Kentucky State Board on Electric Generation and Transmission Siting

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1 Kentucky State Board on Electric Generation and Transmission Siting Presentation to the Jordan Electricity Regulatory Commission and Ministry of Energy and Mines September 2011 Jim Gardner Vice Chairman Kentucky Public Service Commission 1

2 Kentucky Public Service Commission Kentucky Population 4,300,000 PSC 3 Commissioners appointed by Governor with staggered 4 year terms PSC Staff 100 advisors to the Commission, not intervenor 2

3 Approximately 1500 Utilities Regulated Electric, including coops Water and Sewer Telecommunication Gas 3

4 I. Jurisdiction A. Merchant* electric generating facility 1. Capacity 10 MW or more 2. Sells Sllat wholesale l market kt B. Merchant* transmission line 1. No approval of PSC KV or greater *Merchant not a Kentucky utility subject to PSC regulation lti 4

5 II. Composition of Board A. 3 members of Kentucky PSC B. Secretary of Energy and Environment Cabinet or Designee C. Secretary of Cabinet for Economic Development or Designee D. 2 Ad hoc members appointed by Governor from County where facility to be located 1. Chair of local planning commission (County Judge Executive) 2. Resident of County 5

6 III. Requirements Merchant Electric Generating Facility A. Exhaust stack 1000 feet setback from adjoining property boundary B. Exhaust stack 2000 feet setback from residential neighborhood, school, hospital, or nursing home C. Additional requirements by local planning authority D. Exceptions 1. Compliance with ihnational lenvironmental Policy Act (NEPA) 2. Former coal processing facility using site (1000 setback is waived) 6

7 IV. Application (Generating Facility) A. Map distance of site fromresidential residential neighborhoods, residential structure, schools and private and public parks within two (2) miles B. Notice to adjoining property owners C. Impact on Kentucky transmission system D. Economic impact E. Site assessment report or documentation of compliance with NEPA 7

8 V. Site Assessment Report (Generating Facility) A. Requirements 1. Surrounding land uses for residential, commercial, agriculturaland and recreational 2. Legal boundaries 3. Access control to site 4. Location of proposed buildings and transmission lines 5. Access ways, roads and railroads 6. Proposed utilities 8

9 V. Site Assessment Report (Generating Facility) A. Requirements (continued) 7. Expected noise levels 8. Compatibility with scenic surroundings 9. Potential changes to property value 10. Peak and average construction and operation noise levels 11. Impact on road and rail traffic and anticipated levels of dust 9

10 V. Site Assessment Report (Generating Facility) B. Mitigation 1. Tree planting, change outside lighting, erecting noise barriers, suppressing dust measures 2. Board may condition approval on mitigation measures 10

11 VI. Granting or Denying Certificate A. Impact on scenic surroundings, property values, adjacent property development and surrounding roads B. Anticipated noise levels C. Economic impact D. Whether site has existing generation E. Satisfies local planning and zoning F. Will load adversely affect reliability G. Any mitigation measures H. Applicant s environmental history 11

12 VII. Transmission Line A. Application 1. Description of proposed route and map a. location and proposed p structures b. proposed right of way c. existing property lines d. schools, residential neighborhoods, schools and parks within one mile e. Description with voltages, length of line, substation connections f. Compliance with National Electric Safety Code 12

13 VII. Transmission Line B. Granting or Denying 1. Minimize adverse impact on scenic assets 2. Interstate benefits 13

14 VIII. Siting Fund A. Generating facility: $1000 US per MW not less than $40,000 US nor more than $200,000 US B. Transmission: $50 US per KV not less than $10, US nor more than $200, US C. Expenses including consultant 14

15 IX. Hearing and Notice A. A local public hearing may be held if citizens (3) request one and shall if a local official requests one B. Notice must be mailed to local property owners and in newspaper 15

16 X. Environmental Impact Statement A. Not prescriptive B. Gathers environmental impact in a coordinated consistent way C. See attached example Grid Table from KY Pioneer EIS D. Air permits, water permits and/or waste permits may still be required E. Multitude of other acts must be complied with (see next page) 16

17 X. Environmental Impact Statement E. (continued) e.g. threatened and endangered species migratory birds endangered species wetland/aquatic ecosystems cultural resources historic structures historic properties historic districts subsurface deposits traditional cultural properties cemeteries 17

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25 XI. Cumulative Environmental Assessment All generating gfacilities (merchant and jurisdictional) 25

26 XI. Cumulative Environmental Assessment (continued) 26

27 XI. Cumulative Environmental Assessment (continued) 27

28 XII. Vectren Energy Transmission Line Case No.: A. Consultant s Report November 3,

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30 Map of Vectren transmission line, Henderson, Kentucky Source: BBC Research & Consulting,

31 XII. Vectren Energy Transmission Line Case No.: B. KYPSC Order December 13,

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37 Citations Kentucky Revised Statutes (KRS) and Kentucky Administrative Regulations (KAR) can be found at Specific citations are listed on following slide. The Kentucky Pioneer Environmental Impact Statement, slides 18 25, is available at the U.S. Department of Energy website, pioneer igcc demonstration / /d d /k t k i d t ti project final environmental impact statement 1. DocumentsfromtheVectren the Transmission case, , areavailable available through the Kentucky Public Service Commission website at Corridor Analysis Funnel graphic from EPRI GTC Transmission Line Siting Methodology, Jesse Glasgow. 37

38 Slide 4 KRS /704.PDF p// yg / / / KRS /714.PDF Slide 5 KRS /702.PDF Slide 6 KRS /704.PDF Slide 7 KRS /706.PDF Slide 8 KRS (3) 00/708.PDF Slide 10 KRS (4) 00/708.PDF Slide 11 KRS /710.PDF Slide 12 KRS /714.PDF KRS (2) Slide 13 KRS (3) 00/714.PDF Slide 14 KRS /716.PDF 807 KAR 5:100 Slide 15 KRS /712.PDF 38

39 Thank You 39