COMMONWEALTH OF MASSACHUSETTS ENERGY FACILITIES SITING BOARD _________________________________________ ) Petition of New England Power Company ) d/b/a National Grid for Approval to Construct ) and Operate a New 345 kV Transmission Line and ) EFSB 12-1 to Modify an Existing Switching Station Pursuant ) to G.L. c. 164, § 69J ) _________________________________________ ) _________________________________________ ) Petition of New England Power Company ) d/b/a National Grid Pursuant to G.L. c. 40A, § 3 ) for Exemptions from the Zoning Bylaws of the ) Towns of Millbury, Sutton, Northbridge, Uxbridge ) D.P.U. 12-46 and Millville in Connection with the Proposed ) Construction and Operation of a New 345 kV ) Overhead Transmission Line and Related Facility ) Improvements ) _________________________________________ ) _________________________________________ ) Petition of New England Power Company ) d/b/a National Grid for Approval to Construct and ) D.P.U. 12-47 Operate a New 345 kV Overhead Transmission ) Line Pursuant to G.L. c. 164, § 72 ) _________________________________________ ) FINAL DECISION On the Decision: Enid Kumin Mary Menino Barbara Shapiro Stephen H. August Presiding Officer May 16, 2014 APPEARANCES: Bess B. Gorman, Esq. Mark R. Rielly, Esq. Lauren Peloquin, Esq. National Grid USA Service Company, Inc. 40 Sylvan Road Waltham, MA 02452 -and- David S. Rosenzweig, Esq. Catherine J. Keuthen, Esq. Cheryl A. Blaine, Esq. Keegan Werlin LLP 265 Franklin Street Boston, MA 02110 FOR: New England Power Company d/b/a National Grid Petitioner Erik Bennett, Esq. Massachusetts Assistant Attorney General One Ashburton Place Boston, MA 02108 FOR: Attorney General of Massachusetts Intervenor Kevin Flynn, Esq. ISO-New England One Sullivan Road Holyoke, MA 01040 -and- Eric J. Krathwohl, Esq. Shaela McNulty Collins, Esq. Rich May, P.C. 176 Federal Street Boston, MA 02110 FOR: ISO-New England Intervenor Matthew Buskell 43 Cider Mill Land Upton, MA 01568 Intervenor Louis C. Tusino, Trustee Pembroke Realty Trust 14 West Street Douglas, MA 01516 Intervenor EFSB 12-1/D.P.U. 12-46/12-47 Page iv TABLE OF CONTENTS I. INTRODUCTION .................................................................................................................... 1 A. Summary of the Proposed Transmission Project ................................................................. 1 B. Procedural History ............................................................................................................... 3 II. JURISDICTION AND STANDARD OF REVIEW UNDER G.L. c. 164, § 69J .................. 4 III. NEED FOR THE PROPOSED FACILITIES ....................................................................... 4 A. Standard of Review ............................................................................................................. 4 B. Understanding the Existing Transmission System in the Study Area ................................. 6 C. Description of the Company’s Demonstration of Need ....................................................... 8 1. Regional/National Context for Company Reliability Planning ....................................... 8 2. Load Forecasting Methodology ....................................................................................... 9 3. The Company’s Base Case Assumptions ....................................................................... 10 4. Rhode Island Base Case ................................................................................................. 14 5. Summary of Year of Need for the Base Cases ............................................................... 14 6. Changes After 2012 ISO-NE Needs Assessment ........................................................... 15 7. Alternative Base Case Assumptions Requested by Staff ............................................... 15 8. Results of the Various Power Flow Modeling Analyses ............................................... 17 9. Positions of the Parties ................................................................................................... 21 D. Analysis and Findings on Need ......................................................................................... 23 IV. ALTERNATIVE APPROACHES FOR MEETING IDENTIFIED NEED ........................ 25 A. Standard of Review ........................................................................................................... 25 B. Identification of Project Approaches for Analysis ............................................................ 26 C. Overview of ICF’s Analysis .............................................................................................. 28 D. Potential NTA Resources .................................................................................................. 29 1. Energy Efficiency ........................................................................................................... 29 2. Distributed Generation ................................................................................................... 31 3. Additional Generating Resources .................................................................................. 32 4. Active Demand Response .............................................................................................. 34 E. NTAs Combined ................................................................................................................ 35 F. The Hybrid Alternative ...................................................................................................... 37 G. Updated Analysis with Sensitivity Cases Requested by Staff ........................................... 38 H. Positions of the Parties ...................................................................................................... 39 I. Analysis and Findings ......................................................................................................... 40 V. ROUTE ALTERNATIVES ................................................................................................... 41 A. Route Selection .................................................................................................................. 41 1. Standard of Review ........................................................................................................ 41 2. The Company’s Route Selection Process ...................................................................... 42 3. Geographic Diversity ..................................................................................................... 45 4. Conclusions on Route Selection..................................................................................... 46 B. Analysis of the Primary and Alternative Route ................................................................. 46 1. Standard of Review ........................................................................................................ 46 2. Introduction .................................................................................................................... 47 EFSB 12-1/D.P.U. 12-46/12-47 Page v 3. Environmental Impacts .................................................................................................. 48 4. Cost ................................................................................................................................ 70 5. Reliability ....................................................................................................................... 71 6. Conclusion...................................................................................................................... 72 VI. CONSISTENCY WITH POLICIES OF THE COMMONWEALTH ................................. 73 A. Standard of Review ........................................................................................................... 73 B. Analysis and Conclusions .................................................................................................. 73 1. Health Policies ............................................................................................................... 73 2. Environmental Protection Policies ................................................................................. 74 3. Resource Use and Development Policies ....................................................................... 74 VII. ANALYSIS UNDER G.L. C. 40A, § 3 - ZONING EXEMPTIONS ................................. 75 A. Individual Zoning Exemptions .......................................................................................... 75 1. Standard of Review ........................................................................................................ 75 2. Public Service Corporation ............................................................................................ 76 3. Public Convenience or Welfare ..................................................................................... 77 4. Individual Exemptions Required.................................................................................... 79 5. Conclusion on Request for Individual Zoning Exemptions ........................................... 86 B. Comprehensive Zoning Exemptions.................................................................................. 86 1. Standard of Review ........................................................................................................ 86 2. Company Position .........................................................................................................