Press Release

PUC OKs Portion of TrAILCo Transmission Line, Establishes Collaborative Process for Other Issues

Published on 11/13/2008

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved an agreement that allows a 1.2-mile portion of the 37.2-mile transmission line proposed by the Trans-Allegheny Interstate Line Co. (TrAILCo) and stays the remainder of the proceeding for further consideration.

The Commission voted 4-1 to adopt a motion by PUC Chairman James H. Cawley that approves the 1.2-mile Pennsylvania segment of the 502 Substation to Loudoun line. Vice Chairman Tyrone J. Christy dissented.

In a separate motion by Chairman Cawley, the Commission voted 3-2 to stay the remainder of the proposal and directed the active parties in the case to establish a collaborative process to discuss and develop possible alternatives regarding the remainder of the line. Vice Chairman Christy and Commissioner Wayne E. Gardner dissented. Audio of the PUC meeting is available here.

“In approving the 502 Junction Facilities, it is important to note the seriousness this Commission attaches to regional reliability,” Chairman Cawley said in a statement.  “We approved this project despite Federal Energy Regulatory Commission (FERC) policies that currently discourage regional cooperation.  FERC policies make all PJM customers pay equally for major backbone transmission projects, independent of who actually benefits.  More sound policies would rationally allocate most costs to beneficiaries, while allocating a smaller portion to all customers given the long term uncertainty and overall grid-wide reliability benefits of a well interconnected grid.”

“As a PUC Commissioner, balancing the interests of the public with that of our utilities is my primary responsibility,” said Vice Chairman Tyrone J. Christy in his dissenting statement.  “It is clear that customers in western Pennsylvania will receive little in return for the siting of these lines in their back yards except upward pressure on the price they will pay for generation and transmission.  Only the stockholders, generation owners and perhaps customers in eastern PJM will benefit. I can not support a project that imposes all of the costs and none of the benefits on one segment of the public. I would like to make it clear that my comments should not suggest that I am opposed to the construction of new, large, high-voltage electric transmission projects in the Commonwealth. Transmission line siting cases present two fundamental issues to this Commission - whether the need for the line exists; and, whether the proposed route is the best of all alternatives considered.  It is painfully apparent from the record that TrAILCo did not come close to meeting its burden of proof in this case on either count.”

 “There is a great need to improve the infrastructure of this Commonwealth and our country,” said Commissioner Robert F. Powelson in a statement. “This need extends well past improving our roads and bridges, but also to the facilities that transmit our necessary public utility services to us whether they be gas or water mains, telephone cables or electric transmission facilities.  As a nation, the United States spends less than 2 percent of the country’s gross domestic product on infrastructure, compared to China, which spends 9 percent and India, which spends 6 percent.  As policymakers, we play an important role in reversing this historic failure to invest, and that role starts with approving projects such as these.”

Commissioner Kim Pizzingrilli made a statement from the bench. Commissioner Gardner also issued a statement.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.

For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our Web site at www.puc.state.pa.us.

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Docket No. A-110172 et al

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