APSC FILED Time: 12/18/2013 8:41:22 AM: Recvd 12/17/2013 4:41:33 PM: Docket 13-125-u-Doc. 1 Arkansas Public Service Commission Docket Summary Cover Sheet (For all dockets other than Rate Cases, "TD", "C" and "TF" Dockets Must be filed with each new docket filed at the Commission STYLE OF DOCKET: (Style may be changed by Secretary of Commission) Docket Number: In the Matter of the Application of Rich Mountain Electric Cooperative Incorporated for a Certificate of Public Convenience and Necesity. DOCKET DESIGNATOR: U A R P RELATED DOCKETS: Nature of Action: (See second sheet) PETITIONER/INITIATING PARTY* Rich Mountain Electric Cooperative Incorporated ATTORNEYS' NAME, ADDRESS, PHONE, FAX AND E-MAIL Mr. Bob Keeter 610 Church Street Mena, Arkansas 71953 479.394.1735 *If the initiating party is not a jurisdictional utility in Arkansas, please provide mailing address, phone, fax and e-mail for the company Pursuant to Rule 2.03(b) of the Commission's Rules of Practice and Procedure, please provide name, address, phone, fax, e-mail of at least one, but not more than two names to appear on the Service List for this docket Adam L Toth, PE 830 E Primrose, Ste 200 Mr. Brad Castor PO Box 897 atoth@tothassociates.com Springfield, Missouri 65807 bcastor@rmec.com Mena, Arkansas 71953 417.888.0645 (phone) 479.394.4140 (phone) 417.888.0657 (fax) 479.394.1211 (fax) Write a brief statement, limited to the space provided herein describing the case that you are filing. Please provide enough information to assure that the nature of your docket is clear. RMEC seeks a certificate of public convenience and necessity to contruct, operate, and maintain a 138kV transmission line from a takeoff structure that will be owned by AEP (American Elctric Power) and proceed approximately 0.8 miles in a northwesterly direction to RMEC's Potter Substation which is to be constructed. In support of this application, RMEC states that its loads and service reliability requirements continue to grow in the area. To provide for its responsibilities, RMEC requires the addition of the line and substation. The proposed line will be constructed with single pole structures supporting 336.4 MCM 26/7 ACSR conductor and an overhead static consisting of 3/8" high strength steel. Potter Substation will step voltage from 138 kV to 13.2 kV for distribution purposes. Form completed by: Adam Toth Date: 12-17-13 Representing: Rich Mountain Electric Cooperative Incorporated APSC FILED Time: 12/18/2013 8:41:22 AM: Recvd 12/17/2013 4:41:33 PM: Docket 13-125-u-Doc. 1 NATURE OF ACTION: Please choose at least one, but no more than three docket types Accounting Acquisition/Sales Act 310 of 1981 (Surcharge) Act 821 of 1987 (Cooperatives Rate Change) Administrative Procedures Affiliate Rules Annual Reports/Assessment Ar Energy Conservation Act (Efficiency Programs) Arbitration Arkansas High Cost Fund Arkansas Intralata Toll Pool Arkansas Universal Service Fund ARSI Arkansas Relay Service, Inc. Auto Adjustment Avoided Cost CCN Cancellation CCN Facility CCN License CECPN Cost of Gas/Energy seasonal/unscheduled Customer release/Abandonment Declaratory Judgment Depreciation Dialing/Numbering Disabilities Act of 1990 Earnings Review Eligible Telecommunications Carrier Designation Energy Policy Act Energy/Fuel Purchasing Practices EWG Exempt Wholesale Generator Extended Area Service Extension of Telecommunications Facilities Fund Extraordinary Property Loss FCC Finance (Bonds/issue & sell; stock; prom note) Grand Gulf Integrated Resource Planning Interconnection Agreements Interest/Customer Deposit Investigation/Inquiry Lifeline/link up Market Power Merger/Transfer Municipal Franchise Tax Net Metering Nuclear Decommissioning One Call Pipeline Safety Pole attachment issues Protective Order Public Utility Holding Company Act Public Utility Regulatory Policy Act Purchase Power Railroad Rates Refund Reports Resource Plan Restructuring Retail River Crossing Regional Transmission Organization Rulemaking Service Quality Shielded Outdoor Lighting Show Cause Stranded Costs Sustainable Energy Resources Terms and Conditions Territory/release/unallocated territory Transition costs Unbundling USOA (Uniform System of Accounts) Waiver/Exemption Weather Wholesale Wholesale Rate Adjustment APSC FILED Time: 12/18/2013 8:41:22 AM: Recvd 12/17/2013 4:41:33 PM: Docket 13-125-u-Doc. 1 APSC FILED Time: 12/18/2013 8:41:22 AM: Recvd 12/17/2013 4:41:33 PM: Docket 13-125-u-Doc. 1 APSC FILED Time: 12/18/2013 8:41:22 AM: Recvd 12/17/2013 4:41:33 PM: Docket 13-125-u-Doc. 1 APSC FILED Time: 12/18/2013 8:41:22 AM: Recvd 12/17/2013 4:41:33 PM: Docket 13-125-u-Doc. 1 APSC FILED Time: 12/18/2013 8:41:22 AM: Recvd 12/17/2013 4:41:33 PM: Docket 13-125-u-Doc. 1 BEFORE THE ARKANSAS PUBLIC SERVICE COMMISSION IN THE MATTER OF THE APPLICATION OF RICH MOUNTAIN ELECTRIC COOPERATIVE, INC. FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO CONSTRUCT, OPERATE, AND MAINTAIN CERTAIN TRANSMISSION FACILITIES IN POLK COUNTY ARKANSAS ) ) ) ) ) ) DOCKET NO. __________ TESTIMONY OF ADAM L. TOTH ON BEHALF OF RICH MOUNTAIN ELECTRIC COOPERATIVE, INC. DECEMBER 17, 2013 APSC FILED Time: 12/18/2013 8:41:22 AM: Recvd 12/17/2013 4:41:33 PM: Docket 13-125-u-Doc. 1 Arkansas Public Service Commission Testimony of Adam L. Toth Docket No. _________ Page 1 of 5 1 Q. Please state your name. 2 A. Adam L. Toth 3 830 E. Primrose St. Suite 200 4 Springfield, Missouri 65807 5 Q. By whom are you employed and what is your position? 6 A. I am employed by Toth & Associates, Inc., Consulting Engineers, Springfield, Missouri. I 7 am a registered Electrical Engineer and principal engineer in the firm. My work 8 experience is with electric power systems in the areas of planning and economic 9 analysis (both short term and long term); rate analysis; cost of service analysis; plus design. 10 11 Q. Would you briefly describe your educational and professional background? 12 A. I received a Bachelor of Science Degree in Electrical Engineering from the University of 13 Missouri in 2004. I received a Master’s Degree in Business Administration from Missouri 14 State University in 2007. Since graduation, I have attended numerous seminars on 15 system design. I am a registered engineer in the states of Arkansas (13971), Missouri 16 (PE‐2009001133), Oklahoma (24385), Iowa (20073), and Illinois (062.062417). Between 17 2004 and the present I have worked as an Engineering Intern and Professional Engineer 18 with Toth & Associates, Inc. I presently have project responsibility on a client basis in all 19 areas of planning and design. 20 APSC FILED Time: 12/18/2013 8:41:22 AM: Recvd 12/17/2013 4:41:33 PM: Docket 13-125-u-Doc. 1 Arkansas Public Service Commission Testimony of Adam L. Toth Docket No. _________ Page 2 of 5 1 Q. (APSC) or any other regulatory bodies? 2 3 Have you previously filed testimony with the Arkansas Public Service Commission A. I have not previously filed testimony in Arkansas. I did prepare and submit a cost of 4 service study in 2012 in docket 87‐159‐U. I have filed testimony before the Oklahoma 5 Corporation Commission. 6 Q. Please describe the activities of Toth & Associates, Inc. 7 A. Toth & Associates, Inc. is a consulting engineering firm with an office in Springfield, 8 Missouri. The firm commenced operation January 2004. The greater portion of the 9 work accomplished by Toth & Associates, Inc., has been for Cooperative and Municipal Power Systems in the states of Arkansas, Missouri, Oklahoma, Illinois and Iowa. 10 11 Q. Was Toth & Associates, Inc., retained by Rich Mountain Electric Cooperative Incorporated to prepare and submit material related to this docket? 12 13 A. Yes. 14 Q. What plans has the Cooperative made to determine how it will meet its responsibility in providing electric service to its members? 15 16 A. Rich Mountain Electric Cooperative Incorporated (RMEC) adopts a new construction 17 work plan approximately every four years. I recently prepared and sealed the 2014 to 18 2017 Construction Work Plan (CWP) for Rich Mountain Electric Cooperative. During the 19 planning process, loads were projected. System performance was analyzed and 20 recommended improvements developed to insure the provision of adequate capacity to APSC FILED Time: 12/18/2013 8:41:22 AM: Recvd 12/17/2013 4:41:33 PM: Docket 13-125-u-Doc. 1 Arkansas Public Service Commission Testimony of Adam L. Toth Docket No. _________ Page 3 of 5 1 serve the growing loads. Alternatives were analyzed based on electrical capacity 2 requirements, reliability and economies. 3 Q. Please describe the line, route and substation involved. 4 A. The line consists of .8 miles of 138kV conductor on supporting poles. The line source 5 will be a line tap structure owned by American Electric Power and will be constructed 6 under AEP’s line as shown on application Exhibit 1. RMEC will connect to the structure 7 and run its 138kV line northwest approximately 0.8 miles. The line will then terminate 8 on a steel structure in Potter Substation. Potter Substation will step voltage down from 9 138kV to 13.2kV utilizing a 10 MVA transformer. 10 Q. Were alternatives to the Potter Substation and Transmission line analyzed? 11 A. A long range plan was created for this area during the Construction Work Plan process. 12 Area loads were forecast twenty years in the future. Four potential alternatives were 13 analyzed which included a mixture of distribution, substation, and transmission 14 improvements to meet area needs. Construction of Potter Substation and the 15 transmission line to serve it was determined to be the lowest cost and most reliable 16 alternative. 17 The facilities are necessary to maintain adequate capacity and service reliability to 18 Cooperative members in Polk County, specifically around the Potter Junction area west 19 of Mena, Arkansas. The new facilities will take load off the Mena Substation, which APSC FILED Time: 12/18/2013 8:41:22 AM: Recvd 12/17/2013 4:41:33 PM: Docket 13-125-u-Doc. 1 Arkansas Public Service Commission Testimony of Adam L. Toth Docket No. _________ Page 4 of 5 1 does not have adequate capacity to provide for the future needs of the customers in the 2 Potter area. 3 Q. Has the 2014‐2017 Construction Work Plan been approved by the Board of Directors of Rich Mountain Electric Cooperative and Rural Utilities Service? 4 5 A. Yes. 6 Q. What criteria did the Cooperative use to select the current transmission line route and site for Potter Substation? 7 8 A. RMEC selected the transmission line route and substation site based on placing the 9 facility near the load center for the area. The transmission route and substation site 10 were chosen as the lowest cost route for RMEC due to the directness of the route. 11 RMEC has already obtained easement rights along the route as well as the substation 12 site. Environmental entities and RUS have determined the route to be acceptable. 13 Q. What are the cost estimate and manner of financing for these facilities? 14 A. The estimated cost of transmission facilities $275,000 and the estimated cost of Potter 15 Substation is $1,500,000. Improvements will be financed with long term loans from 16 Rural Utilities Service (RUS). The loans have been approved by RUS and funds are 17 expected to be available when needed. 18 Q. Cooperative? 19 20 Will the proposed facilities be constructed within the territory allocated to the A. Yes. APSC FILED Time: 12/18/2013 8:41:22 AM: Recvd 12/17/2013 4:41:33 PM: Docket 13-125-u-Doc. 1 Arkansas Public Service Commission Testimony of Adam L. Toth Docket No. _________ Page 5 of 5 1 Q. Are there any other matters or circumstances associated with this Certificate of Convenience and Necessity which you would like to convey to the commission? 2 3 A. No. 4 5 /s/ Adam L. Toth 6 Adam L. Toth, PE