FILED. IN THE MATfER OF THE APPLICATION OF 1 AND CONSTRUCT A 161 KV TRANSMISSION LINE )

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1 BEFORE THE ARKANSAS PUBLlC SERVCE COMMSSON N THE MATfER OF THE APPLCATON OF 1 OKLAHOMA GAS AND ELECTRC COMPANY 1 FOR A CERTFCATE OF PUBLC CONVENENCE ) DOCKET NO. AND NECESSTY TO UPGRADE, OPERATE 1 AND CONSTRUCT A 11 KV TRANSMSSON LNE ) AND A SUBSTATON AND RELATED FACLTES ) N SEBASTAN COUNTY, ARKANSAS 1 OCT O A i '1 FLED DRECT TESTMONY OF MARK HAMLTON ON BEHALF OF OKLAHOMA GAS AND ELECTRC COMPANY OCTOBER,01

2 1. Q. A. EDUCATON AND BACKGROUND PLEASE STATE YOUR NAME, BUSNESS AFFlLlATlON AND ADDRESS. My name is Mark Hamilton. 1 am employed by Oklahoma Gas and Electric Company ( OG&E). My business address is P.O. Box 1, Mail Code M O, Oklahoma City, Oklahoma 101. My office is located at 0 South High Street, Oklahoma City, Oklahoma 1. Q. A. ON WHOSE BEHALF ARE YOU TESTFYNG? am testifying on behalf of OG&E Q. 1 A. 1 WHAT POS1TON DO YOU HOLD WTH OKLAHOMA GAS AND ELECTRC COMPANY? 1 am a Lead Transmission Planning Engineer in OG&Es Transmission Planning Department. 1 Q. 1 1 A. 0 1 PLEASE BRlEFLY DESCRBE YOUR EDUCATON, QUALFCATONS AND EXPERENCE. graduated from Oklahoma State University in 1 with a Bachelor of Science Degree in Electrical Engineering. 1 graduated from Central State University of Oklahoma {now University of Central Oklahoma) in 1 with a Bachelor of Science Degree in Computer Science. 1

3 1 joined the Company in December of 1 as an Engineer in the Distribution Engineering Department. have years of experience in distribution design and standards, years of electrical system studies, 1 years of distribution and transmission planning, years as Supenrisor of Design and Technology Services, years as a District Engineer Supervisor, years in design of major distribution projects, and years as a distribution planning engineer in the System Expansion business area. n September of 00 transferred to the Transmission Planning Department as a Lead Transmission Planning Engineer. am registered as a Professional Engineer in the State of Oklahoma. My 10 registration number is 101. am a member of the nstitute of Electrical and 11 Electronic Engineers and the National Society of Professional Engineers. 1 1 Q. WHAT ARE YOUR SPECFC DUTES N THE TRANSMSSON PLANNNG BUSNESS AREA? A. am responsible for working within the Transmission Planning department G charged with OG&E's compliance with the Planning Standards issued by the North American Electric Reliability Council (NERC). The Transmission Planning group evaluates the compliance of OG&E transmission system reliability, including computer modeling and reliability testing of the OG&E transmission system, using power flow analysis. The department evaluates how outages or interruptions in one part of the transmission system affect power flow, voltage and stability in other parts. The department identifies planning criteria violations and also initiates projects to eliminate these violations.

4 1 Q. A. 10 Q A s WHAT S THE PURPOSE OF YOUR DRECT TESTMONY N THE DOCKET? 1 will briefly describe the proposed project and explain why the Company needs to () convert a segment of existing kv transmission line to 1 kv capacity; () commence operation of a segment of existing transmission line at 11 kv which was initially constructed to 11 kv specifications, but is currently operated at kv; () construct and operate a new 0. mile segment of 11 kv transmission line; and () construct and operate a new substation. PLEASE DESCRBE THE PROPOSED PROJECT AND FACLTES. OGE is seeking authorization to construct, upgrade, convert and operate a proposed 11 kv transmission line from its Oak Park Substation to its Massard Substation and to build the new Johnson Substation. The total length of the proposed line is approximately.miles. 1 1 Q. 1 1 A. 0 1 DOES THE PROPOSED ROUTE UTLZE ANY EXSTNG OG&E FACLTES OR RGHT-OF-WAY? Yes. Under OG&Es proposed route only 0. miles of the total. project miles will be new 11 kv transmission line construction with its associated seventy (0) foot easement requirement.. miles of the project will utilize current transmission line constructed to 11 kv specifications, but operated currently at kv. This segment will require an increase in right-of-way from fifty (0) feet to seventy (0) feet to accommodate operation at the higher 11 kv level.. miles of the proposed project will entail the upgrading of an existing

5 1 Q. s A. kv transmission line to 11 kv capacity and an increase in right-of-way from fifty (0) to seventy (0) feet. PLEASE DESCRBE THE SUBSTATON TO BE CONSTRUCTED. Two 11-A. kv transformers and related equipment will be installed in the proposed Johnson Substation. The substation will step-down the transmission voltage to 1. kv for distribution over the Company's overhead lines. 11. io Q. 11 A NEED FOR THE PROPOSED FACLTES PLEASE BREFLY EXPLAN THE NEED FOR THE PROPOSED FACLTES. The growth of electrical demand in Ft. Smith, Arkansas is projected to exceed OG&Es electrical capacity for the Massard 11 kv transformer located in the Massard Substation by the summer of 01 for the contingency loss of portions of the ocal OG&E 11 kv transmission system. To reduce the loading on the Massard 11 / kv transformer, the conversion of the existing. mile kv Massard to Spalding transmission line to 11 kv, the removal of the Exposition Park and Spalding kv Substations, and the construction of the new 11 kv Johnson Substation, as shown on Exhibit MH-A, is proposed. A 0. mile section of new 11 kv transmission line will need to be constructed from where the existing transmission line terminates at Spading Substation to the existing Oak Park Substation. This will result in the new. mile 11 kv Massard - Oak Park OG&E transmission line. The. mile portion of the transmission conversion project already built to 11 kv standards will remain wood pole construction. The remaining. miles of existing kv transmission line and

6 1 he 0. miles of new 11 kv transmission line are planned to be on steel poles. Exhibit MH-B provides an overview of the project. Performing the above work will assure compliance with existing NERC standards. The proposed transmission route for this new 11 kv electrical source was selected to utilize the existing kv transmission line route as much as possible. The conversion of an existing transmission line is the least cost alternative, as addressed below, as well as having the least impact on land owners and the environment as explained in the testimony of Mr. Steve Thornhill. 10 ti Q. 1 1 A. 1 1 HAS OG&E PREVOUSLY MADE MPROVEMENTS TO HELP WTH TS ELECTRCAL LOADNG N THS AREA? Yes. The Company has previously made improvements that would allow the transfer of the electrical load from the existing kv transmission system served from the Massard kv electrical source to the area 11 kv transmission system. This was accomplished with the construction of the new 11 kv Adabel 1 Substation and the removal of the -1. kv Van Buren Substation. This 1 1 project reduced he loading on the kv system allowing for this conversion project to be delayed for approximately two years. 0 1 Q. BESDES THE TRANSMSSON LNE WORK DESCRBED, WLL THERE BE A NEED FOR ADDTONAL WORK?

7 1 A. Yes. n addition to the transmission work associated with this project, there is distribution work required as well as the need for the construction of the Johnson Substation. The elimination of the -1. kv Exposition Park Substation, due to insufficient property space to facilitate the conversion to 11 kv, requires the construction of the Johnson Substation. The installation of two 11-. transformers, the rest of the q. kv substation equipment, the 1. kv network to get the distribution capacity out of the new substation to the overhead distribution system. io Q A WTHOUT THE CONSTRUCTON AND UPGRADE OF THESE PROPOSED FACLTES, WHAT RSK, f ANY, WOULD THE SYSTEM NCUR? Should there be a loss of the 11 kv Ft. Smith to Arkoma transmission line or a loss of the 1 kv Arkoma -Third St. transmission line, the Massard 11- kv bus tie transformer will overload. The two remaining 11 kv transmission lines serving Ft. Smith from the Ft. Smith substation tie together at Massard Substation forcing electrical load to travel through the Massard 111 kv bus tie transformer resulting in its overload. See Exhibit MH-B for reference to the 1 kv lines at Massard Substation. An overload of the Massard 111 kv 1 transformer may cause the transformer to fail. This would result in further 0 1 overoads on the transmission grid resuting in further outages to OG&E electrical customers.

8 1 Q. A. CAN YOU MORE SPECFCALLY DESCRBE THE NTERRUPTON THAT COULD OCCUR? Yes. The loss of either of the existing of 11 kv Ft. Smith to Arkoma or the 11 kv Arkoma to Third St. transmission lines will result in the Massard Substation 111 kv bus tie transformer overloading to over 100% of its emergency rating. Q. A HOW WLL THE PROPOSED FACLTES MPROVE SERVCE TO AREA CUSTOMERS? The reduction of loading on the area kv transmission system will help assure continued electrical service to the area customers by lowering the oad on all the kv transmission facilities to less than 100% of capacity under norma1 and contingency conditions The replacement of the old Exposition Park and Spalding Substations with their very old equipment with new equipment in the Johnson Substation will reduce the probability of equipment failure. The Johnson Substation is designed to be expanded to serve additional distribution load while the existing Exposition Park and Spalding Substations are not. 1 0 Q. 1 A. HAS OG&E CONSDERED ALTERNATVES TO THE PROPOSED CONSTRUCTON? Yes, but OG&E sees no reasonable alternative that resolves the overloading condition on the existing Massard 11 / kv transformer sewing Ft. Smith,

9 f Arkansas. Mr. Thornhill addresses the possibility of utilizing an alternate route for the construction of the facilities, but OG&E has identified no alternative to the actual need for construction of the facilities. Q. 10 f A. CAN YOU EXPLAN THESE ALTERNATVES AND WHY THEY WERE NOT SELECTED? Adding more kv transmission facilities and 11- kv step-down transformers can temporarily mitigate the loading problems on the aging kv transmission system. The estimated long term costs would be far higher than converting the existing oad on the kv transmission system to 11 kv. The construction of a new 11 kv transmission line would result in higher costs due to: More new transmission line required to be built while. miles of the existing. mile kv line to be converted is already constructed to 11 kv standards. This is shown on Exhibit MH-G, Exhibit MH-C- and Exhibit MH-C-. More right-of-way land required for a new mile Massard - Johnson 11 kv transmission line. The only right-of-way required with the conversion is expanding the existing right-of-way on the present line operated as kv and 0. miles of new 11 kv right-of-way. The expected cost for a new 11 kv transmission line from Massard substation to the new Johnson Substation will be approximately $,00,000 more that the proposed conversion.

10 1 Q. A. HOW WLL THE TRANSMSSON LNE ACCESS THE JOHNSON SU BSTATO N STE? As shown on Exhibit "MH-A" the 11-kV transmission line is located in front of the Johnson Substation site. Two dead-end structures will be installed in the existing transmission line to turn the line toward the new substation. Q. a A. HAS THE SUBSTATON SlTE BEEN ACQURED? The site was acquired in year 1 and OG&E has fee simple title to this property Q. 1 A WHAT S THE ESTMATED COST OF THE PROPOSED PROJECT? Estimated cost of the project is broken down as follows: Transmission Right of Way $1,,1 Transmission line $,10,1 Substation Construction and Upgrade $,1, System Protection & Control $,,0 Distribution - 1. kv $1,0, TOTAL $!l&b&m 1 0 Q. 1 A. HOW WLL OG&E FNANCE THE PROJECT? OG&E will finance the construction of these facilities with funds from various sources, including retained earnings, debt, and capital securities. No other alternate financing methods are being considered at this time.

11 1 Q. A. O 11 BASED UPON YOUR EXPERENCE AND KNOWLEDGE OF OG&E S LOADS AND FACLTES N THE AREA UNDER CONSDERATON, DO YOU HAVE AN OPNON AS TO WHETHER THE PROPOSED CONSTRUCTON S N THE PUBLC NTEREST AND, F SO, WHAT S THAT OPNON? Yes. The proposed project serves the public interest. The project is the most logical and cost effective method to provide continued reliable service to OG&E customers in the Ft. Smith, Arkansas area. Customers will benefit from the assured reliability of the operation of the area transmission system. The public interest is also served by customers receiving the benefit of the ability of the new substation to expand in the future with the increased electrical needs of the area customers. 1 1 Q. 1 A. DOES THS CONCLUDE YOUR TESTMONY? Yes, it does. O

12 ATTESTATON /s/mark Hadton do hereby swear and afu-m that the foregoing is my testimony in this docket. 10 Date 11

13 t 1 1 i i P E x r' ul OG&E Exhibit MH-A

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