Transcript June 2006 CPCN/PTC Update

Regulations Governing Siting of
Electric Facilities in California
AEP Orange County Chapter
June 30, 2009
Christine McLeod, Project Manager - Regulatory Policy &
Affairs/Regulatory Operations
Southern California Edison
Overview
• California Public Utilities Commission
• California Energy Commission
• California Independent System Operator
• Federal Energy Regulatory Commission
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California Public Utilities Commission
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Regulates privately owned electric, natural gas,
telecommunications, water, railroad, rail transit, and passenger
transportation companies.
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CPUC-regulated electricity market in California serves 10.48
million customers with 32,347 miles of transmission lines
and 239,112 miles of distribution lines for a total economic value
of $17.8 billion.
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Responsibilities of the CPUC include setting electric rates,
protecting consumers, promoting energy efficiency, and
ensuring electric system reliability.
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CPUC General Order 131-D
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In 1994, the CPUC issued General Order No. 131-D (GO 131D) to regulate the planning and construction of facilities for the
generation of electricity and certain electric transmission and
substation facilities.
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The CPUC issued GO 131-D in order to be responsive to:
– California Environmental Quality Act (CEQA) Requirements
(Public Resources Code sections 21000 et seq.)
– Need for public notice and opportunity for affected parties to be
heard by the CPUC
– Obligations of utilities to serve their customers in a timely and
efficient manner
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Projects Covered Under GO 131-D
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Certificate of Public Convenience & Necessity (CPCN)
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New electric generating plants in excess of 50 MW
Modification, alteration, or addition to an existing electric generating plant
that results in 50 MW or more in generating capacity
New transmission lines at 200 kV or above, unless project is exempt
Permit to Construct (PTC)
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Power lines or substation projects between 50 - 200 kV, unless project is
exempt
Substations 50 kV and above, unless project is exempt
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PTC Exemptions (see next slide)
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No CPUC Permit Required
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Generation < 50 MW
Distribution Lines < 50 kV
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GO 131-D PTC Exemptions
PTC exemptions are generally consistent with certain categorical
CEQA exemptions:
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Replacement of power line facilities with equivalent structures
(Exemption B)
Minor relocations up to 2,000 feet in length (Exemption C)
Conversion of existing overhead to underground (Exemption D)
Power lines or substations which undergo CEQA review as part of a
larger project in which the final CEQA document (EIR or MND) finds no
significant environmental impacts caused by the power line or
substation (Exemption F)
Power line or substations to be located in existing franchise, roadwidening setback, or utility easement or corridor (Exemption G)
Projects which are Categorically or Statutorily Exempt from CEQA
(Exemption H)
A project that appears exempt may be subject to override of the
exemption under certain conditions
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GO 131-D and CEQA
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The CPUC serves as Lead Agency under CEQA in reviewing
projects subject to GO 131-D.
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GO 131-D specifies PTC and CPCN application requirements,
which include:
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Proposed and Alternative Routes and Comparison
Maps
Purpose and Need statement
Governmental Agency Consultation
Project Schedule
Electric and Magnetic Fields (EMF) Management Plans
Proponent’s Environmental Assessment (PEA) information.
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GO 131-D and CEQA (Continued)
• CPUC CEQA review of PTC and CPCN applications may
include:
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Initial Study
Public Scoping Meetings
Agency Consultation
Issuance of MND or EIR for Public Comment
Hearings or Workshops
• MNDs and EIRs issued by the CPUC are informational
documents to inform the public on the environmental impacts of
the proposed project and alternatives, and are used by the
CPUC in conducting the regulatory proceeding to determine
whether to grant the PTC or CPCN application.
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GO 131-D and CEQA (Continued)
• Facilities requiring either a CPCN or PTC may not commence
construction until it has been determined that the project will not
significantly impact the environment, as determined by CEQA
standards.
• Furthermore, facilities may be required to adhere to additional
resource agency regulations beyond those established by the
CPUC (e.g. California Coastal Commission, US Fish and
Wildlife Service, US Forest Service) if the project falls within the
state or federal agency’s jurisdiction.
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GO 131-D and Local Agencies
• Clarifies that local jurisdictions are preempted from regulating
electric power line projects, distribution lines, substations, or
electric facilities constructed by public utilities subject to the
CPUC’s jurisdiction.
• Requires public utilities to consult with local agencies regarding
land use matters and provides opportunity for local agencies
and public utilities to resolve differences through CPUC hearing
process.
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How GO 131-D Affects Roadway and
Development Projects
• SCE cannot construct or relocate non-exempt 50 to 200 kV
power line and substation projects without a PTC.
• Depending on the extent of environmental sensitivity, SCE
preparation of a PEA and PTC application may take up to 12
months, and the CPUC’s approval process may require an
additional 18-24 months to complete.
• SCE may be able to construct or relocate facilities driven by
roadway or development projects if the Lead Agency includes
environmental analysis of required SCE electric facilities in
CEQA documents for proposed development.
• If Lead Agency finds no significant unavoidable impacts, SCE
portion of overall project is exempt under Exemption F of GO
131-D requirements, and SCE is not required to get a PTC from
the CPUC.
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If SCE Electric Infrastructure is not Included in CEQA
Document for Larger Project
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If SCE electric infrastructure is not included in CEQA document for
larger project, OR if SCE project will cause significant environmental
impacts, SCE must comply with CEQA through CPUC process
– PEA must be prepared by SCE
– PTC must be granted by CPUC
– Total time – at least 24 months or longer
– For projects over 200 kV, SCE must secure a a Certificate of
Public Convenience and Necessity (CPCN) from the CPUC and
undergo a similarly lengthy process.
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California Energy Commission (CEC)
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Created by the Legislature in 1974 and located in Sacramento, the
CEC has five major responsibilities:
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Forecasting future energy needs and keeping historical energy data.
Licensing thermal power plants 50 MW or larger.
Promoting energy efficiency through appliance and building standards.
Developing energy technologies and supporting renewable energy.
Planning for and directing state response to energy emergency
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Has the statutory responsibility for licensing thermal power plants 50
MW and larger and the plant’s related facilities such as transmission
lines (e.g., “gen-ties”, fuel supply lines, water pipelines, etc.).
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Serves as a Lead Agency under CEQA and includes many
opportunities for public participation.
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Its license/certification subsumes all requirements of state, local, or
regional agencies otherwise required before a new plant is constructed.
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CEC – Generation Siting Process
• Application for Certification (AFC) Process - The traditional 12month siting process for major energy facilities in the State of
California.
• Small Power Plant Exemption (SPPE) – Available for projects
between 50 MW and 100 MW, provided the proposed project
does not create an unmitigated significant impact on
environmental resources.
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California Independent System Operator
• The CAISO Is a not-for-profit public benefit corporation that serves
as the impartial link between power plants and the utilities that
provide electricity to 30 million Californians.
• Is charged with ensuring the safe and reliable transportation of
electricity on the “electron superhighway” we know as the power
grid.
• A central function of the CAISO is to provide transparent
information about the state of the system and prices.
• Facilitates effective markets and promotes infrastructure
development
• Manages the Flex Your Power program to inform consumers about
how they can conserve electricity and help "keep the lights on.”
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CAISO – Transmission Planning
• Fundamental role is to plan and promote the enhancement and
expansion of transmission capabilities.
• Develops comprehensive Transmission Plan, which focuses on
expansion of the transmission system to support long-term power
supply arrangements, long-term transmission rights, and the larger
regional bilateral market.
• Its planning process includes independent analyses and
recommendations, opportunities for broad stakeholder input and
independent CAISO Board of Governor approval, all of which is
integrated into an annual CAISO Transmission Plan, projectspecific reports, and specific resource adequacy studies for
transmission-dependent local areas.
• The planning process can identify opportunities for partnership
among CAISO, Participating Transmission Owners, and public and
private entities to sponsor needed transmission lines.
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Federal Energy Regulatory Commission
• Independent agency that regulates the interstate transmission of
electricity, natural gas, and oil. FERC also reviews proposals to
build liquefied natural gas (LNG) terminals and interstate natural
gas pipelines as well as licensing hydropower projects.
• Regulates the transmission and wholesale sales of electricity in
interstate commerce.
• Ensures the reliability of high voltage interstate transmission
system.
• Monitors and investigates energy markets.
• Oversees environmental matters related to natural gas and
hydroelectricity projects and major electricity policy initiatives.
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FERC (Continued)
• Areas considered outside of FERC's responsibility include the
regulation of retail electricity and natural gas sales to consumers;
and approval for the physical construction of electric generation,
transmission, or distribution facilities, among other things.
– The Energy Policy Act of 2005 gave FERC additional
responsibilities, including “back stop” transmission siting authority;
however. the Commission’s authority is limited to those areas
designated as National Interest Electric Transmission Corridors by
Department of Energy.
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Helpful Links
• CPUC: http://www.cpuc.ca.gov/
• CPUC Transmission Information and Projects:
http://www.cpuc.ca.gov/PUC/energy/transmission.htm
• CPUC Environmental Review:
• http://www.cpuc.ca.gov/PUC/energy/electric/Environment/
• CEC: http://www.energy.ca.gov/
• CEC Integrated Energy Policy Report (IEPR):
http://www.energy.ca.gov/2008_energypolicy/index.html
• CEC Facility Siting Process:
http://www.energy.ca.gov/siting/index.html
• CAISO: http://www.caiso.com/
• FERC: http://www.ferc.gov/
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