Power line not needed, judges say

Aug 22, 2008 (The Pittsburgh Tribune-Review - McClatchy-Tribune News Service via COMTEX) -- AYE | Quote | Chart | News | PowerRating -- Aug. 22--Allegheny Energy Inc.'s controversial $1.2 billion, high-voltage power transmission line project isn't needed, two state Public Utility Commission administrative law judges said Thursday.

After reviewing more than 2,000 pages of testimony, listening to testimony at 12 public hearings and making three site visits, Judges Mark A. Hoyer and Michael A. Nemec in a 364-page document said Allegheny Energy, through its transmission line subsidiary TrAILCo, had "failed to carry the burden of truth" for the 240-mile project.

Allegheny Energy officials said the decision is only a recommendation and that TrAILCo will continue to pursue the matter with the full PUC before the commission schedules a final vote.

"We are extremely disappointed in this administrative recommendation, which runs counter to the evidence presented," said Paul J. Evanson, chairman, president and chief executive officer of Allegheny Energy. "We intend to vigorously pursue construction of this line with the commission ... ."

The state Office of Consumer Advocate and the PUC's Office of Trial Staff had publicly opposed the Trans-Allegheny line.

"We believe that the 500-kilovolt line through Washington and Greene counties isn't necessary," said Irwin "Sonny" Popowsky, the state's consumer advocate. "Our expert witness believes that construction of smaller transmission lines on existing company rights of way would be less costly and cause less environmental impact."

Office of Trial Staff analyst Gary Yocca testified he doesn't believe Allegheny Energy has satisfied all applicable statutes and regulations regarding the new transmission line.

Allegheny Energy and PJM Interconnection LLC, the entity which oversees the power grid and includes Pennsylvania, has said the power line was needed to move inexpensive, coal-fired electricity from this area to the East Coast.

Allegheny Energy argued that the Pennsylvania portion of the project was needed due to the rapid increase in power needs for the area, particularly in Washington County.

"PJM Interconnection ... determined that this line was necessary for the reliable supply of electricity to homes and businesses throughout the Mid-Atlantic region and mandated its construction," Allegheny Energy's Evanson said.

The judges broke the entire Trans-Allegheny transmission line into two segments. The so-called Prexy portion would include a 500,000-volt line that runs north from the West Virginia border through Greene County to a substation near Eighty Four in Washington County. Three new 138,000-volt lines are part of the Pennsylvania portion of the project, with all transmission lines combined crossing some 53 miles of the state. The project was to be completed in 2011.

"The proposed Prexy segment project is a grandiose answer to a minor or even nonexistent problem," the judges wrote.

The major portion of the project would be the 500,000-volt line, running from the West Virginia border, through West Virginia, to Loudoun County, Va., about 35 miles west of Washington, D.C.

Allegheny Energy's portion of the project would stop at the Virginia line and cost the Greensburg-based energy company about $850 million. Dominion Virginia Power would construct the Virginia portion of the transmission line.

"Granting approval of the 502 Junction (at the West Virginia border) to Loudoun segment at this juncture rewards a lack of foresight and proper maintenance, and has policy implications for the location of future generation that should be carefully considered before any further action is taken," the judges wrote.

The judges further chided Allegheny Energy/TrAILCo for not considering nontransmission alternatives, and questioned the modeling used to support the "alleged" need for the 502 Junction to Loudoun segment. The judges didn't specify in their recommendations what alternatives may be available.

The judges, who made their recommendations to the PUC commissioners, rejected TrAILCo's filing and evidence concerning route selection and siting for the transmission lines.

"We conclude that TrAILCo has not complied with this commission's requirements for route selection and siting," the judges said.

People impacted by the transmission line's proposed route and public officials -- a majority came out strongly against the project -- were pleased with the judges' recommendations.

"I am pleasantly surprised with the decision," said Pam Snyder, chairman of the Greene County commissioners and a property owner whose farm in Jefferson would have been impacted by the line.

"I had hoped that the PUC would have listened to the people, but I also knew they had to listen to both sides. It's just such a good feeling."

The Trans-Allegheny transmission line had run into public outcry almost from the day the project was announced more than two years ago. A citizens group called "Stop the Towers" gathered petition signatures, ran its own Web site and protested at the public hearings.

Parties in the case have an opportunity to file exceptions to the decision and then replies to those exceptions, said PUC spokeswoman Jennifer Kocher. Exceptions are due Sept. 10 and replies are due Sept. 22.

A vote by the commission will take place sometime after that, Kocher said.

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