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Home My WebLink About20162686.tiffAUG 1 1 2016 Decision No. R16 -0733-I BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF COLORADO PROCEEDING NO. 16M -0063E IN THE MATTER OF COMMISSION RULE 3627 RELATED TO ELECTRIC TRANSMISSION FACILITIES PLANNING, 4 CODE OF COLORADO REGULATIONS 723-3. PROCEEDING NO. I5M-0853E IN THE MATTER OF SENATE BILL 100 ELECTRIC TRANSMISSION REPORT FOR BLACK HILLS/COLORADO ELECTRIC UTILITY COMPANY LP. PROCEEDING NO. 15M -0856E IN THE MATTER OF PUBLIC SERVICE COMPANY OF COLORADO SENATE BILL 07-100 DESIGNATION OF ENERGY RESOURCE ZONES AND TRANSMISSION PLANNING REPORT. INTERIM DECISION OF ADMINISTRATIVE LAW JUDGE MANA L. JENNINGS-FADER ESTABLISHING INTERVENTION PERIOD Mailed Date: August 8, 2016 IMPORTANT NOTICE: IN ORDER TO PARTICIPATE IN THE THREE CAPTIONED PROCEEDINGS, AN INTERESTED PERSON MUST INTERVENE WITHIN THE INTERVENTION PERIOD ESTABLISHED BY THIS INTERIM DECISION. TABLE OF CONTENTS I. STATEMENT 2 A. The Consolidated Transmission Proceedings 2 B. Other Pertinent Proceedings. 4 1. Proceeding No. 16M -0009E4 COMCY.vfl Co..i-ionS g/aa/ 'Co 27I (, / I Co 2016-2686 Before the Public Utilities Commission of the State of Colorado Decision No. R16-0733-1 PROCEEDING NOS. 1631-0063E, ISM -0853E, & 1531-0856E 2. Proceedings No. 16A -0117E and No. 16V -0314E. 5 C. Intervention Period and Evidentiary Hearing in the Consolidated Transmission Proceedings 7 II. ORDER 10 I. STATEMENT A. The Consolidated Transmission Proceedings. 1. On October 30, 2015, Black Hills/Colorado Electric Utility Company (Black Hills) filed its 2015 Senate Bill 07-100 Report - Designation of Energy Resource Zones and Transmission Expansion Plan (Black Hills Report). Black Hills made the filing pursuant to § 40-2-126(2), C.R.S. That filing commenced Proceeding No. 15M -0853E. 2. On October 30, 2015, Public Service Company of Colorado (Public Service or PSCo) filed its 2015 Senate Bill 07-100 Designation of Energy Resource Zones and Transmission Planning Report (PSCo Report). Public Service made the filing pursuant to § 40-2-126(2), C.R.S. That filing commenced Proceeding No. 15M -0856E. 3. On February 1, 2016, Black Hills, Public Service, and Tri-State Generation and Transmission Association, Inc. (Tri-State) (collectively, Utilities), jointly filed: (a) a 10 -Year Transmission Plan for the State of Colorado to Comply with Rule [4 Code of Colorado Regulations (CCR) 723-3-13627' (10 -Year Plan); and (b) a 20 -Year Conceptual Scenario Report for the State of Colorado to Comply with Rule [4 CCR 723-3-]3627 (20 -Year Report) (collectively, Joint Reports). These filings commenced Proceeding No. 16M -0063E. This Rule is found in the Rules Regulating Electric Utilities, Part 3 of 4 Code of Colorado Regulations 723. 2 Before the Public Utilities Commission of the State of Colorado Decision No. RI6-0733-1 PROCEEDING NOS. I6AI-0063E, ISM -0853E, & I5AI-0856E 4. On February 25. 2016, by Decision No. C16 -0143-I, the Commission: (a) consolidated Proceedings No. 15M -0853E, No. 15M -0856E, and No. 16M -0063E (collectively, Consolidated Transmission Proceedings); (b) established a schedule for the filing of comments on the Black Hills Report, the PSCo Report, and the Joint Reports (collectively. Transmission Reports); and (c) referred the Consolidated Transmission Proceedings to an Administrative Law Judge (ALJ) for disposition. 5. When it referred the Consolidated Transmission Proceedings, the Commission provided this guidance: In accordance with Rules 4 CCR 723-3-3625 through 4 CCR 723-3-3627 (Transmission Planning Rules), the Commission issues a written decision regarding the Utilities' compliance with these rules and the adequacy of the existing and planned transmission facilities in Colorado to meet the present and future energy needs in a reliable manner. In this decision. the Commission may also provide further guidance to be used in the preparation of the Utilities' next biennial filings. We refer this matter to an [AU] for a Recommended Decision. The ALJ shall review the filings, comments, and responses. The AU shall schedule any workshops or hearings by a separate decision. Decision No. C 16-0143-I at ¶¶ 10 and 13. 6. On March 30 and April 1, 2016, the Colorado Office of Consumer Counsel (OCC) and Interwest Energy Alliance (Interwest) each tiled initial comments. On April 29, 2016, the Utilities jointly filed reply comments. These are the only comments filed in the Consolidated Transmission Proceedings. 3 Before the Public Utilities Commission of the State of Colorado Decision No. RIG -0733-1 PROCEEDING NOS. 16M -0063E, I5S1-0853E, & 15)1-0856E 7. After reading the filed comments, the ALJ determined the comments raised issues about the content of the Transmission Reports and about the transmission planning process in general. On July 13, 2016, by Decision No. R16 -0647-I, the AU scheduled an August 4, 2016 workshop to discuss the Transmission Reports and the issues raised in the comments. 8. On August 4, 2016, the AU convened the scheduled workshop. For the reasons discussed below in this Interim Decision, no discussion was held. 9. Other than Decision No. R16 -0647-I, no filing has been made in the Consolidated Transmission Proceedings since April 29, 2016. B. Other Pertinent Proceedings. 1. Proceeding No. 16M -0009E. 10. On January 8, 2016, by Decision No. C16-0009, the Commission opened Proceeding No. 16M -0009E. The Commission opened this miscellaneous proceeding "to track the year 2016 transmission facilities filings made by Colorado electric utilities pursuant to" Rule 4 CCR 723-3-3206. Decision No. C16 -0009E at Ordering Paragraph No. 1. 11. The Commission also described the Rule 4 CCR 723-3-3206(d) process: [Rule 4 CCR 723-3-3206(d)] requires each applicable Colorado electric utility to file with the Commission, no later than April 30 of each year, information on its proposed new construction or extensions of transmission facilities for the next three calendar years. Pursuant to [Rule 4 CCR 723-3-3206(d)(II)(A)], the transmission facilities are to be listed and noticed to the public, allowing 15 days for comments. Further, under [Rule 4 CCR 723-3-3206(d)(ll)(B)], the transmission facilities requiring a Certificate of Public Convenience and Necessity shall be listed and noticed to the public. Decision No. C16 -0009E at ¶ 1. 4 Before the Public Utilities Commission of the State of Colorado Decision No. RIO -0733-1 PROCEEDING NOS. 16)1-0063E. 15)1-0853E, & 15VI-0856E 12. On May 2, 2016, Public Service filed its Rule 3206 Report Proposed Construction or Extension of Transmission Facilities 2017 through 2019 (Rule 3206 Report): Pages 15-17 of that filing describe the Rush Creek - Missile Site 345 kV Transmission Project (Rush Creek Transmission Project). 13. As pertinent here, on May 11, 2016, by Decision No. C16 -0400-I, the Commission provided notice of the Rule 3206 Report and established a 30 -day comment period. No one filed a comment. 14. On July 7, 2016, by Decision No. C16-0627, as pertinent here, the Commission determined that the Rush Creek Transmission Project requires a Certificate of Public Convenience and Necessity (CPCN). The Commission noted that, on May 13, 2016. Public Service tiled an application for a CPCN for the Rush Creek Transmission Project in Proceeding No. 16A -0117F. 15. Insofar as the ALJ can determine, the Rule 3206 Report filed on May 2, 2016 is the first filing with the Commission that references the Rush Creek Transmission Project. 2. Proceedings No. 16A -0117E and No. 16V -0314E. 16. On February 24, 2016, Public Service filed a Motion for Approval of Independent Evaluator. That filing sought approval of "an independent evaluator CIE') for [Public Service's] potential development of wind resources pursuant to" Rule 4 CCR 723-3-3660(h) (Motion for Approval of Independent Evaluator at 1) but did not identify the wind resources. That filing opened Proceeding No. 16A -0117F. Public Service filed the Rule 3206 Report on May 2, 2016, which was the Monday following the Utilities' jointly filing their reply comments in the Consolidated Transmission Proceedings on Friday, April 29, 2016. The AU notes that each referenced filing was made on the Commission -established filing date. 5 Before the Public Utilities Commission of the State of Colorado Decision No. R16 -0733-I PROCEEDING NOS. 16M -0063E, ISM -0853E, & ISM -0856E 17. On March 29, 2016, by Decision No. C16 -0267-I, the Commission granted the Motion for Approval of Independent Evaluator and approved the Public Service -proposed IE. On motion of Public Service, on April 7, 2016, by Decision No. C16-0302-1, the Commission approved an alternate Public Service -proposed IE. 18. On April 29, 2016, Public Service filed a Petition for Variance of Commission Decision for Accelerated Construction Schedules (Petition for Variance).' That filing seeks a modification of the Commission -approved construction schedule for the Pawnee - Daniels Park 345kV transmission line to allow acceleration of the construction schedule. That filing commenced Proceeding No. 16V -0314E. 19. On May 13, 2016, Public Service filed a Verified Application for Approval of the 600 MW Rush Creek Wind Project Pursuant to Rule 3660(h), a Certificate of Public Convenience and Necessity for the Rush Creek Wind Farm, and a Certificate of Public Convenience and Necessity for the 345kV Rush Creek to Missile Site Generation and Transmission Line and Associated Findings of Noise and Magnetic Field Reasonableness (Rush Creek CPCN Application).° On May 13, 2016, Public Service filed its direct testimony and attachments in support of the Rush Creek CPCN Application, including the request for a CPCN for the Rush Creek Transmission Project. Those filings were made in Proceeding No. 16A -0117E. 20. Numerous parties intervened. 3 Public Service filed the Petition for Variance on the same day the Utilities jointly filed their reply comments in the Consolidated Transmission Proceedings. The AU notes that Public Service controlled the timing of the filing of the Petition for Variance. ° The AU notes that Public Service controlled the timing of the filing of the Rush Creek CPCN Application. 6 Before the Public Utilities Commission of the State of Colorado Decision No. R16 -11733-I PROCEEDING NOS. 16,Al-0063E, ISM -0853E, & ISM -0856E 21. On June 17, 2016, by Decision No. C 16-0548-I and as pertinent here, the Commission: (a) consolidated Proceedings No. 16A -0117E and No. 16V -0314E; (b) scheduled September 7 through 9, 2016 evidentiary hearing dates for the consolidated cases; and (c) established the procedural schedule for the consolidated cases. 77 On July 8, 2016, Public Service filed supplemental direct testimony and attachments in support of the Petition for Variance. 23. On July 27, 2016,' at least four intervenors in consolidated Proceedings No. 16A -0117E and No. 16V -0314E filed answer testimony and attachments that raised questions about, or issues pertaining to, the failure to include or to mention the Rush Creek Transmission Project in the Transmission Reports filed in the Consolidated Transmission Proceedings. 24. The Commission -established procedural schedule in the consolidated cases contains these future filing dates: (a) rebuttal testimony and attachments and cross -answer testimony and attachments are to be tiled not later than August 22, 2016; and (b) post -hearing statements of position are to be filed not later than September 19, 2016. C. Intervention Period and Evidentiary Hearing in the Consolidated Transmission Proceedings. 25. As discussed above in this Interim Decision, the Commission referred the Consolidated Transmission Proceedings to the AL I for issuance of a recommended decision that addresses: (a) whether the Utilities complied with the Transmission Planning Rules; (b) whether the existing and planned transmission facilities in Colorado are adequate to meet the present and future energy needs in a reliable manner; (c) whether the Commission ought to provide guidance This date was six business days before the August 4, 2016 workshop scheduled in the Consolidated Transmission Proceedings. 7 Before the Public Utilities Commission of the State of Colorado Decision No. R16 -0733-I PROCEEDING NOS. 16M -0063E, I5M-0853E, & 15)1-0856E to be used in the preparation of the Utilities' next biennial filings; and (d) if the Commission ought to provide guidance, what that guidance should be. The AU is to address these issues in the context of -- and focused on -- the Transmission Reports filed in the Consolidated Transmission Proceedings, taking into consideration the discussion and guidance provided in the decisions issued in Proceedings No. 10R -526E, No. 12M -102E (and consolidated proceedings), and No. 14M -0110E (and consolidated proceedings).6 26. The AU has read the intervenors' testimonies and attachments pertaining to the Rush Creek Transmission Project.' Given the issues raised in those testimonies and attachments, the AU finds that a workshop, which is an informal process, is not a sufficient method to use to develop the record in the Consolidated Transmission Proceedings. The AU finds that an evidentiary hearing is the appropriate method to use to develop the record necessary to address the issues identified in ¶ 25 of this Interim Decision and in Decision No. C16-0143-1. 27. Given the change in the method to be used to investigate the Transmission Reports, the AU finds that the most efficient way in which to proceed is to require persons who desire to participate to intervene in the Consolidated Transmission Proceedings. Requiring intervention: (a) identifies, for the benefit of the Commission and interested persons, the Parties in the Consolidated Transmission Proceedings; (b) makes certain that filings and decisions are served on Parties, which ensures that they have access to that content for presentation of witnesses and exhibits, argument, and filings, thus allowing the investigation to proceed 5 The AU notes, without deciding, that there may be federal law -based relevant considerations and guidance in addition to, or that supplement, the considerations and guidance in the cited Commission proceedings. ' The AU does not take administrative notice of any of the testimonies and attachments filed in Proceedings No. 16A -0117E and No. I6V-03I4E. In reaching a decision in the Consolidated Transmission Proceedings, the AU will rely on the testimony presented and the documents admitted into evidence during the evidentiary hearing in the Consolidated Transmission Proceedings. 8 Before the Public I tilitics Commission of the State of Colorado Decision No. R16 -0733-I PROCEEDING NOS. I6?I-0063E, ISM -0853E, & 15VI-0856E more smoothly: and (c) narrows the number of persons on whom the Commission must serve decisions issued in, and on whom Parties must serve their filings in, the Consolidated Transmission Proceedings." 28. By this Interim Decision, the ALJ will designate the following as Parties in the Consolidated Transmission Proceedings: Black Hills, Interwest, OCC, Public Service, and Tri-State. They need not file to intervene. 29. By this Interim Decision, the ALJ will order that, not later than August 26, 2016, interested persons must intervene as of right or must file a motion for leave to intervene in the Consolidated Transmission Proceedings. See generally Rule 4 CCR 723-1-1401 (rule governing intervention in proceedings).° 30. To he clear: after August 26, 2016, only persons who are Parties will receive filings and decisions in the Consolidated Transmission Proceedings. 31. After the close of the intervention period, the AU will issue an Interim Decision that addresses the interventions and that establishes the process to be used to determine the hearing dates in the Consolidated Transmission Proceedings. As shown on the four -page certificate of service for this Interim Decision. there are approximately 75 to 100 persons who receive notice of decisions issued in electric utility Commission proceedings. Absent a mechanism to determine which of those persons are interested in the Consolidated Transmission Proceedings, the Commission would serve decisions issued in. and the active participants would serve filings made in, the Consolidated Transmission Proceedings on the persons listed in the certificate of service. This would be a significant and expensive undertaking. With the intervention requirement. however, the certificate of service in the Consolidated Transmission Proceedings will include only Parties, thus significantly reducing the service burden on the Commission and the Parties and reducing the burden on persons who, although not Parties, nonetheless would receive decisions and filings in the Consolidated Transmission Proceedings. ° This Rule is found in the Rules of Practice and Procedure, Part I of 4 Code ine olol ado Regulations 723. 9 Before the Public Utilities Commission of the State of Colorado Decision No. RI6-0733-I PROCEEDING NOS. 16M -0063E, 15NI-0853E, & 15M -0856E II. ORDER A. It Is Ordered That: 1. The following are Parties in the captioned Proceedings: Black Hills/Colorado Electric Utility Company; the Colorado Office of Consumer Counsel; Interwest Energy Alliance; Public Service Company of Colorado; and Tri-State Generation and Transmission Association, Inc. 2. Any person, firm, or corporation that desires to participate in the captioned Proceedings shall file, not later than August 26, 2016, to intervene in the Proceedings. 3. This Interim Decision is effective immediately. (S EA L) THE PUBLIC UTILITIES COMMISSION OF THE STATE OF COLORADO ATTEST: A TRUE COPY Doug Dean, Director MANA L. JENNINGS-FADER Administrative Law Judge 10 Hello