PUBLIC SERVICE C O ~ ~ I S S I O N
OF WEST VIRGINIA
CHARLESTON

At a session of the PUBLIC SERVICE COMMISSION OF WEST V RGINIA n
the City of Charleston on the 27thday of October 2017.
CASE NO. 17-0036-E-CS
ESC HARRISON COUNTY POWER, LLC,
Application for a Siting Certificate to authorize the
construction and operation of a wholesale electric
generating facility in Harrison County, West Virginia.
COMMISSION ORDER GRANTING A SITING CERTIFICATE
FOR A WHOLESALE ELECTRIC GENERATING FACILITY
IN HARRISON COUNTY, WEST VIRGINIA

Based upon its thorough review of the evidence, the public support shown for the
proposed natural gas-fired electric generating facility, and the benefits that the project
will provide to the State and Harrison County, the Commission approves the application
filed by ESC Harrison County Power, LLC (ESC Harrison County Power) for a siting
certificate to construct and operate a natural gas-fired wholesale electric generating
facility of approximately 630 megawatts (MW) in Harrison County including an
approximate 1.%mile 138 kV (less than 200,000 volts) related transmission support line,
associated interconnection facilities, and other necessary appurtenances.
I.

PROJECT DESCRIPTION

-On January 17, 2017, ESC Harrison County Power’ filed an application for a
Siting Certificate (Application)’ pursuant to W.Va. Code §§24-2-1(d)(2) and 24-2-1 IC to
authorize the construction and operation of a natural gas-fired base load combined cycle
wholesale electric generating facility of approximately 630 MW (Facility or Project)
approximately 0.5 miles from the municipal boundary of Clarksburg, in Harrison County,
including an approximately 1.8-mile 138 kV (less than 200,000 volts) related
transmission support line, associated interconnection facilities, and other necessary
1

ESC Harrison County Power, a Delaware limited liability company, is authorized to do business
in West Virginia.
2

ESC Harrison County Power’s Application consisted of two large volumes, including an
Appendix, multiple Exhibits, tables, figures and other documents. The Application was filed pursuant to
the Commission Rules Governing Siting Certificates for Exempt Wholesale Generators (Siting Rules),
150 C.S.R. Series 30.

 appurtenances as more particularly described in the Application. Upon completion, the
Facility will be used to generate electricity for sale in the competitive wholesale market.
ESC Harrison County Power stated that the Facility will have a nominal nameplate
capacity of approximately 580 MW (up to approximately 630 MW under favorable
conditions), utilizing state-of-the-art clean-burning natural gas-fueled electric generating
equipment consisting of one combustion turbine (CT), one steam turbine (ST), and one
generator. The exhaust from the CT will be directed through one heat recovery steam
generator (HRSG) that utilizes exhaust heat from the CT to generate high-quality,
superheated steam to drive the ST. Application at 2. The CT and ST through a single
shaft arrangement turn a common generator generating electricity which ESC Harrison
County Power asserts is an efficient and environmentally friendly system,
The Facility will receive natural gas fuel through existing Equitrans, L.P.
(Equitrans) facilities and the construction of a lateral extending from the FERC regulated
pipeline owned and operated by Equitrans’ interstate pipeline. Application Appendix3
at 10.
ESC Harrison County Power has negotiated a construction and gas transportation
agreement and has submitted a bid for service in an Equitrans open season for firm
transportation capacity on the Equitrans system that will allow ESC Harrison County
Power to purchase gas from various sellers on Equitrans and other interconnected
systems. Under the terms of the agreement, Equitrans has been acquiring the rights-ofway necessary to construct a pipeline extension approximately 5.5 miles to the Facility’s
location (Pipeline Extension). Application Appendix at IO; Applicant EX.^ AWD-D
at 5-6; Applicant Ex. AWD-R at 5-6; July 11, 2017 Hearing Transcript (hereinafier “Tr.”)
at 56-57.
Equitrans plans to construct and operate the Pipeline Extension and obtain all
applicable permits and permissions. Equitrans is an interstate pipeline regulated by the
Federal Energy Regulatory Commission (FERC) under Section 7(c) of the Natural Gas
Act of 1938. The Pipeline Extension would be constructed and operated as a prior notice
project under Equitrans’ existing blanket certificate authority. Application Appendix
at 10; Applicant Ex. A m - D at 6; Applicant Ex. AWD-R at 2.
ESC Harrison County Power has evaluated available alternatives and has
determined that the expansion of the Equitrans system to the Facility is the most
economic option for the Facility to obtain secure, reliable and economically competitive
3

The Application Appendix is Attachment 3 to the Application and is a more complete description
of the Application.
4

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.

2

 natural gas to allow the Facility to be successfully financed, built and operated. ESC
Harrison County Power expects to enter into a transportation service agreement for firm
transportation capacity on the existing Equitrans mainline system and the Pipeline
Expansion at a rate which reasonably meets the plant objectives. Application Appendix
at 10.
The Facility will utilize the Clarksburg Water Board (CWB) as a source for
cooling and potable water and will discharge cooling water blowdown and other contact
and non-contact water to the Clarksburg Sanitary Board (CSB) system. Stormwater will
ccntinue to be discharged into an unnamed tributary of Elk Creek. Project stormwater
controls will reduce the current uncontrolled releases from the property. Application
Appendix at 10, 66; Applicant Ex. MF-D at 7, 10; Applicant Ex. JPB-D at 5, 35.
The power generated by the Facility will be delivered to the existing Mon Power
Glen Falls substation (Glen Falls Substation), located approximately 1.8 miles from the
Facility, via a transmission line of approximately 9,600 linear feet in length. Application
at 2; Application Appendix at 9.
The Facility site (Site) is in an unincorporated area of Harrison County, north of
U.S. Route 50, which was formerly the site of the Pinnickinnick Coal Company, and
subsequently was transferred to the Clarksburg Fuel Company and the Consolidation
Coal Company. Application at 2. ESC Harrison County Power controls approximately
110 acres of the larger 212-acre parcel through a purchase option agreement with
Harrison County Development Authority; however, after construction, the Facility will
occupy a footprint of only about thirteen acres, leaving additional acreage available
inside the boundaries of the 110-acre property for further commercial and industrial
development. Application Appendix at 5.
The Site is a portion of a formerly active surface coal mine and underground coal
mine, and the Facility location on the Site was selected to allow for the redevelopment of
an unused former strip-mined area. Application Appendix at 6. The thirteen-acre Site
and surrounding areas have been investigated, and there are no known adverse
environmental conditions that pose limitations on the development of the Site or
construction of the Facility (the Site and Facility being sometimes referred to collectively
as the Project).
ESC Harrison County Power chose the Site for numerous reasons. The Site is in
close proximity to electric transmission lines, and has abundant natural gas readily
available and in close proximity to the site with redundant supply sources and
transportation options. The Project will have very little adverse impact, and likely a
positive impact, to the Site’s existing conditions, and will cause minimal change to the
viewshed and existing noise levels for the nearby residents. There is a trained and

3

 qualified local labor pool that has the requisite skills to construct and complete the
Project. Application Appendix at 6-7; Applicant Ex. JPB-D at 18-19.
ESC Harrison County 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 as a result of the construction of the Facility. ESC Harrison County
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 and will
operate the Facility as an exempt wholesale generator as defined under Section 32(a) of
the Public Utility Holding Company Act of 1935. Application Form 25 at 2; Application
at 3.
ESC Harrison County Power estimated that it will cost approximately
$615 million to construct the Facility and the transmission line. Application Form 2 at 2.
ESC Harrison County Power stated that the Project funding will be a combination
of equity and term loan A financing. Debt to equity is anticipated at approximately fiftyseven percent to forty-three percent. ESC Harrison County Power has entered into a
Payment in lieu of Taxes agreement (PILOT) with the Harrison County Board of
Education (HCBOE) and the Harrison County Commission (HCC). Under the PILOT
Agreement, ESC Harrison County Power will be exempt from ad valorem property tax
for thirty years and will make payments in lieu of taxes for proportional distribution to
HCBOE and HCC of at least $2,634,162 during a 30-year term. Application Appendix at
68-70; Application Appendix Ex. 20; Applicant Ex. MJD-D at 2-5.
ESC Harrison County Power has also entered into a Lease Agreement with the
HCC, and ESC Harrison County Power will make annual lease payments over a period of
thirty years totaling no less than $23,707,460 under the basic rent schedule,6 along with
an upfront payment of $1,000,000, resulting in a total rent agreement package of at least
$24,707,460. Harrison County does not collect ad valorem taxes on the Site because it is
owned currently by the HCC. Application Appendix at 69-70; Application Exhibit A;
Applicant Ex. MJD-D at 4-7.
The HCC has been awarded a grant of $400,000 under the West Virginia
Industrial Access Road Program grant (EAR grant) for the design and construction of the
proposed industrial access road to the Site and the HCC’s property for further
development. ESC Harrison County Power is contributing $150,000 for the necessary
5

Application Form 2 is the Notice of Filing that was published in the Exponent Telegram on
January 24,201 7, gnd the Charleston Gazette Mail on January 25,20 17.
6

The basic PILOT amount and the lease amount rent schedule provide for annual increases of a
minimum of 2.5 percent; however, if the CPI exceeds 2.5 percent in any year, then the higher CPI amount
will be applicable for that year.

4

 matching funds for the grant and will also fund the additional amount needed (estimated
to be $480,000) of the total road cost of an estimated $1,030,000. Tr. at 21-22; Applicant
Hearing Ex. 3; Applicant Ex. JPB-R at 8.
Tom S . Witt, Ph.D., testified for ESC Harrison County Power that the construction
and operation of the Facility will have a significant economic impact on the West
Virginia economy. The total Project construction costs are estimated at $616.1 million
with West Virginia workers and firms providing approximately forty-five percent of all
construction costs. Applicant Ex. TSW-D at 3. Additionally, third-party construction of
gas interconnections is expected to cost $15 million. Id. Dr. Witt estimated, based on
2016 dollars, that the three-year construction period impacts would result in 2,543 job
years, $187.4 million in employee compensation, and $306.3 million in value added. Id.
at 4. The first full year of operation impacts would result in 713 full- and part-time jobs
(including thirty at the plant), $47.9 million in employee compensation, and $72.8 million
in value added. Id. at 6. Dr. Witt estimated that $1 11 million per year of natural gas
would be sourced through long-term fuel agreements. Id. at 5. The total economic
impact of the Project for West Virginia is calculated to be more than $880 million during
construction and $287.4 million annually during operation. Id.at 5-6.
11.

PROCEDURAL HISTORY

Initial Public Notice and Comment Letters
ESC Harrison County Power published the Notice of Filing of its Application on
January 24, 2017, in The Exponent-Telegram (Harrison County), and on January 25,
20 17, in The Charleston Gazette (Kanawha County). Affidavits of Publication (filed
Feb. 6,2017 and Feb. 13,2017).
The Commission received 545 letters and postcards in support of the Project,
including letters from the Harrison County Chamber of Commerce; Martin Howe, City
Manager of Clarksburg; Jamie Metz, Executive Director, Harrison County Economic
Development Corporation; Tim Miley, Minority Leader of the West Virginia House of
Delegates; the West Virginia Oil and Natural Gas Association; and Senators Mike
Romano and Doug Facemire. No letters or comments in opposition to the Project were
filed except one protest from Intervenor Ohio Valley Jobs Alliance (OVJA). After
intervening (see below), OVJA voluntarily withdrew from the case on July 3, 2017. See
case file generally.
Waiver of Certain FilinP Requirements
On April 19, 2017, the Commission granted ESC Harrison County Power a
request for a waiver of certain certificate application filing and informational
requirements. Because Commission jurisdiction, particularly as it relates to rates is
5

 limited regarding the operations of the Project, the Commission did not require ESC
Harrison County Power to file information that relates to the traditional public utility
model under which the Commission examines extensive financial infoAation to
establish rates for service based on the cost to the utility to provide that service.
Commission Order at 3 (April 19, 2017).
Interventions
On March 30,20 17, the Commission granted the petitions to intervene of the West
Virginia State Building and Construction Trades Council, AFL-CIO (Building Trades)
and OVJA. Id.at 6, 8.
Motions 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
statements must disclose all assumptions. On January 17, 2017, ESC Harrison County
Power filed a redacted public version of the required financial data along with a
confidential version of the same under seal, and filed a Motion for Protective Order and
supporting affidavit. Because no request under the \Nv Freedom of Information Act
(WV FOIA) had been filed for the information for which ESC Harrison County Power
requested permanent protective treatment, the Commission deferred ruling on the Motion
for Protective Order. Cornmission Order at 6-7 (March 30,2017).
On May 25, 2017, OVJA filed its membership list in response to Staffs second set
of data requests. OVJA filed the membership list under seal and also filed a Motion for
Protective Order requesting that the membership list receive permanent protective
treatment. The Commission deferred ruling on the Motion for Protective Order until the
filing and review of a request under WV FOIA. Commission Order at 4 (June 2,20 17).
View by the Commission
On June 6, 2017, the Commission conducted a tour (View) of the project area with
representatives of Cornmission Staff, Building Trades, OVJA and ESC Harrison County
Power. The View began at 2:OO p.m. at Minard’s Restaurant in Clarksburg and lasted
spproximately two hours, with stops at these Viewpoints:
1.
2.
3.
4.
5.
6.

Pinnickinnick Street Entrance
ESC Harrison County Power Proposed Plant Site
Henry Ford Avenue
Tibbs Avenue
Free Will Baptist Church
Harrison Recycling Center
6

 7.
8.

Glen Falls Substation
Elkview Masonic and Holy Cross Cemeteries

At each Viewpoint, the parties briefly described the viewpoint (Le. looking toward
Clarksburg, looking 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 proposed locations of the various pieces of equipment
and buildings that constitute the Facility were shown on maps and drawings. The
Commission and others present asked clarieing 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.
Public Comment Hearing
ESC Harrison County Power published notice of the public comment hearing on
May 23, 2017, in both The Exponent-Telegram (Harrison County), and The Charleston
Gazette (Kanawha County). Affidavits of Publication (Filed June 2, 2017 and June 13,
20 17).
After the View, the Commission conducted a public comment hearing at
6:OO p.m., June 6, 2017, at the Harrison County Recreation Complex/4-H Center in
Clarksburg, West Virginia. Six individuals spoke in support of the Project. Mr. William
Parker, the Harrison County Administrator, spoke in favor of the project on behalf of the
Harrison County Commission and Harrison County Development Authority. June 6,
20 17 Public Comment Hearing Transcript at 11- 12. Ms. Anne Blankenship, Executive
Director of the West Virginia Oil and Natural Gas Association, spoke in favor of the
many skilled construction jobs and many direct and indirect jobs that would flow from
the Project. Id. at 13-15. Ms. Natalie Stone of the North Central Building and
Construction Trades Council, AFL-CIO (North Central Building Trades) spoke on behalf
of many members of the North Central Building Trades present at the hearing. Id. at
15-16. Mr. Sean Currey, of the Ironworkers Local 549, spoke on behalf of the Project
and related his positive experience on a similar project recently completed in Ohio. Id.at
17-18. Mr. Charlie Ritter, a member of Carpenters Local 436, spoke on behalf of the
project and the local jobs and clean energy it would produce. Id.at 19. Mr. Jamie Metz,
Executive Director of Harrison County Economic Development Corporation, and
Mr. Rob Hinerman also spoke in favor of the project. Id.at 23 and 19-20.
Two persons spoke in opposition to the Project. Mr. Stephen McElroy of
Bridgeport, West Virginia, questioned the ability of the project to comply with
environmental regulations. Id.at 20-22. Mr. James Kotcon, Chair of the West Virginia
Chapter of the Sierra Club, indicated that the Sierra Club opposed the project because of

7

 its concern about the significant environmental impacts from release of greenhouse gases.
Id. at 24-26.
Pre-filed Testimony
On Mardh 31, 2017, ESC Harrison County Power pre-filed the Direct Testimony
of its witnesses:
1.
2.

3.
4.
5.
6.
7.

John P. Black - sponsor of application and all technical aspects including
engineering, contracting, regulatory, and permitting (Applicant Ex. JPB-D);
Andrew W. Dorn, IV - qualification of ESC Harrison County Power to
complete the Prqject and natural gas supply and transportation for the
Project (Applicant Ex. AWD-D);
Matthew J. Dorn, CPA - Project financing, PILOT and lease agreement
with Harrison County Commission and economic impact (Applicant Ex.
MJD-D);
Timothy Kirk, P.E. -traffic report (Applicant Ex. TK-D);
Carol Colby - noise study and report (Applicant Ex. CC-D);
Toin S. Witt, Ph.D. - economic impact and report (Applicant Ex. TSW-D);
and
Matthew Fluharty, P.E. - engineering, viewshed, hydrology, SHPO, public
water and sewer required (Applicant Ex. MF-D).

On May 25, 2017, the Building Trades pre-filed the Direct Testimony of its
witnesses:
1.

2.

Steve White - local worker impact and Memorandum Agreement with ESC
Harrison County Power (Building Trades Ex. SW-D); and
Michael Jin - Project economic impacts on workforce (IMPLAN study)
(Building Trades Ex. MJ-D).

On May 26, 20 17, OVJA pre-filed the Direct Testimony of its witnesses:
1.
2.
3.
4.

Emily Virginia Rockwell - concerns about Project including air emissions
(OVJA EX.EVR-D);
James Russel Thomas - OVJA and its concern about air emissions (OVJA
EX.JRT-D);
Stephen Baker McElroy - concerns about Project including air emissions
(OVJA Ex. SBM-D); and
Jon A. Pollack - review of application and air emissions requirements
(OVJA EX.JAP-D).

8

 On May 26, 20 17, the Staff pre-filed the Direct Testimony of its witnesses:
1.

2.
3.

Josh Allen - financial review, economic impact and decommissioning
(Staff Ex. JA-D);
Eric F. deGruyter - natural gas issues (Staff Ex. EFDG-D); and
Donald E. Walker - engineering and technical review and recommended
conditions of any Siting Certificate (Staff Ex. DEW-D).

On June 30, 2017, ESC Harrison County Power pre-filed the Rebuttal Testimony
for three witnesses:
1.

2.

3.

John P. Black, P.E. - responding to OVJA witness Pollack and certain Staff
recommendations and conditions and providing certain clarifications
(Applicant Ex. JPB-R);
Andrew W. Dorn, IV - the natural gas arrangements for the Facility and
responding to certain Staff recommendations and conditions (Applicant Ex.
AWD-R); and
William Hanna, P.E. - responding to testimony of OVJA witness Pollack
regarding air permit (Applicant Ex. WH-R).
OVJA Voluntary Withdrawal

On July 3, 2017, OVJA filed a Notice of Voluntary Withdrawal (Without
Adjudication) of Intervenor Ohio Valley Jobs Alliance’s Claims pursuant to the terms of
a Joint Stipulation and Settlement of all four parties to this proceeding, filed on the same
aot0 On July 6, 20 17, the Commission granted OVJA’s motion for voluntary withdrawal
as a party to the case. Commission Order at 2-3 (July 6, 2017).
UULCI.

Joint Stipulation with OVJA
On July 3, 2017, OVJA, including its unincorporated chapter known as North
Central West Virginia Jobs Alliance, ESC Harrison County Power, Staff, and the
Building Trades filed a Joint Stipulation and Agreement for Settlement of Ohio Valley
Jobs Alliance’s Claims (OVJA Joint Stipulation). The OVJA Joint Stipulation proposed
and recommended to the Commission as a full and complete resolution of all of the issues
raised by OVJA in this proceeding that, as a condition of any Siting Certificate which
may be issued in this case, ESC Harrison County Power should be required to obtain and
file proof of having obtained an Air Quality Permit from the West Virginia Division of
Air Quality. The OVJA Joint Stipulation was entered into the record as Joint Exhibit 2 at
the July 1I, 2017 hearing. Tr. at 32.

9

 Joint Stipulation and Agreement for Settlement
On July 6, 201 7, ESC Harrison County Power, Staff and Building Trades filed a
Joint Stipulation and Agreement for Settlement (Joint Stipulation), in which they
recommended the Cornmission grant ESC Harrison County Power a siting certificate,
subject to certain conditions. Joint Ex. 1; Tr. at 3 1. They recommended the text for the
proposed conditions and asked the Commission to approve the Memorandum Agreement
between ESC Harrison County Power, the North Central Building Trades, and the
Building Trades that was admitted into the record of this case as Building Trades Hearing
Ex. 1. Joint Ex. 1; Tr. at 46-48.
Evidentiary Hearing
On May 23, 20 17, ESC Harrison County Power published notice in The Exponent(Harrison County) and in The Charleston Gazette (Kanawha County) of the
Telegram
evidentiary hearing that would begin on July 1 1, 201 7. Affidavits of Publication (filed
June 2,2017 and June 13,2017).
The evidentiary hearing was concluded in one day. The parties elected not to file
briefs and agreed to file a proposed Order. Tr. at 62. A proposed Order was filed with
the Commission on September 29, 2017.
In this case, the Commission has conducted a View of the Project area, and
reviewed the two-volume Siting Certificate application and nineteen pre-filed direct and
rebuttal testimonies and exhibits consisting of more than 500 pages of record evidence.
The Commission also conducted a public hearing that resulted in a twenty-nine page
transcript and an evidentiary hearing that resulted in a sixty-three page transcript and
hundreds of pages of exhibits.
111. DISCUSSION OF ISSUES AND EVIDENCE
A.

Statutory and RePulatory Tests

W.Va. Code 524-2-1 lc(c) provides:
In deciding whether to issue, refuse to issue, or issue in part or refke 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 commission may issue a
siting certificate only if it determines that the terms 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
10

 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 Commission views the statute as setting forth a two-part balancing test more
fully explained on page 114 of our August 27, 2004 order that partially and conditionally
approved a coal-fired electric wholesale generation facility in Longview Power LLC,
Case No. 03- 1860-E-CS:
In Part One of the analysis, the Cornmission will perform its duty to
appraise and balance: (a) an applicant’s interest to construct an electric
wholesale generation facility; (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) community residents’ interest in living separate
and apart from such facility; (ii) a community’s interest that a facility’s
negative impacts be as minimally 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 performs 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.Va. Code 524-2- 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 524-2- 1 1c(c)).
See, Longview’Power, LLC, Case Nos. 03- 1860-E-CS & 05- 1467-E-CN (Commission
Order at 102, June 26, 2006) (granting final approval of electric wholesale generating
facility and transmission line, with conditions); Beech Ridge Energy LLC, Case No. 051590-E-CS (Cominission 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. 12-1196-E-CS (Commission Order at 10-1 1, June 19, 2013)
(granting approval of electric wholesale generating facility, with conditions).
Within the second half of Part One, the Commission considers issues such as the
project’s impacts on viewshed, wildlife, ambient sound levels, and water resources. AES
Laurel Mountain LLC, Case No. 08-0109-E-CS (Commission Order at p. 9,
November 26, 2008); AES New Creek LLC, Case No. 08-2105-E-CS (Commission
Order at p. 9, September 30,2009).
11

 B.

1.

The Application of Part One of the Balancing Test

The Interests of ESC Harrison County Power to Construct the Project

ESC Harrison County Power has assembled a team of highly experienced and
diverse professionals to thoroughly study and develop this Project. ESC Harrison County
Power has secured an appropriate site for the Facility in an area where there will be a
shortage of electric supply resulting from planned retirement of existing, mostly obsolete,
coal fired plants in West Virginia and substantial retirement of plants throughout PJM.
Application Appendix at 4-5, 19. ESC Harrison County Power has successfully
completed the PJM feasibility study and the system impact study. Application Appendix
at 38; Applicant Ex. JPB-D at 7.
ESC Harrison County Power has completed its United States Fish and Wildlife
Service (USFWS) Section 7 Consultation; has completed its West Virginia Department
of Natural Resources Lands Inquiry; has completed its State Historic and Preservation
Office Phase I archaeological survey; and is actively working with all other necessary
agencies to obtain permits for the Project. Application Appendix at 11-16; Applicant Ex.
JPB-D at 30-34.
ESC Harrison County Power submitted a comprehensive Application for the
Project that included all of the required technical reports, mapping, and studies. See
generally Application, Appendix and Appendix Exhibits 1-26. It is, therefore, evident
that the Applicant is interested in pursuing and completing this Project, and being a
positive contributor to the economies of the State, Harrison County, and the local
community.
Accordingly, based on the evidence, the Commission concludes that ESC Harrison
County Power has demonstrated a sufficient interest in constructing the Project. ESC
Harrison County Power has a legitimate business purpose in undertaking the Project, and
ESC Harrison County Power retained various technical experts and developed detailed
information in support of its Application. It has expended substantial time and economic
resources to apply for a siting certificate, pursued various other permits and worked to
obtain the real property interests and various agreements necessary to construct and
operate the Project. ESC Harrison County Power has committed to working in
conjunction with the Commission and other state and federal agencies. All of these facts
show that ESC Harrison County Power has a serious and sincere interest in constructing
the Project.

12

 2.

The Need for Generating Plants in the State and Region and
Capacity to Meet the Needs of the Region

ESC Harrison County Power asserted that it will provide clean, low cost and
reliable electricity needed to help offset the effect of coal plant closings in the area and
significant generation retirements in the PJM grid. ESC Harrison County Power
explained that since 2012, numerous coal-fired power plants have been closed within the
region including AEP’s Kammer, Kanawha River, and Philip Sporn plants, FirstEnergy’s
Albright, Rivesville, and Willow Island plants, and Dominion’s North Branch plant.
These closings have retired 2,641 MW of power. The decisions to close these plants
were made independently and well in advance of any natural gas power plant
developments being proposed in West Virginia. Application Appendix at 4-5. In
addition, the PJM grid is experiencing significant retirements of 29,192 MW of
generation which started in 201 1 and is planned through 2020. Most of the retired or
retiring capacity (1 8,682 MW) is from West Virginia or an immediately bordering state
(Kentucky, Ohio, Pennsylvania, Maryland, and Virginia). West Virginia’s current 15,050
MW of electric generating capacity has a weighted average age of forty years and is
eighty-five percent coal with no new efficient combined cycle natural gas plants in the
State. There is a need to replace these generation retirements in the PJM grid, and West
Virginia is an ideal location because of its proximity to the retired or retiring capacity,
and its access to Marcellus and Utica natural gas supply. Applicant Ex. AWD-D at 4.
Because of the available fuel supply for the Facility, it is expected to function as a base
load generating plant enabling it to compete effectively with plants in Pennsylvania and
Ohio in the PJM grid.
The Facility will help support the local production of natural gas and help
maintain West Virginia’s prominence as an electrical energy supplier. Application
Appendix at 4. ESC Harrison County Power will fund significant capital upgrades to
existing infrastructure as required through the PJM interconnection process and will
increase utilization of a natural resource produced in West Virginia, making drilling more
attractive locally. Application Appendix at 4-5, 10.
PJM is a regional transmission organization (RTO) that coordinates the movement
of wholesale electricity in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland,
Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West
Virginia and the District of Columbia. The Project is located in the PJM Interconnection.
Application Appendix at 4.
The broad availability of a local fuel supply will allow the Facility to function as a
base load generator capable of being dispatched at full capacity and allowing it to help
meet the electric service demand in the PJM Interconnection. The Facility will provide
diversification to the power mix in the State. Application Appendix at 4. When the ESC
Harrison County Power Facility is operating at full capacity, it will deliver approximately
13

 4,800,000 MWh to the grid annually. The Facility will generate enough electricity to
power approximately 424,000 homes annually. Id.at 25; Applicant Ex. JPB-D at 25.
West Virginia is part of a regional integrated electricity grid. Beech Ridge, Case
No. 05-1590-E-CS, Cornmission Order Aug. 28, 2006, at 76 (Concl. of Law 14: “[Ilt is
not in the public interest for this Cornmission to isolate West Virginia from the region.
The power grid is interconnected, and to safeguard the availability of productive, wellmaintained resources to our State’s residents, West Virginia inust participate in the
interconnected electric system.”).
See, Pinnacle Wind Force, LLC, Case
No. 09-0360-E-CS, Commission Order Jan. 11, 2010, at 5 1 (Concl. of Law 9), and Beech
Ridge
Energy IT LLC, Case No. 12-1196-E-CS, Commission Order June 19, 2013, at 42
(Concl. of Law 9).
It is in the public interest to develop generation capacity utilizing diversified sources
of kel to generate electricity, including alternative sources extracted in West Virginia such
as natural gas. Additional generation capacity will help meet PJM’s projected load forecast
in light of the many coal-fired plant closures. The Project will be a base load combined cycle
power plant allowing it to meet electric service demand at all times. For all of these reasons,
ESC Harrison County Power has demonstrated sufficient need for this Project.
3.

The Economic Gain to the State and Local Economy

ESC Harrison County Power engaged Witt Economics, LLC, to perform an
economic assessment which studied the economic impact of the Project on the State and
local economies. Dr. Witt’s analyses included labor, value added, output, sourcing of
natural gas, and tax and other revenue payments. During the construction phase of the
Project, Dr. Witt calculated that 2,543 job years and $187.4 million (2016 dollars) in
employee compensation are associated with the Project. Other construction-related
economic impacts include value added of $306.3 million (2016 dollars) and output of
$880.8 million (2016 dollars). Application Appendix Ex. 22 at 5; Applicant Ex. TSW-D
at 4-5. During the first year of operation the plant will be associated with 713 jobs and
over $47.9 inillion (2016 dollars) in employee payroll. Annual operating economic
impacts include value added of $72.8 million and output of $287.4 million dollars (all in
2016 dollars). Application Appendix Ex. 22 at 7; Applicant Ex. TSW-D at 6.
ESC Harrison County Power intends to employ thirty permanent workers at the
Facility upon commencement of operation. Application at 3; Application Appendix at 8.

Under the PILOT agreement, ESC Harrison County Power will make payments
for proportional distribution to HCBOE and HCC of at least $2,634,162 during a 30-year
term, and under the Lease Agreement, ESC Harrison County Power will make annual
lease payments over a period of thirty years totaling $23,707,460 under the basic rent
schedule, along with an upfront payment of $1,000,000, resulting in a total rent
14

 agreement of at least $24,707,460. Application Appendix at 70; Application Appendix
Ex. 20; Application Exhibit A; Applicant Ex. MJD-D at 3-4. The Site currently does not
generate ad valorem tax payments. Applicant Ex. MJD-D at 9.
ESC Harrison County Power will pay significant corporate income tax during the
years of operation. Applicant Ex. MJD-D at 10.
After reviewing the filed Application, Josh Allen, Utilities Analyst for the Utilities
Division of the Cornmission, testified concerning the PILOT and lease agreements:
Thus Harrison County will realize approximately $27 million in new
revenues over 30 years under the Lease and Pilot Agreement, while
Harrison County and West Virginia will receive benefits of approximately
$287.4 million annually.
Staff Ex. JA-D, at 3. Mr. Allen recommended that if the siting certificate is granted, ESC
Harrison County Power be required to have a decommissioning fund in place. Id.at 5 .
Steve White, the Director of the Affiliated Construction Trades Foundation, a
division of the West Virginia State Building and Construction Trades Council, AFL-CIO,
provided testimony on behalf of the Building Trades. He testified that the North Central
Building Trades and the Building Trades were finalizing a Memorandurn Agreement with
ESC Harrison County Power that ensures, to the extent reasonably possible, workers
employed in the construction of the wholesale electric generating facility will be local
workers, Mr. White testified that upon review of ESC Harrison County Power’s
manpower estimates for the Project, and based on his experience with other power plants,
more than one million craft worker hours will be needed for the construction of the
Project. Mr. White concluded 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 2-3.
At the July 11, 201 7 hearing, Mr. John Black testified that the Memorandum
Agreement among ESC Harrison County Power, the Building Trades, and the North
Central Building Trades had been executed. Tr. at 35; Building Trades Hearing Ex. 1.
Michael Jin, who has testified before the Commission several times regarding
research on the probable economic impact of various construction projects, provided
direct testimony on behalf of the Building Trades. Building Trades Ex. MJ-D. Mr. Jin
completed an IMPLAN Economic Study that indicated, based on the information
provided by ESC Harrison County Power, that the construction of the Project on an
annualized basis would create 183 full-time equivalent jobs in construction and 139 in
other industries. For the entire construction of the Project would create 805 jobs for West
Virginia. Id. at 6. The Study indicated that construction of the Project will generate
15

 $61.5 million in wages for workers connected to the Project and $11.7 million in State
tax revenues. Mr. Jin testified that the construction of the Project will result in a
substantial positive impact on the local economy and local employment, and will
positively impact the state economy. Building Trades Ex. MJ-D at 6-7, Exhibit 1.
The Commission has reviewed the various testimonies, Dr. Witt’s report, and the
report prepared by Mr. Jin. Based on the record before the Commission, there should be
a significant economic gain to both the State and local economies during construction and
operation of the Facility. The Project will create significant local construction jobs and
numerous permanent jobs thereafter and will provide significant revenues for local
governments and public education.

4.

Community Residents’ Interest in Living Separate from the Project;
The Project’s Negative Impacts be Minimally Disruptive to Existing
Uses; and The Project’s Social and Environmental Impacts

Parties in siting certificate cases fiequently differ on aspects of the project involving
viewshed, noise, traffic, and water result in negative social and environmental impacts and
on whether those impacts are disruptive to the local residents and will allow those residents
to live separate and apart from the impacts of the project. While the Commission weighs
these considerations when assessing the community concerns, an overall analysis is more
helpful, and is reflective of the approach taken by the Commission in prior siting certificate
orders. The Commission analysis, therefore, will be presented in a comprehensive fashion.

No letters or comments in opposition to the Project were filed with the Commission
except for one protest from OVJA. Only two persons voiced opposition to the Project at the
public hearings held in this matter.
(a)

Viewshed

The Project Site is approximately 111 acres, with the Facility footprint being
qyxoxirnately 12.67 acres and an access road of 1.07 acres. The Project is located north of
the city limits of Clarksburg, bounded by undeveloped woodland and farmland to the north, a
residential community, a recycling center, U S . Route 50 to the south, and undeveloped
woodland, and residential properties to the east and west. Application Appendix Ex. 17 at 3.
When completed, the Facility and access road will occupy about 13.74 of the 11 1.11 acres.

Id.
ESC Harrison County Power completed and submitted with the Application a Visual
Analysis and Geospatial Rendering Report (Visual Analysis) consisting of a narrative
evaluation, project mapping, visibility analysis, geospatial renderings, and photographic
renderings. Application Appendix Ex. 17. The Visual Analysis illustrates the possible view
of the ESC Harrison County Power Facility for radii of one mile, five miles, and twenty
16

 miles around the boundary of the Facility. The report determined that of the approximately
8 10,618 acre study area, only 0.3 to 0.6 percent of the study area would have some visibility
of the Project (207 to 501 acres). Visibility analysis was conducted under both bare earth
and mature cover scenarios. Visibility of the Project beyond 14 miles was not detected under
either scenario. Application Appendix Ex. 17 at 7,9; Applicant Ex. MF-D at 5.
The Visual Analysis concluded that visibility of the Project is limited by its location
in a large concave depression surrounded by moderately steep hill slopes screening the
viewshed of areas west, north and east of the Site. Application Appendix Ex. 17 at 7,9. The
local topography and vegetation of the Site acts as a natural viewshed buffer and obscures
the Facility from a majority of the surrounding area. Id.at 10. The closest properties to the
south of the Project that are either at the same elevation as the Project or significantly
elevated have the highest probability of visibility of the Project. Applicant Ex. MF-D at 5.
The Project will not be visible from nearby municipal areas such as Bridgeport, Weston,
Grafton, or Fairmont.; .dI Application Appendix Ex. 17 at 9, Figures 13 (A-C).
The Visual Analysis includes photographic renderings of the seven project views: a
residence on Henry Ford Avenue located approximately 292 feet southeast from the Site,
a residence on North Tibbs Avenue located approximately 1,000 feet south of the Site, a
residence on South Tibbs Avenue located approximately 1,400 feet south of the Site, the
Holy Cross Cemetery located approximately 4,553 feet southeast of the Site, the Harrison
County Recycling Center located approximately 0.25 miles south of the Site, a residence
on Jr. Avenue located approximately 2,200 feet southeast of the Site, and a residence on
Pinnickinnick Street located approximately 1,320 feet southwest of the Site. Application
Appendix Ex. 17 at 8-9, Appendix C; Applicant Ex. MF-D at 4. The overall visibility of the
Project from these seven locations is minor, and in many cases sloping elevation, vegetation,
and density of structures in the community limit visibility. Application Appendix Ex. 17 at
10. The Facility is not likely to affect negatively the local viewshed or aesthetic qualities of
the area. Id.
ESC Harrison County Power has incorporated mitigation of view within its design
plan through the substantial planting of trees along Henry Ford Avenue between the
Facility and the residential area. ESC Harrison County Power will plant a mixture of
deciduous trees and evergreens (conifers) as a visual barrier for the residential area.
Applicant Ex. JPB-D at 14-15.
ESC Harrison County Power will file a Federal Aviation Administration (FAA)
notice of height and location of cranes and stacks, but it is not expected that a notice of
aviation hazard will be issued. Flags and possibly warning lights might be required.
Applicant Ex. JPB-D at 3 2 .

No state parks, national wildlife preserves, state refuges, state wildlife management
areas, national landmarks, national parks, national recreation areas, scenic rivers, scenic
17

 highways, or other sensitive features have visibility of the Project. Application Appendix
Ex. 17 at 8. There are no historic architecture points, cemeteries or National Register of
Historic Places (NRHP) points within the proposed Project area. Six NRHP listings are near
the Facility, but do not have visibility of the Facility. Application Appendix Ex. 17 at 9- 10,
Figure 15; Applicant Ex. MF-D at 4-5.
The Commission observed during its site visit to the Project that the Site has
historically been a mining site and continues to be industrial in nature with the Harrison
Recycling Center adjacent to the Project Site. The Commission also observed that views of
the Project in the immediate area are limited. While the HRSG and stack will be visible
from several locations very near the Project, after reviewing the evidence and conducting the
View, it appears 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 impact of the presence of the Project 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.
With its Application, as required by Siting Rule 3.1.m.4, ESC Harrison County Power
submitted a Noise Study that evaluated pre-construction, construction, and operational noise,
and complied with the Siting Rules. Application Appendix Ex. 25. Behrens and Associates,
Inc. prepared ESC Harrison County Power's Noise Study. Noise data were collected at five
monitoring locations to the southeast, south, and southwest of the Facility: the nearest
receptor, a residence owned by Mrs. Wright on Henry Ford Avenue at the crest of a hill; a
residence on North Tibbs Avenue; the First Free Will Baptist Church directly south on North
Ohio Avenue; a residence to the southwest on Pinnickinnick Street; and a Pike Street
residence located to the southwest. Application Appendix Ex. 25 at 9-10. Any residential
areas west, east, or north of the Project would be separated from the Project by steep
ridgelines. Tr. at 24-25; Application Appendix Ex. 25 at 6.
1.

Pre-Construction Noise

Five monitoring locations were evaluated in the vicinity of the proposed Facility.
The pre-construction survey indicated that road noise from U.S. Route 50 and rail noise
from the nearby active CSX tracks near North Ohio Avenue were prevalent at four of the
five monitoring locations in the study. Application Appendix Ex. 25 at 9-12. Other
sources of noise were likely present, such as the recycling facility directly south of the
Facility Site. The ambient level at the closest residence of Mrs. Wright at the crest of the
hill is 49-52 dBA but then increases to as much as 60-61 dBA after cresting the hill and
18

 proceeding to the south toward U S . Route 50 and closer to the active portions of the
recycling facility. Id.at 9-12.
2.

Construction Noise

The Noise Study assessed the operation of earth moving equipment, driving of
piles, erection of structures, truck or other traffic, installation of equipment, and cleanup
and reclamation.
at 26. No dynamiting activities are expected to occur during
construction of the Facility. Application Appendix at 80. The modeling used a highly
conservative method by assessing maximum noise possible with the combined pieces of
equipment that might be utilized. The modeling assumed that construction equipment
would operate concurrently, resulting in a maximum noise value for a condition which
will not occur. Applicant Ex. JPB-R at 8. Because of the down-gradient nature of the
Site, trees, the adjacent hills and recycling structures, and noise mitigation techniques,
most locations near the Site will have five or more db of shielding. Applicant Ex. JPB-R
at 8. With this level of shielding any potential increase in ambient noise levels during
construction, if any (except at the closest receptor Mrs. Wright), should be minimal.
Application Appendix Ex. 25 at 44. With respect to the closest receptor, the residence
located on the crest of the hill known as Henry Ford Avenue, ESC Harrison County
Power has reached an agreement with the owner to purchase the property which will then
be used for additional noise mitigation. Tr. at 25.
The community surrounding the Site is familiar with industrial noise from the strip
mining coal operations and the various recycling activities, and the nearness of the active
CSX railroad tracks in this area. Based on the information provided, and considering the
existing commercial and industrial activities in the area, the ambient noise associated
with 1J.S. Route 50, CSX train traffic, the industrial nature of the recycling facility, and
the fact that the nearest receptor property will be purchased by ESC Harrison County
Power, the noise levels associated with construction activities will cause only a minimal
increase in noise exposure to the surrounding residential community.

3.

Operational Noise and Noise Mitigation Measures

Noise impact from the power plant was evaluated using a conservative noise
model that did not consider changes in shielding. Additionally, the model was run with a
conservative noise level which was the maximum level of all equipment combined.
Specifically, all pieces of equipment that were sources of significant noise were included
in the noise model. Application Appendix Ex. 25 at 38.
The model was also conservative in that the maximum noise value was evaluated
from the boundary or perimeter of the power plant. This method provides higher noise
estimates than would be anticipated because several of the noise-generating features at
the power plant are located within the complex and shielded by other plant buildings.
19

 Specifically, the administration office building and warehouse will be between the plant
and residential community. The model evaluated these features at maximum noise levels
that would not be anticipated at the plant boundary. Application Appendix at 82-83.

I

The Study found that the closest receptor, the residence on Henry Ford Avenue at
the crest of the hill, would experience an increase in sound level during operation of
about seventeen to eighteen dBA. However, ESC Harrison County Power is purchasing
this property and the residents are moving, and ESC Harrison County Power will be
installing additional noise mitigation plantings. Tr. at 25. Beyond the crest of the hill are
other residences, but the hillside provides considerable shielding of close to eight to ten
db. Application Appendix Ex. 25 at 40-4 1. Even these values are conservative. It is
anticipated that ESC Harrison County Power’s noise mitigation efforts will provide
approximately five or more db reduced sound level at the receptors. Applicant Ex. JPB-R
at 8.
ESC Harrison County Power intends to plant trees along the southern and
southeast side of the Facility boundary. The rows of trees will act as a dampening and
buffer to noise. Id.
In light of the sound evidence, the Project will not substantially increase ambient
noise levels in the area. 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 minimally disruptive to existing property uses as is
reasonably possible, and are not unreasonable. ESC Harrison County Power plans
several types of mitigation measures to shield noise from the community.

(e)

Air

ESC Harrison County Power has the potential for air emissions from several
components of the Project and has thus filed the appropriate permit application with the
West Virginia Department of Environmental Protection, Division of Air Quality.
Application Appendix at 13, 31-32. Modeling has been conducted and an air permit
application was submitted in November 2016. The permit is anticipated in advance of
the date needed for design and manufacturing of the equipment. Applicant Ex. JPB-D at
29-30.

20

 (d)

Water

The primary source of water for the Facility operations will be a dedicated
pipeline from the CWB. Facility process water will consist primarily of cooling system
blowdown and oil water separator effluent.
The Facility Site will discharge
approximately 100,000 gallons per day (gpd) of treated water to the CSB system.
Treated water will be used on site for maintaining the trees and plants in the green spaces
and for other non-consumptive uses in accordance with the Facility Site discharge
permits. Application Appendix at 33.
Potable water would be used for several Facility uses, including fire water, service
water, plumbing fixtures, combustion turbine make-up water, and demineralized water
system make-up. It is estimated that 100,000 gpd (average of 70 gallons per minute
(gpm)) of water will be utilized for plant operations.; .dI Applicant Ex. JPB-D at 28.
Wherever practical, wastewater generated by these uses will be recycled. Drains from
plumbing fixtures will be collected in a sanitary sewer system and pumped or gravity fed
to an existing CSB line. Application Appendix at 33.
ESC Harrison County Power will obtain all required permits necessary to receive
water from the CWB for the Project. Applicant Ex. JPB-D at 29.
(e)

Hydrology

The Thrasher Group, Inc. (Thrasher) prepared a Surface and Groundwater
Resources Report. Application Appendix Ex. 19. The Facility will not affect
groundwater resources on the Site. Id. at 4; Applicant Ex. MF-D at 7. Surface waters
will be impacted by construction of the Facility, but will be addressed with control
measures that collect stormwater and best management practices to protect nearby and
downstream surface waters. Applicant Ex. MF-D at 7. No aquifers will be affected by
the Facility, and there will be no injection of process or other waters. Applicant Ex. MFD at 8. The Project is not anticipated to affect significantly aquatic resources within the
Site. Application Appendix Ex. 19 at 5 .
(f)

U.S. Fish and Wildlife Service and West Virginia Department of
Natural Resources

ESC Harrison County Power has completed a Section 7 consultation with the
United States Fish and Wildlife Service (USFWS), and the USFWS has delivered a
response that no threatened or endangered species are known to exist on the Site.
Application Appendix Ex. 23; Applicant Ex. JPB-D at 30-3 1.
ESC Harrison County Power has completed a Lands Inquiry with the West
Virginia Department of Natural Resources (DNR) for the Project. DNR has indicated
21

 that they have no known records of State rare, threatened or endangered species and
sensitive habitats within the Project area. Application Appendix Ex. 24; Applicant Ex.
JPB-D at 3 1.
(g)

Traffic

A. Morton Thomas Consultants (AMT) prepared a traffic study that assesses the
volume of pre-construction, construction and post-construction traffic for public roads
near the Facility using information from the West Virginia Division of Highways (DOH)
and from peak hour turning movement counts at four nearby intersections that are
anticipated to be impacted by the Project. Application Appendix Ex. 26.
The Project Site is located north of the Clarksburg city boundary and north of
North Ohio Avenue and an active railroad line which is crossed via an overpass from
U.S. 50 on Florence Street. Most traffic, both during construction and operation, will
arrive in the vicinity of the Project Site from the Florence Street overpass.
Turning movement counts, conducted in accordance with DOH Traffic
Engineering Directives, were performed at four signalized and nearby intersections.
DOH information was also reviewed. The analysis in the AMT Traffic Study indicates
that during the construction phase the Project will have only a minor impact on the
operation of the existing transportation network and that the nearby intersections will also
operate at an acceptable level per guidelines established by the DOH. Application
Appendix Ex. 26 at 1-2.
Short term recommendations were made to address any impacts during the
construction phase, and ESC Harrison County Power has indicated that it will address
these recommendations. Application Appendix at 83; Application Appendix Ex. 26.
Furthermore, ESC Harrison County Power and its contractors will not change shifts or
block roads with heavy haul deliveries while school buses are scheduled to be on roads
within one mile of the Site. Applicant Ex. JPB-R at 13-14, Exhibit A at 6 .
After construction is complete, the traffic associated with the Project will be
limited to operational and maintenance vehicles. It is anticipated that 30 vehicles making
23 peak hour trips will enter and exit the Site each day for operational activities.
According to the AMT traffic study this volume of traffic has virtually no impact to the
transportation network. Application Appendix Ex. 26 at 1.
ESC Harrison County Power Project will not cause any substantial problems or
difficulties with respect to existing traffic patterns. After completion of the Project, the
slight increase in traffic will have no impact on the transportation network. Accordingly,
the Project will not have a significant or substantial impact on traffic in and around the
Project area.
22

 (h)

Area property values and local infrastructure

ESC Harrison County Power does not expect a negative impact on area property
values from the Project. The Site is surrounded by an area which is primarily industrial
and was operated as a coal strip mine and loading facility. It is now largely vacant with
oil/gas wells and an adjacent recycling yard. The redevelopment of this brownfield site
and the likely economic development on surrounding acreage by the Harrison County
Redevelopment Authority should enhance, not decrease, property values. Application
Appendix at 6, 76-77; JPB-D at 8.
ESC Harrison County Power does not anticipate any negative impacts to the local
infrastructure from either the construction or operation of the proposed Facility. There
are local water and sewer utilities present with ample capacity to meet the needs of the
Facility. Application Appendix at 65; Applicant Ex. JPB-D at 33-34. In addition, traffic
increases from operations will be negligible and will not affect local roadways.
Applicant Ex. JPB-D at 34. During construction traffic control and turning lane
improvements may be needed for traffic and deliveries; however, ESC Harrison County
Power is working with appropriate state and city officials to design any necessary
errrblrlporaryimprovements. Applicant Ex. JPB-D at 34.

5.

The Joint Stipulations and Project Conditions

In its Direct Testimony, Staff recommended the Commission adopt various
conditions if a Siting Certificate is granted ESC Harrison County Power in this case.
Staff Ex. JA-D at 5; Staff Ex. DEW-D at 10, Ex. 3. ESC Harrison County Power witness
Black, in his Rebuttal Testimony, set forth ESC Harrison County Power's suggested
clarifications and revisions to several of the Staff's proposed conditions. Applicant Ex.
JPB-R at 9-15, Exhibit A.
ESC Harrison County Power, Staff, and the Building Trades entered into
settlement discussions and have reached an agreement that they recommend the
Commission adopt. Joint Ex. 1. They ask that the siting certificate requested by ESC
Harrison County Power be granted subject to these conditions in the Joint Stipulation:
1.

At least 30 days prior to beginning construction ESC Harrison
County Power will provide the PSC notice of start of construction.

2.

Prior to the Commercial Operation Date (COD) Harrison County
Power shall file a verified statement that the required detailed plans
for the Harrison County Power project have been completed,
reviewed and approved in accordance with the appropriate codes and

23

 standards and where required, under the supervision of a licensed
professional engineer.

3.

At least 30 days prior to beginning construction of the Project,
Harrison County Power shall file a verified statement that certifies
that required permits, approvals, certifications, notices, and
consultations have been obtained, including the following:
a. PJM Interconnection Services Agreement
b. State Historic Preservation Office (SHPO) Consultation
c. United States Fish and Wildlife Service (USFWS) Section 7
Consultation
d. WV DNR Lands Inquiry
e. Department of the Army 404 Permit(s)
f. State 401 Water Quality Certification
g. WV DNR Stream Activity Permit
h. Air Quality Permit from the West Virginia Division of Air
Quality
i. West Virginia National Pollutant Discharge Elimination
System (NPDES) Permit
j. Groundwater Protection Plan (GPP)
k. Site Plan Approval and Grading Permit
1. Federal Aviation Administration (FAA) Notice of
Construction or Alteration
117. Construction Stormwater General Permit and Stormwater
Pollution Prevention Plan
n. West Virginia Department of Highways (WVDOH) IAR
Engineering and Construction Agreement
0 . Above ground Storage Tank Water Resources Protection
Act and the Public Water Supply Protection Act approvals.
Provided, however, with respect to the approvals and permits
set forth in p., q. and r. below it is recognized that one or more
may not be available until immediately before the activity for
which the approval or permit is issued, commences, in which
event Harrison County Power shall within a reasonable time
after receipt certifying that the approval or permit has been
obtained:
p. Railroad Right of Way Encroachment Approvals
q. Building Permits
r. Highway Heavy Haul Permits

24

 At least 30 days before operation of the Facility, Harrison County
Power shall file a verified statement that certifies that all required
permits, approvals, certificates, notices and consultations
required prior to the start of operation have been obtained,
including the following:

4.

a. Stormwater General Permit and Stormwater Pollution
Prevention Plan
b. Spill Prevention Control and Countermeasures (SPCC) Plan
c. Emergency Response Plan (ERP)
d. Pre-treatment/Discharge Permit - Sanitary
e. Water System Connection
5.

Fuel for the Project will be delivered through a pipeline to the
plant, constructed, operated and owned by a third party (the
“Pipeline Project”). Prior to the beginning of construction on the
Pipeline Project, ESC Harrison County Power shall file a verified
statement that certifies that a binding contract(s) are or will be in
place for:
a.

Installation and construction of adequate natural gas delivery
points, including Federal Energy Regulatory Commission
(FERC) certificates, if required, for new delivery points on
interstate pipelines.

b.

Construction and operation of the pipeline necessary to
deliver the fuel to the plant site, including all necessary
measurement and pressure regulation equipment.

c.

A contracted fuel supply.

6.

The verified statement filed in connection with Condition 5 above
shall provide a verified statement of the pipeline contractor
certifying that all options for, or rights of way, and all required
permits necessary for the construction and operation of the Pipeline
Project have been obtained.

7.

Applicant shall plant in a staggered pattern along the southern border
of the property from a location just east of the onsite pond up the
slope to a point between Henry Ford Avenue and the northeast
corner of the plant fence, and along the Henry Ford Avenue property
line, evergreen and deciduous trees in accordance with the schedule
attached hereto as Exhibit A.

 8.

Care of the trees and shrubs planted in accordance with Condition 7
shall be incorporated into the operations and maintenance plan for
the site. Any such tree or shrub that does not survive will be
replaced in kind.

9.

Harrison County Power shall provide an independent expert report
on the amount needed to decommission the facility less market or
salvage value 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.
Harrison County Power
recognizes that the plant value far exceeds the decommissioning
costs in the first ten (10) 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. In no case shall the decommissioning
amount exceed the maximum value required by the lease agreement,
which is $3 million.
The report shall be updated thereafter as mutually agreed between
Harrison County Power and the Harrison County Commission, but
no less frequently then every ten (10) years thereafter until the
provision of the HCC Lease which requires a $3 million fund
becomes operative. 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.
Harrison County Power will provide the report to the Harrison
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 Harrison County Power’s
assets.
Within ninety (90) days of any report that requires a contribution to
the decommissioning fund, Harrison County 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
Harrison County Power and the Harrison County Commission.
Reductions to, or withdrawal from, the decommissioning fund shall
not be allowed sooner than ninety (90) days after the Harrison
County Commission has been offered the opportunity to review the
report. The methods for deposits to and disbursements from the

26

 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 Harrison County Commission and state that the
obligations set forth in the agreement apply to Harrison County
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 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.
10.

Harrison County Power, and its contractors, shall not change shifts
or block roads with heavy haul while school buses (elementary,
middle or high school) are scheduled to be on the roads within
1 mile of the site.

11.

Harrison County Power shall file proof of its exempt wholesale
generator (EWG) status from FERC prior to commencing
commercial operation.

12.

The siting certificate shall become invalid if Harrison County 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 tenth year following the granting of
the certificate without petitioning the Commission for approval to
expand these time frames.

13.

If Harrison County Power seeks to transfer its certificate, Harrison
County Power is required pursuant to Siting Rule 7.1 to notify the
Commission 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.

Joint Ex. 1 at 5-9.
OVJA, ESC Harrison County Power, Staff, and the Building Trades also filed a
Joint Stipulation and Agreement for Settlement of Ohio Valley Jobs Alliance’s Claims,
which recommended to the Cornmission as a full and complete resolution of all of the
issues raised by OVJA in this proceeding, that as a condition of any Siting Certificate
27

 which may be issued in this case ESC Harrison County Power should be required to
obtain and file proof of having obtained an Air Quality Permit from the West Virginia
Division of Air Quality. Joint Ex. 2.
Upon review of the Joint Stipulations, the Commission finds that many of the
proposed conditions are typical in siting certificate orders, and finds that the conditions
are reasonable, and we recognize that ESC Harrison County Power has agreed to comply
with all of the conditions in Joint Ex. 1 and Joint Ex. 2.
6.

Memorandum Agreement with the Building Trades

ESC Harrison County Power, Staff, and the Building Trades request that the
Commission approve the Memorandum Agreement between ESC Harrison County
Power, the North Central Building Trades, and the Building Trades and make clear that
the Commission anticipates that all representations and commitments made by the parties
therein will be kept by the parties.
The Commission has in previous siting cases approved the Memorandurn
Agreement and ordered that "all representations and commitments made by the parties
therein be kept by the parties.'' Mount Storm Wind Force, LLC, Case No. 01-1664-ECN, at 31 (Commission Order August 29, 2002). We see no reason to depart from this
approach. We note, as we have in the past, 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 from operating under that 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, offend the public interest. ESC Harrison County
Power provided documentation and testimony concerning PILOT and lease agreements
and an Industrial Access Road agreement that are involved with this Project. Application
at 3; Applicant Ex. MJD-D at 2-7; Application Appendix at 68-70 and Appendix Ex. 20;
Application Ex. 2; Applicant Hearing Ex. 3. ESC Harrison County Power, Staff, and the
Building Trades agreed that the terms and conditions of the PILOT agreement between
ESC Harrison County Power, the HCC, the HCBOE, the Sheriff of Harrison County,
West Virginia, and the Assessor of Harrison County, West Virginia, the Lease
Agreement between the HCC and ESC Harrison County Power, and the Industrial Access
Road Agreement between the DOH and the HCC 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 9. Based on the record, and the
28

 significant tax revenues and other economic benefits that will accrue to Harrison County
and the State, these agreements do not offend the public interest.
Thus, based on the entire record, ESC Harrison County Power should be issued a
siting certificate for this Project, subject to the conditions discussed in this Order.
FINDINGS OF FACT

1.
ESC Harrison County Power filed its Application on January 17, 2017.
Application at 1-2; See Case File, generally.
2.
The Facility will have a nominal nameplate capacity of approximately 580
MW (up to approximately 630 MW under favorable conditions), utilizing state-of-the-art
clean-burning natural gas-fueled electric generating equipment consisting of one
combustion turbine, one steam turbine, and one generator. The exhaust from the CT will
be directed through one HRSG that utilizes exhaust heat from the CT to generate highquality, superheated steam to drive the ST. Application at 2. The CT and ST through a
sir;gle shaft arrangement turn a common generator generating electricity in an efficient
and environmentally friendly manner.
The Facility will receive natural gas fuel through existing Equitrans
3.
facilities and the construction of a lateral extending from the FERC regulated pipeline
owned and operated by Equitrans’ interstate pipeline. Application Appendix at IO.
4.
ESC Harrison County Power has negotiated a construction and
transportation agreement and has submitted a bid for service in an Equitrans open season
for firm transportation capacity on the Equitrans system that will allow ESC Harrison
County Power to purchase gas from various sellers on Equitrans and other interconnected
systems. Under the terms of the agreement, Equitrans has been acquiring the rights-ofway necessary to construct a pipeline extension approximately 5.5 miles to the Facility’s
location (Pipeline Extension). Application Appendix at 10; Applicant Ex. AWD-D
at 5-6; Applicant Ex. AWI3-R at 5-6; Tr. at 56-57.
Equitrans, an interstate pipeline regulated by the FERC under Section 7(c)
5.
of the Natural Gas Act of 1938, will construct and operate the Pipeline Extension and
obtiiin all applicable permits and permissions. The Pipeline Extension would be
constructed and operated as a prior notice project under Equitrans’ existing blanket
certificate authority. Application Appendix at 10; Applicant Ex. AWD-D at 6; Applicant
Ex. AWD-R at 2.
ESC Harrison County Power has evaluated available alternatives and has
6.
determined that the expansion of the Equitrans system to the Facility is the most
economic option for the Facility to obtain secure, reliable and economically competitive
29

 natural gas to allow the Facility to be successfully financed, built and operated.
Application Appendix at 10.

7.
The Facility will utilize the CWB as a source for cooling and potable water
and will discharge cooling water blowdown and other contact and non-contact water to
the CSB system. Stormwater will continue to be discharged into an unnamed tributary of
Elk Creek. Application Appendix at 10, 66; Applicant Ex. MF-D at 7, 10; Applicant Ex.
JPR-D at 5, 35.
8.
The power generated by the Facility will be delivered to the existing Mon
Power Glen Falls Substation, located approximately 1.8 miles from the Facility, via a
transmission line of approximately 9,600 linear feet in length. Application at 2;
Application Appendix at 9.
9.
The Facility Site is in an unincorporated area of Harrison County, north of
1J.S. Route 50, which was formerly the site of the Pinnickinnick Coal Company, and
subsequently transferred to the Clarksburg Fuel Company, and the Consolidation Coal
Company. Application at 2.
10. ESC Harrison County Power controls approximately 110 acres of the larger
2 12-acre parcel through a purchase option agreement with Harrison County Development
Authority; however, the Facility will occupy a footprint of only approximately thirteen
acres after construction, leaving additional acreage available inside the boundaries of the
110-acre property for further commercial and industrial development. Application
Appendix at 5 .
11. The thirteen acre Site and surrounding areas have been investigated and
there are no adverse environmental conditions that would pose limitations on the
development or constructability of the Project. ESC Harrison County Power chose the
Site for numerous reasons, including that the Site is in close proximity to electric
transmission lines, abundant natural gas is readily available in close proximity to the site
with redundant supply sources and transportation options, the Project will have very little
adverse impact to the Site’s existing conditions and minimal change to the viewshed and
existing noise levels for the nearby residents, and the availability of a trained and
qualified local labor pool that has the requisite skills to construct the Project. Application
Appendix at 6-7; Applicant Ex. JPB-D at 18-19.
12. ESC Harrison County Power will be the entity responsible for the
construction and operation of the Facility and for the sale of electricity generated by the
Facility, and will operate the Facility 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; Application at 3.

30

 13. ESC Harrison County Power estimates that construction of the Facility and
the transmission line will cost approximately $6 15 million. Application Form 2 at 2,
14. The Project funding will be a combination of equity and term loan A
financing. ESC Harrison County Power has entered into a PILOT agreement with the
HCBOE and the HCC whereby ESC Harrison County Power will be exempt from ad
valorem property tax for 30 years, and will make payments in lieu of taxes for
proportional distribution to HCBOE and HCC of at least $2,634,162 during a 30-year
term. Application Appendix at 68-70; Application Appendix Ex. 20; Applicant Ex.
MJD-D at 2-3, 8.
15. ESC Harrison County Power has also entered into a Lease Agreement with
the HCC and will make annual lease payments over a period of thirty years totaling no
less than $23,707,460 under the basic rent schedule, along with an upfront payment of
$1,000,000, resulting in a total rent agreement package of at least $24,707,460. Presently
Harrison County does not collect ad valorem taxes on the Site because it is owned by the
HCC. Application Appendix at 69-70; Application Exhibit A; Applicant Ex. MJD-D at
3-5, 8.
16. The HCC has been awarded a grant of $400,000 under the West Virginia
Industrial Access Road Program for the design and construction of the proposed
industrial access road to the Site and the HCC’s property for further development. ESC
Harrison County Power is contributing $150,000 for the necessary matching funds for the
grant, and will also fund the additional amount needed ($480,000) of the total road cost
of $1,030,000. Tr. at 2 1-22; Applicant Hearing Ex. 3; Applicant Ex. JPB-R at 8.
17. The total economic impact for West Virginia is estimated to be more than
$880 million in output during construction and more than $287 million in output annually
during operation. Application at 3.
18. On June 6, 2017, the Commission conducted a View of the project area
with representatives of Commission Staff, Building Trades, OVJA and ESC Harrison
County Power.

19. The Commission received 545 letters and postcards in support of the
Project, and one protest from OVJA. See generally case file.
On July 3, 2017, OVJA, including its unincorporated chapter known as
20.
North Central West Virginia Jobs Alliance, ESC Harrison County Power, Staff, and the
Building Trades filed a Joint Stipulation and Agreement for Settlement of Ohio Valley
Jobs Alliance’s Claims, in which they recommended to the Commission that as a
condition of any Siting Certificate which may be issued in this case that ESC Harrison

31

 County Power should be required to obtain and file proof of having obtained an Air
Quality Permit from the West Virginia Division of Air Quality. Joint Ex. 2; Tr. at 32.
21. On July 6, 2017, ESC Harrison County Power, Staff and Building Trades
filed a Joint Stipulation and Agreement for Settlement, in which they recommended the
Commission grant ESC Harrison County Power a siting certificate, subject to certain
conditions. Joint Ex. 1; Tr. at 3 1.
22. ESC Harrison County Power, the North Central Building Trades, and the
Building Trades entered into a Memorandum Agreement. Building Trades Hearing
Ex. 1; Tr. at 46-48.
23. ESC Harrison County 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
existing, mostly obsolete, coal fired plants in West Virginia and substantial retirement of
plants throughout PJM. Application Appendix at 4-5, 19.
24.
ESC Harrison County Power has successfully completed the PJM
feasibility study and the system impact study. Application Appendix at 3 8; Applicant Ex.
JPB-D at 7.
25. ESC Harrison County Power has completed its United States Fish and
Wildlife Service (USFWS) Section 7 Consultation, its West Virginia Department of
Natural Resources Lands Inquiry, its State Historic and Preservation Office Phase I
archaeological survey, and is actively working with all other necessary agencies to obtain
permits for the Project. Application Appendix at 11-16; Applicant Ex. JPB-D at 30-34.
26. ESC Harrison County Power explained that since 2012, seven power plants
have closed, representing a loss of approximately 2,641 MW of generating capacity.
Application Appendix at 4-5.
27. ESC Harrison County Power will fund significant capital upgrades to
existing infrastructure as required through the PJM interconnection process and will
increase utilization of a natural resource produced in West Virginia making drilling more
attractive locally. Application Appendix at 4-5, 10.
28.

The Project is located in the PJM Interconnection. Application Appendix

at 4.
29. The broad availability of local fuel supply will allow the Facility to
function as a base load generating facility capable of being dispatched at full capacity
thus allowing it to help meet the electric service demand in the PJM Interconnection. Id.

32

 30. When the ESC Harrison County Power Facility is operating at full capacity,
it will deliver approximately 4,800,000 MWh to the grid annually. The Facility will
generate enough electricity to power approximately 424,000 homes annually. Id.at 25;
Applicant Ex. JPB-D at 25.
31. During the construction phase of the Project, 2,543 job years and $187.4
million in employee compensation are associated with the plant. Other constructionrelated economic impacts include value added of $306.3 million and output of $880.8
million. Application Appendix Ex. 22 at 5; Applicant Ex. TSW-D at 4-5.
32. Using 2016 dollars, during the first year of operation the plant will be
associated with 713 full and part-time jobs and $47.9 million in employee payroll.
Additionally, annual operating economic impacts include value added of $72.8 million
and total economic impact of $287.4 million dollars per year. Application Appendix Ex.
22 at 7; Applicant Ex. TSW-D at 6.
33. ESC Harrison County Power intends to employ up to thirty permanent
workers at the Facility upon commencement of operation. Application at 3; Application
Appendix at 8.
34. The PILOT and Lease Agreements will cause Harrison County to realize
approximately $27 million in new revenues over thirty years, and Harrison County and
West Virginia will receive benefits of approximately $287.4 million annually. Staff Ex.
JA-D at 3.
35. More than one million craft workers hours will be needed to construct the
Project, and 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 2-3.
36. The entire construction of the Project would create 805 jobs for West
Virginia, and generate $61.5 million in wages for workers connected to the Project and
$1 1.7 million in State tax revenues. Construction Trades Ex. MJ-D at 6, Exhibit 1.
37. The Visual Analysis concluded that visibility of the Project is limited by its
location in a large concave depression surrounded by moderately steep hill slopes screening
the viewshed of areas west, north and east of the Site. Application Appendix Ex. 17 at 7,9.
The closest properties to the south of the Project that are either at the same
38.
elevation as thc; Project or are significantly elevated will have the highest probability of
visibility of the Project. Applicant Ex. MF-D at 5.

33

 39. The Project will not be visible from nearby municipal areas such as
Bridgeport, Weston, Grafton, or Fairmont.
; .dI Application Appendix Ex. 17 at 9, Figures 13
(A-C).

Of the approximately 810,618 acre study area, only 0.3 to 0.6 percent have
40.
some visibility of the Project (207 to 501 acres). Visibility analysis was conducted under
both bare earth and mature cover scenarios. Visibility of the Project beyond 14 miles was
not detected under either scenario. Application Appendix Ex. 17 at 7, 9; Applicant Ex. MFD at 5.
The Project is not visible from any state parks, national wildlife preserves,
41.
state refuges, state wildlife management areas, national landmarks, national parks, national
recreation areas, scenic rivers, scenic highways, or other sensitive features. Application
Appendix Ex. 17 at 8.
There are no historic architecture points, cemeteries or NRHP points within
42.
the proposed Project area. Six NRHP listings are near the Facility, but do not have visibility
of the Facility. Application Appendix Ex. 17 at 9- IO, Figure 15; Applicant Ex. MF-D at 4-5.
ESC Harrison County Power has incorporated mitigation of view within its
43.
design plan through the substantial planting of trees along Henry Ford Avenue between
the Facility and the residential area. Applicant Ex. JPB-D at 14-15.
ESC Harrison County Power will file a Federal Aviation Administration
44.
Notice of Construction or Alteration. Applicant Ex. JPB-D at 32.
ESC Harrison County Power does not expect that a notice of aviation
45.
hazard will be issued, but flags and possibly warning lights might be required.
Noise data were collected at five monitoring locations to the southeast, south,
46.
and southwest of the Facility: the nearest receptor, a residence owned by Mrs. Wright on
Henry Ford Avenue at the crest of a hill; a residence on North Tibbs Avenue; the First Free
Will Baptist Church directly south on North Ohio Avenue; a residence to the southwest on
Pinnickinnick Street; and a Pike Street residence located to the southwest. Application
Appendix Ex. 25 at 9-10.
Any residential areas west, east, or north of the Project would be separated
47.
from the Project by steep ridgelines. Tr. at 24-25; Application Appendix Ex. 25 at 6.
Road noise from U.S. Route 50 and rail noise from the nearby active CSX
48.
tracks near North Ohio Avenue were prevalent at four of the five monitoring locations in
the study. Application Appendix Ex. 25 at 9-12.

34

 The ambient level at the closest residence of Mrs. Wright at the crest of the
49.
hill is 49-52 dBA but then increases to as much as 60-61 dBA after cresting the hill and
proceeding to the south toward U. S . Route 50. Application Appendix Ex. 25 at 11-12.
50.
The Noise Study assessed the operation of earth moving equipment, driving
of piles, erection of structures, truck or other traffic, installation of equipment, and
cleanup and reclamation. Id. at 26. No dynamiting activities are expected to occur
during construction of the Facility. Application Appendix at 80.
51.
The modeling used a highly conservative method by assessing maximum
noise possible with the combined pieces of equipment that might be utilized, resulting in
a maximum noise value for a condition which will never occur. Applicant Ex. JPB-R
at 8.
52. Because of the nature of the Site, trees, the adjacent hills and recycling
structures, and noise mitigation techniques, most locations near the Site will have five or
more db of shielding. Applicant Ex. JPB-R at 7-8.
53. The Study found that the closest receptor, which is the residence on Henry
Ford Avenue at the crest of the hill, would experience an increase in sound level during
operation of about seventeen to eighteen dBA. ESC Harrison County Power, however, is
purchasing this property and the residents are moving. ESC Harrison County Power will
be installing additional noise mitigation plantings on this property. Tr. at 25.
54. The operational noise model was conservative in that the maximum noise
value was evaluated from the boundary or perimeter of the power plant. This method
provides higher noise estimates than what would be anticipated as several of the noisegenerating features at the power plant are located within the complex, shielded by other
plant buildings. Application Appendix at 82-83.

55. Beyond the crest of the hill are other residences but the hillside provides
considerable shielding of close to eight to ten db. Application Appendix Ex. 25 at 40-4 1 ,
56. It is anticipated that noise mitigation efforts will provide approximately
five or more db reduced sound level at the receptors. Applicant Ex. JPB-R at 8.
57. ESC Harrison County Power intends to plant trees along the southern and
southeast side of the Facility boundary. The rows of trees will act as a dampening and
buffer to noise. Id.
In November 2016 ESC Harrison County Power filed an appropriate permit
58.
application with the West Virginia Department of Environmental Protection, Division of
Air Quality. Application Appendix at 13, 31-32.
35

 59. The primary source of water for the Facility operations will be a dedicated
pipeline from the CWB. Facility process water will consist primarily of cooling system
blowdown and oil water separator effluent. Application Appendix at 33.
60. Following treatment, the Facility will discharge approximately 100,000
gallons per day of treated water to the CSB system. Treated water will also be used
onsite for maintaining the trees and plants in the green spaces and for other nonconsumptive uses in accordance with the Facility Site discharge permits. Id.
61. Potable water will be used for several Facility uses, including fire water,
service water, plumbing fixtures, combustion turbine make-up water, and demineralized
water system make-up. It is estimated that 100,000 gpd (average of 70 gpm) of water
will be utilized for plant operations.; .dI Applicant Ex. JPB-D at 28.
Wherever practical, wastewater generated by these uses will be recycled.
62.
Drains from plumbing fixtures will be collected in a sanitary sewer system and pumped
or gravity fed to an existing CSB line. Application Appendix at 33.
The Facility will not affect groundwater resources on the Site because all
63.
construction activities will be located several feet above known aquifers and groundwater
with the exception of foundations for the piles used for the heavy equipment. Heavy
equipment will penetrate the shallow groundwater system within the surface mine fill but
wi!! not affect its flow. Id.at 4; Applicant Ex. MF-D at 7.
Surface waters will be impacted by construction of the Facility but will be
64.
addressed with control measures that collect stormwater and best management practices
to protect nearby and downstream surface waters. Applicant Ex. MF-D at 7.
65. No aquifers will be affected by the Facility, and there will be no injection
of process or other waters. Applicant Ex. MF-D at 8.
67. The United States Fish and Wildlife Service has stated that no threatened or
endangered species are known to exist on the Site. Application Appendix Ex. 23;
Applicant Ex. JPB-D at 30-3 1.
68. The West Virginia Department of Natural Resources has indicated that they
have no known records of State rare, threatened or endangered species and sensitive
habitats within the Project area. Application Appendix Ex. 24; Applicant Ex. JPB-D
at 31.
69. The Traffic Study indicates that during the construction phase the Project
will have only a minor impact on the operation of the existing transportation network and
36

 that the nearby intersections will also operate at an acceptable level per guidelines
established by the DOH. Application Appendix Ex. 26 at 1-2.
ESC Harrison County Power will address short-term recommendations
70.
made in the Traffic Study to address any impacts during the construction phase.
Application Appendix at 83; Application Appendix Ex. 26.
7 1. ESC Harrison County Power and its contractors will not change shifts or
block roads with heavy haul deliveries while school buses are scheduled to be on roads
within one mile of the Site. Applicant Ex. JPB-R at 13-14, Exhibit A at 6.
During operation, the traffic associated with the Project will be limited to
72.
operational and maintenance vehicles. It is anticipated that 30 vehicles making 23 peak
hour trips will enter and exit the Site each day for operational activities, which will have
vir iually no impact to the transportation network. Application Appendix Ex. 26 at 1.
73. Redevelopment of the Site should enhance property values. Application
Appendix at 76.
74. The CWB has excess capacity and will supply water to the plant.
Application Appendix at 35.
75.
at 34-35.

The Facility will connect to the CSB sewer system. Application Appendix

CONCLUSIONS OF LAW

The Project will provide wholesale electric service, and there will be no
1.
direct financial impact to West Virginia retail ratepayers.
ESC Harrison County Power filed a complete Application that satisfied the
2.
requirements of the Siting Rules of the Commission.
3.
ESC Harrison County Power demonstrated a sufficient interest in
constructing the Project. First, ESC Harrison County Power has demonstrated that it has
a legitimate business purpose in undertaking the Project and ESC Harrison County Power
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 pursue various other required permits, and to obtain the
property interests necessary to construct and operate the Project. Third, ESC Harrison
County Power has committed to coordinating its activities with the Commission and
other state and federal agencies.

37

 Need for this Project has been established because it is in the public interest
4.
to develop diversified sources of fuel to generate electricity, including alternatives such
as natural gas; &additionalgeneration 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 the ESC Harrison
County Power’s base load combined cycle fully dispatched generating facility will assist
in meeting the daily demand for electric service.

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 operation of the Project.
While approximately 0.3 to 0.6 percent (207 to 501 acres) of the area within
7.
20 miles of the Project will have some limited visibility of the Project, the impact of the
presence of the Project and view of the Project will be minimally disruptive to the
community.

8.
The ESC Harrison County Power noise study complied with Commission
requirements, and accurately portrayed ambient sound levels for the community near the
Facility.
Based upon the totality of the evidence presented to us, the Project’s
9.
construction and operational sound levels are expected to be similar to existing ambient
sound levels and noise impacts are not expected to be objectionable.
10. The Commission is satisfied that the ESC Harrison County Power Project
will not cause any substantial problems or difficulties with respect to existing traffic
patterns.
11. Because the Traffic Study shows only a slight increase in traffic after
completion of the Project, the Commission concludes the Project will not have a
significant or substantial impact on traffic in and around the Project area.
12. The Joint Stipulations, including the conditions contained therein, are
reasonable and will be adopted.

38

 13. 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. W.Va.
Code 524-2- 11c.
14. In light of the significant tax revenues and other economic benefits that will
accrue to Harrison 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
$24-2- 11c(c).
15. The record is clear that the construction of the facility will have a
substantial positive impact on the local economy and local employment. Id.
16. Based on the entire record and the analysis contained in this Order, the
Commission concludes that ESC Harrison County Power should be issued a siting
certificate for this Project with the conditions adopted in this decision.

ORDER
IT IS THEREFORE ORDERED that ESC Harrison County Power is granted a
siting certificate, pursuant to W.Va. Code 524-2-1 IC, for the construction and operation
of a natural gas-fired wholesale electric generating facility of approximately 630 MW
approximately 0.5 miles from the municipal boundary of Clarksburg, in Harrison County,
including an approximately 1.8-mile 138 kV (less than 200,000 volts) related
transmission support line, associated interconnection facilities, and other necessary
appurtenances as fully described in the Application and discussed in this Order, subject to
the following conditions:
1.

At least 30 days prior to beginning construction ESC Harrison
County Power shall provide the PSC notice of start of construction.

2.

Prior to the Cominercial Operation Date (COD) Harrison County
Power shall file a verified statement that the required detailed plans
for the Harrison County Power project have been completed,
reviewed and approved in accordance with the appropriate codes and
standards and where required, under the supervision of a licensed
professional engineer.

3.

At least 30 days prior to beginning construction of the Project,
Harrison County Power shall file a verified statement that certifies
that required permits, approvals, certifications, notices, and
consultations have been obtained, including the following:

39

 a. PJM Interconnection Services Agreement
b. State Historic Preservation Office (SHPO) Consultation
c. United States Fish and Wildlife Service (USFWS) Section 7
Consultation
d. WV DNR Lands Inquiry
e. Department of the Army 404 Permit(s)
f. State 401 Water Quality Certification
g. WV DNR Stream Activity Permit
h. Air Quality Permit from the West Virginia Division of Air
Quality
i. West Virginia National Pollutant Discharge Elimination
System (NPDES) Permit
j. Groundwater Protection Plan (GPP)
k. Site Plan Approval and Grading Permit
1. Federal Aviation Administration (FAA) Notice of
Construction or Alteration
m. Construction Stormwater General Permit and Stormwater
Pollution Prevention Plan
n. West Virginia Department of Highways (WVDOH) IAR
Engineering and Construction Agreement
0. Above ground Storage Tank Water Resources Protection
Act and the Public Water Supply Protection Act approvals.
Provided, however, with respect to the approvals and perinits
set forth in p., q., and r. below it is recognized that one or more
may not be available until immediately before the activity for
which the approval or permit is issued, commences, in which
event Harrison County Power shall file verified statements
within a reasonable time after receipt certifying that the
approval or permit has been obtained:
p. Railroad Right of Way Encroachment Approvals
q. Building Permits
r. Highway Heavy Haul Permits
4.

At least 30 days before operation of the Facility, Harrison County
Power shall file a verified statement that certifies that all required
perinits, approvals, certificates, notices and consultations
required prior to the start of operation have been obtained,
including the following:
a. Stormwater General Permit and Stormwater Pollution
Prevention Plan
40

 b.
c.
d.
e.
5.

Spill Prevention Control and Countermeasures (SPCC) Plan
Emergency Response Plan (Em)
Pre-treatment/Discharge Permit - Sanitary
Water System Connection

Fuel for the Project will be delivered through a pipeline to the plant,
constructed, operated and owned by a third party (the “Pipeline
Project”). Prior to the beginning of construction on the Pipeline
Project, ESC Harrison County Power shall file a verified statement
that certifies that a binding contract(s) are or will be in place for:
a.

Installation and construction of adequate natural gas delivery
points, including Federal Energy Regulatory Commission
(FERC) certificates, if required, for new delivery points on
interstate pipelines.

b.

Construction and operation of the pipeline necessary to
deliver the fuel to the plant site, including all necessary
measurement and pressure regulation equipment.

e.

A contracted fuel supply.

6.

The verified statement filed in connection with Condition 5 above
shall provide a verified statement of the pipeline contractor
certifying that all options for, or rights of way, and all required
permits necessary for the construction and operation of the Pipeline
Project have been obtained.

7.

Applicant shall plant in a staggered pattern along the southern border
of the property from a location just east of the onsite pond up the
slope to a point between Henry Ford Avenue and the northeast
corner of the plant fence, and along the Henry Ford Avenue property
line, evergreen and deciduous trees in accordance with the schedule
attached hereto as Exhibit A.

8.

Care of the trees and shrubs planted in accordance with Condition 7
shall be incorporated into the operations and maintenance plan for
the site. Any such tree or shrub that does not survive will be
replaced in kind.

9.

Harrison County Power shall provide an independent expert report
on the amount needed to decommission the facility less market or
salvage value and post a Letter of Credit (“LoC”), purchase a bond
41

 or surety, or place the present value of such an amount in an escrow
fund prior to beginning operation.
Harrison County Power
recognizes that the plant value far exceeds the decommissioning
costs in the first ten (IO) 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. In no case shall the decommissioning
amount exceed the maximum value required by the lease agreement,
which is $3 million.
The report shall be updated thereafter as mutually agreed between
Harrison County Power and the Harrison County Commission, but
no less frequently then every ten (IO) years thereafter until the
provision of the HCC Lease which requires a $3 million fund
becomes operative. 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.
Harrison County Power shall provide the report to the Harrison
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 Harrison County Power's
assets.
Within ninety (90) days of any report that requires a contribution to
the decommissioning fund, Harrison County Power shall 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
Harrison County Power and the Harrison County Commission.
Reductions to, or withdrawal from, the decommissioning fund shall
not be allowed sooner than ninety (90) days after the Harrison
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 Harrison County Commission and state that the
obligations set forth in the agreement apply to Harrison County
Power, its successors and assigns.
Each report of the qualified independent third party shall also be
filed with the Commission as a closed entry in this matter. The
42

 Commission 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.
10.

Harrison County Power, and its contractors, shall not change shifts
or block roads with heavy haul while school buses (elementary,
middle or high school) are scheduled to be on the roads within 1
mile of the site.

11.

Harrison County Power shall file proof of its exempt wholesale
generator (EWG) status from FERC prior to commencing
commercial operation.

12.

The siting certificate shall become invalid if Harrison County 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 tenth year following the granting of
the certificate without petitioning the Commission for approval to
expand these time frames.

13.

If Harrison County Power seeks to transfer its certificate, Harrison
County Power is required pursuant to Siting Rule 7.1 to notify the
Commission 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.

These conditions are also set forth at pages 5-9 of the Joint Stipulation attached to this
Order as Appendix A.
IT IS FURTHER ORDERED that the Joint Stipulation and Agreement for
Settlement submitted by ESC Harrison County Power, Staff, and the Building Trades is
adopted and attached to this Order as Appendix A.
IT IS FURTHER ORDERED that the Joint Stipulation and Agreement for
Settlement of Ohio Valley Jobs Alliance’s Claims submitted by OVJA, ESC Harrison
County Power, Staff, and the Building Trades also filed is adopted and attached to this
Order as Appendix B.
IT IS FURTHER ORDERED that, pursuant to W.Va. Code §24-2-11c(h), all of
the terms and conditions of this Order apply to any subsequent owners or operators of the
ESC Harrison County Power Project.
43

 IT IS FURTHER ORDERED that the Memorandum Agreement dated July 7,
2017, between ESC Harrison County Power, the North Central Building and
Cnmtruction Trades Council, AFL-CIO, and the West Virginia State Building and
Construction Trades Council, AFL-CIO is approved in relation to the ESC Harrison
County Power Project. The Commission anticipates that all representations and
commitments made by the parties therein will be kept by the parties. Approval of the
Memorandum Agreement by the Commission does not mean the Cornmission is the
proper forum to resolve any disputes that may arise under the Agreement.
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 Trite Copy, 'Teste,

Ingrid Ferrell
Executive Secretary

SMSIsm
170036cf.doc

44

 Appendix A

PUBLIC SERVICE COMMISSION
OF WEST VIRGINIA
CHARLESTON

ESC H A W S O N COUNTY POWER, LLC
Application for a Siting Certificate to Authorize the
Construction and Operation of a Wholesale Electric
Generating Facility in Harrison County, West Virginia
JOINT STIPULATION AND AGREEMENT FOR SETTLEMENT
Pursuant to W, Va. Code

$9 24-1-7,

24-2-1(c) and 24-2-1 I C and Rules 12 and 13 of the

Public Service Commission of West Virginia’s (the “Commission”) Rules of Practice and

Procedure, Harrison County Power, LLC (“Harrison County 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,” and together with Harrison County
Power, Staff,and the Building Trades, the “Stipulating 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 Stipulating Parties of all issues raised in Case

No. 17-0036-E-CS, on the terms and conditions set forth below, The Joint Stipulation resolves
all of the issues in this proceeding, and recommends that the Commission grant Harrison County
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
Stipuiation, In support of the Joint Stipulation, the Stipulating Parties submit the following:

 I.
I.

PROCEDURAL HISTORY

On January 17, 2017, Harrison County Power filed with the Commission an

Application for a Siting Certificate pursuant to West VirFinia Code

$9 24-2-lIc) and 24-2-1 I C to

authorize the construction and operation of a natural-gas fired wholesale electric generating
facility of approximately 630 MW (the “Facility” or the “Project”) in Harrison County including
an approximately 1.8 mile 138 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 January IS, 201 7, the Commission issued an Order requiring Harrison County

Power to publish a Notice of Filing one time in a newspaper of general circulation in Harrison
and Kanawha Counties. Harrison County Power caused the Notice of Filing to be published in

The Charleston Gazette on January 25, 2017, and in The Exponent Telegram on January 24,
201 7, and tiIed the corresponding affidavits of publication with the Commission on February 6,
2017, and February 13, 2017, respectively.

3.

On February 13, 201 7, the Building Trades filed a petition to intervene,

4.

On February 21, 2017, Staff filed its Initial Joint Staff Memorandum, and on

February 22,2017, Staff filed its Further Staff Memorandum.
5.

On February 23, 2017, Ohio Valley Jobs Alliance (”OVJA”) fled a Protest,

Petition to Intervene, and Request for Formal Hearing.

6.

By Order dated March 30, 2017, the Commission granted the Building Trades’

and OVJA’s petitions to intervene and established a procedural schedule for the matter which
called for the filing of Harrison County Power’s direct testimony on March 31, 2017, the filing

of Staff and Intervenor direct testimony and rebuttal testimony to Harrison County Power on
May 26, 2017, a site visit and public comment hearing on June 6, 2017, the filing of Harrison
2

 County Power’s rebuttal testimony, and the filing of Staffs and Intervenors’ rebuttal testimony
to each other on June 30, 2017, a deadline to file a proposed order of witnesses for the

evidentiary hearing and any motion(s) to excuse witnesses on July 7, 2017, and an evidentiary
hearing to begin on July 1 1, 20 17, and coritinuing on July 12 and I 3, 201 7, if necessary. The
Order also required Harrison County Power to cause to be published, one time in Harrison and
Kanawha Counties, a Notice of Public Comment and 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.
7.

Harrison County Power filed the Direct Testimonies of John P. Black, P.E.,

Andrew W. Dorn, IV, Matthew J. Dom, CPA, Tom S. Witt, Ph.D., Matthew Fluharty, P.E.,
Timothy S. Kirk, P.E., and Carol Colby on March 31,2017.
8.

On various dates, the Ststf’f filed discovery requests to Harrison County Power,

and Harrison County Power answered the same, on various dates, by discovery responses.

9.

On May 25, 201 7, the Building Trades filed the Direct Testimony of Steve White

and the Direct Testimony of Michael Jin.
10.

On May 26, 2017, Staff filed the Direct Testimonies of Josh Allen, Eric F.

deCruyter, and Donald E. Walker, In its Direct Testimony, Staff recommended the Commission
adopt various conditions to a Siting Certificate granted Harrison County Power in this case.
11.

Also on May 26, 2017, OVJA filed the Direct Testimonies of Jon A. Pollack,

James Russel Thomas, Stephen Baker McElroy, and Emily Virginia Rockwell.

3

 12.

On May 3 I , 201 7, and June 1, 201 7, the Parties jointly filed the Joint Viewpoint

List, and the Joint Viewpoints and Viewpoint Descriptions, respectively, for the Conmission
Site visit.
13.

On June 2, 2017, Harrison County Power filed an affidavit of publication

reflecting that publication of the Notice of Public Comment and Evidentiary Hearing occurred on
May 23, 2017, in The Charlesfon Gazelle (Kanawha County); on June 13, 2017, Harrison
County Power filed an affidavit ofpubIication reflecting that publication of the Notice of Public
Comment and Evidentiary Hearing occurred on May 23, 2017, in The Exponent Telegram
(Harrison County).
14.

The site visit was conducted as scheduled on June 6, 2017, and the public

comment hearing was also held as scheduled on June 6,201 7.

IS.

Harrison County Power fiied the Rebuttal Testimonies of John P. Black, P.E.,

Andrew W. Dom, IV, and William Hanna, P.E. on June 30,2017.
16,

On July 3, 2017, OVJA, Harrison County Power, Staff and the Building Trades

filed a "Joint Stipulation and Agreement for Settlement of Intervenor Ohio Valley Jobs Alliance's
Claims" which proposed and recommended to the Commission the settlement of the claims
OVJA had made in its Protest, Petition to Intervene and Request for Formal Hearing and other
documents filed in this proceeding.

Also on July 3, 2017, OVJA filed a "Notice of Voluntary

Withdrawal (Without Adjudication) of Intervenor Ohio Valley Jobs Alliance's Claims" in this
proceeding.
17.

During the pendency of this case, over 537 letters and postcards in support of the

Project have been filed with the Commission, with only one letter or postcard in opposition to
the Project having been filed, The single letter or postcard in opposition was by intervenor
OVJA that has voluntarily withdrawn.
4

 18,

The Stipulating Parties have engaged in settlement discussions encompassing the

issues raised in this case. Based on those discussions, the Stipulating Parties have reached
agreement that a siting certificate for the Project should be granted to Harrison County 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.

19.

SETTLEMENT

The Stipulating Parties agree that the Cornmission should approve the

Memorandum Agreement that Will be filed in the near future between Harrison County Power,

I L C , the North Central West Virginia Building and Construction Trades Council, AFL-CIO, and
the Building Trades (collectively the “Signatories”), and make clear that the Cornmission

anticipates that all representations and 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 proper

forum to resolve any disputes that may arise from operating under such Agreement.
20.

The Stipulating Parties agree and recommend to the Commission that the Siting

Certificate requested by Harrison County Power in this case be granted to Harrison County
Power, and that the Siting Certificate be subject to the following conditions:

I . At least 30 days prior to beginning construction ESC Harrison
County Power will provide the PSC notice of start of construction.
2. Prior to the Commercial Operation Date (COD) Harrison County
Power shall file a verified statement that the required detailed plans
for the Harrison County Power project have been completed,
reviewed and approved in accordance with the appropriate codes and
standards and where required, under the supervision of a licensed
professional engineer.

5

 3. At least 30 days prior to beginning construction of the Project,
Harrison County Power shall file a verified statement that certifies
that required permits, approvals, certifications, notices, and
consultations have been obtained, including the following:
a. PJM [nterconnection Services Agreement
b. State Historic Preservation Office (SHPO) Consultation
C. United States Fish and Wildlife Service (IJSFWS) Section 7
Consultation
d. CVV DNR Lands Inquiry
e. Department of the Army 404 Permit(s)
f. State 401 Water Quality Certification
g, WV DNR Stream Activity Permit
h. Air Quality Permit from the West Virginia Division of Air
Quality
West Virginia National Pollutant Discharge Elimination System
1.
(NPDES) Permit
j. Groundwater Protection Plan (GPP)
k. Site Plan Approval and Grading Permit
1. Federal Aviation Administration (FAA) Notice of Construction or
A 1terat i on
m. Construction Stormwater General Permit and Stormwater
Pollution Prevention Plan
n. West Virginia Department of Highways (WVDOH) IAR
Engineering and Construction Agreement
0. Above ground Storage Tank Water Resources Protection Act and
the Public Water Supply Protection Act approvals.
Provided, however, with respect to the approvals and permits set
forth in p., q. and r. below it is recognized that one or more may not
be available until immediately before the activity for which the
approval or permit is issued, commences, in which event Harrison
County Power shall file verified statements within a reasonable time
after receipt certifying that the approval or permit has been obtained:
p. Railroad Right of Way Encroachment Approvals
q. Building Permits
r. Highway Heavy Haul Permits

4. At least 3 0 days before operation of the Facitity, Harrison
County Power shall file a verified statement that certifies that
all required permits, approvals, certificates, notices and
consultations required prior to the start of operation have been
obtained, including the following:

6

 a. Storrnwater Generaf Permit and Stormwater Pollution
prevention Plan
b. Spill Prevention Control and Countermeasures (SPCC) Pian
c. Emergency Response Plan (ERP)
d. Pre-treatmentlDischge Permit - Sanitary
e. Water System Connection
5 . Fuel for the Project will be delivered through a pipeline to the plant,

constructed, operated and owned by a third party (the “Pipeline
Project”). Prior to the beginning of construction on the Pipeline
Project, Harrison County Power shall file a verified statement that
certifies that a binding contract(s) are or will be in place for:
a. Installation and construction of adequate natural gas delivery points,
including Federal Energy Regulatory Commission (FERC)
certificates, if required, for new delivery points on interstate
pipelines.
b. Construction and operation of the pipeline necessary to deliver the
fuel to the plant site, including all necessary measurement and
pressure regulation equipment.

c. A contracted fuel supply.

6. The verified statement filed in connection with Condition 5 above shall
provide a verified statement of the pipeline contractor certifying that all
options for, or rights of way, and all required permits necessary for the
construction and operation of the Pipeline Project have been obtained.
7. Applicant shall plant in a staggered pattern along the southern border of
the property from a location just east of the onsite pond up the slope to
a point between Henry Ford Avenue and the northeast corner of the
plant fence, and along the Henry Ford Avenue property line, evergreen
and deciduous trees in accordance with the schedule attached hereto as
Exhibit A.

8. Care of the trees and shrubs planted in accordance with Condition 7
shali be incorporated into the operations and maintenance plan for the
site. Any such tree or shrub that does not survive will be replaced in
kind.
9. Harrison County Power shall provide an independent expert report on
the amount needed to decommission the facility less market or salvage
value 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. Harrison County Power recognizes that the plant
value far exceeds the decommissioning costs in the first ten (10) years
of its service life. Nevertheless, the initial LoC, bond or surety, or
7

 escrow account shall be no less than $250,000 to cover the cost of
soliciting and engaging a decommissioning company. In no case shall
the decommissioning amount exceed the maximum value required by
the lease agreement, which is $3 million.
The report shall be updated thereafter as mutually agreed between
Harrison County Power and the Harrison County Commission, but no
less frequently then every ten ( I 0) years thereafter until the provision of
the HCC Lease which requires a $3 million fund becomes operative.
The decommissioning fund amount may vary over time depending on
changes in the estimated market or saIvage value of the Project, the
estimated cost of dismantling the plant and the expected ongoing life of
the Project.
Harrison County Power will provide the report to the Harrison 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 Harrison County Power's assets.
Within ninety (90) days of any report that requires a contribution to the
decommissioning fund, Harrison County 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 Harrison
County Power and the Harrison County Commission, Reductions to, or
withdrawal from, the decommissioning h n d shall not be atlowed
sooner than ninety (90) days after the Harrison 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 Harrison County Commission and
state that the obligations set forth in the agreement apply to Harrison
County 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 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.
10. Harrison County Power, and its contractors, shall not change shifts or
block roads with heavy haul while school buses (elementary, middle or
high school) are scheduled to be on the roads within 1 mile of the site.

11. Harrison County Power shall file proof of its exempt wholesale
generator (EWG) status from FERC prior to commencing commercial
operation.
8

 12. The siting certificate shall become invalid if Harrison County Power
has not commenced a continuous course of construction within five (5)
years of the dare the final certificate is granted or has not completed
construction by the tenth year following the granting of the certificate
without petitioning the Commission for approval to expand these time
frames.

13, if Harrison County Power seeks to transfer its certificate, Harrison
County Power is required pursuant to Siting Rute 7.1 to notify the
Commission 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.
21.

The Stipulating Parties agree that the terms and conditions of the PILOT

agrccmcnt between Harrison County Power, the County Cornmission of Harrison County, West
Virginia (Harrison County Commission), the Board of Education of Harrison County, West
Virginia, the Sheriff of Harrison County, West Virginia, and the Assessor of Harrison County,
West Virginia, the Lease Agreement between the Harrison County Commission and Harrison
County Power, and the Industrial Access Road Agreement between the West Virginia
Department of Transportation, Division of Highways and the Harrison County Commission 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,
22.

The Stipulating Parties agree that nothing in this Joint Stipulation shall be

interpreted to preclude any of the Stipulating Parties from taking any position it may choose on

any of the issues discussed herein in other siting certificate cases,
23.

This Joint Stipulation 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 at1 of its material terns. It results from a review of all filings in this case, the Stipulating
Parties' prefiied testimony, and discovery and discussion.

9

It reflects compromises by the

 Stipulating Parties and the withdrawal of their respective positions asserted in this case, and is
being proposed to avoid costly litigation between the Stipulating Parties. The Stipulating Parties
propose this Joint Stipulation without adopting any of the compromise positions [hat may be set
forth herein as regulatory principles applicable to future proceedings.

The Stipulating Parties

support and recommend this Joint Stipulation as being in the public interest and as a fair,

reasonable, and complete resolution of all the issues raised in this proceeding. The Stipulating
Parties acknowledge that it is the Commission’s prerogative to accept, reject, or modify

MY

stipulation. In the event that the Joint Stipulation is modified or rejected by the Commission, it

is expressIy understood that the Stipulating 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 Stipulating Parties, on the basis of the foregoing, respectfully request
the Commission issue findings of fact and conclusions of law granting Harrison County Power

LLC its Siting Certificate consisting of a natural-gas fired wholesale electric generating facility

of approximately 630 M W in Harrison County including an approximately 1.8 mi[e 138 kV (less
than 200,000 volts) related transmission support line, associated interconnection facilities, and

10

 other necessary appurtenances as more particularly described in Harrison Count) I'o\icer's
Application. subject t o the conditions set forth in this Joint Stipulation.
I;+V

Respectfully submitted this

day of July, 20 1 7.

_-

--

Susan J. Riggs(lbV State Bar #5246).
SPILMAN THOMAS & BATTLE, PLLC
Spiiman Center
300 Kannwha Boulevard, East
Charleston, West Virginia 25301
{ 304) 3.10-383 1
Ifeinberr~~spiImsnlau..coin
s&g&?spi

Iii~anlaiv.corn

STAFF
OF
TIE
PUBLlC
COMMISSION OF WEST 'I'IRGmI.4

SERVICE

N1 Brooks Street
Charleston, West Virginia 25301
(304) 330-0763
Ibuin t'tiecdpsc.st;ltc.~ ~ 1 . 5

WES7 VIRGINIA STATE Bt'll-DIN<; ANI)
CON STRtf CTION TRADES COI.JNC1L
{AFL-CIO)

Vincent Trivelli (WV Statc Bar k8015)
The Law Oftice of Vincent 'frivclli, PLLC
178 Chancery Row
Murpantown, WV 26505
(504) 29 1-5223
\. mtr1\ <!!w.cstco. 1121

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 PUBLiC SERVICE COMMISSION
OF WEST VIRGINIA
CHARLESTON

JOINT STIPULATION AND AGREEMENT FOR SETTLEMENT OF INTERVENOR
owo VALLEY JOBS ALLIANCE’S CLAIMS
Pursuant to W. Va. Code

$5

24-1-7, 24-2-1(c) and 24-2-1 I C and Rules 12 and 13 of the Public

Service Cornniission o f West Virginia’s (“Cornmission”) Rules of Practice and Procedure, the Ohio
Valley Jobs Alliance and its Board o f Directors and Officers and its unincorporated chapter known as
North Central West Virginia Jobs Alliance (“OVJA”), ESC Harrison County Power, LLC (the
“Applicant”),

WV State Building and Construction Trades Council, AFL-CIO (“Building and

Construction Trades Council”), and the Staff of the Public Service Commission of West Virginia
(“Staff’) (collectively, the “Stipulating Parties”) join in this Joint Stipulation and Agreement for
Settlement of Ohio Valley Jobs Alliance’s Ctaims (the “Joint Stipulation”).

[n this Joint Stipulation, the Stipulating Parties propose and recommend to the Commission that
i t approve and adopt this settlement of the claims OVJA has made in its Protest, Petition to Intervene

and Request for Formal Hearing (“Petition”) and other documents filed in the above-captioned

proceeding. The Joint Stipulation resolves all of the issues of OVJA in this proceeding. The Parties
recommend that the Commission approve the Joint Stipulation without modification and submit the
fo 11owin g :
A.

Introduction and Procedural History

1,

On January 17, 20 17, the Applicant filed the Siting Application to construct and operate

an electric wholesale generating facility (the “Harrison County Facility”) and reiated 1.8 mile, 138 kV
transmission support line, associated interconnection facilities, and other necessary appurtenances in

 Harrison County, West Virginia (together with the Harrison County Facility, the “Harrison County

Project”), See Siting App. at 1.
2.

Prior to filing the Siting Application, on November 25, 2016, the Applicant filed an “Air

Permit Application

-

Combined-Cycle Power Plant Project - Clarksburg, Harrison County, West

Virginia” (the “Air Permit Application”) for the same Harrison County Project with the West Virginia
Department of Environmental Protection.

3.

On February 23, 2017, OVJA filed its Protest, Petition to Intervene, and Request for

Formal I-learing in this matter. As grounds for the Petition, OV JA asserted OVJA’s interest in the abovecaptioned proceeding stems from:

(a) the economic impacts to taxpayers of siting the Harrison County Project in
Harrison County given the PILOT Agreement; (b) the adverse environmental impacts of
siting the proposed Project in the geographical area impacted by air emissions and other
environmental impacts; (c) ensuring that as a condition to obtaining a Siting Certificate,
the Applicant obtains and maintains all permits required to construct and operate the
proposed Harrison County Project; and (d) the impact to the reliability of West Virginia’s
power supply from siting this additional natural gas powered facility in the state.
Petition at 8-9
4.

On March 30, 2017, the Commission entered a Procedurai Order which, among other

matters, granted OVJA’s Petition to Intervene.
5.

On May 26, 2017, OVJA filed the Direct Testimony of James Thomas, Virginia

Rockwell, Stephen McEIroy, and OVJA Expert Witness Jon Pollack. The Direct Testimony focused
primarily on OVJA’s interest in the potential impacts to air quality from the proposed Harrison County
Project, and its interest in any Siting Certificate issued by the Commission be conditioned on the
“Applicant‘s tirneiy compliance with all permit requirements of the Federal PSD program under the
Clean Air Act and West Virginia State Implementation Plan which require a permit to construct before

construction of the [Harrison County Project] can commence.

L

..

consistent with the [Commission’s]

 authority under

4 I SO- 16-5.1

,”

See Direct Testimony of Jon A. Pollack On Behalf of Intervenor Ohio

Vatley Jobs Aliiance ar 7.

B.

Terms of the Joint Stipulation and Settlement

6.

7he Stipulating Parties believe that with respect to Intervenor OVJA, this matter can be

resolved without a full, contested evidentiary hearing, particularly in light of the time and expense
OVJA’s participation in such a hearing would require for the Commission and the Stipulating Parties.

Therefore, the Stipulating Parties agree as follows:
a.

Condition of the Siting Certificate: The Stipulating Parties agree that they

recommend to the Commission that, as a condition of any Siting Certificate the Commission

may issue to the Applicant in the above-captioned proceeding, the Applicant should be required
to obtain and file proof of having obtained an Air Quatity Permit from the West Virginia

Division of Air Quality.
b,

Voluntarv Withdrawal of OVJ& Sirnultaneousiy with the filing of this Joint

Stipulation and Settlement Agreement with the Executive Secretary Office of the Commission,

OVJA shall file a voluntarily withdrawal of its Petition from the above-captioned proceeding.

7,

The Stipulating Parties support this Joint Stipulation and represent that each of its

provisions acceptably resolves all of the issues OVJA has raised in this case. Based on the record, the
Stipulating Parties recornmend that the Commission accept this Joint Stipulation and Settlement.
8.

The Stipulating Parties represent that OVSA’s pre-filed testimony is adequate to support

the Joint Stipulation. The Stipulating Parties agree that notwithstanding OVJA’s voluntary withdrawal
the Stipulating Parties have no objection to OVJA’s pre-filed direct testimony being admitted into the
evidentiary record without the necessity of sponsorship ar attendance by OVJA at any evidentiary
hearing in t h i s case.
3

 9

This Joint Stipulation results from a review of all evidence and tilings in this case, the

Stipulating Parties’ analyses o f all discovery, exhibits, and testimony, and good faith negotiation. The
Joint Stipulation is proposed to expedite and simplify the resolution of this case in the context of a
settlement with intervenor OVJA.
10.

The Stiputating Parties recommend that the Commission adopt this Joint Stipulation as

being in the public interest and as a fair, reasonable and complete resolution of all of the issues raised by
OVJA in this proceeding. This Stipulation and Settlement shall not have any issue preclusion or claim
preclusion effect in any proceeding other than the instant case. None of the Stipulating Parties waives

any position it has advanced in this proceeding. The terms of this Joint Stipulation reflect a negotiated
compromise among the Stipulating Parties and are not intended to establish a precedent on any matter
other than as provided herein and not intended as regulatory principles in future proceedings before this
Commission.
1I,

In the event that the Joint Stipulation is modified or rejected by the Commission, it is

understood that the Stipulating Parties are not bound to accept the Joint Stipulation as modified or
rejected arid that they may avail themselves of whatever rights are available to them under law or the

Commission’s Rules of Practice and Procedure. However, OVJA agrees that in the event the Joint
Stipulation is adopted by the Commission without modification to the condition set forth in paragraph
6.a. herein, OVJA will not appeal any Commission Order entered in this case to the W,Va. Supreme
Court of Appeals or to any other tribunal.

C.

Conclusion

WHEREFORE, the Stipulating Parties respectfully recommend and rcquest that the Commission
make appropriete findings of fact and conclusions of law adopting and approving the Joint Stipulation in

its entirety in any final order issued in this proceeding.

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 Dared und sEective OP July 3, 2017.

O W 0 VALLEY JOBS ALLIANCE,
ITS BOARD OF ~~wcrolWj
AND
OFFTCERS A N D NORTH CENTRAL
WEST VII'ICTNIA .JtIBS A L L I A K E

ESC HAliliISON COUNTY POWER, LLC

SP1LMAN THOMAS
Spilrntw Center
Emily V. &ford, Esqiiire
Gregory T. Frohman, Esquire
RENESCH, FRIEDLANDER, COPLAN &

ARONOFF LLP
200 Public Square

BATTLE, PLLC

300 Kunawlm Boulevard, East
Charleston, West Virginia 25301
(304) 340-383 I
Ifeii~berg~spilmarIlaw,com
srigss@spilmanlnw.com

Suite 2300

Clevelnnd, Ohio 41 1 14
William E. Robinsoti (WV Stale Bat # j139)
KeJby Thomas Gray (WV Slate Bur # I 1.145)

S'I'RFF OF'I'HE PUBLIC SERVICE
COMMISSlON OF WE:S'l" VIRGINIA

DINSMQRE Pt SHOf-IL, LLP
P.O. Box 1 I887
Charleston, West Virginin 35339-1 887
(304) 357-0900

williani.robinson@dinsmore.com
kelby.gray@dinsmore.coin

-

Linda S. Bouvette (th'VState Bar #5926)
301 Brooks Street
Charleston, West Virginia 25301
(304) 340-0763
I bouvette@psc .state.wv. us

WEST VIRGINIA STATE BUILDING AND
CONSTRUCTION TRADES COUNCIL
(A FL-CI 0)

THE L A W OFFICE OF VlNCENT TkVELLI,

P1,I .c
178 Chancery Row
Morgnntown, wv 26505
(304) 29 1-5223
vmtriv@wcstco iict

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