PSC staff seeks pause or dismissal of MARL line proceeding, pending proposed and possible changes
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dbeard@dominionpost.com
MORGANTOWN - Public Service Commission staff has asked the PSC to either pause NextEra Energy Transmission MidAtlantic’s MidAtlantic Resiliency Link Project case, or dismiss it, in light of project changes requested by NextEra and new directives from the Federal Energy Regulatory Commission that staff said bring uncertainty to the project.
SUBHEAD Project changes
On July 30, NextEra submitted five proposed route revisions to the PSC for its approval. It termed the revisions as minor.
But staff told the PSC that the route revisions affect three landowners not previously affected by the route, and the case timeline doesn’t allow the three adequate due process. Also, the revisions add nearly $1 million to the project cost.
A quick summary of the requested revisions:
The state Division of Natural Resources requested NextEra (referred to as NEET MA throughout the filings) to evaluate a route revision to avoid and/or minimize further forest fragmentation within the White Horse Mountain Wildlife Management Area in Hampshire County. The changes would add $334,611 (0.029%) to the project cost, covered by the project contingency.
An affected landowner asked NEET MA to adjust the centerline of the proposed route to be further away from the residential dwelling located on their property. This would increase project cost by $198,668 (0.017%), covered by project contingency.
An affected landowner asked NEET MA to adjust the centerline of the proposed route to be further away from the residential dwelling under construction on their property that would be within the right-of-way corridor. The revision would include one new affected landowner who will require notice. This revision would reduce project cost by $13,918 (0.0012%).
During NEET MA engineering and construction review, it was determined that the topographic and steep terrain associated with the existing transmission line crossing was a constructability concern. This revision includes two new affected landowners who will require notice. It would increase project cost by $440,393 (0.037%), covered by project contingency.
An affected landowner requested that NEET MA relocate the proposed structure to provide for a more suitable location in relation to existing structures on the property. The revision also reduces heavy angles, resulting in a straighter and more efficient design. It would increase project cost by $35,565 (0.003%), covered by project contingency.
Staff said, "Staff disagrees with NEET MA's description of the revisions as minor. These five route revisions result in a total project increase of $995,319, which is almost a million dollars."
The proposal doesn’t give the new affected landowners time to review the project (nearly 4,000 pages), intervene and offer testimony, staff said. The last public comment hearing was June 11 and intervenor testimony is due by Sept. 8 for the Oct. 26 evidentiary hearing.
"Staff, which includes financial and engineering professionals with expertise in utility regulation, has spent months reviewing and analyzing the Application and the thousands of pages of discovery that have been exchanged," it said. "Now, NEET MA expects laypeople who are impacted by the line to be able to determine the best way to advocate for their interest in less than 39 days."
This denies those landowners due process, staff said. Also, the route revision to address topographic challenges should have been addressed before NEET MA applied with the PSC.
"NEET MA’s failure to properly identify constructability issues gives Staff great concern regarding the completeness and accuracy of the Application. Failure to identify a constructability issue shows a lack of thorough attention to detail that is required for a project of this scope," staff said. This suggests more such issues could arise.
SUBHEAD FERC orders
On June 18, staff said, FERC issued orders concerning transmission line planning and large load data center customers - applied to all six regional gird operators, including PJM.
The FERC orders, staff said, made preliminary findings that PJM’s Open Access Transmission Tariff (which sets terms, conditions and rates for public utilities to provide open access transmission service on a comparable basis to the transmission service they provide themselves, according to FERC and an AI summary) "appears to be unjust, unreasonable, or unduly discriminatory or preferential."
PJM and transmission owners have been required to address, in detail, nearly all aspects of the tariff, staff said, and show cause why there should not be significant changes made. "The introduction of multiple variables to the pending [NEET MA] application has created gaps in critical data that must be considered before a decision is made."
Staff continued, "Consideration of the pending application, as filed, presents a risk to West Virginia ratepayers that may be unfairly required to cover the cost of the MARL line. ... PJM's tariff appears to be unjust and unreasonable because it lacks adequate mechanisms to mitigate the risk of cost shifting among transmission customers, which may result in unjust and unreasonable rates for transmission service."
Staff noted that NextEra unexpectedly added rate impacts for customers of Appalachian Power and Wheeling Power that were not in the original application.
"The fact that oversights of that magnitude occurred under the current PJM tariff that existed throughout the entire development process of the application lends further support to the importance of pausing this pending application to ensure that the full magnitude of effects to West Virginia ratepayers are understood in light of the sweeping changes to PJM's tariff that are underway," staff said.
NextEra should be required to provide the PSC with information on how the FERC orders will affect the project, staff said, including "if the data centers would still come to fruition if a major portion of the cost to construct MARL and related network upgrades is shifted from ratepayers within PJM at large to the individual data center customers that NEET MA currently intends to serve."
Staff said the proposed changes call for the application process to be paused for a minimum of 60 days to allow the new affected landowners time to participate and to allow staff to investigate and analyze the changes.
Also, FERC’s order regarding transmission service planning and data centers, "which happen to be the exact two major components involved in NEET MA's pending application," will require reevaluation of and likely revisions to the application.
"Should NEET MA decline to agree to request a tolling [pause] of this proceeding, staff recommends this Application be dismissed for lack of completeness."
NextEra has not yet filed its response to the staff request.