequate to avoid replacement. The Joint Proposal indicates that the Project