Legalectric

PJM’s Plan for Delaware

Sure hope so — they’ve got it coming.  Cost apportionment is a big issue, and for PJM, well, they’d taken their cost apportionment dream to FERC, got the FERC rubber stamp, but it seems they’ve not done a good job of it, according to the Federal Court — that’s old news:

Illinois Commerce Commission v. FERC August 6, 2009

Fast forward to today — turns out Delaware’s Gov. Markell is objecting to costs assessed to Delaware ratepayers, (though I’m not seeing any objection to the project itself coming out of Delaware).  DOH!  He’d better, this project does nothing for Delaware.

Here’s the PJM Planning doc that tells all:

PJM White Paper Artificial Island Project

Note on the first page the statement of need, of why this project is wanted — this is really important:

PJM specified that solution proposals must improve stability margins, reduce Artificial Island MVAR output requirements and address high voltage reliability issues.

So let me get this straight — they’re having stability and reliability issues and PSEG wants to reduce Artificial Island MVAR output requirements, and want to charge Delaware ratepayers for this?  PUH-LEEZE… This is a benefit to PSEG, not Delmarva…

And look what our big-coal friends at ODEC have to say:

ODEC letter regarding Artificial Island 7-29-2015

This project taps into the new line that was built not long ago:

Delaware has no regulation of transmission need or siting — so utilities can pretty much do whatever they want.  Further, it’s a FERC tariff, so the state doesn’t have anything to say about it going into the rates, and cost apportionment.  Great, just great.  So now Markell is objecting?  It’s a little late…

Delaware needs legislation — legislation like a “Power Plant Siting Act” and a legislative requirement of a need determination for whatever infrastructure they think they want.  They need legislation specifying that only Delaware utilities can own and operate transmission in Delaware (see House Bill 387 from the 2014 session).  Here’s what House Bill 387 would have done (It would have been an effective good start, protective of Delaware!), establish that a utility wanting to construct and operate transmission demonstrate NEED!  Here’s the wording, though it would require quite a bit more, and some solid rules, to be effective:

(5)Public utility electric transmission service providers must have a certificate of public convenience and necessity for the construction and operation of any new electric transmission lines operating at 100KV or greater and located in the State or offshore waters and integrated with the State electric transmission grid.In granting such certificate, the Commission shall consider:

a.the need for the proposed transmission line;

b.the impact on the reliability of the transmission grid

c.the long term viability of the public utility proposing the line;

d.the technical engineering and operating expertise of the public utility;

e.the technology and design proposed for the new transmission line; and

f.the economic and safety impact of the proposed transmission line.

Here’s the report about this PJM approval from Jeff Montgomery, News Journal:

Disputed cost-shares remain in plan for new power line

Note this snippet:

PJM officials said regional and federal rules and precedents obliged the organization to assign 99.99 percent of costs to Delmarva’s transmission zone, mostly in Delaware and Maryland.

The total includes the cost of a $146 million power line installation under the Delaware River and $68 million worth of transformer and substation work by Public Service Electric and Gas at the Artificial Island nuclear complex along the Delaware River southeast of Port Penn.

The Delaware Public Service Commission estimated that transmission costs would increase by about 25 percent in Delaware because of the plan.

“For the average residential consumer, monthly electric bills could increase by several dollars. For the average business, the increase may be more significant,” Markell said in his objection. “Some of our heaviest users could see increases of hundreds of thousands of dollars.”

And here’s the schedule for this project going forward from the PJM Board meeting yesterday:

Seems there’s an opportunity before the FERC ALJ.  But before then?  What is Delaware going to do?  Well, take a look at what Illinois did when it didn’t appreciate the FERC Cost Apportionment scheme — they sued FERC and won, based on the notion that if they weren’t benefitting, they shouldn’t be the ones paying:

Illinois Commerce Commission v. FERC August 6, 2009

The FERC Cost Apportionment scheme was remanded, and it’s in settlement negotiations right now.  What is Delaware doing in that docket?  To review the public postings, go HERE and search for FERC Docket EL05-121.  The next settlement conference is Thursday, August 6, 2015, starting at 10:15 a.m. in a hearing room at FERC HQ.  Delaware is represented in this, at least there are Delaware PSC staff listed on the service list, Janis Dillard, John Farber, and Robert Howatt.  So what are they doing about this cost apportionment scheme?  Seems this settlement conference is just the place for raising a stink about the PJM cost apportionment scheme, to raise issues of “benefits” and “cause cost, pay” arguments.  Are they showing up and speaking up for Delaware?

Delaware’s a small state, and it’s just the wrong shape for getting a good transmission map.  Click the above one for a larger view, but it’s still hard to see.  But check it out!  Take a look at that black line, stretching from Red Lion down to Milford.  That’s the 230 kV line that Delmarva Power wants to rebuild.  If they play this as I think they will (please prove me wrong), they could use this “rebuild” to significantly increase transfer capacity, which given the withdrawal of the Mid-Alantic Power Pathway (MAPP) transmission project, that’s something to watch for.

Public meeting about transmission line rebuild

7 p.m. Wednesday, Jan. 7, 2015

Odessa Fire Company

304 Main St., Odessa, Delaware

Hosted by Delmarva Power

There’s essentially no regulation of transmission in Delaware, a fact that’s hard to believe given the impacts and power associated with transmission.  This project is intended to go right down an existing easement, but the original line was built 50 years ago, and there’s been a lot of development in Delaware since then.  Look at the map, and there’s a lot of development right next to this transmission line.  Do you think these folks know anything about this transmission plan?  Do you think anyone along that easement is getting direct notice about this???

At first glance, a couple of things occur to me.

• Rebuild?  As always, I want to know the details.  they say it will still be at 230 kV.  Let’s have the conductor specs, particularly.  How big a conductor are they using, ACSR or ACSS or higher capacity?  Will they be rebuild as a single or double circuit, and will it be bundled or not?  Here’s the photo of the line, photo from Snooze Urinal, and it’s as it looks to me from driving under it numerous times on the way to/fro Port Penn:

Photo from The News Journal, delawareonline.com

• Use of existing easement or extending beyond?  In their press release, there’s something disturbing about how they say they’re going to build this thing:

The replacement transmission line will be built along the eastern border of the existing right-of-way so that service will not be affected during construction. The original transmission line will be removed once the entire project is completed.

So looking at this photo above, it’s facing north, the H-frames are on the east side, the monopole on the west, and the News Journal report says:

The project will take place in the current line’s right of way, so no property purchases will be required, Tedesco added.

How is that possible?  The H-frames have been there a long time, and rather recently they added the monopole next to it.  Now now this will be “built along the eastern border of the existing right-of-way.”  EH?  Here’s an example, at the intersection of Port Penn Rd. and the line, the “east” is on right on this photo/map (click photo for larger version):

This is what it looks like at the road, looking down the easement with home on the left:

And here’s another example, at the intersection of Pole Bridge Rd. and the transmission lines, also on the way to/fro Port Penn, note the new subdivision roads, Waterbird Lane and Marsh Hawk Court:

Here’s another at 955 Vance Neck Rd (the road is just to the south):

Let’s keep going further south along the easement.  Here are homes along Old Corbett Rd. near the intersection of Hwy. 9 — note it’s turned around to fit better, the “easterly” direction they’ll build into is the area towards the homes:

Here’s another subdivision on the other side of Hwy. 9, and the homes along Middessa Drive:

Just a little further south, where the line turns southwesterly, the line is abutted by the homes on Mailly Drive and Corbit Sharp Drive:

Here’s what that easement looks like — build this new thing on the easterly border of the easement?  I think not!

And this northern Red Lion to Milford section of the transmission “rebuild” terminates at the Cedar Creek substation, technically in Townsend:

Again, do you think these folks know anything about this transmission plan?  Do you think anyone along that easement is getting direct notice about this???

Here’s Delmarva’s Press Release:

 Press Release 12/23/2014 – Delmarva Power Project to Benefit Delaware

Here’s the report from the News Journal:

Delmarva to brief public on transmission line rehab

Xerxes Wilson, The News Journal 12:11 a.m. EST January 3, 2015

The electrical spine of Delaware is set for a $70 million rehabilitation.

This summer, Delmarva Power will begin replacing its transmission line running from the substation in Red Lion 58 miles south to the Milford substation in Sussex County.

The utility will host a public meeting to brief the community on the project on Wednesday in Odessa.

Transmission lines serve as electrical highways carrying power from generation plants to substations before the electricity flows to homes through local lines.

The bulk of this particular project will involve removing the towering H-frame double wood poles that currently support the line. Those poles will be replaced with single steel poles towering up to 140 feet above the landscape.

The new supports will be able to withstand 100 mph winds and will replace infrastructure that was built more than half a century ago. The new line will carry the same voltage, some 230,000 volts, as the old line.

The rehabilitation will not effect customer’s power supply. Though requirements of road crossing permits are not final, the company does not expect the project will necessitate any road closings, according to Frank Tedesco, spokesman for Delmarva.

The project will take place in the current line’s right of way, so no property purchases will be required, Tedesco added.

The company will seek leasing agreements with individual property owners for space temporarily needed for construction.

“This project will strengthen our system and ensure that we can continue to meet our customers’ energy need,” Gary Stockbridge, Delmarva Power region president, said in a written statement.

The company noted the rehabilitation will ensure it meets reliability standards set by the North American Electric Reliability Corporation.

The project will be divided into two phases, the first stretching 15 miles between Red Lion and Cedar Creek. That phase will begin later this year with the second beginning in summer 2016.

Contact Staff Writer Xerxes Wilson at (302) 324-2787 or xwilson@delawareonline.com.

 For more information:

Delmarva Power will host a public meeting at 7 p.m. Wednesday, Jan. 7, at the Odessa Fire Company, 304 Main St. in Odessa.

Slowly but surely, Delmarva Power/PEPCO is admitting the Mid-Atlantic Power Pathway (MAPP) isn’t needed. We’ve weathered the weather, and they’re not even utilizing demand response, so where’s the need?  They’ve delayed this project, shortened it when they cut out the part through Delaware from Indian River Power Plant to the Salem nuclear plant, delayed and delayed, and now they’re REALLY delaying it, putting it off until at least 2019-2021.

Remember how the sky would fall and we’d be sweltering in the dark on a respirator without a job if this didn’t go through right away?  Well, guess again, and again, and again… the system is just fine, we can turn the lights on, we’re OK, and this line still isn’t needed and won’t be, probably ever!

MAPP PHI announces delay in project 8-19-11

From MAPP’s corporate parent, PEPCO Holdings Inc.:

As the Environmental Coordinator for the Mid-Atlantic Power Pathway (MAPP), I want to provide you with a brief update on the project.

As you may recall, MAPP is a proposed, high-voltage, electric transmission line that Pepco Holdings, Inc. (PHI) plans to build, beginning in northern Virginia, crossing the southern and eastern shores of Maryland, and ending in Delaware.

I want you to know that PHI has notified the Maryland Public Service Commission and Virginia State Corporation Commission that the company is requesting temporary delays in the Commissions’ reviews of the respective applications filed by the utility’s subsidiaries, Pepco and Delmarva Power, for state regulatory approval of MAPP. These requests were filed after PJM Interconnection’s recent analyses indicated that the MAPP in-service date should be moved from 2015 to the 2019-2021 time frame. (PJM is the operator of the regional electric power grid).

However, PJM is also currently evaluating the criteria it uses to determine the need for transmission projects. Once this process is completed, PJM will reassess the need and timeline for transmission expansion in the region.

At this time, PHI will review the work required to support MAPP based on the new in-service date, and will keep you informed on subsequent developments regarding this project.

Please be assured that PHI and PJM are dedicated to maintaining the reliability of this region’s transmission system, and will continue to analyze the need for new transmission projects that provide safe and reliable service for customers.

For additional information about MAPP, please visit the project website at www.powerpathway.com or contact me via phone at 302-283-6115 or e-mail at mark.okonowicz@pepcoholdings.com.

Also, members of our MAPP team would be happy to meet with you in person to discuss the project. Please let me know if you would like to have a meeting scheduled.

Sincerely,
Mark Okonowicz
MAPP – Environmental Coordinator

There a link on the Press Release to a PJM letter:

PJM’s MAPP Letter to PEPCO

The MAPP transmission project is needing a DOE EIS because they’re getting DOE funding for it.  What’s the status on that?  D-E-L-A-Y… delay delay delay…

DOE’s Key EIS Schedule

The MAPP EIS doesn’t seem to be happening… The DOE site says that it was to be released next month, or maybe December, but rumor has it that the DOE is waiting on info from the applicants… delay delay delay… and in the meantime, the DOE is still accepting (sounds like REQUESTING) Comments:

Community and Environmental Defense Services states that:  While the Scoping comment period ended April 4, 2011, DOE will continue accepting comments, which should be directed to:

Douglas Boren
Office of NEPA Policy and Compliance (GC–54)
U.S. Department of Energy
1000 Independence Avenue, SW.,
Washington, DC 20585
Douglas.Boren@hq.doe.gov
Fax: 202–586–7031
202–287–5346

Again, contact info if you’d like to send a “Thank You” note of appreciation  to Mark Okonowicz and PEPCO for admitting what we’ve all known all along, that this MAPP transmission line is not needed:

302-283-6115

or

mark.okonowicz@pepcoholdings.com

I got word a couple days ago that the MAPP transmission line, Mid-Atlantic Power Pathway (not Mid-Continent Area Power Pool) application has been filed in Maryland.

Here is the Maryland Public Service Commission page for this project.

The Sierra Club has been on the front lines fighting MAPP.  Here’s the SIERRA CLUB MAPP & PATH PAGE.

This is Travis Miller/Morningstar’s take on PEPCO and MAPP:

In our first meeting since the Conectiv sale to Calpine, management detailed its goal of 12% compound annual growth rate in total rate base at power delivery, with transmission rate base more than doubling and distribution rate base climbing $1.4 billion (37%) behind $5.2 billion of capital expenditures the next five years. Of that, its Mid-Atlantic Power Pathway project represents $1.2 billion. The project has been delayed but now appears set to go forward with an in-service date in 2015. Line capacity would be the equivalent of a large coal plant entering the region on an energy basis. Management estimated $150 million-$200 million of energy savings for Maryland customers as a result of the project, all of which is lost margin for area merchant generators.

Here’s PEPCO’s 3Q 2010 Financial Results.

Why isn’t this application reported anywhere?  Well, anywhere that google picks up?

(Just looking for an excuse to trot out that pole-dancing bear!)

BEAR ALERT!!! Couldn’t happen to a more deserving company — Google Alert just sent me notice that one of my “favorite” companies is Zack’s “Bear of the Day!”  Why?  Well, they specifically mention that MAPP transmission project that just doesn’t seem to be needed:

Bear Of The Day: Pepco Holdings, Inc. (POM)

By Zacks Investment Research on June 30, 2010 |

Pepco’s (POM: 15.68 -0.11 -0.70%) $1.2 billion Mid-Atlantic Power Pathway (MAPP) transmission project could be delayed due to slower-than-expected load growth. The PJM Interconnection is expected to update the Regional Transmission Expansion Plan (RTEP) in June 2010 and a 1-2 year delay in the project is likely.

Pepco Holdings current trailing 12-month earnings multiple is 17.5, compared to the 21.0 average for the peer group and 18.7 for the S&P 500. Over the last five years, the company s shares have traded in a range of 7.4x to 22.6x trailing 12-month earnings. The trailing 12-month EV/EBITDA multiple is slightly above the industry average.

Check out their individual reports for other utilities and industries.  Let’s hear it for the capital market crash — ain’t the depression grand?!?!?!

How bad is it?  First the Indian River to Salem leg is cancelled, then the whole thing is suspended… and here we sit… waiting… and we all know that PJM demand is down the toilet.

Click here for the last RTEP Mid-Atlantic subcommittee presentation — see if you can download it!

CLICK HERE FOR LATEST TEAC PRESENTATION

And they opened an office and now they announce:

MAPP Office Hours Change

The MAPP Office, located at 828 Airpax Road, Suite B700, Cambridge, Md., has adjusted their hours to coincide with the present patronage of the office.  The new hours will be Mondays from 9 a.m. to 3 p.m., Wednesdays from 9 a.m. to 1 p.m. and Fridays from 9 a.m. to 1 p.m.  Evening hours are available upon request by calling 410-221-6207.

Meanwhile, we wait for the RTEP that just won’t come out.  How delayed can it get?  I guess all that backwards engineering to demonstrate need takes a while, eh?