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Control Number: 48212
illiglinn Item Number: 2
Addendum StartPage: 0
Golden Spread Electric Cooperative, inc. A loochmone Encto"Coorcratzvc
201B APR 16 AM II: 56
Application to Amend a Certificate of Convenience and Necessity
CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO PUBLIC USE IN CONCHO COUNTY, TEXAS
Public Utility Commission of Texas Docket No. 48212
Golden Spread Electric Cooperative, Inc.
Certificate No. 30189
Submitted April 16, 2018
PUC DOCKET NO. 48212
APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 KV TRANSMISSION LINE TO PUBLIC USE IN CONCHO COUNTY, TEXAS
PUBLIC UTILITY COMMISSION
OF TEXAS
GOLDEN SPREAD ELECTRIC COOPERATIVE, INC.'S APPLICATION TO AMEND ITS CERTIFICATE OF CONVENIENCE AND
NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 KV TRANSMISSION LINE TO PUBLIC USE IN CONCHO COUNTY, TEXAS
TABLE OF CONTENTS
I. INTRODUC TION 3
II. JURISDICTION AND AUTHORITY OF THE COMMISSION 4
III. GOLDEN SPREAD AND ITS MEMBERS 4
IV CRMWD AND ENTERPRISE FACILITIES 5
V. NEED FOR SERVICE 6
VI ALTERNATIVES FOR PROVIDING SERVICE TO ENTERPRISE 6
VII. GOLDEN SPREAD'S PLAN 7
VIII. GOLDEN SPREAD'S CCN APPLICATION 8
IX. REQUEST FOR WAIVERS OF CCN APPLICATION REQUIREMENTS .9
X. PROPOSED NOTICE 9
XI. REQUEST FOR EXPEDITED CONSIDERATION 1 0
XII. PRAYER 1 1
PUC Docket No. 48212
1
EXHIBITS
Exhibit A - Direct Testimony of Bret Yeary
Exhibit B - Direct Testimony of Philip M. Dean
Exhibit C - CCN Application Form and Attachments
Attachment 1 Contingent Purchase and Sale Agreement
Attachment 2 Typical Tangent Structure Drawing
Attachment 3 Enterprise Request for Service
Attachment 4 Interconnection Agreement
Attachment 5 AEP Load Increase Study Report
Attachment 6 Purpose and Need Study
Attachment 7 Transmission System Schematic
Attachment 8 Map of Existing Line and Nearby Transmission Lines
Attachment 9 Overview Map
Attachment 10 Inset Map of New Line Extension
Attachment 11 Easements for New Line Extension
Attachment 12 Notice Letter
Attachment 13 ERCOT Communication
Attachment 14 Easements for Existing Line
Attachment 15 Sworn Affidavit of Bret Yeary
PUC Docket No. 48212
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PUC DOCKET NO. 48212
APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 KV TRANSMISSION LINE TO PUBLIC USE IN CONCHO COUNTY, TEXAS
PUBLIC UTILITY COMMISSION
OF TEXAS
GOLDEN SPREAD ELECTRIC COOPERATIVE, INC.'S APPLICATION TO AMEND ITS CERTIFICATE OF CONVENIENCE AND
NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 KV TRANSMISSION LINE TO PUBLIC USE IN CONCHO COUNTY, TEXAS
TO THE HONORABLE PUBLIC UTILITY COMMISSION.
Golden Spread Electric Cooperative, Inc. ("Golden Spread" or "GSEC") files this
Application to Amend its Certificate of Convenience and Necessity for the Conversion of
CRMWD's Private 69 kV Transmission Line to Public Use in Concho County, Texas
(Application"), and respectfully shows the following:
I. INTRODUCTION
Golden Spread seeks an amendment to its certificate of convenience and necessity
("CCN") (No. 30189) to convert to public use an existing 69 kV transmission line privately owned
by the Colorado River Municipal Water District (CRMWD"), so that the line may be used to
supply power to both CRMWD and a new power customer.
Golden Spread is a transmission service provider in ERCOT and SPP. Golden Spread and
its member, Coleman County Electric Cooperative, Inc. ("Coleman Electric"), received a request
from Enterprise Products Partners L.P. ("Enterprise') to provide transmission voltage (69 kV)
retail electric service to Enterprise's new pipeline pumping station (the "Millersview Pump
Station"). The Millersview Pump Station will be located in Coleman Electric's singly certificated
retail service area in Concho County, Texas. Coleman Electric asked that Golden Spread supply
wholesale power to Coleman Electric at a delivery point near a substation being constructed by
Enterprise for its Millersview Pump Station. CRMWD owns and operates a 12.6-mile private 69
kV transmission line that serves CRMWD s O.H. Ivie Reservoir water pumping facilities (the
PUC Docket No. 48212
3 3
"Existing Line"), located approximately 0.85 miles away from the Enterprise project site. The
Existing Line has sufficient capacity to serve both the CRMWD load and the new Enterprise load.
Golden Spread has entered into a contingent contract to purchase the Existing Line from
CRMWD.1 In this proceeding, Golden Spread seeks to amend its CCN to add the Existing Line
and convert it to public use, so that Golden Spread may operate the line as a public utility facility
in ERCOT. Granting the requested CCN amendment will enable Golden Spread to provide
wholesale power to Coleman Electric and Coleman Electric to resell the power at retail to
CRMWD, Enterprise, and others who may request service in the future.
II. JURISDICTION AND AUTHORITY OF THE COMMISSION
The Commission has jurisdiction over Golden Spread's application to amend its CCN
Particularly, the Commission has authority to regulate certification to the extent provided in
Chapter 37 of PURA, as provided in PURA § 41.004.
Golden Spread does not seek approval to purchase the Existing Line because the
transaction is not within the jurisdiction of the Commission. The transaction (a) involves two
parties that are not electric utilities for the purpose of the sale, (b) does not involve the transfer of
any certificated rights or facilities currently regulated by the Commission, and (c) involves
consideration of less than $10,000,000. See PURA §§ 14.101, 32.002(6).
III. GOLDEN SPREAD AND ITS MEMBERS
Golden Spread is a not-for-profit electric generation and transmission cooperative
organized under Texas law with its principal place of business in Amarillo, Texas. Its main
corporate purpose is to supply cost effective and reliable wholesale electric power to its sixteen
(16) member non-profit distribution cooperatives ("Members").2 Golden Spread's Members serve
Golden Spread is not requesting PUC approval to purchase the CRMWD transmission line, but intends to close that transaction only if the PUC approves the CCN requested in this proceeding.
2 Fifteen (15) of Golden Spread's sixteen (16) distribution cooperative members operate in Texas. They are Bailey County Electric Cooperative Association (Muleshoe, Texas); Big Country Electric Cooperative, Inc. (Roby, Texas); Coleman County Electric Cooperative, Inc. (Coleman, Texas); Concho Valley Electric Cooperative. Inc. (San Angelo, Texas); Deaf Smith Electric Cooperative, Inc. (Hereford, Texas); Greenbelt Electric Cooperative, Inc. (Wellington, Texas); Lamb County Electric Cooperative, Inc. (Littlefield, Texas); Lighthouse Electric Cooperative, Inc. (Floydada, Texas); Lyntegar Electric Cooperative, Inc. (Tahoka, Texas); North Plains Electric Cooperative, Inc. (Penyton, Texas); Rita Blanca Electric Cooperative, Inc. (Dalhart, Texas); South Plains Electric Cooperative, Inc. (Lubbock, Texas); Southwest Texas Electric Cooperative, Inc. (Eldorado, Texas); Swisher Electric Cooperative, Inc. (Tuba,
PUC Docket No. 48212
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about 290,000 retail electric meters serving their Member-Consumers located over an expansive
area of Texas (an area covering about 24% of the state in the Panhandle, South Plains, and Edwards
Plateau regions of Texas), the Panhandle of Oklahoma, and small portions of Southwestern Kansas
and Southeastern Colorado
Golden Spread's Members provide retail service in the Southwest Power Pool (SPP"),
Electric Reliability Council of Texas (ERCOT"), or both. The transmission facilities that are the
subject of this application are operated by CRMWD in ERCOT and, if purchased by Golden
Spread, will continue to be operated in ERCOT from the Existing Line's current tap point along
American Electric Power's (AEP") Ballinger to Eden 69 kV transmission line.
IV. CRMWD AND ENTERPRISE FACILITIES
CRMWD was formed by the Texas Legislature in 1949. It is a municipal corporation and
water district currently providing water to the cities of Big Spring, Odessa and Snyder.
Historically, it has also provided water to oil and gas producers. CRMWD operates three water
reservoirs. One of the water reservoirs is the O. H. Ivie Reservoir (sometimes referred to as Lake
Ivie) located in Concho County, Texas. At the 0.11. Ivie Reservoir, CRMWD operates water
treatment and pumping facilities. The treatment and pumping facilities are powered by electricity.
In 1995, CRMWD constructed the Existing Line to bring electric power from AEP's Ballinger to
Eden 69 kV transmission line to the O.H. Ivie Reservoir facilities. The Existing Line is owned and
operated by CRMWD as a private line and serves only CRMWD facilities.3 CRMWD is not an
electric utility. Because of this, it is not required to have and does not possess a certificate from
the Commission to operate the Existing Line.
Enterprise is constructing the Midland to Sealy (M2S") segment of its larger Midland to
ECHO crude oil pipeline system for the transportation of crude oil and condensate from the prolific
Midland basin to markets along the Texas Gulf Coast. Enterprise determined the best location for
a pipeline pump station for the M2S segment, also known as the Millersview Pump Station, is off
FM 1929 (Ray Stoker Jr. Hwy) near CRMWD's Lake Ivie pumping facilities. The site chosen by
Texas); and Taylor Electric Cooperative, Inc. (Merkel, Texas). Golden Spread also serves Tri-County Electric Cooperative, Inc. (Hooker, Oklahoma).
CRMWD and Golden Spread are not affiliates within the meaning of PURA. Golden Spread does not own or control any interest in CRMWD and CRMWD does not own or control any interest in Golden Spread.
PUC Docket No. 48212
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Enterprise is in an area of Concho County that is singly certificated for the provision of retail
electric service to Coleman Electric. At the Millersview Pump Station, Enterprise has constructed
a substation designed to convert 69 kV power to a lower operating voltage. Enterprise will own
and operate this substation. The Millersview Pump Station and associated substation are only about
0.85 miles from the Existing Line.
V. NEED FOR SERVICE
Enterprise asked Coleman Electric and Golden Spread to provide 69 kV retail electric
service to the substation at its Millersview Pump Station. This request is the foundation for the
need for electric service to be provided to Enterprise. In its Application, Golden Spread presents
facts regarding the historic and projected loads in the area, as well as projected loads for Enterprise,
which will ultimately be 7.8 MW by 2020. The Application contains a Purpose and Need Study
that establishes a transmission line and substation is the most cost effective and reliable alternative
to meet Enterprise's load requirements.
VI. ALTERNATIVES FOR PROVIDING SERVICE TO ENTERPRISE
Golden Spread engaged C.H. Guernsey & Company ("Guernsey") to assist in evaluating
various distribution and transmission alternatives for meeting Enterprise's load requirements.
Guernsey prepared a Purpose and Need Study (Attachment 6 of the Application), which addresses
load forecasts and service reliability and provides a cost-benefit analysis for service to Enterprise.
Golden Spread evaluated serving the Enterprise load over Coleman Electric's existing
12.5-kV distribution system, converting the Coleman Electric distribution system to 24.9-kV, and
distributed generation, but none of these were viable options due to reliability concerns and
excessive costs. Golden Spread s most economic choices capable of reliably serving the Enterprise
load are: (1) buy the Existing Line and build a short extension to the Enterprise substation; or (2)
construct a new transmission line from an alternative transmission source to the Enterprise
substation. The alternatives that Golden Spread considered are analyzed in detail in the Purpose
and Need Study (Attachment 6 of the Application) and Direct Testimony of Philip M. Dean.
Based on this analysis, Golden Spread concluded the most cost effective and least
impacting alternative to meet the need for this project is for Golden Spread to purchase the Existing
Line and then construct a short 0.85-mile 69 kV extension to the Enterprise substation. Rather than
build a duplicative transmission line, Golden Spread proposes to convert the Existing Line to
PUC Docket No. 48212
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public use, thereby limiting or avoiding additional impacts to landowners, land uses, and the
environment that would be caused by a new transmission line corridor. Only one transmission line
is needed because the capacity of the Existing Line is sufficient to provide power to CRMWD,
Enterprise, and additional future load in the area. Constructing an entirely new transmission line
would essentially double the transmission investment already made by CRMWD, yet neither the
new line nor the Existing Line would exceed 20% of its respective capacity, as explained by Mr.
Dean. This option is also expected to have the shortest time to completion, which is an important
factor given Enterprise's request for service on January 1, 2018, and expectation to have its pump
station fully operational by May 1, 2018, subject to adequate electrical service.
Mr. Dean opines that the Existing Line is constructed, operated, and maintained in
accordance with good utility practice, including the standards of the American National Standards
Institute ("ANSI") and the National Electrical Safety Code ("NESC"). In addition, as evidenced
by the steady-state power flow analysis conducted by AEP in February 2017 (Application,
Attachment 5), interconnection of the Existing Line to the AEP Ballinger to Eden 69 kV
transmission line complies with applicable reliability standards and transmission planning criteria
of the North Am eri can El ectric Reliability Corporati on ("NERC"), the El ectric Reliability Council
of Texas ("ERCOT") (including ERCOT Planning Guide, Sec. 4), and AEP AEP's study
concluded no thermal violations occurred during single outage (N-1) system conditions.
VII. GOLDEN SPREAD'S PLAN
Golden Spread's plan for service to Enterprise includes the following:
(a) Purchase Existing Line. After negotiations, Golden Spread entered into a
contingent contract to purchase the private 69 kV transmission line owned by CRMWD for
$3,500,000, including transmission assets, easements, and land rights. Golden Spread is not
seeking authority from the Commission for this purchase, as the Commission does not have
jurisdiction over Golden Spread's purchase of the private line.
(b) Obtain a CCN Contingent on Closing the Purchase. Golden Spread seeks to
amend its CCN to include the Existing Line. Issuance of a CCN amendment will enable Golden
Spread to convert the private line to public use and provide service to Coleman Electric at
wholesale. Coleman Electric requested, and Golden Spread intends to set, a new wholesale
delivery point at or near the substation being constructed by Enterprise to serve the Millersview
Pump Station.
PUC Docket No. 48212
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(c) Provision of Service to Enterprise. Coleman Electric plans to take wholesale
power from Golden Spread at the new delivery point and resell the power to Enterprise for its
facilities at the Millersview Pump Station.
(d) Provision of Service to CRMWD. Similarly, Golden Spread plans to provide
wholesale power to Coleman Electric over the Existing Line so Coleman Electric can supply retail
power to CRMWD at its O.H. Ivie Reservoir water pumping facilities.
VIII. GOLDEN SPREAD'S CCN APPLICATION
Golden Spread requests approval of its application to amend its CCN to add the Existing
Line and convert it to public use. Issuance of a CCN to Golden Spread will enable Golden Spread
to operate the line in ERCOT as a public utility facility; enable service to CRMWD, Enterprise,
and future loads; and assist Golden Spread in obtaining cost recovery for its investment in a future
proceeding.
As previously explained, Golden Spread does not seek Commission approval of a sale,
transfer, or merger application. Golden Spread's purchase of the Existing Line is not subject to
Commission jurisdiction.
Finally, Golden Spread does not seek an amendment of its CCN to extend transmission
facilities from the Existing Line approximately 0.85 miles to a wholesale delivery point at or near
the Enterprise substation. The new 69 kV extension can be constructed without a CCN amendment
because the line extension meets the requirements for routine activities associated with
transmission facilities that are conducted by transmission service providers as defined in PUC
Substantive Rule 25.101(c)(5)(A). Particularly, the new line extension meets the following criteria:
(i) it will be an extension of an existing transmission line solely to provide service to
a substation or metering point;
(ii) it will be an extension to a substation or metering point that does not exceed one
mile; and
(iii) all landowners whose property is crossed by the new transmission facilities have
given prior written consent in the form of easements.
Attached to this pleading is supporting testimony from Bret Yeary and Philip M. Dean and
a completed CCN application form with attachments.
PUC Docket No. 48212
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IX. REQUEST FOR WAIVERS OF CCN APPLICATION REQUIREMENTS
This case is unusual in part because it involves certification of an existing transmission line
rather than construction of new transmission facilities. The Commission's CCN application form
asks questions and provides instructions that largely presume new construction. Accordingly, not
all of the questions and instructions contained in the Commission's application form are
appropriate with respect to certification of the Existing Line and its conversion to public use. There
is good cause to grant exceptions or waivers of many of the questions and instructions.
Golden Spread has identified in its CCN application each of the questions or instructions
for which it seeks a good cause exception or waiver. In particular, Golden Spread seeks a good
cause exception or waiver from the requirements stated in CCN application form question nos. 17
(routing study), 18 (public meeting or public open house), 19 (routing maps), 21 (habitable
structures), 22 (electronic installations), 23 (airstrips), 24 (irrigation systems), 25 (notice), 26
(parks and recreation areas), 27 (historical and archaeological sites), 28 (coastal management
program), and 29 (environmental impacts).
Golden Spread's CCN application form responses and the supporting testimony of Bret
Yeary and Philip M. Dean recite the facts that show good cause to grant the requested waivers or
exceptions. As is obvious, many of the questions and instructions are not applicable because the
Existing Line already exists and has already been consented to by directly affected landowners.
Granting the requested waivers will assist with the orderly processing of this case without
undermining the Commission's need to have an adequate factual basis for deciding the case.
Granting the requested waivers will also conserve agency and applicant resources.
Accordingly, pursuant to PUC Procedural Rule 22 5(b), Golden Spread requests that the
Commission grant a good cause exception or waiver of the CCN application form and rule
requirements identified above and in the completed application form, as well as any requirements
in the Commission s CCN application form to the extent such requirements are not met by the
filing of this Application.
X. PROPOSED NOTICE
For the reasons stated in Golden Spread's completed CCN application form, and the
testimony of Bret Yeary and Philip M. Dean, Golden Spread proposes to comply with or obtain an
exception or waiver of the notice requirements for its CCN application as follows:
PUC Docket No. 48212
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Notice Requirement Action to be taken
Provide written direct-mail notice to owners of directly affected land
Exception requested - all owners of directly affected land have consented to the Existing Line. See Application, Attachment 14.
Provide written direct-mail notice to utilities that are located within five miles of the routes
GSEC will provide this notice
Provide written direct-mail notice to county and municipal authorities
GSEC will provide this notice to Concho County. There are no incorporated municipalities located within five miles.
Publish notice in newspapers of general circulation in the counties in which the facilities are to be constructed.
Exception requested - all owners of directly affected land have consented to the Existing Line. See Application, Attachment 14.
Public Meeting or Public Open House Meeting Not Applicable. There are less than 25 owners of directly affected land and each has consented. To the extent this requirement still applies, an exception is requested.
For those entities to which GSEC will provide direct-mail notice, a copy of the notice is attached
to the CCN Application as Attachment 12.
XI. REQUEST FOR EXPEDITED CONSIDERATION
Golden Spread is hopeful that this case will qualify as an uncontested CCN proceeding
pursuant to PUC Substnative Rule 25.101(b)(3)(C), or for informal disposition pursuant to PUC
Procedural Rule 22.35(a). But if it does not, Golden Spread seeks expedited consideration of the
Application. Enterprise requested service by January 1, 2018, a date which has already passed.
The Millersview Pump Station began initial operations on November 15, 2017, and could be fully
operational by May 1, 2018, subject to adequate electrical service. Providing service to Enterprise
is urgent. Given the truncated nature of this Application and the urgent need for service, and if the
case does not qualify for informal disposition, Golden Spread requests that the Commission issue
a final order in this case by no later than 6 months after filing.
PUC Docket No. 48212
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XII. PRAYER
Golden Spread respectfully requests that the Commission.
(i) docket this Application upon receipt hereof;
(ii) issue an order requiring Commission Staff to comment on the following:
- the material sufficiency of this Application,
- the sufficiency of the proposed notice,
its position regarding whether each of the good cause exceptions or waivers
requested in this Application should be granted, and
whether the Application qualifies for informal disposition;
(iii) establish an intervention deadline 45 days after the filing of this Application,
(iv) schedule a prehearing conference to address the processing of this docket and ruling
upon Golden Spread's requests for good cause exceptions; and
(v) upon hearing on the merits, if necessary, approve Golden Spread's Application and
expeditiously order Golden Spread's CCN be amended to include the Existing Line for public use.
Golden Spread also asks for such other and further relief to which it may show itself entitled.
Respectfully submitted,
C9- Carl R. Galant State Bar No. 24050633
Carl R. Galant Campbell McGinnis Ryan Lammert Brytne Kitchin McGinnis Lochridge LLP 600 Congress Ave., Ste. 2100 Austin, Texas 78701 Phone: (512) 495-6083 Fax: (512) 505-6383 [email protected]
ATTORNEYS FOR GOLDEN SPREAD ELECTRIC COOPERATIVE, INC.
PUC Docket No. 48212
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PUC DOCKET NO. 48212
APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 KV TRANSMISSION LINE TO PUBLIC USE IN CONCHO COUNTY, TEXAS
§ § § § § § § §
PUBLIC UTILITY COMMISSION
OF TEXAS
GOLDEN SPREAD ELECTRIC COOPERATIVE, INC.'S APPLICATION TO AMEND ITS CERTIFICATE OF CONVENIENCE AND
NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 KV TRANSMISSION LINE TO PUBLIC USE IN CONCHO COUNTY, TEXAS
Exhibit A - Direct Testimony of Bret Yeary
12
BEFORE THE
PUBLIC UTILITY COMMISSION OF TEXAS
PUC DOCKET NO. 48212
APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY
FOR THE CONVERSION OF CRMWD'S PRIVATE 69 KV TRANSMISSION LINE TO PUBLIC USE IN CONCHO COUNTY, TEXAS
DIRECT TESTIMONY OF
BRET YEARY, P.E.
ON BEHALF OF
GOLDEN SPREAD ELECTRIC COOPERATIVE, INC.
PUC Docket No. 48212 Direct Testimony of Bret Yeary
1 13
TABLE OF CONTENTS
I. Introduction and Qualifications 3
II. Purpose of Testimony 5
III. Description of GSEC 6
IV. GSEC's Application and the Project 8
V. Notice and Request for Waivers 15
VI. Request for Expedited Consideration 21
VII. Conclusion 22
PUC Docket No. 48212 Direct Testimony of Bret Yeary
2 14
1 1. introduction and Qualifications
2 Q. Please state your name and business address.
3 A. My name is Bret Yeary, and I am employed by Golden Spread Electric Cooperative, Inc.
4 (`GSEC") at its headquarters location, 905 South Fillmore, Suite 300, Amarillo, Texas
5 79101-3541.
6 Q. What is your position at GSEC and what are your duties and responsibilities?
7 A. I was recently named the Manager of Plant Performance and Projects at GSEC. In that
8 capacity, I am responsible for GSEC's transmission line projects including those that
9 require a Certificate of Convenience and Necessity ("CCN"). My department and I also
10 provide operational support for GSEC, including managing proj ects throughout the
11 organization.
12 Q. Please describe your professional and educational experience and qualifications.
13 A. I have been employed by GSEC in various project management roles for five years. In my
14 position as Manager of Plant Performance and Projects at GSEC, I have prepared or
15 supervised the preparation of GSEC's most-recent CCN applications for transmission line
16 projects, including this one. I attend all hearings on the merits on such applications before
17 the Public Utility Commission of Texas ("PUC" or "Commission") and the State Office of
18 Administrative Hearings ("SOAH").
19 Prior to joining GSEC, I worked for Xcel Energy for seven years as a Project Manager. As
20 Project Manager for Xcel Energy, I planned and led a number of engineering and
21 construction projects including the installation of two new generation plants. These
22 projects required planning and executing all aspects of power projects from permitting
23 through commissioning and turnover for operation. Prior to my time at Xcel Energy, I
24 worked for a consulting firm for fifteen years, providing engineering design and project
25 management services to clients in the electric utility industry.
PUC Docket No. 48212 Direct Testimony of Bret Yeary
3 15
1
My experience includes analyzing and designing electric transmission line structures for
2
voltages up to and including 345 kV, providing construction inspection services for
3
transmission lines, and managing a wide variety of engineering and construction projects.
4
My past duties also include developing transmission structures for Xcel Energy's
5
engineering and construction standards. I received a Bachelor's of Science in Civil
6
Engineering from Texas Tech University in 1988, a Master's of Science in Civil
7
Engineering from Louisiana State University in 1990, and a Master's of Business
8
Administration from Texas Tech University in 2010. I am licensed as a Professional
9
Engineer in the states of Texas (since 1994) and California (since 2001).
10 Q. Have you previously performed work related to transmission line administrative
11 proceedings?
12 A. Yes, I have supervised the preparation of Environmental Reports and Environmental
13 Assessments related to electric transmission line projects in Texas.
14 Q. Is the information contained in your testimony true and correct, within your personal
15 knowledge, and prepared by you or by knowledgeable persons upon whose expertise,
16 judgment, and opinions you rely in performing your duties?
17 A. Yes. In addition, I am custodian of GSEC's records for all sponsored portions of GSEC's
18 CCN application in this docket (collectively, the "Records"). These Records were kept by
19 GSEC in the regular course of business, and it was in the regular course of business of
20 GSEC for its employee or representative, with knowledge of the Records and the CCN
21 application, to make the Records or transmit information thereof to be included in such
22 Records. The Records were made at or near the time of the events they record, or
23 reasonably soon thereafter, and the Records are the originals or exact duplicates of the
24 originals.
25
26
PUC Docket No. 48212 Direct Testimony of Bret Yeary
4 16
1 11. Purpose of Testimony
2 Q. Please describe the purpose of your testimony.
3 A. The purpose of my testimony is to: (1) provide background information regarding GSEC
4 and its proposal to convert Colorado River Municipal Water District's ("CR_MWD”)
5 existing 12.6-mile private 69-kV transmission line (Existing Line) to public use
6 ("Project"), (2) introduce and sponsor certain portions of the application of GSEC in this
7 docket to amend its CCN for the Project (the "Application"), and (3) explain certain aspects
8 of the Project, including (a) the terms of the agreement by which GSEC plans to purchase
9 the Existing Line from CRMWD, (b) the easements reflecting the landowner consents
10 regarding this Project, (c) GSEC's requests for good-cause exceptions to certain portions
11 of the PUC's rules and questions in the PUC's CCN application form, and (d) the requested
12 expedited timeline for processing the Application.
13 Q. What portions of the Application do you sponsor?
14 A. I sponsor the overall Application, and specifically the answers to CCN application
15 Question Nos. 1 (applicant name), 2 (ownership interests), 3 (person to contact), 8
16 (estimated schedule), 12 (financing), 13 (estimated costs), 25 (notice), and 30 (affidavit),
17 along with Attachment Nos. 1, 3, 4, 5, 11, 13, 14, and 15 to the Application.
18 I co-sponsor the answers to CCN application form Question Nos. 4 (project description), 5
19 (conductor and structures), 6 (right-of-way), 7 (substations or switching stations), 9
20 (counties), 10 (municipalities), 11 (affected utilities), 16 (schematic or diagram), 17
21 (routing study), 18 (public meeting or public open house), and 20 (permits), as well as
22 Attachment Nos. 2, 7, and 12 to the Application. In addition, I offer supporting testimony
23 on all of the above.
24 Q. Are any other witnesses providing testimony in support of GSEC's Application?
25 A. Yes, Mr. Philip M. Dean of C.H. Guernsey & Company ("Guernsey") provides testimony
26 (1) in support of and sponsoring certain portions of the Application and its attachments, (2)
PUC Docket No. 48212 Direct Testimony of Bret Yeary
5 17
1 establishing that the CRMWD private 69 kV transmission line is constructed, operated,
2 and maintained in accordance with good utility practice and the proposed interconnection
3 meets industry standards for reliability and transmission planning, and (3) regarding the
4 purpose and need for the Project.
5 III. Description of GSEC
6 Q. Please describe GSEC and its operations.
7 A. Headquartered in Amarillo, Texas, GSEC is a private, not-for-profit electric generation and
8 transmission cooperative corporation organized in Texas and operating under Texas
9 Utilities Code Chapter 161. GSEC is also an "electric cooperative" as defined in Texas
10 Utilities Code section 11.003(9).
11 GSEC is owned by its 16 not-for-profit electric distribution cooperative members,
12 which are:
13 1 Bailey County Electric Cooperative Association—Muleshoe, Texas
14 2. Big Country Electric Cooperative, Inc.—Roby, Texas
15 3 Coleman County Electric Cooperative, Inc.—Coleman, Texas
16 4. Concho Valley Electric Cooperative, Inc.—San Angelo, Texas
17 5. Deaf Smith Electric Cooperative, Inc.—Hereford, Texas
18 6. Greenbelt Electric Cooperative, Inc —Wellington, Texas
19 7 Lamb County Electric Cooperative, Inc.—Littlefield, Texas
20 8. Lighthouse Electric Cooperative, Inc.—Floydada, Texas
21 9. Lyntegar Electric Cooperative, Inc.—Tahoka, Texas
22 10 North Plains Electric Cooperative, Inc.—Perryton, Texas
23 11. Rita Blanca Electric Cooperative, Inc.—Dalhart, Texas
24 12. South Plains Electric Cooperative, Inc.—Lubbock, Texas
PUC Docket No. 48212 Direct Testimony of Bret Yeary
6 18
1
13. Southwest Texas Electric Cooperative, Inc.—Eldorado, Texas
2
14. Swisher Electric Cooperative, Inc.—Tulia, Texas
3
15. Taylor Electric Cooperative, Inc.—Merkel, Texas
4
16. Tri-County Electric Cooperative, Inc.—Hooker, Oklahoma
5 GSEC s Board of Directors is comprised of representatives from each of the above member
6 distribution cooperatives.
7 GSEC was organized in 1984 to provide wholesale power to its members. GSEC seeks to
8 provide adequate and reliable wholesale power to its members at the lowest optimal rate.
9 Power supply agreements exist between GSEC and each of its member cooperatives. For
10 the most part, GSEC's members rely on GSEC to acquire power supplies and arrange for
11 transmission at high voltages through ERCOT and SPP transmission service providers.
12 GSEC is contractually obligated to supply the electricity requirements of each of its
13 members requesting such. The members purchase power from GSEC and provide retail
14 electric service to approximately 290,000 meters located over an expansive area including
15 the Oklahoma Panhandle, small portions of Southwestern Kansas and Southeastern
16 Colorado, and an area covering 24% of Texas, including the Panhandle, South Plains, and
17 Edwards Plateau Regions. The retail member-consumers include residential, agricultural
18 enterprise, heavy and light industry, mining, oil and gas, commercial, and transportation
19 consumers.
20 Q. Please generally describe GSEC's transmission system.
21 A. GSEC holds CCN No. 30189. GSEC owns and operates 342 miles of transmission lines
22 in Texas. Approximately 16% of GSEC's peak load is located within the Electric
23 Reliability Council of Texas (ERCOT"). The ERCOT portion of GSEC's transmission
24 facilities consists of 112 miles of transmission lines, including 3 miles of 138-kV line and
25 109 miles of 69-kV line. The remaining 84% of GSEC's peak load is served from 230
26 miles of GSEC-owned-and-operated transmission lines located within the Southwest
27 Power Pool ("SPP).
PUC Docket No. 48212 Direct Testimony of Bret Yeary
7 19
1 IV. GSEC's Application and the Project
2 Q. Are you familiar with the Application filed by GSEC in this docket?
3 A. Yes. The portions of the Application that I sponsor were prepared by me or by
4 knowledgeable persons working under my supervision and/or whose expertise, judgment,
5 and opinions I rely upon in performing my duties. At my direction, Guernsey also
6 contributed to the preparation of portions of the Application in coordination with me and
7 my staff. I incorporate by reference into my testimony for all purposes the portions of the
8 Application that I sponsor, including the question answers and attachments.
9 Q. Please describe your role in connection with the Application and Project.
10 A. I am the person responsible for the Project on behalf of GSEC. I was involved in
11 discussions with Coleman Electric, CRMWD, and Enterprise to coordinate the Project, and
12 in negotiating the Contingent Purchase and Sale Agreement with CRMWD. GSEC retained
13 Guernsey to assist in preparing the Application, including a purpose and need study. I, or
14 members of my team at GSEC, reviewed and approved all work performed by Guernsey
15 on the Project, relying on my experience, training, expertise, and business judgment as an
16 engineer and project manager.
17 Q. Please generally describe the Project.
18 A. The Project is described in GSEC's Application for an amendment to its CCN filed in this
19 docket. GSEC proposes to acquire a 12.6-mile private 69-kV transmission line currently
20 owned by CRMWD and located in Concho County, Texas—the Existing Line—pursuant
21 to a Contingent Purchase and Sale Agreement. A fully executed copy of the Contingent
22 Purchase and Sale Agreement is attached as Attachment 1 to the Application. Once the
23 Existing Line has been acquired, GSEC plans to convert it to public use so that it may be
24 used to serve multiple customers.
25 Q. What are the terms of the Contingent Purchase and Sale Agreement?
PUC Docket No. 48212 Direct Testimony of Bret Yeary
8 20
1 A. The purchase price for the line is $3,500,000.00, including all transmission facilities,
2 easements, and other land rights associated with the line. The Contingent Purchase and
3 Sale Agreement is conditioned on the issuance of a CCN to GSEC in this proceeding.
4 Q. Is GSEC asking that the Commission approve the purchase and transfer of the
5 transmission line?
6 A. No It is my understanding that GSEC's purchase of the Existing Line is not subject to
7 approval or disapproval by the Commission. This is so in part because the sale is between
8 a private entity, CRMWD, and an electric cooperative, GSEC, neither of which is a public
9 utility or an electric utility as defined in PURA § 31.002(6) with respect to the sale.
10 Moreover, CRMWD does not possess a CCN from the PUC for the Existing Line, thus no
11 certificated rights are being transferred in the transaction, and the sales price is less than
12 $10,000,000. See PURA § 14.101.
13 Q. What is GSEC asking the Commission to do?
14 A. GSEC is asking the Commission to approve an amendment of its CCN to add the Existing
15 Line. Once the Existing Line has been acquired, GSEC proposes to convert the Existing
16 Line from a private line serving only CRMWD facilities to a public utility facility that will
17 serve CRMWD, Enterprise Products Partners L.P. ("Enterprise), and other customers that
18 may request service in the future. A CCN amendment will allow GSEC to dedicate the
19 Existing Line to public use, thus facilitating the provision of service to CRMWD,
20 Enterprise, and other future customers. Approval of this CCN amendment will also assist
21 GSEC in obtaining cost recovery for the Existing Line as part of its ERCOT transmission
22 cost of service in a future proceeding. There is nothing physical about the conversion of
23 the Existing Line from private to public use; no new construction or alteration of the
24 Existing Line is required. The Existing Line already taps American Electric Power's
25 ("AEP") Ballinger to Eden 69 kV transmission line, which is part of the ERCOT system.
26 All that is required is that the Existing Line be dedicated to public use, which will occur
27 when ownership of the Existing Line is transferred to GSEC, by virtue of the fact that
28 GSEC is an electric cooperative providing transmission service to itself and others.
PUC Docket No. 48212 Direct Testimony of Bret Yeary
9 21
1 Q. Please generally describe CRMWD and its facilities.
2 A. As I understand, CRMWD was formed by the Texas Legislature in 1949. It is a municipal
3 corporation and water district currently providing water to the cities of Big Spring, Odessa
4 and Snyder. Historically, it has also provided water to oil and gas producers. CRMWD
5 operates three water reservoirs. One of the water reservoirs is the O. H. Ivie Reservoir
6 (sometimes referred to as Lake Ivie) located in Concho County, Texas. At the O.H. Ivie
7 Reservoir, CR1V1WD operates water treatment and pumping facilities. The treatment and
8 pumping facilities are powered by electricity. In 1995, CRMWD constructed the Existing
9 Line to bring electric power from AEP's Ballinger to Eden 69 kV transmission line to the
10 O.H Ivie Reservoir facilities. The Existing Line is owned and operated by CRMWD as a
11 private line and serves only CRIV1WD facilities. CRMWD is not an electric utility. Because
12 of this, it is not required to have and does not possess a certificate from the Commission to
13 operate the Existing Line.
14 Q. Please describe the Existing Line in more detail.
15 A. The Existing Line was constructed in 1995 by CRMWD. It is approximately 12.6 miles in
16 length, single circuit, and of single wood pole construction with post insulators and 4/0
17 ACSR conductors. The typical structure height is approximately 60 feet, but may vary from
18 55 feet to 70 feet depending on terrain, structure location, and span length. The Existing
19 Line originates at the terminals of an existing switch point along AEP's Ballinger to Eden
20 69 kV transmission line, located seven miles southeast of Paint Rock, Texas and one mile
21 east of U.S. Route 83. The Existing Line extends in a northeasterly direction to the point
22 of attachment of insulators to an existing dead-end tower in CRMWD's existing substation
23 at the O.H. Ivie Reservoir, which substation serves CRMWD's water pump station and
24 related facilities The Existing Line currently only serves CRMWD's substation at this
25 termination point. GSEC is not acquiring the substation that CRMWD owns at this
26 location, except for any transmission facilities associated with the Existing Line that are
27 located within the substation. A map of the Existing Line is included in the Application as
28 Attachment 9.
PUC Docket No. 48212 Direct Testimony of Bret Yeary
10 22
1 Q. Why does GSEC need to acquire the Existing Line?
2 A. Enterprise is constructing the Midland to Sealy ("M2S") segment of its larger Midland to
3 ECHO crude oil pipeline system for the transportation of crude oil and condensate from
4 the prolific Midland basin to markets along the Texas Gulf Coast. Enterprise determined
5 the best location for a pipeline pump station for the M2S segment, also known as the
6 Millersview Pump Station, is off FM 1929 (Ray Stoker Jr. Hwy) near CRMWD's O.H.
7 Ivie Reservoir pumping facilities. At the Millersview Pump Station, Enterprise has
8 constructed a substation designed to convert 69 kV power to a lower operating voltage.
9 Enterprise will own and operate this substation. The Millersview Pump Station and
10 associated substation are only about 0.85 miles from the Existing Line. The Existing Line
11 is needed to serve Enterprise's new pump station load, projected to be 7.8 MW at full
12 development.
13 The site chosen by Enterprise is in an area of Concho County that is singly certificated for
14 the provision of retail electric service to GSEC's member, Coleman Electric. GSEC and
15 Coleman Electric received a request to provide transmission voltage (69-kV) retail electric
16 service to Enterprise's substation that will serve the new pipeline pumping station. /
17 Enterprise requested service to the substation by January 1, 2018, a date that has already
18 passed. GSEC understands the Enterprise pumping station is completely constructed and
19 all systems are checked for operation except those requiring medium voltage power (69
20 kV) to operate. Enterprise desires that the station be fully operational by May 1, 2018,
21 which cannot occur without adequate electrical service. Ultimately, time is of the essence
22 for GSEC and Coleman Electric to provide the requested service.
23 Coleman Electric is obligated to provide retail service to customers like Enterprise that
24 have electric consuming facilities in its service area GSEC supplies wholesale power to
25 Coleman Electric. GSEC is contractually obligated to supply power to Coleman Electric
26 for the Enterprise load. GSEC plans to construct a short transmission extension from the
'Enterprise's request for service (Attachment 3 of the Application) stated 138 kV service, but this was a typographical error and shortly thereafter Enterprise confirmed it was requesting 69 kV service.
PUC Docket No. 48212 Direct Testimony of Bret Yeary
11 23
1
Existing Line and locate a wholesale point of delivery near the Enterprise load so that
2
Coleman Electric can provide electricity at retail to Enterprise. As explained in Mr. Dean's
3
testimony and the Purpose and Need Study at Attachment 6 to the Application, Guernsey
4
has determined that the Existing Line has sufficient capacity to serve both the CRMWD
5
load and the new Enterprise load, as well as projected load in the vicinity.
6 Q. Why does GSEC seek to convert the Existing Line to public use?
7 A. The Project is needed to supply power to: (1) CRMWD's existing load, which already
8 receives electric service through the Existing Line, (2) Enterprise's new load, which is
9 located nearby, and (3) other customers in the vicinity that may later request service. It is
10 important to understand that the Existing Line is owned and operated by CRMWD solely
11 to serve its own electric consuming facilities at the O.H. Ivie Reservoir. Because CRMWD
12 is serving only itself, CRMWD is not an electric utility and does not possess a CCN.
13 CRMWD operates the Existing Line to serve only itself and does not serve others, therefore
14 it is not an electric utility. As long as the Existing Line remains a private line, it can only
15 serve the facilities of its owner, CRMWD. In order to make the Existing Line available to
16 serve CRMWD, Enterprise, and others, an electric utility or electric cooperative like GSEC
17 must own the Existing Line and dedicate it to public use.
18 Q. Would GSEC need additional facilities to serve Enterprise?
19 A. Yes. As I mentioned above, to provide service to Enterprise, GSEC will need to tap the
20 Existing Line and construct a short extension (New Line Extension"). The New Line
21 Extension will be approximately 0.85-miles in length and extend from the Existing Line to
22 a substation near the Enterprise pump station. The CCN authority sought in this case
23 relates to the conversion of the Existing Line and does not include construction of the New
24 Line Extension. However, both the Existing Line and the New Line Extension will be
25 needed to provide service to Enterprise. The need to serve the Enterprise load is part of
26 the justification for acquisition of the Existing Line and its conversion to public use.
PUC Docket No. 48212 Direct Testimony of Bret Yeary
12 24
1
GSEC plans to construct the New Line Extension as a routine activity that is exempt from
2
the requirement to obtain a CCN under Commission rules See PUC Substantive Rule
3
25.101(c)(5)(A). The New Line Extension will be an extension of an existing transmission
4
line solely to provide service to Enterprise's new substation. The New Line Extension does
5
not exceed one mile; it will be approximately 0.85 miles in length. All landowners whose
6
property is crossed by the new transmission facilities have given prior written consent, as
7
reflected by the easements attached at Attachment 11 to the Application (Easements for
8
New Line Extension). Accordingly, in this proceeding, GSEC is not asking for a CCN or
9
other authority relating to the New Line Extension.
10 Q. Did GSEC consider any alternatives to purchasing the Existing Line?
11 A. Yes. GSEC evaluated various distribution and transmission alternatives. GSEC evaluated
12 serving the Enterprise load over Coleman Electric's existing 12.5-kV distribution system,
13 converting the Coleman Electric distribution system to 24.9-kV, and distributed
14 generation, but none of these were viable options. GSEC's most economic choices capable
15 of serving the Enterprise load are: (1) buy the Existing Line and build a short extension to
16 the Enterprise substation; or (2) construct a new transmission line from an alternative
17 transmission source to the Enterprise substation. The alternatives that GSEC considered
18 are analyzed in detail in the Purpose and Need Study, Attachment 6 to the Application, and
19 supporting testimony from Mr. Dean, an engineer and expert in power supply analysis.
20 Based on this analysis, GSEC concluded the most cost effective and least impacting
21 alternative to meet the need for this project is for GSEC to purchase the Existing Line and
22 then construct a short 0 85-mile 69-kV extension to the Enterprise substation. This option
23 is also expected to have the shortest time to completion, which is an important factor given
24 Enterprise's request for service on January 1, 2018 and expectation to have its pump station
25 fully operational by May 1, 2018, subject to adequate electrical service.
26 Q. What is the estimated cost of the Project?
PUC Docket No. 48212 Direct Testimony of Bret Yeary
13 25
1 A. As explained in the Application, GSEC will purchase the Existing Line from CRMWD for
2 $3,500,000.00, which includes all transmission assets, easements, and land rights. The
3 estimated cost of the New Line Extension, which is not part of the Project or this
4 Application, is $913,000. Thus, the estimated total capital cost is $4,413,000. For this
5 price, GSEC could serve the CRMWD and Enterprise loads, as well as have available
6 capacity to serve other future load in the area.
7 Q. Are there other reasons it makes sense to purchase the Existing Line and convert it
8 to public use rather than build a new transmission line?
9 A. Yes. From an economic policy perspective, constructing a new transmission line in the
10 same area as the Existing Line would unnecessarily duplicate the transmission facilities
11 that already exist. Only one transmission line is needed because the capacity of the Existing
12 Line is sufficient to provide power to CRMWD, Enterprise, and future loads. Constructing
13 an entirely new transmission line would essentially double the transmission investment
14 already made by CRMWD, yet neither the new line nor the Existing Line would exceed
15 20% of its respective capacity, as explained by Mr. Dean. Thus, from an economic policy
16 perspective, constructing duplicate facilities is unnecessary and a waste of resources.
17 In addition, if GSEC were to construct an entirely new transmission line, a new
18 transmission corridor would be needed. This would unnecessarily create additional impacts
19 to landowners, land uses, and the environment. GSEC's proposal limits this additional
20 impact.
21 Q. How will the Project be financed?
22 A. GSEC intends to finance the purchase of the Existing Line through long-term debt with
23 National Rural Utilities Cooperative Finance Corporation ("CFC"). GSEC has a line of
24 credit with CFC that is sufficient to cover the acquisition costs and the costs of the New
25 Line Extension. Interest on the debt may be capitalized until the Project is in service, at
26 which point it is intended that both the principal and interest will be serviced with ERCOT
27 Transmission Cost of Service (TCOS”) revenues. To the extent costs to acquire the
PUC Docket No. 48212 Direct Testimony of Bret Yeary
14 26
1 Existing Line are not approved for TCOS recovery by the Commission, those costs will be
2 paid by Enterprise.
3 Q. Did GSEC consult ERCOT regarding the Project?
4 A. Yes. In November 2017, GSEC submitted information regarding the Project to ERCOT for
5 a determination as to whether the Project required Regional Planning Group or other
6 review Jeff Billo with ERCOT responded that the Project qualified as a Tier 4, Neutral
7 project and did not require RPG review. See Application, Attachment 15.
8 In addition, because the Existing Line taps the AEP Ballinger to Eden 69 kV transmission
9 line, which is part of the ERCOT system, GSEC requested that AEP evaluate whether there
10 would be any reliability issues associated with adding the Enterprise load of 7.8 MW to the
11 Existing Line. In February 2017, AEP conducted a steady-state power flow analysis in
12 compliance with North American Electric Reliability Corporation ("NERC"), ERCOT, and
13 AEP transmission planning criteria. The analysis concluded no thermal violations during
14 single outage (N-1) system conditions. AEP's report is attached to the Application as
15 Attachment 5.
16
V. Notice and Request for Waivers
17 Q. What notices of the Application in this proceeding will be given by GSEC?
18 A. As outlined in Question No. 25 of the Application, and required by PUC Procedural Rule
19 22.52(a), GSEC will provide direct-mail notice to utilities located within five miles of the
20 Project, which includes the Lower Colorado River Authority, AEP Texas, Coleman
21 Electric, and Concho Valley Electric Cooperative, Inc. GSEC also will provide direct-mail
22 notice to Concho County and the Office of Public Utility Counsel (OPUC"). The notices
23 will be provided by United States Postal Service First-Class Mail on the date of filing the
24 Application. A copy of the direct-mail notice to utilities, Concho County, and OPUC is
25 attached as Attachment 12 to the Application.
PUC Docket No. 48212 Direct Testimony of Bret Yeary
15 27
1
While PUC Procedural Rule 22.52(a) also requires notice to any municipalities within five
2
miles of the project, there are no incorporated municipalities located within five miles of
3
the Existing Line; therefore, GSEC will not give notice to any municipalities.
4 Q. Does Golden Spread seek a waiver of the requirements to send direct notice of its
5 CCN Application to (1) owners of directly affected land, and (2) Department of
6 Defense Siting Clearinghouse?
7 A. Yes. As discussed in Question No. 25 of the Application, GSEC requests a waiver of each
8 of these notice requirements contained in PUC Procedural Rule 22 52(a). There is good
9 cause to grant a waiver.
10 With respect to directly affected landowners, notice is unnecessary because:
11
• The Existing Line is already designed, constructed, and located on the land.
12
• GSEC is not proposing an alternative route for the Existing Line.
13
• There are no newly-affected landowners along the route of the Existing
14 Line.
15
• Any effects of the Existing Line on directly-affected landowners are already
16 fixed and will not be changed by this Application.
17
• Each of the owners of directly-affected land crossed by the Existing Line
18 have consented to the transmission line by providing an easement
19 Easements for the Existing Line were provided by directly-affected landowners to
20 CRMWD at or near the time the Existing Line was constructed and are shown in
21 Attachment 14. These easements will be transferred to GSEC as part of the closing of
22 GSEC's purchase of the Existing Line. See Application, Attachment 1.
23 With respect to the Department of Defense Siting Clearinghouse, GSEC is not proposing
24 to site or construct any new facilities as a part of this Application Rather, the transmission
PUC Docket No. 48212 Direct Testimony of Bret Yeary
16 28
1
line already exists and there are no newly affected military installations. The location of
2
the Existing Line is already established and well known. This Application does not propose
3
any new structures or lines or the modification of any existing structures or lines that might
4
affect Department of Defense functions, including the flight of military aircraft. Since
5
GSEC is not proposing to site, construct, or modify any new facilities in this Application,
6
it is unnecessary to notify the Department of Defense Siting Clearinghouse.
7 Q. Does the Commission also have requirements for publication of notice in newspapers
8 of general circulation in the counties where the facilities are to be constructed?
9 A. Yes. PUC Procedural Rule 22.52(a) provides in part:
10 Applicant shall publish notice once of the applicant' s intent to secure a certificate
11 of convenience and necessity in a newspaper having general circulation in the
12 county or counties where a certificate of convenience and necessity is being
13 requested, no later than the week after the application is filed with the commission.
14 Q. Does GSEC request a waiver of this requirement?
15 A. Yes, as described in Question No. 25.D of the Application, GSEC requests a waiver of the
16 requirement to publish notice in a newspaper of general circulation in Concho County,
17 where the Existing Line is located. The requirement to publish notice in area newspapers
18 provides additional notice to landowners who may have not received direct mail notice for
19 one reason or another. But in this case, as explained above, all directly affected landowners
20 crossed by the Existing Line have consented to the line. Because GSEC is not constructing
21 new facilities as a part of this Application, the burden on landowners is expected to remain
22 the same. Publication of notice will not reach landowners crossed by the line that have not
23 already consented to the Existing Line. In these circumstances, no benefit is gained by
24 publishing notice in a Concho County newspaper. Accordingly, publication of notice in a
25 newspaper is unnecessary and GSEC seeks a waiver of this requirement.
26 Q. Did GSEC hold any public open house meetings about the Project prior to filing the
27 Application?
PUC Docket No. 48212 Direct Testimony of Bret Yeary
17 29
1 A. No. As discussed in Question No. 18 of the Application, GSEC was not required to hold a
2 public open house meeting because less than 25 persons are entitled to receive direct-mail
3 notice of this CCN application. See PUC Procedural Rule 22.52(a)(4) and Attachment 14,
4 reflecting easements from the eight landowners crossed by the Existing Line Moreover,
5 even if more than 25 persons would be entitled to receive direct mail notice, there is good
6 cause to grant an exception from the requirement to hold a public open house meeting
7 because:
8
• The Existing Line is already designed, constructed and located on the land.
9
• GSEC is not proposing an alternative route for the Existing Line.
10
• As the line already exists, there are no routing constraints or new impacts.
11
• The environmental, ecological, cultural, aesthetic, land use, and other
12 effects of the Existing Line are already fixed.
13
• All directly affected landowners whose property is crossed by the Existing
14 Line have consented to the transmission line.
15 Q. Does the Commission also have requirements for providing a copy of an
16 environmental assessment to the Texas Parks and Wildlife Department ("TPWD")?
17 A. Yes. PUC Procedural Rule 22.52(a)(1)(E) provides for notice to TPWD as follows:
18 The applicant shall provide a copy of each environmental impact study and/or
19 assessment for the project to the Texas Parks and Wildlife Department (TPWD)
20 for its review within seven days of filing the application
21
22 Q. Is this requirement applicable in the circumstances of this case?
23 A. No In this case, because the Existing Line already exists, GSEC's purchase of the Existing
24 Line is not expected to have any additional impact on the environment. Accordingly, GSEC
25 has not prepared an environmental impact study or assessment, so none can be provided to
PUC Docket No. 48212 Direct Testimony of Bret Yeary
18 30
1 TPWD.
2 Q. Has GSEC addressed the questions in the Commission's CCN form application
3 regarding an environmental assessment?
4 A. Yes. The Commission's CCN form application, Question 29, asks in part that the utility:
5 Provide copies of any and all environmental impact studies and/or assessments of
6 the project If no formal study was conducted for this project, explain how the
7 routing and construction of this project will impact the environment.
8
9 The form application does not require an environmental assessment in all circumstances,
10 but specifically contemplates that there may be circumstances in which there is "no formal
11 study." The facts of this case do not warrant the preparation of a formal environmental
12 assessment
13 As explained in Question 29 of the Application, in this case there is not expected to be any
14 additional environmental impact. The purchase of the Existing Line and its conversion to
15 public use will not have any physical or environmental impacts. No new construction is
16 required for GSEC to operate the Existing Line. The Existing Line will be operated and
17 maintained as it is today. The only difference is that the Existing Line will be dedicated to
18 public use so that it may then be used to serve CRIVIWD, Enterprise, and other customers
19 that request service. If GSEC's Application is approved, and GSEC later constructs the
20 New Line Extension, then the amount of electrical energy flowing through the Existing
21 Line will be greater than it is today. But the increased electrical flow is not expected to
22 cause any environmental impacts.
23 Moreover, the Existing Line is already designed, constructed and located on the land;
24 GSEC is not proposing an alternative route for the Existing Line, as the line already exists,
25 there are no routing constraints or new environmental impacts; the environmental,
26 ecological, cultural, aesthetic, land use, and other effects of the Existing Line are already
27 fixed; and all directly-affected landowners owning property crossed by the Existing Line
28 have consented to the transmission line
PUC Docket No. 48212 Direct Testimony of Bret Yeary
19 31
1
Finally, the New Line Extension can be constructed as a routine activity for which a utility
2
is not required to obtain CCN authority or prepare an environmental assessment. GSEC is
3
not seeking approval for any new construction as part of this Application.
4 To the extent necessary, for the reasons stated above, GSEC requests a waiver of the
5 requirement to conduct a formal environmental assessment and to provide a copy of same
6 to TPWD.
7 Q. Did GSEC perform any routing studies, prepare typical routing maps, or address the
8 associated routing requirements for this Project? If not, why not?
9 A. GSEC did not perform any routing studies for this project, as GSEC is not seeking to, nor
10 would it make sense to, reroute the Existing Line. Similarly, GSEC did not prepare routing
11 maps of the type typically submitted with CCN applications, although it has included with
12 the Application several maps to assist the Commission in its review of this case. The
13 requirements for a routing study and routing maps, and the associated requirements in the
14 CCN application form, do not apply to this project for that reason, in particular Question
15 Nos. 17 (routing study), 19 (routing maps), 21 (habitable structures), 22 (electronic
16 installations), 23 (airstrips), 24 (irrigation systems), 26 (parks and recreation areas), 27
17 (historical and archaeological sites), 28 (coastal management program), and 29
18 (environmental impacts).
19 These requirements do not apply in this case because.
20 • The Existing Line is already designed, constructed, and located on the land.
21 • GSEC is not proposing an alternative route for the Existing Line
22 • Because the line already exists, there are no routing constraints to address
23 • The environmental, ecological, cultural, aesthetic, land use, and other
24 effects of the Existing Line are already fixed. ln particular, there are no
25 newly affected existing transmission facilities, radio transmitters and other
PUC Docket No. 48212 Direct Testimony of Bret Yeary
20 32
1 electronic installations, airstrips, irrigated pasture or cropland, parks and
2 recreational areas, historical and archeological sites, habitable structures, or
3 environmentally sensitive areas.
4 • All directly-affected landowners whose property is crossed by the Existing
5 Line have consented to the transmission line. See Application, Attachment
6 14 (Easements for Existing Line)
7 For these reasons, GSEC requests, and there is good cause to grant, a waiver of the
8 requirements to perform a routing study, prepare routing maps, and address the associated
9 requirements stated in Questions 17, 19, 21, 22, 23, 24, 26, 27, 28, and 29 of the
10 Application.
11 In addition, the New Line Extension is a routine activity exempt from the requirements to
12 obtain a CCN. See PUC Substantive Rule 25.101(c)(5)(A). In particular, the New Line
13 Extensi on •
14 • will be an extension from the Existing Line solely to provide service to the
15 Enterprise substation,
16 • will be an extension to the Enterprise substation of approximately 0.85
17 miles, which is less than one mile; and
18 • all landowners whose property is crossed by the New Line Extension have
19 given prior written consent. See Application, Attachment 11 (Easements
20 for New Line Extension).
21 VI. Request for Expedited Consideration
22 Q. Does GSEC seek expedited consideration of this Application?
23 A. Yes. GSEC is hopeful that this case will qualify for informal disposition, pursuant to PUC
24 Procedural Rule 22.35(a). But if it does not, GSEC seeks expedited consideration of the
25 Application. Enterprise requested service by January 1, 2018, a date which has already
PUC Docket No. 48212 Direct Testimony of Bret Yeary
21 33
1 passed. The Millersview Pump Station began initial operations on November 15, 2017, and
2 is expected to be fully operational by May 1, 2018 if 69 kV power is available. Providing
3 service to Enterprise is urgent. Given the truncated nature of this Application, and the
4 urgent need for service, GSEC respectfully requests that the Commission issue a final order
5 in this case by no later than 6 months after filing.
6 VII. Conclusion
7 Q. Does this conclude your testimony?
8 A. Yes.
PUC Docket No. 48212 Direct Testimony of Bret Yeary
22 34
STATE OF TEXAS
COUNTY OF LUBBOCK
BEFORE ME, the undersigned authority, on this day personally appeared Bret Yeary who,
having been placed under oath by me, did depose as follows:
My name is Bret Yeary. I am of legal age and a resident of the State of Texas. The foregoing
testimony, opinions, and exhibits offered by rne are true and correct, and within my personal
knowledge.
SUBSCRIBED AND SWORN TO BEFORE ME by the said Bret Yeary on this, the
71/ j/ — day of April, 2018.
Notary Pu , State of Texas ASH L E DEAN FUS)
No•ru.v S' ‘7 0 'Z.! Texas " Ccrnrr. -Qt4-2021
pe,vv: Notary ;D 131240012 1.0111101111 11111111111•01101111111111POWSPINIMPI IIIIIMINIMM
PUC Docket No. 48212 Direct Testimony of Bret Yeary
23 35
PUC DOCKET 1NO. 48212
APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 KV TRANSMISSION LINE TO PUBLIC USE IN CONCHO COUNTY, TEXAS
§ § § § § § § §
PUBLIC UTILITY COMMISSION
OF TEXAS
GOLDEN SPREAD ELECTRIC COOPERATIVE, INC.'S APPLICATION TO AMEND ITS CERTIFICATE OF CONVENIENCE AND
NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 KV TRANSMISSION LINE TO PUBLIC USE IN CONCHO COUNTY, TEXAS
Exhibit B - Direct Testimony of Philip M. Dean
36
BEFORE THE
PUBLIC UTILITY COMMISSION OF TEXAS
PUC DOCKET NO. 48212
APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY
FOR THE CONVERSION OF CRMWD'S PRIVATE 69 KV PRIVATE TRANSMISSION LINE TO PUBLIC USE IN CONCHO COUNTY, TEXAS
DIRECT TESTIMONY OF
PHILIP M. DEAN, P.E.
C.H. GUERNSEY & COMTANY
ON BEHALF OF
GOLDEN SPREAD ELECTRIC COOPERATIVE, INC.
PUC Docket No. 48212 Direct Testimony of Philip M. Dean
1 37
TABLE OF CONTENTS
1. Position and Qualifications 3
11. Purpose of Testimony 4
III. Golden Spread's Application and the Existing Line 6
IV. Need for the Proposed Project 10
V. Conclusion 1 5
EXHIBITS
Exhibit PD-1:
Resume of Philip M. Dean Exhibit PD-2
Photographs of Existing Line
PUC Docket No. 48212 Direct Testimony of Philip M. Dean
2 38
1 1. Position and Qualifications
2 Q. Please state your name and address.
3 A. My name is Philip M. Dean, and my business address is 5555 North Grand Boulevard,
4 Oklahoma City, Oklahoma 73112-5507.
5 Q. By whom are you employed and in what capacity?
6 A. I am the Vice President and Senior Design Consultant of C.H. Guernsey & Company
7 ( Guernsey").
8 Q. Please describe your professional qualifications.
9 A. I completed a Bachelor of Science in Electrical Engineering at Oklahoma State University
10 in 1974. I am currently a registered Professional Engineer in the State of Oklahoma,
11 License No. 11248, issued July 21, 1978. My professional and project experience includes
12 electric system planning studies, electric transmission line design and construction
13 including plan and profile development, electric substation design and construction, system
14 protection coordination studies, distribution facilities design including staking sheet
15 development, distribution line construction staking, underground distribution feeder and
16 electric service layouts, transmission and distribution pole line work order inspections,
17 material specifications and procurement for transmission development, substation and
18 distribution projects, cost estimates for transmission, substation and distribution projects,
19 construction bid documents preparation for transmission, substation and distribution
20 projects, contract bid evaluations, expert testimony in electric utility litigation, CCN
21 development for electric cooperatives in Texas including purpose and need studies, and
22 computer aided drafting. A copy of my resume is attached as Exhibit PD-1.
23 Q. Have you ever submitted testimony before the Public Utility Commission of Texas
24 ("PUC" or "Commission")?
PUC Docket No. 48212 Direct Testimony of Philip M. Dean
3 39
1 A. Yes. In the last five years, I have submitted testimony in the following dockets at the PUC,
2 all of which dealt with applications for CCNs for transmission line projects: Docket No.
3 41025 (2013); Docket No. 43878 (2014); Docket No. 44060 (2015); Docket No. 46429
4 (2016).
5 Q. Has your testimony ever been excluded by the PUC for any reason?
6 A. No.
7
11. Purpose of Testimony
8 Q. What is the purpose of your testimony?
9 A. The purpose of my testimony is to (1) sponsor certain portions of the CCN application
10 submitted by Golden Spread Electric Cooperative, Inc. (GSEC") in this docket to convert
11 Colorado River Municipal Water District's ("CRMWD”) 69 kV private transmission line
12 to public use (the "Application"), (2) provide information establishing that the CRMWD
13 69 kV private transmission line is constructed, operated, and maintained in accordance with
14 good utility practice and the proposed interconnection meets industry standards for
15 reliability and transmission planning, and (3) provide information regarding the purpose
16 and need for this project.
17 Q. What portions of the Application do you sponsor?
18 A. I sponsor or co-sponsor the answers to CCN application form question nos. 4 (project
19 description), 5 (conductor and structures), 6 (right-of-way), 7 (substations and switching
20 stations), 9 (counties); 10 (municipalities); 11 (affected utilities); 13 (estimated costs), 14
21 (need for the project), 15 (alternatives considered), 17 (routing study), 19 (routing maps),
22 and 20 (permits), as well as Attachment Nos. 2, 6, 7, 8, 9, 10, and 12.
23 I also provide and sponsor the facts supporting good cause exceptions from the
24 requirements in CCN application form question nos. 17 (routing study), 18 (public meeting
25 or public open house), 19 (routing maps), 21 (habitable structures), 22 (electronic
PUC Docket No. 48212 Direct Testimony of Philip M. Dean
4 40
1
installations), 23 (airstrips), 24 (irrigation systems), 26 (parks and recreation areas), 27
2
(historical and archaeological sites), 28 (coastal management program), and 29
3
(environmental impacts).
4
I offer testimony supporting the portions of the Application that I sponsor, including
5
testimony in support of the purpose and need for the Project and the CRMWD line's
6
compliance with industry standards for reliability and construction
7 Q. Please describe the process Guernsey used to assist in preparing the Application?
8 A. Guernsey obtained data and information from Coleman County Electric Cooperative, Inc.
9 ("Coleman ElectriC), GSEC, Enterprise, and CRMWD. Guernsey also performed field
10 reconnaissance, reviewed maps and transmission system diagrams, reviewed CRMWD's
11 original transmission line design documents, reviewed Enterprise s substation design
12 drawings, and reviewed AEP's Load Increase Study, which is Attachment 5 to the
13 Application. Accordingly, my testimony and opinions are based upon information I have
14 been made aware of, reviewed, or personally observed, and are the types of facts and data
15 that experts in electric utility system planning would reasonably rely upon. Guernsey used
16 this information to prepare the sections of the Application that I sponsor, including the
17 Purpose and Need Study (PNS) and CCN application Question No. 14 (Need for Proposed
18 Project), Question No 15 (Alternatives to Project), and Attachment No. 6 (PNS). I have
19 personal knowledge of the facts and information contained in the sections of the
20 Application that I sponsor. Rather than unnecessarily duplicate these portions of the
21 Application and Attachments that I sponsor, I incorporate them by reference herein for all
22 purposes.
23 Q. Were your testimony and the portions of the Application you sponsor prepared by
24 you or by knowledgeable persons upon whose expertise, judgment, and opinions you
25 rely in performing your duties?
26 A. Yes.
PUC Docket No. 48212 Direct Testimony of Philip M. Dean
5 41
1 Q. Is the information contained in your testimony and the portions of the Application
2 you sponsor true and correct to the best of your knowledge and belief?
3 A. Yes, the information is true and correct to the best of my knowledge and belief.
4 III. Golden Spread's Application and the Existing Line
5 Q. Are you familiar with the Application filed by GSEC in this docket?
6 A. Yes. GSEC proposes to purchase an existing private 69 kV transmission line currently
7 owned and operated by CRMWD in Concho County, Texas, for solely CRMWD's own
8 benefit (Existing Line) and convert the Existing Line to public use so the line can serve
9 both CRMWD and Enterprise Products Partners L.P. ("Enterprise.), as well as any future
10 load in the area. GSEC will also construct a short, 0.85-mile 69 kV transmission extension
11 to a substation being constructed by Enterprise (New Line Extensioe), but that short
12 extension and substation is not part of this Application.
13 Q. Please generally describe where the proposed project will be located?
14 A. The proposed project will be located in Concho County, Texas, within approximately 3.3
15 miles of the unincorporated town of Millersview, Texas, and 7.0 miles of Paint Rock,
16 Texas. Maps of the project area depicting the Existing Line and New Line Extension are
17 attached to the Application at Attachments 9 and 12
18 The area traversed by the Existing Line is typically undeveloped flat rural land interrupted
19 by periodic creekbeds. The property is utilized primarily for grazing livestock and, to a
20 lesser extent, for producing cultivated crops. The area includes scattered single-family
21 residences and agricultural outbuildings. The ground elevation at the southwest end of the
22 line project is approximately 1,760 feet above mean sea level (AMSL) and at the northeast
23 end of the project is approximately 1,575 feet AMSL.
24 Q. Are you familiar with the Existing Line?
PUC Docket No. 48212 Direct Testimony of Philip M. Dean
6 42
1 A. Yes, I am familiar with the construction and condition of the Existing Line. My firm,
2 Guernsey, designed and constructed the O.H. Ivie Reservoir substation owned by CRMWD
3 that is served by the Existing Line, and I personally oversaw an inspection of the entire line
4 by Guernsey in August 2013. I also viewed the line from public right of way in June 2017
5 Finally, I have reviewed the following documents describing the line design: CRMWD
6 Contract and Specifications for Construction of Transmission Line Service Pumping Plants
7 #1, #2, #4 and #5; CRMWD Specifications of Material for Transmission Line Service to
8 Pumping Stations #1, #2, #4 and #5; and Plan and Profile sheets reflecting the Existing
9 Line's design and clearance specifications.
10 Q. Please describe the Existing Line and its location?
11 A. The Existing Line is approximately 12.6 miles in length, single circuit, and of single wood
12 pole construction with post insulators and 4/0 ACSR conductors. This is a common
13 construction within the Electric Reliability Council of Texas (ERCOT") region. The
14 typical structure height is approximately 60 feet, but may vary from 55 feet to 70 feet
15 depending on terrain, structure location, and span length.
16 The Existing Line originates at the terminals of an existing 69 kV switch along American
17 Electric Power's (AEP") Ballinger to Eden 69 kV transmission line, located seven miles
18 southeast of Paint Rock, Texas and one mile east of U.S. Route 83. The AEP Ballinger to
19 Eden 69 kV transmission line is part of the ERCOT system. The Existing Line extends in
20 a northeasterly direction to the point of attachment of insulators to an existing dead-end
21 tower in CRMWD's existing Pumping Station #1 Substation at the 0 H. lvie Reservoir,
22 which serves CRMWD's pump station and related facilities. The Existing Line currently
23 only serves CRMWD s substation at this termination point.
24 Q. Please describe the construction and condition of the Existing Line?
25 A. The Existing Line is in good condition and constructed, operated, and maintained in
26 accordance with good utility practice.
PUC Docket No. 48212 Direct Testimony of Philip M. Dean
7 43
1 The line was constructed in 1995, which is fairly recent considering that many transmission
2 lines within ERCOT in West Texas were constructed decades before this time. The
3 Existing Line was also recently refurbished in 2015. As part of Guernsey's inspection of
4 the Existing Line in 2013, CRMWD also hired Osmose—a widely-utilized electric utility
5 inspection company—to perform a ground line inspection of all poles to identify items
6 needing repair or replacement. As a result of this inspection, in 2015 CR.MWD completed
7 a refurbishment of the line by replacing poles that had evidence of deterioration and
8 performing a pole top, which is a process by which all transmission hardware on the poles
9 are tightened to ensure it is securely attached to the poles. Attached to my testimony as
10 Exhibit PD-2 are photographs of the Existing Line taken by me in June 2017. These
11 photographs accurately depict the Existing Line as it existed at the time I took the
12 photographs. The photographs reflect the good condition of the Existing Line.
13 The Existing Line meets proper spacing, phase clearance, and ground clearance
14 requirements. This is confirmed by my review of the plan and profile sheets, which reflect
15 the Existing Line's design and clearance specifications, as well as Guernsey's inspection
16 of the line in 2013 and my subsequent review of the line in June 2017. In inspecting the
17 line in 2013, and driving it from public right of way in June 2017, we did not identify any
18 encroachments (such as new structures) that affect the clearance design of the Existing
19 Line.
20 The Existing Line is designed and constructed in a manner common within ERCOT and
21 taps the AEP Ballinger to Eden 69 kV transmission line, which is part of the ERCOT
22 system. Upon request from GSEC, AEP conducted in February 2017 a steady-state power
23 flow analysis in compliance with North American Electric Reliability Corporation
24 (NERC), ERCOT, and AEP transmission planning criteria. The analysis concluded no
25 thermal violations during single outage (N-1) system conditions. AEP's report is attached
26 to the Application as Attachment 5.
27 Given my personal knowledge of the Existing Line, my review of the information
28 pertaining to the Existing Line, and my 40 years of experience as an engineer working in
PUC Docket No. 48212 Direct Testimony of Philip M. Dean
8 44
1
electric system planning, electric transmission line design and construction, and plan and
2
profile development, it is my opinion that the line is constructed, operated, and maintained
3
in accordance with good utility practice, including the standards of the American National
4
Standards Institute (ANSF) and the National Electrical Safety Code ("NESC") In
5
addition, as evidenced by the analysis conducted by AEP in February 2017, interconnection
6
of the Existing Line to the AEP Ballinger to Eden 69 kV transmission line complies with
7
applicable reliability standards and transmission planning criteria of NERC, ERCOT
8
(including ERCOT Planning Guide, Sec. 4), and AEP.
9 Q. Did GSEC ask Guernsey to prepare a routing study or environmental assessment for
10 this project? If not, why not?
11 A. No. Stated simply, the Existing Line already exists. Many of the CCN application form
12 questions do not apply to this project for that reason, in particular question nos. 17 (routing
13 study), 18 (public meeting or public open house), 19 (routing maps), 21 (habitable
14 structures), 22 (electronic installations), 23 (airstrips), 24 (irrigation systems), 26 (parks
15 and recreation areas), 27 (historical and archaeological sites), 28 (coastal management
16 program), and 29 (environmental impacts).
17 To elaborate, the Existing Line is already designed, constructed, and located on the land at
18 issue. GSEC is not proposing an alternative route for the Existing Line. Because the line
19 already exists, there are no routing constraints to address. The environmental, ecological,
20 cultural, aesthetic, land use, and other effects of the Existing Line are already fixed. In
21 particular, there are no newly affected existing transmission facilities, radio transmitters
22 and other electronic installations, airstrips, irrigated pasture or cropland, parks and
23 recreational areas, historical and archeological sites, habitable structures, or
24 environmentally sensitive areas. As explained in the Direct Testimony of Bret Yeary, all
25 directly affected landowners whose property is crossed by the Existing Line have
26 consented to the transmission line, as is obvious from its existence on their property for
27 over 20 years.
P1JC Docket No. 48212 Direct Testimony of Philip M. Dean
9 45
1
The New Line Extension will be an extension of an existing transmission line solely to
2
provide service to Enterprise s new substation. The New Line Extension does not exceed
3
one mile; it will be approximately 0.85 miles in length. All landowners whose property is
4 crossed by the new transmission facilities have given prior written consent. See
5 Application, Attachment 11 - Easements for New Line Extension.
6 Q. Will any new permits or approvals be required after the Commission approves the
7 project?
8 A. If the Commission approves this Application, and after the line is acquired by GSEC, there
9 could be some limited permits that need to be amended or obtained, namely permits or
10 approvals from the Texas Department of Transportation (TxDOT) for any crossing of, or
11 access from, a state-maintained roadway.
12 IV. Need for the Proposed Project
13 Q. Why did Guernsey prepare a Purpose and Need Study for the proposed project as
14 part of the Application?
15 A. GSEC asked Guernsey to prepare the PNS in response to Question Nos. 14 and 15 of the
16 CCN application, and in particular to evaluate the purpose and need for the project and the
17 most cost effective and reliable alternative for meeting that need. Rather than unnecessarily
18 duplicate the information and data from the PNS, I incorporate the PNS (Attachment 6 to
19 the Application) herein by reference for all purposes.
20 Q. What information does the Purpose and Need Study provide?
21 A. This PNS provides GSEC and Coleman Electric with an analysis of service alternatives for
22 the new Enterprise pump station located south of O. H Ivie Reservoir and southwest of
23 Coleman, Texas. As a part of the detailed analysis of the purpose and need for the proposed
24 project, the PNS addresses load forecasts and service reliability, and provides a cost-benefit
25 analysis for service to the Enterprise project site, which is located within Coleman
PUC Docket No. 48212 Direct Testimony of Philip M. Dean
10 46
1 Electric's singly certificated service area. The PNS analyzes transmission and distribution
2 options, with the goal of providing timely and reliable service while minimizing costs.
3 Q. Who participated in the preparation of the Purpose and Need Study?
4 A. A team of Guernsey professionals participated in the preparation of the PNS. These
5 professionals were involved in data acquisition, analysis, and report preparation. As a
6 Guernsey manager, I was involved in overseeing and reviewing the work of all participants.
7 Other persons involved in this project included Doug Somerhalder, Jim Clemmer and
8 Kendra Alexander Information and input was also provided by Coleman Electric, GSEC
9 and Enterprise.
10 Q. Please describe the steps taken in preparing the Purpose and Need Study.
11 A. The steps taken by Guernsey in preparing the PNS included a detailed review of the current
12 electric distribution system operations of Coleman Electric, followed by a review of the
13 desired goals for the electric distribution system operations. Guernsey next determined
14 where the major gaps were between the actual and desired electric distribution system
15 operations, and identified alternatives for system improvements. Considering both
16 distribution and transmission solutions to provide capacity to the Enterprise project site,
17 Guernsey reviewed feasible alternatives to improve the electric system, finally selecting
18 the best alternative to meet the need. Guernsey worked with Coleman Electric and GSEC
19 to synthesize the information and finalize the analysis and recommendations in the PNS.
20 Q. What are the main factors causing a need for the proposed project?
21 A. The need for the proposed project is primarily driven by Enterprise's request for 69 kV
22 service at a substation with projected load of 7.8 MW, and the current Coleman Electric
23 distribution system's inability to serve Enterprise s load.
24 Q. Please summarize your evaluation of potential distribution solutions.
PUC Docket No. 48212 Direct Testimony of Philip M. Dean
11 47
1 A. Coleman Electric's existing 12.5 kV distribution system in the area is not designed to serve
2 a load the size of the Enterprise load. The distribution feeders currently serving the
3 Enterprise project site consists of 12.8 miles of 4/0 ACSR feeder and 5.6 miles of 1/0 ACSR
4 feeder, which originate at the Gouldbusk Substation. The voltage to serve the projected full
5 7.8 MW of Enterprise load with the current feeder configuration results in a 50-volt drop
6 on a 120-volt base. Reconductoring the entire route to 477 ACSR conductors results in a
7 30-volt drop on a 120-volt base. The USDA's Rural Utilities Service (RUS) System
8 Planning Guide, BULLETIN 1724D-101B, states the maximum voltage drop on primary
9 distribution lines shall not exceed 8 volts on a 120- volt base. Thus, using this existing 12.5
10 kV feeder configuration, or reconductoring the feeders, exceeds the RUS voltage criteria
11 and is not a reliable or viable solution to meet Enterprise's load requirements.
12 Guernsey evaluated the possibility of meeting the Enterprise load requirements through
13 distribution system upgrades. Coleman Electric currently does not own or operate any 24.9
14 kV distribution facilities on its system. Converting the distribution voltage from 12.5 to
15 24.9 kV for the area in which the Enterprise load is located would require replacing the
16 transformer and rebuilding the distribution voltage bays at Gouldbusk Substation, then
17 rebuilding the approximately 18 miles of distribution feeder plus all lateral taps on the
18 feeder serving the area. In the event of a loss of the substation transformer, however, the
19 Cooperative does not have a method to transfer the 24.9 kV feeder to adjacent feeders
20 resulting in potentially very long outages. Converting to 24.9 kV is not a viable option
21 because of this reliability issue.
22 Guernsey also evaluated distributed generation options. The use of diesel generators is not
23 practical or cost effective. As explained in the PNS, the operating costs are far more
24 expensive than building a transmission line and substation. Solar and wind generation do
25 not provide the firm power that is required for the Enterprise load. Moreover, solar, thermal
26 and photovoltaic energy conversion methods are not yet cost competitive with available,
27 ex i sting conventional generation.
PUC Docket No. 48212 Direct Testimony of Philip M. Dean
12 48
1 Therefore, Guernsey concluded there is no viable distribution alternative to meet the
2 Enterprise load requirements.
3 Q. Please summarize your evaluation of potential transmission solutions.
4 A. There are several transmission lines in the general vicinity of the Enterprise project site.
5 There are three potential 69 kV sources: the Existing Line, the AEP Ballinger to Eden 69
6 kV transmission line, and the radial 69 kV line that terminates at the Gouldbusk Substation.
7 There is one AEP 138-kV transmission line source that runs southwesterly from Ballinger,
8 Texas, and an AEP-LCRA 345-kV bulk transmission system line south of the Enterprise
9 project site. Figure 3 in the PNS depicts the transmission lines in relation to the Enterprise
10 project site.
11 Table 1 below summarizes these transmission line sources, including the estimated line
12 distance from the source to the Enterprise project site and the estimated cost that would be
13 incurred to extend service from these facilities to the Enterprise project site. The cost
14 estimates include the cost of right-of-way acquisition, engineering, material, and
15 construction.
16 Table 1 — Transmission Line Source Alternatives
Transmission Line Source Distance to Enterprise Estimated Cost
CRMWD Private 69 kV 0.85 line miles, plus 12.6 mile Existing Line
$4,413,395
AEP Ballinger to Eden 69 kV 15 line miles $6,087,000
Radial 69 kV at Gouldbusk 18 line miles $7,103,000
AEP 138 kV 27 5 line miles $13,456,000
AEP-LCRA 345 kV 2.5 line miles $20,000,000
17
18 As the PNS concludes, the most cost effective and least impacting alternative to meet the
19 need for this project is for GSEC to purchase the Existing Line and then construct a short
20 0.85-mile 69 kV extension to the Enterprise substation. This option is also expected to have
PIJC Docket No. 48212 Direct Testimony of Philip M. Dean
13 49
1
the shortest time to completion, which is important given Enterprise's expectation to have
2
its pump station fully operational by May 1, 2018, subject to adequate electrical service.
3 The PNS explains in detail the justification for this conclusion. In summary, with respect
4 to the other alternatives evaluated, constructing an entirely new 15-mile 69 kV transmission
5 line from a tap point along the AEP Ballinger to Eden 69 kV line would be more expensive,
6 would take longer to construct, would unnecessarily duplicate CRMWD's existing
7 facilities, and would unnecessarily affect additional landowners, land uses, and the
8 environment. Only one 69 kV transmission line is needed because the capacity of the
9 Existing Line is sufficient to provide power to both CRMWD and Enterprise. Constructing
10 an entirely new 15-mile transmission line would essentially double the required
11 transmission investment and impacts to landowners, land uses, and the environment, yet
12 neither the new line nor the Existing Line would exceed 20% of its respective capacity.
13 Similarly, constructing a new 18-mile 69 kV transmission line from Gouldbusk Substation
14 or a new 27.5-mile 69 kV transmission line and 138-69 kV step-down station from a tap
15 point along AEP' s 138-kV line would be more expensive, would take longer to construct,
16 would unnecessarily duplicate CRMWD's existing facilities, and would unnecessarily
17 affect additional landowners, land uses, and the environment.
18 Constructing a 2.5-mile 69 kV transmission line from a tap point along the AEP-LCRA
19 345-kV bulk transmission system line to serve Enterprise's 7.8 MW load would be highly
20 unusual, would require study by ERCOT, and would require unique facilities with long
21 lead times, including a 345-138 kV step-down station with 345-kV breakers and a 100
22 MVA rated transformer (far more than needed to serve Enterprise) and another 138-69 kV
23 step-down station. Again, this transmission alternative would be significantly more
24 expensive, would take longer to construct, would unnecessarily duplicate CRMWD's
25 existing facilities, and would unnecessarily affect more landowners, land uses, and the
26 environment.
27 Q. Do your findings and conclusions in the Purpose and Need Study present a true and
28 accurate analysis of the need for the proposed project?
PUC Docket No. 48212 Direct Testimony of Philip M. Dean
14 50
1 A. Yes, they do.
2 Q. Does GSEC's proposed conversion of CRMWD's private 69 kV transmission line to
3 public use best meet the need addressed in the Application?
4 A. Yes, for the reasons stated above and in the PNS.
5 V. Conclusion
6 Q. Please summarize your testimony and opinions?
7 A. Based on my work on this project and my experience as an electrical engineer, I conclude
8 as follows:
9 (a) The Existing Line is in good condition and constructed, operated, and
10 maintained in accordance with good utility practice, including the standards of ANSI and
11 NESC. In addition, interconnection of the Existing Line to the AEP Ballinger to Eden 69
12 kV transmission line complies with applicable reliability standards and transmission
13 planning criteria of NERC, ERCOT, and AEP.
14 (b) Many of the CCN application form questions and information typically required
15 in CCN cases cannot be completed or do not apply to this project, given that the Existing
16 Line already exists and any impacts are already fixed.
17 (c) GSEC's proposal to purchase CRMWD's existing private 69 kV transmission
18 line and convert it to public use is the best alternative to meet the need to serve Enterprise's
19 new 7.8 MW load located less than a mile away from the Existing Line.
20 Q. Does this conclude your testimony?
21 A. Yes.
PUC Docket No. 48212 Direct Testimony of Philip M. Dean
15 51
STATE OF OKLAHOMA
COUNTY OF OKLAHOMA
BEFORE ME, the undersigned authority. on this day personally appeared Philip M. Dean who, having been placed under oath by me, did depose as follows:
My name is Philip M. Dean. I arn of legal age and a resident of the State of Oklahoma. The foregoing testimony, opinions, and exhibits offered by me are true and correct, and within my personal knowledge.
Philip M4 ean
44( SUBSCRIBED AND SWORN TO BEFORE ME by the said Philip M. Dean on this, the day of Apri12.0.1.8.
sa TRACY NEAL
cL Notary Public State of Oklahoma
Com-aulon # 050108115 Expires 11130/21
_2( Notary Pÿlc, -State of Óklahoma
MC Docket No. 48212 Direct Testimony of Philip M. Dean
16 52
guernsey
PHILIP M. DEAN P.E. VICE PRESIDENT
SENIOR DESIGN CONSULTANT
PERTINENT EXPERIENCE FOR THE PROJECT
Mr. Dean specializes in the planning, design and analysis of electrical facilities for overhead and underground distribution and transmission lines, substation facilities and other specialized power projects. He is responsible for project management and overall quality control and quality assurance for all phases of planning and design projects. This includes formulating strategies for planning studies and the preparation of detailed construction drawings for design projects. He manages the coordination of utility requirements and implements interconnection agreements. Mr. Dean prepares material and system specifications, evaluates bids and recommends purchase requirements. He also has experience as an on-site inspector during construction of electrical power substation design phases. Mr. Dean routinely performs these services for rural electric cooperatives, municipal systems and oil and gas facilities.
SPECIFIC CONSULTING EXPERIENCE
PLANNING
• 2013-2032 Long Range Plan, First Electric Cooperative, Jacksonville, AR — Project Manager: Provided oversight to development of the 2013-2032 Long Range Plan
• Stonebrook Substation Purpose and Need Study, CoServ Electric, Corinth TX — Project Manager: Based on recommendation from the Long Range Plan, develop specific justification for installation on new substation. Study is part of Certification of Convenience and Necessity for new transmission line for substation.
• Parvin Substation Purpose and Need Study, CoServ Electric, Corinth TX — Project Manager: Based on recommendation from the Long Range Plan, developed specific justification for installation of a new substation. Study is part of Certification of Convenience and Necessity for new transmission line for substation.
• Kittyhawk Substation Purpose and Need Study, CoServ Electric, Corinth TX — Project Manager: Based on recommendation from the Long Range Plan, develop specific justification for installation on new substation. Study is part of Certification of Convenience and Necessity for new transmission line for substation.
• Transmission Evaluation, Rayburn County Electric Cooperative, Inc., Rockwall, TX — Project Manager. Evaluate loading and possible reconfiguration of transmission system.
• Electric Utility Master Plan, US NACFAC, Bahrain — Engineering Support: Completion of U-ICAP and GIS gathering for 11.5 kV electric utility system at NSA-1 and New P-21 Substation, develop electrical one-line drawing for entire electrical utility system; modeling; develop course of actions (COA) to handle load growth over next ten years, scope of works, DD 1391s for all COAs and cost estimates for each project
PUC Docket No. 48212 Direct Testimony of Philip M. Dean
Exhibit PD-1 Page 1 of 4
EDUCATION
B S Electrical Engineering Oklahoma State University
REGISTRATION
Professional Engineer Oklahoma # 11248,
Arkansas # 9607, Louisiana # 35629
53
PHILIP M. DEAN P.E. VICE PRESIDENT
SENIOR DESIGN CONSULTANT guernsey
• CCN for Transmission Line, Golden Spread Electric Cooperative, Amarillo, TX — Prepared Certificate of Convenience and Necessity for new 18 mile 69 kV transmission line from Wheeler to Kelton Substations
• CCN for Transmission Line, Golden Spread Electric Cooperative, Amarillo, TX — Prepared Certificate of Convenience and Necessity for new 11 mile 115 kV transmission line from Howard to Ft. Elliott Substations
• CCN for Transmission Line, Lamar Electric Cooperative, Paris, TX — Project Manager: Preparation of Certificate of Convenience and Necessity for new 11 mile 138 kV transmission line from Enloe Switch Station to Lake Creek Substation
• CCN for Transmission Line, Lyntegar Electric Cooperative, Tahoka, TX — Prepared Certificate of Convenience and Necessity for new 4.45 mile 138 kV transmission line for West Lamesa.
• CCN for Transmission Line, Lyntegar Electric Cooperative, Tahoka, TX — Prepared Certificate of Convenience and Necessity for new 7.6 mile 138 kV transmission line for Patricia
SUBSTATIONS
• Designed 115-12.5 kV Substation, Hospital Substation, Matanuska Electric Cooperative, Palmer, AK— Electric Engineer/Project Manager: Development of the design for a new 115-12.5 kV substation
• Evaluated Ketch Substation and Associated Systems, Municipality, City of Edmond, OK — Project Manager: Designed replacement of faulty transformer and outdoor switchgear with new transformer and indoor switchgear
• 138-12.5 kV Substation, Mitch Substation, City of Edmond, OK — Project Manager/Construction Management: Provided construction management services for new 138-12.5 kV substation with indoor switchgear
• Substation, Hafer Substation, City of Edmond, OK — Project Manager: Provided construction management services for replacement of fire damaged indoor switchgear
• 138-12.5 kV Substation, Ketch Substation, City of Edmond, OK — Project Manager/Construction Management: Designed and provided construction management services for replacement of power transformer, circuit switcher and 12.5 kV bay
• Designed 69-24.9 kV Substation, Kelton Substation, Golden Spread Electric Cooperative, Amarillo, TX — Project Manager: Prepared the design for a new 69-24.9 kV substation
• 115X69-4.16 kV Substation, Ft. Elliott Substation, Golden Spread Electric Cooperative, Amarillo, TX — Project Manager: Design for a new 69-4.16 kV substation for gas processing plant
• Designed 230-24.9 kV Substation, Buffalo Creek Substation, Peace River Electric Cooperative, FL — Project Manager: Designed new 230-24.9 kV substation with two 100 MVA and eight 24.9 kV circuits
• Designed 69-12.5 kV Substation, McCord Substation, City of Ponca City, OK — Project Manager: Designed new 69-12.5 kV substation with indoor switchgear
PUC Docket No. 48212 Direct Testimony of Philip M. Dean
Exhibit PD-1 Page 2 of 4
54
PHILIP M. DEAN P.E. VICE PRESIDENT
guernsey
SENIOR DESIGN CONSULTANT
• 69-12.5 kV Substation, Tecumseh Substation, City of Tecumseh, OK — Project Manager: Provided construction management for modification to a 69-12.5 kV substation
• Designed 138-6.9 kV Substation, Lake Creek Substation, Lamar Electric Cooperative, Paris, TX — Project Manager: Designed new 138-6.9 kV substation for pump station
• Designed 138 kV Switch Station, Enloe Switch Station, Lamar Electric Cooperative, Paris, TX — Project Manager: Project Management for the design of a new 138 kV switch station associated with new pump station
• Transformer specification for 19th Street Substation, City of Stillwater, OK — Project Manager, Electrical Engineer: Reviewed and modified transformer specification and evaluated bids for new 138-12.5 kV power transformer
• Transformer specification for Kinzie Substation, City of Stillwater, OK — Project Manager, Electrical Engineer: Reviewed and modified transformer specification and evaluated bids for new 138-69 kV power transformer. Design foundation for new transformer
• Designed 69-12.5 kV Substation, Comanche Substation, City of Comanche, OK — Project Manager. Design for a new 69-12.5 kV substation
• Designed 69-12.5 kV Substation, Union Street Substation, City of Ponca City, OK — Project Manager: Designed new 69-12.5 kV substation.
• 138-12.5 kV Substation, C. R. Burgett Substation, City of Edmond, OK — Project Manager/Construction Management: Provided design and construction management services for new 138-12.5 kV substation.
• 69X34.5-12.5 kV Substation, Elm Substation, Tri-County Electric Cooperative, Hooker, OK — Project Manager/Construction Management: Provided design and construction management services for new 69X34.5-12.5 kV substation.
• 115-12.5 kV Substation, Red Devil Substation, Tri-County Electric Cooperative, Hooker, OK — Project Manager/Construction Management: Provided design and construction management services for new 115-12.5 kV substation.
TRANSMISSION
• 138 kV Transmission Line, Western Farmers Electric Cooperative, Anadarko, OK — Project Manager: Project management services for the design and construction of a new 11 mile 138 kV transmission line from Clearlake Substation to Tri-County Electric Cooperative
• 138 kV Transmission Line, Western Farmers Electric Cooperative, Anadarko, OK — Project Manager: Project management services for the design and construction of a new 138 kV transmission line at Three Sands Tap
• 138 kV Transmission Line, Western Farmers Electric Cooperative, Anadarko, OK — Project Manager: Project management services for the design and construction of a new 138 kV transmission line at Wolf Creek Tap
• 138 kV Transmission Line, Western Farmers Electric Cooperative, Anadarko, OK — Project Manager: Project management services for the design and construction, rebuilding the 20 mile 138 kV transmission line from Anadarko to Fletcher, Okla.
PUC Docket No. 48212 Direct Testimony of Philip M. Dean
Exhibit PD-1 Page 3 of 4
55
PHILIP M. DEAN P.E. VICE PRESIDENT
guernsey
SENIOR DESIGN CONSULTANT
• 138 kV Transmission Line, City of Pawhuska, OK — Project Manager: Project management services for the design and construction of a 138 kV transmission line being relocated due to a highway widening project
• 69 kV Transmission Line, Golden Spread Electric Cooperative, Amarillo, TX — Project Manager: Project management services for the design and construction of a new 18 mile 69 kV transmission line from Wheeler to Kelton Substations
• 115 kV Transmission Line, Golden Spread Electric Cooperative, Amarillo, TX — Project Manager: Project management services for the design and construction of a new 11 mile 115 kV transmission line from Howard to Ft. Elliott Substations
• 138 kV Transmission Line, Lamar Electric Cooperative, Paris, TX — Project Manager: Project management services for the design and construction of a new 11 mile 138 kV transmission line from Enloe Switch Station to Lake Creek Substation
• 69 kV Transmission Line Extension, Ponca City Energy, Ponca City, OK — Project Manager. Design if 69 kV transmission Line extension and one (1) 69 kV vertical one-way GOAB switch for the installation of Union Street Substation.
• 115 kV Transmission Line, Greenbelt Electric Cooperative, Wellington, TX — Project Manager/Construction Management for new 12.5 mile Huff 115 kV transmission line
• 69 kV Transmission Line Tap, Tri-County Electric Cooperative, Hooker, OK — Project Manager. Design of 69 kV transmission tap with one (1) 69 kV vertical three-way GOAB.
• 115 kV Transmission Line, Tri-County Electric Cooperative, Hooker, OK — Project Manager. Design of 12.0 mile Red Devil 115 kV transmission consisting of a combination of concrete tangent structures and self-supporting steel dead-ends.
DISTRIBUTION
• Distribution Design, Chesapeake Energy, South Texas - Oversee the design of distribution facilities behind the primary meter to serve well pads
• Distribution Design, Oklahoma Gas & Electric (OG&E), Oklahoma City, OK — Project Manager. Provide design services for various distribution projects including new subdivisions, street widening, and feeder upgrade projects.
• Distribution Study, TRICO Electric Cooperative, Arizona — Performed analysis to add 10 MW of solar generation to distribution feeder
EMPLOYMENT HISTORY
2005-Present Guernsey; Senior Engineer, Power Engineering Manager 2004-2006 Oklahoma State University, OKC; Adjunct Instructor Engineering Technologies 1974-2004 Oklahoma Gas and Electric Company, Oklahoma City, Oklahoma
PUC Docket No. 48212 Direct Testimony of Philip M. Dean
Exhibit PD-1 Page 4 of 4
56
—mot. .tittilliailMtier
lin giiilI! JI1U .1.2 .=:islosIgasetio,
PUC Docket No. 48212 Direct Testimony of Philip M. Dean
Exhibit PD-2
Photograph 1 of Existing Line
PUC Docket No. 48212 Direct Testimony of Philip M. Dean
Exhibit PD-2 Page 1 of 2
57
Photograph 2 of Existing Line
PUC Docket No. 48212 Direct Testimon3. of Philip M. Dean
Exhibit PD-2 Page 2 of 2
58
PUC DOCKET NO. 48212
APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 KV TRANSMISSION LINE TO PUBLIC USE IN CONCHO COUNTY, TEXAS
§ § § § § § § §
PUBLIC UTILITY COMMISSION
OF TEXAS
GOLDEN SPREAD ELECTRIC COOPERATIVE, INC.'S APPLICATION TO AMEND ITS CERTIFICATE OF CONVENIENCE AND
NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 KV TRANSMISSION LINE TO PUBLIC USE IN CONCHO COUNTY, TEXAS
Exhibit C - CCN Application Form and Attachments
59
APPLICATION OF
GOLDEN SPREAD ELECTRIC COOPERATIVE, INC.
TO AMEND ITS
CERTIFICATE OF CONVENIENCE AND NECESSITY
FOR THE
CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
Submit seven (7) copies of the application and all attachments supporting the
application. lf the application is being filed pursuant to P.U.C. Subst. R. 25.101(b)(3)(D)
or P.U.C. Subst. R. 25.174, include in the application all direct testimony. The application
and other necessary documents shall be submitted to:
Public Utility Commission of Texas
Attn: Filing Clerk
1701 N. Congress Ave.
Austin, Texas 78711-3326
60
APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
Note: As used herein, the term "joint application" refers to an
application for proposed transrnission facilities for which
ownership will be divided. All applications for such facilities
should be filed jointly by the proposed owners of the facilities.
1. Applicant (Utility) Name: Golden Spread Electric Cooperative, Inc. ("GSEC")
Certificate Number: 30189
Street Address: 905 South Fillmore, Ste. 220
Amarillo, Texas 79101-5898
Mailing Address: P. O. Box 9898
Amarillo, Texas 79101-5898
2. Please identify all entities that will hold an ownership interest or an investment interest
in the proposed project but which are not subject to the Commission's jurisdiction.
Not Applicable. GSEC is the only entity that will have an ownership or investment interest in
the transmission facilities.
3. Person to Contact: Bret Yeary
Title/Position: Manager of Plant Performance and Projects
Phone Nurnber: (806) 337-1296
Mailing Address: Same as GSEC (see above)
Email Address: [email protected]
Alternate Contact: Philip Dean
Title/Position: Vice President
Phone Number: 405-820-2742
Mailing Address: C.H. Guernsey & Company
5555 North Grand Boulevard
Oklahoma City, OK 73112-5507
2
61
APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
Email Address:
Legal Counsel:
Phone Nurnber:
Mailing Address:
Email Address:
Carl R. Galant
Campbell McGinnis
512-495-6083
McGinnis Lochridge
600 Congress Avenue, Suite 2100
Austin, Texas 78701
cmcginnisPmcginnislaw.com
4. Project Description:
Name or Designation of Project
Conversion of CRMWD's Private 69 kV Transmission Line to Public Use in Concho County,
Texas ("Project").
The Project does not include, and GSEC does not seek at this time, certificate of convenience
and necessity ("CCN") authority relating to the 0.85-mile new 69 kV transmission line
extension ("New Line Extension") that will need to be constructed to provide service to
Enterprise Products Partners L.P. ("Enterprise). The New Line Extension is a routine activity
exempt from the requirements to obtain a CCN. See PUC Subst. R. 25.101(c)(5)(A).
Provide a general description of the project, including the design voltage rating (kV), the
operating voltage (kV), the CREZ Zone(s) (if any) where the project is located (all or in part),
any substations and/or substation reactive compensation constructed as part of the
project, and any series elements such as sectionalizing switching devices, series line
compensation, etc. For HVDC transmission lines, the converter stations should be
considered to be project components and should be addressed in the project description.
Design Voltage Rating: 69 kV
Operating Voltage: 69 kV
3
62
APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
CREZ Zone(s):
Substation(s) Included:
Series Element(s):
General Description:
Central
None. GSEC will not acquire the existing substation owned
by CRMWD that serves CRWMD's facilities at the O.H. Ivie
Reservoir. GSEC is not proposing to construct a new
substation as a part of this project, but does seek CCN
authority for any transmission facilities located within the
existing CRMWD substation.
Not Applicable
GSEC proposes to acquire a private 69 kV transmission line currently owned by Colorado
River Municipal Water District ("CRMWD") located in Concho County, Texas ("Existing Line")
pursuant to a Contingent Purchase and Sale Agreement. See Attachment 1 — Contingent
Purchase and Sale Agreement. The purchase of the Existing Line by GSEC is contingent upon
GSECs receipt of approval from the Public Utility Commission of Texas ("PUC or
"Commission") to amend GSECs CCN to own and operate the Existing Line for public use.
The Existing Line was constructed in 1995 by CRMWD. It is approximately 12.6 miles in
length, single circuit, and of single wood pole construction with post insulators and 4/0 ACSR
conductors. The Existing Line originates at the terminals of an existing switch point along
American Electric Power's ("AEP") Ballinger to Eden 69 kV transmission line, located seven
miles southeast of Paint Rock, Texas and one mile east of U.S. Route 83, and extends to the
point of attachment of insulators to an existing dead-end tower in CRMWD's existing
substation at O.H. !vie Reservoir. GSEC is not acquiring the CRMWD substation, except for
any transmission facilities associated with the Existing Line located within the substation.
Once the Commission has issued a CCN for the Existing Line, GSEC plans to convert the line
to public use. Converting the Existing Line to public use will allow the Existing Line to be used
to serve not only CRMWD but also other customers. Enterprise needs 69 kV service at a point
located a short distance from the Existing Line. GSEC plans to tap the Existing Line and
4
63
APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
construct a new 0.85-mile 69 kV transmission line extension (the New Line Extension) to
provide power to Enterprise's new substation. The substation has been constructed by, and
is owned and operated by, Enterprise and will serve Enterprise's new Millersview Pump
Station. The New Line Extension is a routine activity exempt from the requirements to obtain
a CCN. See PUC Subst. Rule 25.101(c)(5)(A). Accordingly, GSEC is not asking for CCN authority
relating to the New Line Extension. However, the necessity of providing service to the
Enterprise load is the impetus for acquiring the Existing Line, as well as the need for the
Existing Line to be converted to public use. GSEC plans to use the Existing Line to continue
service to CRMWD, to serve the new Enterprise load, and to serve other loads that may
develop in the area.
If the project will be owned by more than one party, briefly explain the ownership
arrangements between the parties and provide a description of the portion(s) that will be
owned by each party. Provide a description of the responsibilities of each party for
implementing the project (design, Right-Of-Way acquisition, material procurement,
construction, etc.).
The Project is not owned by more than one party. GSEC will solely own all transmission
facilities, including the transmission conductors, hardware, poles, and equipment associated
with both the Existing Line and the New Line Extension.
The design of the 0.85-mile New Line Extension accommodates 12.5 kV, 3-phase distribution
underbuild with neutral, which will be owned, operated, and maintained by Coleman County
Electric Cooperative, Inc. ("Coleman ElectriC).
If applicable, identify and explain any deviation in transmission project components from
the original transmission specifications as previously approved by the Commission or
recommended by a PURA §39.151 organization.
Not applicable.
5
64
APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF
CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
5. Conductor and Structures:
Conductor Size and Type:
Existing Line — 4/0 ACSR Penguin
Number of conductors per phase:
Existing Line — One
Continuous Summer Static Current Rating (A):
Existing Line — 340 A
Continuous Summer Static Line Capacity at Operating Voltage (MVA):
Existing Line — 41 MVA
Continuous Summer Static Line Capacity at Design Voltage (MVA):
Existing Line — 41 MVA
Type and composition of Structures:
Existing Line — Wood Pole (monopole)
Height of Typical Structures:
Existing Line — the typical structure height is approximately 60 feet, with a range of between
approximately 55 feet and 70 feet depending on terrain, structure location, and span length.
Estimated Maximum Height of Structures:
Existing Line — approximately 70 feet.
6
65
APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
The Existing Line is constructed as a modified version of RUS structure type TP-69G with
horizontal line post insulators. See Attachment 2 —Typical Tangent Structure Drawing.
Explain why these structures were selected; include such factors as landowner preference,
engineering considerations, and costs comparisons to alternate structures that were
considered. Provide dimensional drawings of the typical structures to be used in the
project.
The Existing Line structures are already constructed. These structure types are common and
represent a more modern version of structures that are widely used by GSEC and its member
cooperatives.
For joint applications, provide and separately identify the above-required information
regarding structures for the portion(s) of the project owned by each applicant.
Not applicable. This is not a joint application.
6. Right-of-way:
Miles of Right-of-Way:
Existing Line — 12.6 miles
Miles of Circuit:
Existing Line — 12.6 miles
Width of Right-of-Way:
Existing Line — approximately 40 feet
Percent of Right-of-Way Acquired:
7
66
APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
Existing Line — 100%
For joint applications, provide and separately identify the above-required information for
each Route for the portion(s) of the project owned by each applicant.
Not Applicable. This is not a joint application.
Provide a brief description of the area traversed by the transmission line. Include a
description of the general land uses in the area and the type of terrain crossed by the line.
The area traversed by the transmission line is typically undeveloped flat rural land
interrupted by periodic creekbeds. The property is utilized primarily for grazing livestock and,
to a lesser extent, for producing cultivated crops. The area includes scattered single-family
residences and agricultural outbuildings. The ground elevation is approximately 1,760 feet
above mean sea level ("AMS11 at the southwest end of the Project and approximately 1,575
feet AMSL at the northeast end of the Project.
7. Substations or Switching Stations:
List the name of all existing HVDC converter stations, substations or switching stations that
will be associated with the new transmission line. Provide documentation showing that
the owner(s) of the existing HVDC converter stations, substations and/or switching
stations have agreed to the installation of the required project facilities.
There are no existing HVDC converter stations, substations or switching stations associated
with or within five miles of the Existing Line.
List the name of all new HVDC converter stations, substations or switching stations that
will be associated with the new transmission line. Provide documentation showing that
the owner(s) of the new HVDC converter stations, substations and/or switching stations
have agreed to the installation of the required project facilities.
There are no new HVDC converter stations, substations or switching stations that will be
associated with the Existing Line.
8
67
APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
8. Estimated Schedule:
Estimated Dates of Existing Line: Start Completion
Right-of-way and Land Acquisition Complete* Complete*
Engineering and Design Complete Complete
Material and Equipment Procurement Complete Complete
Construction of Facilities Complete Complete
Energize Facilities Energized Energized
*Easements already exist. Transfer of Existing Line and easements from CRMWD to GSEC to
be accornplished as soon as reasonably practical after receipt of PUC approval of CCN
application.
While not part of this application, Golden Spread provides below an estimated schedule for
the New Line Extension to be constructed as a routine activity, which explains when Golden
Spread could energize the New Line Extension to provide service to Enterprise upon approval
of the application relating to the Existing Line. On January 11, 2017, Coleman Electric and
GSEC received a request from Enterprise to provide service to its Millersview Pump Station
substation by January 1, 2018. The pump station is constructed and could be fully operational
by May 1, 2018, subject to adequate electrical service. Enterprise recognizes the CCN
process, but requests service at the earliest possible date. See Attachment 3 — Enterprise
Request for Service.
Estimated Dates of New Line Extension: Start Completion
Right-of-way and Land Acquisition October 2017 February 2018
Engineering and Design October 2017 January 2018
Material and Equipment Procurement March 2018 July 2018
9
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APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
Construction of Facilities As early as July 2018 60 days after start of
construction
Energize Facilities 10 days after the later
of final CCN approval
for the Existing Line or
completion of
construction of New
Line Extension
9. Counties:
For each route, list all counties in which the route is to be constructed.
The Existing Line is located in Concho County, Texas.
10. Municipalities:
For each route, list all municipalities in which the route is to be constructed.
Neither the Existing Line nor New Line Extension will be located within the boundaries of a
municipality. The Existing Line is within 3.3 miles of the unincorporated town of Millersview,
Texas and 7.0 miles of Paint Rock, Texas. The New Line Extension is within 6.3 miles of the
unincorporated town of Millersview, Texas.
For each applicant, attach a copy of the franchise, permit or other evidence of the city's
consent held by the utility, if necessary or applicable. If franchise, permit, or other evidence
of the city's consent has been previously filed, provide only the docket number of the
application in which the consent was filed. Each applicant should provide this information
only for the portion(s) of the project which will be owned by the applicant.
Not applicable.
11. Affected Utilities:
Identify any other electric utility served by or connected to facilities in this application.
10
69
APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
The Existing Line taps the existing AEP Ballinger — Eden 69 kV transrnission line at the ERCOT
AEP CRM1 Tap and extends northeasterly approximately 12.6 miles to a privately owned and
operated substation. This substation is owned by CRMWD and is used to serve its O.H. !vie
Reservoir pump station and related facilities.
GSEC will use the Existing Line to provide wholesale power to Coleman Electric at a metering
point at or near the new Enterprise substation, and Coleman Electric will provide retail
service to Enterprise.
Describe how any other electric utility will be affected and the extent of the other utilities'
involvement in the construction of this project. Include any other electric utilities whose
existing facilities will be utilized for the project (vacant circuit positions, ROW, substation
sites and/or equipment, etc.) and provide documentation showing that the owner(s) of the
existing facilities have agreed to the installation of the required project facilities.
Up to an additional 7.8 MW of load will flow on the AEP Ballinger — Eden 69 kV line to the
ERCOT AEP CRM1 Tap to serve the additional load at the Enterprise substation. See
Attachments 4 and 5, reflecting the request for a load increase study to AEP and AEP's load
increase study confirming the ability of the AEP system to accommodate this load.
Coleman Electric currently has a point of interconnection at the above-described tap point,
pursuant to an Interconnection Agreement between Coleman Electric and AEP. See
Attachment 4 - Coleman Electric-AEP Interconnection Agreement. It is expected this
Interconnection Agreement will be amended to add GSEC for this tap point. Coleman Electric
will maintain the existing metering point at the CRMWD substation at O.H. lvie Reservoir to
continue retail service and will establish a new metering point to provide retail service to
Enterprise at the Enterprise substation.
The Existing Line is privately-owned by CRMWD, which is not an electric utility.
12. Financing:
Describe the method of financing this project. For each applicant that is to be reimbursed
for all or a portion of this project, identify the source and amount of the reimbursement
11
70
APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
(actual amount if known, estimated amount otherwise) and the portion(s) of the project
for which the reimbursement will be made.
GSEC intends to finance the purchase of the Existing Line through long-term debt with
National Rural Utilities Cooperative Finance Corporation ("CFC"). GSEC has a line of credit
with CFC that is sufficient to cover the acquisition costs.
Interest on the debt may be capitalized until the project is in service, at which point it is
intended that both the principal and interest will be serviced with Transmission Cost of
Service ("TCOS) revenues.
To the extent costs to acquire the Existing Line are not approved for TCOS recovery by the
Commission, those costs will be paid by Enterprise.
13. Estimated Costs: Provide cost estimates for each route of the proposed project using the
following table. Provide a breakdown of "Other costs by major cost category and amount.
Provide the information for each route in an attachment to this application.
GSEC will purchase all of the Existing Line assets from CRMWD for $3,500,000.00. See
Attachment 1 — Contingent Purchase and Sale Agreement.
By way of comparison for the cost of new construction, the estimated cost for the 0.85-mile
New Line Extension is as follows:
Transmission Substation
Facilities Facilities
Right-of-way and Land Acquisition $ 47,000
Engineering and Design (Utility) $ 30,000
Engineering and Design (Contract) $ 170,000
Procurement of Material and Equipment
(including stores)
$ 202,000
12
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APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
Construction of Facilities (Utility) $ 0
Construction of Facilities (Contract) $ 141,000 $1,218,984*
Other (all costs not included in the above) $ 323,395
Estimated Total Cost $ 913,000
*Estimated cost of substation owned and operated by Enterprise.
For joint applications, provide and separately identify the above-required information for
the portion(s) of the project owned by each applicant.
Not applicable. This is not a joint application.
14. Need for the Proposed Project:
For a standard application, describe the need for the construction and state how the
proposed project will address the need. Describe the existing transmission system and
conditions addressed by this application. For projects that are planned to accommodate
load growth, provide historical load data and load projections for at least five years. For
projects to accommodate load growth or to address reliability issues, provide a description
of the steady state load flow analysis that justifies the project. For interconnection
projects, provide any documentation from a transmission service customer, generator,
transmission service provider, or other entity to establish that the proposed facilities are
needed. For projects related to a Competitive Renewable Energy Zone, the foregoing
requirements are not necessary; the applicant need only provide a specific reference to
the pertinent portion(s) of an appropriate commission order specifying that the facilities
are needed. For all projects, provide any documentation of the review and
recommendation of a PURA §39.151 organization.
The Existing Line is needed to supply power to CRMWD's existing load. The Existing Line and
New Line Extension are needed to serve Enterprises new pipeline pumping station load at
the Millersview Pump Station. GSECs member, Coleman Electric, received a request to
provide transmission voltage (69 kV) retail electric service to a substation adjacent to the
Millersview Pump Station that will be located in Coleman Electries singly certificated retail
13
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APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
service area. See Attachment 3 — Enterprise Request for Service.1 The pump station and
related substation have already been constructed and are owned and operated by
Enterprise. Coleman Electric is obligated to provide adequate service to customers
requesting such in its service area. Coleman Electric requested that GSEC supply wholesale
power to Coleman Electric for the Enterprise load, which GSEC is contractually obligated to
supply to Coleman Electric.
Enterprise constructed, owns, and operates a 69-4.16 kV substation to serve its new
Millersview Pump Station. The substation consists of a 69 kV breaker, a 10/12.5 MVA,
69/4.16 kV transformer, and a 4.16 kV breaker. The pump station consists of three (3) 5000
HP pumps operating at 4.16 kV. The pumps will be started with variable frequency drives
(VFDs) to reduce inrush currents. The VFDs reduce the impact on flicker when the motors
start. In addition to these three pumps, there are various 480 V loads consisting of 40 ton
HVAC, vertical sump pumps, plunger pumps, lube oil fans and pumps, area lighting and
control boxes. A 750 kVA, 4.16 kV/480 V transformer will serve this load. The initial loading
is estimated to be 3000 kW (3 MW) with an ultimate load of 7800 kW (7.8 MW) when the
pipeline is operating at full capacity.
In investigating how to best serve the new Enterprise load, GSEC identified the nearby
CRMWD private 69 kV transmission line serving CRMWD's O.H. !vie Reservoir water pumping
and related facilities. That line comes within approximately 0.85 miles of the new Enterprise
substation and pump station location. The Existing Line has sufficient capacity to serve both
the CRMWD load and the new Enterprise load, as well as projected load in the vicinity. Both
CRMWD and Enterprise require the same transmission voltage (69 kV) power.
As explained in response to Question 15 below, GSEC hired C.H. Guernsey & Company
("Guernsey") to evaluate potential distribution and transmission alternatives to meet the
Enterprise load requirements. Guernsey concluded that the most economical, reliable, and
least impacting alternative was to acquire the Existing Line and construct a short extension
to the Enterprise substation.
'Although this request for service stated 138 kV service, Enterprise confirmed this was a typographical error and that it requested 69 kV service.
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APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
GSEC negotiated with CRMWD to acquire the Existing Line with the goal of obtaining
approval from the Commission to put the Existing Line into public use in the ERCOT system
to serve CRMWD and, through a short extension, Enterprise.
The ultimate load at the new Enterprise pump station is projected to be 7.8 MW. GSEC
requested AEP to study this load increase and the impact on the transmission system. AEP
concluded adding this load to the Existing Line would not negatively impact the transmission
system. See Attachment 5 — AEP Load Increase Study Report. The steady-state power flow
analysis performed by AEP revealed no thermal violations on AEP's Ballinger to Eden 69 kV
line during single outage (N-1) system conditions with the addition of new load totaling 7.8
MW. In the event that system conditions warrant, the load can be transferred to the Eden
source until the system is restored and able to handle the load. There are several preexisting
overloading issues that appear in the area in this analysis, but projects to provide
solutions/improvements for these issues are already being planned and/or in the works.
Additionally, the addition of the 7.8 MW pump station load does not worsen any of these
pre-existing overload issues.
Table 1 below reflects the historical and projected load for the Existing Line, with the
projected load accounting for the additional load resulting from the Enterprise pump station.
The CRMWD load is fairly constant at 4.0 MW, while the Enterprise pump station load grows
from 3.0 MW in 2018 to 7.8 MW in 2020 and beyond.
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APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
Table 1— Historic and Projected Load
Year CRMWD Pump Station Enterprise Pump Station
Historical MW MW
2012 4.577
2013 4.510
2014 4.252
2015 3.353
2016 3.289
2017 3.673
Projected
2018 4.083 3.000
2019 4.085 5.000
2020 4.086 7.800
2021 4.088 7.800
2022 4.090 7.800
The Existing Line is rated at 41 MVA. Tapping this line and extending the new line
approximately 0.85 miles to the Enterprise pump station ultimately adds 7.8 MW to the line.
Both loads on this line will have minimal growth once the load at the Enterprise pump station
reaches its ultimate load by 2020. The total projected line loading is shown in Table 2 —
Projected Transmission Line Loading.
Table 2 — Projected Transmission Line Loading
Year CRMWD 69 kV Line
2018 7.083
2019 9.085
2020 11.886
2021 11.888
2022 11.890
GSEC consulted with the Electric Reliability Council of Texas ("ERCOr) to determine whether
this project required ERCOT Regional Planning Group ("RPG") review. After reviewing
information regarding the project, ERCOT confirmed the project qualifies as a Tier 4, Neutral
project that does not require RPG review. See Attachment 13 — ERCOT Communication.
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APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
15. Alternatives to Project:
For a standard application, describe alternatives to the construction of this project (not
routing options). Include an analysis of distribution alternatives, upgrading voltage or
bundling of conductors of existing facilities, adding transformers, and for utilities that have
not unbundled, distributed generation as alternatives to the project. Explain how the
project overcomes the insufficiencies of the other options that were considered.
Both Enterprise and CRMWD require 69 kV power for their operations. Enterprise requested
Coleman Electric to provide transmission voltage power for its pipeline pumping station and
has constructed its substation facilities to interconnect with a 69 kV source. Enterprise has
purchased and installed all equipment and structures for its new substation and has checked
all systems except those that require a 69 kV source to operate. CRMWD requires 69 kV
power for its pumping facilities and has invested substantial capital to construct the existing
CRMWD transrnission line to provide 69 kV power.
As discussed in the Purpose and Need Study (Attachment 6 — Purpose and Need Study),
Coleman Electric operates a distribution system at 12.5 kV. Coleman Electric does not
operate any other distribution voltage. The area of the new Millersview Pump Station is
served from Coleman Electric's Gouldbusk Substation, which is approximately 15 miles east-
northeast from the Millersview Pump Station. Gouldbusk Substation is located at the end of
a 69 kV radial transmission line. Also in the area, Coleman Electric has three 12.5-kV metering
points, all of which are more than 31 miles from the new pump station. Serving the load from
Gouldbusk Substation results in a voltage drop of 50 volts on a 120-volt base. Reconductoring
the entire route to 477 ACSR conductors results in a 30-volt drop on a 120-volt base. The
USDA's Rural Utilities Service (RUS) System Planning Guide, BULLETIN 1724D-101B, states
the maximum voltage drop on primary distribution lines shall not exceed 8 volts on a 120-
volt base. Using the existing feeders, or reconductoring those feeders, exceeds the RUS
voltage criteria, therefore serving the new load at 12.5 kV is not a reliable or viable option.
GSEC evaluated converting the Coleman Electric distribution system to 24.9 kV. Coleman
Electric does not operate this voltage on its system. This conversion would require replacing
the transformer and rebuilding the distribution voltage bays at Gouldbusk Substation, then
rebuilding approximately 18 miles of distribution feeder plus all lateral taps on the feeder
serving the area. This conversion would cost approximately $2,100,000. However, converting
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APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
Gouldbusk Substation to operate at 24.9 kV instead of 12.5 kV would present a reliability
issue that renders this option not viable. In the event of transformer failure at the Gouldbusk
Substation, Coleman Electric would have no other source to transfer load, thus creating
extended outages in the area.
GSEC also evaluated distributed generation, but determined this was not a viable long-term
solution. The extended use of diesel generators is not practical. The cost of fuel and operating
costs for this type of generation on a continual basis is cost prohibitive. For instance, one
preliminary bid for diesel generation estimated the cost at $1,167,360 per month for six
units, plus a seventh unit as a spare. These costs would be incurred for as long as the
Millersview Pump Station would operate, and they far exceed the cost of a transmission
option. Solar and wind generation are unable to furnish reliable, firm sources of supply for
the loads at affordable costs. Solar, thermal and photovoltaic energy conversion methods
are not yet cost competitive with available, existing conventional generation. Because of the
inherent limitation to daylight hours and steady winds, these types of generation could not
provide the reliability benefits of a transmission system to meet the 24-hours-per-day
requirernents of Enterprise.
As discussed in the Purpose and Need Study (Attachment 6), GSEC also asked Guernsey to
evaluate transmission source alternatives for serving the Enterprise load. There are several
transmission lines in the general vicinity of the Enterprise project site, as depicted in Figure
3 of the Purpose and Need Study.
There are three potential 69 kV sources: the Existing Line, the AEP Ballinger to Eden 69 kV
transmission line, and the radial 69 kV line that terminates at the Gouldbusk Substation.
There is one AEP 138 kV transmission line source that runs southwesterly from Ballinger,
Texas, and an AEP-LCRA 345 kV bulk system transmission line south of the Enterprise project
site. Guernsey concluded the most cost effective and least impacting alternative to meet the
need for this project is for GSEC to purchase the Existing Line and then construct a short 0.85-
mile 69 kV extension to the Enterprise substation. This option is also expected to have the
shortest time to completion, which is important given Enterprise's expectation to have its
pump station fully operational by May 1, 2018, subject to adequate electrical service.
The Purpose and Need Study explains in detail the justification for this conclusion. In
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APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
sumrnary, with respect to the other alternatives evaluated, constructing an entirely new 15-
mile 69 kV transrnission line from a tap point along the AEP Ballinger to Eden 69 kV line would
be more expensive, would take longer to construct, would unnecessarily duplicate CRMWD's
existing facilities, and would unnecessarily affect additional landowners, land uses, and the
environment. Only one 69 kV transmission line is needed because the capacity of the Existing
Line is sufficient to provide power to both CRMWD and Enterprise. Constructing an entirely
new 15-mile transmission line would essentially double the required transmission
investment and impacts to landowners, land uses, and the environrnent, yet neither the new
line nor the Existing Line would exceed 20% of its respective capacity.
Similarly, constructing a new 18-rnile 69 kV transmission line from Gouldbusk Substation or
a new 27.5-mile 69 kV transmission line from a tap point along AEP's 138 kV line would be
more expensive, would take longer to construct, would unnecessarily duplicate CRMWD's
existing facilities, and would unnecessarily affect additional landowners, land uses, and the
environment.
Constructing a 2.5-mile 69 kV transmission line from a tap point along the AEP-LCRA 345 kV
bulk system transmission line to serve Enterprise's 7.8 MW load would be highly unusual,
would require study by ERCOT, and would require unique facilities with long build times,
including a 345-138 kV step-down station with 345 kV breakers and a 100 MVA rated
transformer (far more than needed to serve Enterprise) and another 138-69 kV step-down
station. Again, this transmission alternative would be more expensive, would take longer to
construct, would unnecessarily duplicate CRMWD's existing facilities, and would
unnecessarily affect more landowners, land uses, and the environment.
Accordingly, GSEC seeks in this Application to convert the Existing Line to public use so that
it can be used to serve CRMWD and Enterprise, and any future load growth in the area.
16. Schematic or Diagram:
For a standard application, provide a schematic or diagram of the applicant's transmission
system in the proximate area of the project. Show the location and voltage of existing
transmission lines and substations, and the location of the construction. Locate any taps,
ties, meter points, or other facilities involving other utilities on the system schematic.
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APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
See Attachment 7 — Transmission System Schematic.
See Attachment 8 — Map of Existing Line and Nearby Transmission Lines.
See Attachment 9 — Overview Map.
17. Routing Study:
Provide a brief summary of the routing study that includes a description of the process of
selecting the study area, identifying routing constraints, selecting potential line segments,
and the selection of the routes. Provide a copy of the complete routing study conducted
by the utility or consultant. State which route the applicant believes best addresses the
requirements of PURA and P.U.C. Substantive Rules.
A routing study is not appropriate for this project. GSEC requests a waiver of the
requirements contained in this question. There is good cause to grant a waiver for the
following reasons:
- The Existing Line is already designed, constructed and located on the land at issue.
- GSEC is not proposing an alternative route for the Existing Line.
As the line already exists, there are no routing constraints.
- The environmental, ecological, cultural, aesthetic, land use, and other effects of the
Existing Line are already fixed.
- All directly affected landowners whose property is crossed by the Existing Line have
consented to the transmission line. See Attachment 14 - Easements for Existing Line.
The New Line Extension is a routine activity exempt from the requirements to obtain a CCN.
See PUC Subst. Rule 25.101(c)(5)(A). In particular, the New Line Extension meets the
following criteria:
- it will be an extension of an existing transmission line solely to provide service to a
substation or metering point;
- it will be an extension to a substation or metering point that does not exceed one mile;
and
- all landowners whose property is crossed by the new transmission facilities have given
prior written consent. See Attachment 11 - Easements for New Line Extension.
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APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF
CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
18. Public Meeting or Public Open House:
Provide the date and location for each public meeting or public open house that was held
in accordance with P.U.C. PROC. R. 22.52. Provide a summary of each public meeting or
public open house including the approximate number of attendants, and a copy of any
survey provided to attendants and a summary of the responses received. For each public
meeting or public open house provide a description of the method of notice, a copy of any
notices, and the number of notices that were mailed and/or published.
No public meeting is required because less than 25 persons would be entitled to receive
direct mail notice of this CCN application. See PUC Proc. R. 22.52(a)(4) and Attachment 14,
reflecting easements from the eight landowners crossed by the Existing Line. See also GSEC's
Response to Question 17, setting out good cause for exception from this requirement for the
Existing Line and the exemption from CCN requirements for the New Line Extension.
19. Routing Maps:
Base maps should be a full scale (one inch = not more than one mile) highway map of the
county or counties involved, or other maps of comparable scale denoting sufficient cultural
and natural features to permit location of all routes in the field. Provide a map (or maps)
showing the study area, routing constraints, and all routes or line segments that were
considered prior to the selection of the routes. Identify the routes and any existing facilities
to be interconnected or coordinated with the project. Identify any taps, ties, meter points,
or other facilities involving other utilities on the routing map. Show all existing
transmission facilities located in the study area. Include the locations of radio transmitters
and other electronic installations, airstrips, irrigated pasture or cropland, parks and
recreational areas, historical and archeological sites (subject to the instructions in Question
27), and any environmentally sensitive areas (subject to the instructions in Question 29).
Provide aerial photographs of the study area displaying the date that the photographs
were taken or maps that show (1) the location of each route with each route segment
identified, (2) the locations of all major public roads including, as a minimum, all federal
and state roadways, (3) the locations of all known habitable structures or groups of
habitable structures (see Question 19 below) on properties directly affected by any route,
and (4) the boundaries (approximate or estimated according to best available information
if required) of all properties directly affected by any route.
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APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
For each route, cross-reference each habitable structure (or group of habitable structures)
and directly affected property identified on the maps or photographs with a list of
corresponding landowner names and addresses and indicate which route segment affects
each structure/group or property.
See GSECs Response to Question 17, setting out good cause for exception from the routing
maps requirement for the Existing Line and the exemption from CCN requirements for the
New Line Extension. Nonetheless, GSEC provides the following maps to assist the
Commission's review of this application:
Attachment 8 — Map of Existing Line and Nearby Transmission Lines.
Attachment 9 — Overview Map.
Attachment 10 — Inset Map of New Line Extension.
In addition, Attachment 11 contains the landowner consents for the New Line Extension, in
the form of easements.
20. Permits:
List any and all permits and/or approvals required by other governmental agencies for the
construction of the proposed project. Indicate whether each permit has been obtained.
Permits or approvals may be required after Commission approval of the project, but prior to
the commencement of construction. Among those that may be required are:
- Permits or approvals from the Texas Department of Transportation (TxDOT) for any
crossing of, or access from, a state-maintained roadway.
21. Habitable structures:
For each route list all single-family and multi-family dwellings and related structures,
mobile homes, apartment buildings, commercial structures, industrial structures, business
structures, churches, hospitals, nursing homes, schools, or other structures normally
inhabited by humans or intended to be inhabited by humans on a daily or regular basis
within 300 feet of the centerline if the proposed project will be constructed for operation
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APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
at 230kV or less, or within 500 feet of the centerline if the proposed project will be
constructed for operation at greater than 230kV. Provide a general description of each
habitable structure and its distance from the centerline of the route. In cities, towns or
rural subdivisions, houses can be identified in groups. Provide the number of habitable
structures in each group and list the distance from the centerline of the route to the closest
and the farthest habitable structure in the group. Locate all listed habitable structures or
groups of structures on the routing map.
GSEC requests a waiver of the requirements contained in this question. There is good cause
to grant a waiver for the following reasons:
- The Existing Line is already designed, constructed and located on the land at issue.
GSEC is not proposing an alternative route for the Existing Line.
- As the line already exists, there are no newly affected habitable structures.
- Any effects of the Existing Line on habitable structures is already fixed.
- All directly affected landowners owning property crossed by the transmission line have
consented to the construction of the line.
As explained in GSECs Response to Question 17, the New Line Extension is exempt from the
requirements to obtain a CCN. See PUC Subst. Rule 25.101(c)(5)(A).
22. Electronic Installations:
For each route, list all commercial AM radio transmitters located within 10,000 feet of the
center line of the route, and all FM radio transmitters, microwave relay stations, or other
similar electronic installations located within 2,000 of the center line of the route. Provide
a general description of each installation and its distance from the center line of the route.
Locate all listed installations on a routing map.
GSEC requests a waiver of the requirements contained in this question. There is good cause
to grant a waiver for the following reasons:
- The Existing Line is already designed, constructed and located on the land at issue.
- GSEC is not proposing an alternative route for the Existing Line.
- As the line already exists, there are no newly affected electronic installations.
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APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
- Any effects of the Existing Line on electronic installations is already fixed.
- All directly affected landowners owning property crossed by the transmission line have
consented to the transmission line.
As explained in GSECs Response to Question 17, the New Line Extension is exempt from the
requirements to obtain a CCN. See PUC Subst. Rule 25.101(c)(5)(A).
23. Airstrips:
For each route, list all known private airstrips within 10,000 feet of the center line of the
project. List all airports registered with the Federal Aviation Administration (FAA) with at
least one runway more than 3,200 feet in length that are located within 20,000 feet of the
center line of any route. For each such airport, indicate whether any transmission
structures will exceed a 100:1 horizontal slope (one foot in height for each 100 feet in
distance) from the closest point of the closest runway. List all listed airports registered with
the FAA having no runway more than 3,200 feet in length that are located within 10,000
feet of the center line of any route. For each such airport, indicate whether any
transmission structures will exceed a 50:1 horizontal slope from the closest point of the
closest runway. List all heliports located within 5,000 feet of the center line of any route.
For each such heliport, indicate whether any transmission structures will exceed a 25:1
horizontal slope from the closest point of the closest landing and takeoff area of the
heliport. Provide a general description of each listed private airstrip, registered airport,
and heliport; and state the distance of each from the center line of each route. Locate and
identify all listed airstrips, airports, and heliports on a routing map.
GSEC requests a waiver of the requirements contained in this question. There is good cause
to grant a waiver for the following reasons:
The Existing Line is already designed, constructed and located on the land at issue.
GSEC is not proposing an alternative route for the Existing Line.
As the line already exists, there are no newly affected airstrips.
- Any effects of the Existing Line on airstrips is already fixed.
All directly affected landowners owning property crossed by the transmission line have
consented to the transmission line.
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APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
As explained in GSECs Response to Question 17, the New Line Extension is exempt from the
requirements to obtain a CCN. See PUC Subst. Rule 25.101(c)(5)(A).
24. Irrigation Systems:
For each route identify any pasture or cropland irrigated by traveling irrigation systems
(rolling or pivot type) that will be traversed by the route. Provide a description of the
irrigated land and state how it will be affected by each route (number and type of
structures etc.). Locate any such irrigated pasture or cropland on a routing map.
GSEC requests a waiver of the requirements contained in this question. There is good cause
to grant a waiver for the following reasons:
- The Existing Line is already designed, constructed and located on the land at issue.
GSEC is not proposing an alternative route for the Existing Line.
- As the line already exists, there are no newly affected irrigation systems.
- Any effects of the Existing Line on irrigation systems is already fixed.
- All directly affected landowners owning property crossed by the transmission line have
consented to the transmission line.
As explained in GSECs Response to Question 17, the New Line Extension is exempt from the
requirements to obtain a CCN. See PUC Subst. Rule 25.101(c)(5)(A).
25. Notice:
Notice is to be provided in accordance with P.U.C. PROC. R. 22.52.
A. Provide a copy of the written direct notice to owners of directly affected land.
Attach a list of the names and addresses of the owners of directly affected land
receiving notice.
GSEC requests a waiver of the requirements contained in this question. There is good cause
to grant a waiver for the following reasons:
- The Existing Line is already designed, constructed and located on the land at issue.
- GSEC is not proposing an alternative route for the Existing Line.
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APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
As the line already exists, there are no newly affected landowners along the route of the
Existing Line.
- Any effects of the Existing Line on directly affected landowners is already fixed.
- All directly affected landowners owning property crossed by the transmission line have
consented to the transmission line. See Attachment 14 — Easements for Existing Line.
As explained in GSECs Response to Question 17, the New Line Extension is exempt from the
requirements to obtain a CCN. See PUC Subst. Rule 25.101(c)(5)(A). In particular, all
landowners whose property is crossed by the new transmission facilities have given prior
written consent. See Attachment 11 - Easements for New Line Extension.
B. Provide a copy of the written notice to utilities that are located within five miles of
the routes.
See Attachment 12 — Notice Letter.
A copy of the Notice Letter will be provided to the following utilities:
Lower Colorado River Authority
Attn: Don Kiser, Manager of Regulatory Affairs
P.O. Box 220
Austin, Texas 78767-0220
AEP Texas
Attn: Gilbert Hughes, Director Regulatory Services
400 West 15th Street, Suite 1500
Austin, Texas 78701
Coleman County Electric Cooperative, Inc.
Attn: Clint Gardner, General Manager
P.O. Box 860
Coleman, Texas 76834-0860
Concho Valley Electric Cooperative, Inc.
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APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
Attn: Kelly Lankford, Executive Vice President & CEO
P.O. Box 3388
San Angelo, Texas 76905
C. Provide a copy of the written notice to county and municipal authorities, and the
Department of Defense Siting Clearinghouse. Notice to the DoD Siting
Clearinghouse should be provided at the email address found at
http://www.acq.osd.mil/dodsc/.
GSEC requests a waiver of the requirement to provide notice to the DoD Siting Clearinghouse
contained in this question. There is good cause to grant a waiver for the following reasons:
The Existing Line is already designed, constructed and located on the land at issue.
- GSEC is not proposing an alternative route for the Existing Line.
- As the line already exists, there are no newly affected military installations.
- Any effects of the Existing Line on a military installation is already fixed.
As explained in GSECs Response to Question 17, the New Line Extension is exempt from
the requirements to obtain a CCN. See PUC Subst. Rule 25.101(c)(5)(A).
There are no incorporated municipalities within five miles of the Existing Line. GSEC will
provide written notice to Concho County and the Office of Public Utility Counsel using the
form attached as Attachment 12 — Notice Letter. A copy of this notice letter will be sent to
the following addresses:
Concho County, Texas
County Judge David Dillard
P.O. Box 158
Paint Rock, Texas 76866
Office of Public Utility Counsel
P.O. Box 12397
Austin, Texas
78711
27
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APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
D. Provide a copy of the notice that is to be published in newspapers of general
circulation in the counties in which the facilities are to be constructed. Attach a list
of the newspapers that will publish the notice for this application. After the notice
is published, provide the publisher's affidavits and tear sheets.
GSEC requests a waiver of the requirements contained in this question. There is good cause
to grant a waiver for the following reasons:
- The Existing Line is already designed, constructed and located on the land at issue.
- GSEC is not proposing an alternative route for the Existing Line.
- As the line already exists, there are no newly affected landowners along the route of the
Existing Line.
- Any effects of the Existing Line on directly affected landowners is already fixed.
- All directly affected landowners owning property crossed by the transmission line have
consented to the transmission line. See Attachrnent 14 — Easements for Existing Line.
As explained in GSECs Response to Question 17, the New Line Extension is exempt from the
requirements to obtain a CCN. See PUC Subst. Rule 25.101(c)(5)(A). In particular, all
landowners whose property is crossed by the new transmission facilities have given prior
written consent. See Attachment 11 - Easements for New Line Extension.
For a CREZ application, in addition to the requirements of P.U.C. PROC. R. 22.52 the
applicant shall, not less than twenty-one (21) days before the filing of the application,
submit to the Commission staff a "generie copy of each type of alternative published and
written notice for review. Staffs comments, if any, regarding the alternative notices will
be provided to the applicant not later than seven days after receipt by Staff of the
alternative notices, Applicant may take into consideration any comments made by
Commission staff before the notices are published or sent by mail.
Not applicable.
26. Parks and Recreation Areas:
For each route, list all parks and recreational areas owned by a governmental body or an
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APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
organized group, club, or church and located within 1,000 feet of the center line of the
route. Provide a general description of each area and its distance from the center line.
Identify the owner of the park or recreational area (public agency, church, club, etc.). List
the sources used to identify the parks and recreational areas. Locate the listed sites on a
routing map.
GSEC requests a waiver of the requirernents contained in this question. There is good cause
to grant a waiver for the following reasons:
- The Existing Line is already designed, constructed and located on the land at issue.
- GSEC is not proposing an alternative route for the Existing Line.
As the line already exists, there are no newly affected parks and recreation areas.
- Any effects of the Existing Line on parks and recreation areas is already fixed.
- All directly affected landowners owning property crossed by the transmission line have
consented to the transmission line.
As explained in GSECs Response to Question 17, the New Line Extension is exempt from the
requirements to obtain a CCN. See PUC Subst. Rule 25.101(c)(5)(A).
27. Historical and Archeological Sites:
For each route, list all historical and archeological sites known to be within 1,000 feet of
the center line of the route. Include a description of each site and its distance from the
center line. List the sources (national, state or local commission or societies) used to
identify the sites. Locate all historical sites on a routing map. For the protection of the sites,
archeological sites need not be shown on maps.
GSEC requests a waiver of the requirements contained in this question. There is good cause
to grant a waiver for the following reasons:
The Existing Line is already designed, constructed and located on the land at issue.
- GSEC is not proposing an alternative route for the Existing Line.
- As the line already exists, there are no routing constraints.
The environmental, ecological, cultural, aesthetic, land use, and other effects of the
Existing Line are already fixed.
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APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF
CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
- All directly affected landowners whose property is crossed by the Existing Line have
consented to the transrnission line.
As explained in GSECs Response to Question 17, the New Line Extension is exempt from the
requirements to obtain a CCN. See PUC Subst. Rule 25.101(c)(5)(A).
28. Coastal Management Program:
For each route, indicate whether the route is located, either in whole or in part, within the
coastal management program boundary as defined in 31 T.A.C. 003.1. If any route is,
either in whole or in part, within the coastal management program boundary, indicate
whether any part of the route is seaward of the Coastal Facilities Designation Line as
defined in 31 T.A.C. §19.2(a)(21). Using the designations in 31 T.A.C. §501.3(b), identify the
type(s) of Coastal Natural Resource Area(s) impacted by any part of the route and/or
facilities.
No part of the Existing Line or New Line Extension is located within the Coastal Management
Program boundary, as defined in 31 T.A.C. §503.1.
29. Environmental Impact:
Provide copies of any and all environmental impact studies and/or assessments of the
project. If no formal study was conducted for this project, explain how the routing and
construction of this project will impact the environment. List the sources used to identify
the existence or absence of sensitive environmental areas. Locate any environmentally
sensitive areas on a routing map. In some instances, the location of the environmentally
sensitive areas or the location of protected or endangered species should not be included
on maps to ensure preservation of the areas or species. Within seven days after filing the
application for the project, provide a copy of each environmental impact study and/or
assessment to the Texas Parks and Wildlife Department (TPWD) for its review at the
address below. Include with this application a copy of the letter of transmittal with which
the studies/assessments were or will be sent to the TPWD.
Wildlife Habitat Assessment Program
Wildlife Division
Texas Parks and Wildlife Department
4200 Smith School Road
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APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
Austin, Texas 78744
The applicant shall file an affidavit confirming that the letter of transmittal and
studies/assessments were sent to TPWD.
As the Existing Line already exists, no formal environmental impact studies or assessments
were conducted for this Project. The purchase of the Existing Line is not expected to have
any additional impacts on the environment.
The purchase of the Existing Line and its conversion to public use does not have any physical
or environmental impacts. No new construction is required for GSEC to operate the Existing
Line. The Existing Line will be operated and maintained as it is today. The only difference is
that the Existing Line will be dedicated to public use so that it may then be used to serve
CRMWD, Enterprise, and other customers that request service. If GSECs Application is
approved, and GSEC later constructs the New Line Extension, then the amount of electrical
energy flowing through the Existing Line will be greater than it is today. But the increased
electrical flow is not expected to cause any environmental impacts. In addition:
- The Existing Line is already designed, constructed and located on the land at issue.
- GSEC is not proposing an alternative route for the Existing Line.
- As the line already exists, there are no routing constraints or new environmental impacts,
thus no environmental assessment was conducted or is needed.
- The environmental, ecological, cultural, aesthetic, land use, and other effects of the
Existing Line are already fixed.
For these reasons, GSEC did not conduct a formal environmental impact study or assessment.
And, because there is no such environmental impact study or assessment to provide to
TPWD, GSEC will not be filing an affidavit confirming transmittal to TPWD.
To the extent the foregoing response does not fully respond to Question 29, GSEC requests
a waiver of the requirements contained in this question for the good cause reasons stated
above.
As explained in GSECs Response to Question 17, the New Line Extension is exempt from the
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APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF
CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO. 48212
requirements to obtain a CCN. See PUC Subst. Rule 25.101(c)(5)(A).
30. Affidavit
Attach a sworn affidavit from a qualified individual authorized by the applicant to verify and
affirm that, to the best of their knowledge, all information provided, statements made, and
matters set forth in this application and attachments are true and correct.
A sworn affidavit from Bret Yeary is included as Attachment 15.
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APPLICATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. TO AMEND ITS CERTIFICATE OF
CONVENIENCE AND NECESSITY FOR THE CONVERSION OF CRMWD'S PRIVATE 69 kV TRANSMISSION LINE TO
PUBLIC USE IN CONCHO COUNTY, TEXAS
DOCKET NO, 48212
Attachment No. 1—Contingent Purchase and Sale Agreement
92
CONTINGENT PURCHASE AND SALE AGREEMENT
THE STATE OF TEXAS KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF CONCHO
This CONTINGENT PURCHASE AND SALE AGREEMENT (this "Agreement") is made by and between COLORADO RIVER MUNICIPAL WATER DISTRICT, a political subdivision of the State of Texas (hereinafter referred to as "Seller"), and GOLDEN SPREAD ELECTRIC COOPERATIVE, INC., a Texas cooperative corporation (hereinafter referred to as "Purchaser"), upon the terms and conditions set forth herein. Seller and Purchaser are referred to herein collectively as "Parties" and individually as a "Party."
This Agreement provides for the purchase and sale of an approximately 12.4 mile 69kV transmission line and the associated Easements, as that term is defined below and as such Easements are described on Exhibit A, attached hereto.
In consideration of the mutual covenants and agreements set forth above and herein the Parties hereto agree as follows:
I. Definitions. In addition to terms defined elsewhere in this Agreement, as used herein, the following terms shall have the following meanings:
"Applicable Governmental Authority/ies" shall mean all federal, state and local govemmental and quasi-governmental agencies, bodies, entities, boards and authorities that have jurisdiction over the Property, the furnishing of utilities or other services to the Property, improvement, development, occupancy, sale or use of the Property.
"Assignment" shall mean the Assignment of Right-of-Way Easements for 12.4 Mile 69kV Transmission Line in Concho County, Texas attached hereto as Exhibit B and incorporated herein for all purposes.
"Bill of Sale shall mean the Bill of Sale For 69 KV Transmission Line attached hereto as Exhibit C and incorporated herein for all purposes.
"Business Day" shall mean any day other than Saturday, Sunday, any Federal holiday, or any holiday in the State in which the Property is located.
"Closine shall mean the closing of the Transaction.
"Closing Date shall mean the day that the Transaction closes as set forth in Section 13.
"Closing Documents" shall mean all documents executed and delivered by Purchaser or Seller as required by Sections 9 and 10 or as otherwise executed and delivered by Purchaser or Seller as part of the Closing.
"Commissioe shall mean the Public Utility Commission of Texas.
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"Deposit" shall mean an earnest money deposit in the amount of $10,000 to be held in trust by counsel for Seller, or such other party mutually agreed to by the parties (the "Escrow Agent") as hereafter provided, to secure Purchaser's performance under the Contract. The Deposit shall be governed by the terms of Section 29 below.
"Easements" shall mean those three (3) easements described in the documents titled "Right of Way" and those five (5) easements described in the documents titled "Easement and "Right-of-Way together with the documents, to the extent such documents are assignable, titled "Crossing Permits," as each is more specifically described in Exhibit A which is incorporated herein for all purposes, together with any and all other easement rights of Seller related to or associated with the Transmission Line, whether acquired by prescription, estoppel, consent, permission to place in public right of way, or otherwise.
"ERCOr shall mean the Electric Reliability Council of Texas.
"Escrow Agent" shall mean LaDonna Bonner-Gist, American Land Title, LLC 620 S. Taylor, Suite 104, Amarillo Texas 79101.
"Laws" shall mean all municipal, county, state or federal statutes, codes, ordinances, laws, rules or regulations.
"Property" shall mean collectively, (a) the Transmission Line, and (b) the Easements.
"PUC" shall mean the Public Utility Commission of Texas or its successor agencies.
"Transactioe shall mean the transaction contemplated by this Agreement.
"Transmission Line" shall mean an the transmission line existing as of the Closing (as hereafter defined) more specifically described as an approximately 12.4 mile 69Ky electrical transmission line located in Concho County and extending from the terminals of an existing switch located 7 miles southeast of Paint Rock, Texas and one mile east of U.S. Route 83 to the point of attachment of insulators to an existing deadend tower in Seller's substation at O.H. Ivie Reservoir, including all structures, poles, crossbars, circuits, guy lines, insulators, hardware, conductors, switches, grounding systems, communication systems and any components of a similar nature required to reliably deliver electric power to multiple end users, as further defined in the Bill of Sale.
2. Purchase and Sale. Subject to the terms of this Agreement, the contingencies set forth in Section 4 and the Closing Documents, Seller agrees to convey and assign the Property, and Purchaser agrees to purchase and assume ownership and title to the Property. The Transmission Line will be conveyed by Seller by a bill of sale. The Easements will be conveyed "as is" by Seller by an assignment of right-of-way easements. Notwithstanding the foregoing, Purchaser acknowledges that the three (3) Easements which are titled Right of Way and which are more particularly described on Exhibit A prohibit the transfer of easements described therein unless the proposed transferee is an electric cooperative or investor-owned electric company which has existing electric transmission or distribution facilities in Concho County, Texas. Purchaser acknowledges that Seller shall have no obligation to obtain consents for the assignment of the Easements, if any are needed, but Seller shall reasonably cooperate with Purchaser in obtaining
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any necessary consents.
The conveyance of the Property under this Agreement shall be subject to the following covenants and restrictions to be contained in the Assignment and Bill of Sale from Seller to Purchaser:
NOTWITHSTANDING ANY PROVISION CONTAINED HEREIN TO THE CONTRARY, UPON CLOSING OF THIS TRANSACTION AND PURCHASER'S ACCEPTANCE OF THE ASSIGNMENT AND BILL OF SALE, EXCEPT FOR SELLER'S REPRESENTATIONS AND WARRANTIES EXPRESSLY CONTAINED IN THIS CONTINGENT PURCHASE AND SALE AGREEMENT, THE ASSIGNMENT AND THE BILL OF SALE, THE PROPERTY SHALL BE CONVEYED "AS IS" AND WITH ALL FAULTS, AND SELLER EXPRESSLY DISCLAIMS, AND PURCHASER ACKNOWLEDGES AND ACCEPTS THAT SELLER HAS DISCLAIMED, ANY AND ALL REPRESENTATIONS, WARRANTIES, OR GUARANTIES, OF ANY KIND, ORAL OR WRITTEN, EXPRESSED OR IMPLIED, OR ARISING BY OPERATION OF LAW OR OTHERWISE CONCERNING SUCH PROPERTY AND IMPROVEMENTS, INCLUDING, WITHOUT LIMITATION, (i) THE CONDITION OF THE PROPERTY OR ANY PORTION THEREOF, INCLUDING WITHOUT LIMITATION WARRANTIES OF SUITABILITY, HABITABILITY, MERCHANTABILITY, DESIGN, FITNESS FOR ANY SPECIFIC PURPOSE OR A PARTICULAR PURPOSE, OR GOOD AND WORKMANLIKE CONSTRUCTION, (ii) THE NATURE OR QUALITY OF CONSTRUCTION, STRUCTURAL DESIGN AND ENGINEERING OF THE PROPERTY, (iii) THE ENVIRONMENTAL CONDITION OF THE PROPERTY AND THE PRESENCE OR ABSENCE OF OR CONTAMINATION BY HAZARDOUS MATERIALS OR THE COMPLIANCE OF THE PROPERTY WITH ALL REGULATIONS OR LAWS RELATING TO HEALTH OR THE ENVIRONMENT, (iv) THE QUALITY OF THE LABOR AND MATERIALS INCLUDED IN THE PROPERTY, (v) THE SOIL CONDITIONS, DRAINAGE, FLOODING CHARACTERISTICS, UTILITIES OR OTHER CONDITIONS EXISTING IN OR TO THE PROPERTY, AND (vi) THE COMPLIANCE OF THE PROPERTY WITH ANY REQUIREMENTS ESTABLISHED BY THE AMERICANS WITH DISABILITIES ACT. EXCEPT FOR SELLER'S REPRESENTATIONS AND WARRANTIES EXPRESSLY CONTAINED IN THE ASSIGNMENT AND BILL OF SALE, PURCHASER, BY ACCEPTING THE ASSIGNMENT AND BILL OF SALE, ACKNOWLEDGES THAT PURCHASER IS NOT AND HAS NOT BEEN RELYING ON ANY STATEMENTS (ORAL OR WRITTEN) WHICH MAY HAVE BEEN MADE OR MAY BE MADE (OR PURPORTEDLY MADE) BY SELLER, OR ANY OF SELLER'S RESPECTIVE AGENTS OR REPRESENTATIVES. PURCHASER ACKNOWLEDGES THAT PRIOR TO CLOSING, PURCHASER (OR PURCHASER'S REPRESENTATIVES) THOROUGHLY INSPECTED AND EXAMINED THE PROPERTY AND TERMS AND CONDITIONS OF THE EASEMENTS TO THE EXTENT DEEMED NECESSARY BY PURCHASER IN ORDER TO ENABLE PURCHASER TO EVALUATE THE CONDITION OF THE PROPERTY AND ALL OTHER ASPECTS OF THE PROPERTY. EXCEPT FOR A BREACH OF SELLER'S REPRESENTATIONS AND WARRANTIES EXPRESSLY CONTAINED IN THE ASSIGNMENT OR BILL OF SALE, UPON CLOSING PURCHASER SHALL EXPRESSLY RELEASE SELLER AND EACH OF SELLEWS
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RELATED PARTIES FROM ALL RISKS, LIABILITIES, CLAIMS, DAMAGES, AND COSTS WHICH MAY THEREAFTER BE INCURRED BY OR ASSERTED AGAINST PURCHASER IN CONNECTION WITH OR RELATED TO THE PROPERTY, INCLUDING WITHOUT LIMITATION, ANY LIABILITY WITH RESPECT TO ENVIRONMENTAL LAWS, AND PURCHASER SHALL FURTHER AGREE THAT SELLER SHALL NOT BE LIABLE FOR ANY SPECIAL, DIRECT, INDIRECT, CONSEQUENTIAL OR OTHER DAMAGES, RESULTING OR ARISING FROM OR RELATED TO PURCHASER'S OWNERSHIP, USE, CONDITION, LOCATION, DEVELOPMENT OR OPERATION OF THE PROPERTY.
3. Purchase Price. Seller agrees to accept and Purchaser agrees to pay as consideration for the sale of the Property a total sum equal to THREE MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($3,500,000) ("Purchase Price"). The Purchase Price will be paid in cash at the Closing, as hereinafter defined. Purchaser's failure to pay the full amount of the Purchase Price at Closing shall be a default by Purchaser under this Agreement.
4. Contingencies. Purchaser's obligation to purchase pursuant to this Agreement is contingent upon successful completion of each of the following:
(a) The Purchaser obtaining certain limited State of Texas required regulatory approvals, specifically issuance by the PUC of a final non-appealable order approving an amendment to Purchaser's certificate of convenience and necessity (CCN) No. 30189 and any other applicable requirement set out by the PUC, for the transfer and operation of the Transmission Line, to the extent such approvals are required by law. Purchaser shall make all reasonable efforts to file its CCN amendment application on or before April 30, 2018.
As to any obligation of Seller, the satisfaction of the contingency in this subsection 4(a) shall release Seller of any obligation to refund or otherwise return to Purchaser or its successors, or assigns any amounts of the Purchase Price or other costs incurred by Purchaser or its successors, or assigns.
For a period not to exceed five (5) years from the Closing, Seller shall reasonably support Purchaser's applications to obtain the regulatory approvals and assurances noted above and support Purchaser in any future interim rate case or full rate case that seeks to include the cost of the Property in Purchaser's ERCOT transmission cost of service so long as the support provided by Seller (i) is normal and customary, (ii) is at Purchaser's sole cost and expense, and (iii) shall not result in an obligation by Seller to refund or otherwise return to Purchaser any portion of the Purchase Price or any other costs incurred by Purchaser or assessed against Purchaser as part of the rate case including, but not limited to, any responsibility on Seller's part for any subsequent disallowance of any rate case expenses . Such support shall include filing in support of any filed application upon request of Purchaser, assisting in providing information on the Property that may be requested by the Commission, ERCOT, or any other party in such proceedings and providing information and documentation needed to support the prudency of investment in the Property. Purchaser shall be responsible for all costs associated with the approvals and assurances and shall reimburse Seller for its reasonable costs incurred as part of obtaining the
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approvals and assurances.
(b) Purchaser's member Coleman County Electric Cooperative, Inc., after good faith, commercially reasonable efforts to do so, entering into a formal agreement with Enterprise Crude Pipeline, LLC or one of its affiliates for the provision of retail electric service over the Transmission Line by the Review Period Expiration Date (defined below).
(c) Determination materially by Purchaser that the design, materials and condition of the Transmission Line meet applicable Laws, applicable industrial code requirements and all ERCOT standards; provided, however, Purchaser shall have until 5 p.m. central standard time on July 31, 2018 to assert the existence of the failure of this contingency.
Purchaser, in its sole discretion and upon written notice to Seller, may terminate this Agreement if Purchaser believes that the foregoing conditions cannot be met on or before September 30, 2019, as extended pursuant to the terms of this Agreement (the "Review Period Expiration Date") and upon such termination will receive back its Deposit. Purchaser may obtain a three month extension of the Review Period Expiration Date upon a showing of good cause and reasonable diligence toward completion of the PUC process if the PUC has not acted on or issued a non-appealable order on Purchaser's CCN application by September 30, 2019. Thereafter, any extension period shall only be by mutual agreement of Seller and Purchaser. If Purchaser fails to terminate this Agreement in writing on or before the Review Period Expiration Date, the Deposit shall be non-refundable to Purchaser but applicable to the Purchase Price if Purchaser proceeds to Closing. Purchaser in its sole discretion also may waive all or any part of the Purchaser's contingent requirements, which such waiver must be in writing, delivered to Seller, on or before the Review Period Expiration Date. Purchaser and Seller also agree that if Purchaser has not received any necessary consents to the assignment of those easement titled Right of Way, which are more particularly described on Exhibit A by the Review Period Expiration Date, this Agreement shall automatically terminate and Purchaser will receive back its Deposit and Seller shall have no obligation to assign any of the Easements or convey the Transmission Line. On or after the Review Period Expiration Date, if the contingencies above are not met or waived and Closing has not occurred in accordance with Section 13 of this Agreement for reasons not attributable to Seller, Seller may terminate this Agreement by providing written notice of such termination to Purchaser and receive the Deposit, thereby releasing both parties from this Agreement.
Notwithstanding any provision in this Agreement to the contrary, Purchaser acknowledges and agrees that Seller shall have no obligation to refund or otherwise return to Purchaser or its successors or assigns any amount of the Purchase Price or other costs incurred by Purchaser or its successors or assigns which may arise under current or future rate structure regulations or other regulations including, but not limited to, any responsibility on Seller's part for any subsequent rate treatment or expense recovery involving Purchaser's rates.
4A. Contingencies. Seller's obligation to sell and convey pursuant to this Agreement is contingent upon successful completion of each of the following:
(a) Promptly obtaining an opinion of bond counsel that the proposed sale and
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conveyance is permitted by all outstanding bonds or other financial obligations of Seller; that no bond or other financial covenants, obligations or requirements would be violated or compromised by such sale and conveyance; and that such sale and conveyance will not have an adverse effect on Seller's standing and ratings in the financial markets; all as determined in Seller's sole discretion.
(b) Promptly obtaining an opinion of tax counsel that the proposed sale and conveyance is permitted by applicable tax law, and that such sale and conveyance will not have adverse tax consequences for Seller, as determined in Seller's sole discretion.
5. Inspection. Subject to the terms of each respective Easement and the obtaining by Purchaser of any consents needed from the grantors of such Easements, from the Effective Date (as defined in Section 30) until the Review Period Expiration Date or the earlier termination of this Agreement, Purchaser, its agents, employees, and representatives shall have a continuing right of reasonable access to the Property for the purpose of conducting title work, surveys, engineering, geotechnical, and environmental inspections and tests (including intrusive inspection and sampling) and any other inspections, studies, or tests reasonably required by Purchaser (all collectively "Inspection"). If any Inspection disturbs the Property, Purchaser will restore the Property to the same condition as existed prior to any such Inspection. Notwithstanding the foregoing, Purchaser must also obtain Seller's prior written approval, such approval not to be unreasonably withheld, of the scope and method of any Inspections, including any environmental testing or investigation, and any Inspection which would alter the physical condition of the Property, prior to Purchaser's commencement of such Inspections. For purposes of clarification, Purchaser may not conduct or engage in any sampling (including but not limited to, sampling for air quality, vapor, soil and water quality), boring, drilling or other invasive environmental and/or land use testing or examination of or concerning the Property without obtaining Seller's prior written approval. Purchaser further acknowledges that Seller does not have the right under the Easements to permit third-party testing on, over or under the Easements and any consents required by the landowner to enter the real property related to Easements or to conduct Inspections thereon shall be obtained by Purchaser. Purchaser shall indemnify and hold Seller and all its related parties harmless from and against any and all claims or damages to the extent resulting from the activities of Purchaser on the Property, and Purchaser shall repair any and all damage caused, in whole or in part, by Purchaser or its agents and designees that occurs before Closing and return the Property to its condition prior to such damage, which obligation shall survive Closing or any termination of this Agreement. Seller may have a representative present during any and all Inspections, tenant interviews, as may be applicable, and/or other Purchaser activities on the Property.
Purchaser acknowledges that, since the Easements are to be conveyed "as is," Purchaser has been advised to obtain, and that it is responsible for obtaining or conducting, appropriate title examination work and reviewing and examining the Easements and title to the Easements or the underlying real properties. Purchaser, at Purchaser's sole cost and expense, may obtain a policy of title insurance pursuant to the terms and conditions of the title company selected by Purchaser. Seller shall have no obligation to cure title matters regarding any of the Easements for the issuance of the title policy, if any, or as a condition of conveyance of the Easements under this Agreement.
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