Energize Eastside critics say PSE must follow federal rules to justify new line

Two local groups that question Puget Sound Energy’s proposal to build 18 miles of new high voltage transmission lines on the Eastside will soon hear a response to their complaint filed in June with the Federal Energy Regulatory Commission (FERC).

Two local groups that question Puget Sound Energy’s proposal to build 18 miles of new high voltage transmission lines on the Eastside will soon hear a response to their complaint filed in June with the Federal Energy Regulatory Commission (FERC).

PSE says that an existing 50-year old 115 kilovolt (kV) transmission line running through the center of the Eastside will not be able to deliver enough electricity during extreme weather conditions within two years time.

Two groups – the Coalition of Eastside Neighborhoods for Sensible Energy (CENSE) and Citizens for Sane Eastside Energy (CSEE) – say that PSE has not followed federal rules in planning for a new bulk power transmission line.

Despite efforts to slow energy use though conservation efforts and sustainable building practices, the sheer number of new people and new jobs means that energy use is increasing in East King County. PSE, like other energy utility companies, must plan ahead to be able to meet that growing demand . It must also have the ability to meet the highest or peak energy use during the coldest day of the year. PSE planners say with the existing power line, up to 60,000 customers may lose power in extreme weather events.

But others with expertise in utility matters say that PSE has not followed the rules to either justify the new line nor the intent of the “one utility” operations concept.

FERC rules essentially require a project such as Energize Eastside, to be evaluated by ColumbiaGrid, the operator of the bulk electric system in the Northwest, before the project is approved. That has yet to be done. The “one utility” concept means neighboring utilities must operate their systems in concert with each other to balance the supply and delivery of energy within the constraints of the larger transmission system.

The complaint asks FERC to order new ColumbiaGrid to conduct load flow studies on the need for Energize Eastside.

It also asserts that Seattle City Light and the Bonneville Power Administration (BPA) who would be able to utilize the new line, should be part of those studies.

Yet, PSE spokesman Andy Wappler said that the new line is to solve a local delivery problem and keep customers connected during extreme weather.

Utility consultant Rich Lauckhart, a 22-year employee and former VP at PSE, has been long involved in both power generation and transmission planning. He questions why PSE has not participated in a load flow study as required by law. The regional power grid operates as a whole and needs to be studied as a whole, he said.

Lauckhart filed a 38-page affidavit on behalf of CENSE and CSEE in the complaint filed with FERC.

“These studies are necessary to ensure the process is transparent and in the public’s best interest,” he wrote in the complaint.

Wappler pointed out that several studies done internally and by independent contractors justify their findings. The City of Bellevue, which is the lead agency for Environmental Impact Statement for the project, paid $100,000 for one study.

Utility regulatory agencies require that energy suppliers must meet a higher level of reliability than in the past. Yet, the probability of some these extreme weather events happening is quite small.

PSE claims that issues brought forward by CENSE and CSEE are “based upon several inaccurate claims that lead to incorrect conclusions about the need for and ultimate use of the Energize Eastside project.”

PSE officials also say the complainants “erroneously assert the Energize Eastside project primarily benefits the larger, regional transmission system.”

“It is a local project to meet local needs,” Wappler said.

PSE’s Energize Eastside website states that “together with ColumbiaGrid, PSE filed a motion to dismiss and answer the [FERC] complaint on June 29. Additionally, another state utility, Avista, filed a motion to intervene in the docket in support of PSE’s and ColumbiaGrid’s motion. Seattle City Light and BPA also filed in opposition to the complaint.”

In another twist, FERC regulations also stipulate that utilities can not simply build their own high voltage or bulk power lines.

“Utilities do not have a monopoly on the ownership of elements of the Bulk Electric System, which Energize Eastside is part of,” said Lauckhart. “If it is ultimately determined that Energize Eastside is the best solution to a reliability problem, then any qualified entity that can build transmission lines would have the opportunity to bid on the project and subsequently build and own those lines. That entity then makes it available for use as a part of the Bulk Electric System and then recovers its cost from those who need it.”

What is yet to be calculated is who and how much PSE customers might pay for the new line.

PSE say there should be little if any change in rates. PSE will be allowed to earn money through a set rate of return (on the investment) in the new line as well as its use. Both are ultimately determined by the Washington State Utility and Transportation Commission (WUTC). Studies that to calculate how much consumers might pay will not be conducted until a formal rate filing is made by PSE, the agency said.

FERC is expected to respond to the complaint from CENSE  and CSEE on Sept. 17.

 

 

For more on Energize Eastside, visit EnergizeEastsideEIS.org. or cense.org.