Legalectric

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Yes, indeed, PSEG is making things work for us…

PSEG has announced through its 2Q report that the Susquehanna-Roseland transmission line will be delayed until at least 2015.  Just like the Brookings line part of CapX 2020!  Funny how that works.

PSEG – 2nd Quarter – Press Release

Here’s what they said in this about D-E-L-A-Y of the Susquehanna-Roseland transmission line – two little snippets:

Ralph Izzo indicated that PSE&G has notified the PJM Interconnection that the in-service date for the eastern portion of the Susquehanna-Roseland transmission line has been delayed by 2 years to 2014 with the in-service date for the western portion of the line delayed until 2015. He added, “We are disappointed by the delay, but look forward to meeting the region’s reliability requirements in partnership with our regulators and PJM.”  The delays are due to on-going environmental permit reviews.
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PSE&G notified PJM that it has not obtained certain environmental approvals that are required for completion of the Eastern and Western segments of the Susquehanna – Roseland transmission line. Consequently, at this time, we do not expect the Eastern portion of the line to be in service before June 2014, and we do not expect the Western portion to be in service before June 2015.

You can learn more about the Susquehanna-Roseland transmission project at www.stopthelines.com!

Interesting 2Q report, some pretty juicy dry numbers here, look how far down their net income was, and look at how their bottom line recovered — it’s those “excluded items” that make the difference:

As Business Week notes:

PSEG 2Q profit falls 21.5 percent

It’s hard to type that headline without two or three exclamation points!!!

Here’s the report from the Star-Ledger:

PSE&G delays construction of controversial Susquehanna-Roseland power line

Published: Friday, July 30, 2010, 4:14 PM
Brian T. Murray/The Star-Ledger

Public Service Electric & Gas announced this morning a three-year delay in completing its controversial Susquehanna-Roseland transmission lines, which will cut across New Jersey’s protected, water-rich Highlands.

PSE&G broke the news in its second-quarterly earnings report, explaining that obtaining environmental approvals has taken longer than anticipated. The announcement came just days after the state Department of Environmental Protection found the company’s wetlands permit applications incomplete.

Now, the $750 million power project the company hoped to complete by 2012 will not be done until 2015.

The New Jersey Highlands Coalition and the New Jersey chapter of the Sierra Club, two groups opposed to the project, said it may be the beginning of the end for the power line. But PSE&G said it plans to move forward, contending the power lines are needed to prevent blackouts and keep the region’s power grid reliable.

“We are disappointed by the delay, but we are going to work with the regulators. … We are still committed to constructing the line. It’s just going to be delayed,” said PSE&G spokeswoman Deann Muzikar.

Already approved by the state Board of Public Utilities and the New Jersey Highlands Council, the project involves a 500,000-volt transmission line along a 146-mile route between Pennsylvania and northern New Jersey and erecting 500-kilovolt transmission towers along a path where smaller, 230-kilovolt towers already exist. The main hurdle has been the National Park Service, which must approve a western leg of the line to run through the Delaware Water Gap National Recreation Area, Middle Delaware National Scenic and Recreational River and the Appalachian National Scenic Trail.

PSE&G split the project into two segments earlier this year, hoping to at least begin construction this summer on an eastern leg between Hopatcong in Sussex County and Roseland in Essex County. But that strategy caused trouble for its wetlands permit reviews by the DEP, which noted the BPU had approved the project in one piece, not in a bifurcated process.

Additionally, the National Park Service has stood firm on its plan to delay action until 2012, as it holds public hearings and considered alternative routes for the line. Three hearings are scheduled for Aug. 17 through Aug. 19 in Pennsylvania and Sussex County.

Environmental groups, contending the project will ruin sensitive land and promote polluting, coal-generated electrical plants in the west, applauded the park service for its careful approach.

“PSE&G has been playing a high-stakes game of chicken with the public and regulators, whom they are now blaming for their not getting their permits on a fast track. This doesn’t surprise us, considering the vast environmental and scenic damage that will be imposed on the Highlands for this risky, ill-conceived, and expensive project,” said Julia Somers of the Highlands Coalition.

It’s out, hot off the press:

BPU Susquehanna-Roseland Order

I feel a Motion for Reconsideration coming on…

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From the Stop the Lines! site – check it out!

The National Park Service is holding scoping hearings next week, these are important.  Comment period is from January 21, 2010 to March 5, 2010.

ALL MEETINGS ARE 6-8:30 P.M.

Tuesday, February 16, 2010
Fernwood Hotel (Victorian Room)
Route 209 North
Bushkill, PA.

Wednesday, February 17, 2010
Camp Jefferson
81 Weldon Road
Lake Hopatcong, NJ

Thursday, February 18, 2010
Sheraton Parsippany Hotel
199 Smith Road
Parsippany,NJ

These are scoping meetings, to determine the scope of the National Park Service review of this project, and they’re soliciting comments.  Comment period is from January 21, 2010 to March 5, 2010.   They have issued an internal scoping document, and that’s worth a look see to figure out how they’re looking at it:

NPS Internal Scoping Report

Comment period is from January 21, 2010 to March 5, 2010. 

NPS – Newsletter with background and “How-To”

NPS, which has jurisdiction over the section of route that traverses, or PLANS to traverse, the Delaware Water Gap, is requiring a look at all three routes that were originally “proposed” for the Susquehanna-Roseland transmission line:

LINK TO NPS ALTERNATIVES UNDER CONSIDERATION

This makes sense because NEPA, the National Environmental Policy Act, requires consideration of alternatives, but I’m not sure that just because the project proposers said these were the alternatives considered that “alternatives” should be limited to these three options.  And what about system alternatives?

How will this NPS review come down?  This is NOT my area, I don’t know much about it so let’s learn together here!

NPS Home Page for Susquehanna-Roseland Transmission Project

Comment period is from January 21, 2010 to March 5, 2010.

The Susquehanna-Roseland hearing has been reopened.  And off we got to FERC.  It’s been quite a hectic week, with a “flurry” of filings, and here’s the update.  First, remember the NJ BPUat a special 1/15 meeting said they were NOT going to decide on PSE&G’s Susquehanna-Roseland transmission line and said they’d be asking for more information from PJM.  Well, they asked PJM to answer a few questions (though not specific enough, not the right questions):

BPU Secretary letter to PJM

Here’s what PJM had to say:

PJM Letter in response to BPU Query

Suffice it to say, the letter is … ahem… INSUFFICIENT!

And then the responses started coming in, first the Municipal Intervenors, then :

Municipal Intervenors response to PJM Letter

Environmental Intervenors – January 25, 2010

Stop The Lines! January 25, 2010

And the BPU issued an Order reopening the docket and first scheduled a hearing for February 2, 2010, and then THANKFULLY changed it to February 4, 2010:

BPU Scheduling Order Jan 25, 2010

BPU Amended Scheduling Order Jan 26, 2010

The concept is that PJM is coming in as a witness regarding the assertions of their January 21, 2010 bullshit letter, and what does that mean?  Is Steve Herling THE witness, or are there others?  Is whatever witness/es coming with a truckload of exhibits that they’ll dump on us the day of the hearing?  Is he going to be prepared in any way to back up his conclusory and unsupported statements?  So I fired off a couple missives, first Discovery to get the requests in quick and let them be on the record of ignoring or refusing to answer, and then a letter to the BPU with my view of the fine mess we’re in:

STL Discovery re: PJM Letter 1/21/10

STL Letter to BPU 1/25/10

As a sidebar, the escrow that PSE&G had to put out for the Municipal Intervenors is gone, this has been an intense case, and so they’re reasonably asking for more:

Municipal Intervenors – Motion for Escrow

Meanwhile, back at the ranch, remember that great 7th Circuit decision tossing out the cost allocation for this project?  Everything’s been up in the air since then, because if they can’t settle how they’re going to allocate the costs, this sucker won’t be built:

Illinois Commerce Commission v. FERC – August 6, 2009

It was remanded to FERC and after some wrangling, just like in the BPU case, where the utilities were saying, “It’s all there in the record, you don’t need anything more to make a separate decision” and Illinois said quite succinctly, “AHEM, WE DON”T THINK SO!” and FERC issued an Order stating that the record was not sufficient, needed more information and directed PJM to provide some information and also provided some questions for parties to mull over in their comments:

FERC Order January 21, 2010

Here’s the fun part – what they asked PJM to provide (hee hee hee hee hee hee), starting on p. 5 of the above Order:

10. PJM should provide the following information:

A. The total costs that have been approved through PJM’s Regional Transmission Expansion Plan (RTEP) process for facilities that operate at or above 500 kV (and necessary lower voltage facilities), and whose costs are assigned pursuant to Opinion No. 494. For these projects, calculate the total costs that have been assigned to each PJM zone, and estimate the total costs that would be assigned to each zone using PJM’s DFAX methodology.

B. PJM manuals require that, in planning projects, it seek to optimize projects in order to reduce the cost of addressing individual reliability criteria. Describe how the optimization process is performed. Also, explain how PJM determines the relative priorities of resolving numerous reliability issues with one project. For 500 kV and above facilities, explain whether PJM could accurately determine the beneficiaries of a project that resolves numerous reliability issues using its DFAX methodology.

C. PJM’s most recent RTEP report (2008), at P 5 states that:
Baseline thermal and voltage analysis encompasses an exhaustive analysis of all Bulk Electric System (BES) facilities for compliance with NERC Category A (TPL-001), Category B (TPL-002) and Category C (TPL-003) events. In addition, consistent with NERC standards TPL-004, a number of extreme events including those judged to be critical from an operational perspective as well as those defined in Table I of TPL-004 were evaluated for risk and consequence to the system. Describe the types of anticipated reliability requirements addressed by the PJM RTEP (i.e., voltage, thermal, stability). Explain whether and how the DFAX analysis applies to the NERC reliability analyses listed above and any other reliability requirements. Explain whether the RTEP upgrades designed to address these reliability requirements also will address other reliability concerns. In particular, explain whether the geographic location or voltage level of an RTEP upgrade makes that upgrade more likely to address broader reliability concerns.
Provide any relevant studies.

D. In this proceeding, PJM recommended the adoption of a postage-stamp rate design for new 500 kV and above facilities.

1. Describe the benefits generated by such facilities that are not captured in the DFAX methodology used by PJM to allocate costs for lower voltage facilities. Indicate whether such lines provide reliability or economic benefits to the areas producing electricity.

2. Provide engineering or other studies showing any differences in regional benefits between 500 kV and lower voltage facilities (e.g., 345 kV
and 230 kV).

E. Provide any existing engineering or other studies that indicate whether the modeling assumptions used in the RTEP analysis, such as the direction of flow,
remain consistent or vary over time.

The Municipal Intervenors sent in a Motion to FERC, PSEG objected, and then Stop the Lines sent in a Motion for Limited Intervention:

Municipal Intervenors – Motion to Intervene

PSEG Response to Munis FERC Intervention

Stop The Lines! Motion for Limited Intervention

Municipal Intervenors – Renewal of Motion to Intervene

PSEG Response to STL Intervention Motion

PSEG’s response to our Motion to Intervene… yeah… (yawn)… what-ev-er…

And just now, hot off the press, the Municipal Intervenors have filed a Motion to Depose PJM’s Steven Herling!  Oh, yes, this is much needed, so we can get an idea where they’re going and what they plan to present (I doubt they’d produce the pre-filed testimony I requested!):

Municipal Intervenors Motion to Depose PJM’s Herling

As you can see, it’s been an intense few days, and isn’t letting off anytime soon.  More to follow as it develops.

Here are the articles on the NJ BPU delay of decision on Susquehanna-Roseland transmission line, but before that, here’s the letter the BPU sent to PJM requesting more information based on yesterday’s decision to put on the brakes:

BPU Secretary letter to PJM

Color me jaded, but what is needed is what Stop the Lines requested in our STL – Reply Brief, based on the sensitivity analysis ordered for PATH:

•    PSE&G must waive any claim to FERC “backstop” authority in the pendancy of this sensitivity analysis and Board deliberation.

•    The sensitivity analysis must include, but is not limited to those scenarios Ordered in the PATH docket:

1.    Susquehanna-Roseland load flow analyses updated to reflect the following changes in generation: (i) all existing generation as of January 7, 2010, which is not scheduled to be retired before 2014; (ii) all proposed generation that cleared the May 2009 PRM Auction; and (iii) all proposed generation with a signed ISA as of January 7, 2009 (“Scenario 1 generation”);

2.    Susquehanna-Roseland load flow analyses updated for the changes in Scenario 1 generation, and updated to reflect PJM’s 2010 load forecast (“Scenario 2”);

3.    Susquehanna-Roseland load flow analyses updated for the changes in Scenario 1 generation, and updated to reflect the demand response and energy efficiency resources that cleared the May 2009 RPM Auction;

4.    Susquehanna-Roseland load flow analyses updated for the changes in Scenario 1 generation, and PJM’s 2010 load forecast (i.e., Scenario 2) and updated to reflect the demand response and energy efficiency resources that cleared the May 2009 RPM Auction;

5.    Susquehanna-Roseland load flow analyses updated for the changes in Scenario 1 generation, PJM’s 2010 load forecast, and to reflect the demand response and energy efficiency resources that cleared the May 2009 RPM Auction (i.e. Scenario 4), and updated to reflect the forecasted additional demand response and energy resource reasonably available for 2014, 2015 and 2016 (i.e. using MW from PATH of 367, 420, and469 respectively); and

6.    Susquehanna-Roseland load flow analyses updated for the changes in Scenario 1 generation, PJM’s 2010 load forecast,  the demand response and energy efficiency resources that cleared the May 2009 RPM Auction, the forecasted additional demand response and energy resource reasonably available for 2014, 2015 and 2016; and updated to reflect additional demand response and energy efficiency projected (i.e. using MW from path of 1,825, 2,140 and 2,403 respectively).

These results shall be distributed to the parties as soon as possible and shall be subject to limited discovery and cross examination, after which the Board shall consider them together with the balance of the record in this matter.

See why it’s frustrating — they just missed the boat completely with the vague request to PJM…

So, on with the press coverage about yesterday’s decision to delay:

New Jersey regulators delay decision on PSEG transmission line

By Mark Peters
Of DOW JONES NEWSWIRES

NEWARK, N.J. (Dow Jones)–New Jersey regulators voted Friday to delay for up to 30 days their decision on a high-voltage power line proposed by a unit of Public Service Enterprise Group Inc. (PEG).

New Jersey’s largest utility has been planning the transmission project for two years, saying it will relieve stress on existing lines, improve reliability and provide access to lower-cost power. But the timetable for what’s known as the Susquehanna-Roseland project has come into question, as other projects in the 13-state PJM Interconnection power market, which includes New Jersey, have been put on hold in recent weeks.

The New Jersey Board of Public Utilities said that in light of the other delays, it will hold off on its decision and request a further review from PJM. The grid operator, in a short letter to regulators this week, said the New Jersey project is still needed and isn’t affected by the delays of other projects.

“We should seek and receive further detailed confirmation from PJM,” said Commissioner Joseph Fiordaliso, before the board voted unanimously for the delay.

The $750-million, 45-mile project planned by Public Service Electric & Gas, which is a unit of Public Service Enterprise Group, would run from northern New Jersey into Pennsylvania. PSE&G could earn up to a 12.9% return on its equity investment in the project, which is scheduled to be operational in the summer of 2012.

In a statement, a spokeswoman for PSE&G said the utility is disappointed with the delay and considering its options to ensure reliable service for its customers.

PSE&G is partnering on the transmission project with PPL Corp. (PPL), which would build the $510 million Pennsylvania portion of the line. PPL won the backing of state regulators there Thursday.

But slumping power demand driven by the recession and conservation and curtailment programs is causing utilities and regulators to reconsider the schedule for transmission projects. Although expected to rebound this year, power demand declined in 2008 and 2009, with last year’s drop being the largest in more than 70 years.

In recent weeks, Allegheny Energy Inc. (AYE) and American Electric Power Co. (AEP) said they plan to delay a $1.8 billion transmission line from West Virginia to Maryland because of a less-robust outlook for power demand. Pepco Holdings Inc. (POM) followed by asking Maryland regulators last week to suspend a review of a $1.2 billion transmission line through Maryland. The companies will await a study of regional transmission needs expected from PJM in late June.

Public Service Enterprise Group shares were at $32.32, down 50 cents, or 1.5%, in recent trading.

-By Mark Peters, Dow Jones Newswires; 212-416-2457 mark.peters@dowjones.com

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Decision delayed on power project

Saturday, January 16, 2010
Lawrence Ragonese
STAR-LEDGER STAFF

Opponents of a massive North Jersey power project hailed the state Board of Public Utilities’ decision yesterday to postpone a vote on the high-voltage matter for 30 days as the first step toward derailing it.

But BPU officials, at a special hearing in Newark, said they only delayed a vote to ensure they have all information needed to assess the merits of PSE&G’s proposed Susquehanna-Roseland line, especially after a similar power project stalled recently in the mid-Atlantic region.

“The significance of the case makes it absolutely essential that the commissioners be in a position to fully review the record and have the depth of understanding to weigh its benefits and liabilities,” said commission member Joseph Fiordaliso.

At issue is a 45-mile, $750 million high-voltage line that would cut through Morris, Essex, Sussex and Warren counties, which Public Service Electric & Gas contends is needed to maintain reliability of the regional electricity grid. A similar 101-mile connecting line in Pennsylvania got that state’s approval Thursday.

Project opponents say it would harm the environment, make people living near the line ill, and bring “dirty” coal-generated power through New Jersey solely to benefit out-of-state power needs and generate profits for the power company.

“This would be devastating to North Jersey and my town, which will be ripped to shreds by this project,” said Fredon Mayor Carl Lazzaro.

“They’ve never proven they need all of this electricity. It’s all about making money for their shareholders,” added East Hanover Mayor Joseph Pannullo.

The BPU was poised to decide the fate of the project yesterday but agreed to let the issue of the Potomac-Appalachian Transmission Highline (PATH) be put into the New Jersey record.

PATH Allegheny Virginia Transmission Corp. asked permission from a Virginia regulatory agency to withdraw a proposal to build a 276-mile, $1.8 billion high-voltage transmission line from West Virginia to Maryland, due to a weak economy and a growing energy conservation movement.

PSE&G, in a brief letter to the BPU on Thursday, said problems in Virginia and West Virginia had no impact on its power needs or the Susquehanna-Roseland project. But the board demanded a detailed analysis from PSE&G as soon as possible.

“We are disappointed in the board’s action to delay the decision on this important electric reliability project. We are considering our options to ensure that the region’s electric customers have the safe, highly reliable service they have come to expect,” said PSE&G spokeswoman Karen Johnson.

Lawrence Ragonese may be reached at (973) 539-7910 or lragonese@starledger.com

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State officials delay decision on PSE&G powerline for a month

By COLLEEN O’DEA • STAFF WRITER • January 16, 2010

NEWARK — The state Board of Public Utilities on Friday delayed for a month a decision on Public Service Electric & Gas Co.’s proposal to upgrade its transmission line through Morris, Sussex and Warren counties.

During a special meeting, the board unanimously voted to ask PJM Interconnection, the regional power transmission organization, to explain its position that the $750 million project is necessary.

The board is making the request in light of the recent withdrawal of a line project in Virginia because new forecasts show it will not be needed soon, and the delay of another project in Maryland for a re-evaluation of power need forecasts in that region.

In a letter sent Friday, the board asked whether PJM plans to conduct a needs review for PSE&G’s 47-mile Susquehanna-Roseland upgrade similar to the reviews in the other states, and to explain whether those two delays have any effect on the need for the project here.

Joseph L. Fiordaliso, the commissioner serving as hearing officer for the project, said that PJM’s brief, two-paragraph statement sent Thursday to the BPU affirming the project’s need was not enough.

“We need more than this summary statement. We need PJM to state how it reached this conclusion,” Fiordaliso said.

The delay cheered the 17 interveners, including several Morris and Sussex municipalities, the Montville Board of Education, environmentalists and a citizens group, all of which oppose PSE&G’s plan to add 500-kilovolt lines to towers reaching as tall as 195 feet. They had been unhappy that Pennsylvania authorities on Thursday approved the part of the line in that state.

“We hope they are going to get a sensitive analysis done. We hope that will show the line is not necessary,” said Dave Slaperud of the Stop the Lines citizens group.

“There is a safer and better way to do this,” said East Hanover Mayor Joseph Pannullo, who opposes the upgrade because he believes electromagnetic fields from the lines cause health problems.

Karen Johnson, a PSE&G spokeswoman, said the utility was discouraged by the delay.

“We are considering our options to ensure that the region’s electric customers have the safe, highly reliable service they have come to expect,” Johnson said.

One of those options is to bypass the state review and seek approval from the Federal Energy Regulatory Commission, which can evaluate and OK a project if local authorities have not acted within a year, as is now the case here.

Efforts by PSE&G to settle differences with officials along the line by paying amounts ranging from $200,000 to more than $400,000 to cover costs associated with construction were largely rejected — only three of 16 towns affected agreed to the settlements.

Colleen O’Dea: 973-428-6655; codea@gannett.com.

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Susquehanna-Roseland line approved with conditions in Pennsylvania; New Jersey vote is delayed

By Express-Times staff
January 15, 2010, 8:38PM

The New Jersey Board of Public Utilities today postponed its vote on a Pennsylvania-New Jersey power line that would cross the Delaware Water Gap National Recreation Area and a portion of Hardwick Township.

Its delay came a day after the Pennsylvania Public Utility Commission granted conditional approval to the Susquehanna-Roseland project linking the Berwick, Pa., area to Roseland, N.J.

Allentown-based PPL Electric Utilities proposes building the Pennsylvania portion of the 500-kilovolt line, with Public Service Enterprise Group picking up the project at the New Jersey border and continuing it along an existing 230-kilovolt line.

PSE&G says the 130-mile line is mandated by PJM Interconnection, the regional entity responsible for planning the transmission system, to meet projected regional demand. Its $900 million to $1 billion cost would be shared among the 51 million electric customers in the PJM region covering 13 states and the District of Columbia, according to the utility company.

Pennsylvania officials’ approval is not final until an order is entered by the utility commission. Among conditions imposed in Thursday’s votes are that construction may not begin until the National Park Service issues necessary permits to build in the Delaware Water Gap area. The park service has said it does not expect to issue the permits until May 2012. The commission’s approval would expire in three years unless construction has begun, under another condition of approval.

The New Jersey Board of Public Utilities voted unanimously today to consider new evidence on the need for the project, particularly to determine if demand truly exists for the additional power. Board members said they expect to rule on approval within 30 days.

The delay follows a request by PATH Allegheny Virginia Transmission Corp. to a Virginia regulatory agency to withdraw its proposal to build a 276-mile, $1.8 billion high-voltage transmission line from West Virginia, through Virginia and to Maryland. The company cited a weak economy and growing energy conservation movement.