BEFORE THE

PENNSYLVANIA PUBLIC UTILITY COMMISSION

Application of PPL Electric Utilities Corporation :

Filed Pursuant to 52 Pa. Code Chapter 57, : A-2009-2082652

Subchapter G, for Approval of the Siting and :

Construction of the Pennsylvania Portion of :

The Proposed Susquehanna-Roseland 500 kV :

Transmission Line in Portions of Lackawanna, :

Luzerne, Monroe, Pike and Wayne Counties, :

Pennsylvania :

Petition of PPL Electric Utilities Corporation :

For A Finding That A Building To Shelter : A-2009-2082832

Equipment At The 500-230 kV Substation To :

Be Constructed In The Borough of Blakely, :

Lackawanna County, Pennsylvania is :

Reasonably Necessary For the Convenience :

Or Welfare Of the Public :

Application of PPL Electric Utilities Corporation :

Under 15 Pa. C.S. §§1511(c) for a Finding and :

Determination That The Service To Be Furnished :

By The Applicant Through Its Proposed Exercise :

Of The Power Of Eminent Domain To Acquire :

A Right-Of-Way And Easement Over And Across :

The Lands Of Chaudari Family Limited Partner- : A-2009-2088297

Ship, David Murphy, and Marguerite T. Kranick :

In South Canaan Township, Wayne County For :

The Proposed Susquehanna-Roseland 500 kV :

Transmission Line in Portions of Lackawanna, :

Luzerne, Monroe, Pike and Wayne Counties, :

Pennsylvania Is Necessary or Proper For The :

Service, Accommodation, Convenience Or :

Safety Of The Public :

Application of PPL Electric Utilities Corporation :

Under 15 Pa. C.S. §§1511(c) for a Finding and :

Determination That The Service To Be Furnished :

By The Applicant Through Its Proposed Exercise :

Of The Power Of Eminent Domain To Acquire :

A Right-Of-Way And Easement Over And Across :

The Lands Of The Property Owners Listed Below :

For The Proposed Susquehanna-Roseland 500 kV :

Transmission Line in Portions of Lackawanna, :

Luzerne, Monroe, Pike and Wayne Counties, :

Pennsylvania Is Necessary or Proper For The :

Service, Accommodation, Convenience Or :

Safety Of The Public: :

HaRa Corporation : A-2009-2088337

:

Richard Coccodrilli, Jr., : A-2009-2088327

Jeffrey J. Coccodrilli, :

Ryan T. Coccodrilli, and :

Joseph Williams :

:

D&L Realty Company : A-2009-2088340

:

Rudolph Saporito and : A-2009-2088312

Maria Saporito :

:

David Murphy : A-2009-2088360

RECOMMENDED DECISION

Before

Susan D. Colwell

Administrative Law Judge

TABLE OF CONTENTS

I. HISTORY OF THE PROCEEDINGS 1

II. FINDINGS OF FACT 7

A. Introduction 7

B. Need 11

C. Siting 27

D. Eminent Domain 70

E. Eminent Domain Applications 72

III. DISCUSSION 77

A. LEGAL STANDARDS 79

1. Burden of Proof 79

2. Applicable statutes and regulations 81

3. Standards for Approval to Exercise the Power of Eminent Domain 87

4. Standards for Approval of the Siting of Substation Control Equipment Buildings 88

5. Types of Evidence 90

B. Need 92

1. Need for the Proposed Transmission Line 92

2. Need for the Proposed Lackawanna Substation 148

3. Public Input Hearings 151

C. Siting 162

1. Route Selection 163

2. Safety 192

3. EMF 199

4. Reroutes to Avoid Saw Creek Estates 218

5. Real Estate Values 242

6. Undergrounding. 246

7. Delaware River National Recreation Area 248

8. Viewshed 267

9. Tourism 270

10. Construction issues 272

11. Project Costs and Rate Recovery 273

12. Other Economic Impacts of the Proposed Line 278

D. Eminent Domain 279

E. Zoning Exemption 283

IV. SUMMARY AND RECOMMENDATION 286

V. CONCLUSIONS OF LAW 288

VI. ORDER 295

Appendix A Glossary of Acronyms


CONTENTS OF EVIDENTIARY RECORD

Transcripts

March 6, 2009 Prehearing Conference

pp. 1-64

March 20, 2009 Public Input Hearing

pp. 65-227

Witnesses:

Senator Lisa Baker

Jim Ashton

Louis Birenca

Hal Brister

Joseph Carnevale

Michael Collins

Thomas Dedea

Peter Derrenbacher

Annie Devito

Harry Forbes

Robert Harter

William A. Hopkins

Christopher Irwin-Dudek

Paul Irwin-Dudek

Martha Jimenez

Jordan Lewis

Robert Long

David Martin

Albert McQueen

Paul Menditto

Joseph Meehan

William Murray

William Nagy

Deborah Nordeen

Rocco Pannozzo

Laura Piraino

John Sivick

Thomas Soden, Jr.

Elizabeth Spinelli

David Stagg

Heather Turner

James Turner

March 20, 2009 Public Input Hearing

pp. 228-355

Witnesses:

Representative John J. Siptroth

Thomas Buneo

Ed Burmeister

Martha Carbone

Michael Carbonella

Sandra Cheatham

Thomas Corrente

Eda Dalfol

Patricia Foster

D. Scott Haan

Mary Ellen Higgins

Alberta Murphy

Rene Ouimet

Anthony Provenzano

Ruthann Rocchio

Cheryl Rodriguez

Sheryl Rosen

Paula Schwartzman

Annette Seeley

Ed Schmieheiser

Zondra Spence

Cindy Tagliaferri

May 5, 2009 Site View – Delaware Water Gap National Recreation Area

pp. 521- 437

Witnesses:

Brinnen Carter, Cultural Resource Manager

Patrick Lynch, Chief of Resource Management and Science

John Donahue, Superintendent of DEWA

Jeffrey Shriner, Biologist, DEWA

Allen Ambler, Biologist, DEWA

Arthur North, River District Ranger

May 6, 2009 Site View – Saw Creek Estates

pp. 438-520

Witnesses:

Peter Derrenbacher

Christopher Irwin-Dudak

Bob Harter

William Hopkins

Robert and Robyn Long


David Martin

Rocco Pannozzo

Al Spinelli

Site View Photographs

May 21, 2009 Public Input Hearing

pp. 521-648

Witnesses:

David Blauer

Bonnie Bohr

Jason Bonner

David Byman

Joseph Clifford

Philip Cozzi

Peter Cupple

Scott Hahn

Douglas Heller

Lee Jamison

Clayton LaCoe

Bernard McGurl

John and Janet Melnick

Frank Muraca

Joseph Simon

Ted Warren

Art Wilson

July 2, 2009 Public Input Hearing

pp. 650-770

Witnesses:

Dorothy Bosley

Kayleigh Cornell

Peter Derrenbacher

Frank Finan

James Fitzpatrick

Douglas Heller

Nancy Jackman

Lee Jameson

David Kveragas

John LoRusso

Kate McAndrew

Linda McAndrew

Martha McAndrew

Tim McCabe

Frank Muraca

Anthony Provenzano

Denise Prowell

Marie Schumacker

Albert Spinelli

Jay Sweeney

September 1, 2009 Evidentiary Hearing

pp. 771-1002

Witnesses:

Gregory J. Smith PPL Stmts. 1, 1-R, 1-RJ, Exh. GJS 1 & 2

Peter Sparhawk PPL Stmts. 3, 3-R, 3-RJ, Exh. PS-1-3

Kenneth Kuhns PPL Stmts. 2, 13 and Exh. KBK-1

September 2, 2009 Evidentiary Hearing

pp. 1003-1217

Witnesses:

Patrick J. McMackin PPL PPL Stmts. 6, Exh. PM-1-4

Jonathan E. Busby PPL PPL Stmts. 22-R, Exh. JEB-1

James Hogan PPL PPL Stmts. 19-R, Exh. JMH-1

Jay A. Keeler PPL PPL Stmts. 5, 5-R, Exh. JAK-1-5

David Carpenter SCECA SCECA Stmts. 2, 2-R, Exh. DOC1-3, Appendix DOC-1

David W. Fugate SCECA SCECA Stmts. 1, R-1, Attachment

DWF-1and 2, Appendix DWF-1

Mark Israel PPL PPL Stmts. 15-R

Nancy Lee PPL PPL Stmts. 16-R

Michael Silva PPL PPL Stmts. 14-R, Exh. JMS-1 and 2

September 4, 2009 Evidentiary Hearing

pp. 1218-1259

Witness:

Douglass A. Krall PPL PPL Stmt. 18-R

September 8, 2009 Evidentiary Hearing

pp. 1260-1495

Witness:

Steven R. Herling PPL

September 9, 2009 Evidentiary Hearing

pp. 1496-1746

Witnesses:

Steven R. Herling PPL PPL Stmts. 7, 7-R, 7-RJ

Jeffrey Tranen PPL PPL Stmts. 17-R

Paul F. McGlynn PPL PPL Stmts. 8, 8-R, Exh. PFM 1-3

John M. Reynolds PPL PPL Stmts. 9, Exh. JMR-1-4

Steven A. Olinick PPL PPL Stmts. 4, 12 and Sections 4 and 7 of PPL Electric Exh. 1

September 10, 2009 Evidentiary Hearing

pp. 1747-1984

Witnesses:

Stephen A. Olinick PPL

Robert M. Fagan OCA OCA Stmts. 2, 2-S, Exh. RMF-1

Peter J. Lanzalotta OCA OCA Stmts. 1, 1-S, Exh. PJL 1-4

Gary Yocca OTS OTS Stmts. 1, 1-SR, Exh. 1-SR

Mark F. Bates PPL PPL Stmts. 20-R, Exh. MFB-1-3

David R. Dominy PPL PPL Stmts. 21-R, Exh. DRD-1

Robert Farley PPL PPL Stmts. 10, 14, 17, 18, 20, 21, 1-RJ,

Exh. 3, 8-12, 18-22, 23-27, 33-37

And 37-38

Andy Haakenson SCECA SCECA Stmts. 3 and R-3

Joseph Kleha PPL PPL Stmts. 11 and 11-R

Cross Exhibits

Sponsoring Party Sponsoring Witness Exhibit Numbers Date Admitted

PPL Electric Carpenter Cross Exhibit 6 9/02/09

Fugate Cross Exhibit 7 9/02/09

Lanzalotta Cross Exhibit 8 9/10/09

Haakenson Cross Exhibit 9 9/10/09

Haakenson Cross Exhibit 10 9/10/09

OCA Smith Cross Exhibits 1-7 9/01/09

Herling Cross Exhibits 11-17 9/08/09

ECC Smith Cross Exhibits 1-12 9/01/09

Herling Cross Exhibits 13-21 9/08/09

Cross Exhibits 22-26 9/09/09

McGlynn Cross Exhibits 27-36 9/09/09

SCECA Smith Cross Exhibits 1-2 9/01/09

Sparhawk Cross Exhibits 3 0/01/09

I. HISTORY OF THE PROCEEDINGS

On January 6, 2009, PPL Electric Utilities Corporation (PPL Electric or Company) filed its Application for authorization to construct a new 500 kV transmission line approximately 101 miles in length through portions of Lackawanna, Luzerne, Monroe, Pike and Wayne Counties. In conjunction with this Application, PPL Electric Utilities Corporation is requesting authorization to construct a new substation in Blakely Borough, Lackawanna County, to connect the 500 kV line to the regional transmission system in that area. These filings were consolidated for the purposes of discovery, litigation and decision by Order issued January 12, 2009.

On January 28, 2009, PPL Electric filed thirteen applications for a determination that the proposed exercise of eminent domain over specific properties is necessary or proper for the service, accommodation, convenience or safety of the public. Commission regulations provide that associated eminent domain proceedings are entitled to consolidation with the application for high voltage (HV) line siting, and by Order issued February 6, 2009, they were consolidated. 52 Pa. Code § 57.75.

Notice of the applications was published in the Pa. Bulletin on January 17, 2009, 29 Pa.B. 3901. In accordance with Commission regulations, 52 Pa. Code § 57.75(a), notice of the prehearing conference was published by the Company in the Press Enterprise, the Carbondale News/The Villager, The Abington Journal, the News Eagle, The Wayne Independent, Suburban News, Country Impressions, Inc., Pike County Dispatch, The Times-Tribune, The Pocono Record, The Citizens Voice, The Times Leader, and Mountaintop Eagle, all beginning at least 45 days prior to the prehearing conference on March 6, 2009.

On January 26, 2009, PPL Electric served the parties and the presiding officer with its direct testimony, which consisted of statements from 13 witnesses: Gregory J. Smith (PPL Stmt. 1), Kenneth B. Kuhns (PPL Stmt. 2), Peter Sparhawk (PPL Stmt. 3), Steven Olinick (PPL Stmt. 4); Jay A. Keeler (PPL Stmt. 5, Exh. JAK-1 through JAK-5); Patrick J. McMackin (PPL Stmt. 6, Exh. PM-1 through PM-4), Steven R. Herling (PPL Stmt.7), Paul F. McGlynn (PPL Stmt. 8, Exh. PFM-1), John M. Reynolds (PPL Stmt. 9, Exh. JMR-1 through JMR-4), Robert J. Farley (PPL Stmt. 10) Joseph M. Kleha (PPL Stmt. 11, Appendix A), Steven Olinick (PPL Stmt. 12), and Kenneth B. Kuhns (PPL Stmt. 13). The Revised Direct Testimony of Peter Sparhawk (PPL Stmt. 3) was served February 2, 2009.

Pursuant to a request from the Office of Consumer Advocate (OCA) and a letter from Representative John J. Siptroth, 189th Legislative District, to the Commission’s Director of Legislative Affairs, as well as inquiries from Senator Lisa Baker, two public input hearings were scheduled for March 20, 2009, in the Saw Creek Estates. By Order issued February 25, 2009, the Company was directed to arrange for publication of advertisements in two newspapers of general circulation once per week for two consecutive weeks prior to the date of the public input hearing.

Notices of appearance were filed by the OCA and the Commission’s Office of Trial Staff. Petitions to intervene were filed by the Winona Lake Property Owners Association, UGI Utilities, Inc. (UGI), Pennsylvania American Water Company (PAWC), Exelon Generation (Exelon), the PP&L Industrial Customer Alliance (PPLICA), and attorney Donna Davis. These are granted without objection. Protests were filed by the Energy Conservation Council (ECC), the Saw Creek Estates Community Association (SCECA) and various individuals.

Prehearing memoranda were not required but were appreciated by the presiding officer after being filed by PPL Electric, OCA, OTS, UGI, Exelon, PPLICA, and the ECC.

On March 10, 2009, PPL Electric filed Supplemental Direct Testimony of Peter Sparhawk and Exhibit PS-1, which describes a minor rerouting of approximately three miles of the proposed transmission line in Archbald Borough and Jefferson Township, Lackawanna County.

The prehearing conference was held as scheduled on March 6, 2009. PPL Electric was represented by David B. MacGregor, Esq., Paul E. Russell, Esq., John H. Isom, Esq., Andrew S. Tubbs, Esq., and Christopher T. Wright, Esq.; OTS was represented by CharlesDaniel Shields, Esq.; OCA was represented by Dianne E. Dusman, Esq., and Darryl Lawrence, Esq.; ECC was represented by Edmund J. Berger, Esq., and Wil Burns, Esq.; SCECA was represented by Paul M. Schmidt, Esq.; PPLICA was represented by Shelby A. Linton-Keddie, Esq.; UGI was represented by Kent D. Murphy, Esq.; Exelon was represented by Denise Foster, Esq.; PAWC was represented by Susan Simms Marsh, Esq. No individual protestant attended the prehearing conference.

Following the prehearing conference, a scheduling order (Fourth Prehearing Order) was issued on March 10, 2009, as well as an Initial Decision dismissing those protests which did not contain a name, address and reason for the protest.

The Fifth Prehearing Order directed SCECA to provide a copy of its membership list to the presiding officer on or before March 11, 2009. The list was not made part of the record.

On March 10, 2009, PPL Electric filed Supplemental Direct Testimony of Peter Sparhawk and Exhibit PS-1, which describes a rerouting of approximately three miles of the proposed transmission line in Archbald Borough and Jefferson Township, Lackawanna County.

On March 12, 2009, PPL Electric filed a Petition for Leave to Withdraw the Application to Exercise the Power of Eminent Domain to Acquire an Easement and Right-of-Way Across the Property of Max Bohleman, A-2009-2088331. The Petition was not opposed and was granted by Order dated April 14, 2009 (Seventh Prehearing Order). That Order also granted the withdrawal of the Winona Lakes Property Owners Association.

In the Sixth Prehearing Order, issued March 16, 2009, PPL Electric was directed to file an Amendment to the Application which reflects the rerouting described in the Supplemental Direct Testimony filed on March 10, 2009. The Company complied with this Order by Amendment filed April 2, 2009. By the terms of this Order, only those directly affected by the reroute had permission to file a responsive pleading, and the amendment would not restart the governing twelve-month clock.

On March 19, 2009, the Applicant filed a Motion to Strike the Protest of the Energy Conservation Council. The ECC filed its Answer on April 8, 2009. This Motion was granted, and the ECC filed its Amended Protest on May 4, 2009.

Two public input hearings were held as scheduled on March 20, 2009, in the Saw Creek Estates area. Proof of publication was filed on June 29, 2009.

By Initial Decision dated April 16, 2009, the late-filed Petition to Intervene of Lehman Township was denied, and the late-filed Protest of the Lackawanna River Corridor Association and the Lackawanna Valley Conservancy was dismissed. At the public meeting held on May 28, 2009, by order entered June 12, 2009, the Commission reversed the dismissal of the protest filed by the Lackawanna River Corridor Association and the Lackawanna Valley Conservancy based on concern regarding adequate of notice of the proceeding. A review of the Company’s service list indicates that the Lackawanna River Corridor Association had received personal service of the Application itself.