103 Pa.P.U.C. 554, 2008 WL (Pa.P.U.C.) Re Trans-Allegheny Interstate Line Company

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1 103 Pa.P.U.C. 554, 2008 WL (Pa.P.U.C.) Application et al. Pennylvania Public Utility Commiion November 13, 2008; entered December 12, 2008 ORDER granting a certificate of public convenience for the contruction of a 1.2-mile portion of a high-voltage electric tranmiion line. Authorization alo i given for ancillary facilitie, including a new ubtation. The tranmiion line and ubtation together are known a the Pennylvania 502 Junction Segment and are but one part of a much larger multitate venture, the Tran-Allegheny Intertate Line (TrAIL). The TrAIL project a propoed would be a 500-kilovolt (kv) line and would be routed through Pennylvania, Wet Virginia, and Virginia. The Pennylvania portion of the TrAIL project i compoed of two ditinct ection, with the approved 502 Junction facilitie being one and with the o-called Prexy facilitie being the other. The Prexy project incorporate an additional ubtation, a 500-kV line to connect the Prexy and 502 Junction ubtation, and three 138-kV tranmiion line to connect to other exiting tranmiion line. Commiion decline to approve the Prexy portion at the preent time. Intead, it encourage a collaborative proce by which to conider alternative ite, route, and connection for the Prexy line, which would be ignificantly longer than the 502 Junction line. Two adminitrative law judge (ALJ), in a joint initial deciion, had recommended againt approval of any portion of the TrAIL project. According to the ALJ, (1) the need for TrAIL had not been etablihed, (2) the company charged with contructing the line had not proven it technical fitne, (3) there wa no howing that the routing and iting proce comported with commiion regulation, and (4) the project did not ufficently demontrate environmental mitigation effort. Commiion diagree with the ALJ with repect to the 502 Junction egment. Commiion tree the hort ditance involved with the 502 line. Stating that alternative routing i often not poible for uch a brief egment, the commiion ay that it aw no violation of it iting regulation. Additionally, the commiion determine that there would be few environmental impact to mitigate becaue of the mall ize of the project. Neverthele, it find that the line would affirmatively contribute to greater ytem reliability in an area that ha been identified by federal agencie a chronically uffering from tranmiion congetion. Conequently, the commiion hold that the need for the facilitie ha been hown, and it allow that part of the TrAIL project to go forward. Given that the Prexy facilitie do involve greater ditance, however, the commiion defer a final deciion on that propoal. Oberving that the Prexy project doe raie iue of iting, environmental impact, and cot allocation, the commiion urge intereted partie to meet and develop poible alternative a to the remainder of the TrAIL initiative. 1. EVIDENCE 1 [PA.] Preumption and burden of proof - A reting with the proponent of a particular rule or action - Certificate proceeding - Applicant a bearing burden of proof - Preponderance of the evidence tandard. 2. CERTIFICATES 68 [PA.] Procedure - Evidence - Burden of proof - A reting with the applicant - Preponderance of the evidence tandard Thomon Reuter. No claim to original U.S. Government Work. 1

2 3. PROCEDURE 1 [PA.] Dipoal of iue - Settlement - Commiion policy of encouraging - Adoption of partial ettlement - Reaonablene of term agreed upon - Stay or deferral of iue not agreed upon - Voluntary collaborative through which to addre - Electric tranmiion line proceeding. 4. PROCEDURE 2 [PA.] Stay or deferral - Of iue not agreed upon in partial ettlement - Endorement of term agreed upon in partial ettlement - Voluntary collaborative through which to addre nonettled matter - Electric tranmiion line proceeding. 5. ELECTRICITY [PA.] Tranmiion line project propoal - Two-part venture - Partial ettlement a to firt egment - Voluntary collaborative proce for addreing econd egment. 6. CERTIFICATES 8 [PA.] Factor affecting grant or denial - Public need for propoed ervice or facilitie - Electric tranmiion line proceeding - Authorization for the 502 Junction egment of the Tran-Allegheny Intertate Line. 7. CERTIFICATES 7 [PA.] Factor affecting grant or denial - Ability and fitne of applicant - Technical upport from affiliate a a conideration - Electric tranmiion line proceeding - Authorization for the 502 Junction egment of the Tran-Allegheny Intertate Line Thomon Reuter. No claim to original U.S. Government Work. 2

3 8. CERTIFICATES 02 [PA.] Electric - Tranmiion line propoal - Contruction authorization - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line - Factor conidered - Regional reliability need - Technical fitne of applicant - Condition accepted by applicant. 9. CERTIFICATES 3 [PA.] Retriction and condition - A to contruction of a high-voltage tranmiion line - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line - Neceity of applicant reviing ervice agreement with affiliate - Commiion approval of other affiliate contract. 10. ELECTRICITY [PA.] Authorization for tranmiion line - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line - Factor affecting approval - Regional reliability need - Technical fitne of applicant - Applicant agreement to amend ervice arrangement with affiliate. 11. INTERCORPORATE RELATIONS 5 [PA.] Interaffiliate contract - For the proviion of upport ervice - Neceity of amendment thereto - A a condition for receipt of a contruction certificate - For a high-voltage tranmiion line - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line - Neceity of commiion approval of other affiliate contract. 12. ELECTRICITY.1 [PA.] Juridiction and power - Intertate connection - Tranmiion line - Sytem reliability tandard a et by federal agencie and the North American Electric Reliability Corporation - Regional adminitration via regional tranmiion organization (RTO) - RTO identification of congetion point Thomon Reuter. No claim to original U.S. Government Work. 3

4 13. ELECTRICITY [PA.] Authorization for tranmiion line - Factor conidered - Sytem reliability need - Standard for a et by federal agencie and the North American Electric Reliability Corporation - Regional adminitration via regional tranmiion organization (RTO) - RTO identification of congetion point - New tranmiion a relief meaure. 14. SERVICE 86 [PA.] Electric connection and facilitie - Tranmiion line - Factor affecting authorization for new line - Sytem reliability need - Standard for a et by federal agencie and the North American Electric Reliability Corporation - Regional adminitration via regional tranmiion organization (RTO) - RTO identification of congetion point - New tranmiion a relief meaure. 15. ELECTRICITY [PA.] Authorization for tranmiion line - Appropriate cope of analyi - Federal veru tate policy - Reliability veru economic - Need for new infratructure veru alternative for reducing demand - Potential for energy efficiency improvement and demand-ide management - Emiion regulation. 16. SERVICE 86 [PA.] Electric connection and facilitie - Propoal for new tranmiion line - Appropriate cope of analyi - Federal veru tate policy - Reliability veru economic - Need for new infratructure veru alternative for reducing demand - Potential for energy efficiency improvement and demand-ide management - Emiion regulation. 17. CERTIFICATES 02 [PA.] Electric - Propoal for new tranmiion line - Appropriate cope of analyi - Federal veru tate policy - Reliability veru economic - Need for new infratructure veru alternative for reducing demand - Potential for energy efficiency improvement and demand-ide management - Emiion regulation Thomon Reuter. No claim to original U.S. Government Work. 4

5 18. CERTIFICATES 6 [PA.] Factor affecting grant or denial - A to propoal for new electric tranmiion line - Appropriate cope of analyi - Federal veru tate policy - Reliability veru economic - Need for new infratructure veru alternative for reducing demand - Potential for energy efficiency improvement and demand-ide management - Emiion regulation. 19. CERTIFICATES 8 [PA.] Factor affecting grant or denial - Public need for propoed ervice or facilitie - Electric tranmiion line proceeding - Authorization for the 502 Junction egment of the Tran-Allegheny Intertate Line - Evidence of need - Reult of federally conducted ytem tre model - Ongoing regional congetion - Requirement for enhanced regional reliability. 20. CERTIFICATES 02 [PA.] Electric - Tranmiion line propoal - Contruction authorization - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line - Factor conidered - Need for project - Evidence of need - Reult of federally conducted ytem tre model - Ongoing regional congetion - Requirement for enhanced regional reliability. 21. ELECTRICITY [PA.] Authorization for tranmiion line - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line - Factor affecting approval - Need for project - Evidence of need - Reult of federally conducted ytem tre model - Ongoing regional congetion - Requirement for enhanced regional reliability. 22. SERVICE 86 [PA.] Electric connection and facilitie - Authorization for tranmiion line - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line - Factor affecting approval - Need for project - Evidence of need - Reult of federally conducted ytem tre model - Ongoing regional congetion - Requirement for enhanced regional reliability Thomon Reuter. No claim to original U.S. Government Work. 5

6 23. CERTIFICATES 02 [PA.] Electric - Tranmiion line propoal - Contruction authorization - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line - Conideration - Routing and iting proce - A driven by routing requirement in adjacent juridiction - Reaonablene - Short length of Pennylvania egment a a factor. 24. ELECTRICITY [PA.] Authorization for tranmiion line - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line - Conideration - Routing and iting proce - A driven by routing requirement in adjacent juridiction - Reaonablene - Short length of Pennylvania egment a a factor. 25. SERVICE 86 [PA.] Electric connection and facilitie - Authorization for tranmiion line - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line - Conideration - Routing and iting proce - A driven by routing requirement in adjacent juridiction - Reaonablene - Short length of Pennylvania egment a a factor. 26. CERTIFICATES 3 [PA.] Retriction and condition - A to contruction of a high-voltage tranmiion line - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line - Neceity of plan for identifying and avoiding impact on groundwater ource - Neceity of ecuring all requiite environmental permit from local governmental agencie. 27. CERTIFICATES 02 [PA.] Electric - Tranmiion line propoal - Contruction authorization - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line - Conideration - Environmental impact - Effect of lack of formal environmental 2011 Thomon Reuter. No claim to original U.S. Government Work. 6

7 mitigation plan - A nonfatal given line hort length - But need for pecific plan for identifying and avoiding impact on groundwater ource. 28. ELECTRICITY [PA.] Authorization for tranmiion line - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line - Conideration - Environmental impact - Effect of lack of formal environmental mitigation plan - A nonfatal given line hort length - But need for pecific plan for identifying and avoiding impact on groundwater ource. 29. SERVICE 86 [PA.] Electric connection and facilitie - Authorization for tranmiion line - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line - Conideration - Environmental impact - Effect of lack of formal environmental mitigation plan - A nonfatal given line hort length - But need for pecific plan for identifying and avoiding impact on groundwater ource. 30. ELECTRICITY [PA.] Tranmiion line - Dangerou proximity - Health and afety concern related to electromagnetic field (EMF) - EMF a not a bar to contruction of a hort high-voltage line - Provided it complie with tandard et in the National Electric Safety Code. 31. ELECTRICITY [PA.] Authorization for tranmiion line - Factor conidered - Health and afety concern related to electromagnetic field (EMF) - EMF a not a bar to contruction of a hort high-voltage line - Provided it complie with tandard et in the National Electric Safety Code. 32. CERTIFICATES Thomon Reuter. No claim to original U.S. Government Work. 7

8 [PA.] Electric - Tranmiion line propoal - Factor conidered - Health and afety concern related to electromagnetic field (EMF) - EMF a not a bar to contruction of a hort high-voltage line - Provided it complie with tandard et in the National Electric Safety Code. 33. SERVICE 86 [PA.] Electric connection and facilitie - Authorization for tranmiion line - Factor conidered - Health and afety concern related to electromagnetic field (EMF) - EMF a not a bar to contruction of a hort high-voltage line - Provided it complie with tandard et in the National Electric Safety Code. 34. CERTIFICATES 3 [PA.] Retriction and condition - A to contruction of a high-voltage tranmiion line - Limited ue of herbicide and peticide - Avoidance of aerial praying - Adherence to particular buffer zone - Ue of only federally approved herbicide. 35. CERTIFICATES 02 [PA.] Electric - Tranmiion line propoal - Contruction authorization - Attachment of condition - Limited ue of herbicide and peticide - Avoidance of aerial praying - Adherence to particular buffer zone - Ue of only federally approved herbicide. 36. ELECTRICITY [PA.] Authorization for tranmiion line - Attachment of condition - Limited ue of herbicide and peticide - Avoidance of aerial praying - Adherence to particular buffer zone - Ue of only federally approved herbicide. 37. SERVICE Thomon Reuter. No claim to original U.S. Government Work. 8

9 [PA.] Electric connection and facilitie - Authorization for tranmiion line - Attachment of condition - Limited ue of herbicide and peticide - Avoidance of aerial praying - Adherence to particular buffer zone - Ue of only federally approved herbicide. 38. CERTIFICATES 3 [PA.] Retriction and condition - A to contruction of a high-voltage tranmiion line - Minimization of impact on nearby ga well and line - Development of guideline by mitigation expert. 39. CERTIFICATES 02 [PA.] Electric - Tranmiion line propoal - Contruction authorization - Attachment of condition - Minimization of impact on nearby ga well and line - Development of guideline by mitigation expert. 40. ELECTRICITY [PA.] Authorization for tranmiion line - Attachment of condition - Minimization of impact on nearby ga well and line - Development of guideline by mitigation expert. 41. SERVICE 86 [PA.] Electric connection and facilitie - Authorization for tranmiion line - Attachment of condition - Minimization of impact on nearby ga well and line - Development of guideline by mitigation expert. 42. GAS.1 [PA.] Safety matter - A potentially affected by contruction of electric tranmiion line - Attachment of condition thereto - Minimization of impact on nearby ga well and line - Development of guideline by mitigation expert Thomon Reuter. No claim to original U.S. Government Work. 9

10 43. EMINENT DOMAIN [PA.] Neceity a a factor - A to contruction of electric tranmiion line - Demontration of need for the project - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line - Reaonablene of routing and iting - Propriety of aociated eminent domain authority. 44. EASEMENTS [PA.] Eminent domain and eaement requet - Neceity a a factor - A to contruction of electric tranmiion line - Demontration of need for the project - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line - Reaonablene of routing and iting - Propriety of aociated eminent domain authority. 45. ELECTRICITY [PA.] Authorization for tranmiion line - Eminent domain and eaement requet thereto - Factor conidered - Neceity of project - Demontration of need for the project - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line - Reaonablene of routing and iting - Propriety of aociated eminent domain authority. 46. SERVICE 86 [PA.] Electric connection and facilitie - Authorization for tranmiion line - Eminent domain and eaement requet thereto - Factor conidered - Neceity of project - Demontration of need for the project - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line - Reaonablene of routing and iting - Propriety of aociated eminent domain authority. 47. CERTIFICATES 02 [PA.] Electric - Tranmiion line propoal - Contruction authorization - Eminent domain and eaement requet thereto - Factor conidered - Neceity of project - Demontration of need for the project - A limited to the 502 Junction egment of 2011 Thomon Reuter. No claim to original U.S. Government Work. 10

11 the Tran-Allegheny Intertate Line - Reaonablene of routing and iting - Propriety of aociated eminent domain authority. 48. CERTIFICATES 3 [PA.] Retriction and condition - A to contruction of a high-voltage tranmiion line - A to exercie of aociated right of eminent domain - Standard for the purchae and valuation of nearby reidential real property. 49. ZONING [PA.] Requet for exemption - A to contruction of electric tranmiion line - Conideration - Neceity and cope of project - Demontration of need for the project - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line - Short ditance of line a a factor - Granting of exemption. 50. ORDINANCES [PA.] Requet for exemption from zoning regulation - A to contruction of electric tranmiion line - Conideration - Neceity and cope of project - Demontration of need for the project - A limited to the 502 Junction egment of the Tran- Allegheny Intertate Line - Short ditance of line a a factor - Granting of exemption. 51. CERTIFICATES 6 [PA.] Local governmental action - Zoning ordinance - Requet for exemption from - A to contruction of electric tranmiion line - Conideration - Neceity and cope of project - Demontration of need for the project - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line - Short ditance of line a a factor - Granting of exemption. 52. CERTIFICATES 02 [PA.] Electric - Tranmiion line propoal - Contruction authorization - Requet for exemption from zoning ordinance 2011 Thomon Reuter. No claim to original U.S. Government Work. 11

12 thereto - Conideration - Neceity and cope of project - Demontration of need for the project - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line - Short ditance of line a a factor - Granting of exemption. 53. ELECTRICITY [PA.] Authorization for tranmiion line - Requet for exemption from zoning ordinance thereto - Conideration - Neceity and cope of project - Demontration of need for the project - A limited to the 502 Junction egment of the Tran- Allegheny Intertate Line - Short ditance of line a a factor - Granting of exemption. 54. SERVICE 86 [PA.] Electric connection and facilitie - Authorization for tranmiion line - Requet for exemption from zoning ordinance thereto - Conideration - Neceity and cope of project - Demontration of need for the project - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line - Short ditance of line a a factor - Granting of exemption. 55. CONSOLIDATION, MERGER, AND SALE 3 [PA.] Factor conidered - Intercorporate relation - Propoed interaffiliate ale of land and right-of-way - In conjunction with the Prexy tranmiion line project propoal - Deferral of review and deciion - Given the tay of the Prexy proceeding. 56. CONTRACTS 3 [PA.] Neceity of commiion authorization - Over interaffiliate contract for capital contribution arrangement - Approval of a capital contribution agreement a to a high-voltage tranmiion line project - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line. 57. INTERCORPORATE RELATIONS 2 [PA.] Commiion juridiction - Over affiliate contract - Neceity of commiion authorization of capital contribution 2011 Thomon Reuter. No claim to original U.S. Government Work. 12

13 arrangement - Approval of a capital contribution agreement a to a high-voltage tranmiion line project - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line. 58. INTERCORPORATE RELATIONS 8.3 [PA.] Intercorporate arrangement - Contribution to affiliate - Neceity of commiion authorization - Approval of a capital contribution agreement a to a high-voltage tranmiion line project - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line. 59. CONSTRUCTION AND EQUIPMENT [PA.] Project cot - Financing arrangement - Via contribution to affiliate - Neceity of commiion authorization - Approval of a capital contribution agreement a to a high-voltage tranmiion line project - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line. 60. INTERCORPORATE RELATIONS 2 [PA.] Commiion juridiction - Over affiliate agreement - Neceity of commiion authorization of contract for accounting or financial ervice - Conolidated tax return arrangement - Approval of with repect to a high-voltage tranmiion line project - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line. 61. INTERCORPORATE RELATIONS 4.2 [PA.] Intercorporate arrangement - For accounting or financial ervice - Neceity of commiion authorization - Approval of conolidated tax return arrangement - A to a high-voltage tranmiion line project - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line. 62. CONTRACTS Thomon Reuter. No claim to original U.S. Government Work. 13

14 [PA.] Neceity of commiion authorization - Over interaffiliate contract for accounting or financial ervice - Approval of conolidated tax return arrangement - A to a high-voltage tranmiion line project - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line. 63. EXPENSES 17 [PA.] Income taxe - For underlying companie - Interaffiliate contract for - Neceity of commiion authorization - Approval of conolidated tax return arrangement - A to a high-voltage tranmiion line project - A limited to the 502 Junction egment of the Tran-Allegheny Intertate Line. 64. CERTIFICATES 02 [PA.] Electric - Tranmiion line propoal - For the Tran-Allegheny Intertate Line (TrAIL) - Factor militating againt contruction authorization - Failure to prove need for project - Any benefit a going to other juridiction - Inequitable cot allocation - Diincentive to contruction of new generation capacity cloer to actual demand center - Propriety of rejecting outright the entire TrAIL propoal - Dienting opinion. 65. ELECTRICITY [PA.] Tranmiion line propoal - For the Tran-Allegheny Intertate Line (TrAIL) - Factor militating againt contruction authorization - Failure to prove need for project - Any benefit a going to other juridiction - Inequitable cot allocation - Diincentive to contruction of new generation capacity cloer to actual demand center - Propriety of rejecting outright the entire TrAIL propoal - Dienting opinion. 66. SERVICE 86 [PA.] Electric connection and facilitie - Tranmiion line propoal - For the Tran-Allegheny Intertate Line (TrAIL) - Factor militating againt contruction authorization - Failure to prove need for project - Any benefit a going to other juridiction - Inequitable cot allocation - Diincentive to contruction of new generation capacity cloer to actual demand center - Propriety of rejecting outright the entire TrAIL propoal - Dienting opinion Thomon Reuter. No claim to original U.S. Government Work. 14

15 67. CERTIFICATES 02 [PA.] Electric - Tranmiion line propoal - For the Tran-Allegheny Intertate Line (TrAIL) - Prexy portion of TrAIL - Impropriety of taying conideration of - Propriety of rejecting the Prexy project outright - Factor - Seriou concern a to iting - Failure of applicant to adequately tudy alternative route - Partially dienting opinion. 68. ELECTRICITY [PA.] Tranmiion line propoal - For the Tran-Allegheny Intertate Line (TrAIL) - Prexy portion of TrAIL - Impropriety of taying conideration of - Propriety of rejecting the Prexy project outright - Factor - Seriou concern a to iting - Failure of applicant to adequately tudy alternative route - Partially dienting opinion. 69. SERVICE 86 [PA.] Electric connection and facilitie - Tranmiion line propoal - For the Tran-Allegheny Intertate Line (TrAIL) - Prexy portion of TrAIL - Impropriety of taying conideration of - Propriety of rejecting the Prexy project outright - Factor - Seriou concern a to iting - Failure of applicant to adequately tudy alternative route - Partially dienting opinion. *1 Jame H. Cawley, Chairman, Statement attached Tyrone J. Chrity, Vice Chairman, Dienting Statement attached Robert F. Powelon, Statement attached Kim Pizzingrilli Wayne E. Gardner, Concurring in part, Dienting in part, and Statement attached BY THE COMMISSION: 1 OPINION AND ORDER Before the Pennylvania Public Utility Commiion (Commiion) for conideration and dipoition are the following: (a) The Recommended Deciion of Adminitrative Law Judge (ALJ) Mark A. Hoyer and Michael A. Nemec iued Augut 21, 2008; (b) The Exception filed by Tran-Allegheny Intertate Line Company (TrAILCo) on September 10, 2008, to the Recommended Deciion (R.D.) of ALJ Mark A. Hoyer and Michael A. Nemec; (c) The Motion for Partial Stay of Proceeding and Requet for Expedited Conideration (Motion for Partial Stay) filed by TrAILCo on September 10, 2008; and (d) The Agreement among TrAILCo, Wet Penn Power Company, and the Greene County Board of Commiioner (Partial Settlement Agreement), which TrAILCo filed with thi Commiion on September 25, Thomon Reuter. No claim to original U.S. Government Work. 15

16 1 I. Background TrAILCo i a direct ubidiary of Allegheny Energy Tranmiion, LLC (AET), which i, in turn, a direct ubidiary of Allegheny Energy, Inc. (Allegheny). Application at 2. Allegheny ha deignated TrAILCo a the entity in the Allegheny holding company ytem reponible for contructing certain tranmiion facilitie. According to TrAILCo, the Pennylvania portion of thi project contitute two eparate and ditinct TrAILCo project, both of which are encompaed under the overall name of Tran-Allegheny Intertate Line ( TrAIL ). TrAILCo Exc. at 1. The firt project (the Pennylvania 502 Junction Facilitie ) include[] a new ubtation and the Pennylvania 502 Junction Segment, a 500-kV line extending from the ubtation acro 1.2 mile of Greene County to the Wet Virginia Border. Thi line then continue through Wet Virginia and into Virginia (collectively, the 502 Junction Segment ). Id. The econd project i the Prexy Facilitie, which include a new ubtation (the Prexy Subtation), a 500-kV line to connect the Prexy Subtation and the 502 Junction Subtation, and three new 138-kV line that would connect the Prexy Subtation to the exiting tranmiion line of Allegheny Power. Id. II. Hitory of the Proceeding The hitory of thi proceeding i decribed in detail in the Recommended Deciion. A uch, thi ection will briefly ummarize the procedural hitory of thi cae. On April 13, 2007, TrAILCo filed five application with the Commiion: (a) an Application for a Certificate of Public Convenience to offer, render, furnih or upply electrical tranmiion ervice in the Commonwealth of Pennylvania; (b) an Application for authorization to locate, contruct, operate and maintain certain high-voltage (HV) electric ubtation facilitie; (c) an Application for authority to exercie the power of eminent domain for the contruction and intallation of aerial electrical tranmiion facilitie along the propoed tranmiion line route in Pennylvania; *2 (d) an Application for approval of an exemption from municipal zoning regulation with repect to the contruction of building; and (e) an Application for approval of certain related affiliated interet agreement. R.D. at 1. A Prehearing Order dated July 26, 2007, conolidated thee five Application for purpoe of dicovery, litigation and deciion. R.D. at 3. During Augut and September 2007, twelve public input eion were held in Wahington and Greene Countie and ite viit were conducted. Evidentiary hearing were held in March and April Brief and Reply Brief were filed, and the record cloed on May 30, R.D. at 5. In the Recommended Deciion iued Augut 21, 2008, the ALJ recommended that all five Application be denied. Specifically, the ALJ recommended that: (a) TrAILCo application for a Certificate of Public Convenience be denied becaue TrAILCo failed to prove a need for the facilitie and failed to prove that TrAILCo i technically fit, R.D. at 78; (b) TrAILCo application for authorization to contruct and operate the tranmiion line be denied, inter alia, becaue TrAILCo failed to prove that (i) there i a need for the project, R.D. at 118 and 149, (ii) the route evaluation and election proce complie with Commiion regulation, R.D. at 169, (iii) the project mitigate environmental impact, R.D. at 190, and (iv) the project doe not create an unreaonable rik of danger to the health and afety of the public, R.D. at ; 2011 Thomon Reuter. No claim to original U.S. Government Work. 16

17 (c) TrAILCo application for authorization to exercie the power of eminent domain be denied at thi time, in part, becaue TrAILCo doe not yet have final propoed route for any of the propoed line, R.D. at 206; (d) TrAILCo application for exemption from local zoning regulation be denied, in part, becaue TrAILCo failed to introduce evidence concerning the propoed ite of the building in quetion or the local zoning regulation that impact thee building, R.D. at ; and (e) TrAILCo application for approval of affiliated interet agreement be denied becaue TrAILCo i not a public utility, R.D. at 217. On September 10, 2008, TrAILCo filed Exception to the Recommended Deciion. Alo on September 10, 2008, TrAILCo filed it Motion for Partial Stay, aking that the Commiion (1) expeditiouly review the Recommended Deciion to the extent that it pertain to the Pennylvania 502 Junction Facilitie and (2) defer it review of the Recommended Deciion to the extent that it pertain to the Prexy Facilitie. With repect to the Prexy Facilitie, the Motion for Partial Stay requeted that thi Commiion intitute a collaborative to explore whether there are poible new and creative alternative to that project. Id. at 7. On or about September 22, 2008, Replie to TrAILCo Exception were filed by: the Energy Conervation Council (ECC); the Office of Trial Staff (OTS); the Office of Conumer Advocate (OCA); Rep. H. William DeWeee, the Majority Leader of the Pennylvania Houe of Repreentative (Rep. DeWeee); Victoria M. Goroncy; Margaret M. Moran; George D. Goroncy; Joan A. Blank; Dan and Tina Martin; Faith Bjalobok, Ph.D.; Greg A. Bandel; Arthur A. Brogley; Michelle Minnick; Dave and Cheryl Piroch; Rich Layton; Debra K. Bandel; Jame R. Blockinger; France M. Cooley; Jack Minnick; Chritine A. Robker; Henrietta Goodwin; Laurie Nicholl; Mark J. O Donnell; Richard J. Blank; Suan Foter Blank; Rebecca E. Trigger; and Barbara J. Gall. The Greater Chamberburg Chamber of Commerce alo ubmitted a letter regarding thi cae. 1 *3 Anwer to the Motion for Partial Stay were filed on or about September 30, 2008 by ECC, OTS, OCA, and Rep. DeWeee. We note that everal of the individual named above alo commented on the Motion for Partial Stay in their Replie to Exception. On September 25, 2008, TrAILCo filed the Partial Settlement Agreement. By Secretarial Letter dated October 2, 2008, comment on the Partial Settlement Agreement were requeted by October 10, Comment were ubmitted by ECC, PTS, OCA, the Wet Penn Power Indutrial Intervenor (WPPII), Jame and Patricia Blockinger, Margaret Moran and Laurie Nicholl. On October 8, 2008, counel for TrAILCo filed an Order of the State Corporation Commiion of the Commonwealth of Virginia, which TrAILCo tated [F]ound that the propoed 500,000 volt electric tranmiion line from 502 Junction Subtation propoed by TrAILCo to be located in Greene County, Pennylvania to the exiting Loudoun Subtation owned by Dominion Virginia Power in Loudoun County, Virginia i needed in accordance with applicable Virginia tatute and authorized the contruction of the portion of the line propoed to be ited in the Commonwealth of Virginia. TrAILCo Correpondence dated October 8, 2008, at 1. TrAILCo aked the Commiion to take official or judicial notice of thi order, in accordance with 52 Pa. Code On October 20, 2008, TrAILCo filed correpondence concerning an October 16, 2008 ite viit to one of the propertie required for the Pennylvania 502 Junction Facilitie. TrAILCo tated that the property owner at that time advied TrAILCo that the propoed location for one of the tructure may not be on hi property. TrAILCo advied the Commiion that it i in the proce of verifying the owner of the property in quetion. If the property owner information i accurate, TrAILCo will initiate negotiation with the owner of the adjacent property, who were provided with notice of the application filed in thi proceeding in accordance with the Commiion rule and regulation. TrAILCo Correpondence dated October 20, 2008, at 2. On October 31, 2008, ECC reponded to the October 8 and October 20, 2008 correpondence of TrAILCo. ECC argued that thi Commiion hould give no weight to the deciion of the Virginia State Corporation Commiion becaue it i baed on different law and a different record developed by different partie, a compared to the preent proceeding. ECC argued that the record in thi matter cloed on May 30, 2008, and it hould not be reopened to admit a deciion that hould be given no 2011 Thomon Reuter. No claim to original U.S. Government Work. 17

18 weight in thi proceeding. ECC Correpondence dated October 31, 2008, at 1. In addition, ECC opined that TrAILCo apparent miidentification of the owner of a parcel needed for the Pennylvania 502 Junction Facilitie upport ECC contention that TrAILCo application hould be denied. ECC contended that TrAILCo did not apply to the Commiion for the power of eminent domain with repect to thi property. ECC alo expreed concern about the due proce right of thee property owner, claiming that they were led to believe that their property wa not ubject to eminent domain proceeding. ECC Correpondence dated October 31, 2008, at 2. *4 1 III. Dicuion [1, 2] A the proponent of a rule or order, TrAILCo bear the burden of proof puruant to Section 332(a) of the Public Utility Code (Code), 66 Pa. C.S. 332(a). It i axiomatic that [a] litigant burden of proof before adminitrative tribunal a well a before mot civil proceeding i atified by etablihing a preponderance of evidence which i ubtantial and legally credible. Samuel J. Lanberry, Inc. v. Pa. PUC, 578 A.2d 600, 602 (Pa. Cmwlth. 1990). A preponderance of the evidence i etablihed by preenting evidence that i more convincing, by even the mallet amount, than that preented by the other partie to the cae. Se-Ling Hoiery v. Marqulie, 364 Pa. 45, 70 A.2d 854 (1950). Additionally, thi Commiion deciion mut be upported by ubtantial evidence in the record. More i required than a mere trace of evidence or a upicion of the exitence of a fact ought to be etablihed. Norfolk & Wetern Ry. Co. v. Pa. PUC, 489 Pa. 109, 413 A.2d 1037 (1980). We note that any iue that we do not pecifically addre herein ha been duly conidered and will be denied without further dicuion. It i well ettled that we are not required to conider exprely or at length each contention or argument raied by the partie. Conolidated Rail Corporation v. Pa. PUC, 625 A.2d 741 (Pa. Cmwlth. 1993); alo ee, generally, Univerity of Pennylvania v. Pa. PUC, 485 A.2d 1217 (Pa. Cmwlth. 1984). A. Partial Settlement Agreement 1. Poition of the Partie TrAILCo and Greene County tate that they have modified their litigation poition conitent with the Partial Settlement Agreement. They now agree that a Commiion deciion conitent with that Agreement i the preferred outcome in thi proceeding. Cover Letter to Partial Settlement Agreement at 1. In the Partial Settlement Agreement, TrAILCo and Greene County agree that the Commiion hould approve the Pennylvania 502 Junction Facilitie without modification of the ubtation ite and tranmiion line route propoed by TrAILCo. They alo agree that thi Commiion hould tay it conideration of the Prexy Facilitie. They agree that TrAILCo hould be permitted to convene a collaborative Adviory Panel including all intereted active partie in the preent proceeding to conider alternative to the Prexy Facilitie a propoed by TrAILCo. Thi collaborative would commence upon filing of the Partial Settlement Agreement and would be completed within 180 day, unle the partie agree to an extenion. TrAILCo would have the final deciion regarding the nature and extent of any new alternative to the Prexy Facilitie. TrAILCo would then amend it Application with repect to the Prexy Facilitie and requet reumption of the review proce, ubject to the Commiion rule and regulation. Partial Settlement Agreement at 3-4. The Partial Settlement Agreement provide at Paragraph 1: Not later than 14 day after all of the Partie execute thi Agreement, Wet Penn or TrAILCo, a applicable, hall create, execute, and record uch quit claim or imilar document that convey any and all of their title to right-of-way or eaement aociated with the propoed Prexy Segment or the Prexy 138-kV Line on any property on the route of the propoed Prexy Segment or the Prexy 138-kV Line to each of the identifiable, current real property owner of uch land. The Partie acknowledge that the term of thi Agreement are exprely contingent upon Wet Penn or TrAILCo compliance with the proviion of thi paragraph. *5 All of TrAILCo obligation under the Partial Settlement Agreement, except thoe in Paragraph 1, are conditioned on the Commiion acceptance and approval of the Partial Settlement Agreement and the granting of TrAILCo Application 2011 Thomon Reuter. No claim to original U.S. Government Work. 18