Electric TransmissionSiting, Permitting and Land Acquisition

Energy and the Economy Summit

June 26, 2013

The Reason…..

Our Lifestyles Depend on Electricity Being There When We Need It …..

• Electricity can't be effectively stored

• It has to be produced and delivered when it is needed

• This requires a complex system to produce and deliver electricity

Tri-State Generation and Transmission Association

Non-profit G&T cooperative operating in four states

Governed by a 44-member board, representing Tri-State’s 44 member cooperatives

200,000 square mile member service territory

The Grid…..

Tri-State Wholly or Jointly Owns, Operates and Maintains About 5,200 miles of High-Voltage Transmission Network Throughout Four States

Transmission Process

• Siting

• Permitting

• Right-of-Way Acquisition

What is “SITING”? - The act of finding a place for any permanent use or occupation.

There is a Process…..

Siting Analysis

• Define a “Study Area”

• Collect and Map Resource Data

• ID Opportunities and Constraints

• ID Alternative Routes• Solicit Public Input• Field inspection• Select Preferred

Alternative

Siting Analysis

• High Priorities in NE Colorado

Avoid, minimize and mitigate impacts to existing land use• Pivot irrigation

• Agricultural production

• Proximity to homes

• Oil and gas production

• Environmental constraints

Endangered Species

• Our service area contains plants and animals that have been listed as threatened or endangered

• If these listed species are present seasonal restrictions or area avoidance may be necessary

• Surveys may be required prior to work being done to ensure compliance with ESA

• Seasonal – avoid nesting timeframe• Avoidance – plants• Non-compliance can result in fines, potential loss of

permits/Grants of ROW, and substantial mitigation/reclamation costs.

Colorado hookless cactus Federally ThreatenedMontrose County

Gunnison Sage-GrouseCandidate

Penland BeardtongueFederally EndangeredRoute County

Ute Ladies’ Tresses OrchidFederally ThreatenedMorgan County

Preble’s Meadow Jumping MouseFederally ThreatenedEl Paso County

CommunicationsSuccess Can Depend Upon Effective Public Involvement and How and When You Engage the Public

Approach – Open and Transparent

Format – Workshops

Flush Out Issues Early

AudienceLandownersStakeholdersAgencies

Engaging Landowners

Landowners are first engaged through public involvement process

Survey permission sought • Land survey• Environmental inspection• Fatal flaw inspection

Individual contact following identification of preferred route

Permitting• State – CPCN Process

• Federal – NEPA Process– Projects crossing federal land– Federal funding

• Local Land Use Permit – 1041, SUP, CUP– Separate permit process in each local jurisdiction

Permitting

• Overhead vs. Underground

– Cost of Construction• Underground costs 10-15 times what overhead costs

– $350,000/mile vs. $3.5-5 million/mile

– Construction impacts• Continuous trench vs. one structure per span

– Maintenance issues• Problem areas not readily identifiable underground• Potential need for re-excavation• Repair time extended for underground

Right-of-Way

• After permitting – Obtain rights to construct, operate and maintain transmission lines within a designated location (may include access)

• Transmission line ROW typically consists of perpetual easements– “Right” in the land but not complete ownership

Right-of-Way

• ROW widths vary depending on voltage– 115kV – 100 feet– 230kV – 150 feet– 345kV – 200 feet

• Line typically centered in the easement, with the remainder remaining unoccupied

Right-of-Way

• Typical Provisions– Perpetual easement– Non-exclusive – Owner can grant easements to

others– Farming operations can continue

– No structures in ROW– No stockpiling or storage in ROW– No trees

Right-of-Way

• Compensation– Determination of Value• Market Data Analysis• Appraisals

– Good Faith Negotiations are Conducted

– Typical offer equals 100% of fee value

Tri-State Approach…..

• “Not for Profit” Association Committed to Reliable Service at Affordable Cost– Responsible to Overall Membership

• Follow and Adhere to Applicable Laws

• Negotiate in Good Faith and with Respect

• Treat Affected Landowners Fairly

Following Construction…..

• Repair Construction Damages• Ongoing Relationship with Landowners• A Presence Throughout Our Service Territory• Working For and Through our Membership to

Ensure Reliable Service at Affordable Price