RD420 - Final Report on the Pilot Program to Place Certain Transmission Lines Underground


Executive Summary:
House Bill 1319 (*1) ("HB 1319") of the 2008 Regular Session of the Virginia General Assembly ("General Assembly"), as amended and reenacted (*2) (the "Act"), collectively established a pilot program to construct four qualifying electrical transmission line projects of 230 kilovolts ("kV") or less in whole or in part underground. (*3) Among other provisions, the Act established the criteria necessary for certain transmission line projects to qualify for the pilot program. In addition, the Act directed the SCC to submit a final report to the Commission on Electric Utility Restructuring ("CEUR"), (*4) the Joint Commission on Technology and Science, and the Governor no later than December 1, 2014, analyzing the entire program and making recommendations about the continued placement of transmission lines underground in the Commonwealth of Virginia ("Commonwealth" or "Virginia") (*5)

The Commission approved three (*6) of Dominion Virginia Power's ("DVP") 230 kV transmission line projects for inclusion in the pilot program pursuant to the Act. (*7) Although the primary focus of this final report is the pilot program relative to the Act (including both qualifying and non-qualifying electrical transmission line projects), the report also will address two experimental underground transmission line projects not directly encompassed by the Act, both of which were approved by the Commission prior to enactment of the Act. The Commission believes the experience gained from these two experimental projects should be considered in conjunction with the projects under the Act for making recommendations about the placement of transmission lines underground in the Commonwealth.

With respect to the possible future placement of transmission lines underground in the Commonwealth, the Commission recommends that projects continue to be evaluated on a case-by-case basis to determine whether placing such lines underground would be both technically feasible and cost effective. In addition, given that (1) the Commission's Rules of Practice and Procedure allow any party to a transmission line proceeding to propose an underground alternative, (2) the Code of Virginia requires the Commission to consider environmental impacts and the public interest when considering transmission line applications, and (3) as a matter of practice, the Commission has stated its reasons for declining to impose underground transmission construction, the Commission recommends no change to the procedures under which it presently considers alternative transmission line routing pursuant to Title 56 of the Code of Virginia ("Code").
______________________________________
(*1) 2008 Va. Acts ch. 799 (see Appendix A).
(*2) 2011 Va. Acts ch. 244 (extending the program for two years) (see Appendix A).
(*3) The Act specified one qualifying project and directed the State Corporation Commission ("SCC" or "Commission") to approve three additional qualifying projects.
(*4) The CEUR, established pursuant to Chapter 885 of the 2003 Acts of Assembly, was continued, effective July 1,2008, as the CEUR (Va. Code § 30-201).
(*5) In addition, the Act directed the SCC to report annually to the CEUR, the Joint Commission on Technology and Science, and the Governor on the progress of the pilot program no later than December 1 of each year that the Act was in effect. The Commission submitted six annual reports from 2008 to 2013.
(*6) In accordance with the Act and in order to justify approving fewer than four projects to be placed underground, this final report will document the failure of other projects to qualify for the pilot program.
(*7) (1) a two-mile segment of the Pleasant View-Hamilton transmission line in Loudoun County previously approved as an overhead transmission line; (2) the 0.71-mile Beaumeade-NIVO transmission line in Loudoun County; and (3) the 3.7-mile Ballston-Radnor Heights Project in Arlington County. Appendix B provides the pilot status of all transmission line applications (230 kV or less) filed during the applicable period established by the Act, including those that did not qualify for the pilot program. Proceedings on three of these applications are still pending before the SCC.