BEFORE THE ARKANSAS PUBLIC SERVICE COMMISSION'^^ j E s : D IN THE MATTER OF THE APPLICATION OF ENTERGY ARKANSAS, INC. FOR A CERTIFICATE OF ENVIRONMENTAL COMPATIBILITY AND PUBLIC NEED TO CONSTRUCT AND OPERATE THE ETTA 00 KV SUBSTATION AND RELATED 00 KV TRANSMISSION LINE SEGMENTS AND ASSOCIATED TRANSMISSION FACILITIES, IN HOT SPRING COUNTY, ARKANSAS DIRECT TESTIMONY OF RAJESH GUPTA PROJECT MANAGER, ENTERGY SERVICES, INC. ON BEHALF OF ENTERGY ARKANSAS, INC. MAY,00
. INTRODUCTION AND BACKGROUND Q. PLEASE STATE YOUR NAME, BUSINESS AFFILIATION AND ADDRESS? 6 0 A. Q. A. Q. I am Rajesh Gupta. I am employed by Entergy Services, Inc. ( EW), an affiliate of Entergy Arkansas, Inc. ( EAI or the Company ). My business address is Entergy Corporation Building, 6 Loyola Avenue, New Orleans, LA 0. ON WHOSE BEHALF ARE YOU TESTIFYING? I am testifying on behalf of EAI. WHAT POSITION DO YOU HOLD WITH ESI? A. I am a Project Manager in the Transmission Project Management Organization with ESI. 6 Q. PLEASE DESCRIBE YOUR PROFESSIONAL EDUCATION, QUALIFICATIONS AND EXPERIENCE. 0 A I graduated from the University of Indore, India, in with a Bachelor of Science degree in Civil Engineering and was awarded a Master of Business Administration degree by Tulane University in. I worked as a Consulting Engineer in Power Plant Design for Sargent and Lundy Engineers and Stone and Webster Engineering Corporation until. I was subsequently employed by Entergy Operations, Inc., as a Senior --
Engineer and later as an Engineering Supervisor in Power Plant Design Engineering from until 000. In August 000, I was named a Project Manager within the Engineering Management and Capital Construction Department ( EMCCI ), Transmission, ESI. 6 Q. WHAT ARE YOUR DUTIES IN ARKANSAS? I am responsible for managing all EA capital transmission projects in the Arkansas jurisdiction. 0 6 Q. PLEASE SUMMARIZE THE FUNCTION OF ESI AS IT RELATES TO THIS FILING. A. ESI is responsible for providing engineering, procurement, project management and construction support to design and construct the facilities required to allow Duke Energy Hot Spring, LLC ( DEHS ), an Independent Power Producer ( IPP ), to connect a new generating plant (the Duke Energy Facility ) to the Company s transmission facilities. 0 Q. PLEASE EXPLAIN WHY THE COMPANY HAS FILED AN APPLICATION TO CONSTRUCTl OPERATE AND MAINTAIN THE PROPOSED ELECTRICAL FACITILIES? A. DEHS plans to construct and operate the,0 MW, natural gas-fired power plant near Etta, Arkansas, on property currently owned by it and --
adjacent to the right-of-way boundary of the Company s 00 kv transmission line running from the Hot Springs 00 kv Substation to the McNeil 00 kv Substation. The Duke Energy Facility will have the capability initially to produce,0 MW of electricity. 6 Q. A. 0 6 0 WHAT IS THE PURPOSE OF YOUR TESTIMONY IN THIS PROCEEDING? My testimony will support the Company s Application for a Certificate of Environmental Compatibility and Public Need ( CECPN ) to allow the Company to construct and operate two new 00 kv line segments and related expansions that will terminate in the new 00 kv Etta Substation (the Proposed Electrical Facilities ) to interconnect the Duke Energy Facility with the electrical grid. I will describe the equipment and design of the Proposed Electrical Facilities, other equipment alternatives that were considered, and the economics of construction design types and installation cost, as well as the timeframe for construction completion. The Company will present additional witnesses to support its Application. Mr. Murry Witcher, ESI Transmission Specialist, will testify to the process used by the Company to acquire land and rights-of-way and describe the general use of the properties in the area of the Proposed Electrical Facilities. Mr. G. Robert Burner, representing DEHS, will describe the Duke Energy Facility and its operation. In addition, Mr. John Zimmerman, ESI Manager of Transmission Policy, will discuss the --
Company s Interconnection Agreement with DEHS, and Mr. Greg Zakrzeski, ESI Senior Staff Accountant, will address the rate treatment and accounting of funds used in the construction and operation of the project. 6. Q, 0 ELECTRICAL DESIGN AND EQUIPMENT OF THE PROPOSED ELECTRICAL FACILITIES PLEASE DESCRIBE THE DESIGN OF THE PROPOSED ELECTRICAL FACILITIES. The Proposed Electrical Facilities will include a new 00 kv substation that will contain four 00 kv breakers and two new 00 kv line terminations and associated equipment. Two segments of 00 kv 6 transmission line, each approximately,000 feet in length, will be constructed to connect the proposed Etta 00 kv Substation to the existing Hot Springs 00 kv Substation to McNeil 00 kv Substation Transmission Line. A more detailed description of the Proposed Electrical Facilities to be constructed and EAl s proposed transmission line route, along with the electrical design criteria, is contained in EA Application Exhibit D filed in this Docket. 0 Q. A. WHY WAS THIS PARTICULAR CONFIGURATION SELECTED? This configuration allows DEHS to connect to the electric grid and produce electricity in a manner that provides for the best system stability and --
reliability. This configuration directly strengthens the Company s 00 kv transmission system. Q. 6 A. PLEASE DESCRIBE THE COMPANY S EXPERIENCE WITH THESE TWNSMISSION FACILITIES AT SIMILAR VOLTAGE LEVELS. EA has more than,600 miles of 6/ kv transmission lines in service. EA has extensive experience in designing, constructing, 0 6 operating and maintaining this type of line and associated facilities. The most recent construction projects are the Pleasant Hill to Quitman 6 kv Transmission Line that was recently completed and included a 00 kv substation facility similar to the one proposed in this Docket. Other recent, similar projects include the. mile Fordyce Switching Station to Georgia- Pacific Corporation s OSB Plant kv Transmission Line, which was completed in 000, and the. mile Pine Bluff East Substation to Pine Bluff International Paper Company kv Transmission Line, completed in. Q. 0 A. WHAT ALTERNATIVE TYPES OF TRANSMISSION LINE STRUCTURES WERE CONSIDERED FOR THIS PROJECT? Steel lattice towers, guyed Y structures, and steel pole structures were considered. In addition to lattice structures, which are used on the existing 00 kv main line, two and three steel pole structures were selected for the new tangent pole towers, primarily for economic and -6-
environmental reasons as well as the efficient utilization of available space in the new right-of-way for the Proposed Electrical Facilities. Underground construction at the 00 kv voltage level is possible, but is not economically viable. 6 Q A. 0 HOW DO YOU PLAN TO CONSTRUCT THESE FACILITIES? Our intentions are for the transmission line construction and substation construction to be accomplished by contract personnel. EA will maintain supervisory and inspection personnel at the project site to monitor and oversee the project during construction. Q. A. 6 WHAT INDUSTRY STANDARDS WILL THE DESIGN AND CONSTRUCTION OF THESE PROPOSED ELECTRICAL FACILITIES FOLLOW? The requirements set forth in the National Electrical Safety Code, as currently adopted by this Commission, will be met or exceeded. Q. 0 A. WHEN AND HOW WILL EA TAKE TITLE TO THE PROPOSED E LECTRl CAL FAC I LIT ES? EA will receive ownership of the Proposed Electrical Facilities from DEHS upon completion of the project. --
Q. PLEASE EXPLAIN THE TIMEFRAME WHEN THE COMPANY IS PROPOSING TO ADD THE PROPOSED ELECTRICAL FACILITIES TO THE ENTERGY TRANSMISSION GRID. A. EA is proposing to construct and complete these facilities in order to meet the customer's in-service date of June 00. 6 0 Q. PLEASE DESCRIBE WHAT FACILITIES EA WILL OWN AFTER THE DUKE ENERGY FACILITY IS COMPLETED. A. All of the electrical service facilities constructed by, or on behalf of EA for this project, will be owned by EA upon project completion. This includes the Etta 00 kv Substation, and the proposed 00 kv transmission line segments and all associated equipment. 6. Q. COSTS AND FINANCING OF THE PROPOSED ELECTRIC FACILITIES WHAT IS THE ESTIMATED COST OF THE PROPOSED ELECTRICAL FACl LITIES? A. Total project costs including overheads are estimated as follows: $(million) 00 kv Transmission $.0 00 kv Substation. Metering 0. Relay and Communications. Corporate Loading. Total $.0 --
6 0 The 00 kv transmission line estimates are based on approximately,000 feet of two and three pole steel construction with approximately structures per mile. Based on our experience in this type of terrain, it was assumed, for estimating purposes, that the line would require the installation of caisson type foundations of varying depths depending on soil conditions. This estimate also includes the required Etta 00 kv Substation, customer metering equipment, and relay and communications equipment needed to operate the two proposed line segments. Q. A. 6 0 WHAT IS THE SALVAGE VALUE OF THE PROPOSED ELECTRICAL FACILITIES AFTER THEIR LIFE EXPECTANCY? Life expectancy of the transmission line is based on periodic depreciation studies that estimate remaining life of a line depending on the maintenance and improvements performed on the line - generally 0 years. If the line is abandoned at the end of its useful life, EA will remove the conductors and structures from the right-of-way. Salvaged material will be sold as scrap and the right-of-way will revert back to the owners. The estimated cost in present dollars to remove the proposed transmission facilities is approximately $00,000, with salvage values less than $00,000. Reuse of material is very unlikely due to possible contamination or possible damage to material during removal. --
Q. A. HOW WILL EA FINANCE THE PROPOSED CONSTRUCTION? DEHS will pay all of the cost of the facilities as a Contribution in Aid of Construction. EA has developed a payment schedule based on the 6 project cash flow for engineering, procurement and construction, and DEHS will make payments each month to cover expected expenses according to the cash flow projections. More detail on this topic is included in the Direct Testimony of Mr. John Zimmerman. IO Q. A. 6 0 PLEASE SUMMARIZE YOUR TESTIMONY. In my opinion, based upon my professional experience and the information available to me, I believe that the construction of the Proposed Electrical Facilities for which EA is seeking a CECPN is in the public interest. The project described herein is considered to be the most reasonable, complete, environmentally responsible, and cost effective means to provide the necessary electrical connections for the electricity produced by the Duke Energy Facility to access the electrical grid. Existing, as well as future residential, commercial, and industrial customers in Arkansas and the region would benefit from this project and the increased quality, availability and reliability of electric service from the Proposed Electrical Facilities. -0-
I Q. DOES THIS CONCLUDE YOUR TESTIMONY? A. Yes. - -
CERTIFICATE OF SERVICE I, Steven K. Strickland, do hereby certify that a copy of the foregoing has been served upon all parties of record this th day of May, 00. Steven K. Strickland