PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON At a session of the PUBLIC SERVICE COMMISSION OF WEST VIRGINIA in the City of Charleston on the 13thday of February, 201 5. CASE NO. 14-1221-E-CS MOUNDSVILLE POWER, LLC, Buffalo, New York. Application for a Siting Certificate to Authorize the Construction and Operation of a Wholesale Electric Generating Facility and Related Transmission Support Line of Less Than 200 kV and associated Interconnection Facilities in Marshall County, West Virginia COMMISSION ORDER GRANTING A SITING CERTIFICATE FOR A WHOLESALE ELECTRIC GENERATING FACILITY IN MARSHALL COUNTY This Order addresses the application filed by Moundsville Power, LLC (Moundsville Power) for a Siting Certificate to construct and operate a natural-gas fired wholesale electric generating facility of approximately 549 megawatts (MW) in Marshall County. including a transmission line, interconnection facilities and other necessary appurtenances, as is more fully described in this Order. Based upon a thorough review of the evidence and the public support shown for the proposed plant, the Coininission will grant a Siting Certificate to Moundsville Power, subject to the terins and conditions set forth in this Order. I. PROJECT DESCRIPTION On July 3, 2014, Moundsville Power' filed an application for a Siting Certificate2 pursuant to W. Va. Code $5 24-2-1(c) and 24-2-11c to authorize the construction and operation of a natural-gas fired base load combined cycle wholesale electric generating 1 Mouiidsville Power, a Delaware limited liability company, is authorized to do business in West Virginia. Mouiidsville Power's Application consisted of two large voluines, iiicludiiig aii Appendix, inultiple Exhibits. tables, figures and other documents. The Applicatioii was filed pursuant to the Coinmission's Rules Governing Siting- Certificates for Exempt Wholesale Generators (Sitiiia Rules), 150 C.S.R. Series 30. I facility of approxiinately 549 MW (Facility or Project) about three iniles south of Moundsville, including an approxiinately 500-foot 138 kV (less than 200,000 volts) transmission line. interconnection facilities and other necessary appurtenances as inore particularly described in the application. Upon completion, the Facility will be used to generate electricity for sale in the competitive wholesale market in West Virginia and other locations. Moundsville Power stated that the plant will utilize state-of-the-art natural gasfbeled electric generating equipment consisting of two combustion turbines (CTs) that will drive two combustion turbine generators (CTGs). The CTGs will be connected to two heat recovery steam generators (HRSGs) that will use exhaust heat from the CTs to generate high-quality, superheated steam. The steam will drive a single steam turbine that will drive a steam turbine generator to generate electricity. The Facility also will have cooling towers, a switchyard, a water treatment building, a inaintenance building and other auxiliary structures. Application Forin 2, at 2; Application at 2. The new plant will generate enough electricity to power some 325,000 homes. Moundsville Power stated that additional generating capacity is needed in the PJM3 power market. In the Ohio River Valley, 3,870 MW is scheduled to close by 2015. Close to the proposed Moundsville Power plant, the 541-MW R.E. Burger Plant in Shadyside, Ohio, has closed and the 713-MW Kaininer Plant outside of Moundsville will close. Moundsville Power stated that it will directly fund significant upgrades to inore than nine iniles of local power grid infrastructure as required by PJM. The plant location is close to several natural gas production and processing facilities and transmission pipelines. The Facility will receive blended fuel of 25 percent ethane and 75 percent natural gas. Application Forin 2, at 2; Application at 3. The fuel blend is not available froin local natural gas distribution companies, pipelines or natural gas suppliers. Application Appendix at 4, 5, 14. Large volumes of natural gas are being produced in the area near the Moundsville Power plant, but the natural gas is generally "wet" and inust be processed before it can be used for various purposes. For instance, to obtain utility-grade natural gas to burn in household appliances, ethane is one of the elements that is removed froin wet gas. Ethane burns hotter than natural gas and in most market settings is inore valuable than natural gas. A lot of ethane froin around the country is transported to Louisiana, where it is processed and sold. Because large volumes of natural gas (and ethane) are being produced near Moundsville and there currently is no available means to transport 3 PJM Iiiterconiiection Association, a regioiial traiisinissioii organization, coordinates the movement of electricity through all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland. Michigan. New Jerseq , North Carolina, Ohio, Peiinsy lvania, Tennessee, Virginia, West Virginia and the District of Columbia; operates a n.holesale electricity market; and manages a long-term regional electric transmission plaiiiiiiig process to inaintaiii the reliability of the power supply system. Application Appendix at 1; Applicant Ex. JPB-D at 7. 2 1 I the ethane to market in Louisiana, the local price of ethane is depressed. The Moundsville Power plant can use local ethane as a fuel source when it is economically feasible and doing so provides a West Virginia outlet for a commodity. If a local market develops or transportation becomes available to move the locally-produced ethane to Louisiana or other markets to be sold for a higher price, the Moundsville Power Facility can operate using only natural gas as fuel. Tr. at 54-55 (Dec. 9, 2014). Moundsville Power stated that it has conducted multiple rounds of a competitive bid process to select a third party to design, permit, construct, own and operate a dedicated pipeline and fuel mixing station to serve the Facility (Pipeline). The lowest bid received was a joint proposal froin Vineyard Oil & Gas Company and East Resources, Inc. Applicant Ex. ADWIV-R at 6. The Pipeline's priinary source for the delivery of natural gas will be from the Texas Eastern Transinission pipeline (Tetco) and the priinary source of ethane will be froin Blue Racer Midstream's Natrium natural gas processing plant (BRM). The Pipeline will interconnect to Tetco and BRM about 5.5 i d e s south of the Facility with two 16inch pipeline taps to Tetco, a meter and regulation station and a tap to a BRM pipeline with a meter and regulation station. A natural gas and ethane mixing station will be built close to the Tetco and BRM taps. a.at 8. The Facility will use water froin the Ohio River for cooling. Excess cooling water and storinwater will be discharged into the Ohio River. Application Appendix at 5. The power generated by the Facility will be delivered to an existing American Electric Power (AEP) substation (Washington Substation). The 500-foot transmission line will begin at the northeast corner of the Facility and cross West Virginia Route 2 to the Washington Substation. Application at 2; Application Forin 2, at 3. Moundsville Power stated that General Electric (GE) will inanufacture the generation equipment and provide preventative and on-call maintenance. Moundsville Power will enter into a contract with a qualified engineering, procurement and construction contractor to inanage construction and with a qualified operation and maintenance firin with experience operating a GE combustion turbine plant to operate, manage and maintain the Facility. Application at 2-3. The plant will be located on a 37.2-acre portion of the 382-acre Allied-HanlinOlin USEPA Superfund Site that was previously the home of a chemical inanufacturing facility. Moundsville Power stated that the 37.2-acre parcel has been remediated. Application Appendix at 3. Moundsville Power asserted that constructing the plant at this location will allow redevelopment of a portion of an otherwise environmentally stigmatized property. Further: a trained and qualified local labor pool is available that has the requisite skills to coiistruct the Project. Other factors that contributed to the selection of this site include that the parcel is within 500 feet of the AEP Washington Substation where the Facility will interconnect with the PJM grid, in the area of Marcellus Shale production in West Virginia resulting in readily available natural gas and ethane fuel, and 1,700 feet froin the Ohio River providing access to obtain and discharge water. Application Appendix at 3 8; Tr. at 24. Moundsville Power asserted that neither the Facility nor the transmission line are utilities providing service to the public, and there will be no impact to West Virginia ratepayers. Moundsville Power further asserted that it will be the entity responsible for the construction and operation of the Facility and for the sale of electricity generated by the Facility. Moundsville Power will operate the plant as an exempt wholesale generator as defined under Section 32(a) of the Public Utility Holding Company Act of 1935. Application Form 2, at 2. Moundsville Power estimated that it will cost approximately $6 15 million to construct the Facility and the transmission line. Id.;Application Appendix at 70. Moundsville Power stated that the Project funding m7ill be a combination of equity and term B market loans. Moundsville Power has entered into a PILOT (payment in lieu of taxes) agreement with the Marshall County Board of Education and the Marshall County Coinmission (MCC) whereby Moundsville Power will be exempt froin ad valorem property tax for 30 years and will make payments for proportional distribution to the Board of Education and MCC of $4,200,000 during a 30-year term. Moundsville Power has also entered into a Lease Agreement with the MCC, under which Moundsville Power will make an upfront payment of $970.000 and annual lease payments for 30 years totaling approximately $39,292,865. The basic rent schedule can be reduced by a job credit of up to $300,000 annually, resulting in a total rent agreement package of $3 1.262,865 to $40,262,865. Presently Marshall County receives $2,500 annually in ad valorem property taxes for the 37.2-acre tract. Application Appendix at 70-72, 75; Application Appendix Ex. 20; Applicant Hearing Ex. 2; Applicant Ex. MJD-D at 7, 11-12; Tr. at 60. Tom S. Witt testified for Moundsville Power that the construction and operation of the Facility ill have a significant econoinic impact on the West Virginia economy. Using 2013 dollars, he estimated $105 inillion per year of natural gas sourced through long-term fuel agreements with West Virginia producers and processors; three-year construction period impacts resulting in inore than 3,000 job years, $191 inillion in employee compensation, $227 inillion in value added and $400 inillion in output; and first full-year of operation impacts resulting in 420 full- and part-time jobs. $26 inillion in einployee compensation. $51 million in value added and nearly $208 inillion in output. Application Appendix at 74-75; Application Appendix Ex. 22. He estimated the total econoinic impact for West Virginia to be inore than $800 inillion during construction and inore than $280 inillion annually during operation. Application at 3. 4 11. PROCEDURAL HISTORY Initial Public Notice and Coinment Letters Moundsville Power published the Notice of Filing of its application on July 15, 2014, in The Moundsville Daily Echo (Marshall County) and 011 July 21, 2014, in The Charleston Gazette (Kanawha County). Affidavits of Publication (filed July 2 1, 20 14 & Aug. 4, 2014). The Coininission received 444 letters and postcards in support of the Project, including letters froin the Marshall County Chamber of Commerce, the West Virginia Oil and Natural Gas Association, the International Brotherhood of Electrical Workers Local Union #141, and the Wheeling Joint Apprentice and Training Committee. No letters or case file generally. coininents in opposition to the Project were filed. Waiver of Certain Filing Requirements; Interventions On September 5, 20 14, the Coininission granted Moundsville Power's request for a waiver of certain certificate application filing requirements. Because the Coininission's jurisdiction, by law, is liinited regarding the operations of the Project, the Cominission did not require Moundsville Power to file information that relates to the traditional public utility inodel under which the Coininission examines extensive financial inforination to establish rates for service based on the cost to the utility to provide that service. Coinin'n Order at 7-8 (Sept. 5 , 2014). Also on September 5, 2014, the Cominission granted the petitions to intervene of the West Virginia State Building and Construction Trades Council, AFL-CIO (Trades Council) and the Independent Oil and Gas Association of West Virginia, Inc. (IOGA). Id. at 6, 8. Motion for Protective Treatment Siting Rule 3.1.1.2 requires applicants to file certain financial statements for each year of the start-up phase and for the first five years of operation, and these financial stateineiits inust disclose all assumptions. On July 3, 2014, Moundsville Power filed a redacted public version of the required financial data along with a confidential version of the saine under seal. On July 10, 2014, Moundsville Power filed a Motion for Protective Order. which the Coinmission granted. Comin'n Order at 7-8 (Sept. 5 , 2014). View by the Coininission; Public Coininent Hearing On November 19, 2014, the Cominission conducted a View of the project area with representatives of Coininission Staff, Trades Council and Moundsville Power. The View began at 1:30 p.in. at the Marshall County Courthouse and lasted about three hours with stops at these Viewpoiiits: 5 1. 2. 3. 4. 5. 6. 7. 8. 9. Grave Creek Mound and West Virginia Penitentiary Grand Vue Park Moundsville Power Plant Site Moundsville Country Club Washington Lands Elementary School Historic 1920s Residence Washington Lands United Methodist Church Washington Lands Subdivision driving tour AEP Washington Substation At each Viewpoint, the parties were told in which direction they were looking (Le., toward Moundsville, toward the Facility, etc.), the relative elevations of the viewing location and the Facility, and where the Facility would be located in relation to the Viewpoint. At the plant site, the locations of the various pieces of equipment and buildings were shown. The Coininission and Staff asked clarifying questions about the Viewpoints, but none of the questions addressed the merits of the Project. A court reporter was not present during the View, and the Commission traveled in a separate vehicle from the parties. Moundsville Power published notice of the public coininent hearing on Noveinber 6, 2014, in The Moundsville Daily Echo (Marshall County) and The ChaPleston Guzette (Kanawha County). Affidavits of Publication (filed Nov. 14, 2014). After the View, the Coininission conducted a public coininent hearing at 6 p.m. Noveinber 19, 20 14, at the Marshall County Courthouse in Moundsville, West Virginia. Two individuals spoke in favor of the Project. No one spoke in opposition to the Facility. Pre-filed Testimonv On September 11, 20 14, Moundsville Power pre-filed the Direct Testimony of the following witnesses : 1. 2. 3. 4. 5. 6. 7. 8. John P. Black - engineering, contracting, regulatory and permitting (App 1i cant Ex. JPB -D); Andrew W. Dorn, Jr. - history of and need for the Project and suitability of the Site (Applicant Ex. AWD-D); Matthew J. Dorn, CPA - Project financing, PILOT and lease agreement with Marshall County Coininission (Applicant Ex. MJD-D); David Mark Kiser, P.E. - traffic (Applicant Ex. DMK-D); Laidley Eli McCoy, Ph.D. - hydrology (Applicant Ex. LEM-D); Karri Rogers - viewshed (Applicant Ex. KR-D); Tom S. Witt, Ph.D. - economic impact (Applicant Ex. TSW-D); and Jessica L. Yeager, M.S. - environmental and noise (Applicant Ex. JLY-D). 6 On October 2, 2014, Trades Council pre-filed the Direct Testimony of its witnesses : 1. 2. Steve White - local worker impact and agreement (AFL-CIO Ex. SW-D); and Michael Jin - Project economic impacts (IMPLAN study) (AFL-CIO Ex. MJ-D). On November 6, 20 14, Staff pre-filed the Direct Testimony of its witnesses: 1. 2. 3. 4. Josh Allen - financial review (Staff Ex. JA-D); Eric F. deGruyter - natural gas issues (Staff Ex. EFDG-D); Karen A. McClure - engineering and environmental review (Staff Ex. KAM-D); and Donald E. Walker - engineering and technical review (Staff Ex. DEW-D). On December 2, 20 14, Moundsville Power pre-filed the Rebuttal Testimony for tm7o witnesses: 1. 2. John P. Black, P.E. - responding to certain Staff conditions and providing some clarifications (Applicant Ex. JPB-R); and Andrew W. Dorn. IV - the natural gas arrangements for the Facility and responding to certain Staff conditions (Applicant Ex. AWDIV-R). Joint Stipulation On December 2. 2014, Moundsville Power, Staff, Trades Council and IOGA filed a Joint Stipulation and Agreement for Settiement (Joint Stipulation), in which they recommended the Commission grant Moundsville Power a Siting Certificate, subject to certain conditions. Joint Ex. 1 (Tr. at 21, Dec. 9, 2014). They recommended the text for the proposed conditions and asked the Conmission to approve the June 27, 2014 Memorandum Agreement between Moundsville Power, the Upper Ohio Valley Building and Construction Trades Council, AFL-CIO and the Building Trades, which Moundsville Power and the Trades Council represented and agreed will cover the Project. Joint Ex. I at 4-8. Evidentiary Hearing 1 On November 26, 20 14, Moundsville Power published notice in The Moundsville Daily Echo (Marshall County) and in The Charleston Gazette (Kanawha County) of the The evidentiary hearing was concluded in one day. The parties elected not to file briefs and agreed to prepare a proposed Order. Tr. at 68 (Dec. 9, 2014). The proposed Order was filed for the Commission to consider on January 27, 20 15. In this case, the Commission has conducted a View of the Project area and reviewed the two-volume Siting Certificate application and 16 pre-filed direct and rebuttal testimonies with exhibits consisting of more than 500 pages of record evidence. The Cominission also conducted a public comment hearing that resulted in a 19-page transcript and an evidentiary hearing that resulted in a 70-page transcript and hundreds of pages of exhibits. References to the pre-filed direct and rebuttal testimonies are cited to the page number of those testimonies and the exhibit identification that appears in the evidentiary transcript. 111. DISCUSSION OF ISSUES AND EVIDENCE A. Statutory and Regulatory Tests W. Va. Code 5 24-2-1 lc(c) states: In deciding whether to issue, refuse to issue, or issue in part or refuse to issue in part a siting certificate, the commission shall appraise and balance the interests of the public, the general interests of the state and local economy, and the interests of the applicant. The coinmission may issue a siting certificate only if it determines that the t e r m and conditions of any public funding or any agreement relating to the abatement of property taxes do not offend the public interest, and the construction of the facility or material modification of the facility will result in a substantial positive impact on the local economy and local employment. ’The commission shall issue an order that includes appropriate findings of fact and conclusions of law that address each factor specified in this subsection. All material terms, conditions and limitations applicable to the construction and operation of the proposed facility or material modification of the facility shall be specifically set forth in the commission order. The Coininission views the statute as setting forth a two-part balancing test that the Cominission inore k l l y explained on page 102 of our June 26, 2006 Order that partially and conditionally approved a coal-fired electric wholesale generation facility in Longview Power LLC, Case Number 03- 1860-E-CS: In Part One of the analysis, the Coininission will perform its duty to appraise and balance: (a) an applicant’s interest to construct an electric wholesale generation project; (b) the State’s and region’s need for new electrical generating plants; and (c) the economic gain to the State and the local economy, against: (i) coininunity residents‘ interest in living separate and apart froin such facility; (ii) a community’s interest that a facility’s 8 negative impacts be as miniinally disruptive to existing property uses as is reasonably possible; and (iii) the social and environmental impacts of the proposed facility on the local vicinity, the surrounding region, and the State. The Commission perforins Part Two of its analysis only if it determines in Part One that, taken as a whole, positive impacts relating to the various interests outweigh the negative impacts on the various interests. (See W Vu. Code 5 24-2-11c(c)). In Part Two the Commission decides whether a project's public funding, if any, and property tax abatement, if any, offends the public interest. ( W Va. Code fj 24-2-1 lc(c)). See Beech Ridge Energy LLC, Case No. 05-1590-E-CS, Coinm'n Order at 75 (Aug. 28, 2006) (granting approval of electric wholesale generating facility and transmission line, with conditions); Beech Ridge Energy I1 LLC, Case No. 12-1 196-E-CS, Comm'n Order at 10-11 (June 19, 20 13) (granting approval of electric wholesale generating facility, with conditions). Within the second half of Part One, the Coinmission considers issues such as the proposed plant's impacts on viewshed, wildlife, ambient sound levels and water resources. AES Laurel Mountain LLC, Case No. 08-0109-E-CS, Comm'n Order at 9 (Nov. 26, 2008); AES New Creek LLC, Case No. 08-2105-E-CS, Coinin'n Order at 9 (Sept. 30, 2009). B. 1. Application of Pai-t One of the Balancing Test Part One (a) -- The Interest of Moundsville Power to Construct the Project Moundsville Power asserted that it has assembled a team of experienced and diversc professionals to thoroughly study and develop this Project and has secured an appropriate site for the Facility in an area where there will be a shortage of electric supply resulting froin planned retirement of existing coal fired plants in the Ohio River valley. Moundsville Power entered the PJM project queue in March 2013, became a inember of the PJM Interconnection in early 2014 and has completed the PJM feasibility study and the system impact study. Applicant Ex. AWD-D at 5 , 6 & 8. Moundsville Power has received its West Virginia Department of Environmental Protection (WV DEP) Air Permit; completed its United States Fish and Wildlife Service (USFWS) Section 7 Consultation, West Virginia Department of Natural Resources Lands Inquiry and State Historic and Preservation Office Phase I archaeological survey; and is actively working with other agencies to obtain necessary perinits for the Project. Applicant Ex. JPB-D at 34-41; Applicant Ex. JLY-D at 2-5; Tr. at 25-26. Moundsville Power submitted a comprehensive application for the Project that included the required technical reports, mapping and studies. See Application, Appendix & Appendix Exhibits 1-26. 9 I Based on our review of the evidence, the Commission concludes that Moundsville Pow-er has demonstrated a sufficient interest in constructing the Project. Moundsville Power has a legitimate business purpose in undertaking the Project and has retained various technical experts and developed detailed information in support of its application. Moundsville Power has expended substantial time and economic resources to apply for a Siting Certificate and to obtain various other perinits, agreements and real property interests necessary to construct and operate the Project. Applicant Ex. AWD-D at 4-6 & 11. Further. Moundsville Power has committed to working in conjunction with the Commission and other state and federal agencies. All of these facts show that Moundsville Power has a serious and sincere interest in constructing the Project. 2. Part One (b) -- The Need for Generating Plants in the State and Region Moundsville Power asserted that it will provide clean, low cost and reliable electricity to help offset the effect of coal plant closings and support local electric load balancing. In close proximity to the Project, five power plants have closed or are scheduled to close by 2015. representing a loss of approximately 3,870 MW of generating capacity along the Ohio River between Point Pleasant and Wheeling, West Virginia: AEP’s Kammer Plant located outside of Moundsville; FirstEnergy’s R.E. Burger Plant near Shadyside, Ohio; AEP’s Muskingum River Plant in Beverly, Ohio; FirstEnergy’s W i l l o ~Island Power Station in Will0~7Island. West Virginia; and AEP’s Philip Sporn Plant in New Haven, West Virginia. Application Appendix at 3. Moundsville Power will fund significant capital upgrades to existing infrastructure as required through the PJM interconnection process. Tr. at 37. Moundsville Power also asserted that the Facility will be the first in the state to target West Virginia‘s significant natural gas production, processing and transinissioii infrastructure for electric power production and will allow local producers to transport significant additional amounts of natural gas and ethane on an annual basis. Application Appendix at 13. The federal Energy Information Administration, in the Annual Energy Outlook for 2014 released in April 2014, increased its projection for coal-fired power plant closures to 60 gigawatts (GW) by 2020, with 90 percent, or 54 GW, occurring by 2016 mainly because of enforcement of federal Mercury and Air Toxics Standards (MATS). MATS requires fossil-fuel steam electric generators with capacity exceeding 25 MW to meet limits based on maximum achievable control technologies to control emissions of acid gases, toxic metals and mercury by April 2015, and it appears likely that one-year extensions will be granted to April 2016. Related to MATS, AEP has announced that it will close 7,176 MW of coal-fired generation by 2016 and FirstEnergy has announced that it will close 5,429 MW of coal-fired generation by 2015. Application Appendix at 13. Monitoring Analytics, the independent market inonitor for PJM, produces quarterly and annual State of the Market reports to comment on issues facing PJM. The quarterly report for January through June 2014 (issued on August 14: 2014) states that 25,902.2 MW are planned to be retired through 2019 because of the MATS regulations, 10 all but 2,050.5 MW u7ill be retired by the end of 2015, and 77.4 percent of the retirements will be from coal-fired plants. The AEP zone accounts for 6,024 MW or 23.6 percent of the total PJM retirements, Applicant Ex. JPB-D at 8. These retirements do not take into account the effects of the federal Environmental Protection Agency's Cross-State Air Pollution Rule or Clean Power Plan. Furthermore, the quarterly report notes that of the 90,597 MW of coal-fired steam powered generation in PJM, 84 percent is older than 30 years, which suggests additional retirements will be seen as plants near the end of their useful lives. Moundsville Power asserted that additional future retirements, triggered either by environmental requirements or the age of generation in PJM, will create a significant need for additional generation in the region. Id. Moundsville Power asserted that the availability of local fuel supply will allow the Facility to function as a base load h l l y dispatched generating facility to help meet the electric service demand in the PJM region. The Facility will help diversify the power mix in the State and increase utilization of a natural resource produced in West Virginia. Application Appendix at 1. At full capacity, the Moundsville Power plant will deliver about 4,700,000 MWh to the grid annually. The plant will generate enough electricity to power approximately 325,000 homes annually. Id.at 16-17. Moundsville Power noted that the Commission has regularly stated that West Virginia is part of a regional integrated electricity grid. Beech Ridge, Case No. 05-1590E-CS, Comm'n Order at 76, Aug. 28, 2006 (Concl. of Law 14: "[Ilt is not in the public interest for this Commission to isolate West Virginia from the region. The power grid is interconnected. and to safeguard the availability of productive. well-maintained resources to our State's residents, West Virginia must participate in the interconnected electric systein."). See also Pinnacle Wind Force, LLC, Case No. 09-0360-E-CS, Comm'n Order at 51 (Jan. 11, 2010) (Concl. of Law 9); Beech Ridge Energy I1 LLC, Case No. 12-1196E-CS, Comm'n Order at 42 (June 19, 2013) (Concl. ofLaw 9). The Coinmission believes that it is in the public interest to develop diversified sources of fuel to generate electricity, including alternative sources such as natural gas and natural gas by-products; additional generation capacity is needed to meet PJM's projected load forecast in light of the many coal-fired plant closures; it is in the public interest for West Virginia to participate in the interconnected electric system; and Moundsville Power's base load combined cycle power plant will assist in meeting the daily demand for electric service. For all of these reasons, the Commission concludes that Moundsville Power has demonstrated sufficient need for this Project. 3. Part One (c) -- The Economic Gain to the State and Local Economy Moundsville Power engaged Witt Econoinics, LLC to assess the economic impact of the Project on the state and local economies. Using 2013 dollars, Mr. Witt concluded that during construction, 3,026 job years and $191 million in employee compensation are associated with the plant. Other construction-related economic impacts include value added of $227 million and output of $400.2 million. Application Appendix Ex. 22 at 5; 11 Applicant Ex. TSW-D at 4. During the first year of operation the plant will be associated with more than 420 jobs and $26 inillion in employee payroll. Additionally, annual operating economic impacts include value added of $50.9 inillion and output of $208.1 million dollars. Application Appendix Ex. 22 at 6; Applicant Ex. TSW-D at 5. Moundsville Power intends to employ 30 permanent workers at the Facility upon commencement of operation. Application at 3; Tr. at 30, 46. Under the PILOT agreement, Moundsville Power will pay $4,200,000 over a 30year term to Marshall County, and under the Lease Agreement, Moundsville Power will make annual payments for 30 years totaling about $39,292,865 under the basic rent schedule, along with a $970,000 upfront payment. Application Appendix at 71, 75; Application Appendix Ex. 20; Applicant Hearing Ex. 2. Current ad valorem tax payments generated by the vacant site are about $2,500 annually. Applicant Ex. MJD-D at 12. Moundsville Power also will pay corporate income tax during the years of operation. Applicant Ex. MJD-D at 13. Staff witness Allen testified that the PILOT and Lease Agreements will generate approximately $34.4 to $43.4 million in new revenues during the 30-year period and Marshall County and West Virginia will secure about $285 million annually, or more than $8 billion, over 30 years in positive economic benefit. Staff Ex. JA-D at 3. Trades Council witness White testified that the Upper Ohio Valley Building and Construction Trades Council, AFL-CIO and the Trades Council have entered into a Memorandum Agreement with Moundsville Power, which ensures to the greatest extent reasonably possible that the Project construction workers will be local workers. Mr. White further testified that, upon review of Moundsville Power’s inanpower estimates and based on his experience with other power plants, more than 1 million craft worker hours will be needed to construct the plant. Mr. White asserted that the size of the project and the amount of construction employment needed will have a substantial positive impact on the local economy and local employment. Coiistructioii Trades Ex. SW-D at 2. Trades Council witness Jin completed an IMPLAN Economic Study and, based on the information provided by Moundsville Power, he estimates that construction of the Project on an annualized basis will create 206 full-time equivalent jobs in construction and 298 in other industries for a total of 504 jobs for the West Virginia economy annually. The entire construction project will create 1,344 jobs for West Virginia. Construction Trades Ex. MJ-D at 6. His study also indicated that plant construction will generate $55.4 inillion in wages for workers and $9.9 million in state tax revenues annually. Mr. Jin concluded that the construction will result in a substantial positive impact on the local economy and local employment and positively impact the state economy through a substantial increase in sales, taxes, business activities and jobs. Id.at 6-7. 12 Based on the record before the Commission, it is reasonable to conclude that there will be a significant economic gain to both the state and local economies during the construction and operation of the Facility. The Moundsville Power Project will create significant numbers of local construction jobs and permanent jobs thereafter and will provide significant revenues for local governments and public education. 4. Part One (i) -- Community Residents’ Interest in Living Separate froin the Project Part One (ii) -- The Project’s Negative Impacts be Minimally Disruptive to Existing Uses Part One (iii) -- The Project’s Social and Environmental Impacts Parties in Siting Certificate cases often differ on whether aspects of the Project involving viewshed, noise, traffic, and water result in negative social and environmental impacts, and if so, whether those impacts are miniinally disruptive to the local residents and will allow those residents to live separate and apart froin the impacts of the Project. While the Commission weighs each of the considerations listed above when assessing the coininunity concerns, an overall analysis is more helpfbl and reflective of the approach taken by the Commission in prior siting certificate orders. The Coininission analysis, therefore, will be presented in a comprehensive fashion. In this case, no protests were filed and no person voiced any opposition to the Project at the public hearings conducted in this matter. (a) Viewshed The approximately 37-acre Project site is located about three miles south of Moundsville, bounded by West Virginia Route 2 on the east, the Moundsville Country Club golf course on the south, the Williams Ohio Valley Midstream Fractionation Plant on the north and remaining portions of the Honeywell Superhnd site on the west. Applicant Ex. JPB-D at 4. The plant will occupy about 17 of the 37 acres. Application Appendix at 18. The Washington Lands community is across West Virginia Route 2 on a slope rising from the highway. The closest homes are about 400 feet away froin the proposed plant and are generally at elevation 743 feet above mean sea level. The elevation of the plant site b17ill be at 717 feet, or some 26 feet lower than the ground surface at the closest residences. The earthen slope from the plant grade to the highway will provide a partial visual and noise barrier between the Facility and Washington Lands. Applicant Ex. JPB-D at 8-9; Tr. at 35. Only two types of plant structures will be taller than 100 feet: the two heat recovery steam generators are approximately 110 feet in height and the t ~ 7 oHRSG stacks are about 180.5 feet in height. Many of the other structures are less than 40 feet in height. Application Appendix at 52. With its application, Moundsville Power submitted a Visual Resource Assessment, consisting of a narrative evaluation, composite viewshed maps and photo simulations. Application Appendix Ex. 17. The Visual Resource Assessment illustrates the potential 13 visual impact of the Facility for radii of one, five and twenty miles under both bare earth and mature cover scenarios. Visibility of the Project beyond 11 iniles was not detected under either scenario. Of the approximately 325,954-acre study area, only 0.9 to 1.0 percent, or 2,829 to 3,268 acres, will have some visibility of the Project. Application Appendix Ex. 17 at 9. 12. According to the assessment: visibility is limited by the geographic location of the Facility in the Ohio River Valley bottom, low elevation and tree cover in the surrounding area. A 1,200-foot high ridge between Moundsville and the plant shields the Cities of Moundsville and Glen Dale froin any view of the Project. The airports in Marshall County and Wheeling also will have no visibility of the Facility. Id.at 12; Tr. at 42. No state parks, national wildlife preserves, state refuges, state wildlife management areas, national landmarks, national parks, national recreation areas, scenic rivers, scenic highways, or other sensitive features have visibility of the Project. Application Appendix Ex. 17 at 8. The assessment also provided a three-dimensional view of the Facility from five project views most evident to the public after construction -- the Washington Lands coininunity (between the rows of houses on Tracey Lane), the Washington Lands Church, the Washington Lands Elementary School, a historic Washington Lands Home and the Moundsville Country Club. Id.at 11- 12, Figures 22A-26B. Overall visibility from these five locations is minor, and in many cases tree cover and vegetation will act as a screen. Id. During the first half of the construction schedule, most work will be performed on ground level tasks, and other than the immediate area of Washington Lands, there will be no visibility of any magnitude. When construction cranes are in place: areas within the one-inile radius will begin to have visibility, and as the 180-foot stacks are constructed, visibility will mirror the views that will exist during operations. at 12. i- a. Moundsville Power will file a Federal Aviation Administration notice of height and location of cranes and stacks. Moundsville Power does not expect that a notice of aviation hazard will be issued, but flags and warning lights may be required. Applicant Ex. JPB-D at 39. In the 2.6-acre area between the Facility and West Virginia Route 2, Moundsville Power m7ill plant a mixture of native deciduous trees, evergreens and shrubs as a visual barrier for the Washington Lands cominunity. Applicant Ex. JPB-D at 5-6. During the View, the Coinmission observed that the Project site and surrounding area have been, and continue to be, very industrial; the Cities of Moundsville and Glen Dale will have no view of the Project; and views of the Facility in the Washington Lands area will be limited. While the tops of the HRSG stacks will be visible from various locations very near the Project, after reviewing the evidence and conducting the View, the Commission concludes that there will be no interference with existing scenic or aesthetic uses and there will be no adverse effect on the scenic character of the land within the viewshed of the Project. The Coimnission concludes, therefore. that the impact of the presence of the Project 14 and view of the Project will be minimally disruptive to the community and neither unreasonable nor burdensome. (b) Sound Numerous factors affect sound levels from electric generation projects, including the type of generation equipment, layout (general arrangement), building design, weather, ground cover, distance, ambient noise, leaf and foliage cover, elevation and wind direction. As required by Siting Rule 3.1 m.4, Moundsville Power submitted a Noise Study that evaluated pre-construction, construction and operational noise levels. Application Appendix Ex. 25. Potesta & Associates, Inc. reviewed the proposed site drawings, equipment information and Commission noise study guidelines, observed ambient conditions and collected noise data for ten days in November 2013 at four monitoring locations in the vicinity of the Facility: Washington Lands Church, Moundsville Country Club, Tracey Lane and Woodland Knolls Apartments. Application Appendix Ex. 25 at 10-1 1; Tr. at 43. Other residential areas north of the Project are separated from the Project by a ridgeline. Noise levels are generally considered low when ambient levels are below 45 decibels (dBA), moderate in the 45 to 65 dBA range, and high above 65 dBA. Typical Day-Night Sound Level (Ld,)4 values might be 35 dBA for a desert wilderness area, 50 dBA for a small town or wooded residential area, 65 to 75 dBA for a major metropolis downtown, and 80 to 85 dBA near a freeway or airport. Application Appendix Ex. 25 at 3. 1. Pre-Construction Noise Potesta's pre-construction assessment indicated that road noise from West Virginia Route 2 was prevalent at three of the four monitoring locations, including during the evening hours. Other sources of noise included the Washington Substation, the Williams Fractionation Plant, and river and rail traffic. The study indicated that ambient noise levels from West Virginia Route 2 likely dominate at nearby homes, the Moundsville Country Club and the Washington Lands Elementary School. A less coininon measure of sound is the C-weighted value (dBC) which has a flatter filter than the A-weighted filter and allows inore low frequency noise to be measured. The Potesta study stated that C-weighted measurements are more appropriate for estimating potential vibration and potential annoyance when low-frequency noise effects are anticipated. Id.at 5. During the daytime, ambient noise levels at the Washington Lands Church monitoring location range from 65 to 80 dBC. The evening and nighttime levels are not substantially lower than daytime, being 62-72 dBC. Applicant Ex. JLY-D at 5. 4 The Day-Night Average Sound Level (Ldn),expressed in decibels, is a 24-hour average noise level used to define the level of noise exposure on a community. The Ldnrepresents the average sound exposure during a 24-hour period and does not represent the sound level for a specific noise event. 15 2. Construction Noise The Noise Study also assessed the operation of earth moving equipment, driving of piles, erection of structures, truck or other traffic, and installation of Facility equipment. No dynamiting activities are expected to occur and major construction will not take place at nighttime. The modeling used a very conservative method by assessing inaxiinuin noise possible if all construction equipment operated at the same time at one location, resulting in a maximuin noise value that will never occur. Because the construction site is lower than trees, the adjacent road and area structures, the Potesta study estimated that most locations near the plant will have at least 10 decibels of shielding and any potential increase in ambient noise levels during construction should be very minimal. Applicant Ex. JLY-D at 6; Tr. at 43. The placement of various physical elements at the site, the selection of inaterials for building walls and insulation, the installation of permanent mitigation techniques to lessen noise during start-up and commissioning. and the scheduling of the loudest activities to occur during daylight hours will also be employed by Moundsville Power. Further, trucks and cranes will have noise mitigation equipment, idling time of large trucks will be minimized during the construction period, and Moundsville Power will install two rows of trees on the Facility side of West Virginia Route 2 as soon as practically possible to increase potential shielding. Applicant Ex. JLY-D at 6. The Potesta study stated that the Washington Lands cominunity is very familiar with construction noise related to industrial facilities, as evidenced by the recent expansion of West Virginia Route 2, ongoing construction of the Williams Fractionation Plant and similar facilities and activities. The area also has experienced the construction activity associated with the development and operation of the Hanlin-Allied-Olin site, and its eventual decoininissioning and reclamation. Application Appendix Ex. 25 at 4 1. Based on the evidence presented, the Coininission concludes that noise levels associated with construction activities would cause only a minimal increase in sound exposure to the surrounding residential cominunity. 3. Operational Noise and Noise Mitigation Measures Operational noise was evaluated using both the Day-Night Sound Level (Ldn)and the Community Noise Level Equivalent (CNEL).’ Noise levels were modeled at set distances ranging from 50 to 6,400 linear feet from the boundary or perimeter of the power plant site. Applicant Ex. JLY-D at 6. Measuring noise at the boundary of the power plant provides higher noise estimates because such measurements do not take into account that several of the noise-generating features will be shielded from the residential coininunity by the administrative office building. Id.at 41-42; Tr. at 44. Noise froin the 5 The CNEL is a noise index that accounts for the greater annoyance of noise during the evening and nighttime hours. Applicatioii Appendix Exhibit 25 at 7. 16 power plant operations was evaluated using a very conservative model that assumed the maxiinuin sound level for all equipment combined. Application Appendix Ex. 25 at 41. The Potesta study found that the closest residences are within 350 feet of the Project boundary and about 400 feet from the Facility. With 5 dB of shielding from the Facility, these residences would have Ldll values that range froin 68.3 dBA to 70.8 dBA, or values which are within the ambient noise levels. Homes can attenuate noise up to 27 dB with an average of 25 dB so the resulting indoor Ldll value would be 43.3 dBA to 45.8 dBA, values that are protective of sleeping residences. Applicant Ex. JLY-D at 5 , 7. Ms. Yeager testified that even these values are conservative because Moundsville Power’s noise mitigation efforts are expected to provide about 10 db of shielding. Id.at 6. Moundsville Power will plant trees along the Facility side of West Virginia Route 2 and has offered to plant trees along Washington Lands‘ border of Route 2. The trees will dampen and buffer noise. Additionally, Moundsville Power will place an acoustic shell over the steam turbine and position non-noise structures between noise-generating equipment and the coininunity. Id. at 7; Tr. at 44. Having reviewed the evidence presented, the Commission concludes that the Project will not substantially increase ambient noise levels in the area. The Coininission finds that the ambient sound levels will remain relatively similar and to the extent that construction or operation noise results in negative impacts, those negative impacts are expected to be as miniinally disruptive to existing property uses as is reasonably possible and are not unreasonable. (c) Air The Facility has the potential for air emissions from several components, and Moundsville Power has obtained an Air Perinit froin the WV DEP, Division of Air Quality. Application Appendix at 8, 24; Tr. at 23, 25. (d) Water Requirements The Facility will have a dedicated intake installed on the bank of the Ohio River. River water will be treated to reduce total suspended solids so that it may be used as the plant’s cooling tower make-up water. Solids froin the river water will be thickened and dewatered using a filter press or similar technology and disposed of in a permitted offsite landfill. Recovered water from the filter press will be used in the project or recycled in the treatment process. Application Appendix at 26. Process water at the plant \17ill consist primarily of cooling tower blowdown and oil water separator effluent. Following treatment, the Facility will discharge about 209 gallons per minute of treated water into the Ohio River. Some treated water will be used onsite to maintain trees and plants in the green spaces and for other non-consumptive uses in accordance with the Facility discharge permits. Id. 17 During construction, the plant will receive water froin Marshall County PSD #2 for drinking and sanitary uses, fire control and dust suppression. Drains froin plumbing fixtures will be collected in a sanitary sewer systein and pumped to an existing Marshall County Sewerage District line. It is estiinated that 3,000 gpd of water will be utilized for plant operations. JcJ. Moundsville Power asserted that it will obtain all required permits from the Department of the Army, U.S. Army Corps of Engineers and WV DEP as necessary for work related to Project water requirements. a.at 6-8. (e) Hydrology Potesta also prepared a Surface and Groundwater Resources Report. Application Appendix Ex. 19. The Facility will not consuine groundwater and will not affect current water table levels. The proposed water deinand froin the Ohio River is 1,800 gallons per miiiute, which is less than 0.04 percent of the Ohio River's lowest recorded flow between 2003 and 2012. Application Appendix at 65. The report stated that no aquifers will be affected by the Project, and there will be no injection of process waters into the ground. Id. at 67. (Q USFWS and WV DNR Moundsville Power initiated Section 7 consultation with USFWS, and USFWS has made a "no-effect" determination, i.e., the Project will not affect federally-listed endangered or threatened species. No biological assessment or further Section 7 consultation is required for the Facility. Application Appendix Ex. 23; Application Appendix at 77. Moundsville Power has completed a Lands Inquiry with WV DNR, and DNR has indicated that the Project is not in the vicinity of any State species of concern or federally listed threatened or endangered species. Application Appendix Ex. 24; Application Appendix at 77. (g) Traffic Using average daily traffic (ADT) inforination froin the West Virginia Division of Highways, Potesta prepared a traffic study to assess the volume of pre-construction, construction and post-construction traffic for public roads near the Facility. Application Appendix Ex. 26. The construction staging area will be west of West Virginia Route 2, just north of the Moundsville Country Club. Access to the Site froin interstates will most likely be froin Exit 1 off Interstate 470 (bypass) near Wheeling, then south along U.S. Route 18 250/WV Route 2 through Moundsville, and continuing south along West Virginia Route 2 about 2.5 miles. Once unloaded, the trucks will return to the interstate using the same route. Construction personnel likely also will enter and exit the Site using this route. Application Appendix Ex. 26 at 2; Applicant Ex. DMK-D at 2-3. Potesta concluded that the ADT during construction, including delivery trucks, delivery vehicles and workers, would be estimated at 1,375 and would increase the ADT along West Virginia Route 2 at the intersection of Solvey Road (access to the entrance for the plant) by approximately 15 percent. Application Appendix Ex. 26 at 6. Moundsville Power will employ mitigation techniques including upgrading the site's access road; following West Virginia Department of Transportation requirements for traffic route; coordinating heavy haul and oversize loads with the Marshall County Sheriffs Department and Moundsville Police; complying with all WV DOT, Marshall County and Moundsville requirements for oversized loads; providing advanced notice for all major loads; and meeting WV DOT requirements specific to the area. Application Appendix Ex. 26 at 6-7; Applicant Ex. DMK-D at 4. Further, Moundsville Power intends to stagger worker shifts so all construction workers will not be coming into, and then leaving, the site at the same time. Tr. at 45, 57. Moundsville Power will work with the principal of the Washington Lands Elementary School so that construction traffic does not interrupt or delay school bus traffic. at 57. u. After construction is complete, Project traffic will be limited to operational and maintenance vehicles. About 30 vehicles will enter and exit the site each day, which will raise the ADT value along West Virginia Route 2 by approximately 90, which Potesta concluded will not cause a noticeable impact. Moundsville Power's post-construction traffk will be much lower than the amount of vehicle traffic associated with previous chemical production facilities at the site. Applicant Ex. DMK-D at 4. The Coinmission is satisfied that the Moundsville Power Project will not cause any substantial problems or difficulties with respect to existing traffic patterns. During plant operations, the ADT for the affected areas will only show a slight increase in traffic. Accordingly, the Coinmission finds that the Project will not have a significant or substantial impact on traffic in and around the Project area. (h) Area property values and local infrastructure Moundsville Power asserts that it does not expect a negative impact on area property values from the Project. The parcel is zoned industrial and was operated as a chemical manufacturing facility from 1953 through 1991, and the area in general is heavily industrial focused. Iininediately adjacent to the Facility is the Williams Ohio Valley Midstream Moundsville Fractionator. Application Appendix at 75. Moundsville Power does not anticipate any negative impacts to the local infrastructure resulting from either the construction or operations of the proposed Facilitjr. Local n-ater and seu.er utilities are already present in the area, and the Project's 19 water and sewer demand will be far less than the demand of the previous chemical manufacturing plant. Most water needed for operations will be withdrawn and returned to the Ohio River. In addition, traffic increases from operations will be negligible and during construction will be increased, but not in a significant way. Id. The Coinmission is satisfied that the Project will not have a significant or substantial impact on area property values and local infrastructure traffic in and around the Project area. 5. The Joint Stipulation and Project Conditions In its Direct Testimony, Staff recommended conditions to a Siting Certificate. Staff Ex. JA-D at 5 ; Staff Ex. DEW-D at 7, Ex. 2. In his Rebuttal Testimony, Moundsville Power witness Black suggested clarifications and revisions to several of Staffs proposed conditions. Applicant Ex. JPB-R at 3-9. Moundsville Power, Staff, Trades Council, and IOGA conducted settlement discussions and have proposed that the Coinmission adopt their Joint Stipulation. Joint Ex. 1. The parties request that a Siting Certificate be granted to Moundsville Power subject to these conditions: a. At least 30 days prior to beginning construction or any activity on a particular component part of the Project, Moundsville Power shall provide to Staff (but is not required to file) a copy of the detailed plans for such particular component part. b. At least 30 days prior to beginning construction or any activity on the Project, Moundsville Power shall file a verified statement that provides proof that all permits, approvals, certifications, notices and consultations required prior to the start of construction or activity have been obtained, including the following: 1. 2. 3. 4. 5. 6. 7. 8. Air Quality Permit State Historic Preservation Office Approval USFWS Section 7 Consultation WV DNR Lands Inquiry Department of the Army Encroachment Permit (wetlands and jurisdictional waterways on property) State 40 1 Water Quality Certification (wetlands and jurisdictional waterways on property) WV DNR Stream Activity Permit Site Plan Approval, Grading Permit, Erosion and Sediment Control Plan Approval 20 c. After filing the verified statement in Condition b above, and upon Moundsville Power's construction of additional component parts of the Project, Moundsville Power shall file, at least 30 days prior to beginning construction or any activity on each component part of the Project, a verified statement that provides proof that all permits, approvals, certifications, notices and consultations required prior to the start of any construction or any activity for such component part have been obtained; provided, however, that some permits, such as the heavy haul and building permits, are not available until immediately before the activity, and they will be submitted as soon as practicable. d. Fuel for the Project will be delivered through a blending station and pipeline to the plant, constructed, operated and owned by a third party (the Pipeline Project). Prior to the beginning of construction on any component part of the Pipeline Project, Moundsville Power shall file a verified statement that provides proof that binding contracts are in place for: 1. Installation and construction of adequate natural gadethane delivery points, including Federal Energy Regulatory Commission (FERC) certificates, if required, for new delivery points on interstate pipelines and/or ethane pipelines. 2. Construction of appropriate natural gadethane blending facilities. 3. Construction and operation of the pipeline necessary to deliver the blended (or non-blended) fuel to the plant site, including all necessary measurement and pressure regulation equipment. 4. An adequate fuel supply e. The verified statement filed in connection with Condition d above shall also provide proof that all options for, or rights of way, and all required permits necessary for the construction and operation of such component part of the Pipeline Project have been obtained. f. Moundsville Power shall file a copy of its Interconnection Agreement between Moundsville Power and P JM before commencing construction. g. Moundsville Pourer shall plant in a staggered pattern along the West Virginia Route 2 right of way, trees and shrubs, using native plants to the extent possible, including White Pine, American Holly and Pitch Pine, between six and eight feet tall, and underlying evergreen and densely growing shrubs (Black Haw, Witchhazel, Spicebush and Eastern Wahoo) between one and three feet tall. Moundsville Power may use some native deciduous trees (such as Red Maple, Sugar Maple, Big Tooth Aspen, 21 Northern Red Oak, White Oak, Shellbark Hickory and River Birch) between six and eight feet tall for variety and seasonal variation. Approximately 200 trees and 100 shrubs will be planted. h. Care of the trees and shrubs shall be incorporated into the operations and maintenance plan for the site. Any tree or shrub that does not survive will be replaced in kind. i. Moundsville Power shall conduct plant coininunications via telephone or two-way radio and not via a public address system. j. Moundsville Power, and its contractors, shall stagger the hours of construction and operation to minimize the project's impact on traffic conditions near the site, including school bus travel on West Virginia Route 2. k. Moundsville Power shall provide a report by an independent expert on the amount needed to decoininission the facility and post a Letter of Credit (LoC), purchase a bond or surety, or place the present value of such an amount in an escrow fimd prior to beginning operation. Moundsville Power recognizes that the plant value far exceeds the decominissioniiig costs in the first five years of its service life. Nevertheless, the initial LoC, bond or surety, or escrow account shall be no less than $250,000 to cover the cost of soliciting and engaging a decommissioning company. The report shall be updated thereafter as mutually agreed between Moundsville Power and the Marshall County Commission, but no less frequently than every five years thereafter. The decommissioning fund amount may vary over time depending on changes in the estimated market or salvage value of the Project, the estimated cost of dismantling the plant and the expected ongoing life of the project. Moundsville Power will provide the report to the Marshall County Commission and request its approval or concurrence of the evaluative expert and each of the periodic reports. The decommissioning fund shall not be part of Moundsville Power's assets. Within 90 days of any report that requires a contribution to the decommissioning fund, Moundsville Power k~7illincrease the LoC, or bond or surety, or make that contribution into an escrow account held by an agent pursuant to an escrow agreement between Moundsville Power and the Marshall County Commission. Reductions to, or withdrawals from, the decommissioning fund shall not be allowed sooner than 90 days after the Marshall County Commission has been offered the opportunity to review the report. The methods for deposits to and disbursements from the 22 decommissioning fund shall be established within and governed by the LoC, bond or surety, or escrow agreement. Furthermore, the LoC, bond or surety, or escrow agreement must clearly reflect the role of the Marshall County Commission and state that the obligations set forth in the agreement applying to Moundsville Power, its successors and assigns. Each report of the qualified independent third party will also be filed with the Commission as a closed entry in this matter. The Coininission retains the right to hire its own evaluative expert to review any of the periodic reports and to take such further action within its jurisdiction as the Coininission determines is necessary to protect the public interest. 1. Moundsville Power shall file evidence of its exempt wholesale generator (EWG) status froin the Federal Energy Regulatory Coinmission prior to commencing commercial operation. in. The siting certificate shall become invalid if Moundsville Power has not commenced a continuous course of construction within five years of the date the final certificate is granted or has not completed construction by the tenth year without petitioning the PSC for approval to expand these time frames. n. If Moundsville Power seeks to transfer its Certificate, Moundsville Power is required pursuant to Siting Rule 7.1 to noti@ the PSC in writing of the identity of the transferee and submit an affidavit from the transferee attesting to the transferee's willingness to abide by the t e r m of a siting certificate, as issued. This condition applies at any time - not just in the operational stage. 0. The PSC directs Moundsville Power to operate the Project within the representations and parameters established in the application and studies included in the Application. If the Project does not operate within those representations and parameters, the PSC may reopen the certificate for hrther investigation upon receipt of a complaint, the request of Staff, or on its own motion. Joint Ex. 1 at 5-8. Upon review of the Joint Stipulation, the Coininission finds that many of the proposed conditions are typical in Siting Certificate orders. We recognize that Moundsville Power has agreed to comply with all of the conditions in Joint Exhibit 1 and conclude that the conditions are reasonable for this Facility. 23 6. Memorandum Agreement with the Trades Council Moundsville Power, Staff, Trades Council and IOGA also agree that the Coininission should approve the Memorandum Agreement dated June 27, 20 14, between Moundsville Power, the Upper Ohio Valley Building and Construction Trades Council, AFL-CIO, and the West Virginia State Building and Construction Trades Council, AFLCIO and make clear that the Commission anticipates that all representations and coininitinents made by the parties will be kept. The Stipulating Parties also agreed that the Coininission should make clear that its approval of the Memorandum Agreement does not mean the Coininission is the proper forum to resolve any disputes that may arise froin operating under the Memorandum Agreement. Joint Ex. 1 at 4-5. The Commission has in previous siting cases approved the Memorandum Agreement and ordered that *‘allrepresentations and coininitments made by the parties therein be kept by the parties.” Mount Storin Wind Force, LLC, Case No. 01-1664-ECN, Coinin’n Order at 31 (Aug. 29, 2002). We see no reason to depart froin this approach. We do note. as we have in the past, that approval of the Memorandum Agreement by the Coininission does not mean the Commission is the proper forum to resolve any disputes that may arise froin operating under the Memorandum Agreement. C. Application of Part Two of the Balancing Test As is explained in Part One above, the Commission concludes that taken as a whole, the positive impacts relating to the various interests outweigh any negative impacts on the various interests in this matter. W.Va. Code 5 24-2-1 IC. In Part Two of the balancing test, the Commission decides whether a project’s public funding, if any, and property tax abatement, if any, offends the public interest. Moundsville Power provided documentation and testimony concerning the PILOT agreement for this Project and the Lease Agreement that is required by the PILOT. Application at 3; Applicant Ex. MJD-D at 7-9; Application Appendix at 71-72 and Appendix Ex. 20; Applicant Ex. 2. All of the parties in the case agreed that the t e r m and conditions between Moundsville Power and the Marshall County Commission relating to the PILOT program do not offend the public interest and the construction and operation of the Facility will result in a substantial positive impact on the local economy and local employment. Joint Ex. 1 at 8. Based on the record, and the significant tax revenues and other economic benefits that will accrue to Marshall County and the State, the Coininission concludes that the PILOT and Lease Agreements do not offend the public interest. Thus, based on the entire record, the Coininission concludes that Moundsville Power should be issued a Siting Certificate for this Project, subject to the conditions adopted in this Order. 24 IV. FINDINGS OF FACT 1. On July 3, 2014, Moundsville Power filed its application for a Siting Certificate pursuant to W.Va. Code $5 24-2-1(c) and 24-2-11c to authorize the construction and operation of a natural-gas fired, base load combined cycle wholesale electric generating facility of approximately 549 MW in Marshall County, including an approxiinately 5 00-foot 138 kV transinission line, interconnection facilities and other necessary appurtenances as more particularly described in the application. See case file generally; Application Appendix Exhibits 13- 15. 2. The Moundsville Power plant will utilize state-of-the-art natural gas-fueled electric generating equipment consisting of two coinbustion turbines that will drive two combustion turbine generators (CTGs). The CTGs will be connected to two heat recovery steain generators that will use exhaust heat from the coinbustion turbines to generate high-quality, superheated steam. The steain will drive a single steam turbine that will drive a steam turbine generator to generate electricity. Application Forin 2, at 2; Application at 2. 3. The Facility will also have cooling towers, a switchyard, a water treatment building, a maintenance building and other associated auxiliary structures. Id. 4. The Facility will receive blended fuel of 25 percent ethane and 75 percent natural gas froin a dedicated pipeline that will be constructed and operated by a third party under contract to Moundsville Power. Application Forin 2, at 2; Application at 3. 5. Ethane, a natural gas by-product from processing local wet gas, usually is transported to Louisiana for processing. Application Appendix at 4, 5, 14. The fuel blend to be used by the plant is not available from local natural gas 6. distribution companies, pipelines or natural gas suppliers. Id. 7. Moundsville Power conducted multiple rounds of a competitive bid process for a third party to design, permit, construct, own, and operate a single purpose pipeline and fuel mixing station to provide he1 supply to the Facility. ADWIV-R at 6. 8. The lowest proposal received was a joint bid from Vineyard Oil & Gas Coinpaiiy and East Resources, Inc. Id. 9. The Pipeline's priinary source for delivery of natural gas will be the Texas Eastern Transinission pipeline (Tetco). &J. at 8. 10. The priinary source of ethane will be Blue Racer Midstream's Natrium natural gas processing plant (BRM). Id. 25 11. The new Pipeline will interconnect to Tetco and BRM about 5.5 miles south of the Facility. Id. 12. The power generated by the Moundsville Power plant will be delivered to the existing AEP Washington Substation located across West Virginia Route 2 via a transmission line of approximately 500 feet in length. Application at 2; Application Forin 2, at 3. 13. General Electric will manufacture the generation equipment and provide preventative and on-call maintenance of it. Application at 2-3. 14. Moundsville Power will enter into a contract with a qualified engineering: procurement and construction contractor to manage construction of the Facility and with a qualified operation and maintenance firm with experience operating a GE combustion turbine plant to operate, manage and maintain the Facility. Id. 15. The plant will be located on a 37.2-acre portion of the 382-acre AlliedHanlin-Olin USEPA Superfund Site that was previously the home of a chemical manufacturing facility. Application Appendix at 3. 16. Upon completion, the Project will be used by Moundsville Power to generate electricity exclusively for wholesale sales in the competitive market. Application Form 2, at 2. 17. Construction of the Facility and the transmission line is estimated to cost approximately $6 15 million. Application Form 2, at 2; Application Appendix at 70. 18. The Project funding will be a combination of equity and term B market loans. Application Appendix at 70. 19. The total economic impact for West Virginia is estimated to be more than $800 million during construction and more than $280 million annually during operation. Application at 3. On November 19, 2014, the Commission conducted a View of the Project 20. area with representatives of Staff, Trades Council and Moundsville Power. 21. the Project. 22. The Coininission received 444 written letters and postcards in support of See case file, generallv. No letters or comments in opposition to the Project were filed. a. On December 2, 2014, Moundsville Power, Staff, Trades Council and 23. IOGA filed a Joint Stipulation, in which they recoininended the Commission grant 26 Moundsville Power a Siting Certificate, subject to certain conditions. Joint Ex. 1 (Tr. at 21, Dec. 9, 2014). 24. On June 27, 2014, Moundsville Power, the Upper Ohio Valley Building and Construction Trades Council, AFL-CIO, and the West Virginia State Building and Construction Trades Council, AFL-CIO, entered into a Memorandum Agreement. Id.at 4-8. 25. Moundsville Power has secured a site for the Facility in an area where there will be a shortage of electric supply resulting from planned retirement of coal-fired plants. Applicant Ex. AWD-D at 6-7. Moundsville Power entered the PJM project queue in March 2013, became 26. a member of the PJM Interconnection in early 2014, and has successfully completed the PJM feasibility study and the system impact study. Id.at 8. 27. Moundsville Power has received its WV DEP Air Permit; has completed its USF WS Section 7 Consultation, West Virginia Department of Natural Resources Lands Inquiry, and State Historic and Preservation Office Phase I archaeological survey; and is actively working with other necessary agencies to obtain necessary permits for the Project. Applicant Ex. JPB-D at 34-41; Applicant Ex. JLY-D at 2-5; Tr. at 25-26. In close proximity to the Project, five power plants have closed or are 28. scheduled to close by 2015, representing a loss of approximately 3,870 MW of generating capacity. Application Appendix at 3. The Facility will help support local electric load balancing through its new 29. generation. Application Appendix at 13. 30. Moundsville Power will fund significant capital upgrades to more than nine miles of local power grid infrastructure. Application at 1. 3 1. The Project is located in the PJM power market. Application Appendix at 1; Applicant Ex. JPB-D at 7. 32. The federal Energy Information Administration's Annual Energy Outlook for 2014 projects that coal-fired power plant closures will total 60 gigawatts by 2020, with 90 percent of the closures to occur by 20 16. Application Appendix at 13. 33. Monitoring Analytics's Quarterly Market Report for January through June 2014 states that 25,902.2 MW are planned to be retired through 2019, with all but 2,050.5 MW retired by the end of 20 15. Id. 34. More than 77.4 percent of the retirements discussed by Monitoring Analytics are coal-fired plants. Id. 27 35. The AEP zone accounts for 6,024 MW or 23.6 percent of the total PJM retirements. Applicant Ex. JPB-D at 8. 36. Additional coal plant retirements may result from requirements of the federal Environmental Protection Agency’s Cross-State Air Pollution Rule or Clean Power Plan. Id. 37. Of the 90,597 MW of coal-fired steam powered generation in PJM, 84 percent is older than 30 years, which may lead to additional retirements as plants near the ends of their useful lives. Id. 38. The Moundsville Power Facility will function as a base load fully dispatched generating facility. Application Appendix at 1. 39. When the Moundsville Power Facility is operating at full capacity, it will deliver approximately 4,700,000 MWh to the grid annually. Id.at 16-17. 40. Using 2013 dollars, $105 million per year of natural gas will be sourced through long-term fuel agreements with West Virginia producers and processors; three>‘earconstruction period impacts will result in inore than 3,000 job years, $191 million in employee compensation, $227 million in value added and $400 million in output; and first hll-year of operation impacts will result in 420 full- and part-time jobs, $26 million in employee compensation, $5 1 million in value added and nearly $208 million in output. Application Appendix at 74-75; Application Appendix Ex. 22. 41. Using 2013 dollars, the total economic impact for West Virginia will be more than $800 million during construction and more than $280 million annually during operation. Application at 3. 42. Moundsville Power will employ 30 permanent workers at the Facility upon commencement of operation. Application at 3; Tr. at 30, 46. 43. The PILOT and Lease Agreements will generate approximately $34.4 to $43.4 million in new revenues during the 30-year period and Marshall County and West Virginia will secure about $285 million annually, or more than $8 billion over thirty years, in positive econoinic benefit. Staff Ex. JA-D at 3. 44. More than one million craft worker hours m7ill be needed to construct the Project, and that the size of the project and the amount of construction employment needed will have a substantial positive impact on the local economy and local employment. Construction Trades Ex. SW-D at 2. 28 45. The entire construction project will create 1,344 jobs for West Virginia and that the construction will generate $55.4 million in wages for workers and $9.9 million in State tax revenues annually. Construction Trades Ex. MJ-D at 6-7. 46. The closest homes are about 400 feet froin the proposed plant and are generally at elevation 743 feet above mean sea level. Application Ex. P B - D at 8-9; Tr. at 35. 47. The elevation of the plant will be at 717 feet, or some 26 feet lower than the ground surface at the closest residences. Id. 48. The earthen slope from the plant grade to West Virginia Route 2 will provide a partial visual and noise barrier between the plant and the Washington Lands Community. Id. Only two of the Facility’s structures are taller than 100 feet: the two heat 49. recovery steam generators will be approximately 110 feet in height and the two heat steam recovery generator stacks will be about 180.5 feet in height. Application Appendix at 52. 50. Many of the other Facility structures are less than 40 feet high. Id. 51. Within a 20-mile radius of the plant, only 0.9 to 1.0 percent (2,829 to 3,268 acres) will have some visibility of the Project. Application Appendix Ex. 17 at 9. 52. A 1,200-foot high ridge between Moundsville and the plant shields the Cities of Moundsville and Glen Dale froin any view of the Project. Id.at 12; Tr. at 42. 53, No state parks, national wildlife preserves, state refuges, state wildlife management areas, national landmarks, national parks, national recreation areas, scenic rivers, scenic highways or other sensitive features have visibility of the Project. Application Appendix Ex. 17 at 8. 54. Moundsville Power has incorporated mitigation of view within its design plan through the substantial planting of trees and shrubs in the 2.6-acre area between the Facility and West Virginia Route 2. Applicant Ex. JPB-D at 5-6. 55. Moundsville Power will file a Federal Aviation Administration notice of height and location of cranes and stacks. Applicant Ex. JPB-D at 39. Moundsville Power does not expect that a notice of aviation hazard will be 56. issued, but flags and warning lights may be required. Id. The area where the Facility will be located is industrial, with the Williams 57. Ohio Valley Midstream Fractionation Plant adjacent to the Project Site and the AEP Washington Substation directly across West Virginia Route 2 and adjacent to the Washington Lands community. Application Appendix at 75. 29 58. The site is zoned industrial and was operated as a chemical manufacturing facility from 1953 through 1991. Id. 59. Noise data was collected for ten days in November 2013 at four monitoring locations in the vicinity of the proposed Facility. Application Appendix Ex. 25 at 10-11; Tr. at 43. 60. Road noise from West Virginia Route 2 was prevalent at three of the four inonitoring locations in the study. Other sources of noise included the Washington Substation, Williams Fractionation Plant and river and rail traffic. Application Appendix at 8 1; Applicant Ex. JLY-D at 5. 61. Ambient noise levels mostly from West Virginia Route 2 dominate the background for homes in the vicinity as well as the Moundsville Country Club and the Washington Lands Elementary School, even during the evening hours. Id. 62. During the daytime, ambient noise levels at the Washington Lands Church monitoring location range from 65 to SO dBC. The evening and nighttime levels are not substantially lower than daytime, being 62-72 dBC. Applicant Ex. JLY-D at 5. 63. The Noise Study assessed the operation of earth moving equipment, driving of piles, erection of structures, truck or other traffic, and installation of Facility equipment. No dynamiting activities are expected to occur during construction of the Facility and major construction will not occur at nighttime. Applicant Ex. JLY-D at 6. 64. The modeling used a very conservative method by assessing inaxiinuin noise possible if all construction equipment operated at the same time at one location, resulting in a maximum noise value for a condition which will never occur. Id. 65. Because the construction site is lower than trees, the adjacent road and structures, most locations near the Site will have at least 10 dB of shielding and any potential increase in ambient noise levels during construction, if any, should be very minimal. Id.;Tr. at 43. 66. Moundsville Power will mitigate the noise during construction in several a) b) c) the placement of various physical elements at the site. the selection of materials for building walls and insulation, the installation of permanent noise mitigation techniques to lessen noise during start-up and commissioning. scheduling the loudest activities to occur during daylight hours. using noise mitigation equipment on trucks and cranes, minimizing the idling time of large trucks, and ways; d) e) f) 30 g) installing two rows of trees on the Facility side of West Virginia Route 2 as soon as practically possible. JLY-D at 6. 67. Operational noise levels were modeled at set distances from the boundary or perimeter of the power plant. Applicant Appendix at 41-42; Tr. at 44. 68. Measuring sound at the boundary of the power plant provides higher noise estimates because such measurements do not take into account that several of the noisegenerating features at the power plant are located within the complex, shielded by other plant buildings. Id. The closest residences are within 350 feet of the Project boundary and 69. about 400 feet froin the Facility. Applicant Ex. JLY-D at 5 : 7. 70. With 5 dB of shielding from the Facility, these residences would have values that range from 68.3 dBA to 70.8 dBA, or values which are within the ambient noise levels. Id. 71. Homes can attenuate noise up to 27 dB with an average of 25 dB so the resulting indoor Ldll value would be 43.3 dBA to 45.8 dBA, values that are protective of sleeping residences. Applicant Ex. JLY-D at 5, 7. 72. Moundsville Power’s noise mitigation efforts are expected to provide approximately 10 db of shielding. Id.at 6. 73. Moundsville Power will plant trees along the Facility side of West Virginia Route 2 and has offered to plant trees along Washington Lands’ border of Route 2. Id.at 7; Tr. at 44. 74. The Facility layout was designed to help mitigate noise by placing an acoustic shell over the steam turbine and positioning non-noise structures in front of noise generating equipment. Id. 75. Moundsville Power has received its Air Permit from WV DEP, Division of Air Quality. Application Appendix at 8, 24; Tr. at 23, 25. 76. The primary source of water for plant operations will be a dedicated intake on the bank of the Ohio River. Application Appendix at 26. 77. Facility process water will consist primarily of cooling tower blowdown and oil water separator effluent. Id. Following treatment, the Facility will discharge approximately 209 gallons 78. per minute of treated water into the Ohio River. Id. 31 79. The Facility will receive water from Marshall County PSD #2 for drinking and sanitary uses, fire control and dust suppression. Id. 80. The Facility will not consume groundwater and will not affect current water table levels. Application Appendix at 65. 81. No aquifers will be affected by the Project, and there will be no injection of process waters into the ground. Id.at 67. 82. USFWS has made a "no-effect" deterinination which indicates that the Project will not affect federally-listed endangered or threatened species. Application Appendix Ex. 23; Application Appendix at 77. 83. WV DNR has indicated that the Project is not in the vicinity of any State species of concern or federally listed threatened or endangered species. Application Appendix Ex. 24; Application Appendix at 77. 84. The average daily traffic volume during construction, including delivery trucks, delivery vehicles and workers, is estimated at 1,375, which is a 15 percent increase in ADT. Application Appendix Ex. 26 at 6. 85. Moundsville Power will stagger worker shifts so all of the construction workers will not be coining into, and then leaving, the Site at the same time. Tr. at 45, 57. 86. Moundsville Power will work with the principal of the Washington Lands Elementary School to be sure the construction traffic does not interrupt or delay school bus traffic. &J. at 57. 87. When the plant begins operating, 30 vehicles will enter and exit the Site each day, which will raise the ADT value along West Virginia Route 2 by approximately 90, which will not cause a noticeable impact. Applicant Ex. DMK-D at 4. 88. Moundsville Power does not expect a negative impact on area property values froin the Project. Application Appendix at 75. b 89. Moundsville Power does not anticipate any negative impacts to the local infrastructure because of either the construction or operations of the proposed Facility. Id. 90. Moundsville Power has entered into a PILOT (payment in lieu of taxes) agreement with the Marshall County Board of Education and the Marshall County Cominission whereby Moundsville Power will be exempt from ad valorem property tax for 30 years and will inake payments for proportional distribution to the Board of Education and the Marshall County Cominission. Application at 3; Applicant Ex. MJD- 32 D at 7-9; Application Appendix at 71-72 and Application Appendix Ex. 20; Applicant Ex. 2. 91. The PILOT agreement requires a Lease Agreement, and Moundsville Power has entered into the Lease Agreement with the Marshall County Commission. Moundsville Power will make an upfront payment of $970,000 and annual lease payments for 30 years totaling approximately $39,292,865. Id. 92. The basic rent schedule can be reduced by a job credit of up to $300,000 annually, resulting in a total rent agreement package of $3 1,262,865 to $40,262,865. 93, Marshall County currently receives $2,500 annually in ad valorem property taxes for the tract where the plant will be located. Applicant Ex. MJD-D at 12. 94. All parties agreed that the terms and conditions between Moundsville Power and the Marshall County Coininission relating to the PILOT program do not offend the public interest and the construction and operation of the Facility will result in a substantial positive impact on the local economy and local employment. Joint Ex. 1 at 8. V. CONCLUSIONS OF LAW 1. The Project will provide wholesale electric service, and there will be no direct financial impact to West Virginia retail ratepayers. 2. Moundsville Power filed a complete application that satisfied the requirements of the Coininission Siting Rules. Moundsville Power demonstrated a sufficient interest in constructing the 3. Project. First, Moundsville Power has shown that it has a legitimate business purpose in undertaking the Project and has retained various technical experts and developed detailed information in support of its application. Second, it has expended substantial time and economic resources to apply for a Siting Certificate and to obtain various other permits, agreements and real property interests necessary to construct and operate the Project. Third, Moundsville Power has coininitted to coordinating its activities with the Coininission and other state and federal agencies. 4. Need for this Project has been established because it is in the public interest to develop diversified sources of fuel to generate electricity, including alternatives such as natural gas and natural gas by-products; additional generation capacity is needed to meet PJM's projected load forecast in light of the many coal-fired plant closures; it is in the public interest for West Virginia to participate in the interconnected electric system: and Moundsville Power's base load combined cycle h l l y dispatched generating facility will assist in meeting the daily demand for electric service. 33 5. It is not in the public interest for this Commission to isolate West Virginia from the region. The power grid is interconnected, and to safeguard the availability of productive, well-maintained resources to our State's residents, West Virginia must participate in the interconnected electric system. Different economic simulation models provided consistent and uncontested 6. results that there will be a significant economic gain to both the state and local economy from the construction and operation of the Project. 7. The Project is located in an industrial area. 8. While portions of the heat recovery steam generator stacks will be visible from about one percent of the area within 20 miles of the Project, the impact of the presence of the Project and view of the Project will be ininimally disruptive to the coininuni ty . 9. The Moundsville Power noise study complied with Commission requirements and accurately portrayed ambient sound levels for the Washington Lands community. 10. Based upon the totality of the evidence, the Project's construction and operational sound levels are expected to be similar to existing ambient sound levels and noise impacts are not expected to be objectionable. 11. The Commission is satisfied that construction of the Moundsville Power Project will not cause any substantial problems or difficulties with respect to existing traffic patterns. 12. Because the ADT for the affected areas will only show a slight increase in traffic when the plant begins operations, the Commission concludes the Project will not have a significant or substantial impact on traffic in and around the Project area. 13. The Joint Stipulation, including the conditions for this Facility agreed to by the parties, is reasonable in this proceeding and will be adopted. 14. Taken as a whole, the positive impacts of the Project relating to the various interests outweigh any negative impacts on the various interests in this matter. See W.Va. Code fj 24-2-1 IC. 15. In light of the significant tax revenues and other economic benefits that will accrue to Marshall County and the State from the Project, the Commission concludes that the PILOT and Lease agreements do not offend the public interest. W.Va. Code fj 24-21lC(C). 34 16. Based on the entire record and the analysis contained in this Order, the Coininission concludes that Moundsville Power should be issued a Siting Certificate for this Project, subject to the conditions adopted in this Order. VI. ORDER IT IS THEREFORE ORDERED that Moundsville Power is granted a Siting Certificate, pursuant to W. Va. Code tj 24-2-1 IC, for the construction and operation of a natural-gas fired wholesale electric generating facility of approximately 549 MW in Marshall County including an approximately 500-foot 138 kV transmission line, interconnection facilities and other necessary appurtenances as fully described in the application and discussed in this Order, subject to the following conditions: a. At least 30 days prior to beginning construction or any activity on a particular component part of the Project, Moundsville Power shall provide to Staff (but is not required to file) a copy of the detailed plans for such particular component part. b. At least 30 days prior to beginning construction or any activity on the Project, Moundsville Power shall file a verified statement that provides proof that all permits, approvals, certifications, notices and consultations required prior to the start of construction or activity have been obtained, including the following: 1. 2. 3. 4. 5. 6. 7. 8. c. Air Quality Permit State Historic Preservation Office Approval USFWS Section 7 Consultation WV DNR Lands Inquiry Department of the Army Encroachment Permit (wetlands and jurisdictional waterways on property) State 401 Water Quality Certification (wetlands and jurisdictional waterways on property) WV DNR Stream Activity Perinit Site Plan Approval, Grading Permit, Erosion and Sediment Control Plan Approval After the filing of the verified statement in Condition b above, and upon Moundsville Power’s construction of additional component parts of the Project, Moundsville Power shall file, at least 30 days prior to beginning construction or any activity on each component part of the Project, a verified statement that provides proof that all permits, approvals, certifications, notices and consultations required prior to the start of any construction or any activity for such component part have been obtained; provided, however, that some permits, such as the heavy haul and 35 building permits, are not available until immediately before the activity, and they will be submitted as soon as practicable. d. Fuel for the Project will be delivered through a blending station and pipeline to the plant, constructed, operated and owned by a third party (the Pipeline Project). Prior to the beginning of construction on any component part of the Pipeline Project, Moundsville Power shall file a verified statement that provides proof that binding contracts are in place for: 1. Installation and construction of adequate natural gadethane delivery points, including Federal Energy Regulatory Commission (FERC) certificates, if required, for new delivery points on interstate pipelines and/or ethane pipelines. 2. Construction of appropriate natural gadethane blending facilities. 3. Construction and operation of the pipeline necessary to deliver the blended (or non-blended) fuel to the plant site, including all necessary measurement and pressure regulation equipment. 4. An adequate fuel supply e. The verified statement filed in connection with Condition d above shall also provide proof that all options for, or rights of way, and all required permits necessary for the construction and operation of such component part of the Pipeline Project have been obtained. f. Moundsville Power shall file a copy of its Interconnection Agreement between Moundsville Power and P JM before commencing construction. g. Moundsville Power shall plant in a staggered pattern along the West Virginia Route 2 right of way, trees and shrubs, using native plants to the extent possible, including White Pine, American Holly and Pitch Pine, between six and eight feet tall, and underlying evergreen and densely growing shrubs (Black Haw, Witchhazel, Spicebush and Eastern Wahoo) between one and three feet tall. Moundsville Power may use some native deciduous trees (such as Red Maple, Sugar Maple, Big Tooth Aspen, Northern Red Oak, White Oak, Shellbark Hickory and River Birch) between six and eight feet tall for variety and seasonal variation. Approximately 200 trees aiid 100 shrubs will be planted. h. Care of the trees and shrubs shall be incorporated into the operations and maintenance plan for the site. Any tree or shrub that does not survive will be replaced in kind. 36 i. Moundsville Power shall conduct plant communications via telephone or two-way radio and not via a public address system. j. Moundsville Power, and its contractors, shall stagger the hours of construction and operation to minimize the project's impact on traffic conditions near the site, including school bus travel on West Virginia Route 2. k. Moundsville Power shall provide an independent expert report on the amount needed to decoinmission the facility and post a Letter of Credit (LoC), purchase a bond or surety, or place the present value of such an amount in an escrow fund prior to beginning operation. Moundsville Power recognizes that the plant value far exceeds the decommissioning costs in the first five years of its service life. Nevertheless, the initial LoC, bond or surety, or escrow account shall be no less than $250,000 to cover the cost of soliciting and engaging a decoinmissioning company. The report shall be updated thereafter as mutually agreed between Moundsville Power and the Marshall County Commission, but no less frequently than every five years thereafter. The decommissioning fund amount inay vary over time depending on changes in the estimated market or salvage value of the Project, the estimated cost of dismantling the plant and the expected ongoing life of the project. Moundsville Power will provide the report to the Marshall County Coininission and request its approval or concurrence of the evaluative expert and each of the periodic reports. The decommissioning fund shall not be part of Moundsville Power's assets. Within 90 days of any report that requires a contribution to the decommissioning fund, Moundsville Power will increase the LoC, or bond or surety, or make that contribution into an escrow account held by an agent pursuant to an escrow agreement between Moundsville Power and the Marshall County Commission. Reductions to, or withdrawals from, the decoininissioning fund shall not be allowed sooner than 90 days after the Marshall County Commission has been offered the opportunity to review the report. The methods for deposits to and disbursements froin the decoininissioning fund shall be established within and governed by the LoC, bond or surety, or escrow agreement. Furthermore, the LoC, bond or surety, or escrow agreement must clearly reflect the role of the Marshall County Commission and state that the obligations set forth in the agreement apply to Moundsville Power, its successors and assigns. Each report of the qualified independent third party will also be filed with the Commission as a closed entry in this matter. The Commission retains 37 the right to hire its own evaluative expert to review any of the periodic reports and to take such further action within its jurisdiction as the Commission determines is necessary to protect the public interest. 1. Moundsville Power shall file evidence of its exempt wholesale generator (EWG) status from FERC prior to commencing commercial operation. in. The siting certificate shall become invalid if Moundsville Power has not commenced a continuous course of construction within five years of the date the final certificate is granted or has not completed construction by the tenth year without petitioning the PSC for approval to expand these time frames. n. If Moundsville Power seeks to transfer its certificate, Moundsville Power is required pursuant to Siting: Rule 7.1 to notify the PSC in writing of the identity of the transferee and subinit an affidavit from the transferee attesting to the transferee's willingness to abide by the t e r m of a siting certificate, as issued. This condition applies at any time - not just in the operational stage. 0. The PSC directs Moundsville Power to operate the Project within the representations and parameters established in the application and studies included in the Application. If the Project does not operate within those representations and parameters, the PSC may reopen the certificate for further investigation upon receipt of a complaint, the request of Staff: or on its own motion. IT IS FURTHER ORDERED that the Joint Stipulation and Agreement for Settlement submitted by Moundsville Power, Staff, Trades Council and IOGA, attached to this Order as Appendix A, is approved and adopted. IT IS FURTHER ORDERED that, pursuant to W. Va. Code tj 24-2-1 lc(h), all of the terms and conditions of this Order apply to any subsequent owners or operators of the Moundsville Power Project. IT IS FURTHER ORDERED that the Memorandum Agreement dated June 27, 20 14, between Moundsville Power, the Upper Ohio Valley Building and Construction Trades Council, AFL-CIO, and the West Virginia State Building and Construction Trades Council, AFL-CIO is approved in relation to the Moundsville Power Project. The Commission anticipates that all representations and coinmitinents made by the parties therein t17ill be kept by the parties. IT IS FURTHER ORDERED that approval of the Memorandum Agreement by the Commission does not mean the Commission is the proper forum to resolve any disputes that may arise under the Memorandum Agreement. 38 IT IS FURTHER ORDERED that upon entry hereof, this case shall be removed from the Commission's open docket. IT IS FURTHER ORDERED that the Executive Secretary of the Commission serve a copy of this Order by electronic service on all parties of record who have filed an e-service agreement, by United States First Class Mail on all parties of record who have not filed an e-service agreement, and on Staff by hand delivery. A True Copy, Teste, - , " > x j - ~ < % ' Ingrid Ferrell, Executive Secretary CLW/sek 14 122 1cb.doc 39 PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON APPENDIX A CASE NO. 14-1221-E-CS MOUNDSVILLE POWER, LLC Application for a Siting Certificate to Authorize the Construction and Operation of a Wholesale Electric Generating Facility in Marshal1 County, West Virginia JOINT STIPULATION AND AGREEMENT FOR SETTLEMENT Pursuant to W. Va. Code $6 24-1-7, 24-2-l(c)and 24-2-1 I C and RuIes 12 and 13 of the Public Service Commission of West Virginia’s (the “Commission”) Rules of Practice and Procedure, Moundsville Power, LLC (“Moundsville Power”), the Staff of the Public Service Commission of West Virginia (“Staff’), the West Virginia State Building and Construction Trades Council, AFL-CIO (“Building Trades”), the Independent Oil and Gas Association of West Virginia, Inc. (“IOGA”, and together with Moundsville Power, Staff, and the Building Trades, the “Parties”) join in this Joint Stipulation and Agreement for Settlement (“Joint Stipulation”) and propose and recommend to the Commission that it approve and adopt this settlement among the Parties of all issues raised in Case No. 14-1221-E-CSYon the terms and conditions set forth below. The Joint Stipulation resolves all of the issues in this proceeding, and recommends that the Commission grant MoundsviIle Power its requested electric generating facility siting certificate and any and all other necessary approvals required by the Commission for the construction and operation of a wholesale electric generating facility, including the related transmission support line, associated interconnection facilities, and other necessary appurtenances, subject to the conditions set forth in this Joint Stipulation. In support of the Joint Stipulation, the Parties submit the following: r. 1, PROCEDURAL HISTORY On July 3, 2014, Moundsville Power filed with the Commission an Application for a Siting Certificate pursuant to West Virginia Code $$ 24-2-1(c) and 24-2-1 I C to authorize the construction and operation of a natural-gas fired wholesale electric generating facility of approximately 549 MW (the “Facility” or the “Project”) in Marshall County including an approximately 500-foot 13 8 kV (less than 200,000 volts) related transmission support line, associated interconnection facilities, and other necessary appurtenances as more particularly described in the Application and attached documents. 2. On July 16,2014, the Building Trades filed a petition to intervene. 3. On July 30, 2014, Staff filed its Initial Joint Staff Memorandum. 4. On August 8, 2014, IOGA filed a petition to intervene. On August 12, 2014, Mountaineer Gas Company (“MGC”) filed a petition to intervene but withdrew the same on August 22,2014. 5. By Order dated September 5, 2014, the Commission granted the Building Trades’ and IOGA’s petitions to intervene, granted MGC’s withdrawal of its petition to intervene, and also established a procedural schedule for the matter which called for the filing of Moundsville Power’s direct testimony on September 11, 2014, the filing of Intervenor direct testimony and rebuttal testimony to Moundsville Power on October 2, 2014, the filing of Staff direct and rebuttal testimony on November 5, 2014, a deadline for discovery requests of November 12, 2014, a site visit and public comment hearing on November 19, 2014, the filing of Moundsville Power’s rebuttal testimony, and the filing of intervenors’ rebuttal testimony to Staff and other intervenors on December 2, 2014, a deadline to file a proposed order of witnesses for the evidentiary hearing and any motion(s) to excuse witnesses on December 4, 2014, and an 2 evidentiary hearing to begin on December 9, 2014, and continuing on December 10 and 11, 2014, if necessary. Relative to the site visit, the Commission ordered the Parties to file, no later than November 12, 2014, a proposed list of locations to be visited, and thereafter, at least three business days prior to the site visit, to jointly file a written description of each viewpoint. The Order further required Moundsville Power to cause to be published, one time during the period of November 5-12, 2014, in Marshall and Kanawha Counties, a Notice of Public Comment Hearing. The Order also required Moundsville Power to cause to be published, one time during the period of November 25-December 2, 2014, in Marshall and Kanawha Counties, a Notice of Evidentiary Hearing. The Order also granted the waiver of certain certificate filing requirements and certain other Commission filing, reporting, and other requirements that are specific to regulated public utilities. 6. Moundsvile Power filed the Direct Testimonies of John P. Black, P.E., Andrew W. Dorn, Jr., Matthew J. Dorn, CPA, David Mark Kiser, Laidiey Eli McCoy, Ph.D., Kani Rogers, Tom S. Witt, Ph.D., and Jessica L. Yeager on September 1 1,2014. 7. On October 2, 2014, the Building Trades filed the Direct Testimony of Steve White and the Direct Testimony of Michael Jim 8. On various dates, the Staff fiIed discovery requests to Moundsville Power, and MoundsvilIe Power answered the same, on various dates, by discovery responses. 9. On November 6, 2014, Staff filed the Direct Testimonies of Josh Allen, Eric F. deGruyter, Karen A. McClure, and Donald E. Walker. In its Direct Testimony, Staff recommended the Commission adopt various conditions to a Siting Certificate granted Moundsville Power in this case. 3 10. The Parties jointIy filed the Viewpoints and Viewpoint Descriptions for the Commission View on November 7,2014. 11. On November 14, 2014, Moundsville Power filed affidavits of publication reflecting that publication of the Notice of Public Comment Hearing occurred on November 6, 201 4,in The Moundsville Daily Echo (Marshall County) and The Charleston Gazette (Kanawha County). 12. The site visit was conducted as scheduled on November 19, 2014, and the public comment hearing was also held as schedured on November 19,2014. 13. Moundsville Power filed the Rebuttal Testimonies of John P. Black, F.E. and Andrew W. Dorn, IV on December 2,2014. 14. During the pendency of this case, over 430 letters and postcards in support of the Project have been filed with the Commission, with no letters or postcards in opposition to the Project having been filed. 15. The Parties have engaged in settlement discussions encompassing the issues raised in this case. Based on those discussions, the Parties have reached agreement that a siting certificate for the Project should be granted to Moundsville Power with the conditions being proposed to the Commission herein, and have reached the settlement embodied in this Joint Stipulation which they recommend to the Commission for adoption, 11. 16. SETTLEMENT The Parties agree that the Commission should approve the Memorandum Agreement dated June 27, 2014, between Moundsville Power, LLC, the Upper Ohio Valley Building and Construction Trades Council, AFL-CIO, and the Building Trades (collectively the “Signatories”), and make clear that the Commission anticipates that all representations and 4 commitments made by the Signatories therein shall be kept by the Signatories. The Signatories further agree that the Commission should make clear that its approval of the Memorandum Agreement does not mean the Commission is the praper forum to resolve any disputes that may arise from operating under such Agreement. 17. The Parties agree and recommend to the Commission that the Siting Certificate requested by Moundsville Power in this case be granted to Moundsville Power, and that the Siting Certificate be subject to the following conditions: a. At least 30 days prior to beginning construction or any activity on a particular component part of the Project Moundsville Power shall provide to Staff (but is not required to file) a copy of the detailed plans for such particular component part. b. At least 30 days prior to beginning construction or any activity on the Project, Moundsville Power shall file a verified statement that provides proof that all permits, approvals, certifications, notices, and consultations required prior to the start of construction or activity have been obtained, including the following: 1. 2. 3. 4. 5. 6. 7, 8. c. Air Quality Permit State Historic Preservation Office (SHPO) Approval U.S. Fish and Wildlife Service Section 7 Consultation WV DNR Lands Inquiry Department of the Army Encroachment Permit (wetlands and jurisdictional waterways on property) State 40 1 Water Quality Certification (wetlands and jurisdictional waterways on property) WV DNR Stream Activity Permit Site Plan Approval, Grading Permit, Erosion and Sediment Control Plan Approval After the filing of the verified statement in Condition b above, and upon Moundsville Power’s construction of additional component parts of the Project, Moundsville Power shall file, at least 30 days prior to beginning construction or any activity on each component part of the Project, a verified statement that provides proof that all permits, approvals, certifications, notices, and consultations required prior to the start of any construction or any activity for such component part have been obtained; provided, however, that some permits, such as the heavy haul and building permits, are not available until immediately before the activity, and they will be submitted as soon as practicable. 5 d. Fuel for the Project will be delivered through a blending station and pipeline to the plant, constructed, operated and owned by a third party (the “Pipeline Project”), Prior to the beginning of construction on any component part of the Pipeline Project, Moundsville Power shall file a verified statement that provides proof that binding contracts are in place for: 1. Installation and construction of adequate natural gadethane delivery points, including FERC certificates, if required, for new delivery points on interstate pipelines and/or ethane pipelines. 2. Construction of appropriate natural gadethane blending facilities, 3. Construction and operation of the pipeline necessary to deliver the blended (or non-blended) fuel to the plant site, including aIi necessary measurement and pressure regulation equipment. 4. An adequate fuel supply e. The verified statement filed in connection with Condition d above shall also provide proof that all options for, or rights of way, and all required permits necessary for the construction and operation of such component part of the Pipeline Project have been obtained. f. Moundsville Power shall fiie a copy of its Interconnection Agreement between Moundsville Power and PJM before commencing construction. g. MoundsviHe Power shall plant in a staggered pattern along the West Virginia Route 2 right of way, trees and shrubs, using native plants to the extent possible, including White Pine, American Holly and Pitch Pine, between six and eight feet tall, and underlying evergreen and densely growing shrubs (Black Haw, Witchhazel, Spicebush and Eastern Wahoo) between one and three feet tall. Moundsville Power may use some native deciduous trees (such as Red Maple, Sugar Maple, Big Tooth Aspen, Northern Red Oak, White Oak, Shellbark Hickory and River Birch) between six and eight feet tall for variety and seasonal variation. Approximately 200 trees and 100 shrubs will be planted. h. Care of the trees and shrubs shall be incorporated into the operations and maintenance plan for the site. Any tree or shrub that does not survive will be replaced in kind. I. Moundsville Power shall conduct plant communications via telephone or two-way radio and not via a public address system. 6 j, Moundsville Power, and its contractors, shall stagger the hours of construction and operation to minimize the project's impact on traffic conditions near the site, including school bus travel on Route 2. k. Moundsville Power shall provide an independent expert report on the amount needed to decommission the facility and post a Letter of Credit ("Loc"), purchase a bond or surety, or place the present value of such an amount in an escrow fund prior to beginning operation. Moundsville Power recognizes that the plant value far exceeds the decommissioning costs in the first five (5) years of its service life. Nevertheless, the initial LoC, bond or surety, or escrow account shall be no less than $250,000 to cover the cost of soliciting and engaging a decommissioning company. The report shall be updated thereafter as mutually agreed between Moundsville Power and the Marshall County Commission, but no less frequently than every five (5) years thereafter. The decommissioning fund amount may vary over time depending on changes in the estimated market or salvage value of the Project, the estimated cost of dismantling the plant and the expected ongoing Iife of the project. Moundsville Power will provide the report to the Marshall County Commission and request its approval or concurrence of the evaluative expert and each of the periodic reports. The decommissioning fbnd shall not be part of Moundsville Power's assets. Within ninety (90) days of my report that requires a contribution to the decommissioning fund, Moundsville Power will increase the LoC, or bond or surety, or make that contribution into an escrow account held by an agent pursuant to an escrow agreement between Moundsville Power and the Marshall County Commission. Reductions to, or withdrawal from, the decommissioning h n d shaII not be allowed sooner than ninety (90) days after the Marshall County Commission has been offered the opportunity to review the report. The methods for deposits to and disbursements from the decommissioning fund shall be established within and governed by the LoC, bond or surety, or escrow agreement. Furthermore, the LoC, bond or surety, or escrow agreement must clearly reflect the role of the Marshall County Commission and state that the obligations set forth in the agreement apply to Moundsville Power, its successors and assigns, Each report of the qualified independent third party will also be filed with the Commission as a closed entry in this matter. The Cornmission retains the right to hire its own evaluative expert to review any of the periodic reports and to take such further action within its jurisdiction as the Commission determines is necessary to protect the public interest. 7 I. Moundsvifle Power shall file evidence of its EWG status from FERC prior to commencing commercial operation. rn. The siting certificate shall become invalid if Moundsville Power has not commenced a continuous course of construction within five (5) years of the date the final certificate is granted or has not completed construction by the lothyear without petitioning the PSC for approval to expand these time frames. n. If Moundsville Power seeks to transfer its certificate, Moundsville Power is required pursuant to Siting Rule 7.1 to notify the PSC in writing of the identity of the transferee and submit an affidavit from the transferee attesting to the transferee’s willingness to abide by the terms of a siting certificate, as issued. This condition applies at any time - not just in the operational stage. 0. The PSC directs MoundsvilIe Power to operate the Project within the representations and parameters established in the application and studies included in the Application. If the Project does not operate within those representations and parameters, the PSC may reopen the certificate for further investigation upon receipt of a complaint, the request of Staff, or on its own motion. 18. The Parties agree that the terms and conditions of the agreement between Moundsville Power and the Marshall County Commission reIating to the PILOT program do not offend the public interest and the construction and operation of the facility will result in a substantial positive impact on the locaI economy and local employment. 19. The Parties agree that nothing in this Joint Stipulation shall be interpreted 0 preclude any of the Parties from taking any position it may choose on any of the issues discussed herein in other siting certificate cases, 20. This Joint StipuIation is entered into subject to the acceptance and approval of the Commission, and will have no effect whatsoever until and unless approved by the Commission in all of its material terms. It results from a review of all fiIings in this case, the Parties’ prefiled testimony, and discovery and discussion. It reflects compromises by the Parties and the withdrawal of their respective positions asserted in this case, and is being proposed to avoid costly litigation between the Parties. The Parties propose this Joint Stipulation without adopting 8 any of the compromise positions that may be set forth herein as regulatory principles applicable to future proceedings, The Parties support and recommend this Joint Stipulation as being in the public interest and as a fair, reasonable, and complete resolution o f all the issues raised in this proceeding. The Parties acknowledge that it is the Commission’s prerogative to accept, reject, or modify any stipulation. In the event that the Joint Stipulation is modified or rejected by the Commission, it is expressly understood that the Parties are not bound to accept the Joint Stipulation as modified or rejected, and that they may avail themselves of whatever rights are available to them under law and the Commission’s Rules of Practice and Procedure. WHEREFORE, the Parties, on the basis of the foregoing, respectfully request the Commission issue findings of fact and conclusions of law granting Moundsville Power LLC its Siting Certificate consisting of a natural-gas fired wholesale electric generating facility of approximately 549 MW in Marshall County including an approximately 500-foot 138 kV (less than 200,000 volts) related transmission support line, associated interconnection facilities, and other necessary appurtenances as more particularly described in Moundsvilie Power’s Application, subject to the conditions set forth in this Joint Stipulation. Respectfully submitted this !zh& day of December, 2014. MOUNDSVILLE POWER, LLC &Y?-:Lq Lee F. Feinberg (WV S d B a r #1173) Susan J. Riggs (WV State Bar #5246) SPILMAN THOMAS & BATTLE, PLLC SpiIman Center 300 Kanawha Boulevard, East Charleston, West Virginia 25301 (304) 340-383 I lfeinberg@spilmannlaw.com sr&gs@,spilmanlaw.com 9 STAFF OF THE PUBLIC COMMISSION2F WEST VIRGINIA SERVICE Linda S. Bouvette (WV State Bar #5926) 301 Brooks Street Charleston, West Virginia 25301 (304) 340-0763 1bouvetteapsc.state.wv.us _WEST VIRGINIA STATE BUILDING AND CONSTRUCTION TRADES COUNCIL (AFL-CIO) Vincent Trivelli (WV State Bar #8015) The Law Ofice of Vincent Trivelli, PLLC 178 Chancery Row Morgantown, WV 26505 (304) 291-5223 vmtriv@,westco.net INDEPENDENT OIL AND GAS . Patterson 111 (WV State Bar #283 1) P.O. Box 1386 Charleston, WV 25325-1386 (304)347-1118 gpatterson@,bowlesrice.com 6743582 10