The transmission line does not make sense from an economic perspective -- looks like when it is time to change the oil in a car, Dominion would simply buy a new car..

7/14/2008

Last week PEC went back to Richmond for more hearings with Dominion, Allegheny and PJM. This hearing focused on the results of a recent power auction that showed increased generation and demand response on the east coast. The Hearing Examiner requested an analysis of how that auction affects any need for the line.

Dominion ran tests, PJM ran tests and PEC ran tests. Needless to say, we couldn't agree on the results (although Dominion agreed that power flows to New York contribute significantly to the alleged need for the line).

Given the Choice of Spending $1 Billion or $50 Million, Dominion Would Choose $1 Billion

The utility case is simple: they failed a test (a test they designed) and failing that test is proof that they should get to build a transmission line. We showed that if Dominion's test scenarios were ever to happen in real life, the problem could be remedied with between $2 and $50 million dollars of power purchases from existing power plants. Dominion argued that the less expensive solution doesn't meet their planning criteria. In other words, even though cost-effective, low-impact solutions are available, Dominion still wants to spend a billion dollars, affecting communities and land from Pennsylvania to Virginia.

SCC Examiner Will Make His Recommendation Soon

We've done everything we can to provide the State Corporation Commission with expertise and an alternative view. We believe our case is the strongest, our experts are the most credible, and that the evidence supports a denial of the line. But we are up against Dominion. And on a sobering note, the SCC staff indicated they are content to trust Dominion's planning criteria as they have always done in the past, and they are willing to trust PJM's planning criteria. The decision now rests with the Hearing Examiner and then the Commissioners of the State Corporation Commission. The Hearing Examiner indicated he will make his recommendation soon, most likely before August.