1.0 PROJECT OVERVIEW

2660/EFSB Petition/1.0-ProjectOverview.doc Project Overview Epsilon Associates, Inc.

1.0 PROJECT OVERVIEW

1.1 Introduction/Siting Board Jurisdiction

NSTAR Electric Company (“NSTAR Electric” or the “Company”) hereby petitions the Energy Facilities Siting Board (the “Siting Board”) to construct improvements to its transmission system in Southeastern Massachusetts including 18 miles of new overhead transmission line at a nominal operating voltage of 345,000 volts or 345 kilovolts (“kV”), separation of an existing double-circuit 345 kV transmission line crossing of the Cape Cod Canal onto separate sets of structures, construction of a new 345 kV to 115 kV substation, and other ancillary station improvements (the “Project”). This Project is the long-term transmission system upgrade that was part of the May 2007 Settlement Agreement between the Department of Public Utilities (the “Department”), ISO New England (“ISO-NE”), NSTAR and other parties.

As proposed, the new line will be approximately 18 miles in length with a point of origin at an existing 345 kV substation located in Carver, MA (“Carver Substation”). Heading generally southeasterly from Carver, the new 345 kV line will be built within existing NSTAR transmission rights of way. The new line will cross the Cape Cod Canal and will tie into an existing line (Line #120) in the vicinity of the Bourne Switching Station. As part of this Project, an existing double-circuit 345 kV transmission line crossing of the Cape Cod Canal will be separated into two individual crossings.

Line #120 was originally designed and built for 345 kV service but has historically operated at 115,000 volts (115 kV). As part of this Project, NSTAR is seeking approval to operate the approximately 12.8-mile stretch of Line #120 between Bourne and West Barnstable at its design voltage of 345 kV. No physical changes to the line will be made.1 The relicensed line will terminate at a new 345 kV to 115 kV substation to be located on NSTAR-owned property in Barnstable, MA. In addition to the proposed substation in Barnstable, other ancillary station work includes improvements to the Carver substation, improvements to the State Forest Transition Station, construction of a new crossover station along the proposed route just north of the Plymouth/Bourne town boundary, and improvements to the Bourne substation.

A locus map showing all elements of the proposed Project is provided as Figure 1-1.

Construction of the Project will serve the public interest by increasing the reliability and efficiency of the regional electric transmission system serving Cape Cod, thus improving service and reducing costs to customers.

1 Additional background regarding the original licensing and construction of Line #120 is provided in Section 1.5 below.

The Company is filing this Petition to construct the Project in accordance with G.L. c. 164, § 69H, which requires the Siting Board to implement the energy policies in its statute to provide a reliable energy supply for the Commonwealth with a minimum impact on the environment at the lowest possible cost, and pursuant to G.L. c. 164, § 69J, which requires a project applicant to obtain Siting Board approval for the construction of proposed energy facilities before a construction permit may be issued by another state agency. As a new electric transmission line with a design voltage of 115 kV or greater and a length in excess of ten miles, the Company’s Project falls within the definition of “facility” set forth in G.L. c. 164, § 69G, which provides that a “facility” includes: “a new electric transmission line having a design rating of 115 kilovolts or more which is 10 miles or more in length on an existing transmission corridor….”

In accordance with G.L. c. 164, § 69J, before approving a petition to construct facilities, the Siting Board requires an applicant to justify its proposal in three phases. First, the Siting Board requires the application to show that additional energy resources are needed (see Section 2.0, below). Second, the Siting Board requires the applicant to establish that, on balance, its proposed project is superior to alternative approaches in terms of its ability to satisfy the identified need, cost and environmental impact (see Section 3.0, below). Third, the Siting Board requires the applicant to show that it has considered a reasonable range of practical facility routing alternatives and that the proposed route for the facility is superior to a noticed alternative site in terms of reliability, cost and environmental impacts. As demonstrated throughout this Petition, the Project is consistent with and satisfies the Siting Board’s standards and relevant precedent for jurisdictional facilities.

1.2 Existing Transmission System in Lower SEMA

In this case, NSTAR Electric is proposing a 345 kV transmission project to alleviate existing and projected transmission-capacity overloads identified within a sub-area of the Lower Southeastern Massachusetts (SEMA) load center, which is referred to as the “Tremont East area” or “Tremont East.” As shown on Figure 1-2, the Lower SEMA load center is located in the southern portion of NSTAR Electric’s system. Lower SEMA encompasses southern Bristol County, much of Plymouth County, and Cape Cod and the Islands. The Tremont East area is that portion of lower SEMA that lies to the east of the Tremont substation. Tremont East encompasses the southern portion of Plymouth County and all of Cape Cod, Martha’s Vineyard and Nantucket. From 2010 onward, the peak electric load to be served by Lower SEMA transmission resources is expected to be in excess of 1,047 MW; the corresponding load in Tremont East is expected to be in excess of 601 MW.

Currently, Tremont East is served by two 345 kV transmission lines (Lines #322 and #342) and two 115 kV transmission lines (Lines #113 and #108). The two 345 kV circuits were built in the 1968 and 1971, respectively, to provide a transmission outlet for the Pilgrim Nuclear Generating Station and the Canal Generating Station. The two 115 kV circuits from Tremont east onto the Cape were built in 1960 and 1967, respectively.



When needed, additional power can be provided by the Canal #1 and #2 generating units. Mirant’s 1,100 MW Canal Station is a conventional steam-cycle generating plant utilizing once-through cooling. Canal 1 was originally placed in service in 1968 and fires residual fuel oil. Canal 2 was placed into service in 1976 and fires residual fuel oil or natural gas (when available).

As fully discussed in Section 2 of this petition, the 2010 peak-period Tremont East load is expected to exceed firm transmission capacity by up to 140 MW on approximately 40 days of the year. By 2013, the peak-period Tremont East load is forecast to exceed firm transmission capacity by up to 170 MW on approximately 50 days of the year. Without the Project in place, overloads would occur on the two 115 kV lines serving Tremont East under contingency conditions.2 As the load level in Lower SEMA approaches 1,100 MW, the contingency conditions would result in a voltage collapse (i.e., blackout conditions) within the Tremont East area. The installation of a third 345 kV circuit from an interconnection point at the Carver Substation (or the Pilgrim Station) would address these reliability deficiencies by increasing import capacity to the Tremont East area to a level sufficient to prevent overloads or voltage collapse during criteria-level contingencies.

1.3 Project Background and Need

As described in Section 1.2, NSTAR transmission contingency planning must address the potential simultaneous loss of the two most significant transmission elements (i.e., the loss of both 345 kV transmission lines to the Cape). With no other power source available, the result would be an immediate voltage collapse and blackout of the Cape, possibly extending off-Cape into Lower SEMA.

Such an event did occur in December of 2003. One of the 345 kV lines was out for scheduled maintenance activities. A Canal unit was operating, but tripped, leading to the loss of the second 345 kV line. The result was a blackout on the Cape; the outage extended into the Plymouth and New Bedford areas as well.

Beginning in January of 2006, NSTAR’s Lower SEMA electric customers were assessed the “uplift charges” resulting from running one 550 MW Canal unit out of merit on a 24/7 basis. Unfortunately, oil prices began a steep increase in late 2006, peaking at approximately $140/barrel in the spring of 2008. Owing primarily to the escalation in fuel prices, the uplift charges borne by NSTAR customers rose from ~$80 Million in 2006 to more than $140 Million in 2008. From 2006 to 2008, the cumulative uplift charges borne by customers in the Lower SEMA area were $316 million.3

2 Contingency conditions prescribed by the NPCC and NEPOOL/ISO-NE criteria; i.e., loss of two 345 kV lines, Canal not operating.

3 As discussed in Section 2 herein, although the level of uplift charges has moderated in 2009 and 2010 because of the economic downturn, reduced load and lower fuel prices, this situation is not expected to persist in the long term.


Responding to the resulting customer concerns, the Federal Energy Regulatory Commission (“FERC”) directed NSTAR, National Grid and other stakeholders to undertake a settlement process. A settlement agreement was subsequently entered into by NSTAR, National Grid, the Department, ISO-NE and other stakeholders. As filed with FERC, the May 2007 agreement committed NSTAR, National Grid and ISO-NE to develop and evaluate short-term improvements and long-term improvements to the Lower SEMA area transmission system.4

The short-term measures were aimed at incremental improvements in reliability and corresponding reductions in uplift charges to customers. NSTAR completed three short-term improvements in 2008-2009. The three measures were:

1) a significant expansion of the Carver substation that included looping 345 kV Line #355 (Pilgrim Station to Bridgewater) into Carver plus the addition of a second 115 kV circuit from Carver to the Tremont Substation,

2) an expansion of the Brook Street substation in the Town of Plympton together with a new 115 kV transmission line from Brook Street Station to Auburn Station in Whitman (Line #194) and,

3) the addition of a state-of-the-art voltage compensation system at the Barnstable Substation in Hyannis.

The new 8.2-mile 115 kV circuit from Carver to Tremont (Line #134) was added to the available position on an existing double-circuit monopole tower line (Line #127, R/W #240). 5

To create Line #194, the Company energized an existing spare set of conductors on a double-circuit tower line between National Grid’s Auburn Street substation in the Town of Whitman and the Company’s Brook Street switching station in the Town of Plympton.6 The line distance from the Auburn Street station to the Brook Street station is approximately 16.7 miles; the line crosses parts of the Towns of Whitman, East Bridgewater, Hanson, Halifax, and Plympton.7 To support this measure, 115 kV line terminations were added at the Auburn Street station and five new circuit breakers were installed at the Brook Street station.

4 “Settlement of Dispute Over SEMA Charges”, Docket No. ER07-921-000; submittal to FERC by ISO New England, Mr. Raymond W. Hepper, Vice President and General Counsel, May 18, 2007.

5 This addition of a set of conductors to the existing double-circuit pole line was reviewed by Department (Section 72), the MEPA Office and the appropriate Town Conservation Commissions. The new circuit was completed in 2009.

6 The existing circuit from Whitman to Plympton operates at 345 kV (Line # 342 on R/W #16). The spare circuit was energized at 115 kV.

7 The work at the Brook St station and the necessary tap to the newly energized Line #194 was reviewed by the Department (D.T.E./D.P.U. 07-9/07-10).


The short-term upgrades had limited licensing and permitting requirements and thus could be completed relatively quickly. The substation upgrades increased system capability to transmit power to Lower SEMA and improved supply redundancy. The new fast-acting voltage compensation system stabilizes the Cape system voltages in the event of a loss of both existing 345 kV lines. This system was targeted to be effective at load levels of at least 70% of the thermal capability of the transmission system.

The short-term improvements have been effective, typically exceeding target. With the benefit of a cool summer and lower fuel prices, uplift charges dropped to ~$15 million in 2009. While the short-term improvements are effective, exposure to uplift charges remains for summer peak load conditions. This exposure will increase as load continues to grow over time. Under these conditions, demand can exceed the firm transmission supply capability, thus requiring out-of-merit dispatch of a Canal unit or accepting the risk of selected customer load shedding. Therefore, additional system support is needed to address these issues during periods of heavy-to-peak electrical load.

The May 2007 settlement agreement committed NSTAR and ISO-NE to develop and implement an appropriate long-term system improvement, one that would bring the Lower SEMA/Tremont East transmission system into full compliance with the applicable NERC, NPCC and ISO-NE reliability standards and that would eliminate future uplift charges resulting from out-of-merit operation of the Canal plant. In this respect, ISO-NE filed a report with the FERC in January 2009. The need for this long-term improvement project, from both a reliability and economic perspective, is analyzed in Section 2 of the Petition. Alternative project approaches are analyzed in Section 3 of the Petition and are summarized in Section 1.4 below.

1.4 Long -Term Project Alternatives

Section 3 of the Petition, Project Alternatives, describes analyses undertaken by NSTAR to identify and evaluate alternative means of accomplishing the Project objectives. These included demand-side resources, new generation, and a wide variety of transmission options. Significant elements of this analysis were prepared and presented to ISO-NE’s Planning Advisory Committee in 2009. Additional analyses were undertaken in preparation for the submittal of this Petition.8 From a cost, environmental, reliability and constructability perspective, the Project Alternatives analysis confirms that construction of a new 345 kV transmission line to supply the Tremont East area is the preferred approach to eliminate transmission overloads during heavy load periods and under contingency conditions.

8 Including a review of the parallel analysis conducted by ISO-NE, the results of which were posted in August 2010 as the Lower Southeastern Massachusetts (LSM) Long-Term Solutions Report (CEII).


More specifically, in the early stages of the Project, NSTAR, in combination with National Grid and ISO-NE, identified a wide range of project alternatives for initial consideration. These alternatives ranged from a do-nothing scenario (the “no build” case) to Demand Response to more traditional quick-start generation and transmission solutions. As a threshold evaluation, the ability of a given alternative to meet the identified project need was evaluated. More specifically, project alternatives were evaluated with respect to their ability to provide sufficient firm transmission to the Tremont East sub area of Lower SEMA, in accordance with reliability standards and criteria developed by the Northeast Power Coordinating Council, the New England Power Pool and the New England Independent System Operator. As discussed in Section 2, firm transmission into Tremont East is currently about 140 MW below the load levels experienced on heavy demand days. This firm transmission shortfall is expected to increase to approximately 170 MW by 2013. As also discussed in Section 2, this shortfall in firm transmission during heavy load periods is currently met by running a 550 MW Canal unit on an out-of-merit basis.

In making this threshold evaluation, it was clear that some alternatives did not realistically meet the identified need. For example, the “no build” scenario did nothing to increase firm transmission or to reduce load by a sufficient amount such that additional firm transmission would not be required. Similarly, while NSTAR is supportive of demand response (DR) and is investing heavily into cost-effective energy efficiency, achievable levels of demand response are not sufficient to obviate the need for additional firm transmission in the relevant area.

As discussed in Section 3.4, there are a number of project alternatives that could meet the identified need, albeit at widely varying costs and with differing levels of environmental impacts. These alternatives include on-Cape quick-start generation, four overhead 345 kV transmission alternatives, a 115 kV overhead transmission alternative, and a 345 kV submarine cable alternative (Pilgrim to Canal). An eighth alternative, 30-minute demand response, while considered to be essentially infeasible at the required scale, is included in the Section 3 comparison as well.

The estimated capital costs for the project alternatives range from ~$110 million to more than $350 million. By a substantial margin, the lowest cost alternative is the proposed Carver/Bourne/Barnstable 345 kV transmission project (~$110 million). The Carver to Bourne 345 kV transmission project is in the lower end of the cost spectrum with an estimated cost of ~$140 million. The alternatives that originate at Brayton Point9 are more

9 As discussed in Section 3 of the Petition, the Company later examined a variation of the Brayton Point to Bourne alternative. The variation connects to Line 120 at Bourne, relicenses a portion of Line 120 for operation at 345 kV and terminates at a new terminal substation in West Barnstable.

expensive (~$155 to 163 million), as is the 115 kV alternative (~$170 million). Alternatives at the upper end of the cost spectrum include demand response (~$266 million); a submarine cable from Pilgrim (~$348 million) and on-Cape generation (~$365 million).

With respect to potential environmental impacts, the transmission alternatives should have limited impacts in that they are all located in existing active rights of way. This assumes that the lines are constructed using effective environmental mitigation measures as is the Company’s normal practice. There is, however, a significant variation in line length and thus work area required. The Carver to Bourne and Carver to Bourne to West Barnstable 345 kV alternatives are at the low end of the spectrum while the Brayton Point/Bourne 345 kV and the 115 kV alternatives are 80 to 100% longer (on a circuit-mile basis).

The submarine cable alternative is similar in length to the Carver to Bourne and Carver to Bourne to West Barnstable alternatives, has similar work area requirements (albeit, sea bottom), but is not cost competitive. The demand response alternative, while considered to be essentially infeasible at the required scale, has no environmental impacts and would provide an environmental benefit in the form of avoided emissions. The on-Cape generation solution would have some limited construction and operational impacts in the host community, but is not cost competitive. The Planning and Advisory Committee of ISO-New England in 2008 and again in 2010 provided opportunities for generation owners to propose generation alternatives to meet the need defined by the ISO. No alternative proposals were made; consequently, NSTAR estimated the cost of a quick-start generation alternative.

The Carver to West Barnstable 345 kV alternative has the lowest estimated cost ($110 million), limited potential environmental impacts, and brings a 345 kV supply to the center of the Cape, improving the reliability and efficiency of supply to the area. Accordingly, this alternative is selected as the Proposed Project and is the subject of further analysis as summarized below and presented in Petition, Sections 4 and 5.

1.5 Proposed Project, Preferred Route and Noticed Alternative

Building on the project alternatives analysis summarized in Section 1.4 and described in detail in Section 3 of the Petition, the Company undertook a comprehensive routing analysis for a new 345 kV transmission line originating at either Carver or Pilgrim. Potential routes for the new 345 kV circuit reach a common point near Bournedale Road, then cross the Cape Cod Aggregates pit and the Cape Cod Canal. The new line reaches an end point at the existing Bourne Station, where it would be cut into NSTAR Line #120. From Bourne, Line #120 extends easterly across the Cape to a terminus at the existing Barnstable Switching Station. The 12.8-mile run of Line #120 from Bourne to a point ~1/3 mile south of the Oak Street Substation was originally designed and built for 345 kV service but has



historically operated at 115 kV.10 As part of the proposed Project, NSTAR is seeking approval to operate the 345 kV capable segment of Line #120 at its design voltage. A new 345 to 115 kV terminal substation with transformation would be constructed at or near the end of the 345 kV capable segment of Line #120. This proposal would bring a strong 345 kV source to the heart of the Cape and would also help reduce system losses associated with supplying area load.

For some perspective on system loss reduction, the Company conducted a load analysis that compared the proposed terminal substation location in West Barnstable with an earlier concept (345 kV Line #120 terminated at the Sandwich substation). The extension of the 345 kV line to West Barnstable results in a loss savings of ~1.74 MW at peak load. The corresponding loss savings on an average annual basis would be ~0.7 MW. Assuming a typical wholesale power cost of $50/Mwhr, this translates to a savings of more than $300,000 per year. From an environmental perspective, this efficiency results in the avoidance of ~2,956 tons per year of CO2 (based on 2008 ISO-NE marginal CO2 emission rate of 964 lbs CO2/MWhr).

As described in Section 4 of the Petition, the Company completed a thorough and objective evaluation of potential routes for the Carver/Pilgrim to Bournedale Road segment of the Project. This portion of the Project is referred to as Segment 1. Figure 1-3 illustrates the alternative routes and route variations which were identified and considered.

After an initial evaluation of possible routes and route variation, a more detailed quantitative analysis was conducted for the three most promising routes (“Candidate Routes”). Two of the routes originated at the Carver Station, the third at the Pilgrim Station. All three routes are based on existing NSTAR rights of way; the routes are shown on Figure 1-4. The quantitative analysis presented in Section 4.3.8 considered a range of natural and human environmental factors, line construction costs, and reliability. The analysis clearly supported the selection of the “Northern Route” (Carver to State Forest to Bournedale Rd) as the Preferred Route and the Southern Route (Carver to Tremont to Bournedale Rd as the Noticed Alternative. Figure 1-5 locates the Preferred Route and the Noticed Alternative on a USGS topographical base map. A more complete description of the Preferred Route and the Noticed Alternative is presented later in this section.

An analysis was also made of alternative means to cross the Cape Cod Canal; this element of the Project is referred to as Segment 2. Lastly, an analysis was made of two alternative locations for the terminal substation in West Barnstable. This element of the Project is referred to as Segment 3. As noted above, the line segment from Bourne Station to the terminal substation in West Barnstable does not require any new physical construction.

10 The balance of Line #120 easterly to the Barnstable Switching Station (~3.4 miles) was built for 115 kV operation and will continue in that mode.

Carver Substation

As described in Section 4.3.2, some work at Carver Substation will be required for either the Preferred Route or the Noticed Alternative. The Carver Substation is a 345 kV/115kV substation located on a 13.3-acre site on NSTAR-owned property in the Town of Carver at the intersection of several 345 kV and 115 kV transmission lines. The station includes two 345 kV to 115 kV transformers, 345 kV and 115 kV circuit breakers, 345 kV and 115 kV bus work, a control enclosure and other appurtenant facilities. The substation equipment is enclosed by a security fence; the station is accessed via a dedicated gravel road from Main Street/Route 58 in Carver.

Using the Carver Substation as the origination point for the proposed 345 kV line would require the installation of new equipment including a new 345kV circuit breaker position. An existing 345kV circuit termination would be relocated to this position and the new 345kV circuit installed and terminated at the vacated position. This work will be done on property currently owned by the Company.

Preferred Route/Northern Route

The Northern Route runs for 16.6 miles along existing transmission ROWs from Carver Substation to Bournedale Road. Existing easements allow for the construction of the new 345 kV facility; no new property rights are needed.

The first 7.2 miles of the Northern Route are on ROW #280 from Carver Substation to the State Forest Transition Site. This ROW is 300-feet wide, currently cleared to a width of between 190 and 210 feet. It currently accommodates two existing 345 kV lines. The first, Line #322, is carried on wooden H-frame structures and the second, Line #355, is carried on steel lattice towers. Figure 1-6 shows both the existing lines and the proposed location of the new 345 kV line, a vertical monopole configuration constructed on the northern side of the ROW.

Within the State Forest Transition Station, 345kV Line #355 extends through the site and on to Pilgrim, while Line #342 realigns and heads south towards Cape Cod. The 9.3 miles of the Northern Route from the State Forest Transition Site to Bournedale Road use ROW #180. This ROW is 330-feet wide and is, currently cleared to a width of between 210 and 230 feet. Like the #280 Carver to State Forest ROW, the #180 ROW currently accommodates two existing 345 kV lines. Line #322 continues south from State Forest Transition Site on wooden H-frame structures; Line #342 is carried on steel lattice towers. Figure 1-7 shows both the existing lines and the proposed location of the new 345 kV line, a delta monopole on the eastern side of the right of way.

Near the end of this leg of the 345 kV line, a new transition station will be required. The purpose of this transition structure will be to properly align the two existing circuits and the new circuit for the Canal crossing and Line #120 cut in at the Bourne Switching Station.


More specifically, the new circuit must cross the two existing circuits. This will be accomplished using a rigid bus crossover (similar to the State Forest Transition facility) to be constructed on an NSTAR-owned parcel near the Plymouth/Bourne town line. A schematic of the planned 2.75-acre crossover facility is provided as Figure 1-8.

The 300/330 ft wide ROWs of the Northern Route encompass a total area of approximately 638 acres. Topography is nearly level to rolling and varies from approximately 50 feet to 230 feet above mean sea level (“amsl”). Cleared upland areas within the active area of the ROW are typical of a maintained ROW, consisting of a mosaic of grasslands and scrub-shrub areas. These areas are managed through NSTAR’s Vegetation Management Plan (“VMP”). VMP activities encourage the growth of herbaceous and low-growing woody vegetation. Upland plant communities are interspersed with mainly barren areas of exposed soils, unpaved access roads and trails, cranberry bogs and wetland areas. Approximately 9% of the ROW consists of wetlands (55.7 acres) and commercially farmed cranberry bogs (3.2 acres).

At the edges of the maintained portion of the ROW, there is often an abrupt transition from open, low-growing plant communities to forested areas of mature trees. Land use within areas abutting the ROW is predominantly undeveloped woodland, but also includes wetlands, cranberry bogs and residential areas. There are approximately 180 residences located within 300 feet of the ROW. The most significant residential development immediate to the ROW is in the vicinity of Lunn’s Way in Plymouth. The Northern Route traverses approximately 6.1 miles of public lands, most notably 5.2 miles through the Myles Standish State Forest, and 1.4 miles of other (private) conservation or recreation lands.

Access to the ROW is from a number of paved public roads and unpaved private roads. Access within the ROW is provided by an unpaved access road running the length of the ROW. This access road is generally located between the tower lines.

Noticed Alternative/Southern Route

The Southern Route runs for 18 miles along existing transmission ROWs from Carver Substation to Bournedale Road. Existing easements allow for the construction of the new 345 kV facility; no new property rights are needed.

The first 8.2 miles of the Southern Route uses ROW #240 from Carver Substation to the Tremont Substation. For the first 5.8 miles from the Carver Substation, the ROW #240 is 150 feet wide, currently cleared to a width of 110 to 130 feet. As shown on Figure 1-9, the ROW presently accommodates two 115 kV lines; Line #127 and Line #134 are carried on a double-circuit steel monopole line.

At a point approximately 5.8 miles south of Carver Substation, and continuing for approximately 1.7 miles, the NSTAR ROW narrows to 100 feet, but is immediately adjacent to a 60 foot-wide Middleborough Electric ROW. The Middleborough ROW is presently


occupied by a local distribution line supported on wood poles. The final 0.7-mile segment before reaching the Tremont Station, is 205 feet in combined width. It consists of two parallel NSTAR ROWs, each of which accommodate two 115 kV circuits (Lines #127 and #134 on double-circuit monopoles in ROW #240 and Line #112 and #114 on H-frames in ROW #140).

Were the proposed 345 kV line to be constructed on the Southern Route, the line design for the Carver to Tremont segment would be vertical monopoles on the western side of the ROW.

The Noticed Alternative/Southern Route continues east from the Tremont Substation, running for 9.8 miles on existing rights of way to Bournedale Rd. The existing ROW varies in width from 170 to 205 feet. It is occupied by two 115 kV lines on wood H-frames. In addition, there are existing distribution lines along portions of this ROW.

Were the proposed 345 kV to be constructed on the Southern Route, the new line would typically be on vertical monopoles. The existing distribution lines currently would be either underbuilt on 115 kV structures or relocated to the ROW edge. A schematic drawing of a typical concept design for the Noticed Alternative is provided as Figure 1-10.

The 100 to 205 feet wide Southern Route ROWs encompass a total area of approximately 385 acres. Wetlands are more extensive on the Southern Route, approximately 28% of the ROW consists of wetlands (84.9 acres) and cranberry bogs (24.5 acres). Upland maintained areas within the active ROW are similar to the Northern Route -- early succession plant communities interspersed with unpaved access roads and trails. The edge of the maintained portion of the ROW is the transition from open, low-growing plant communities to forested areas of mature trees.

Land use within land areas abutting the ROW is predominantly undeveloped woodland, but also includes wetlands, cranberry bogs and residential areas. There are approximately 185 residences located within 300 feet of the ROW. The Southern Route traverses 2.4 miles of public lands and 1.3 miles of other (private) conservation or recreation lands.

Access to the ROW is provided from a number of paved public roads and unpaved private roads. Access within the ROW is provided by an unpaved access road running the length of the ROW generally located between the tower lines.

Canal Crossing (Segment 2)

Segment 2 extends form Bournedale Road, on the west side of Cape Cod Canal, across the Cape Cod Aggregates facility, Route 6 and the Cape Cod Canal, to NSTAR’s Bourne Switching Station, a total distance of approximately 1.4 miles. The Bourne Station is located within the Massachusetts Military Reservation, approximately 0.3 miles east of the eastern edge of the Canal. As described in detail in Section 4.4.1, the Company currently


has two 345 kV circuits crossing the Cape Cod Canal. These circuits are carried on double-circuit steel lattice towers on each side of the Canal. As part of the Project, this short stretch of double-circuit tower line will be separated; each 345 kV transmission line will be supported on separate structures. This separation is an essential step in ensuring reliable firm transmission onto the Cape and compliance with NERC criterion.

The alternatives for this 1.4-mile common route segment are focused on design alternatives for crossing the Cape Code Aggregates facility and the Cape Cod Canal, together with the necessary separation of the existing 345 kV double-circuit crossing. The specific design alternatives considered and the proposed design are discussed in the balance of Section 4.4. Based on this analysis, the Company is proposing a Canal crossing using steel monopole towers. There will be three pairs of new monopoles, one pair for the new 345 kV line, a second pair for the existing line which must be relocated from the existing double circuit lattice tower and a third pair for the second existing line. The latter will replace the existing 345 kV steel lattice towers; this is the optimal arrangement from a design perspective and also minimizes the visual profile of the three circuit 345 kV crossing of the Cape Cod Canal. A photo simulation of the crossing, as viewed from the Corps operated recreational area on the south side of Route 6, is provided as Figure 1-11.

Bourne to Terminal Substation

Once the new 345 kV line has crossed the Cape Cod Canal to the vicinity of the Bourne Station, it will be cut into Line #120 near the Bourne switching station on the east side of the Canal. Line #120 is an existing transmission line that originates at the Canal Generating Station Switchyard and terminates in the Barnstable switching station in Hyannis, MA. The line was planned by Commonwealth Electric and licensed by the Department several decades ago. As load on the Cape grew, the line was constructed in the mid 1980s. The portion of Line #120 from the Canal switchyard eastward to a point approximately 3.4 miles west of the Barnstable switching station was designed and constructed for 345 kV operation. However, as planned, the line has been operated at 115 kV since being placed into service. The Project will relicense a 12.8-mile segment of this transmission line for operation at 345 kV (from the cut-in location near the Bourne Switching Station to the end of 345 kV construction in West Barnstable).

A new terminal substation will be constructed at or near the end of the 345 kV construction of Line #120. Past the new terminal substation, the remaining 3.4 miles of existing Line 120 to the Barnstable Switching Station will continue to operate as designed at 115kV. The 2.5-mile section of Line #120 from the Canal switchyard to the vicinity of the Bourne Switching station would be terminated at a new circuit breaker position in the Bourne station and would continue to operate at 115kV.


Terminal Substation

The proposed terminal substation will include a 345 kV-to-115 kV autotransformer, a 345 kV circuit breaker and disconnect switches, foundations, containment, and a six-position 115 kV switching facility and a control enclosure. Circuit breakers will be installed for the continuation of Line 120 at 115 kV to the Company’s Barnstable Substation and for looping the 115 kV Line #115 in and out of this new terminal substation. The loop-in of the existing 115 kV Line #115 will reinforce supply to the Mashpee/Falmouth area and will provide additional reinforcement to the Barnstable Substation.

The footprint of the new substation will be approximately 400 feet in length and approximately 250 feet in width at its widest point. The fenced area will encompass approximately 2.25 acres.

The Company identified and analyzed two alternative sites for developing the necessary terminal substation, both located in Barnstable, MA. In identifying possible sites, the Company focused on the general area near the end of the 345 kV capable portion of Line #120. More specifically, the Company identified suitably-sized NSTAR-owned parcels with immediate access to existing transmission rights of way.

The first site is just to the south of the existing Oak Street Substation (“Oak Street Site”). The Oak Street Substation is located to the north of Route 6, on the east side of Oak Street. Route 6 (aka Mid-Cape Highway) is a four-lane, divided, limited-access highway in this area. The terminal substation site can be accessed from Oak Street.

The second site is located to the south of Route 6 and the parallel Service Road, near the intersection of NSTAR R/W # 381 and R/W #345. This site is identified as the “Service Road Site”; the site is directly accessible from Service Road. Figure 1-12 locates both sites on an aerial photo base map.

As discussed in Section 4.5, both locations are suitable substation sites. The Oak Street Site is slightly less expensive and scores somewhat better in the Company’s environmental analysis. However, the Service Road site is immediately adjacent to the existing Line #115 thus facilitating this important tie in. The Service Road site is also located at the end of the 345 kV capable section of Line #120 whereas the Oak Street site is about a 1/4 of a mile short of this endpoint. The Company will notice both sites and plans to seek additional input from the Town of Barnstable and the Cape Cod Commission during the course of the Siting Board process.

1.6 Project Schedule and Cost

A target Project licensing and construction schedule is provided as Figure 1-13. The Company’s objective is to have the Project ready for commercial service in late 2012/early 2013. Line and station construction is expected to take approximately one year.


The estimated cost of the Project, including line and station construction costs, is approximately $110 million. This includes:

♦ approximately $6 million of station construction work at Carver,;

♦ approximately $32 million for transmission line construction (Carver to Bournedale Road, including the new crossover station);

♦ approximately $18 million for transmission line construction from Bournedale Road to Bourne (including the Canal crossing, double-circuit tower separation and Line #120 cut in);

♦ approximately $4 million for work at the Bourne Station;

♦ approximately $22 million for the terminal substation construction work

♦ approximately $2 million to loop Line #115 into and out of the terminal substation

The terminal substation costs detailed above are conservatively based on the Service Road site. The balance of the cost estimate includes project management, preliminary engineering design, environmental and legal support, AFUDC, construction management and environmental mitigation.

1.7 Agency and Community Outreach

The Project has initiated an extensive outreach program with the area’s Legislative delegation, Federal and Massachusetts regulators, host communities and other parties. A significant level of outreach has been conducted in advance of this filing. The Company plans to continue these efforts during the licensing and permitting process and will maintain a focused communications program throughout the year-long construction process.

Initial outreach efforts were aimed at briefing elected representatives, regulators and local officials on the Project background/rationale, the route selection effort and the Project schedule. These initial meetings also provided an opportunity to solicit initial feedback on any likely issues and concerns.

To date, the outreach meetings have included (in approximate chronological order):

♦ Congressman Delahunt’s office; the Congressman represents the 10th Congressional District. The District includes Plymouth, Carver, Bourne the Cape and the Islands;

♦ Massachusetts Senate President Theresa Murray and staff; Senate President Murray represents the Plymouth & Barnstable District;

♦ Massachusetts Attorney General’s Office, Office of Ratepayer Advocacy;


♦ Massachusetts legislative delegation, including Representatives Patrick (3rd Barnstable), Representative Madden (Barnstable, Dukes & Nantucket); staff from the offices of Senate President Murray, Senator Pacheco (1st Plymouth & Bristol; Carver and Wareham), Senator O’Leary (Cape & Islands), and Senator Menard (1st Bristol & Plymouth; Rochester) as well as staff from the offices of Representatives deMacedo,(Plymouth), Gifford (Wareham, Carver) and Turner (Cape);

♦ Massachusetts Executive Office of Energy and Environmental Affairs, Secretary’s Office. This meeting included senior representatives from several EEA agencies (DOER/Commissioner Guidice, DEP/Associate Commissioner Weinberg, CZM/Assistant Director Carlise, DF&W/General Counsel Lehan and a representative of DCR);

♦ MEPA Office (attended by MEPA Director McDevitt and Assistant Director Bourre);

♦ US Army Corps of Engineers, New England District, Regulatory (attended by Project Manager Ted Lento and cultural resources specialist Kate Atwood);

♦ Town of Plymouth (Town Manager Mark Stankiewicz, DPW Director Hector Castro, Director of Planning Lee Hartmann, Director of Inspectional Services Paul McAuliffe, Conservation Agent Liz Sullivan and School Facility Manager Arthur Montrond);

♦ Town of Barnstable (Town Manager John Klimm, Assistant Town Manager Tom Lynch, Tom Gyler, Regulatory Services (including zoning), Department of Public Works Director Mark Els, Growth Management Director JoAnne Buntich, Conservation Director Rob Gatewood, Ruth Weil, Lead Town Attorney and Charles McLaughlin, Assistant Town Attorney);

♦ Cape Cod Commission (Patty Daley, Technical Services Director/Chief of Staff; Kristy Senatori, Chief Regulatory Officer and Ms. Ryan Christenberry, Planner/Energy Specialist);

♦ Town of Wareham (Town Administrator Mark Andrews; Town Planner John Charbonneau; Conservation Administrator Dave Pichette; and Director of Inspectional Services Myles Burke (Includes building inspection);

♦ Town of Bourne (Town Manager Tom Guerino; Town Planner Coreen Moore; plus Bourne Zoning Officer and Bourne Conservation Agent);

♦ Town of Plymouth Board of Selectmen (NSTAR presentation/question and answer session at the regularly scheduled September 14, 2010 public meeting of the Plymouth Selectmen. The meeting was attended by all five Plymouth Selectmen;


Mr. Hallisey, Chair, Mr. Mahoney, Vice Chair, Mr. Quintal, Mr. Harnais, and Mr. Muratore together with Town Manager Stankiewicz and Assistant Town Manager Arrighi.)

♦ Town of Carver (Town Manager Richard Lafond, Director of Lanning and Community Development Jack Hunter and Conservation Agent & Selectman Sarah Hewins, PhD)

♦ Massachusetts Department of Conservation and Recreation (DCR) (September 30 meeting scheduled with Priscilla Geigis, Director, Division of State Parks & Recreation, and staff from DCR divisions and the Myles Standish State Forest)

♦ Town of Bourne Board of Selectmen.(NSTAR is scheduled to make a presentation and respond to questions at a regularly scheduled public meeting of the Bourne Selectmen on Oct 5, 2010)

In addition to these outreach meetings, the Company has also had communications with Maureen McCabe, Chief, Conveyance Branch, Real Estate Division, U.S. Army Corps of Engineers, New England District and her colleagues regarding the Cape Cod Canal crossing aspect of the Project.

In addition to these briefings, the Project has had several data gathering and consultation meetings with the MA Natural Heritage and Endangered Species Program (NHESP). This consultation process is expected to continue throughout the licensing effort.

The Project has also conducted file reviews and had initial discussions with staff at the Massachusetts Historical Commission.

Following the submittal of the EFSB Petition and nearly concurrent filing of the ENF, the Project will continue its program of outreach meetings. Some of these are required elements of the regulatory process (EFSB Public Hearing, MEPA Consultation session) while others will be issue specific discussions with permitting agencies. The Company will also schedule additional meetings with the Towns of Carver, Plymouth, Bourne and Barnstable for more specific discussion of plans, local filings and potential mitigation measures.

Lastly, the Project also intends to maintain an active and ongoing community outreach program. This will include additional meetings with local officials, appearances at local public meetings and meetings with local citizen groups, as appropriate. The Project will maintain a web site which will include links to all filings as well as a calendar of upcoming meetings/hearings and Project contact information.

As was done for the Company’s Stoughton to Boston 345 kV project, an active information and outreach effort will be established and maintained throughout the construction process as well.



1.8 Project Team

NSTAR has assembled a capable team of planners, engineers, environmental scientists, attorneys and government relations specialists for the Lower SEMA 345 kV project. The team’s principal organizations are outlined below.

NSTAR Electric & Gas, (project proponent)

NSTAR is the largest investor-owned electric and gas utility based in Massachusetts.11 The Company transmits and delivers electricity to 1.1 million electric customers in 81 cities and towns in eastern and southern Massachusetts. The Company transmits and delivers natural gas to nearly 300,000 customers in 51 communities. NSTAR employs more than 3,000 people in its regulated businesses. The Company has annual revenues of approximately $3 billion dollars and assets totaling approximately $8 billion.

NSTAR in its current form arose from a merger of the former Boston Edison and former Commonwealth Electric. The Company’s current service territory includes the City of Boston, the City of Cambridge, Watertown, Waltham, Brookline, Newton, Needham, Dedham, Framingham, Sudbury, Maynard, Lexington, Winchester and Stoneham. In southeastern Massachusetts, the Company’s service territory includes communities such as the Freetown, Dartmouth, Carver, Plymouth, Wareham, Bourne the entirety of Cape Cod and Martha’s Vineyard. The Company also supplies bulk power to the island of Nantucket. The Company’s electrical customer base includes 987,000 residential customers and 152,000 business customers.

NSTAR has a strong tradition of offering customers comprehensive energy efficiency programs. In the past five years, NSTAR’s energy efficiency programs have helped customers save 6.5 million therms of natural gas and 800,000 megawatt hours (MWhr) of electricity. This is the equivalent of reducing carbon dioxide (CO2) emissions by approximately half a million tons.

In 2005, the Company completed the licensing and permitting effort for the $315 million dollar Stoughton-to-Boston 345 kV project. This important regional transmission project included three underground 345 kV circuits, a new switching station in Stoughton, a new 345 kV section at NSTAR’s K Street substation in South Boston and an expansion of the NSTAR substation in Hyde Park. Two of the new 18-mile long 345 kV circuits terminated at K Street while the third circuit terminated at Hyde Park. The Project was constructed in phases; major elements of the project were placed in service during 2006, 2007 and 2008. The completed project, in concert with other regional transmission projects, has greatly enhanced the reliability of the transmission network serving the Greater Boston area. Several of NSTAR’s key players for the Stoughton to Boston project (Vern Oheim, Project

11 NSTAR website.

Director, Greg Sullivan, transmission planning, John Zicko, substation engineering, Mark Reed, government relations) have similar roles for the proposed Project. In addition, Mr. Charles Salamone, formerly NSTAR’s Director for System Planning, now an independent consultant (Cape Power Systems), is supporting the NSTAR team on the proposed Project.

Keegan Werlin LLP (outside counsel)

Keegan Werlin LLP (“KW”) serves as regulatory counsel for the Project on permitting and licensing matters. Based in Boston, the firm specializes in representing clients in all aspects of energy, environmental and regulatory processes. KW’s attorneys include former utility regulators and attorneys from energy, environmental and resource management agencies. The firm’s clients include electric utilities, local gas distribution companies, interstate gas pipeline companies, power developers, large electricity end users and several government entities.

Attorneys in the firm have represented transmission companies and project developers in their applications to the Siting Board and other permitting agencies for approval to construct electric transmission lines, bulk generating facilities and natural gas pipelines lines. In addition to the Project, KW is currently representing Cape Wind Associates, LLC in the permitting of its 420 MW proposed Wind Park and associated transmission facilities and Weaver’s Cove Energy regarding its proposed LNG storage facility to be located in Fall River.

In recent years, KW has also served as counsel to: NSTAR Electric in connection with the permitting for a 345 kV transmission line and ancillary facilities located in Boston, Stoughton, Canton and Milton; Brockton Power Company, LLC, a proposed 270 MW natural gas combined-cycle facility in Brockton; Nickel Hill Energy, LLC, a 750 MW natural gas combined-cycle generating facility in Dracut; Sithe West Medway Development, LLC, a 540 MW simple-cycle peaking facility in Medway; Cabot Power Corporation, a 350 MW combined-cycle generating facility in Everett; and KeySpan Energy Delivery New England, a seven-mile intrastate natural gas pipeline on Cape Cod.

In past years, KW has also represented a variety of other non-utility generators, electric and gas distribution companies, marketers and suppliers, large end users, and governmental and educational institutions on electricity and natural gas issues in a wide array of energy, regulatory, environmental and permitting matters.

Epsilon Associates, Inc, (environmental consultants)

Epsilon Associates is a mid-size engineering and environmental consulting firm based in Maynard, Massachusetts. Epsilon’s engineers, scientists, planners and regulatory specialists are engaged in route selection/site selection studies, environmental analyses, modeling,


licensing and permitting for energy infrastructure projects throughout the Northeast. The firm’s clients include traditional utilities, independent power developers and renewable energy developers.

Several years ago, Epsilon worked with NSTAR, Keegan Werlin and Shaw to license and permit NSTAR’s 345 kV Stoughton-to-Boston Transmission Reliability Project (now in commercial operation). Epsilon’s transmission line experience also includes environmental analysis and EFSB review for National Grid’s Worcester Cable Project (3.6 miles of underground 115 k and related station work); NYSPSC Article VII review and preparation of an EM&CP for Noble’s Wethersfield, NY Windpark (5 miles 230 kV); the Article VII review for Noble’s Alleghany Windpark (14 miles, 115 kV); and the Article VII review and complete permitting for Niagara Mohawk’s (now National Grid) eight-mile 345 kV transmission line for the Besicorp Empire power project. Epsilon’s earlier transmission line experience includes the second Nantucket Cable project and a series of assignments for TransEnergieUS, a Hydro Quebec subsidiary (submarine HVDC cable projects).

Epsilon’s pipeline experience includes routing, environmental analysis, licensing and permitting efforts a number of projects in New England and New York. Specific projects include fast track permitting for two Dominion pipeline relocation projects in Herkimer County, NY; routing studies and NYS PSC Article VII review for Niagara Mohawk’s (now National Grid) five-mile high-pressure interconnection for the Besicorp Empire power project in Rensselaer NY; full FERC review for two high pressure laterals to serve the proposed Weaver’s Cove LNG terminal; permitting for a Granite State Gas pipeline crossing of the Saco River; Siting Board and MEPA review for the KeySpan Energy Delivery’s 13-mile Cape Cod Sagamore reinforcement project; and Siting Board and MEPA review of the earlier seven mile KeySpan Bourne pipeline reinforcement project.

In addition to Epsilon’s significant transmission and pipeline experience, the firm has been responsible for environmental analysis, licensing and permitting for a long list of power generation projects. Examples include the 116 MW Braintree Electric Watson Station, the 350 MW Brockton Power project, the 348 MW simple cycle Billerica Energy Center, the 750 MW Sithe Fore River Station (now Exelon) in Weymouth, MA; and the 750 MW Nickel Hill Energy project in Dracut, MA. All of these projects included transmission interconnections and gas pipeline interconnections.

For the NSTAR Lower SEMA project, Epsilon is supported by three specialized subconsultants: Dr. Peter Valberg of Gradient Corporation for EMF analysis; Brian Butler and his team at Oxbow Associates for rare species studies and Public Archaeology Laboratory for cultural resources studies and field investigations.


Levitan & Associates (economics consultant)

Founded in 1989, Levitan & Associates, Inc. (LAI) is a Boston-based energy management consulting firm with major practice areas in power project development and analysis, market design, asset valuation, wholesale electric and fuel procurement, power systems engineering, permitting and siting support, fuel supply and transportation management, and risk management. LAI has worked with electric and gas utilities, developers, investors, state commissions, independent system operators, pipeline companies, and large energy end-users throughout the U.S. regarding asset transactions, wholesale gas and power contracts, integrated resource planning, and market and regulatory trends.

LAI has advised investors, lenders, and state commissions on the purchase and sale of renewable and conventional generating assets and associated power purchase agreements. LAI has prepared locational market forecasts of fuel, energy, capacity, and renewable energy credit (REC) prices in support of numerous generation and transmission developments, acquisitions, divestitures, and contract negotiations. LAI consultants have testified extensively before FERC and state commissions.

For the NSTAR SEMA project, Levitan was responsible for preparing an economic analysis of non transmission project alternatives (demand response, on-Cape quick start generation). Their analysis is provided as Attachment 2-1 to Section 2 of this Petition.

Real Time Utility Engineers, Inc, (engineering design and cost estimating)

Real Time Utility Engineers (RTUE) is a consulting engineering firm providing transmission line and substation engineering to electric utilities nationwide. Based in Madison Wisconsin, RTUE has a team of managers, engineers, designers and technicians with decades of experience in pre-design planning, transmission line design, rating analysis for line upgrades and structural analysis. RTUE has experience with wood pole design, steel pole design, lattice tower design, cassion foundation design and finite element conductor design. The firm has worked on more than 3,500 miles of high voltage transmission lines using LIDAR (Light Detection and Ranging) data. RTUE’s Project Manager for the NSTAR SEMA effort is Mr. Scott Piernot, P.E., a cofounder of the firm.

For the NSTAR project, Real Time Utility Engineers was supported by experienced construction managers from an affiliate firm, MJ Electric. Based in Pennsylvania, MJ Electric is a leading utility construction firm with a depth of experience in building 345 kV lines in New England and across the country.

Both Real Time Utility Engineers and MJ Electric are part of Quanta Services, a nationwide provider of engineering design, construction, maintenance and repair services for the electric power, telecommunications and gas pipeline industries. Quanta Services has more than 14,000 employees working from offices in 40 states.


Power Engineers (engineering consultant for HDD)

Power Engineers Consulting, a professional services corporation, is an affiliate of POWER Engineers Inc. and is registered as a foreign corporation in New York, Massachusetts, North Carolina and Michigan in order to satisfy engineering licensing requirements in those states.

POWER’s Transmission & Distribution Division provides the core engineering services that electric utilities need to meet new power demands. For over thirty years, POWER has provided both overhead and underground Transmission Line Designs, Construction Management and Project Management. As a national leader in designing underground line systems, POWER Engineers offers experience in all cable types, with experience in the analysis, design and installation of extra high voltage cable including high pressure fluid filled (HPFF), cross linked polyethylene (XLPE), high voltage gas filled (HPGF), Ethylene Propylene Rubber (EPR), and self-contained fluid-filled (SCFF).

For the NSTAR Lower SEMA project, Power Engineers was retained to study the technical feasibility of a potential HDD crossing beneath the Cape Cod Canal and to provided a cost estimate for such a crossing.


Figure 1-1 Project Overview

Figure 1-2 Lower SEMA/Tremont East Load Centers

Figure 1-3 Alternatives Analysis Segments

Figure 1-4 Candidate Routes

Figure 1-5 Segment 1 Preferred Route and Noticed Alternative

Figure 1-6 Concept Design Zone N1, Carver Substation to State Forest Transition Station

Figure 1-7 Concept Design Zone N2/E2, State Forest Transition Station to Bournedale Road

Figure 1-8 Plymouth Crossover Station Proposed Layout, Aerial Photo Background

Figure 1-9 Southern Route Zone S1, Carver Substation to Tremont Station

Figure 1-10 Concept Design Zone S2c, Valley Substation to Bournedale Road

Figure 1-11 Artist’s Rendering, Canal Crossing – View Looking South from Herring Run Recreation Area (Rte. 6)

Figure 1-12 Aerial Photo with Terminal Station Layouts

Figure 1-13 Project Schedule Overview


Documents

1.0 PROJECT OVERVIEW