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Control Number: 49671

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Item Number: 13

Addendum StartPage: 0

PUBLIC UTILITY COMMISMON

OF TEXAS

r)..4 I f:1,;7

DOCKET NO. 49671

APPLICATION OF AEP TEXAS INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE PROPOSED CRYO TO SARAGOSA 138-KV TRANSMISSION LINE IN REEVES COUNTY

NOTICE OF APPROVAL

This Notice of Approval addresses the application of AEP Texas Inc. to amend its

certificate of convenience and necessity (CCN) for the construction of a 138-kilovolt (kV)

transmission line in Reeves County. The Commission grants the application for the reasons

discussed in this Notice of Approval.

I. Findings of Fact

The Commission makes the following findings of fact.

Applicant

1. AEP is an investor owned transmission and distribution utility that owns and operates

transmission facilities within the Electric Reliability Council of Texas (ERCOT) under

CCN Nos. 30170 and 30028.

Application

2. On July 23, 2019, AEP filed an application to amend its CCN No. 30170 to construct, own,

and operate the proposed Cryo-to-Saragosa 138-kV transmission line project in Reeves

County.

3. AEP retained Burns & McDonnell Engineering Company, Inc. to prepare an environmental

assessment and routing analysis.

4. In Order No. 2, issued on August 22, 2019, the Administrative Law Judge (ALJ) found the

application sufficient and materially complete.

Public Input

5. No public open-house meeting was required.

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Docket No. 49671 Notice of Approval Page 2 of 14

6. The Department of Defense received notice of the intention to file the application.

Notice

7. On August 12, 2019, AEP filed the affidavit of Roy R. Bermea, regulatory consultant for

AEP, attesting that notice was provided by mail to directly affected property owners,

neighboring utilities, counties, Office of Public Utility Counsel (OPUC), Texas Parks and

Wildlife Division (TPWD), and the Department of Defense Siting Clearinghouse on July

23, 2019.

8. AEP's proof of notice included the affidavit of Jonathan Fulbright, managing editor,

attesting to the publication of newspaper notice in the Pecos Enterprise on August 1, 2019,

a newspaper of general circulation in Reeves County.

9. In Order No. 2, issued on August 22, 2019, the ALJ approved AEP's notice.

Evidentiary Record

10. On September 27, 2019, the parties filed a proposed notice of approval and motion to admit

evidence.

11. In Order No. 3, issued on October 7, 2019 the ALJ admitted the following evidence into

the record: (a) AEP's application and accompanying attachments, filed on July 23, 2019;

(b) AEP's proof of notice by mail, including the affidavit of Roy R. Bermea, filed on

August 12, 2019, attesting that notice was provided on July 23, 2019 to neighboring

utilities, counties, OPUC, TPWD, and the Department of Defense Siting Clearinghouse; (c) AEP's proof of publication, in which AEP provided the affidavit of Jonathan Fulbright,

Managing Editor, attesting to the publication of newspaper notice in the Pecos Enterprise

on August 1, 2019; and (d) Commission Staff's recommendation on final disposition, recommending approval of AEP's application, filed on September 20, 2019.

Interventions

12. No interventions were filed.

Description of the Transmission Line 13. The proposed transmission line is a single-circuit 138-kV transmission line connecting the

under-construction AEP Texas Cryo substation to the existing AEP Texas Saragosa substation that is under expansion for 138-kV operation.

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14. AEP has proposed a single route (consensus route) for this project. AEP and Apache

Corporation, the load to be connected, have worked together to acquire all the necessary

right-of-way from all the impacted landowners crossed by the consensus route.

15. The right-of-way width for the proposed transmission line will be 100-feet. Construction

of the proposed transmission line will primarily consist of steel monopoles using 795 KCM

ACSS conductors with one optical ground wire.

16. The proposed consensus route is roughly 4.7 miles in length.

17. AEP proposes to use a combination of short-term borrowings and owner equity to fund the

project.

Route Adequacy

18. AEP's application presented one route for the Commission's consideration.

19. No party filed testimony or a position statement challenging whether the application

provided an adequate number of reasonably differentiated routes to conduct a proper

evaluation, and no party requested a hearing on route adequacy.

29. The application provided an adequate route to conduct a proper evaluation.

Need for the Proposed Project

20. This proposed transmission line project is needed to permanently connect a new cryogenic

gas processing plant with an expected load requirement of 108 MW onto the AEP Texas

electrical system.

21. The need for the 138-kV transmission line was driven by the 108 MW size of the new

cryogenic gas processing plant.

22. A reasonable distribution solution does not exist to connect an expected load of 108 MW

on to the AEP Texas electrical system.

23. The 138-kV transmission project is the best option to meet the need taking into account

considerations of efficiency, reliability, costs, and benefits.

24. Because the transmission line is a Tier 4 "neutral" project under the ERCOT Regional

Planning Group Charter and the associated Tier classifications in ERCOT Protocol Section

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3.11.4, the transmission line did not require review by the ERCOT Regional Planning

Group.

Alternatives to the Project

25. There are no practical alternatives to the project.

Probable Improvement of Service or Lowering of Consumer Cost

26. The project is needed to permanently connect a new cryogenic gas processing plant and

will improve service to electric customers for the reasons described in the findings of fact

addressing the need for the project.

Effect of Granting the CCN on Other Utilities

27. The proposed transmission line will not adversely affect service by other utilities in the

area and is necessary to connect the new load to the AEP Texas transmission system.

Estimated Costs

28. The cost estimate for the transmission project is $4,863,101.

Prudent Avoidance

29. There are no habitable structures located within 300 feet of the centerline of the proposed

route.

30. AEP has routed the proposed line in accordance with the Commission's policy of prudent

avoidance.

Community Values

31. AEP and Burns & McDonnell considered information received from local, state, and

federal agencies in the routing analysis.

32. All of the eleven directly affected landowners agreed to the proposed consensus route.

33. The proposed transmission line will have minimal impacts on community values.

Using or Paralleling Compatible Rights-of-Way and Property Boundaries 34. The proposed consensus route parallels approximately 61 percent of existing transmission

line right-of-way, railroads, public roads or highways, or apparent property boundaries.

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Engineering Constraints

35. AEP considered engineering and construction constraints, reliability issues, and estimated

costs to evaluate the route as it relates to the requirements of the Public Utility Regulatory

Act (PURA)1 and Commission Rules.

36. AEP did not identify any engineering constraints that would prevent construction of the

transmission along the proposed route.

Other Comparisons of Land Uses and Land Types

a. Radio Towers and Other Electronic Installations

37. There are no AM radio transmitters located within 10,000 feet of the centerline of the route.

38. There are no FM radio transmitters, microwave towers, or any other electronic installation

devices located within 2,000 feet of the centerline of the proposed route.

b. Airstrips and Airports

39. There are no airports registered with the Federal Aviation Administration (FAA) with at

least one runway longer than 3,200 feet in length located within 20,000 feet of the

centerline of the proposed route.

40. There are no FAA-registered airports with a runway greater than 3,200 feet in length

located within 10,000 feet of the centerline of the proposed route.

41. There are no private airstrips located within 10,000 feet of the centerline of the proposed

route.

42. There are no heliports located within 5,000 feet of the centerline of the proposed route.

c. Irrigation Systems

43. The proposed consensus route crosses 756 feet of cropland with mobile irrigation systems.

The actual mobile irrigation unit is crossed on the outer edge and can be spanned by

structure placement.

44. There are no significant impacts to mobile irrigation systems crossed by the proposed

consensus route.

Public Utility Regulatory Act, Tex. Util. Code §§ 11.001-66.016.

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Other Route Attributes

45. The proposed consensus route does not cross brushland or shrubland.

46. The length of the proposed consensus route potential wetland area, as mapped by the U.S.

Fish and Wildlife Service National Wetland Inventory, is approximately 78 feet.

47. There are three streams crossed by the proposed consensus route and can be easily spanned

with structure placement.

48. The proposed transmission line will have minimal impact on ecological attributes.

Recreational and Park Areas

49. No parks or recreational areas owned by a governmental body or an organized goup, club,

or church were identified as being located within 1,000 feet of the centerline of the

proposed route.

Historical and Archaeological Areas

50. There is one historical or archeological site crossed by the proposed consensus route and

three additional historical or archeological sites within 1,000 feet of the centerline of the

proposed route. None of these sites are NRHP (National Register of Historical Places)

listed or determined-eligible sites for NRHP listing.

51. The length of right of way crossing areas of high historical or archeological site potential

is 7,029 feet.

52. The proposed consensus route of the transmission line will have minimal impact on

historical or archeological areas.

Aesthetic Values

53. The proposed consensus route is located within the foreground visual zone of U.S. or state

highways for 5,603 feet.

54. The proposed consensus route is not located within the foreground visual zone of a park or recreation area.

55. The proposed consensus route is not located within the foreground visual zone of farm-to-

market or ranch-to-market roads.

56. The proposed transmission line will have minimal impact on aesthetic values.

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Environmental Inteeritv

57. The area traversed by the transmission line is located in the Southern High Plains of Texas,

which occur westward from the boundary between the Texas Panhandle and New Mexico,

north to the Canadian Breaks, east to the North Central Plains, and south to the Edwards

Plateau and Basin and Range provinces. This area has also historically been referred to as

the Llano Estacado, or palisaded plains. This plateau is underlain by extensive stream

deposits of sand and gravel, which form the Ogallala Aquifer.

58. Burns & McDonnell obtained information from the United States Fish and Wildlife Service

(USFWS) and TPWD regarding the possibility of encountering any endangered or

threatened species in the area affected by the proposed transmission line.

59. AEP and Burns & McDonnell evaluated the potential impacts of the proposed transmission

line on endangered and threatened species.

60. Burns & McDonnell evaluated potential impacts to soil and water resources, the ecosystem

(including endangered and threatened vegetation and fish and wildlife), and land use within

the study area.

61. AEP does not anticipate significant impacts to wetland resources, ecological resources,

endangered and threatened species, or land use as a result of construction of the proposed

transmission line.

62. The proposed consensus route does not cross known or occupied habitat of federally listed

endangered or threatened species.

63. AEP will protect raptors and migratory birds by following the procedures outlined in the

following publications: Reducing Avian Collisions with Power Lines: The State of the Art

in 2012, Edison Electric Institute and Avian Power Line Interaction Committee,

Washington, D.C. 2012; Suggested Practices for Avian Protection on Power Lines: The

State of the Art in 2006, Edison Electric Institute, Avian Power Line Interaction

Committee, and the California Energy Commission, Washington, D.C. and Sacramento,

CA 2006; and Avian Protection Plan Guidelines, Avian Power Line Interaction Committee

and United States Fish and Wildlife Service, April 2005.

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64. AEP will minimize the amount of flora and fauna disturbed during construction of the

proposed transmission line.

65. AEP will revegetate cleared and disturbed areas using native species and consider

landowner preferences and wildlife needs in doing so.

66. AEP will avoid causing, to the maximum extent possible, adverse environmental impacts

to sensitive plant and animal species and their habitats as identified by TPWD and the

USFWS.

67. AEP will implement erosion control measures and return each affected landowner's

property to its original contours unless otherwise agreed to by the landowners. It is

appropriate that AEP not be required to restore original contours and grades where different

contours or grades are necessary to ensure the safety or stability of the proposed

transmission line's structures or the safe operation and maintenance of the transmission

line.

68. AEP will exercise extreme care to avoid affecting non-targeted vegetation or animal life

when using chemical herbicides to control vegetation within rights-of-way. The use of

chemical herbicides to control vegetation within rights-of-way must comply with the rules

and guidelines established in the Federal Insecticide, Fungicide, and Rodenticide Act and

with the Texas Department of Agriculture regulations.

69. AEP will use best management practices to minimize the potential impact to migratory birds and threatened or endangered species.

TPWD Comments and Recommendations

70. TPWD was provided a copy of the application, including the environmental assessment for the project.

71. In a letter dated September 20, 2019 and filed on September 24, 2019, TPWD provided comments and recommendations concerning the transmission line and referenced the recommendations the agency provided to Burns & McDonnell dated June 5, 2018, prior to the application filing date.

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72. Before beginning construction, AEP will undertake appropriate measures to identify

whether a potential habitat for endangered or threatened species exist and respond as

required.

73. The standard mitigation requirements included in the ordering paragraphs in this Notice of

Approval, coupled with the AEP construction and mitigation practices, are reasonable

measures for utility to undertake when constructing a transmission line and are sufficient

to address the TPWD's comments and recommendations.

74. This Notice of Approval addresses only those TPWD recommendations and comments for

which there is record evidence.

75. No modifications to the consensus route are required as the result of the recommendations

and comments made by TPWD.

Permits

76. AEP will obtain permits for road-crossing of county roads as necessary if not maintained

by the Texas Department of Transportation.

77. AEP will obtain permits for crossing roads, highways, and other properties owned or

maintained by the Texas Department of Transportation as necessary.

78. AEP will obtain permits from the Texas Historical Commission for the proposed

transmission line right-of-way as necessary.

79. If a storm-water pollution-prevention plan is required by the Texas Commission on

Environmental Quality (TCEQ), AEP will submit a notice of intent to the TCEQ at least

48 hours before construction begins and will have a storm-water pollution-prevention plan

on site when clearing and construction activities begin.

80. AEP will any obtain easements required from the Texas General Land Office as necessary

for any right-of-way that crosses a state-owned riverbed or navigable stream.

81. AEP will comply with any FAA requirements to alter the design of the structures or

potential requirements to mark or illuminate the line.

82. AEP will obtain permits or comply with other requirements due to possible impacts to

endangered or threatened species from the USFWS as necessary.

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Coastal Management Program

83. No part of the project is located within the boundary of the Texas Coastal Management

Program as defined in 31 Texas Administrative Code (TAC) § 503.1.

Effect on the State's Renewable Energy Goal

84. The Texas Legislature established a goal in PURA § 39.904(a) for 10,000 megawatts of

renewable capacity to be installed in Texas by January 1, 2025. This goal has already been

met.

85. The project cannot adversely affect the goal for renewable energy development established

in PURA § 39.904(a).

Limitation of Authority

86. It is reasonable and appropriate for a CCN order not to be valid indefinitely because it is

issued based on the facts known at the time of issuance.

87. Seven years is a reasonable and appropriate limit to place on the authority granted in this

Notice to construct the project.

Informal Disposition

88. More than 15 days have passed since the completion of the notice provided in this docket.

89. No person filed a protest or motion to intervene.

90. AEP and Commission Staff are the only parties to this proceeding.

91. No party requested a hearing and no hearing is needed.

92. Commission Staff recommended approval of the application.

93. This decision is not adverse to any party.

II. Conclusions of Law

The Commission makes the following conclusions of law.

1. The Commission has jurisdiction and authority over this matter under PURA §§ 14.001,

32.001, 37.051, 37.053, 37.054, and 37.056.

2. AEP is a public utility as defined in PURA § 11.004(1) and an electric utility as defined in PURA § 31.002(6).

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3. AEP must obtain the approval of the Commission to construct the transmission and provide

service to the public using the transmission line.

4. The application is sufficient under 16 TAC § 22.75(d).

5. The application complies with the requirements of 16 TAC § 25.101.

6. AEP provided notice of the application in compliance with PURA § 37.054 and 16 TAC §

22.52(a).

7. The Commission processed this docket in accordance with the requirements of PURA, the

Administrative Procedure Act,2 and Commission rules.

8. The transmission line, using the proposed route, is necessary for the service,

accommodation, convenience, or safety of the public within the meaning of PURA §

37.056(a).

9. The transmission line complies with PURA § 37.056(c) and 16 TAC § 25.101(b)(3)(B),

including the Commission's policy of prudent avoidance, to the extent reasonable to

moderate the impact on the affected community and landowners.

10. The Texas Coastal Management Program does not apply to the project, and the

requirements of 16 TAC § 25.102 do not apply to the application.

11. The requirements for informal disposition under 16 TAC § 22.35 have been met in this

proceeding.

12. The requirements for administrative approval in 16 TAC § 25.101(b)(3)(C) have been met

in this proceeding.

III. Ordering Paragraphs In accordance with these findings of fact and conclusions of law, the Commission issues

the following orders:

1. The Commission amends AEP's CCN No. 30170 to construct and operate the Cryo-to-

Saragosa 138-kV transmission line in Reeves County using the proposed route.

2 Tex. Gov't Code ch. 2001.

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2. AEP must conduct surveys, if not already completed, to identify metallic pipelines that

could be affected by the transmission line and cooperate with pipeline owners in modeling

and analyzing potential hazards because of alternating-current interference affecting

pipelines being paralleled.

3. If AEP or its contractors encounter any archaeological artifacts or other cultural resources

during construction of the transmission facilities, work must cease immediately in the

vicinity of the artifact or resource. Garland must report the discovery to the Texas

Historical Commission (THC) and take action as directed by THC.

4. AEP must follow the procedures to protect raptors and migratory birds as outlined in the

following publications: Reducing Avian Collisions with Power Lines: State of the Art in

2012, Edison Electric Institute and Avian Power Line Interaction Committee; Suggested

Practices for Avian Protection on Power Lines: The State of the Art in 2006, Edison

Electric Institute, Avian Power Line Interaction Committee, and the California Energy

Commission, Washington, D.C. and Sacramento, CA 2006; and the Avian Protection Plan

Guidelines, Avian Power Line Interaction Committee and United States Fish and Wildlife Service (USFWS), April 2005. AEP must take precautions to avoid disturbing occupied

nests and take steps to minimize the impact of construction on migratory birds during the

nesting season of the migratory bird species identified in the area of construction.

5. AEP must use best management practices to minimize the potential impact to migratory

birds and threatened or endangered species.

6. AEP must exercise extreme care to avoid affecting non-targeted vegetation or animal life when using chemical herbicides to control vegetation within the right-of-way. Herbicide use must comply with rules and guidelines established in the Federal Insecticide, Fungicide and Rodenticide Act and with Texas Department of Agriculture regulations.

7. AEP must minimize the amount of flora and fauna disturbed during construction of the transmission line, except to the extent necessary to establish appropriate right-of-way clearance for the transmission line. In addition, AEP must re-vegetate using native species and must consider landowner preferences and wildlife needs in doing so. Furthermore, to the maximum extent practicable, AEP must avoid adverse environmental impact to

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sensitive plant and animal species and their habitats, as identified by TPWD and the

USFWS.

8. AEP must implement erosion control measures as appropriate. Erosion control measures

may include inspection of the right-of-way before and during construction to identify

erosion areas and implement special precautions as determined reasonable to minimize the

impact of vehicular traffic over the areas. Also, AEP must return each affected landowner's

property to its original contours and grades unless otherwise agreed to by the landowner or

landowner's representative. AEP need not restore original contours and grades where a

different contour or grade is necessary to ensure the safety or stability of the structures or

the safe operation and maintenance of the line.

9. If possible, and subject to the other provisions of this Notice, AEP must prudently

implement appropriate final design for the transmission lines so as to avoid being subject

to the FAA's notification requirements. If required by federal law, AEP must notify and

work with the FAA to ensure compliance with applicable federal laws and regulations.

AEP is not authorized to deviate materially from this Notice to meet the FAA's

recommendations or requirements. If a material change would be necessary to comply

with the FAA's recommendations or requirements, then AEP must file an application to

amend its CCN as necessary.

10. AEP must identify any additional permits that are necessary, must consult any required

agencies (such as the United States Army Corps of Engineers and USFWS), must obtain

all necessary environmental permits, and must comply with the relevant conditions during

construction and operation of the proposed transmission facilities.

11. AEP must update the reporting of the transmission facilities on its monthly construction

progress report before the start of construction to reflect the final estimated cost and

schedule in accordance with 16 TAC § 25.83(b). In addition, AEP must provide final

construction costs, with any necessary explanation for cost variance, after completion of

construction when all charges have been identified.

12. The Commission limits the approval granted by this Notice of Approval to a period of

seven years from the date this Notice of Approval is signed unless the transmission line is

commercially energized before that time.

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13. The Commission denies all other motions and any other requests for general or specific

relief, if not expressly granted.

Signed at Austin, Texas the \ Ilk day of October 2019.

PUBLIC UTILITY COMMISSI N OF TEXAS

MAY ON P. RSON ADMINISTRATIVE LAW JU GE

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