STATE OF CALIFORNIA ARNOLD SCHWARZENEGGER, Governor
PUBLIC UTILITIES COMMISSION
505 VAN NESS AVENUE
SAN FRANCISCO, CA 94102-3298
June 8, 2004 Agenda ID #3645
Ratesetting
TO: PARTIES OF RECORD IN APPLICATION 02-09-043
RE: NOTICE OF AVAILABILITY OF PROPOSED DECISION GRANTING A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO PACIFIC GAS AND ELECTRIC COMPANY TO CONSTRUCT A NEW 230 KV TRANSMISSION PROJECT
Consistent with Rule 2.3(b) of the Commission's Rules of Practice and Procedure, I am issuing this Notice of Availability of the above-referenced proposed decision. The proposed decision was issued by Administrative Law Judge (ALJ) Charlotte TerKeurst on June 8, 2004. An Internet link to this document was sent via e-mail to all the parties on the service list who provided an e-mail address to the Commission. An electronic copy of this document can be viewed and downloaded at the Commission's Website ( www.cpuc.ca.gov).
Any recipient of this Notice of Availability who is not receiving service by electronic mail in this proceeding may request a paper copy of this document from the Commission's Central Files Office, at (415) 703-2045; e-mail cen@cpuc.ca.gov.
This is the proposed decision of ALJ TerKeurst, previously designated as the principal hearing officer in this proceeding. It will not appear on the Commission's agenda for at least 30 days after the date it is mailed. This matter was categorized as ratesetting and is subject to Pub. Util. Code § 1701.3(c). Pursuant to Resolution ALJ-180, a Ratesetting Deliberative Meeting (RDM) to consider this matter may be held upon the request of any Commissioner. If that occurs, the Commission will prepare and mail an agenda for the RDM 10 days before hand. When an RDM is held, there is a related ex parte communications prohibition period.
When the Commission acts on the proposed decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.
Parties to the proceeding may file comments on the proposed decision as provided in Article 19 of the Commission's "Rules of Practice and Procedure." These rules are accessible on the Commission's website at http://www.cpuc.ca.gov. Pursuant to Rule 77.3 opening comments shall not exceed 25 pages.
Consistent with the service procedures in this proceeding, parties should send comments in electronic form to those appearances and the state service list that provided an electronic mail address to the Commission, including ALJ TerKeurst at cft@cpuc.ca.gov. Service by U.S. mail is optional, except that hard copies should be served separately on ALJ TerKeurst, and for that purpose I suggest hand delivery, overnight mail or other expeditious methods of service. In addition, if there is no electronic address available, the electronic mail is returned to the sender, or the recipient informs the sender of an inability to open the document, the sender shall immediately arrange for alternate service (regular U.S. mail shall be the default, unless another means - such as overnight delivery is mutually agreed upon). The current service list for this proceeding is available on the Commission's Web page, www.cpuc.ca.gov.
/s/ ANGELA K.MINKIN
Angela K. Minkin, Chief
Administrative Law Judge
ANG:tcg
Attachment
ALJ/CFT/tcg DRAFT Agenda ID #3645
Ratesetting
Decision PROPOSED DECISION OF ALJ TERKEURST (Mailed June 8, 2004)
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
In the Matter of the Application of Pacific Gas and Electric Company (U 39 E) for a Certificate of Public Convenience and Necessity Authorizing the Construction of the Jefferson-Martin 230 kV Transmission Project. |
Application 02-09-043 (Filed September 30, 2002) |
(See Attachment A for List of Appearances.)
OPINION GRANTING A CERTIFICATE OF
PUBLIC CONVENIENCE AND NECESSITY
OPINION GRANTING A CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY 1
I. Summary 2
II. Background 5
A. The Project and Environmentally Superior Alternatives 5
B. Procedural History 8
C. Motions Requesting Recirculation of FEIR 11
D. Scope of Proceeding 17
III. Overview of Positions of the Parties 18
IV. Project Need 22
A. Reliability Evaluation 23
1. Reliability Standards 23
2. Generation Capacity 25
3. Transmission Capacity 29
4. Distributed Generation, Energy Conservation, and
Demand Response Programs 31
5. Load Forecasts 32
6. Parties' Reliability Need Analyses 34
B. Delay or the No Project Alternative 38
C. Discussion 40
V. Project Alternatives Studied 47
A. Southern Alternatives 48
TABLE OF CONTENTS
(Continued)
Title Page
B. Northern Alternatives 71
1. Proposed Project-Northern Segment 73
2. Collocation Alternative 76
3. Undergrounding of Existing Lines into Martin Substation 81
4. San Bruno Mountain Alternative 83
C. Other Alternatives 84
VI. EMF Issues 85
A. Scientific Research Regarding EMF 87
B. EMF along Routes under Consideration 89
C. EMF Management Plan for the Jefferson-Martin Project 97
D. Reconsideration of EMF Policies and Programs 105
VII. Determination of Approved Route 106
VIII. Environmental Analysis 117
IX. Consistency with Public Utilities Code Section 1002 125
X. Compliance with Public Utilities Code Section 625 127
XI. Project Costs 128
XII. Comments on Proposed Decision 131
XIII. Assignment of Proceeding 132
Findings of Fact 132
Conclusions of Law 135
ORDER 137
Attachment A - List of Appearances
Appendix A - Addendum to Final Environmental Impact Report
OPINION GRANTING A CERTIFICATE OF
PUBLIC CONVENIENCE AND NECESSITY
I. Summary
This decision grants a certificate of public convenience and necessity (CPCN) to Pacific Gas and Electric Company (PG&E) to construct a new 230 kilovolt (kV) electric transmission line between PG&E's Jefferson substation and PG&E's Martin substation, along with related facilities. The facilities will be constructed in the County of San Mateo and will traverse or be adjacent to the towns of Hillsborough and Colma and the Cities of Brisbane, Daly City, San Bruno, and South San Francisco. A portion of the project will be within the San Francisco Public Utilities Commission (SFPUC) watershed near Interstate (I) 280. We adopt a tentative construction cost cap of $206,988,000 for the authorized Jefferson-Martin project.
The record demonstrates that the 230 kV Jefferson-Martin project is needed in order to allow PG&E to continue to reliably meet electric demand in the San Francisco Peninsula Area beginning in 2007. In addition, the project has diversification, economic, and environmental benefits that warrant its construction more quickly than that. All major transmission lines importing power into San Francisco currently receive power from the East Bay and travel through a single corridor from the San Mateo substation to the Martin substation. The Jefferson-Martin project will help protect the San Francisco Peninsula from events disrupting supply at the San Mateo substation and/or along the San Mateo-Martin corridor. In addition, the project will tap power originating from south of the Peninsula area, thus diversifying the source of power. We find that the Jefferson-Martin project by itself is not sufficient to support closure of the Hunters Point power plant. However, a combination of the Jefferson-Martin project and additional transmission reinforcements north of the Martin substation and south of the Jefferson station would allow that plant to be closed, bringing additional economic and environmental benefits. For these reasons, the project is clearly necessary.
The proposed Jefferson-Martin project is characterized as having a southern segment and a northern segment, and the project could be configured in various ways through combinations of southern and northern route alternatives. In the southern segment, we choose a hybrid configuration that combines part of a southern underground alternative called Route Option 1B with a portion of PG&E's southern aboveground Proposed Project. Immediately north of the Jefferson substation, the authorized 230 kV Jefferson-Martin line will be located within Cañada Road and Skyline Boulevard, entirely underground except for an aboveground crossing of the Crystal Springs Dam. The underground line will transition to an aboveground configuration at a new intermediate transition tower west of Trousdale Drive. The 230 kV line will continue north on rebuilt towers and will be collocated with one circuit of an existing double-circuit 60 kV line. The aboveground 230 kV circuit will exit the SFPUC watershed at a new Glenview Drive transition tower, where it will connect to the underground northern segment.
The Final Environmental Impact Report (FEIR) identified the underground Route Option 1B to be environmentally superior in the southern segment, but we find that this hybrid configuration is preferable because it avoids Route Option 1B's effects on residences and businesses along Trousdale Drive and El Camino Real and is more consistent with the values and wishes of the communities along the route.
The FEIR identified two underground routes for the northern segment as both being environmentally superior, and we tentatively choose one of these routes, PG&E's Proposed Project with Route Option 4B, for the northern segment. From the Glenview Drive transition tower, this northern segment would be constructed beneath San Bruno Avenue and would turn north into Huntington Avenue to the BART right of way. This route may be modified slightly, depending on the preference of the City of San Bruno, to avoid a planned Huntington Avenue grade separation project. From the BART right of way, the 230 kV line would turn east into the new Lawndale Boulevard, north into Hillside Boulevard, east into East Market Street, which becomes Guadalupe Canyon Parkway and crosses San Bruno Mountain. Finally, the line would turn north on Bayshore Boulevard to the Martin substation.
On June 8, 2004, the Assigned Commissioner instructed that environmental review be undertaken of two route alternatives that did not receive full analysis in the FEIR. The first alternative is the use of El Camino Real between San Bruno Avenue and Lawndale Boulevard/McClellan instead of the BART right of way, as a modification to PG&E's Proposed Project route. The second is an alternate route suggested by Daly City, in which the new 230 kV line would be collocated aboveground with the existing 60 kV line over San Bruno Mountain. Based on the results and consistent with our responsibilities under Pub. Util. Code §1002 to consider community values and other factors, we may choose to supplement the FEIR so that we may determine whether to alter the Proposed Project route to incorporate one or both of these alternatives. We instruct PG&E to not begin construction on the northern section until the evaluation of these alternatives is completed in compliance with the June 8, 2004 Assigned Commissioner Ruling.
The FEIR finds that the route as authorized for the southern segment and as tentatively authorized for the northern segment has no significant unmitigable (Class I) environmental impacts. Thus, no Statement of Overriding Considerations is needed. We adopt the mitigation measures proposed in the FEIR, with certain minor modifications that are included in an Addendum to the FEIR. We certify the FEIR and the Addendum.
During this proceeding, there was a great deal of public interest and concern regarding potential health effects from exposure to electric and magnetic fields (EMF) that would be created by the Jefferson-Martin project. In response to these concerns, we require several changes to PG&E's preliminary EMF management plan for the Jefferson-Martin project. A significant body of scientific research has developed since we investigated EMF matters in Investigation (I.) 91-01-012, as reported in a comprehensive review of EMF studies undertaken at the Commission's direction by the California Department of Health Services (DHS). Either concurrently with this order or shortly thereafter, we plan to issue an Order Instituting Investigation to address policy implications of the DHS findings, including whether EMF characteristics of proposed transmission projects should be considered as an integral part of our environmental analysis of such projects.
