Legalectric

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

================================================================

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.

Susquehanna-Roseland Reply Briefs were due yesterday — I’m representing Stop the Lines.

So it’s nap time today…

Here they are!

STL – Reply Brief

STL – Certification & Exhibits

Municipal Intervenors Reply Brief

Environmental Intervenors Reply Brief

Environmental Intervenors – Certification

Environmental Intervenors – Exhibits

Montville Board of Education Reply Brief

New Jersey Rate Counsel Reply Brief

PSEG Reply Brief

Hmmmmmmmmm… I don’t see anything from Exelon…

Happy reading!  Dig some of the exhibits, like the Motion to Withdraw from PATH-VA, the PJM 2010 Load Forecast (which shows demand has been down down down since the peak of 2006), and the sensitivity analysis that shot down PATH in Virginia!

… before they back off on these stupid infrastructure projects?

We finished up the Susquehanna-Roseland hearing today, Stop the Lines has weighed in.  Time to say goodbye to beautiful downtown Newark.

Experts at power line hearing debate safety of EMFs

For me, the best parts today were:

1) Finally… FINALLY… getting some credible testimony about the capacity of that line.  Let’s see, they’re planning to double circuit it with 500kV, getting rid of the 230kV, but when… and they’ve designed the substations for 500kV expansion.  So DUH!  Here’s the poop:

140C for a 1590 ACSR Falcon @ 500kV – PJM summer normal rating conditions = 1838 amps

4 conductors = 7,352 amps

3 conductors – 5,514 amps or 4,595 MVA

2) Clear statement on the record about the Merchant Transmission’s Firm Transmission Withdrawal Rights:

Neptune 685MW

ECP 330 MW (VFT?)

HTP 670MW

TOTAL: 1,670 MW already heading across the river

And getting those numbers in was not easy, PSEG did NOT want this in the record.  It’s confirmed in the PJM Tariff, STL-12, p. 3 of the exhibit, p. 2 of SRTT-114 (BPU Staff IR).  But there’s something else disturbing going on here.  We were supposed to question Essam Khadr about “Leakage,” which is “New Jerseyian” for the increased coal generation that will be imported if CO2 costs are assessed:

BPU’s RGGI Leakage Order December 17, 2008

That will take some time to wrap my head around.

Here’s PJM’s 3Q bad news, well… good news to me!  Because it continues to go down:

PJM 3Q STATE OF THE MARKET REPORT

And if that’s not enough, here’s the Wall Street Journal:

Weak Power Demand Dims Outlook

By REBECCA SMITH

(See Correction below)

Electricity sales remained weak in the third quarter, prompting speculation that the sluggishness could persist even after the U.S. economy rebounds. Some utilities don’t expect power sales to recover to pre-recession levels until 2012 — if at all — because so many factories have closed.

Getting a read on future demand is crucial for utilities because they require long lead times to build power plants and make other upgrades. Declining sales put pressure on utilities to raise prices, cut costs or make other adjustments to bolster profits.
[Workers last month in Charlotte, N.C., home of Duke Energy. ] Associated Press

Workers last month in Charlotte, N.C., home of Duke Energy.

The sector began to feel the recession, which started in late 2007, later than many others. Sales held up well in the first half of 2008 but then declined and have continued falling this year, though some regions are reporting an uptick. The federal Energy Information Administration expects overall electricity sales to decline 3.3% this year and grow modestly next year, but many utilities anticipate far larger declines for the year.

Duke Energy Corp. said its energy sales to the textile industry based in the Carolinas fell 20% in the third quarter, versus a drop of 13.7% for sales to all industrial users. For the first nine months of 2009, electricity sales to the textile industry were down 23.5%, from the prior year, and overall industrial sales were down 15.8%.

American Electric Power Co. of Columbus, Ohio, which owns utilities in 11 states, saw industrial electricity sales plunge 17% for the third quarter versus the year-ago period. Chief Executive Mike Morris said his company is counting on industrial demand recovering about a third of the lost ground in 2010.

Beyond that, he is wary of making predictions. “I don’t know if we’ll ever get all of it back,” he said, acknowledging that factory closings in the auto sector will have a lasting effect.

Larry Makovich of consultancy Cambridge Energy Research Associates is among the few who believe electricity sales will experience a “strong rebound” next year. “It is dangerous to misinterpret a short-run phenomenon as a structural change,” he said.

Atlanta’s Southern Co., which owns utilities in four Southeastern states, has seen year-to-date industrial demand drop 15%, including a 9.6% drop in the past quarter. Chief Executive David Ratcliffe said he sees signs of recovery, but added that it feels “fragile.”

Bill Johnson, chief executive of Progress Energy, which has utilities in Florida and the Carolinas, said he thinks homes mostly have cut use voluntarily, unlike businesses. Total sales fell 10.9% in the first nine months of the year across all customer categories, led by industrial sales that dropped 11.4% in the Carolinas and 12.9% in Florida.

“I think there’s still a high level of concern and a great deal of unease” about the economy, Mr. Johnson said, adding that he doesn’t expect a sharp recovery.

Bob Shapard, chief executive of Oncor in Dallas, said he thinks the drop in energy use in 2008 “was so quick that it wasn’t structural but was probably cyclical.” Nevertheless, he said he doesn’t expect a full recovery in total sales volumes until 2012.

Portland General Electric in Oregon saw residential sales rise 4.6% for the quarter, but the gain was offset by a 5.3% drop in industrial sales.

Utility analyst Chris Ellinghaus at Shields & Company in New York said he isn’t hopeful the sector will recover next year but thinks “2011 will look more normal.”

It’s warm here in New Jersey, unseasonably.  We’re slogging through the hearing.

The good news is that we’ve gotten pretty much everything in the record that we need, including, well not quite, got the 2Q State of Market, and last night I found that the 3Q was released November 13:

(great, can’t upload here, grrrrrrrrrr)

PJM – 2009 3Q State of the Market Report

Page 9 will tell you all about decreased peak demand:

2005          133,761

2006          144,544

2007         139,428

2008         129,481

2009         126,805

Down 2,676 MW this year, down 9947 from 2007 to 2008.  Down every year since 2006!

Here’s a report of yesterday’s festivities:

State told power plan pros, cons

By SETH AUGENSTEIN
saugenstein@njherald.com

NEWARK — Power grid experts testified about the need for the 500-kilovolt Susquehanna-Roseland power line Thursday in front of a dozen attorneys at the offices of the state’s Board of Public Utilities.

The four experts — three from grid operator PJM Interconnection, one from power company PSE&G — stated their case in proposing the power line, which will double the height and power of the existing line from Susquehanna, Pa., to Roseland, in Essex County, cutting through the southern half of Sussex County along the way.

Testimony surrounding routing and construction of the project was put on the record at evidentiary hearings earlier this week by PSE&G experts and engineers. The PJM-dominated needs panel will complete its input today, and will be followed by the objector’s experts. The need issue is considered to be the main question determining the future of the controversial power plans before the BPU.

PSE&G, the state’s largest electric utility, said it needs to build the line and have it operating by 2012 to meet the electricity demands and reliability requirements expected for the region in the coming decades.

Opponents have rallied around several issues, including safety and health issues stemming from having a 500-kilovolt system on the same pole with a 230-kilovolt system, the potential environmental damage the construction project will do, the visual and property value impact of the towers and whether bringing in electricity generated in other states meets New Jersey’s own goals of increasing so-called “green” and renewable sources of power.

Thursday’s seven hours of question-and-answer testimony included hypertechnical engineering explanations, staccato series of acronyms involving state and federal regulatory agencies and figures spanning all details of the $750 million project.

The PJM experts conceded regional power demands have decreased the last three years, but maintain their forecasting models predict increasing power needs beginning in 2012, which could induce brownouts if the line is not built.

“We don’t use actual loads, we use forecasts of loads,” said Steven Herling, PJM’s vice president of planning.

“I can only characterize it as a significant increase,” added John Reynolds, a senior economic analyst at PJM.

Four attorneys cross-examined the experts, with few breaks.

Carol Overland, a lawyer specializing in power grids, represented the Fredon-based citizens group Stop the Lines. Overland peppered the four-man panel with questions for about three hours, with detailed points about the methodology of deciding upon the lines as a power solution.

Catherine Tamasik, the attorney representing a seven-town coalition opposing the lines, followed with questions about determining the need through the peak demand of electricity during hot summer days.

Julia LaMense, the lawyer representing four environmental groups, including the Sierra Club, called into question the pressing need of the lines, as her clients have done since the plan was proposed last year.

Henry Ogden, New Jersey’s assistant deputy public advocate, finished the cross-examination by asking about the strategic routing of the lines, which could coincide with the much-publicized closing of a Bergen County power plant.

Joseph Fiordaliso, Board of Public Utilities commissioner, presided alone over the hearing. He occasionally urged the board’s experts to answer the questions succinctly, and to avoid “dissertations.” He had similar advice for the attorneys.

“I would appreciate it if you would just ask a question,” he said.

Karen Johnson, spokeswoman for PSE&G, said the experts had done an efficient job of presenting what the power company considers an energy necessity.

The opposition attorneys said they were getting the job done.

“We got on the record what we wanted on the record,” Tamasik said.

The hearings are expected to continue today. The state has set aside hearing times through Tuesday, if necessary. The board expects to reach a final decision in January.

Yup, close, but decidedly Newark, New Jersey.  It’s more Alan’s country, he was born just south of here in Elizabeth, maybe the old Elizabeth General Medical Center I drove by???

And a hearing state of mind too, ready to kick in tomorrow.  Hearing — Susquehanna-Roseland transmission at the New Jersey Board of Public Utilities.  Stop the Lines! Stay tuned for reports from the trenches…