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 Colorado PUC E-Filings System
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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.
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.
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.
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.
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