BEFORE THE ARKANSAS PUBLIC SERVICE COMMISSION

Transcription

1 BEFORE THE ARKANSAS PUBLIC SERVICE COMMISSION IN THE MATTER OF THE APPLICATION ) OF SOUTHWESTERN ELECTRIC POWER ) COMPANY FOR A CERTIFICATE OF PUBLIC ) DOCKET NO. -0-U CONVENIENCE AND NECESSITY TO ) CONSTRUCT A SWITCHING STATION ) ADJACENT TO ARKANSAS ELECTRIC ) COOPERATIVE CORPORATION S EXISTING ) EAST FAYETTEVILLE STATION LOCATED IN ) WASHINGTON COUNTY, ARKANSAS ) DIRECT TESTIMONY OF FOREST KESSINGER ON BEHALF OF SOUTHWESTRN ELECTRIC POWER COMPANY September, 0

2 Q. PLEASE STATE YOUR NAME, POSITION WITHIN YOUR COMPANY, BUSINESS ADDRESS, AND ON WHOSE BEHALF ARE YOU APPEARING IN THIS PROCEEDING? A. My name is Forest Kessinger. My business address is Cooperative Way, Little Rock, Arkansas, 0. I am employed by ( AECC ) as the Director of Transmission Coordination and Planning. I am appearing on behalf of ( SWEPCO ) in this proceeding in support of SWEPCO s request for a Certificate of Convenience and Necessity ( CCN ) to construct, own, and operate the proposed SWEPCO East Fayetteville Switching Station ( SWEPCO Switching Station ) at a location that is adjacent to AECC s East Fayetteville Substation and SWEPCO s existing Dyess to Hyland kv transmission line. Q. HAVE YOU APPEARED BEFORE THE ARKANSAS PUBLIC SERVICE COMMISSION ( COMMISSION ) IN THE PAST? A. I have appeared before the Commission on many occasions. Over the past years, I have testified on behalf of AECC and its member cooperatives in such areas as: revenue requirement; cost of service; cost allocation; rate design; fuel and purchased energy riders; transmission riders; power factor riders; special rate contracts; generation plant sitings; transmission facility sitings; plant acquisitions; energy efficiency; end-use full 0 cycle energy efficiency; appropriate equity levels for cooperatives; promotional practices; load forecasting; financing; net-metering; co-generation and small power

3 production; avoided cost; retail open access; and numerous Commission rule makings. I have also testified before the Federal Energy Regulatory Commission. Q. WHAT BENEFIT DOES THE PROPOSED SWEPCO SWITCHING STATION PROVIDE TO AECC? A. The requested SWEPCO Switching Station will allow AECC to have two kv positions within that Station. One of these positions will provide an additional kv feed to AECC so that Ozarks Electric Cooperative Corporation ( Ozarks ) can operate a section of its existing line extending from AECC s East Fayetteville Substation to an AECC kv to kv step-down transformer at AECC s Elkins Generation facility. This line is currently operated at kv but is built to kv standards. Operation at kv will provide Ozarks with greater line capacity and greater efficiency. In addition, Ozarks operation of the line at kv will provide much needed transformer capacity relief at AECC s East Fayetteville Substation. Additional details regarding these 0 outcomes will be provided later in my Direct Testimony. Q. WHAT CONDITIONS PROMPTED AECC TO REQUEST THAT SWEPCO CONSTRUCT THE PROPOSED SWITCHING STATION? A. Load growth and the need to maintain switching capabilities were the primary drivers behind AECC requesting that SWEPCO construct the SWEPCO Switching Station. Over the last ten years, loads at AECC s East Fayetteville Substation have grown at a very rapid rate. In 00, AECC s East Fayetteville Substation had one kv to kv stepdown transformer rated at 0 MVA. In 00, the maximum one hour loading on that transformer was MW. In 00, to accommodate load growth at the East Fayetteville

4 0 Substation, AECC installed a second 0 MVA kv to kva step-down transformer. By 0, the combined loadings on these two transformers reached MW. Both Ozarks and AECC anticipate that loads served out of the East Fayetteville Substation will continue to grow at a very high rate. Given current and anticipated loads, additional transmission capacity is needed by AECC and Ozarks. Q. HOW WOULD OZARKS OPERATING ITS EAST FAYETTEVILLE TO ELKINS LINE AT KV OFFER CAPACITY RELIEF FOR THE TWO EXISTING 0 MVA KV TO KV TRANSFORMERS LOCATED IN AECC S EAST FAYETTEVILLE SUBSTATION? A. In addition to providing wholesale capacity for the two Ozarks substations served off of the East Fayetteville to Elkins line, the two existing 0 MVA kv to kv transformers also provide transmission capacity for a number of other Ozarks substations that are not located along the East Fayetteville to Elkins line. By serving the two Ozarks substations at kv, existing kv to kv transformer capacity will be freed up to serve those Ozarks substations in the area that will continue to receive delivery at kv. Q. IN ADDITION TO THE NEED TO FREE UP TRANSFORMER CAPACITY AT THE EAST FAYETTEVILLE SUBSTATION, IS OPERATION AT KV DESIRABLE FOR OZARKS EAST FAYETTEVILLE TO ELKINS LINE? A. Currently, Ozarks East Fayetteville to Elkins line has sufficient capacity; however, given the existing and anticipated load growth in the area, there are a number of advantages to operating the East Fayetteville to Elkins line at kv. First, for a given conductor size,

5 transmission at kv has a much greater capacity to deliver electricity than does kv. Thus, operation at kv will provide additional transmission line capacity for future load growth and load transfer capability. Second, delivery at a higher voltage will reduce losses and voltage drop. A reduction in losses will reduce the cost of delivering 0 electricity and will provide greater energy efficiency. Lastly, as discussed later in my Direct Testimony, if the East Fayetteville to Elkins line is operated at kv, property owners may be impacted less as compared to alternative solutions. Q. WILL OZARKS NEED TO UPGRADE ITS EXISTING EAST FAYETTEVILLE TO ELKINS LINE, WHICH IS CURRENTLY OPERATED AT KV? A. No. Ozarks East Fayetteville to Elkins line is currently constructed to kv standards, but is operated at kv because a kv feed is not currently available. Q. WHAT ADDITIONAL INVESTMENTS MUST OZARKS MAKE IN ORDER TO OPERATE ITS EAST FAYETTEVILLE TO ELKINS LINE AT KV? A. The operation of Ozarks East Fayetteville to Elkins line at kv will require Ozarks to remove two existing kv to. kv step-down transformers and replace them with kv to. kv step-down transformers at Ozarks Gulley Road and Baldwin Substations (other related equipment and metering may also be required). In addition, AECC will install a new kv to kv step-down auto transformer at its existing Elkins Generation facility. The future AECC kv to kv auto transformer will provide a termination for Ozarks East Fayetteville to Elkins kv line and provide a backup capability for Ozarks Baldwin and Gully Road Substations in the event of a loss of delivery from AECC s East Fayetteville Substation. A stronger electric source at Ozarks

6 0 Elkins Substation also results in a better electric flow west to Ozarks Greenland Substation, east to its Wesley Substation and south to its Wyola Substation (all served at kv). Q. WOULD YOU ELABORATE ON YOUR PREVIOUS COMMENT REGARDING A POSSIBLE REDUCED IMPACT ON PROPERTY OWNERS? A. Yes. If operation at kv is not possible, other alternative solutions might include the construction of new transmission lines and substations to achieve the needed transmission capacity. Additional transmission lines and substations will require additional property and transmission line rights-of-way. Operation of the existing East Fayetteville to Elkins Line at kv does not require additional property and rights-of-way. Q. HAS THE SOUTHWEST POWER POOL ( SPP ) BEEN INFORMED OF OZARKS INTENT TO OPERATE THE DESCRIBED LINE AT KV? A. Yes. However, because Ozarks plan to change the line voltage from kv to kv only pertained to voltage, and did not change loadings, a SPP study and approval was not required. Q. DOES AECC AGREE WITH THE PROJECT DESCRIPTION OFFERED IN THE DIRECT TESTIMONY OF SWEPCO WITNESS NATHAN M. KOCH AND ARE THE FACILITIES DESCRIBED ACCEPTABLE TO AECC? A. AECC agrees that Mr. Koch has correctly described the requested project and finds that the facilities described by Mr. Koch meet AECC s needs in an economic and efficient manner.

7 Q. MR. KOCH STATES THAT AECC WILL SELL SWEPCO APPROXIMATELY. ACRES OF LAND TO CONSTRUCT THE SWEPCO SWITCHING STATION. IS THIS CORRECT? A. Yes. In an effort to minimize property impacts on adjacent land owners, AECC will sell to SWEPCO the approximate. acres of land referenced in Mr. Koch s Direct Testimony to facilitate the building of the SWEPCO Switching Station. Q. IN HIS DIRECT TESTIMONY, MR. KOCH STATES THAT YOU WILL TESTIFY AS TO THE ARRANGEMENTS THAT ALLOW FOR THE OPERATION AND OWNERSHIP OF BOTH AECC AND SWEPCO S FACILITIES TO REMAIN CLEAR WHILE PROVIDING THE NECESSARY INTERCONNECTION. WOULD YOU PLEASE ELABORATE? A. While SWEPCO is providing the switching station, SWEPCO, Ozarks, and AECC all own interconnecting equipment and facilities that require electrical protection. The 0 arrangement between SWEPCO and AECC provides very clear protection, responsibilities, and property ownership for the interconnected facilities. On SWEPCO property, SWEPCO will install and maintain three SWEPCO-owned breakers that will have a primary purpose to protect SWEPCO s Dyess to Hyland kv transmission line. On AECC s property, AECC will install and maintain two breakers that will have a primary purpose to protect AECC s two existing kv to kv transformers and Ozarks East Fayetteville to Elkins line. In this way, each company has clearly defined property ownership and dedicated equipment for the protection of its equipment and facilities residing within its property.

8 Q. IS IT YOUR RECOMMENDATION THAT THE COMMISSION GRANT SWEPCO A CCN TO CONSTRUCT, OWN, AND OPERATE THE SWEPCO SWITCHING STATION AS DESCRIBED BY MR. KOCH? A. Yes. At the Commission s earliest convenience and in order to allow SWEPCO to maintain the construction schedule stated in Mr. Koch s Direct Testimony, I recommend that SWEPCO s requested CCN be granted for the following reasons: ) current and future load growth in the area requires that AECC find a capacity solution for its two existing kv to kv transformers located in its East Fayetteville Substation; ) the existing East Fayetteville Substation s to kv transformers will remain in service and continue to provide much needed 00 MVA kv capacity for wholesale delivery to Ozarks out of AECC s East Fayetteville Substation; ) the operation of Ozarks existing East Fayetteville to Elkins transmission line at kv will provide additional line capacity for future load growth and switching capabilities; ) the proposed project will allow Ozarks to reduce line losses, thus increasing energy efficiency and reducing the cost of losses; and ) the project will allow Ozarks and AECC to provide a strong kv to kv source at AECC s Elkins Generation facility. Q. DOES THIS CONCLUDE YOUR DIRECT TESTIMONY? A. Yes, it does.

9 CERTIFICATE OF SERVICE I, Sarah L. Waddoups, attorney for SWEPCO, state that I have on this th day of September, 0, provided a true and correct copy of the above and foregoing document to all parties of record electronically, by first class mail or both. By: /s/ Sarah L. Waddoups Sarah L. Waddoups