LONNIE C. TURNER FAX NO. 479/ hkar~sas Valley Electric Cooperative Corporation Ozark, Arkansas Docket No y RE:

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LONNIE C, TUUN ER DENA L. njrrner LONNIE C. TURNER ATTORNEYS AT LAW 801 E. COMMERCIAL OZARK, ARKANSAS 72949 PHONE NO, 479/667-2155 FAX NO. 479/6674700 April 10,2014 Office Hours MOndry-Thufiday 8:oO a.m. - 4:30 pm. Cynithia Mayweather P.O. Box 400 1000 Center Street Little Rock, hrkmsa 72203-0400 RE: hkar~sas Valley Electric Cooperative Corporation Ozark, Arkansas Docket No. 14-63 - y Dear Ms. Mayweather, Enclosed you will find the original and one copy of: (1) Application for Certificate of Public Convenience and Necessity; (2) Direct Testimony of Shawn Wailing and (3) the Docket Cover Sheet, all for Assignment of Docket Number and Filing. Yoursve If there is anything more needed at this time, do advise. 7 truly, ONNIE C. TURNER LCTlses Enclosures Cc: William Peters

~ ~ Docket Summary Cover Sheet (For all dockets other than Rate Cases, ''TD", "C" and "TF" Dockets Must be filed with each new docket filed at the Commission APSC FILED Time: 4/16/2014 9:17:03 AM: Recvd 4/16/2014 9:16:56 AM: Docket 14-031-U-Doc. 1 IN THE MATTER OF THE APPLICATION OF ARKANSAS VALLEY ELECTKIC COOPERAIIVE CORPORATION FOR CEKIIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR THE CONS'lRUCTION, OPElUTION AND MAINTENANCE OF AN ELECTRIC 'lxansmission LINE AND SUBSTATION 14-031- q Docwr DESIGNATOR: u 0 A R p RELATED DOCKETS: 3 I t Nature of Action: (See second sheet) Arkansas Vdiey Elcctric Cooperative Corporation Lonnie C. Turner 801 East Commercial Street Omk, AR 72949 479-667-2155 4 7 9-6 6 7-4 7 0 0 I I Pursuant to Rule 2.03(b) of the Commission's Rules of Practice and Procedure, please provide name, address, phone, fax, e-rnail of at least one, but not more than two names to appear on the Service List for this docket Lonnie C. Turner William G. "Rill" Peters 801 East Commercial Street Arkansas Valley Electric Cooperative Corporation Ozark, AR 72949 181 f West Commercial Street 479-667-2 155 Ozark, AR 72949 479-667-4700 479-867-2176 bill peters@vecc.com Write a briei'smtement, limited to the space provided herein describing the case that you are filing. Please provide enough information to assure that thc nature of your docket is clear. To construct 1.6 mile, 161 KV Transmission Line to Substation Form completed by: Lonnie C. Turner Date: 4110M014 Representing: Arkansas Vallev Electric CooDerative Corporation

NATURE OF ACTION: Please choose at least one, but no more than three docket types APSC FILED Time: 4/16/2014 9:17:03 AM: Recvd 4/16/2014 9:16:56 AM: Docket 14-031-U-Doc. 1 Extended Area Service

STATE OF ARKANSAS ARKANSAS PUBLIC SERVICE COMMtSSlON IN THE MATTER Of THE APPLICATION OF ARKANSAS VALLEY ELECTRIC COOP E RATIVE CORPORATION FOR CERTIFICATE OF PUBILC CONVENIENCE AND NECESStTY FOR THE CONSTRUCTIO, OPERATION AND MAINTENANC OF AN ELECTRIC TRANSMISSION LINE AND SUBSTATION DOCKET NO. (4-631- APPLICATION FOR CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY Your applicant, Arkansas Valley Electric cooperative Corporation, a corporation, (AVECC) herby applies for a certificate of convenience and necessity for construction, operation and maintenance of approximately 1.6 miles of transmission line and a substation in and through an area previously allotted it in Sebastian County, Arkansas. A copy of the vicinity map (Exhibit A, ) and a pole structure example (Exhibit B ) are attached hereto. 1. The applicant is a non-profit cooperative corporation existing under and by virtue of Act 342 of the Acts of the General Assembly of the State of Arkansas for the year 1937, with its principal office at Ozark, Franklin County, Arkansas, and with other offices at Waldron, Scott County,

Arkansas, Van Buren, Crawford County, Arkansas, and Pocola, Oklahoma. 2. The applicant presently has in operation in excess of 8,175 miles of transmission and distribution lines and facilities serving in excess of 57,000 Members within the areas previously allotted to it. 3. That said transmission line to be constructed for 161 kv operation. 4. This substation is being built to serve the land that once was part of the Military Installation of Fort Chaffee. The US Government has released over 7,000 acres of this base to the Fort Chaffee Redevelopment Authority with the task of developing this land to reach,., its full potential. AVECC serves a portion of this land. For all intents and purposes this is new territory with no infrastructure that is experiencing massive growth. There in not sufficient capacity in the surrounding substations to meet the projected growth in this area. The new substation will meet the projected demands. 5. The power to supply the substation will connect to AVECC s existing 161 kv transmission line that serves the Rye Hill substation by tapping into its transmission line.

6. The applicant has engineering plans and specifications for the proposed transmission line and substation which is in accordance with good engineering practices and in compliance with the National Electric Safety Code. 7. The estimated cost of the construction of the above facilities is $2,000,000. 8. The cost of the construction of the proposed transmission line and substation will be financed with loan funds from the United States of America acting through the Rural Utilities Service, and the National Rural Uti I it i es Cooperative F i na n ce Corporations. 9. The proposed construction as above set out will furnish adequate service of the applicant, and without said facilities, this area will in the very near future, be without adequate electric service. 10.The line will originate at a new switch pole to be installed on AVECC s transmission line that feeds AVECC s Rye Hill Substation. This new switch pole is about 3/4 of a mile, by the transmission line, from the Rye Hill Substation. This is about 2.65 mites South East of the Interstate 540 and US Highway 71 intersection south of Fort Smith Arkansas.

11. AVECC is working with the appropriate departments for the City of Fort Smith to obtain the necessary easements for this project. A copy of this application will be provided to their City Attorney, who was provided notice of its intended filing per Rule 6.03. 12.There is presently on file with the Commission the Articles of Incorporation of the applicant. WHEREFORE, the applicant prays that it be granted a Certificate of Public Convenience and Necessity of the construction, operation and maintenance of the proposed transmission line and substation. Respectfully Submitted, Arkansas Valley Electric Cooperative Corporation, a Corporapym 801 E. Commercial Ozark, AR 72949 479-667-2155 Ark. Bar No. 71074 Attorney for Applicant

I I Tope North AmericaTM 10 APSC FILED Time: 4/16/2014 9:17:03 AM: Recvd 4/16/2014 9:16:56 AM: Docket 14-031-U-Doc. 1

.- - APSC FILED Time: 4/16/2014 9:17:03 AM: Recvd 4/16/2014 9:16:56 AM: Docket 14-031-U-Doc. 1 P E 2 r--- I h I! U, Q

ARKANSAS VALLEY ELECTRIC COOPERATIVE OZARK, ARKANSAS Direct Testimony of Shawn Walling Arkansas Valley Electric Cooperative Ozark, Arkansas Direct Testimony of Shawn Walling Docket No. tq- Os1- d Page 1 of 6 1 Q. 2 A. 3 4 Q. 5 6 A. 7 8 9 10 Q. 11 A. 12 13 14 Q. 15 A. 16 Q. 17 18 A. 19 Please state your name and business address My name is Shawn Walling, My business address is 1811 West Commercial St, Ozark, AR 72949. Mr. Walling, what is your present position with Arkansas Valley Electric Cooperative Corporation (AVECC)? My title is Manager of Engineering. 1 am responsible for all areas of the Engineering Department including, but not limited to, land acquisition, transmission line design, distribution facilities design, substation design, and operations of transmission, distribution, and substation equipment. What is your educational background? 1 received a Bachelor of Science and Master of Science in Chemical Engineering from the University of Arkansas, Fayetteville. 1 also hold a Master of Business Administration from Oklahoma Wesleyan University in Bartlesville, Oklahoma. Are you a registered Professional Engineer? Yes, 1 am a registered Professional Engineer in Arkansas as well as Oklahoma. What is your experience in the electrical field seeing that your degrees are in Chemical Engineering? My first job out of college was with Arkansas Electric Cooperatives Corporation (AECC) in Little Rock. There 1 was responsible for the control systems on all of AECC s wholly

Direct Testimony of Shawn Walling Docket No. p4-03[-l4 Page 2 of 6 20 21 22 23 24 25 26 27 23 29 30 31 32 33 34 35 36 37 38 39 40 41 42 owned power plants. While working there as the Control System Engineer, I was pulled over into the substation controls and communications projects that were occurring at the power plant switch yards. This along with the power plant control systems gave me an introduction and some hands on experience with the operation of substation equipment as well as generators. I spent three and a half years with AECC. After leaving AECC, 1 spent five and a half years with North Arkansas Electric Cooperative (NAEC) as a System Engineer. My experience as a Control System Engineer was put to use at NAEC where I was responsible for the Automatic Meter Reading (AMR) system as well as the Load Control Equipment. My responsibilities there grew into substation communications and maintenance. While there I wrote switching orders as well as operated substation and distribution equipment. I left NAEC and worked for two and a half years with Braden Manufacturing and their Selective Catalytic Reduction (SCR) engineer. There I was involved in every step of the new product line of SCRs for Gas Turbine applications. I designed equipment, approved components, witnessed Factory Acceptance Testing, over saw field installation, and preformed commissioning and tuning of the final install. 1 left Braden and spent a year with East Central Oklahoma Electric Cooperative (ECOEC) in Okmulgee, OK. There I was the Manager of Engineering and was responsible for Distribution System Design and inspection as well as substation operation. I was also the Engineering Analysis operator who determined the need for projects to increase capacity. I Rave been at AVECC for eight months in my current capacity. My experience with operation and being involved in the building of substations has given me the back

Direct Testim ny of Shaw Walling Docket No. &31-4 Page 3 of 6 43 44 45 Q. 46 47 A. 48 Q 49 A. 50 51 52 53 54 55 56 57 58 59 60 61 Q. 62 A. 63 64 65 Q. ground to determine the need for additional substation capacity as well as the transmission requirements associated with this need. Have you previously filed testimony with the (APSC)? No. This is my first testimony before the APSC. What has been your substation and transmission tine construction experience? I have witnessed the construction of the Monkey Run Substation at North Arkansas Electric (NAEC). 1 have also witnessed the rebuilding and modification of the Fitzhugh Generating Station s switch yard and generator step up units, in Orark, Arkansas during the repowering of that plant. As stated above I was responsible at NAEC for the Maintenance of all 25 substations. There I was involved in writing the switching orders for the safe removal of several regulators from service and then replacing them with regulators that were not damaged. I have not been involved in the building of a transmission line. However, I have been involved in the operation of transmission lines as well as personally inspecting transmission lines for damage after stoms as well as during routine maintenance inspections. I have a very good understanding of the significance of the transmission line system. What is the nature of your testimony here? My testimony is to address the need for a substation and transmission tap in the Chaffee Crossing Redevelopment area of Sebastian County, just south of Fort Smith, Arkansas. The transmission tap will be 161 kv and connect to an existing AVECC transmission line. Please discuss the need for the project.

Direct Testimony of Shawn Walling Docket No. 031 Page 4 of 6 66 A. 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 This project is the result of the US Government released over 7,000 acres of land to the Fort Chaffee Redevelopment Authority. This Authority was formed in 1997. The purpose of this Authority was to...ensuring that this great opportunity reaches its full potential. About a quarter of this land is in AVECC s territory. The Authority has begun the prucess of developing this land. Most of this land had no development at all on it. There are currently several housing additions as well as a large apartment complex either completed or being built on this property. There are many other developments planed in this area. The Chaffee Redevelopment Authority has announced a new mall, a new Fort Smith High School, and a Medical School are all locating in the Chaffee Crossing area. These are not in AVECC s territory, but will lead to growth that will spill into AVECC s territory. The newest Interstate, 1-49, will pass through this area. The overpasses and road beds are all in place. The next step of the 149 project will be to cross the Arkansas River and tie into 1-540 at Alma to connect South Fort Smith with Fayetteville and Kansas City. The plans are to connect Fort Smith with Texarkana, but this will be a very long project through the mountains, and I do not want to imply that 1 believe this portion will be completed in any short time span. The area around Chaffee Crossing, South Fort Smith, is an area of load growth for AVECC. This load growth would require additional capacity in the three to six year time frame if Chaffee Crossing were not being developed. The new Chaffee Crossing coupled with the growth in South Fort Smith are requiring the addition of capacity. It is the opinion of the Chaffee Redevelopment Authority and AVECC that there will be substantial load growth in this area in the near future. It is

Direct Testimony of Shawn Walling Docket No. \+ b3inu Page 5 of 6 89 90 91 92 93 Q. 94 A. 95 96 97 98 99 100 101 102 103 104 105 106 107 108 104 110 111 expected that the opening of 149 will increase this growth substantially. AVECCs capacity in this area in not adequate to meet these needs. According to the Interstate49.org website, the portion of the interstate in Chaffee Crossing is scheduled to open in the spring of 2014. What site has been chosen for this project and what is the route of the transmission line? A 5 acre site was purchased from the Chaffee Redevelopment Authority for the substation. This site will allow for an additional transformer to be installed to meet the projected growth in the area. A benefit to this substation site is the transmission tine path. This path will be approximately 1.6 miles which is on the City of Fort Smith's land fill's property with only a very short piece of property crossing Sebastian County property. The path of the transmission line will utilize the land fill's fire break as the right of way. This property is maintained by the city and is mowed in a fashion to prevent fire from entering or leaving the land fill property. The transmission line will require few if any trees to be cut. The larger part is routed adjacent to a county road which allows for easy inspection of the line. Part of the 'over hang" easement will also utilize this road easement. The transmission line will not degrade the function of the property. This transmission line will help to offer reliable electricity to the Chaffee Crossing Development which will improve the tax base of the City of Fort Smith as well as the County. This is a positive for all organizations involved. AVECC will work with the City of Fort Smith concerning access and maintenance to the lines.

Direct Testimon of Shawn Walling Docket No. b3t-a Page 6 of 6 112 113 114 AVECC also plans to underbuild distribution lines to act as express feeders to allow for this new substation or the existing Rye Hill substation to feed by the other substation during certain times of the year allowing the substation transformers to be deenergized 115 for maintenance. 116 Q. 117 118 A. 119 120 Would construction of the proposed facilities at any other site or along any other route have lesser consequences than those proposed? No. The substation site is set. Any other path of the transmission line would impact private land owners and the function of their property. The land fill s fire break will not be impacted in any major way by the installing of this line. 121 Q. Does this conclude your testimony? 122 P Yes it does.