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HomeMy WebLinkAbout1.0 ApplicationCOST OF COMPLIANCE WITH GOVERNMENTAL REGULATION COLORADO -UTE ELECTRIC ASSOCIATION, INC. April 30, 1982 Table of Contents Page No. I. Introduction 1 II. General Description of Colorado -Ute 2 III. Overview of Study Elements A. Objectives and Scope of Study B. Conclusions of the Study IV. Methodology of Study A. Steam Generation B. Transmission Lines C. Pollution Control Removal Systems D. Cost of Rate Regulations Stemming from Public Utility Regulatory Policies Act 5 14 V. Summary 21 I. Introduction During 1978, Colorado-Ute Electric Association, Inc., devel- oped a study of the costs of compliance with governmental, regula- tions, primarily in the environmental area. That study was con- ducted for use in sworn testimony of Colorado-Ute witnesses before the Colorado Public Utilities Commission in its 1978 rate case. It was also used to provide information to legislative committees and other regulatory bodies. The study was not intended for the purpose of passing judgment on governmental regulations as being "necessary" or "unnecessary," but rather to identify the cost to Colorado-Ute of regulatory compliance and ultimately, the cost to the consumers supplied by Colorado-Ute. This report is an update of the 1978 study, and is expanded to cover more of Colorado-Ute's operations and experience. It also addresses the anticipated costs imposed by regulation stemming from the Public Utility Regulatory Policies Act of 1978. II. General Description of Colorado -Ute Colorado -Ute Electric Association, Inc., is a public utility operating in the state of Colorado and headquartered in Montrose, Colorado. Colorado -Ute operates as a non-profit, member -owned cooperative and is principally engaged in the business of pro- viding wholesale electric service to its fourteen member distribu- tion cooperative associations. Colorado-Ute's fourteen members are locally -owned consumer cooperatives that are principally engaged in the business of pro- viding retail electric service to their consumer members. In gen- eral, the membership of these cooperatives is composed of residen- tial, agricultural, recreational, commercial and industrial con- sumers within the cooperatives' retail service area. The member cooperatives supply their member consumers' load requirements through bulk purchases of power and energy from Colorado -Ute. The retail service areas of Colorado-Ute's member distribution cooper- atives encompass approximately one-half of the land area within the state of Colorado, including all or a portion of 49 of the state of Colorado's 63 counties. Colorado -Ute and its fourteen members together constitute the second largest electric utility system in the state of Colorado in number of consumers served and annual energy sales to consumers. In order to meet its members' load requirements, Colorado -Ute supplies power and energy from its own generating resources and -2- from purchases from other power supply entities. Colorado -Ute presently owns and operates the following electric generating capacity: Colorado -Ute Electric Association, Inc. Electric Generating Units Net Capacity (MW) 1. Craig Unit 1 119 2. Craig Unit 2 119 3. Hayden Unit 1 175 4. Hayden Unit 2 131(1) 5. Nucla Units 1,2,3 30 6. Bullock Units 1,2 10 7. Tacoma and Ames Various Units 11 Hayden Station, Craig Station, Nucla Station, and Bullock Station are coal-fired steam electric generation plants and Tacoma and Ames Stations are hydroelectric generation plants. A third 400 mw coal-fired steam electric generating unit is now under construction at Craig Station. This unit will be owned entirely by Colorado -Ute and is scheduled to be in commercial operation by the end of 1983. Colorado -Ute currently plans to construct a coal-fired steam generating unit at a new site near Grand Junction, Colorado. This (1) On January 1, 1982 Colorado -Ute recaptured 30% of the net capacity of Hayden Unit No. 2 making Colorado-Ute's share 131 mw or 50% of the unit. However, during the time frame of this study, Colorado -Ute had only a 20% share of Hayden Unit No. 2 or 52 mw. The costs of compliance with governmental regulation for Hayden Unit No. 2 represent only the costs associated with the 20% share. -3- will be a 500 mw unit and is currently scheduled for commercial operation in 1988. Colorado -Ute delivers power and energy to its fourteen members over its own transmission system and over the intercon- nected high voltage transmission systems of other power supply entities pursuant to the contractual terms of a variety of inter- connection, wheeling and displacement arrangements. Colorado- Ute's transmission system consists of approximately 1,162 miles of high voltage transmission lines and 49 substations. - 4- III. Overview of Study Elements A. Objectives and Scope of Study The objectives of this study are as follows: 1. To examine and quantify the capital and operating costs of compliance with governmental regulation where directly ascertainable. 2. To compare these costs with total costs. 3. To discuss anticipated costs related to Public Utility Regulatory Policies Act of 1978. Colorado -Ute was able to ascertain the total of direct costs of compliance with governmental regulation with respect to oper- ating and capital costs in the area of coal-fired steam electric generation. This is the area where governmental regulation has had the greatest impact upon the costs of operation for Colorado - Ute. Colorado -Ute has so far not been impacted greatly in the areas of hydroelectric operating costs and has not had any direct experience in the construction of major hydroelectric generation facilities. In the area of transmission system costs, Colorado -Ute was not able to quantify the total costs of compliance with govern- mental regulations due to the time limitations of the study, the number of projects and the sheer bulk of the data that would have to be analyzed. The analysis of regulatory costs in the trans- mission area was again limited to examples of recent transmission -5- line construction. Costs associated with existing commitments to preserving aesthetics on facilities in service have been quantified. The Public Utility Regulatory Policies Act (PURPA) of 1978 generally exempted small utilities and wholesale utilities from its various provisions. However, PURPA regulations are generally implemented through State regulatory agencies. In the case of the State of Colorado, the Public Utilities Commission has determined that the promotional and incentive rate designs and load manage- ment principles set forth in PURPA should be implemented regard- less of the exemptions in PURPA. Colorado -Ute is interconnected to power systems in 14 Western states and is also a member of the Inland Power Pool. Because of. this situation and other favorable conditions, Colorado -Ute has been able to institute a resource management program, which is a much more effective tool to reduce costs than attempting to manip- ulate demand through rate design. Our resource management program in turn has enabled us to offer a unit price wholesale rate based on a flat energy charge per kwh. Colorado -Ute is able to eliminate the traditional demand charge because Colorado-Ute's resources are base -loaded coal-fired generating units. Colorado -Ute, because of its base -loaded gener- ation, does not have to rely upon peaking units fueled by high- priced oil and gas to meet peak loads, as many other utilities do. -6- Therefore, we believe that a mandate of incentive rates and load management for the Colorado -Ute system is misguided, contrary to the financial and rate design goals of Colorado -Ute and its mem- bers, and would result in added and unnecessary costs. An estimate of these additional costs has been developed based upon known in- dustry experience and current vendor prices for meters and equipment. The Public Utilities Commission of the State of Colorado has also expressed confidence that small power producer and cogenerator developments could and should become a significant component of utility resource plans. Our studies indicate that there are cur- rently no cost effective small power producer or cogenerator poten- tials in the service area. In the future, some possibilities may emerge. To assume, however, that they will emerge would be an un- warranted and costly risk in resource planning. No attempt has been made to estimate costs associated with this aspect of the PURPA influence. It should be noted that the regulatory costs used in this study represent only directly identifiable major cost components. No attempt has been made to quantify those regulatory costs that are paid by Colorado -Ute indirectly and therefore cannot be defin- itely ascertained. For example, the study does not include, among others, the following major indirect cost items: 1. Regulatory costs hidden in the price of materials used in generating plant construction, such as steel and cement. -7- 2. Reclamation and other regulatory costs included in the price of fuel purchased by Colorado -Ute, unless passed on directly to Colorado -Ute. The study also does not include those direct regulatory costs that consist of a multitude of small items, or where the costs are known to exist but the amounts are somewhat speculative. The following are examples of this category of regulatory costs excluded from the study: 1. OSHA regulations requiring safety devices, imposing operating limitations, and similar items. 2. Public Utilities Commission fees, hearing costs, reporting requirements, and added financing costs. 3. Federal Energy Regulatory Commission reporting requirements. 4. Local building permits and zoning restrictions. 5. Cost of continuous analysis of new regulations to determine applicability to Colorado-Ute's business. The above lists of excluded regulatory costs are only repre- sentative of the many items that could properly be included if the data were available and could be reasonably analyzed. Because of these exclusions, the results of this study are, we believe, quite conservative. B. Conclusions of the Study 1. Steam Generation The study concludes that the direct identifiable annual cost of compliance with governmental regulations during the period of this study amounted to 38.4 percent of the total cost of produc- tion at steam generation plants, up from 35 percent in 1978. The -8- following is a tabulation of such costs by generating unit as a percentage of the total cost of production. Costs of Compliance with Governmental Regulation (Percent of total production cost) Craig Unit 1 Craig Unit 2 Hayden Unit 1 Hayden Unit 2 Nucla Station Bullock Station Average 34% 36% 51% 36% 30% 45% 38% During 1981 these costs totaled $29 million of which $12 million related to the financing cost of pollution control equip- ment and $16 million related to the operation and maintenance and electric. power needed to operate the equipment. From these num- bers, it is a reasonable inference that if all direct and indirect regulatory costs were included, the cost of compliance with gov- ernmental regulations would amount to at least half the total cost of generating electric power by Colorado -Ute. Schedules 1 and 2 set forth the summary of costs involved. Supporting schedules 3 through 11 show a details of the cost factors. 2. Transmission Costs of transmission facilities recently constructed have been affected tremendously by regulatory compliance. Increased -9- costs have been incurred directly as a result of regulatory re- quirements and indirectly from inflationary increases which have resulted from regulatory caused delays. One of the projects analyzed was the Poncha-San Luis 230 kv line which was placed in service in 1981, approximately 8 years late. The cost of constructing this line was $10.7 million in- cluding costs for direct regulatory stipulations of approximately $1.5 million. Inflation during 4 years of regulatory delays is estimated to represent another $3.4 million of the cost. Also in- cluded in the cost is $4.1 million resulting from changes in the original project scope and further delays brought about as a result of actions by the permitting agencies. The total cost of regulatory compliance associated with this project is estimated to be 85 percent of the final cost. This means that Colorado -Ute ended up spending more than six times as much as was originally planned due to governmental regulations. As another example, the Wolcott -Malta 230 kv transmission line project has been delayed 6 years by federal and local agency action and inactions. The project is currently under construction, with final costs estimated to be $21.6 million. On this project, direct regulatory costs are estimated to be $4.2 million. Infla- tion during 5 years of regulatory delays is estimated to be another $5.3 million. An additional cost of approximately $1.8 million has resulted from changes in the project scope and -10- associated delays which were imposed by permitting agencies. The total cost of regulatory compliance associated with this project is estimated to be 53 percent of the final cost. Figure 1 is a graphic illustration of the increases in trans- mission costs for the Poncha-San Luis 230 kv line due to govern- mental regulations. Schedules 12 and 13 detail the above con- struction costs for the Poncha-San Luis 230 kv and the Wolcott - Malta 230 kv projects, respectively. 3. Rate Regulation Costs At the present time it appears that the pressures of infla- tion may be lessening. Although interest rates are presently high, they are expected to come down in line with inflation. Colorado-Ute's costs and, therefore, rates now reflect extensive environmental protection equipment and efforts. Rates in the future could therefore be expected to stabilize. However, there is a new force at work which we believe will drive up costs and rates with absolutely no increase in productivity or improved environmental conditions. These costs will result from so called "rate reform" activities which stem from the Public Utility Regu- latory Policies Act of 1978. As evidenced by recent regulatory decisions in the area of rate design, these experiments will in- volve promotional rates, new metering systems, load research pro- grams and load controllers, all of which will be very expensive. The purported benefits, even if the economic theories are correct, are a decade away. Today's customer must bear the cost, which we -11- FIGURE 1 Poncha-San Luis 230 kV Transmission Line Construction Cost 51,860,000 55,050.000 59,150.000 fr s10.700.000 BASE COST 1973 DELAYED COST 1977 PERMITTING COST AS -BUILT COST 1981 1981 DELAY represents the increases in labor and material costs from 1973 to 1977 due to regulatory delays. PERMITTING represents material costs due to imposed by permitting resulting delays. the increased labor and changes in project scope agencies, along with the DIRECT REGULATORY represents the increased labor and material costs directly related to regulatory compliance. -12- estimate to be approximately $260 per customer. The $260 trans- lates into an annual operating cost of 3.9 mills per kwh or 10 percent of total operating costs for Colorado -Ute. It should be emphasized that no hard evidence exists that these consumer expen- ditures will result in any benefits whatsoever. Schedule 14 sets forth a summary of the cost estimates resulting from rate regulations. -13- IV. Methodology of Study A. Steam Generation In the area of cost of compliance for governmental regula- tion with respect to steam generation plants, Colorado -Ute examined for the twelve month period ending December 31, 1981 the following cost components: 1. Labor and associated payroll overheads 2. Fuel expense 3. Materials and supplieb and other costs 4. Additional power costs 5. Fixed costs on pollution control equipment a. Depreciation b. Property Taxes c. Interest Expense d. Property Insurance 6. Administrative and general expense Labor and associated payroll overhead expenses represent the cost of plant operations and maintenance personnel that are spe- cifically assignable to the operations, maintenance and testing requirements of pollution control equipment. Also included were estimates of the cost of supervision of these functions by plant supervisory personnel. Fuel expenses represent the portion of Colorado-Ute's fuel expense that was directly attributable to environmental taxes or -14- legislation at the time this study was prepared. These costs include: 1. Reclamation costs, if specifically passed on to Colorado -Ute 2. Colorado Severance taxes 3. Federal Reclamation costs 4. Federal Black Lung taxes 5. Environmental costs Materials and supplies and other costs represent the direct costs of materials, supplies and replacement parts issued on a routine basis and other expenses associated with the operation, maintenance and testing requirements of the pollution control equipment. Additional power costs represent a pro rata estimate of the cost of capacity lost in the generation station by the addition of pollution control equipment plus the cost of energy needed to operate the equipment. Depreciation, property tax, interest expense and property insurance represent the fixed costs that are associated with the pollution control equipment installed. The pollution control equipment represented major component systems that Colorado -Ute installed or retrofitted to existing plant in order to comply with government regulation. These facilities are briefly summarized in Section C, "Summary of Pollution Control Removal Systems." -15- Administrative and general costs represent the administrative costs associated with the operation and maintenance of pollution control equipment installed and compliance with directly identi- fiable regulatory requirements. B. Transmission Lines In the area of analysis of the impact of government regula- tion on construction of transmission facilities, the principal result of these regulations has been to delay projects, change project design, and lengthen the time period required for con- struction, which increases the cost of construction due to infla- tion and interest charges during construction. The regulations that most affect Colorado -Ute are federal regulations with regard to: 1. Line routing 2. Right-of-way clearing 3. Permitting 4. Preparation of additional studies 5. Requirements for additional hearings Colorado-Ute's transmission system is particularly affected by federal requirements because most of the land in Western Colo- rado is federally owned and subject to the Bureau of Land Manage- ment or United States Forest Service control. -16- Changes in requirements for routing transmission line corri- dors away from existing highway corridors so as to hide transmis- sion lines from public view require the use of special construc- tion equipment, particularly in mountainous terrain. In most cases, this requires special overland vehicles or the use of heli- copters for construction. The Bureau of Land Management and Forest Service limit the amount of access roads that can be con- structed. Where right-of-way clearing is required, clear cutting may not be permitted. New regulations require feathering tech- niques which may involve landscaping and special cutting for dis- tances up to 800 feet on either side of the center line. These kinds of costs can be directly identified. Costs of delays must be estimated to account for inflation. Two new stipulations from federal agencies have come clearly to light since the 1978 report. One is that of prebuilding future line capacity so as to minimize or avoid future projects and therefore environmental impacts. The second is major changes in project scope, including longer lines, higher voltages and higher costs simply to avoid geographic areas which are considered sensi- tive or even of undetermined status by permitting agencies. These costs have been specifically identified in the two comprehensive examples of this study. Colorado -Ute has also been able to identify some consider- able expenses incurred to preserve aesthetics. These include -17- visual enhancements such as screening of facilities with vegetation and camouflaging transmission lines. As of the end of 1981, Colorado -Ute has spent a total of $3.8 million dollars in "aesthetic costs". The effect of this capital cost outlay has been to increase Colorado-Ute's transmission system fixed costs (Depreciation, Taxes and Interest) by $320,000 annually. C. Pollution Control Removal Systems The following is a brief summary of the major components of pollution control systems that Colorado -Ute had installed for Hayden Station, Craig Station, Nucla Station and Bullock Station which were analyzed for the purposes of this study. Hayden Station 1. Hotside electrostatic precipitators 2. Flyash and bottom ash removal systems 3. Ash hauling equipment and disposal site (to the extent not required for operational purposes) 4. Waste water concentration system including holding ponds and evaporation ponds 5. Coal yard drain ponds 6. Ambient air monitoring systems 7. Nitrous oxide reduction boiler design on Unit 2 8. Increased stack height on Unit 2 for better dispersal of emissions Craig Station Units 1 and 2 1. Hotside electrostatic precipitators -18- 2. Sulfur dioxide removal system 3. Flyash and bottom ash removal systems (to the extent not required for operational purposes) 4. Ash and sludge hauling equipment and disposal site 5. Increased stack height for better dispersal of emissions 6. Nitrous oxide reduction boiler design 7. Fugitive dust suppression systems at various plant site locations S. Waste water concentration system including holding ponds and evaporation ponds 9. Coal yard drain pool 10. Sewage and plant waste drain system 11. Ambient air monitoring system Nucla Station 1. Fabric filter baghouse collection system 2. Ash hauling equipment and disposal site (to the extent not required for operational purposes) 3. Cooling tower system 4. Evaporation ponds and holding ponds 5. Water piping modifications for elimination of thermal and water discharge pollution Bullock Station 1. Fabric filter baghouse collection system 2. Ash hauling equipment and disposal site (to the extent not required for operational purposes) 3. Evaporation ponds 4. Modification of drain piping to eliminate waste discharge pollution -19- D. Cost of Rate Regulations Stemming from Public Utility Regulatory Policies Act In the State of Colorado, the Public Utilities Commission has unilaterally determined that load management is a cost effective course for regulated electric utilities to follow. Load manage- ment embodies incentive or promotional rates, load control by the customer, and load control by the utilities. Cost estimates have been prepared in the following areas: 1. Load research program - A study of the customer load characteristics to develop data upon which the design for a load management program can be based. 2. Promotional or incentive rates - The metering and oper- ating aspects of applying complex rate structures such as demand/energy or time of use rates. 3.. Customer load control - In response to a demand or time of use rate, it is assumed that customers with high lev- els of electricity use would purchase and install a load control device. The device would be a necessary measure of preservation so as to maintain monthly bills at an affordable level. The load controller simply gives the residential or commercial customer the ability to exploit a demand rate structure just as the larger industrial customers do. The customer can react "correctly" to the rate design to achieve the supposed savings inherent in the rate structure. There is no assurance, however, that such steps taken by consumers in response to a rate structure will necessarily be rational if the structure is too complex for the general public to understand. 4. Utility load control - The hardware and operating aspects of applying interruptible rates to the residential class of customers. -20- V. Summary One of Colorado-Ute's basic policies has been a full commitment to the protection of the environment. Colorado -Ute believes that economic growth and environmental protection can be compatible. However, it is Colorado-Ute's position that the effects of governmental regulation need to be balanced reasonably against costs. Colorado -Ute has an obligation to the member consumers that it supplies to keep all costs, including the cost of environmental protection, as low as possible. Colorado -Ute is greatly concerned that the present costs of compliance with governmental regulations may be only the tip of the iceberg. New governmental regulations or modifications of existing governmental regulations are being promulgated every year. The seemingly innocuous provisions of the Public Utility Regulatory Policies Act (PURPA) are a good example in the case of Colorado -Ute. The spin-off costs from PURPA are totally unnecessary, unproductive and, in Colorado-Ute's case, counter to the rate design philosophy of Colorado -Ute and its members. Yet, the ideas and concepts are being applied to Colorado -Ute by the State regulators even though the Federal regulations exempted small systems and wholesale operations. -21- Schedule 1 Colorado -Ute Electric Association, Inc. Comparison of Costs of Compliance with Existing Governmental Regulations to Total Production Costs for All Steam Generating Stations Twelve Months Ended December 31, 1981 ($1,000) Cost of Compliance Total With Governmental Production Regulations Costs Operations and Maintenance Labor $ 2,172 $ 6,208 Fuel Costs 3,909 21,349 Materials Supplies and Other Expenses 2,443 6,197 Additional Power and Energy 7,071 Total 15,595 33,754 Fixed Costs Depreciation 5,039 10,341 Taxes 1,096 3,177 Interest 5,742 23,955 Insurance 400 1,334 Total 12,2/1 38,807 Subtotal 27,8/2 72,561 Administrative and General Expense Total Production Costs 1,131 $29,003 2,943 $75,504 Cost of Compliance to Total Production Costs $29,003/$75,504 = $38.41% M a m C N. 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CC) +a414 OO 0 0 0 v 0.00000 441.4/4 N C F 4100 9 .M.1 O C 00 0 m m N 41 419 T6 1 O u 01 4 -7 .Or -•00100. 41 9u1 Y_C O. m 0440MO.00 0 14041 U 0. 0 OM.4>NU 01) v 0904440 U.OjF 404 000 0 4 v 001004.1C C o 4140 000 00 C1 Cr, CO N -. 4 0 4.1.4 0 y u 0 -1 N CS 1- T 000100 0 Om I. N r. N ..100.01.114 4C Mw'NI 40w 14 U"' N 1, 044410 •0 0 m •',09 Cm L 0 0 0 0 0 4 C 08000%A 0•+ e 41 N 4.1000 '06=0 0 00 0 41 1.100 O m 0 0 0 C 0 4 T y 0 0 0 0 0 44 +-i 000 .1 % 14 0 Um(U 00 40 W 0 mu O.y0 41 F 0 Y.0L -• ON 1 0.0 00 0 0 0 - 0 0 60 Y 0 W Y Wil 4 44 O C u 41 41 110 0.. Q 41 0 0 140 U Y 0 4 U 0 u 00Om .0 00 w 0 .0i Y 0 0404 0 0 a >u u a 0 41 0040 4141 00 004 C N 0 .• F 0 9 4 41 • 0 0 y 00 0 0 0900'4 0 W1.10m04 000 1 0 C q 4 - W 0.4104400 00 00 0 0 0 0 O .1004041 um 910 4 4 4 4 OM 0 U 00 Mm > .a 9 9 C U L L 6L 4 410 I- 4 J 9 00 C O N N O 0424200 0 .404 4 U 1 C• F 0 C r4 N0 0 ..01,u=1.40 C0 v000 6 Cr* Colorado -Ute was not able to identify th structure of tl Schedule 5 .y 00 00 n O n N O N'! ill V1 O 14 F .0 vI .e P' N 4 C0 L 0 '0 n .0 0. 0. .41 u y ' 0 0 .. 0 0 0 CM M u 0 0 cu Z 0 N 0 N 0' n W. EN N 0 A W d N 01 O '0 Y N f.. n, O 0 C •00 S0 00•.4 0 C 0 o O I-. U '.41T u. •T0 C 0.41 • O4 0.41 .141 al 0 n � N uL0. 0 ▪ 0 0410 ac r- < 0 OO~040 0) 5g V. N 004.0 d 0 0 6 Y d 0 4100 V 1 : -. 0 14.0 O >'O MN N. n. b d••. O C 141 0 CO en .r 00061 041 ti C 14 C N 0 0.0 0 U 0 N N .4 u .0 0 d a.41) 0 141 T c 01 9E O 0 en 0 c d0 0'~ .-7 00 '0. B 13 W.I Y 0 O •41 .44 0 .41 00• 0 • -r L O .4 d 14 C 0 0491? V' y 0.0 U 0g 0 41 0 9U 00 O _ 0. 0 04.41 O 1.0 O d 0. 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T u d • 01 O. 00 0 0 ea 14 91 0 641 14 • O d .41 C O 0 .4 0 0.144 .0410.4 00Q1 a� 0. >. 0 0. a .. additional maintenance outage due to downtime for operation and r N t J to 8 X '•-1 .r1 .g U HI rC HI CO 0 rn . • 0 0 M ▪ 00 4 c 0 & 0 •N • W O • ro •Ell -12 W r ELI 1n t0+•C 2 m v oOO v U 1 a d 11) (NI 0 N 10 N 01 N In N 10 N 1/)- N N V ccci (? 1.0 l0 M CI N '� M (0 ▪ N a8 V N O M O1 M d' N Ll N ter rel OD Ul Ul 0 N -4 N 'i N 10 Le O M O4 ri V N 04 Water Pollution Control Solid Waste Disposal Facilities .1 41 0 37.+ C 11 O C U 80 .1 8 cu Ecl woit 4 1 Ca0 J.l W 10 N N N N N M O HI al 10 a o 14 t• OA r0 ▪ O 0 do • VD N o H N b w •$+ 1n 0W O m 0 C S+ 7 1 X as 7 4-4 4-3 ) • 4-1 L 0) 0 $aa •al rt CO g rt 1411 rFa rrna MiIic2a2 —1 N M V, Schedule 7 N a-1 In 8 r8 X 4-3 G. 4 HI C 7• U C H CO H Q T 4-1C .08PI HE 0 7 N ^ • & o Tal N N • 42iC a�q �•°'a) as co > Hp0 V 3 U O E co co l0 M H N H 30 in N lc0 !- U N E yr 54 ni 0�.I N p.C H M 4-I N UaU)� Li C C C H N CO O tiT - m H M I SII th r N N co m d M N H '-I C/3 - >, /} >y4.1 }(.1, N l0 N l0 W N • V N Lra to H 0 HI O N 0 30 H In H N 01 N N N H 0 H N V' N LO N 44 a0i S Hi0 ( H 0 34 C O 0 c 8 .11 1+, 0 • C 0+ U C0 • 7 4-1 c HI M H C Solid Waste Disposal Facilities rn m '4 N M 30 to H m O U O 4-1 Ia � S, S+ 5 •ti cc � cc aa) co- 'I) 0 0 0H do 00 a1 00 H N w w ui o w 0 4 o 4-4 C $4 aS S03 SI w x al u) ).,c >. � c 15) 'o O Q C aN N '0333 X22 H N M d' CO \ § \ g .2 49 /u l0 el H \N tn § I /I CO P \ S II ' H ) j 8 ) \ ) § 0 j4.3 2 CO co ® 3 ) S4) / 7 \ CO \ ( \ cn 2 4 (00 \ 0 8 / m \ 0 > ^ ) q ^ ( /I \ § m & o / CO N ( N 03 (NT CO- CO - 0 } CO- 0608 per $100 2//y }) \\/ 2! Lc,a _0 t{) \) CA - 8 _ /e » / \ Water Pollution Control Solid Waste Disposal Facilities Miscellaneous Facilities CO- CA- ad CO CA- ( § reel, Schedule 11 w C 47 7 7 CO H r-1 01 • O rl 4 O co It 8 C r caw 7 O 1p ) O a p O w C ro yr w `s CO tl U) 4-1 O C o m 8cn 1 a h o w U1 co - M �-1 1/40 I� .-I N % I V}I N OD \0 M N rH CO r1 In 0 ro N0 ON CO ON N v v V} !JJ�Hi ON CO N N M •.1 M '•V I"- 81 8 U8 Water Pollution Control Solid Waste Disposal Facilities Miscellaneous Facilities N N co UN- of $0.3068 per $100 0) ro w ro 5 COLORADO—UTE ELECTRIC ASSOCIATION, INC. Comparative Analysis of Construction Costs Poncha—San Luis 230 kv Line Construction Engineering Right—of—Way Procurement Legal Costs (4) Environmental Analysis Interest During Construction Total 1973 Normal Construction Costs $ 1,364,000 103,000 110,000 44,000 0 16,000 $ 1,637,000 Costs directly attributed to Regulation 1981 Actual Cost 1981 Normal Construction Cost Cost of Regulation Costs attributed to changes in project scope due to permitting 1981 Normal Construction Cost 1977 Normal Construction Cost Cost of Permitting Costs attributed 1977 Normal 1973 Normal Cost of Delays to Delays Construction Cost Construction Cost 1977 Normal Construction Costs(1) $ 4,039,200 359,200 205,300 51,300 0 400,100 5,055,100 $10,698,300 9,152,300 $ 1,546,000 $ 9,152,300 5,055,100 $ 4,097,200 $ 5,055,100 1,637,000 $ 3,418,100 1981 Normal Construction Costs(2) $ 7,160,300 850,000 280,000 12,000 0 850,000 $ 9,152,300 Schedule 12 1981 Actual Costs(3) $ 8,325,000 931,700 281,800 12,500 55,300 1,092,000 $.10,698,300 (1) Differences between 1977 and 1973 normal costs are due to inflation costs as a result of regulatory delays. (2) Differences between 1981 and 1977 normal costs are due to changes in project scope necessitated by permitting requirements and to the resulting delays. (3) 1981 actual costs include normal construction costs and all direct regulatory compliance costs. (4) 1981 normal and actual Legal Costs include only contracted legal services. Other Legal Costs are included in Right—of—Way Procurement. COLORADO -UTE ELECTRIC ASSOCIATION, INC. Comparative Analysis of Construction Costs Wolcott -Malta 230/345 kv Line Construction Engineering Right -of -Way Procurement Legal Costs (4) Environmental Analysis 1976 Normal Construction Costs $ 8,284,160 877,800 460,000 140,920 0 Interest During Construction 553,320 Total $ 10,316,200 Costs directly attributed to Regulation 1982 Actual Cost 1982 Normal Construction Cost Cost of Regulation Costs attributed 1982 Normal 1977 Normal Costs of Delays to Delays Construction Cost Construction Cost Costs attributed to changes in project scope due to permitting 1977 Normal Construction Cost 1976 Normal Construction Cost Cost of Permitting 1977 Normal Construction Costs(1) $10,409,200 602,660 92,580 39,840 0 958,420 $12,102,700 $21,639,700 17,392,700 $ 4,247,000 $17,392,700 12,102,700 $ 5,290,000 $12,102,700 10,316,200 $ 1,786,500 1982 Normal Construction Costs(2) $12,017,600 1,853,100 150,000 40,000 0 3,332,000 $17,392,700 Schedule 13 1982 Actual Costs(3) $14,667,800 2,481,900 400,000 45,000 0 4,045,000 $21,639,700 (1) Differences between 1977 and 1976 normal costs are due to changes in project scope necessitated by permitting requirements and to the resulting delays. (2) Differences between 1982 and 1977 normal costs are due to inflation costs as a result of regulatory delays. (3) 1982 actual costs include normal construction costs and all direct regulatory compliance costs. (4) 1977 and 1982 normal Legal Costs and 1982 actual Legal Costs include only contracted legal services. Other Legal Costs are included in Right -of -Way Procurement. Schedule 14 Page 1 of 5 LOAD MANAGEMENT This schedule sets forth an estimate of costs to be incurred by Colorado -Ute, its members, and, in turn, the retail customers, should a program of load management be required for the residential and commercial classes of customers. Such a program would include incen- tive or promotional rates and direct load control, i.e., demand rates, time of use rates, seasonal rates, and interruptible rates, as well as load control devices (customer owned or utility owned). I. ESTIMATED COST OF A COLORADO -UTE LOAD SAMPLING PROGRAM FOR THE FOURTEEN MEMBER SYSTEMS A. Capital Costs Metering Equipment 4500 Recording Pulse Meters @ $900 each installed $4,050,000 450 Spare Reserve Recording Pulse Meters @ $550 each 247,500 Total Metering Equipment $4,297,500 Translation Equipment Basic Hardware Package $ 170,000 Supporting Software 70,000 Total Translation Equipment $ 240,000 Total Capital Costs $4,537,500 B. Annual Operating Costs Labor Costs Field Personnel (28) 58,240 hr. @ $10.27/hr. $ 598,120 Translator Operator (4) 8,320 hr. @ $7.68/hr. 63,900 Load Analysts (6) @ $20,000/yr. $ 120,000 Subtotal 782,020 Payroll Overheads @ 40% 312,810 Total Labor $1,094,830 Transportation Expense 504,000 miles @ $.35/mi. Operating and Maintenance Materials and Supplies Administrative & General Overhead 30% of Total Labor Depreciation $4,537,500 x 6% Taxes $4,537,500 x 19.2429% x 0.04887 Interest $4,537,500 x 13.5% Total Annual Costs 176,400 214,500 328,450 272,250 42,670 612,560 $2,741,660 Page 2 of 5 II. PROMOTIONAL OR INCENTIVE RATE STRUCTURES A. Capital Costs 70,000 existing kwh meters modified to record demand and energy use in selected time periods @ $200 each $14,000,000 7,000 spare meters for member inventory @ $150 each $ 1,050,000 Total Capital Costs $15,050,000 B. Annual Operating Costs Labor, operating and maintenance, and administrative and general expense is assumed to be greater than existing expenses due to increased complexity and customer reaction. The following extimates are therefore increases over current expenses. Labor Costs: Accounting (14) 29,120 hr. @ $10.00/hr. $ 291,200 Customer Service (14) $20,000/yr. 280,000 Subtotal $ 571,200 Payroll Overheads at 40% 228,480 TOTAL LABOR $ 799,680 Transportation Expense 140,000 miles @ $ 49,000 $.35/mi. Operating and Maintenance Materials and Supplies $5/meter $ 350,000 Administrative and General Overhead 30% of Total Labor Depreciation $ 15,050,000 x 6% Taxes $ 15,050,000 x 19.2429% x .04887 Interest $ 15,050,000 x 13.5% Total Annual Costs $ 239,900 $ 903,000 $ 141,530 $ 2,031,750 $ 4,514,860 Page 3 of 5 III. CUSTOMER LOAD CONTROL A. Capital Costs Cost to residential customers using electricity for space heating. 30,000 controllers @ $650 per controller installed (Represents a cost to be incurred by the customers) $19,500,000 B. Operating and Maintenance Costs The customer load controllers presently available are primarily solid state electronic devices for which operation and maintenance costs should be minimal. However, one service call per year per device would amount to perhaps $40 per year and with the industry in its infancy only one service call per year is definitely conservative. 30,000 controllers @ $40 $ 1,200,000 Page 4 of 5 IV. UTILITY DIRECT LOAD CONTROL ASSOCIATED WITH INTERRUPTIBLE RATES A. Capital Costs Estimated cost of a Colorado -Ute load control program for the fourteen member system. The system would employ the. Colorado -Ute microwave communication system and would give the Colorado -Ute dispatch control over the interruptible load on the member systems. Transmitter Stations Master Radio Controller $ 28,000 14 VHF Transmitters, 300 watts @ $11,500 each 161,000 14 VHF Antennas @ $4,500 each 63,000 Inventory, parts, installation costs 33% 83,160 Total Transmitter Costs $ 335,160 Excludes cost of Colorado-Ute's communication system capacity dedicated to load control program. Receiver/Relay Devices 30,000 Devices, one per residential space heat customer at $100 each installed $3,000,000 Inventory and Parts 10%, 3,000 at $85 each $ 255,000 Total Receiver/Relay Equipment $3,255,000 Total Capital Costs $3,590,160 B. Annual Operating Costs Labor Costs Engineer (1) $24,000/yr. Technician (2) 4160 hr. @ $10.27/hr. Subtotal Payroll Overheads @ 40% Total Labor Transportation Expense 100,000 miles @ $.35/mi $ 24,000 42,720 66,720 26,690 Operating and Maintenance Materials and Supplies Administrative & General Overhead 30% of Total Labor Depreciation $3,590,160 x 6% Taxes $3,590,160 x 19.2429% x 0.04887 Interest $3,590,160 x 13.5% $ 93,410 35,000 20,000 28,020 215,410 33,760 484,670 Total Annual Costs $ 910,270 Page 5 of 5 V. SUMMARY OF COSTS FOR LOAD MANAGEMENT Capital Annual Activity Costs*1 Costs*2 Load Research $ 4,537,500 $ 2,741,660 Demand and Time of Use Rates $15,050,000 $ 4,514,860 Customer Load Controller $19,500,000 $ 1,200,000 Utility Load 'Control and Interruptible Rates $ 3,590,160 $ 910,270 • Total $42,677,660 $ 9,366,790 Cost per kwh in 1981 .392t/kwh Cost per customer in 1981 $259 $56.81 * 1 Expressed in 1982 dollars * 2 Annual carrying costs based upon 13.5% interest Colorado -Ute Electric Association, Inc. P. 0. Box 1149 Montrose, Colorado 81402 Telephone (303) 2494501 TWX 910-929-6924 January 11, 1982 HAND CARRIED y Valasquez, Chairman Garfield unty Board of Commissioners P. 0. Box 64 Glenwood Springs, CQ_,81602 Dear Mr. Valasquez: Application for Special Use Permit Proposed Rifle -Battlement Mesa 138 kv Transmission Line By letter dated October 20, 1981, Colorado -Ute made applica- tion to Garfield County for a Special Use Permit for a proposed 138 kv transmission line from Rifle to Battlement Mesa. This application has been placed on the agenda for the January 11, 1982 meeting of the Garfield County Planning Commission. This letter is to withdraw Colorado-Ute's permit application. As a result of discussions with Public Service Company of Colorado (PSCC), Colorado -Ute now intends to provide service to its member Holy Cross Electric Association in the Battlement Mesa area from a new substation tapping the existing PSCC 230 kv transmission line in the Parachute area. The reasons for this change and other proposed joint Colorado-Ute/PSCC plans in Garfield County, will be discussed by Mr. Raymond E. Keith, Manager of Power System and Ecomonic Planning, at the January llth Planning Commission meeting. Since Colorado -Ute is withdrawing its application, I request a refund of the $500 permit fee. If Garfield County has already incurred significant expenses in processing our application, please refund the unused portion. If there are any further questions regarding the withdrawal of this application after the January 11, 1982 meeting, please let me know. JRM/dcm cc: Flaven Cerise Jim Drinkhouse LD -his Farrar Dave Howard, PSCC Edward Grange, HCEA Very truly yours, e 44elti„e_o John R. McNeill, Manager Right -of -Way & Land Acquisition GARFIELD COUNTY PLANNING DEPARTMENT GLENWOOD SPRINGS, COLORADO 81601 2014 BLAKE AVENUE December 30, 1981 Mary Chapman Colorado -Ute Electric Association Box 1149 Montrose, CO 81401 PHONE 945-8212 RE: Rifle -Battlement Mesa 138kv Transmission Line Special Use Permit Application Dear Mary: As indicated in previous conversations with you, the agenda for the Garfield County Planning Commission has been such that we are unable to hear Colorado-Ute's proposal until the Planning Commission's first January meeting. For that reason, we are asking Colorado -Ute to approve a 60 -day extension to accommodate Garfield County's review. process. In the case that Colorado - Ute is unable to agree to such a time extension, the Garfield County Planning Department would be unable to recommend approval of the Colorado -Ute proposal. Please let me hear from you in regard to this request. A copy of the Planning Commission',s January agenda will be forthcoming shortly. Sincerely, Terry L. Bowman Assistant Planner TLB/lw November 20, 1981 public Service Company CoRomeo P.O. BOX 840 • DENVER, COLORADO 80201 Board of County Commissioners Garfield County P. 0. Box 640 Glenwood Springs, CO 81601 Gentlemen: tROMOISE Public Service Company of Colorado filed an application for a Special Use Permit with the Garfield County Planning Office on November 10, 1981. The application requests a Special Use Permit for the electric transmission and substation system to serve the oil shale developments north of the town of Parachute, Colorado. The planned facilities will include a 230,000 volt transmission system and the associated substations and switching stations required for the delivery of power to the various load centers. The required electrical service will be provided by the Company's existing 230,000 volt Cameo -Rifle transmission line. This line will be extended to the proposed Parachute Substation. Parachute Substation will provide the bulk transmission facilities for the oil shale loads as well as tranfor- mation facilities to augment the Company's local distribution system capacity north of Interstate 70 in and around the town of Parachute. The remaining proposed facilities include a 230,000 volt transmission line from Parachute Substation to Wheeler Substation to Pyramid Switching Station, from Pyramid Switching Station to Bench Substation, from Pyramid Switching Station to Davis Switching Station, and from Davis Switching Station to the Colony Project Plataeu Substation and to the Colony Project Bench Substation. Subject to the granting of the Special Use Permit, the Company will complete the negotiations to acquire the substation sites and transmission line easements, and required crossing permits. Public Service Company of Colorado is a public utility authorized by State statutes to acquire pro- perty by eminent domain (C.R.S. 1973: 38-5-105). Should negotiations through normal procedures be unsuccessful, the Company will institute an action in eminent domain for the purposes of acquiring the required land rights. Preliminary discussions with the landowners indicate that such actions will not be necessary. Sincerely yours, David K. Howard, Supervisor, Land Use Electric Engineering Land Department jc ` �I nl jAi y� Iii. 1 ` �'': 11 if, ;;•V2 19P1 III Cl'I --1,7j.. ! COUNTY ("0.W1,. CLAYCOMB ENGINEERING ASSOCIATES, INC. November 18, 1981 Garfield County Planning Department 2014 Blake Avenue Glenwood Springs, Colorado 81601 Attention: Mr. Davis Farrar NODI 9 !9a Uco Re: Col -Ute 138KV Rifle - Battlement Mesa Transmission Line and PSCC Upgrading of Ramsey Gulch Substation. Job No. 1832.002 Gentlemen: As the consulting engineers for the Bookcliff PUD, we feel there is a real need to consolidate all utilities within the Rifle area. Enclosed please find a copy of the approved sketch plan by the City of Rifle and sheets 1 and 2 of a boundary survey showing all existing utility easements across our property. As shown on the enclosed development plan, our clients are willing to dedicate a new 100' right-of-way easement to Col -Ute in ex- change for abandonment of the existing 100' right-of-way and relocation of the 69KV transmission line. It is both physically and economically feasible for Col -Ute to place their proposed 138KV line and White River Electric Association's 69KV line onto a common double wooden "H" frame. We are actively pursuing relocation onto Lot PP approximating the bottom of the bluff and south of Lots JJ, KK and II. There will be sufficient access to this easement as we will be willing to provide access points through our residential lots (LL, MM, SS, and TT) and industrial lots (KK, JJ, II). Another utility problem associated with the Bookcliff PUD involves Public Service Company of Colorado (PSCC). PSCC is in need of upgrading their Ramsey Gulch substation to provide service to the Rifle area. As now located, between commercial lots UU and WW, we do not feel the enlargement of this facility in its present location is in the best interest of the City of Rifle, Garfield County or the Bookcliff PUD. SUITE 207 VILLAGE PLAZA GLENWOOI) SPRI NGS, COLORADO 81601 303.945.8676 Garfield County Planning Department November 18, 1981 Page 2 The City of Rifle has passed a resolution to insure the develop- ment of a regional shopping center in this vicinity within the next three years. That fact, along with the proposed 80' right- of-way for County Road 346 makes the existing site decidedly unfavorable for an increase in size. As agents for the owners of the Bookcliff PUD, we feel an upgrade in PSCC Rifle substation should be looked at as a viable alternative. We are also prepared to sell all or a portion of Lot FF in our industrial area adjacent to Col -Ute as an alternate site. As you can see on both maps transmitted herein, Col -Ute, PSCC, Holy Cross, Mountain Bell and Cascade Natural Gas traverse our site. With the removal of the Ramsey Gulch substation to another site, the PSCC line meandering across the project could be relocated to a more advantageous position for access and maintenance, into an easement we would dedicate along County Road 346. Since both PSCC and HCEA will be providing electric service to our development, I feel Garfield County can take an active step towards the consolidation of utilities by recommending the relocation of Holy Cross and PSCC into common easements where applicable. I will be attending the public hearings for Planning and Zoning Commission and County Commissioners. Hopefully, by working together, we can achieve a solution to the benefit of all parties involved. Any questions you have may be directed to me at Claycomb Engineer- ing. Ernest J. Fregg .o, P.E. Project Manager EJF/vsg cc: Don Macy, Cambridge Rifle Properties United States Department of the Interior BUREAU OF LAND MANAGEMENT Glenwood Springs Resource Area P.O. Box 1009 Glenwood Springs, CO 81602 November 5, 1981 Davis Farrar Garfield County Planning Dept. 2014 Blake Ave. Glenwood Springs, CO 81601 Dear Davis: IN REPLY REFER TO 2850 2880 7-162 The following comments are provided in response to your request for comments on the draft zone district definition of utilities. Powerlines By using a definition of electric lines based partially on voltage, and partially on use, the definition between a transmission line and a distribution line has become unclear. The definitions overlap, so that a 138 kV double circuit H -frame structure providing loop feed service to several industrial consumers becomes a distribution line, while a short, single pole 115 kV line circumventing a town becomes a transmission line. The former becomes a use by right, the latter a special use. The impacts of a powerline are directly related to structure type, size, and location. Regardless of its purpose in providing for industrial or residential consumers, the impact of a 115 kV "transmission" line is the same as a 115 kV "distribution" line. We would recommend the following: a) Take out the voltage requirements in the definitions of electric transmission lines and distribution lines. b) Include under special uses: All electric transmission lines 115 kV and above All electric distribution lines 115 kV and above c) Include under uses by right: All electric distribution lines less than 115 kV All electric transmission lines less than 115 kV An alternative solution, though less flexible, would be to define all powerlines of 115 kV voltage or above as transmission lines, and all powerlines less than 115 kV as distribution lines. Provided that all 115 kV and above powerlines are included under special uses, we feel that all uses have been properly designated. GARFIELD COUNTY PLANNING DEPARTMENT GLENWOOD SPRINGS, COLORADO 01601 2014 BLAKE AVENUE PHONE 945-8212 November 5, 1981 George Vonesh, Jr. Public Service Company of Colorado 550 15th Street Denver, CO 80202 Dear Mr. Vonesh, Garfield County has recently received application from Colorado Ute for construction of a 138 KV transmission line from Rifle to Parachute, Colorado. This county is very concerned over proliferation of transmission lines which could result from oil shale development. We are aware that Public Service Company has a 215 KV "H" frame transmission line on the south side of the Colorado River from Rifle to Parachute. We would like to know if Public Service would be interested in sharing the existing facility with Colorado Ute for service to Parachute/Battlement Mesa. We would also like to know if a 138 KV line could be hung on the existing structures and what modifications would have to be made to the structures to accommodate an additional line. We will be requesting all utility companies with proposals in the county to take a serious look at long range consolidation of transmission facilities and sizing of facilities so they may be upgraded to meet future power demands. We are very willing to work with all of the utility companies to see that their needs are met as well as the county's. If you have any comments or concerns, please feel free to contact this office. Sincerely, DSF/lw Davis S. Farrar Planner GARFIELD COUNTY Board of County Commissioners P.O. Box 640 Glenwood Springs, Colorado 81601 Telephone (303) 945-9158 FLAVEN J. CERISE JIM DRINKHOUSE LARRY VELASQUEZ November 5, 1981 James Summers Public Utilities Commission State Services Building 1525 Sherman Street Denver, CO 80203 Dear Sirs: We are writing to inform you that Garfield County has recently received application from Colorado Ute to construct a 138 KV power transmission line from Rifle to Parachute, Colorado. This county requires a special use permit which includes a public hearing prior to the initiation of any construction of this type of facility. The County Planning Department is in the process of reviewing the application and no action has been taken at this time. It is anticipated that the application will be reviewed by the County Planning Commission early in December with a public hearing to follow shortly thereafter. Garfield County is seriously concerned over proliferation of power transmission lines. There is a great potential for a proliferation of transmission lines here as a result of oil shale development. The County, through its special use review, will require consolidation of lines and sharing of facilities where possible and where reliability will not be impaired. We request that the P.U.C. refrain from taking action on this proposal until the County has completed its review process. We would like to work with the P.U.C. to share information or answer questions. We appreciate this opportunity to relay our concerns. If you have any questions or comments, please contact this Board. Sincerely, Larry Velasquez Chairman, Board of County Commissioners Pipelines Some high pressure wells may not require pumping or compressor stations for a considerable distance from the well head. Would such a line still be a gathering line? We would suggest that you do not use loop stress as a limitation. The impacts of a pipeline are more closely related to the length and width of a right-of-way (though these factors are dependent upon the purpose and size of a pipeline). If the definition could be tied more closely to the purpose or use of the pipeline, the delineation would be clearer. We feel that all pipeline uses have been properly designated as special uses or uses by right. All other definitions appear to us to be clear and easily understood. It is apparent that someone has put a considerable amount of effort into this project, and we very much appreciate the work that has gone into coordination and cooperation with all concerned parties. Thanks for the opportunity to comment. If we can be of further assistance, please contact us. Sincerely, \JA\q for___.) Al red W. Wright Area Manager l z O V) ✓ ) 1-4o O CC O v) J W H (,) 1-"- H LL _.J Q it 1— Lu '0 1--- U1-- r1 V) -J CO LU a1— Ca UJ J LL 7 0 1-4 _U -J 0- a. w d w U F--1 n Z O APPLICATION 2C 1-- Z CO • z C) w�cr Z >- 1- - Z (t) (1) 0 O ri < Z 1 1--- 1--1 O 1- W W o--1 V) /-1 H 0 U.1 Z 0 --1 4 H J V) W W 1- r! 1-1 _ -.J U.J CD 1- w 1- W1-- V) < X 0 V) 0 CO Z Q Z 1--( 1— Z w< V1) U 0 U- V) J Z. •rC 1- O -J < I--1 1--1 U W W LL 1-1 CO 1-4 V) r-: 0 V) H H CO -J V) ►-+ CJ _Z'0 -J ^ V)W>-WCC11-0 1 OLL. 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TO ALL INTERESTED PERSONS, FIRMS OR CORPORATIONS: Ei O LU C •+r.) iJ (. ►--1 f0 1- u Z •' A +, cti C C r- ai • I-) .�L •0 MI ' >4 •r 0 -0 r 4-) CI) -b L =L ca_ In C CU 4-▪ 1 N r 0 3 O ; }• H filed c 0) OJ .0 Colorado -Ute Electric Association, Inc. P. 0. Box 1149 Montrosc, Colorado 81402 Telephone (303) 249-4501 Ms. Terry L. Bowman, Assistant Planner Garfield County Planning Department 2014 Blake Glenwood Springs, CO 81601 Dear Ms. Bowman: TWX 910-929-6924 October 26 7'1.981 Rifle -Battlement Mesa 138 kv Transmission Line Garfield County - Special Use Application OCT271,9 6. ktio Neil Marsh and I appreciated the chance to visit with you on Tuesday, and to present Colorado-Ute's Special Use Applica- tion for the proposed Rifle -Battlement Mesa 138 kv Line. It is our understanding that you will schedule a hearing date, possibly by the end of this week. <it is our further understanding that the utility siting guidelines that are currently being drafted by the Garfield County Planning Staff will not be applied to Colorado-Ute's Special Use Permit Application t I look forward to working with you over the months to come. gij 1(." y �j f I can provide any assistance, please do not hesitate to call. Very truly yours, iUc iiihlapmcvyk. Mary M. Chapman Community Relations Specialist MMC/dcm �e.2)5c_ Colorado -Ute Electric Association, Inc. P. 0. Box 1149 Montrose, Colorado 81402 Telephone (303) 249-4501 TWX 910-929-6924 October 20, 1981 HAND CARRIED Mr. Larry Valasquez, Chairman Garfield County Board of Commissioners P. O. Box 640 Glenwood Springs, CO 81602 Dear Mr. Valasquez: Application for Special Use Permit Proposed Rifle -Battlement Mesa 138 kv Transmission Line Colorado -Ute Electric Association, Inc. (Colorado -Ute) is a rural electric generation and transmission cooperative associa- tion, owned by and serving the total electric power needs of its fourteen retail distribution cooperative members. One of Colorado-Ute's member systems, Holy Cross Electric Association, Inc. (Holy Cross) will be serving the new Town of Battlement Mesa. In order to fulfill its statutory and contractual responsibilities to meet the electrical needs of Holy Cross, Colorado Ute proposes to construct a 138 kilovolt transmission line between Rifle and Battlement Mesa and a 138-25 kilovolt Substation at Battlement Mesa. This letter transmits Colorado Ute's Special Use Permit Application for this transmission line and substation. These facilities are needed for the following reasons: 1. Holy Cross presently serves the Battlement Mesa area by a 25 kilovolt distribution line originating at Colorado- Ute's Rifle Substation. Development now underway at Battlement Mesa will increase the loading on Holy Cross' existing facilities such that they will be near or at capacity during the winter of 1982. Completion of the proposed transmission line will allow Holy Cross to meet its increased electric loading requirements. Mr. Larry Valasquez -2- October 20, 1981 2. Alternatives to the proposed line, including constructing additional distribution lines, or tapping the Public Service Company of Colorado (Public Service) 230 kilovolt line have been considered. Multiple distribution circuits would be required to equal the capacity of the proposed 138 kilovolt line. Energy losses are generally much higher on lines of lesser voltage. Because of the higher cost of a 230 kilovolt -25 kilovolt stepdown sub- station, it is not practical to connect to the existing 230 kilovolt line every few miles to serve intervening loads. Further, Public Service may uprate their existing 230 kilovolt line for 345 kilovolt operation, which would further increase the cost of adding such substations. Presently, there is no subtransmission system in the 115/138 kilovolt range between Rifle and Battlement Mesa. Construction of the proposed line will make it possible to create a subtransmission system to serve the Battle- ment Mesa area, as well as other loads that may require service, such as the proposed Rifle Ski Area. In addition, the proposed 138 kilovolt line is capable of providing a backup source of electrical power in the area. Uprating of the Public Service 230 kilovolt line would probably require that it be temporarily removed from service. If interconnected to the Public Service system, the proposed 138 kilovolt line could serve the area while this work is being done. 3. The established subtransmission voltage in northwestern Colorado is 138 kilovolts. The Western Area Power Administration established a 138 kilovolt transmission lines in northwestern Colorado in the early 1960's. Shortly thereafter, Colorado -Ute constructed a subtrans- mission system from Hayden to Montrose which has the capability to operate at 138 kilovolts. The Hayden - Rifle portion of this line is currently operated at 138 kilovolts including a major substation at Rifle. In order to increase its transmission system capacity, Colorado -Ute plans to operate the Rifle -Grand Junction portion (presently operated at 115 kilovolts) at 138 kilovolts in the near future. Furthermore, a number of additions to this system are in the planning and devel- opment stages. The White River Electric Association, Inc. (White River) recently completed a 138 kilovolt line to the C -b oil shale tract from the Meeker Switch- ing Station. The Moon Lake Electric Association is serving the C -a oil shale track at 138 kilovolts. The proposed RiEle-Battlement Mesa 138 kilovolt line would be Mr. Larry Valasquez -3- October 20, 1981 an important link in a system capable of serving new loads in the Garfield and Mesa County areas west of Rifle. Reasons for proposal are set forth in more detail in the enclosed impact statement for the proposed transmission line, entitled Borrower's Environmental Report. Two (2) copies of the Borrower's Environmental Report, which include vicinity maps are enclosed, in compliance with Section 5.03.07 of the Garfield County Zoning Resolution. In addition, in compliance with Section 9.03.01 of the Resolution, one set of USGS quad sheets assembled on cardboard backing with a clear mylar overlay attached, showing the route of the proposed line, the names of the owners of the property crossed by the line, and other features, is also enclosed. For your convenience, four blue -line prints made from the mylar map are enclosed as well. The line route is depicted as precisely as possible at this time. Landowner negotiations may result in some minor rerouting. You will be promptly notified of any change which may affect a new property owner. Also enclosed is an address list of the affected owners, a completed application form for a special use 'permit for the proposed 138 kilovolt line including a practical description of the proposed route, and Colorado-Ute's check number 127954 dated October 6, 1981, in the amount of $500.00, as required by Section 9.03.02 of the zoning resolution. Please let me know if further information is required or de- sired. I will be calling the Garfield County Planning Department soon to discuss whether a meeting to review this application is desired. JRM/dcm Enclosure cc: ven Cerise Jim Drinkhouse Davis Farrar (w/o enc) 11 Very truly yours, ohn R. McNeill, Manager Right -of -Way & Land Acquisition SPECIAL USE PERMIT r4 0 o m o O 0 O rl co M U ri 0 0 ua N •H1 U O 0 z R+ H U C •?ri z H04 m 0 HV 0) H r1 CI H 0 H u m M W 0 0 0E 4-S4-) O 4J 0 o Z m 0 r0 a H •• b E S-1 al 0")0 0 N 2j H +1 0 0 Wpl N U X i v Id o GI O H Lk ri 0 I-1 0 0% CO r CO U w +-1 o H 0 S4 O 44 +J N m q 0 • r-1 O 0 q 0 N 4J O = 0 c HI (0 to r E U VI (0 Cl In CU L U (0 G -c 0 14 o -l: Q VI s October 2 •1 Legal Description Requirements: Road access tn ai Ol p. 4J b O1 •0 0' v •r r0 0J •-111 (0 01 01 • r (0 4-14J 4-J 01 7 N C . !0 v U (0 C N •C C'cr.c E .c 0 L .0 • 'N O •r 4_,T).r) O +j b Lv 4- sr.0 o L v al .n 4- O 4-+ N "5-' L L O C N d •N N v •r L M U 4- CU O r 0 r CO O O O til r "' 0 al L +� L r O U •001 alC .0L 4.1 0.r O V 4-, V•rp 0 L > 0 ro - C •0 -0 r- 0.5 ° O N oo UI • 0 O• V�Q��:b ro ..> 3 c 4-0. d U D O L L C M L I • .OSE•r 0 0 0 0. .N c 0- ->, 4' U 'rc 0 10 h 0 J -I O1 100. +! 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Q 4 -4 -EI r C LvO 0 dC 00 44-, L r rU O •O Cl VI �-+ (0 O• 0.•r - 'r c v 5 3 >•1 0 4- v L (0 0 r • E c N L T7 r O 0- 0 ,N,r 4� O 04.1 v O U C 0 0 0 4-0 7 E U V CU in f- 'N 4- d 0 r U 0 0 U 4 0 VI O L OJ CO O •r N 0.0 L. 01 E OJ L 4) d o• E v E 0 •r 4-) v A 4-3C 7 +,U C 0 •0 0 4) co 0 5- -0 U(0 L (0L (0 •r r •r L .1_.)O � N C E S' O L 0 C d C +-1 r U V }- .t.- •r 4- C O r•r 00 N O.4- O L > T •r CU + Oco n cu vv> crosc Cr "' (0r •r 3 C "O •r CU C -C , j sr - 0 OJ VI O. I S. U> MI L ro CJ V(0 O1 7 0 .O (0 •r O U •4- O E •0 VI E 5.n 0 4- 4J 014- CLI0 O E c L L d 01 0 In VI •r O CJ C 0 .n r- O• L 0' C O 0 0- 0 C v LLr O r '- .0 r L N O 4J 0.. NJ0 0 p•4- (0E •0 (0 U1 C •r L "�>y. 0. ro C E 'O In vi C N L 'O - r r 4-• L O+-5 r V1 Q 3 C Ol y r +� 4 4- VI t � _ L Ill -0 O L +> > +1U 4- 0 0' .r C 0. VI O +' 4- C 0. C 0 •r 1] U O >� U O• •r •r C 3 .O 0 ro VI L C (0 .i-• 4� L 0 C(0 O -c ro O 5- 5- +J 4- d >> L CU r L 0 U C O U 0. o OU O U O E d pU U r v U CI) •r •r •r v N U C 4-1 •r •r 0 OL sr- CO U 4r Cl L a. r OU 4 ,U ' r d OJ Nnf0.1 d¢ _JQ < Q az 4-' l ro .0 Q E Vl 0 (13 VI 4-- i-1 L to .--IN M d' to N - CO -J (See attached Line List) +-1 C 0 C 0 :-• . 1- c 0 d o •D r CO O C C r0 (0 4-5 '0 5- 0.1 v ro VI d 0 0 0. S- O O 0. L 0.L O 0 C >, (0 c 4--) 0 c v In 4-' >) C C L E (0 v C c > N 0 O 4-U S-..0 0E S- E •r O > r >J ON L 4- -E c_ 0 •r 0 4-J .0 0 r N r • O 01 (0 0 C 0) N r L (0 0 O sr - L O L V N•r- 0. 0.al 3 E E4) best of my knowleye_ correct to the N •r information 0J 0 L C • .0 U (0 0 (0 (0+) V 0 0 0 L U z H • 0 H E H H 0 0) 0) U H H U W W W E i 0 0 O 0 0 U Practical Description COLORADO -UTE ELECTRIC ASSOCIATION, INC. Proposed Rifle -Battlement Mesa 138 kv Transmission Line The proposed transmission line lies south of the Colorado River and Interstate Highway and connects the existing Colorado -Ute Rifle Substation to a new proposed Battlement Mesa Substation south of Parachute, Colorado. Total length of the proposed line is approximately 18 miles. The proposed line is more specifically described as follows: A 125 foot wide right-of-way and the area necessary to locate guy wires beginning at the existing Colorado -Ute Rifle Substation located in the SW1/4 SE1/4 of Section 14, Township 6 South, Range 93 West, 6th P.M., Garfield County, Colorado, THENCE southerly approximately one-half mile into Section 23, THENCE Southwesterly through the W1/2 of Section 23, Section 22, the S1/2 of Section 21, the NW1/4 of Section 28, the N1/2 of Section 29, Section 30, Township 6 South, Range 93 West, THENCE continuing Southwesterly through the S1/2 of Section 25, SW1/4 of Section 26, Section 35, NW1/4 of Section 36, SW1/4 of Section 34, Township 6 South, Range 94 West, THENCE continuing Southwesterly through Section 3, SE1/4 of Section 4, Section 9, Section 8, Section 7, Township 7 South, Range 94 West, THENCE continuing Westerly through Section 12, Section 11, Southwesterly through the NW1/4 of Section 14, Section 15, SEI/4 of Section 16, Section 21, Section 20, Section 19, Township 7 South, Range 95 West, THENCE continuing Westerly into and terminating near the center of Section 24, Township 7 South, Range 96 West. RIFLE -BATTLEMENT 138 kv TRANSMISSION LINE Landowners 1. Cambridge Rifle Properties 2. Loren Jewell and Alvina M. Jewell 0547 352 Road Rifle, CO 81650 625-2588 3. Grass Mesa Ranch P. 0. Box 1599 Aspen, CO 81612 4. Pierce Mangu.rian 7101 Road 117 12. Milton Oliver Roots 11491 Ham Lane Lodi, CA 95240 13. Wayne Payton 1820 Iroquois Road Pueblo, CO 81001 14. George Gardner and Sharon J. Gardner 1236 302 Road Parachute, CO 81635 285-7648 Glenwood Springs, CO 81601 5. Verner Donn Mead and Elma M. Mead 212 Glendale Drive Hot Springs, AZ 71901 6. Felix S. Sefcovic 6516 County Road 301 Parachute, CO 81635 625-1918 7. Merlin T. Wagner and Brenda F. Wagner P. 0. Box 1472 Pascagula, MS 39567 8. John Colin Clem and Joseph H. Clem 2862 310 Road, Box 30 Parachute, CO 81635 285-7613 9. Morrisania Ranch Donald R. Burtrand and Elizabeth Burtrand 0268 338 Road Parachute, CO 81635 285-7685 10. Lena Blanche Wehr Rt. #1, Box 17 Parachute, CO 81635 11. Kenneth G. Hagen and Christee M. Hagen 7825 Kimberly St. Commerce City, CO 8022 287-0827 15. Skyline Oil Corp. 2000 University Club Bldg. Salt Lake City, UT 84111 16. Mona G. Gardner 0134 County Road 303, Box 16 Parachute, CO 81635 285-7604 17. Tosco and Battlement Mesa Corp. c/o Exxon Corp. P. O. Box 53 Houston, TX 77001 18. Cache Creek Venture P. O. Box 2694 Grand Junction, CO 81502 19. Rifle Ski Corp. P. O. Box 472 Rifle, CO 81650 625-1533 20. John W. Savage 1122 293 Road Rifle, CO 81650 625-1673 21. Brown Rifle Ranch Co. 2100 Colorado State Bank Bldg. 16th & Broadway Denver, CO 80202 WORKING PAPER RESTRUCTURED RIFLE -SAN JUAN 345 -KV TRANSMISSION LINE NORTHERN SECTION 1. INTRODUCTION In February 1982, the Colorado Public Utilities Commission (PUC) denied Colorado-Ute's application for a Certificate of Public Convenience and transmission line from Necessity for a double -circuit 345-kv Rifle, Colorado, Based on recommendations by the PUC and posed project was restructured, adding a Service Company of Colorado), a new load to San Juan, New Mexico. other parties, the pro - new participant (Public center (Grand Junction), and reducing the size of the line to single -circuit 345 kv. In light of the restructured project, Colorado -Ute reevaluated the alternative corridors in the northern section of the line and eliminated from additional study the original proposed corridor, the Rifle -North Fork -Delta -Montrose Alternative. Two other gen- eral corridors (including eight specific corridors) for the northern section were retained for detailed evaluation. The purpose of this working paper is to describe and document Colorado-Ute's preliminary screening of the general corridors for the northern section of the proposed restructured line. The prep- aration of this paper was recommended by the Glenwood Springs Resource Area of the Bureau of Land Management. -1- 2. HISTORY The following information on the proposed Rifle -San Juan Line clarifies certain proiect constraints and their implications with regard to corridor selection in Mesa, Garfield, and Delta Counties. The Rifle -San Juan Proiect was originally proposed as a double -circuit 345-kv transmission line to extend from Rifle to San Juan, New Mexico. It was to be iointly owned by Colorado -Ute and the Western Area Power Administration (Western). In February 1982, the PUC denied approval of the proiect. One of the apparent concerns was that the northern section of the line, as it was originally proposed, did not pass near the arowina electrical loads in the Parachute and Grand Junction areas. Based on a PUC request for coordinated planning among elec- tric utilities in Garfield, Mesa, and Delta Counties (copy attached) and the Commission's subsequent denial of a Certificate of Public Convenience and Necessity, Colorado -Ute, Western, and Public Service Company of Colorado (PSCo) developed a new plan. On August 6, 1982, Colorado -Ute filed this plan with the PUC in the form of an application seeking a Certificate of Public Conven- ience and Necessity for a restructured, single -circuit Rifle -San Juan Line. The segment of the line between Rifle and Grand Junc- tion would be iointly owned by Colorado -Ute, PSCo, and Western, -2- with Colorado -Ute and Western each paying 37 1/2% of the cost, and PSCo, the remaining 25%. For the remainder of the line, Colorado - Ute and Western would each pay half of the cost. The new line would satisfy Colorado-Ute's needs for bulk electrical transmis- sion to its southwestern Colorado members, PSCo's needs for addi- tional transmission capacity to its Grand Junction load center, and Western's need for additional regional bulk transmission capacity. PSCo's existing 230-kv line between Rifle and Grand Junction would remain in place, serving as the Colorado River Valley's suhtransmission system. -3- 3. ROUTING CONSTRAINTS Numerous constraints are weighed transmission lines. Some of the more to determine the routing of important factors are: 1. The utilities participating in the line and their respec- tive needs; 2. The locations of the load centers which must be connected; 3. The need to develop an integrated, efficient, and reli- able transmission network; 4. The minimization of both capital and operatina costs, aenerally done by minimizing line length and avoiding areas which require special, expensive enaineerina, design, and construction; and 5. The need to avoid or minimize adverse impacts on land use and the environment. The relative importance attached to each constraint depends on the unique situation of each of PSCo as a participant in the line. For example, the addition Rifle -San Juan 345-kv line prosect has added a new load center and caused the proiect to be reevalu- ated with additional consideration being given to PSCo's needs. A revision of the corridor analysis for the northern section of the line has resulted. A summary of the analysis is presented in the next section. -4- 4. CORRIDOR AND ROUTE SELECTION Three corridors for the northern section of the proposed line were studied in the 1981 Environmental Analysis prepared for the proposed double -circuit line. The first corridor generally paralleled the Western 230-kv line from Rifle to the North Fork area and then went west to Delta and south to Montrose. It was Colorado-Ute's preferred corridor in the original application. The second corridor generally followed the Colorado River Valley between Rifle and Grand Junction and then proceeded south to Delta and Montrose parallel to Colorado-Ute's existing 115-kv line. It is Colorado-Ute's present preferred alternative. The third corridor generally followed Colorado-Ute's 115-kv line for its entire length between Rifle and Montrose, proceeding south from Rifle, west through Collbran to Grand Junction, and then south to Delta and Montrose. Colorado -Ute has never considered it a preferred route. Upon PUC denial of the original project and the subsequent development of a new transmission plan for the area, the three original corridors were reevaluated in light of new project constraints. The evaluation resulted in a decision to eliminate the original preferred corridor from further consideration. The two remaining corridors will be analyzed further in the Supplement to the Environmental Analysis and the Supplemental Draft Environmental Impact Statement (SDEIS). -5- GENERAL CORRIDOR A: ELIMINATED FROM FURTHER STUDY Rifle -North Fork -Delta -Montrose plus Delta -Grand Junction Extension General Corridor A extends south from Rifle to the Paonia area, generally paralleling the Western 230-kv line. From Paonia the line extends west to Delta and then south to Montrose. Several specific variations were considered in the 1981 Environmental Analysis, although all of them were contained in the general corridor described above. Corridor A was Colorado-Ute's preferred corridor in the orig- inal proposal for the double -circuit Rifle -San Juan Line, primarily because it was the most direct route between the Rifle and North Fork load centers. At that time, PSCo was not a participant in the project, so there was no need for the line to be routed to the Grand Junction area. In order to avoid a proliferation or duplication of transmis- sion facilities in northwestern Colorado, the Public Utilities Commission, in September 1981, indicated that future proposals for facilities in Rio Blanco, Garfield, Mesa, and Delta Counties must demonstrate a "coordinated plan among all utilities which will provide service to all Colorado ratepayers at the lowest possible cost." In addition, the PUC Hearing Examiner and other parties have noted the need to coordinate the Rifle -San Juan line with PSCo service needs in the Grand Junction area. Therefore, PSCo became a participant in the Rifle -San Juan proiect and assisted Colorado -Ute and Western in developing a new plan, which was sub- mitted to the PUC in August 1982. The need to serve PSCo's load -6- in the Grand Junction and Colorado River Valley areas became a major constraint in routing the northern section of the proposed line. Implementing the Corridor A alternative would require that a new line be constructed from either Rifle or Delta to Grand Junction, in order to meet PSCo's need to serve the Grand Junction area. The line likely would be 230 kv. Simply extending PSCo's existing Rifle -Cameo 230-kv line into Grand Junction is an unacceptable alternative because it is a radial line and would not provide for a second method of transmitting power to Grand Junction. An extension from Delta, at approximately 26 miles and $6 million, would be shorter and cheaper than an extension from Rifle. However, it would not allow for connection of possible future oil shale loads in the Colorado River Valley, as would a line from Rifle to Grand Junction. Corridor A is approximately 30-40 miles longer than Corridors B and C and would cause considerable additional environmental impacts. See Table 1 for a comparison of the three corridors. Corridor A would cross more than twice as much prime farmland than either Corridor B or C. It would also cross nearly twice as much irrigated cropland as Corridor B, though less than Corridor C. Two more river crossings and at least three more highway crossings would be necessary for Corridor A. In addition, Corridor A would require establishing nearly 10 more miles of new transmission line corridor than Corridor B, and would cross 20 more miles of conifer -aspen vegetation than either other alternative. -7- Table 1 RIFLE -SAN JUAN 345-kv TRANSMISSION LINE NORTHERN SECTION GENERAL CORRIDOR COMPARISON (Miles) General Corridor A* General Corridor B General Corridor C Total Length 145.1 Vegetation Conifer -Aspen Pinon-Juniper Saltbrush-Greasewood Mountain Shrub Sagebrush -Grassland Barren Agricultural Land Use Prime Farmland Irrigated Cropland Nonirrigated Cropland Wildlife 21.5 27.7 45.9 4.5 5.7 11.6 15.4 2.7 Mule Deer and Elk Fawning 14.2 and Calving Areas Mule Deer and Elk Critical 25.8 Winter Range Bald Eagle Concentration Areas 38.6 107.5 116.8 1.0 54.9 30.3 4.3 4.6 8.9 3.5 17.6 40.0 39.6 lisual Absorption Capacity Low 123.2 91.4 Medium 18.5 11.1 High 3.4 5.0 ;rosion Hazaro 1.5 25.0 30.3 20.3 2.5 4.6 26.9 5.7 5.8 42.9 23.1 105.5 11.3 Low 64.2 38.9 38.1 Medium 80.9 68.6 78.7 High -- teclamation Potential Poor 26.2 31.3 31.9 Fair 84.9 53.6 78.8 Good 34.0 22.6 6.1 ,ength of New Corridor Established 44.1 36.7 -- Liver Crossings 3 1** 1 Iighway Crossings 6 2** 3 *Includes 345-kv line from Rifle -North Fork -Delta -Montrose, plus 230-kv line from Delta -Grand Junction. **Assumes route south of the Colorado River. In light of the considerably longer length of Corridor A, the resultant greater environmental impact, and the reduced capability of serving PSCo's needs in the Grand Junction area, Corridor A has been eliminated from further detailed consideration. -9- GENERAL CORRIDOR B Rifle -Grand Junction -Delta -Montrose General Corridor B extends from Rifle to Grand Junction generally parallel to the Colorado River, and then from Grand Junction to Delta to Montrose along Colorado-Ute's existing 115-kv line. Several specific corridors within this general corridor satisfy the constraints identified for this project, as listed in Section 3 of this Working Paper. This Corridor enables a substa- tion site in Grand Junction; thus Public Service Company's needs can be met without building another transmission line. This alternative also satisfies the PUC's requirement for a coordinated system. In addition, General Corridor B allows for a connection of PSCo's 230-kv system with the Rifle -San line at several points along the Colorado River, such direct Juan 345-kv as Parachute, DeBeque, or Cameo, negating the need for additional lengthy trans- mission lines. Such connections may be desirable in the future if oil shale loads grow. A general environmental comparison of Corridor B with the other corridors is presented in Table 1. Colorado -Ute therefore designated General Corridor B for further study in the Supplement to the Environmental Analysis and SDEIS. Through discussions with BLM and other affected parties, Colorado -Ute has indentified 4 specific corridors within the General Corridor B for detailed study. The section extending from Grand Junction to Delta to Montrose is the same in all cases. -10- The four specific corridors are: 1. Parallel the PSCo 230-kv line its entire length to south of Cameo, then proceed south to the intersection with the Colorado -Ute Collbran-Grand Junction 138/115-kv line and parallel that line to Grand Junction; 2. Proceed west from the Rifle Substation, cross the Colorado River and I-70 west of Rifle and parallel I-70 on its north side to lust east of DeBeque, cross 1-70 and the river again and follow Specific Corridor 1 for the rest of the line; 3. Proceed southwest from the Rifle Substation at the base of the foothills lust north of the white River National Forest until Battlement Mesa, from which point the line would parallel the PSCo 230 line and proceed the same as Specific Corridor 1; and 4. Proceed southwest from the Rifle Substation at the base of the foothills just north of the White River National Forest to south of DeBeque, where the line would loin the PSCo 230 line and proceed the same as Specific Corridor 1. One other alternative corridor, continuing north of the Colorado River west of DeBeque and into PSCo's Cameo Generating Station, was determined not feasible. Routing around DeBeque and its adioininq farmlands would be difficult and lengthy. The high terrain lust -11- north of DeBeque Canyon is extremely rugged and has very little access. BLM's Little Bookcliffs Wilderness Study Area effectively blocks a transmission corridor approach to Cameo from the north. For these reasons, this specific corridor was eliminated from further study. Each of these four corridors will be fully addressed in the Supplement to the Environmental Analysis and the SDEIS. The approach to the analysis is discussed in Section 5 of this Working Paper. -12- GENERAL CORRIDOR C Rifle-Collbran-Grand Junction -Delta -Montrose General Corridor C proceeds south from the Rifle Substation generally paralleling the Colorado -Ute 138/115-kv line through Collbran to Grand Junction, and then the 115-kv line south to Delta and Montrose. This general corridor meets the constraints for routing the Rifle -San Juan Line. It serves the same load centers as the Corridor B; it generally avoids environmental constraints, and parallels existing lines for its entire length. On the surface, it has two drawbacks; it is about 10 miles (10%) longer than General Corridor B and it would not allow a direct connection of PSCo's 230-kv line with the 345-kv line in the Colorado River Valley without lengthy additional transmission lines. At some time PSCo may desire to link the 345-kv and 230-kv systems at Parachute or DeBeque to support the oil shale loads which are now served solely by the 230-kv system. However, since it meets the present constraints for the Rifle -San Juan Line, General Corridor C is retained as an alternative for full analysis in the Supple- ment to the Environmental Analysis and the SDEIS. A general environmental comparison of Corridor C and the other corridors is presented in Table 1. -13- Four specific corridors within this general corridor are investigated in the Supplement to the Environmental Analysis and Draft EIS. They are all very similar, the only difference being the way they proceed south after exiting the Rifle Substation. Each would follow either the existing Colorado -Ute 138/115-kv line or the existing Western 230-kv line; the variations are determined by how far the route would parallel one or the other of the existing lines. Once turning to the west, Colorado -Ute 138/115-kv line past Collbran then the Colorado -Ute 115-kv line south to -14- all would parallel the to Grand Junction, and Delta and Montrose. 5. ANALYSIS For the Supplement to the Environmental Analysis and the SDEIS, the environmental information is being organized into a set of environmental profiles which indicate: o construction and maintenance limitations o erosion hazards o reclamation potential o geologic hazard potential o vegetative communities o threatened and endangered fauna o large mammals o human resources o cultural resources o visual absorption capacity o visual sensitivity c land ownership o mineral resource areas o agricultural areas o commercial forests o recreational resources o adjacent existing lines o adjacent highways -15- These profiles have recently been completed. The information is being analyzed using an impact evaluation methodology designed to evaluate the advantages and disadvantages of each corridor. The method is an adaptation of a similar procedure used by the U.S. Bureau of Land Management (Richfield, Utah District) in the Moon Lake Proiect. The methodology allows numerical values to be derived for the overall potential impact along each route. The impact scores which result are then used to make direct compari- sons of parameters between alternative corridors. Once these analyses have been performed, other factors such as engineering constraints, costs, public, and agency input, will be incorporated into the decision-making process and a preferred corridor will be selected. -16- ^t ..•- - PU"oMISSIO,N ai11D__oar;.•nen(drRzgulatbiy CZencies `r_.v F.7:e.Ser:•ite5c.•ildi-� r� . 1523 Sherman Street " Denver, Colorado 80203 :,-•.03.13 3 it -en -r-Y• , .. J a V TATE OF -11,,,C,1 29. :,mac.•• John J. Bugas, General Manager • .• - Colorado -Ute Electric Association, Inc. P. 0.• Box 1149 _ Montrose, CO 81401 Dear Mr. Bubas: Richard D. Lamm. Governor . WeUineton L Webb, :. Eaeculi,e Dire^.or .... comAissioNEas: • Edvihe S. bluer, ▪ Daniel F- Muse L Duane Woodard -[ Harn & Cailiean. p - Executive Secretary . Adminlnraiion ()03) 364 Transportation (1031 ese Fixed U:ihties {303) 86E - Counsel (303) :So -3R5 As you know, the Commission has had a continuing concern with the construction requirements of its utilities, particularly as they are impacted by the energy related developments in the western Colorado Counties of Rio Blanco, Garfield, Mesa and Delta. ' . . . . It appears that there exists the possibility of uncoordinated planning for constrt tion of electric facilities in these counties. This potential problem is a matter of great concern to the Commission as duplication of facilities, and therefore expenditures for construction, would create a burden for existing ratepayers. Therefore, the Commission is requesting that the management of the utilities • operating in these particular counties of.. Western Colorado file applications for._^ Certificates of Public Convenience and Necessity for all generation, and for any transmission lines or transmission substations built in these counties. -.Applica- tions should be filed for new construction or for the upgrading or Uprating of existing facilities, for initial or -possible ultimate operation at a voltage level of,115 KV or greater. •The Commission will review these applications with the utmost care for.a demonstrated coordinated plan among all utilities which will . provide service to all Colorado electric ratepayers at the lowest possible cost. Very truly yours, EDYTHE sJJP1iLLER, CHAIRWOMAN O:•NIDE t. MUSE, CO MiSSIGNER L. DUANE WOODARD, COMMISSIONER • CC: Rio Blanco County Comalissioners Garfield County Commissioners tee