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OAH 15-2500-20464-2
PUC No. E-017, E-015
& ET-6/CN-07-1222
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STATE OF MINNESOTA
OFFICE OF
ADMINISTRATIVE HEARINGS
FOR THE
PUBLIC UTILITIES
COMMISSION
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In the Matter of the Application of Ottertail Power
Company, Minnesota Power, and Minnkota Power
Cooperative for a Certificate of Need for a 230-kV Transmission Line and
Associated System Connections from Bemidji to Grand Rapids, Minnesota
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SUMMARY OF PUBLIC TESTIMONY
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Administrative Law Judge Beverly Jones
Heydinger held public hearings in this matter at Hampton Inn and Suites, 1019
Paul Bunyan Drive South, Bemidji, MN, on May 20, 2009, at 3:00 p.m. and
7:00 p.m.; at American Legion Post 122/VFW 2720, 12 First Street NE, Deer
River, MN, on May 21, 2009, at 3:00 p.m.; and at Palace Casino and Hotel, 16599
69th Avenue NW, Cass Lake, MN, on May 21, 2009, at
7:00 p.m. The hearings were held to
take public comment regarding the need for a 230-kV transmission line and
associated system connections, from Bemidji to Grand Rapids, Minnesota.
Appearances: Thomas Erik Bailey,
Briggs and Morgan, PA, appeared on behalf of the Applicants,
Ottertail Power Company, Minnesota Power and Minnkota Power Cooperative. Suzanne Lamb Steinhauer, Energy Facility
Permitting Staff, appeared on behalf of the Department of Commerce, Office of
Energy Security. Bret Eknes, Facilities
Planner, Public Utilities Commission, was also present.
The Applicants are required to seek a Certificate of Need pursuant to
Minn. Stat. § 216B.243. The Public
Utilities Commission concluded in its Order Accepting Application as Complete,
as Conditioned, and Authorizing Informal Review Process, issued July 22, 2008,
that the application should be examined and acted upon through informal
proceedings, and referred the case to the Office of Administrative Hearings to
conduct public hearings and to file a written summary of the public hearings
with the Commission.
Approximately 20 members of the public attended the public hearings. The record remained open for ten business
days to allow all interested persons the opportunity to submit written
comments. No members of the public filed
a written comment. The record closed on
June 2, 2009.
PROCEDURAL
HISTORY
1.
Minnesota’s
largest transmission-owning utilities conducted a study of Minnesota’s long-term transmission
needs. Its CapX2020 Vision Study
concluded that a number of new high-voltage transmission lines would be
required to accommodate the increasing demand for electricity within Minnesota and the upper Midwest, including a new 230-kV
transmission line from Bemidji to Grand Rapids, Minnesota. To execute the Vision Study’s
recommendations, the participating utilities entered into Project Development
Agreements for each of the recommended lines.
Otter Tail Power was designated the Project Development Manager for the
Bemidji-Grand Rapids Project (Project), Minnesota Power was designated to take
the lead on routing of the Project, and, because of its significant load in the
project area, Minnkota Power joined as the technical lead for the Project.
2.
On March 17, 2008, the Applicants filed their
application for a certificate of need for the Project with the Commission.
3.
The Project would include a 230-kV line from the
Wilton Substation northwest of Bemidji to the
Boswell Substation in Cohasset, northwest of Grand Rapids.
The Project would require upgrades to the substations. Depending on the route selected, the Project
may require expansion of the existing Cass Lake Substation or construction of a
new substation in the Cass
Lake area.
4.
The Commission issued an Order Accepting
Application as Complete, as Conditioned, and Authorizing Informal Review
Process, on July 22, 2008, directing the Office of Administrative Hearings to
conduct one or more public hearings to take public testimony concerning the
Application.
5.
Notice of the Public Hearings was published in
local newspapers:
The Bemidji Pioneer (Bemidji, MN)
– May 5, 2009
The Blackduck American (Blackduck,
MN) – May 10, 2009
Scenic Range
News Forum (Bovey, MN) – May 7, 2009
Cass Lake Times
(Cass Lake, MN) – May 7, 2009
Grand Rapids Herald Review (Grand Rapids, MN)
– May 6, 2009
Nevis Northwoods Press (Nevis,
MN) – May 7, 2009
Park Rapids Enterprise
(Park Rapids, MN) – May 6, 2009
Lake Country
Echo (Pequot Lakes, MN) – May 7, 2009
Pine River
Journal (Pine River, MN) – May 7, 2009
Pilot – Independent (Walker,
MN) – May 6, 2009.
6.
The Administrative Law Judge convened each
public hearing and explained that its purpose was to solicit public comments
regarding the need for the proposed transmission project. At each hearing, the Applicants made a short
presentation explaining the need for and general area to be served by the
Project, and Ms. Steinhauer briefly explained the process for preparation of
the Environmental Report.
SUMMARY OF PUBLIC TESTIMONY AND WRITTEN COMMENTS
1.
Approximately 15 members of the public attended
the afternoon hearing in Bemidji,
and nine signed the hearing register.
There were no comments directly addressing the need for the proposed
transmission line. Ron Eischens asked a
few questions about the timing of the proceeding, including the preparation of
the environmental studies. Rick Ludke
asked a question about whether the ability of the proposed transmission line
could be affected by the length of the route selected. Jason Weirs, Otter Tail Power, responded that
the length of the line can affect the line’s efficiency. Bill Beck asked whether construction of a new
line would affect the energy-saver “ripple control” on his baseboard heat. John Graves, Minnkota Power, responded that
the “ripple control” is a feature that reduces the need for new generation and
provides the customer with an economic advantage, which would not be affected
by the construction of a new transmission line.
Wendy Larson requested information about the steps in the process for
review and approval of a certificate of need.
Ms. Steinhauer, Mr. Eknes and others responded. Diane Plathe requested information about the
selection of the study corridor used to develop the Environmental Report. Ms.
Larson also had a question about the selection of the study corridors. Ms. Steinhauer responded, with additional
information from Mr. Bailey.
2.
Approximately seven members of the public
attended the evening hearing in Bemidji
and seven signed the hearing register.
There were no comments directly addressing the need for the proposed
transmission line. Daniel Gartrell
requested information about the source of the power that would use the
transmission line, and its destination.
David Van House, Minnesota Power, explained that the power would come
from existing generation, and flow generally from the Grand
Rapids area to the Bemidji
area, and provide supply to lower voltage lines in the area. Keith Pommerenime requested information about
the type of transmission towers that were planned for the project and their
suitability to higher voltage. Al
Koeckeritz, Otter Tail Power, displayed a picture of the proposed structure
that would serve the majority of the proposed transmission line. Mr. Koeckeritz also pointed out that if a
higher voltage transmission line were planned in the future, it would require a
new certificate of need.
3.
No members of the public attended the public
hearing in Pine River.
4.
Three members of the public attended the hearing
in Cass Lake and signed the hearing
register. Frank Zentek, a member of the
board of Beltrami Electric Cooperative, spoke in favor of the certificate of
need and asked for some price comparison of the northern and central study
corridors. Mr. Van House and
Ms Steinhauer responded that it is more expensive to follow the northern
corridor, but during the routing proceeding, the costs will be weighed with
several other factors, including environmental factors, in making a decision
about the route. In this context, there
was also a discussion of the concept of “line loss,” and response to related
questions posed by Diane Plathe.
5.
There were no written comments submitted to the
Administrative Law Judge by the published deadline to submit written comments,
June 2, 2009.
Dated: June 8, 2009
s/Beverly Jones
Heydinger
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BEVERLY JONES HEYDINGER
Administrative Law Judge
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Reported: Janet
Shaddix & Associates
NOTICE
This report contains a summary of
public testimony. It is not a final
decision. Pursuant to Minn. Stat. §
216B.243, the Commission will make the final determination of the matter
following receipt of the record from the Administrative law Judge and the
Office of Energy Security.