) ) ) ) ) ) (Issued September )

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1 BEFORE THE PUBLIC SERVICE COMMISSION OF WYOMING IN THE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN POWER FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO CONSTRUCT THE ARROWHEAD SUBSTATION AND NINE MILES OF 230kV TRANSMISSION LINE Docket No EA-15 (RecordNo ORDER GRANTING A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY (Issued September This matter is before the Wyoming Public Service Commission (Commission upon the Application of Rocky Mountain Power (RMP or the Company for a Certificate of Public Convenience and Necessity to construct the Arrowhead substation and nine miles of 230 kilovolt (kv transmission line, as more fully described below. 1. RMP is a public utility as defined in w.s (a(vi(C, which provides retail electric public utility service under Certificates of Public Convenience and Necessity (CPCN issued by the Commission. RMP is subject to the Commission's jurisdiction pursuant to W.S OnMay29,2015,R?MPsubmitteditsapplicationseekingaCPCNtoconstructthe Arrowhead substation and nine miles of 23 0 kv transmission line (Project pursuant to w.s and Sections 204 and 205 of the Commission's Rules. The Project consists of construction of the new Arrowhead substation, modifications within the existing Firehole substation, and constmction of approximately nine miles of 230 kv transmission line that together will serve a new 18 megawatt (MW load at a customer owned fertilizer production plant, Simplot Phosphates, LLC (Simplot near Rock Springs, Wyoming. 3. RMPstatedthecustomer'sconstmctionofanewammoniaprocessingfacilityhas created the need for the Company to constmct the following infrastructure as an addition to its existing substation and transmission systems: [i] A new 230 kv Arrowhead substation which will be located on approximately five acres of customer-owned land located approximately 7.5 miles east of the existing Firehole substation and 4.5 miles southeast of the city limit of Rock Springs, Wyoming, near State Highway 430. The new substation will also include a new metering station to be used for billing and to measure Simplot's demand and energy usage for the new load. [ii] A new nine mile, single-circuit 230 kv transmission line beginning at the existing Firehole substation located approximately two miles south of the city limits of Rock Springs, Wyoming, near County Road 29 and ending at the new Arrowhead substation. [iii] Installation of two breakers for a 230 kv line bay in the existing Firehole substation to accommodate the new 230 kv transmission line. The existing footprint of the Firehole substation will be modified to include the new upgrades. -l- Docket No EA-15

2 4. Thetotalcostoftheconstmctionwasestimatedtobe$21.3million.Simplotwill finance the constniction of the Arrowhead substation and the nine miles of transmission line by specific financial contribution in aid of construction in the amount of approximately $14.5 million. RMP will finance the additional $6.8 million in accordance with the Company's Line Extension Policy (Rule 12 allowed in the tariff. RMP stated it will use a reasonable balance of debt and equity to finance that portion of the Project not paid for by the customer. Construction of the Arrowhead substation and associated 230 kv transmission line is estimated to commence on September 1, 2015, and is estimated to be completed by June 15, 2016, under normal construction circumstances and weather conditions. The Company represented it will submit a copy of all easements to the Commission when right-of-way (ROW acquisition is complete. s. The land upon which the new Arrowhead substation will be located is owned by Simplot. The customer will provide a perpetual lease with road access to the substation. The land on which the nine miles of 230 kv transmission line will be built is owned by four private land owners (5.12 miles, the State of Wyoming (1.69 miles, and the federal Bureau of Land Management (5.12 miles. 6. PursuanttoW.S (e,onJunel8,2015,theCommissionissuedits#otice of Applicatiort and Hearing (Notice which generally described the Application and provided an intervention deadline of July 17, The Notice also provided that unless a contested case hearing was requested, the Commission would consider the Application at its regularly scheduled open meeting hearing on Thursday, August 25, It was published in the Rocket Miner newspaper in Rock Springs, Wyoming on June 19 and June 26, The Notice was sent to the six affected landowners via certified mail on June 18, 2015, with proof of delivery to each. The protest deadline expired with no protests or requests for intervention. 7. This matter was brought before the Commission pursuant to due notice for consideration at its August 25, 2015, open meeting. For RMP, Stacy Splittstoesser, Regulatory Affairs Manager; and Spencer Fowler, Engineering Project Manager; appeared in person with Pattie Peterson, Constmction Management Director, and Yvonne Hogle, Company Assistant General Counsel participating by telephone. Splittstoesser provided a summary of the Application to the Commission as generally described in paragraphs 2-s above. Splittstoesser stated the total cost of the construction was now estimated to be approximately $19.5 million of which Simplot will pay approximately $12.7 million and RMP will pay approximately $6.8 million. According to Splittstoesser, the cost of the constmction varied from the sum stated in the Application due to decreased material costs. RMP will finance its portion of the project as a general system improvement using a reasonable balance of debt and equity. The customer will finance its portion through contributions in aid of construction in accordance with the Company's Rule 12 Line Extension Policy. 8. Splittstoesser stated Simplot had been securing the ROW easements necessary for constmction of the proposed project. She discussed the status of each easement noting the BLM permit, and the P4 Production LLC/Monsanto easement had been acquired and filed with the Commission; and the Wyoming State Land's easement had been acquired. The Company has reached verbal agreements with Anadarko, Rock Springs Grazing Association and Simplot and was waiting for these easements to be finalized and signed. She requested approval of the Application conditioned such that no construction may begin until all ROW had been obtained in -2- Docket No EA-15

3 order to maintain compliance with applicable Wyoming statutes and Commission Rules and allow for increased flexibility in the construction schedule. Commission Staff recommended approval of the Application, conditioned such that no construction may begin until all ROW had been obtained. include: 9. In part, Commission Rule Section 202(c defines a?major utility facility? to of energy; (i An electric generating plant and associated facilities, utilizing any source (ii An electric transmission line or an electric distribution line of more than three (3 miles, designed for operation at sixty-nine (69 kv or above; (iii An electric substation or switching station designed to operate at sixtynine (69 kv or above; 10. Section203(aoftheCommission'sRulesrequiresthefilingofanapplicationfor "... constmction of major utility facilities where a Certificate of Public Convenience and Necessity is required.? 11. Sections 204, 205, and 207 of the Commission's Rules address application, certification, and constmction requirements applicable to the Project in greater detail. Section 204 lists the basic information to be included in an application for a Certificate of Public Convenience and The name and address of the applicant; The type of plant, property or facility proposed to be constmcted; A complete description of the facilities proposed to be constmcted, including preliminary engineering specifications in sufficient detail to properly describe the principal systems and components, and final and complete engineering specifications when they become available; List the rates, if any, proposed to be charged for the service that will be rendered because of the proposed construction; State the estimated total cost of the proposed construction; State the maru'ier by which the proposed construction will be financed; State the financial condition of the applicant; State the estimated annual operating revenues and expenses that are expected to accme from the proposed construction; State the estimated starting and completion dates of the proposed construction; If the project is a major utility facility, the application shall contain the information required by Section 205 and 206 (where applicable [of the Rules]. -3- Docket No EA-15

4 12. Section 205 of the Commission's Rules requires additional information when construction of a?major utility facility? is proposed, including: The proposed site by an appropriate description of the involved properties and the county or counties in which the major utility facility will be located and where possible a metes and bounds description; a description of the route of line or lines in the project and the number of route miles located in each county; a description of the various types of country in or through which the facility will be constructed; A brief report on the surrounding scenic, historical, archeological and recreational locations, natural resources, plant and animal life, land reclamation, possible safety hazards, and plans for protecting the environment; Land, mineral and water requirements for the major utility facility, the status of the acquisition of land, or rights-of-way or of minerals and water for the project, the sources or locations thereof, and the proposed method of transportation and utilization; A statement setting forth the need for the project in meeting present and future demands for service, in Wyoming or other states, and the proposed sale of the utility commodity or service which the construction of this facility will make available; A statement of the effect of the project on applicant's and other systems' stability and reliability, if applicable; The estimated cost of and plans for financing the project, and a statement of the estimated effect of the project on applicant's revenues and expenses; A list of local, state, Indian, or federal governmental agencies having requirements which must be met in com'iection with the construction or operation of the project, and the status before those agencies; and applicant shall file such agency's final order when entered. 13. Section207oftheCommission'sRulesallowstheCommissiontosetthe"...time interim between the filing of an application for authority under these Rules and commencing constmction of a major utility facility." 14. Our basic and overriding standard in this case is the public interest and the desires of the utility are secondary. In PacifiCorp v. Public Service Commission of Wyoming, 2004 WY 164, 103 P.3d 862 (2004, the Wyoming Supreme Court, 2004 WY 164 at $13, 103 P.3d at 867, quoted with favor Sindair Oil Corp. v. Wyoming Public Service Comm'n, 2003 WY 22, at $9, 63 P.3d 887, 893 (Wyo. 2003: Speaking specifically of PSC, we have said that PSC is required to give paramount consideration to the public interest in exercising its statutory powers to regulate and supervise public utilities. The desires of the utility are secondary. [Citation omitted.] -4- Docket No EA-15

5 15. W.S (f provides: In the case of a certificate for the construction of a high voltage electric transmission line of 230 KV or greater, the issuance of the certificate shall be conditioned so that no construction of the line is authorized until all right-ofway for the line has been acquired. 16. W.S (h states: Notwithstanding subsection (f of this section, the commission may authorize the construction of segments of a transmission line before right-of-way is acquired for an entire transmission line provided that: (i The public utility has satisfied all requirements for the issuance of a certificate except subsection (f of this section; (ii The public utility has obtained all required right-of-way within the authorized segment; (iii Authorization to constmct the transmission line within the authorized segment shall not exceed ten (10 miles from the advancing end of an authorized segment, provided that the commission may waive the ten (10 mile limitation if the transmission line segment is: or (A Located entirely between substations or switching stations; (B Located between a substation or switching station and the state line; (C Located entirely within state or federal land. (iv Notice has been provided to all private property owners along the entire length of the proposed transmission line; (v The commission provides an opportunity for private property owners who are adversely affected by the location of the segment an opportunity to be heard before the authorization of a segment concerning the location of the segment or the impact of any future extension of the transmission line. 17. Based on the Application, the facts and representations presented by RMP and the analysis and recommendations of Commission Staff, the Commission finds that the Application generally conforms to the requirements of law as highlighted above in subparagraphs 9 through 16. The Commission further finds that the Project is necessary and in the public interest. The preponderance of the evidence before the Commission supports issuance of the CPCN. Therefore, the CPCN application should be approved, effective immediately. -5- Docket No EA-15

6 IT IS THEREFORE ORDERED: 1. PursuanttoCommissionactiontakenattheAugust25,2015,openmeeting,Rocky Mountain Power's Application for a Certificate of Public Convenience and Necessity to constmct the Arrowhead substation and nine miles of 230 kilovolt (kv transmission line, is approved. 2. The Commission directs that no constmction shall begin on this project until all required permits and rights of way have been properly obtained and filed. 3. This Order does not determine any ratemaking issues, all of which are expressly reserved for further decision in appropriate proceedings before the Commission. 4. Rocky Mountain Power shall promptly comply with Section 229 of the Commission's Rules regarding construction reports. s. This Order is effective immediately. MADE and ENTERED at Cheyenne, Wyoming, on September 9, PUBLIC SERVICE COMMISSION OF WYOMING 'M=u-' bw,,,: m,,v.rs,,,%,l, ',, ',:!-V WILLIAM F. RUSSELL, Deputy Chairman? 3%? KARA BRIG ON, Commissioner J;-a-'? LORI L. BRAND, Assistant Secretary -6- Docket No EA-15