Transcript
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 1 of 28
NOTICE OF CONFIDENTIALITY PORTIONS OF THIS DOCUMENT HAVE BEEN FILED UNDER SEAL
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF COLORADO
* * * * *
IN THE MATTER OF THE APPLICATION OF PUBLIC SERVICE COMPANY OF COLORADO FOR APPROVAL OF THE 600 MW RUSH CREEK WIND PROJECT PURSUANT TO RULE 3660(H), A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR THE RUSH CREEK WIND FARM, AND A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR THE 345 KV RUSH CREEK TO MISSILE SITE GENERATION TIE TRANSMISSION LINE AND ASSOCIATED FINDINGS OF NOISE AND MAGNETIC FIELD REASONABLENESS.
) ) ) ) ) ) ) PROCEEDING NO. 16A-0117E ) ) ) ) ) ) ) ) )
PUBLIC VERSION DIRECT TESTIMONY AND ATTACHMENTS OF JOHN D. LUPO
ON
BEHALF OF
PUBLIC SERVICE COMPANY OF COLORADO
NOTICE OF CONFIDENTIALITY
PORTIONS OF THIS DOCUMENT HAVE BEEN FILED UNDER SEAL
Page 25, lines 9, 15, 19
MAY 13, 2016
Colo
rado
PUC
E-Fil
ings
Syst
em
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 2 of 28
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF COLORADO
* * * * *
IN THE MATTER OF THE APPLICATION OF PUBLIC SERVICE COMPANY OF COLORADO FOR APPROVAL OF THE 600 MW RUSH CREEK WIND PROJECT PURSUANT TO RULE 3660(H), A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR THE RUSH CREEK WIND FARM, AND A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR THE 345 KV RUSH CREEK TO MISSILE SITE GENERATION TIE TRANSMISSION LINE AND ASSOCIATED FINDINGS OF NOISE AND MAGNETIC FIELD REASONABLENESS.
) ) ) ) ) ) ) PROCEEDING NO. 16A-0117E ) ) ) ) ) ) ) ) )
SUMMARY OF THE DIRECT TESTIMONY OF JOHN D. LUPO
As Senior Manager, Siting and Land Rights, Mr. Lupo is responsible for
managing and supervising the siting, permitting, and land rights acquisition for
new facilities of Xcel Energy subsidiaries in Colorado, Texas, and New Mexico.
In his testimony, Mr. Lupo provides an overview of the siting, permitting
and land rights issues associated with Public Service Company of Colorado’s
(“Public Service” or the “Company”) request to construct and maintain a 345 kV
electric generation intertie transmission line (“Rush Creek Gen-Tie” or “Gen-Tie”)
that will transmit energy from the Rush Creek I and II generation sites to Public
Service’s Missile Site Substation in Arapahoe County, Colorado.
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 3 of 28
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF COLORADO
* * * * *
IN THE MATTER OF THE APPLICATION OF PUBLIC SERVICE COMPANY OF COLORADO FOR APPROVAL OF THE 600 MW RUSH CREEK WIND PROJECT PURSUANT TO RULE 3660(H), A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR THE RUSH CREEK WIND FARM, AND A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR THE 345 KV RUSH CREEK TO MISSILE SITE GENERATION TIE TRANSMISSION LINE AND ASSOCIATED FINDINGS OF NOISE AND MAGNETIC FIELD REASONABLENESS.
) ) ) ) ) ) ) PROCEEDING NO. 16A-0117E ) ) ) ) ) ) ) ) )
DIRECT TESTIMONY AND ATTACHMENTS OF 1
JOHN D. LUPO
INDEX
SECTION PAGE I. INTRODUCTION, QUALIFICATIONS AND PURPOSE OF TESTIMONY ... 6 II. DESCRIPTION OF SITING, PERMITTING, AND LAND RIGHTS
ACQUISITION ACTIVITIES .......................................................................... 9 III. RUSH CREEK I AND RUSH CREEK II WIND FARM SITES ..................... 12
A. Land Use and Permitting .................................................................... 12
B. Outreach and Public Involvement ...................................................... 16
IV. RUSH CREEK GEN-TIE ............................................................................. 18 A. Land Use and Permitting .................................................................... 18
V. ESTIMATED LAND COSTS ....................................................................... 25
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 4 of 28
LIST OF ATTACHMENTS
Attachment No. JDL-1 Rush Creek Wind Project Study Area and Route Alternatives Map
Attachment No. JDL-2 Public Open Houses Invitation Mailer
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 5 of 28
GLOSSARY OF ACRONYMS AND DEFINED TERMS
Acronym/Defined Term Meaning
Invenergy Invenergy Wind Development North America LLC
IPP Independent Power Producer
MW Megawatt(s)
PSA Purchase and Sale Agreement
Public Service or Company Public Service Company of Colorado
ROW Right of Way
Xcel Energy Xcel Energy Inc.
XES or Service Company Xcel Energy Services Inc.
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 6 of 28
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF COLORADO
* * * * *
IN THE MATTER OF THE APPLICATION OF PUBLIC SERVICE COMPANY OF COLORADO FOR APPROVAL OF THE 600 MW RUSH CREEK WIND PROJECT PURSUANT TO RULE 3660(H), A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR THE RUSH CREEK WIND FARM, AND A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR THE 345 KV RUSH CREEK TO MISSILE SITE GENERATION TIE TRANSMISSION LINE AND ASSOCIATED FINDINGS OF NOISE AND MAGNETIC FIELD REASONABLENESS.
) ) ) ) ) ) ) PROCEEDING NO. 16A-0117E ) ) ) ) ) ) ) ) )
DIRECT TESTIMONY AND ATTACHMENTS OF 1 JOHN D. LUPO
I. INTRODUCTION, QUALIFICATIONS AND PURPOSE OF TESTIMONY 2
Q. PLEASE STATE YOUR NAME AND BUSINESS ADDRESS. 3
A. My name is John D. Lupo. My business address is 1800 Larimer, Suite 4
400, Denver, Colorado, 80202. 5
Q. BY WHOM ARE YOU EMPLOYED AND IN WHAT POSITION? 6
A. I am employed by Xcel Energy Services Inc. (“XES”), the wholly-owned 7
subsidiary of Xcel Energy, Inc. (“Xcel Energy”), which provides an array of 8
support services to Public Service Company of Colorado (“Public Service” 9
or “Company”) and the other utility operating company subsidiaries of Xcel 10
Energy on a coordinated basis. My title is Senior Manager, Siting and 11
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 7 of 28
Land Rights. My primary responsibility is to manage and supervise the 1
siting, permitting, and land rights acquisition for new facilities of Xcel 2
Energy subsidiaries in Colorado, Texas, and New Mexico. 3
Q. ON WHOSE BEHALF ARE YOU TESTIFYING IN THE PROCEEDING? 4
A. I am testifying on behalf of Public Service. 5
Q. HAVE YOU PREPARED A STATEMENT OF YOUR EXPERIENCE AND 6
QUALIFICATIONS? 7
A. Yes. A description of my qualifications, duties, and responsibilities is 8
included after the conclusion of my testimony. 9
Q. WHAT IS THE PURPOSE OF YOUR DIRECT TESTIMONY? 10
A. The purpose of my testimony is to describe the siting, permitting, and land 11
rights activities that have occurred and are planned to occur with respect 12
to: (1) the Rush Creek I and II wind generation facilities, and (2) the 345 13
kV generation intertie transmission line (“Rush Creek Gen-Tie” or “Gen-14
Tie”) that will interconnect the wind generation facilities at Rush Creek I 15
and II to the electric grid at Public Service’s existing Missile Site 16
Substation. I discuss each of these aspects of the overall Rush Creek 17
Wind Project separately because of the unique role Invenergy Wind 18
Development North America, LLC (“Invenergy”) plays with respect to 19
preparing the Rush Creek I and II sites for development, whereas Public 20
Service alone is handling all permitting, siting, and land rights issues for 21
the Rush Creek Gen-Tie. Importantly, I explain that the Company will 22
comply with § 40-5-101, C.R.S., which provides that a “public utility shall 23
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 8 of 28
not construct or install a new facility, plant, or system within the territorial 1
boundaries of a local government unless the construction or installation 2
complies with the local government’s zoning rules, resolutions, or 3
ordinances.” 4
Q. ARE YOU SPONSORING ANY ATTACHMENTS AS PART OF YOUR 5
DIRECT TESTIMONY? 6
A. Yes, I am sponsoring Attachments JDL-1 and JDL-2, which were prepared 7
by me or under my direct supervision. Below is a summary of each 8
Attachment: 9
Attachment JDL-1 is a detailed map of the Rush Creek Wind 10 Project study area where the Company is considering Gen-Tie 11 route options, overlain with several routing alternatives. 12
Attachment JDL-2 shows the invitation mailer sent to project 13 stakeholders announcing three public meetings in May and June 14 2016. 15
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 9 of 28
II. DESCRIPTION OF SITING, PERMITTING, AND LAND RIGHTS 1 ACQUISITION ACTIVITIES 2
Q. PLEASE DESCRIBE THE RUSH CREEK WIND PROJECT AND THE 3
LOCATION OF RUSH CREEK I, RUSH CREEK II, AND THE RUSH 4
CREEK GEN-TIE. 5
A. The Rush Creek Wind Project consists of 600 megawatts (“MW”) of new 6
wind energy facilities and a new single-circuit 345 kV generation intertie 7
transmission line (the “Rush Creek Gen-Tie” or “Gen-Tie”) located on the 8
eastern plains of Colorado. The 600 MW of new wind energy facilities are 9
located on two sites and include approximately 400 MW on the site called 10
Rush Creek I, located in Elbert County; and approximately 200 MW on the 11
site called Rush Creek II, located in Lincoln, Kit Carson and Cheyenne 12
Counties. Together, Rush Creek I and II encompass approximately 13
96,200 acres with Rush Creek I comprising roughly 56,000 acres and 14
Rush Creek II comprising roughly 40,200 acres. The proposed 345 kV 15
Rush Creek Gen-Tie will span approximately 40 miles from the Rush 16
Creek II generation site west to a new Switching Station at Rush Creek I, 17
then continue approximately 50 miles north to the Company’s existing 18
Missile Site Substation located in Arapahoe County. Depending on the 19
final route selected, the new 345 kV Gen-Tie will be approximately 90 20
miles in length with an expected 150-foot wide right-of-way (“ROW”). In 21
Attachment JDL-1 Mr. Lupo presents a map showing the project study 22
area and Gen-Tie routing alternatives the Company has identified to date. 23
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 10 of 28
Q. IS THE COMPANY SEEKING APPROVAL OF THE SITING IN THIS 1
APPLICATION? 2
A. No, § 40-5-101(3), C.R.S., vests local governments rather than the 3
Commission with exclusive authority over siting. Consistent with Colorado 4
law, local governments will review and approve the development of all 5
utility facilities associated with the Rush Creek I and II sites and the Gen-6
Tie, including electric substations, through various local land use 7
permitting processes. While the Company is not seeking specific 8
Commission approval of the siting in its Application, I nonetheless explain 9
the siting, permitting, and land rights acquisition activities associated with 10
the Project to provide the Commission with context for considering the 11
Company’s Application for Certificate of Public Convenience and 12
Necessity (“CPCN”). 13
Q. PLEASE DESCRIBE THE CHARACTERISTICS OF THE PROJECT 14
AREA FOR THE OVERALL RUSH CREEK WIND PROJECT. 15
A. The Rush Creek Wind Project is set within the eastern plains of Colorado, 16
which is characterized by rolling shortgrass prairies ranging in elevation 17
between 3,400 feet and 6,000 feet. Landscape types are predominately 18
dry land pasture and open rangeland with cattle ranching and some 19
cultivated farming. Agriculture is the predominant land use and the region 20
is sparsely populated with scattered homesteads, farms and small 21
settlements. Climate in the area is semi-arid with few major natural water 22
bodies other than the Big Sandy Creek, which runs through the northern 23
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 11 of 28
and eastern portions of the project study area. Rush Creek is a tributary 1
of Big Sandy Creek that starts at the confluence of South Rush Creek and 2
North Rush Creek in Lincoln County and flows through Cheyenne County 3
before joining Big Sandy Creek. Due to its topography and exposure, the 4
area is known for its high quality wind resources. As reflected in 5
Attachment JDL-1, directly north of the eastern portion of the project study 6
area are several existing wind farms owned by independent power 7
producers (“IPP”), including Limon I, II, III and Cedar Point in Lincoln and 8
Elbert counties. To the southwest of the project study area in El Paso 9
County is the Golden West wind farm, which is also IPP-owned. 10
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 12 of 28
III. RUSH CREEK I AND RUSH CREEK II WIND FARM SITES 1
Q. WHAT IS THE PURPOSE OF THIS SECTION OF YOUR TESTIMONY? 2
A. The purpose of this section of my testimony is to describe the siting, 3
permitting, land rights acquisition, and outreach and public involvement 4
activities specific to the Rush Creek I and Rush Creek II wind generation 5
sites. As I discuss in this section of my testimony, Invenergy is required to 6
deliver construction ready sites to Public Service as set forth in the two 7
Purchase and Sale Agreements (“PSA”) it has entered into with Public 8
Service. 9
A. Land Use and Permitting 10
Q. PLEASE PROVIDE AN OVERVIEW OF THE SITING, PERMITTING AND 11
LAND RIGHTS ACQUISITION ACTIVITIES FOR THE RUSH CREEK I 12
AND RUSH CREEK II WIND FARM SITES TO DATE. 13
A. As discussed in Mr. Riley Hill’s testimony, Public Service has entered into 14
two similar PSAs with Invenergy for the acquisition of “construction ready” 15
wind generation sites at Rush Creek I and Rush Creek II1. Per the terms 16
of each PSA, prior to closing, Invenergy is responsible for securing local, 17
state and federal permits, and any other necessary approvals or 18
clearances for completing the development of the wind farms. Invenergy is 19
also responsible for obtaining real property interests such as leases, 20
purchase options or fee title necessary to support wind farm development. 21
As discussed in more detail below, Public Service is responsible for 22 1 The term “construction ready” is formally defined in the PSA.
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 13 of 28
obtaining land rights and permits for the Rush Creek Gen-Tie required to 1
interconnect the Rush Creek I and II sites to the grid. Local land use 2
permits are the most significant permitting requirement associated with the 3
Project. Table JDL-1 shows which counties require land use permits, 4
broken down by (1) the Rush Creek I and II wind farm sites, and (2) the 5
Gen-Tie. 6
Table JDL-1 Local Land Use Permits Required 7
County
Local Land Use Permits Required Rush Creek I & Rush Creek II
Wind Farm Sites (Invenergy to
obtain Permits)
Rush Creek Gen-Tie Transmission Line (Public Service to obtain Permits)
Arapahoe N/A X Cheyenne X N/A
Elbert X X Lincoln X X
Kit Carson X N/A
Q. WHAT IS YOUR UNDERSTANDING OF THE STATUS OF SITING AND 8
LAND RIGHTS ACTIVITIES FOR THE RUSH CREEK I AND RUSH 9
CREEK II WIND FARM SITES? 10
A. Consistent with the terms of each PSA, Invenergy has made substantial 11
progress acquiring land rights at both Rush Creek I and Rush Creek II. 12
More than 80 percent of the land rights at Rush Creek I have been 13
obtained and all land rights have been obtained for the Rush Creek II site. 14
Additionally, Public Service and Invenergy have recently collaborated on 15
“micro-siting” at each site, which involves optimizing the specific location 16
of each wind turbine considering local land constraints and setbacks, pwer 17
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 14 of 28
output and construction costs. This turbine micro-siting process in turn will 1
inform the siting of access roads, gathering lines, substations, 2
transmission lines and ancillary facilities. This is an iterative process as 3
permitting and land acquisition activities progress. 4
Q. WILL PUBLIC SERVICE NEED TO ACQUIRE ANY PERMANENT 5
EASEMENTS OR LAND FOR THE RUSH CREEK I AND RUSH CREEK 6
II WIND FARM SITES? 7
A. Invenergy is using a “Wind Lease and Easement Agreement” to secure all 8
land rights necessary for all development activities including wind turbines, 9
overhead and underground electrical distribution, collection, transmission 10
and communication lines, electric transformers, electric substations, 11
roads, wind measurement equipment and other ancillary facilities, as well 12
as construction activities and uses. Although the Wind Lease and 13
Easement Agreements grant the right to construct transmission lines and 14
substations, Public Service plans to purchase separate easements for 15
transmission lines and fee title for property where the collector substations 16
and Rush Creek Switching Station are located. These rights would more 17
clearly define the location and extent of each facility and avoid the 18
possibility of future title issues. Under each PSA, once Invenergy has 19
completed its site development obligations, it will transfer all land rights to 20
Public Service. 21
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 15 of 28
Q. PLEASE PROVIDE INFORMATION ABOUT THE LOCAL LAND USE 1
PERMITTING ACTIVITIES FOR THE RUSH CREEK I AND RUSH 2
CREEK II WIND FARM SITES. 3
A. Invenergy and Public Service are coordinating closely to secure permits in 4
Elbert and Lincoln Counties, where permits for the Rush Creek generation 5
sites and Gen-Tie are both required. For instance, we have met jointly 6
with local government officials at these counties to brief them about the 7
business structure, respective roles in developing the Project, and 8
schedule drivers and milestones. Invenergy has been engaged in the 9
development of the project areas for over two years. Invenergy and Public 10
Service have also been actively engaged with each county to determine 11
specific permit submittal requirements and processes, with the goal of 12
having all local land use approvals by November 2016. Below is a list of 13
some of the joint activities we have engaged in to date: 14
April 29, 2016: Invenergy and Public Service briefed Cheyenne 15 County Commissioners 16
May 6, 2016: Invenergy and Public Service briefed Lincoln County 17 Commissioners. 18
May 10, 2016: Invenergy and Public Service held a joint pre-19 application meeting with Elbert County officials. 20
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 16 of 28
Q. WHAT IS YOUR UNDERSTANDING OF THE ANTICIPATED TIMELINE 1
TO CONDUCT LOCAL LAND USE PERMITTING ACTIVITIES FOR 2
RUSH CREEK I AND RUSH CREEK II WIND FARM SITES? 3
A. Local land use permitting started in April 2016 and is expected to take 4
approximately six to seven months. 5
Q. ONCE PUBLIC SERVICE TAKES EQUITY OWNERSHIP OF RUSH 6
CREEK I AND RUSH CREEK II, WILL PUBLIC SERVICE COMPLY 7
WITH APPLICABLE LOCAL GOVERNMENTS’ LAND USE 8
REGULATIONS IN CONSTRUCTING AND OPERATING THE 9
PROJECT? 10
A. Yes. 11
B. Outreach and Public Involvement 12
Q. WHAT OUTREACH HAS OCCURRED AND IS PLANNED TO OCCUR 13
WITH RESPECT TO THE RUSH CREEK I AND RUSH CREEK II WIND 14
FARM SITES WITHIN THE AFFECTED JURISDICTIONS? 15
A. Invenergy has been engaged in the communities for over two years in 16
obtaining land rights, collecting wind data, performing wildlife surveys and 17
other development activities. In addition to the local government outreach 18
activities described earlier in my testimony, Invenergy and Public Service 19
have produced Rush Creek Wind Farm fact sheets that have been 20
distributed to various stakeholders, as well as an informational letter, 21
which was sent to landowners participating in wind leases. Additionally, 22
Invenergy and Public Service have scheduled the following public open 23
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 17 of 28
house meetings for late May and early June 2016 to seek public input on 1
the Rush Creek I and II generation sites and the Gen-Tie route 2
alternatives: 3
May 25 in Simla, Elbert County; 4
May 26 in Hugo, Lincoln County; and 5
June 2 in Deer Trail, Arapahoe County. 6
During the week of May 9, 2016 invitations were mailed to over 7
2,000 landowners, agencies, non-governmental organizations and other 8
interested parties. Meeting announcements will also be placed in local 9
newspapers and posted in public spaces throughout the community. 10
Attachment JDL-2 shows the meeting invitation announcing the three 11
open houses. 12
Public Service and Invenergy have set up additional ways for the 13
public to receive more information about the Rush Creek Wind Project and 14
to engage in the permitting process, including: online comment 15
submission forms, a dedicated phone line and e-mail address, and a 16
Project website: www.transmission.xcelenergy.com. 17
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 18 of 28
IV. RUSH CREEK GEN-TIE 1
2 Q. WHAT IS THE PURPOSE OF THIS SECTION OF YOUR TESTIMONY? 3
A. The purpose of this section of my testimony is to describe the siting, 4
permitting, land rights acquisition, and outreach and public involvement 5
activities specific to the 345 kV Rush Creek Gen-Tie. 6
A. Land Use and Permitting 7
Q. PLEASE DESCRIBE THE RUSH CREEK GEN-TIE AND THE GENERAL 8
LOCATION WHERE THE RUSH CREEK GEN-TIE WILL BE LOCATED. 9
A. As reflected in Attachment JDL-1, the Gen-Tie will extend from the Rush 10
Creek I collector substation in Lincoln County approximately 40 miles west 11
to a new Rush Creek Switching Station at Rush Creek I in Elbert County, 12
then north to the Company’s existing Missile Site Substation in Arapahoe 13
County. 14
Q. HAS A FINAL ROUTE BEEN SELECTED FOR THE RUSH CREEK 15
GEN-TIE? 16
A. No. Although route selection is not within the Commission’s purview, 17
Public Service has completed studies to identify several preliminary 18
alternative routes for the new Gen-Tie, which are reflected in Attachment 19
JDL-1 and provided for informational purposes to provide the Commission 20
with context for considering the Company’s Application for CPCN. A final 21
route will not be selected until local officials, landowners, agencies, and 22
other stakeholders have an opportunity to review and provide input on the 23
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 19 of 28
various route alternatives. We anticipate a final route will be selected by 1
end of July 2016. 2
Q. PLEASE PROVIDE AN OVERVIEW OF THE STATUS OF SITING AND 3
ROUTING ACTIVITIES TO DATE FOR THE RUSH CREEK GEN-TIE. 4
A. Public Service has completed its initial alternative route analysis. The 5
objective of the analysis was to identify preliminary route segments that 6
provide feasible and geographically diverse potential interconnections into 7
Missile Site Substation. Within the study area reflected in Attachment JDL-8
1, we gathered and analyzed land use, environmental and cultural data to 9
identify areas of constraints and opportunities for routing. Preliminary 10
route segments were identified for further analysis and comparison using 11
evaluation criteria such as: 12
Number and type of habitable structures within defined distances of 13 each segment; 14
Length of segments crossing various sensitive wildlife and plant 15 habitats; 16
Length of segments crossing floodplains, wetlands and major 17 vegetative cover types; 18
Length of segments crossing pasture/rangeland and cultivated 19 cropland; 20
Length of segments parallel and adjacent to property boundaries, 21 section lines, roads, and other linear rights-of-way; 22
Number of crossings of other linear features such as rivers, 23 streams, railroads, highways, pipelines and transmission lines; and, 24
Number of historic, prehistoric, and archeological sites within 25 proximity of segments, 26
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 20 of 28
Technical, engineering, economic and constructability 1 considerations. 2
Subsequent routing steps will be used to determine potential 3
impacts to existing land use and environmental resources and mitigation 4
measures. Attachment JDL-1 shows the alternative routes identified to 5
date. With the exception of any segment that might parallel existing 6
transmission lines owned by KC Electric Association or Mountain View 7
Electric Association, local electric cooperatives, and Tri-State Generation 8
& Transmission, our preliminary routing study areas consist of 9
approximately two-mile wide corridors to allow for maximum siting 10
flexibility. 11
To ensure the decision-making process is open and reflective of 12
community values, before selecting a preferred route, Public Service will 13
seek input from landowners, local officials and other stakeholders, such as 14
districts of the Colorado Farm Bureau, Colorado Cattleman’s Association, 15
local conservation, school and fire districts, regional chambers of 16
commerce and economic development groups, local rural electric co-ops, 17
historic preservation interests, and various other non-governmental 18
organizations. As described in my earlier testimony, Public Service and 19
Invenergy will co-host three public meetings to provide information and 20
ask for stakeholder input. Information from these meetings will be posted 21
on the Project website, www.transmission.xcelenergy.com, where 22
stakeholders can also provide comments and feedback about the project. 23
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 21 of 28
We also are encouraging small group and one-on-one meetings between 1
Public Service and other interested parties. 2
Q. PLEASE PROVIDE AN OVERVIEW OF THE STATUS OF PERMITTING 3
ACTIVITIES TO DATE FOR THE RUSH CREEK GEN-TIE. 4
Local land use permitting efforts began in late April 2016 with initial 5
briefing and introduction meetings with Arapahoe, Elbert and Lincoln 6
counties. Formal county pre-application meetings are scheduled with 7
Arapahoe and Elbert Counties in May; Lincoln County does not require a 8
formal pre-application meeting as part of its permitting process. Each 9
county’s permitting process involves public hearings before their 10
respective Planning Commission and Board of County Commissioners. 11
Based on typical timing for such processes, our goal is to secure local 12
land use permits from all three counties by November 2016, which aligns 13
with Invenergy’s expected permitting timeline for Rush Creek I and Rush 14
Creek II. Public Service and Invenergy are closely coordinating their 15
respective permitting activities for the Gen-Tie and wind farms, including 16
jointly participating in project briefings and pre-permitting communications 17
with the two counties within which both parties require land use permits. In 18
those two counties – Elbert and Lincoln – we will synchronize permitting 19
efforts if practicable, including filing permit applications concurrently or in 20
close succession. Table JDL-2 below shows a high-level schedule of 21
outreach, permitting and land rights acquisition activities to support a 22
construction start in April 2017 and a commercial operation date of late 23
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 22 of 28
2018. Table JDL-2 also shows the estimated schedule for Public Service 1
and Invenergy permitting and land rights activities. 2
Table JDL-2 Permitting and Land Rights Schedule 3
Q. PLEASE PROVIDE AN OVERVIEW OF THE STATUS OF LAND 4
RIGHTS ACQUISTION ACTIVITIES TO DATE FOR THE RUSH CREEK 5
GEN-TIE. 6
With respect to land rights acquisition activities, we have gathered, 7
mapped and analyzed property ownership and parcel data within the study 8
area. We have also ordered a real estate market data analysis, as well as 9
title reports. Depending on the final route selected, the Gen-Tie will likely 10
cross between 50 and 60 unique private property owners and several 11
sections owned by the Colorado State Land Board. We will acquire 12
easements for a 150-foot-wide ROW for the Gen-Tie. However, we plan 13
to acquire land rights in fee for the Rush Creek Switching Station and 14
Rush Creek I and II collector substation sites, the general location of 15
which are shown on Attachment JDL-1. 16
Public Service and Invenergy Permitting and Land Rights Schedule
Mar Apr May June Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr
Communication and Outreach Plan
Environmental Planning / Routing Studies
Public Open Houses / Landowner Mtgs.
Consultation & Pre‐application Meetings
Preferred Routes Identified (Public Service only)
Land Use Permit Applications ‐ Prepare & Submit
Public Hearings & Land Use Permit Approvals
Land Rights Acquisition (Public Service only)
Construction Start ‐ Wind & Transmission
2016 2017
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 23 of 28
With the planned in-service date of late 2018, the Gen-Tie and 1
Rush Creek Switching Station must be operational by August 2018 to 2
allow for testing and backfeed. To support an August 2018 in-service date 3
for the Gen-Tie, all permits and land rights must be secured by April 2017 4
to allow sufficient time for final engineering, equipment procurement, and 5
construction. Given the timeframe for routing, permitting and acquisition 6
activities, we plan to begin easement acquisition activities concurrent with 7
permitting activities. In June, following the series of public meetings, we 8
will begin discussions with landowners to gauge interest in granting 9
easements and or option agreements for those route segments that 10
parallel existing transmission rights-of-way into the Missile Site Substation. 11
Formal negotiations will follow for the balance of the Gen-Tie once a 12
preferred route is identified. 13
Q. ARE ANY OTHER PERMITS OR APPROVALS NEEDED PRIOR TO 14
CONSTRUCTING THE RUSH CREEK GEN-TIE? 15
A. Yes, while local land use permits will be the primary project authorization, 16
construction with several other state and federal agencies will be 17
conducted before construction begins. In conjunction with local land use 18
permitting, we are currently in the process of consulting with several state 19
and federal agencies. To ensure compliance with the National Historic 20
Preservation Act, we are consulting with the Colorado State Office of 21
Historic Preservation. Additionally, we will consult with the Colorado 22
Parks and Wildlife Department and U.S. Fish and Wildlife Service to 23
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Proceeding No. 16A-0117E Page 24 of 28
ensure compliance with all applicable state and federal wildlife protection 1
regulations. However, based on environmental due diligence studies that 2
have been performed to date and the fact that no portion of the Rush 3
Creek Wind Project is located on federal lands, the Company does not 4
anticipate any significant federal permitting requirements. 5
Any necessary construction-related authorizations that are typically 6
administrative in nature will occur between the time local land use permits 7
are acquired and when construction begins. These authorizations may 8
include building permits, permits for road crossings and road occupancy, 9
and any bridge, railroad or highway crossings. We will also work with the 10
Colorado Department of Public Health and Environment to acquire storm 11
water permits, as well as any other approvals necessary to comply with 12
the Clean Water Act. 13
Q. WILL PUBLIC SERVICE COMPLY WITH APPLICABLE LOCAL 14
GOVERNMENTS’ LAND USE REGULATIONS IN CONSTRUCTING 15
AND OPERATING THE RUSH CREEK GEN-TIE? 16
A. Yes. 17
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Proceeding No. 16A-0117E Page 25 of 28
V. ESTIMATED LAND COSTS 1
Q. WHAT IS THE PURPOSE OF THIS SECTION OF YOUR TESTIMONY? 2
A. The purpose of this section of my testimony is to provide the estimated 3
land costs associated with the Rush Creek Wind Project, as required by 4
Commission Rule 3102(b)(IV). 5
Q. WHAT ARE THE ESTIMATED LAND DEVELOPMENT COSTS 6
ASSOCIATED WITH THE RUSH CREEK I AND RUSH CREEK II WIND 7
FARM SITES? 8
A. During construction the Company is forecasting million in 9
construction-related landowner payments. This payment is to compensate 10
landowners for roads and the collector system. Once the unit is 11
operational, the Company expects to compensate landowners for 12
continued use of their property by paying them royalties. The Company 13
forecasts the total royalty payments over the 25-year life of the Rush 14
Creek I and II facilities (aggregate nominal dollars) to be . 15
Q. WHAT ARE THE ESTIMATED LAND AND PERMITTING COSTS 16
ASSOCIATED WITH THE RUSH CREEK GEN-TIE? 17
We estimate the total land rights, permitting, and “soft” costs to be 18
approximately , including contingencies. Examples of soft 19
costs include professional services for environmental consulting 20
specialists, land acquisition agents, land surveyors, appraisers, legal 21
services, title work, and in-house labor. 22
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Proceeding No. 16A-0117E Page 26 of 28
Q. DOES THIS CONCLUDE YOUR TESTIMONY? 1
A. Yes. 2
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 27 of 28
Statement of Qualifications
John D. Lupo
John Lupo is the Senior Manager of Xcel Energy’s Siting & Land Rights
(“S&LR”) group in Denver, Colorado. In this role he oversees land planning,
permitting and acquisition efforts for energy infrastructure projects in Colorado,
Texas, and New Mexico. For over 15 years he has directed facility siting,
permitting and stakeholder outreach efforts in support of electric, gas and
generation development.
Previously, John was with Xcel Energy’s Resource Planning & Acquisition
group, where he contributed to the preparation of Integrated Resource Plans for
Public Service Company of Colorado and Northern States Power Company, a
Minnesota corporation. In this role he acted as project manager for several
competitive resource solicitations to acquire new conventional and renewable
energy and capacity. He was also director of Xcel Energy’s Renewable
Development Fund, an NSP program.
Prior to joining Xcel Energy, John was a senior associate with Hammer,
Siler, George Associates, a national economic land development consultancy.
He also practiced landscape architecture and land use planning with the Winter
Park ski area and Gage Davis Associates.
John holds a Bachelor of Science degree in Landscape Architecture from
Penn State University and a Masters of Urban & Regional Planning degree from
the University of Colorado. He has sponsored written and oral testimony before
Colorado and Minnesota regulatory agencies, as well as the Federal Energy
Hearing Exhibit 109 Public Version Direct Testimony of John D. Lupo
Proceeding No. 16A-0117E Page 28 of 28
Regulatory Commission and the U.S. Department of Energy. John recently
represented Xcel Energy on the Colorado Governor’s Siting and Permitting Task
Force and on the Western Governors’ Association Transmission Permitting Task
Force.
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