ML20049A325
| ML20049A325 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 10/29/1980 |
| From: | NEW JERSEY, STATE OF |
| To: | |
| Shared Package | |
| ML20049A324 | List: |
| References | |
| NUDOCS 8011110288 | |
| Download: ML20049A325 (160) | |
Text
{{#Wiki_filter:[ "Y 2062 ( ') ? I VOLUME 13 W4 JEit33Y 03PARTMEH7 OF F.:!ERGY 2 HOARD CF PUCLIC U?ILITIES 3 nma;, :iw JERGU'l UnDunSDAY, OCT03ER 29, 1990 4 a 5 In the Matter of the Petition of 1 OAL DOC %CT 130. Jersey Central Powar and Light PUC 3518-80 6 Coepany for approval of an increase in rates for electric servico rnd UPU DOCXET NO. 7 for amendment to the I,evelized i G04-285 3 007-4ES Energy Adjustnent Clausa and fac-8 ter for such service. 9 1 10 l arFORE: I!CM. STEP;!EN G. OtARSHALL Adttinistrativo Law Judge j 11 () =i APP 3ARANC30: 13 4 l For the Petitioner, Jeracy Central i 14 Pcwor and Light Ccmpany, Appear: i 15 KIRSTru, PRISCMA!! & CUERIN, ESQS., 3Y JACT D. KI RST"*l, ESQ., and E 16 DCLORES DCLADAR, E30., l 17 Acadocy Street I 17
- ltwark. New Jersey 18 and
[ 19 MILLIAtt F. HYLA:ID, ESQ., Of Counsel 4~- JAME3 3. LI30P24NT, ESQ., Of Counsel 20 For Department of Public Advocate, j v 21 Division of Rato Counsel, appear; l. ALPRCD L. NARDCLLI, ESQ., 22 Deputy Dir=ctor 23 FAYM0iD mat:UL, 530., (} Deputy Public Adyccate \\ 10 Conmorce Court 24 81cunrk, Mew Jersey 3 " 3U3"3C" ' ^53'CIAT58 25 24 Co.eerce Court
- levark, !!ew JerueY g0111y o 02((
r (201) 623-1974
r 2063 1 APP 2AAANCES (Continued) i 2 For the Staff of the Soard of Public i Utilities, appears: 3 CARIA VIVIAN BELLO, E30., 4 Deputy Atto ney General 5
- 1. PAUL CLXVIlt, supervising Rate Analyst For the Doard of Chosen Freeholdars of 7
Ocean County appearss 8 ggggg, gnggpy g, pyg g, g,wgg g PRIVET 3RA, : 303., 9 DYa JOHN C. SAURAD:f!K, ESQ., 34 Washington Street 10 Toms River, New Jersey i; 11 12 O 13 as.j 14 b 15 1 l 16 17 18 19 ~- ~ il~ 20 i: 21 1 22 23 4 0 25 e
2344 I JUDGE M3.R3 HALL: Good ccrning, Counsel. 2 This is a continued hearing in the satter of 3 the Petitica cf Jersey Central Power and Light 4 Company, CAL Decket sucher PUC-3518-SO, with 5 Stephen Marshall presiding as Adninistrative 6 Law Judge. 7 Do the parties wish to bring up any 8 precedural questions before va proceed? 9 MR. KIR5TMN I would. There was a 10 public witness by the nazz cf ifalsh. I an ij 11 not in favor, frankly, of burdening the record 12 with these things, but it did turn oct to () 13 solve a problem with Mrs. Dird, and I felt f 14 that we might be able to clarify the situation 15 l and solve the prehlem with Mra, ualah. I 16 l i 17 18 19 II 20 21 22 23 ) 25
5 2065. I m. K12STEU: (Continuing.) Our re-2 cords indica:e that uo to September 20th of 3 1979, service was being rendered to a Mr. 4 Rchort 21. Walsh, at 28 Spark Drive, Bricktown, 5 New Jersey. On that data, the account of 6 Mr. Walsh was delinexant in the amount of 7 $162.15. He sas notifie.d that unless that 8 delinquency was paid, there would be a termi-9 nacien of service. 10 There was a telephone contact apparently i 11 " i in t.hich Mr. Halsh advised the Custocar Scr-12 g vice rc resentative of the Cos4 ny that he O: 13 van not the same Robert 11. Walsh but one 14 liichael Valah, and that he had purchased the i 15 residence from his father and that the de-i 16 lingtency vao on the account of his father's 17 name which had never been terninated. 18 Apparently a new acccunt was opened 19 s'- up in the cuan of Michael Walsh at that ad- .r 20 dress. 91 MR. EMILELL18 Is that Mrs. Walsh's ~ 22 husband? 93 ~ ML. KIIISTEN: Well, there in scue con-4 O fustea== co,hether sosere x. waioh ts the 25 f ather a.nd Michael is the son because, as 1 l 1
2066. I go ca, you will see that there in cnother 2 confusion of names. nur apprently that 3 $162.13 vas ultir.at.ely paid socshow. 4 On the ner account d ic.h ves in the 5 nasae of Michael With, fr<xe Septer.ber 20th, 6 1979, to !by 1st,1930, there was a de-7 linquez,ey of $333.45. On May 1, 1930, the 8 Walsh fand.17 r.sved to 13?.9 Day Avemie, Tcun 9 Piver, and scr/lco at that address had not 10 been discontinsed by the previous occupant i 11 j sud the r.eter reador reported back to tha 12 i Compeny that new cuotm2cre had raved in. Oi 13 Michaci ilai.sh apparently was that in-a 14 i forned by the Company the.t h4 vould not re-d 15 coive t.crvice until he raid the accet due 16 l on his past account ut the previous todrasa 17 of $300.45, plus a depe it of M00. 18 On ik:y 5th,1900, !!!chael t!.tish co?- 19 v'- tactad the 3cetro of Public 13tilitten s.htch c. 20 intervened and as.2 resul.t of :hoir aetica, 9~ W ish a; rued to pay th2 ansunt due of $338.45, 22 and a reduced deposit of 7:40. 23 0 24 25 t
20G7 I (]} MR. KIRSTZNa uowever, instead of 2 opening up a new account, service continued 3 in the previcus cwner's nasue and usish paid 4 nothing. In addition, Malak a noter apparently ) 5 was uct read again until August 1980. At that 6 time the additional servica amounted to $383.30. 1 uten the Conpany realized what had happened, 'i 7 8 they terminated service. 9 One day later Halsa filed an informal petition with the Doard requesting return to II service and dawayos for spoiled food. Servics ( l 12 i to Walsh was restored. () 13 ? On Emptaaber 25, 1980, an informal a 14 i conference was held at the soard before Kevin 15 conti. Walsh did act disputa tha amount owed. 16 The resul: of the ccaterance was tha 17 follcwing payrant plane tralsh agreed to pay 18 the amount owed $3C8.45 for the earlier period, I9 s' '. pics $333.33 for tas later period, by paying 20 $125 per ncath plua current billa. That 21 agreenent was later reduced by a later agres-22 mont with the company to $75.00 a month and 23 adding $130.30 as a dopca' t to,the balonce. 24 Thia was cenfirsed by latter frcm the Company (]) 25 dated Auguus 10, 1980.
[ 2068 I The.t latter confirmed that the three 2 arcounts due, 0350.45, $333.30 and the $150.00, 3 a balmace unich was going to be paid off at 4 375.00 a :.onth, for a total of $$21.75. 5 That is the latest information that I 6 have in respect to tir, tralsh. I assume that i in view of that agre ment, he is satisfied 7 8 and the patter cheuld be amicably resolved. l 9 JUDGE MARSHALLS Does anyone have any-10 thing they wish to add or questien? II (No response.) 12 g JUCCC HAIG11AI.La Okay. Thank you, Mr. Ol 13 ,1,, m. I4 MR. KIESTENs I wculd like to call to ~ { 15 tho stand Mr. Edmond ' ewton, Jr. Mr. Newton i 16 has not been previon: sly sworn. 17 l CDMONO N O tf T O 3, J.R., sworn on behalf of 1 18 Petitioner, testifies ad fellows: 19 Tus STCHOGRAPi!3R: Please state your x. 20 [. full name for the record. 1' l 21 Tny, trit:Isss: My full name is Ed:tond 22 Newten, Jr. 3 37pgg7 37,3,4I:tATIC3 l O ae aa r::=r=<> 25 Q Mr. levton, vill you tall us the position that
Wewton-direct 2069 Q you hold la the GPU system? 2 A I am vice Presicent, System Operations of the 3 GPU Service Corporation, and included in my responsibilities 4 are the coordination of the total transmission and distribu-5 tion, planning, engineering, construction management and so 6 forth. 7 0
- dould you tell us briefly your educational 8
background and professional experience? 9 A Well, I graduated from Clemson University in 10 1952 with a degree of Dachalor of Electrical Engineering; ) ,k II graduated from NI.T. in 1354 with a Master of Science in 1 i Iloctrical Engineering. I joined Hatropolitan Edison company, O? n { a sister company to Jersey Central,in 1954 as a cadet 14 enginear and served in that capacity, project engineer, d -15 e staff engineer, and then I becana manager of contract and 16 rates, and than transferred to the GPU Service Corporation 17 in 1970 where I served as saanager of contract and rates until 18 1977 when I assumed my present responsibilities. 19 9 E 20 21 22 23 O 4 25 -n,-.- ,.--,--,,---,,,,,-------,r
\\[ 20 ha ton-direct 2078. 1 MR. KIRSTI: lit if I say, sir, just to 2 facilitcte the Leutimony, Mr. Newton has pre-3 parad a awaber of exhibits which he refers 4 to during hia testimony. He does not have 5 any prat-filed tescimony. I have just dis-6 tr1 Luted his calbica just for the saka of 7 tisa and I thought it sight be acceptable if 8 us idenLii;y them all initially so as not to 9 havo to interrupciir. Newton's tcatimony. 3 10 l J'JLC3 Mud.L: All right. 11 1 6. K C S a is Vould that be all right? 12 I g
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13
- g, g;3373;;;
7,d like to mark for 14 j li ntification a group of c=hibits which have s 15 becu st.cpled together, dich h.we been maced
- r 16 l
JC-60i chrouj,h JC-314A, inclusivo. 17
- 14. Het. ten, Atring his testimony, will I8 idencify the e:rhtbits more specifically, as to titeir concent.
n.. r 20 J'6LG7. WJdiliALL: If therc is no objec-21 tic.n, these chibitz vill be so marked JC-001 22 thrw,h aG-614-A. e ~3 9 6t,cescat entitled " Typical Elcetric O syoec2" =a aed Jc-sot for ideneification.) 24 25 (Locu wat entitled "GPU Transmiscion I
Mewton-direct 2071. I I and Lintribution System Planni.ng Practices and 2 Principles," consisting of three pages, marked 3 JC-802, for Identifiesticn.) 4 (Document entitled "Generat IW 11c 5 Utilities Bulk Power Transmission Plannint; 6 Process" c:arked JC-803 for Identification.) 7 (Document e:2 titled " Representative Day 8 in Sususer Period" :r.arked JC-dO4 for Identifi-9 cation.) 10 (Document entitled "Jarsey Central ij 11 Peak Load Projection" narked JC-2,05 for 12 Identificaticn.) Ol 13 (uoco ent e,titted Jorsey Centret f 14 Installed Capacity Projectien, Broekdown of l 15 Internal and Extraten itorial Cencration" 16 marked JC-806 for Identification.) 17 (Docu:sant entitled " Jersey Centrat 18 Internal Generating Capacity, Breakdown by 19 Ceneration Type" marked JC-307 for Identifi-1. 1 F 20 cation.) 21 (Document entitled "Deceriptien of 22 Jersey Cent ~al Trantaissica Map and CPU System 23 Map" marked JC-308 for identification.) O 24 (ce= r=1 restic ueitiet== corvoracto= 25 System 11ap marked JC-808A for Idantificacico.) ~,
l 1 3cuton-direct 2072. I n (Transmission Map of Jersey Central V 2 Power 6. Light Caepany marked JC-8088 for l 3 Iecngigiencion,) 4 (Document entitled " Illustration of 5 l Ecuthern Jersey Central Dependence on Bulk 6 Trananisaicn" carked JC-509 for Identifi-7 cation.) 8 (Locument en:itled "2xpected Number 9 of Year 3ctueen Loss of Load occurrences" 10 marked JC-810 for Identification.) k II (Doctncut e_ntitled "Couthern Jerrey 12 i Central Imports Ecsultin:; fros T.conexaic Dis-O: 13 .i pa:ch of Generation at various Ioad Levels" I 14 i murhad JC-311 for Idencification.) 15 (Decu:2 ant entitica "JCPGL'(3-pfus-9) ~ I 16 1930 Construction Dudget Dintribution" marked 17 JC-012 for Idrantification.) 18 (Locuwn: entitled "JCP E (3-plus-9) 19 1980 Construction Sudget Trananisalon" marked t-20 .;C-313 for Identification.) 21 C:ocurcne er. titled " Distribution 22 ^ Priority System-Jersey Central" marked JC-814 23 E;;r TiratiLi:stin.) O ct== ment. ectit1ed vrans.1s. ton-4 25 Proj ect Frioritiration Systs, JCPR Company, .~.
m Newton-direct 2075. 1 cathed JC-814A for Identificatien.) 2 BY MR. KIRSTEN: i 3 A Hr. Newton, vould you tell us or S ve us a 4 general overview and description of the transaission and dis-4 triimcion planning process that the Ccopeay uses in develop-5 ing their transmission and distribution eyetenal 6 i 7 i t 9 i 10 11 12 13 sE l 14 d 15 16 17 18 19 N
- 4.e 20 21 22 23 24 25
fl Newton-direct 2074 O ^ = $ > = = > e r *
- t a = = r t c
= $ ai 2 in a general way, covering the entire process of planning and 3 providing electric service facilities to our customers and 4 try to put that entire procese into perspective. 5 And, I propose to discuss with respect 6 to the provision of facilities, the why we pet them in, what 7 we put in, where we put them and when we put them. I propose to start in a very basic 9 manner and at the beginning make clear that our business in the electric utility industry, Jersey central, is basically z ~ 11 i of energy conversion. 12 i We convert energy from the raw fuel, O! 13 { coal.~ oil, gas, nuclear to tha very flexible electric energy .i 14 i which we sell to our customers. l misotric ansrgy is very sinple, clean, 15 16 edaptable and flexible. You might consider for a second that from a ball socket such as we have here in this room you can 18 get light, heat, you can cook, run your radios, 7.V.s, 19 V. air-conditieners, motors, fans, vacunas, refrigerators, l.- oo [' the whole gacit of energy use. ~ 21 And, that's provided fro:s the one 22 electrical source. 23 %e fundamental characteristic of the O ,,,1,,,,1, ,3,s ,,,,,,,,,,e,,, ,,,,uo,. om,,,,,,,t 24 95 must be produced at the exact instance that it's required by ~ - y
wewtan-dir0ct 2075 1 the custcmar. Now, our responsibility is to serve the load, 2 and that basically is the energy load of the customer which 3 is what he wants. 4 But, tha critical manisfestation of that 5 energy load is the rate we must serve that energy, that is 6 to say, the demand of the customer. So we think in terms of, 7 and I probably will be talking a great deal about this, we 8 think in terms of demend, lood, which is more er less 9 synonysous in ny testi:nony, 10 Sothat rate of energy taking is entirely i 11 in the hands of the customere. There is a1=ost nothing we ~ 12 can do about it. O 13 ncv, z rerrin, to==hibit sat whics is. i 14 very simple representation of en electric system, as I say, 5 15 this is very basic and I knew scue will say "well, I know 3 what i 16 all of that", but/I hope to do is go through it and give you 17 an insight into how we icok at the whole proessa and how we 18 look at tha system so to be sure that we all view it from a 19 common viewpoint. E 20 And, I will attempt to achieve that by 21 way of a maximum understanding. 22 Tne Oxhibit 001, as I say, is the very 23 simple representation of the system starting with the 24 generating station on the left where we enta the basic 1O 25, conversica from the raw fuel to electric energy. .n.
Newton-direct 2076 l !!s then stop that energy up in transferr.ers 3 O which is really just a pressure device, electrical pressure 2 8Ynonymous with a pump in a hydro systen, to the w' olo voltaJe n 3 transmission. Then we stop it down to the primary distribution, 4 senatines called subtranscission, then down to the distribution 5 area where the residential customers are served and the 6 small commercial are served which is at the secondary dis-7 8 tribation level. And, the largo conr;ercial are nore or less 9 served at the subtransmission primary distribution level and the large industrials are marved at the transmission level. 10 5 ticw, those biccks at the bottom, the 11 industricl, large coamarcial and so forth, are the losda that 12 i O: ar co"=*r"** ***h-13 .-j 14 f 15 i i 16 17 18 19 s-Te 4'- 20 21 22 23 (~) 24 25 w
r Newten-diract 2077 1 A (Continuing) Mew, these loada h.sve various () characteristics. They have daily cycles, weekly cycles, 2 3 annual cycles, whien vc will detail in sene deJrne in a later i 4 exnibit. < a ccn' t control then.
- Ihor,e loads are weether 5
sensitivo. 7ttey are sonnitive to eccnomic activity, par-6 ticularly the industrials. rut, tha o ther Ica(s ara also 7 suoject to the san.o sensitisity, and we nust supply then on 8 Usand. 9 The ovallability of the service and 10 certala qualitie.1 of thae 2ervice era controlled by regulatory 12"* 11 12 A2 29 enyt.Sarve in geaoral tor:r.s all s () ) 13 custortra, and the. C.ejree cf int errup tions, the variebility f 14 of the voltage tnat v+ provide the se rvice at is subject to f 15 re alatory laa or re;clatiaa. 2i 16 Orc cf th.e things we talk about in terms 17 of service is the r211 ability of tha t carvice, tha lose of 18 IC8'S I70h"DilitY-19 .re thinh of it in.ter c of alay's tens v-3C 20 of load per year cr the gen.Pral criteria is the level of rallability where -e vill heve loca cf Io.12 no grsater thsn 21 one day in 10 years. 22 n3 . 07, in the generaticr. area, I raf ar to tao baaic ty;ica of f uel, the nuclear, the coel and tho 24 cil.
- o une various types.
Juat to put those in sceo 25 .~.
if Newton-direct 2078 1 perspective, in a nuc1cor station, for everple, the investe.en t 2' is very hie;h. 'th e typical figure at the prorent tire night 3 be about 1200 dollars a kilet<ste and an. energy coat of four 4 mila. 5 the nodern day casl otation would have 6 an ir. stalled cost of aonerning like 3900 a kilowatt and an j 7 energy cost of possibly 12 :ils. 8 % ccebuntion turbine would have an 9 installed cost of so ?.s $200 a kilewatt and scue 50 nila. 10 These are just orders of r.ngnitude figures and thsy are i; 11 generally in tne ar*a that I am sure Mr. Paber has testified i 12 to, but I tnink they boar repeating. O The very low anergy ccat units or the 13 14 units thrt are espable of turninc cut energy at a very low cost are the baan lead units and are the onen that vn keep 15 i l I 16 on all the tine.. 'Iho internediata type units such as ths 17 18 older coal or cil-firci systen unitu, theco still run pr.rt 19 of ths tion in the nifdlo rnugo of the cur.tomar requiraronts. ~- iv.e let then the ccabustion turbines or the pung storage units, ?- 20 21 hydro, are concrally r'in on I.oaking just to pick up the top of ths load requiracants. 22 The generation : quip.,ont hma s charne:et-23 i intic of unavailability,possibly so.me 3G to 40 porcent. P,nd, (') 24 25 that's car present experience. l V
'l
- ewton-direct 2079 1
- ha unavailability is because the units 2'
must ne out for cAintensnee and refueling and then we are 3 subject to forced cutages, the failure of eceponents, and 4 that takes the units out for the balance of the tic.e. 5 They are relatively unpredictable. fle 6 schedula the acintenance within aons limits, but the forced 7 outages we cannot schsCals. 8 To nest the unavailability of the genera-9 tion, we have to have more generation available to serve tna 10 load than tuo annual peck that va propese to serve and that ij 11 Icvol cf ruaorva is something in the ordor of 25 percent at 12 the preaant tir.e. And that's also, I think, an area tshore 13 j Mr. Rauer probably tastified. i I4 Q In setting that roderve requirerent, is tuore j } 15 soms relationnaip between tue recarve requirenant and the i I 16 sita of the units or the size of the system? 17 A on, yea, vary definitely. l 18 The size of the system would tend to 19 produce a lower lovel of rasarve and the siza of the unit, 1 20 the larger the uait, the greater the level of resarve. 21 As an exampis, this 25 percent recorve 22 that I a:c upsakin:; of is with the background of the P.2't load 23 size, the PJM units, an,d the diversity that's inherent in 24 PJ!!. l 25 If the GPU were providing that ca.no l l v
-c
- ewton-direct 20$0 l
l' '.avel of relic 111ty of lean of load one day in 10 years, 2 which is the critoria for that 2G percent,. we vocid need a 3 reserve of 75 to 60 percent, sono of our recent studies l 4 indicate. i 5 6 7 8 9 10 i~ 11 i 12 i ' Ol 13 i 14 i d 15 3 5 16 l 17 18 19 20 21 22 23 4 O 25 l s
+ s + 4 4 \\ 'd t ,__s &+gW N " j,i, t ? TEST TARGET (MT-3) 1.0 M= .122 W. 3 .. = l.l s 1.25 1.4 [1.6 4 6" j 1 f { f// ~ 3-O ., a; - 0 ' ' ^a f. g' E !* ~
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33 E.vton-direct 2081. I A (Continutag.) Now once we have the genera-2 tions installed, va operato chaca to supply the next in-3 crement of load, the nent bit of anergy required by the 4 custceurs with the lovent cost generation available, and ~ 5 ne do that uithout reforenco to the location of the genera-6 tion. And, this type of thing va call Incresmental cost 7 Dispatch. 8 And, it produces for the overall system a 9 mini =us energy cest. . tow, the tranraissioa is necessary 10 to -- I a:a talking about the higher voltago, the 500 KV, ,i 11 i 230 KV 245, th.at tran nission is ascessary to connect the 12 i a m erating senticas to ths load ara s to the major sub-O: o stations. I 14 l We install utno south coal units generally g ? l in ucstern Pennsylvania. Tha Kaystone and conemaugh 15 stations are tm exenplos. .h d the only way that can be e.*.de useful to tho "ow Jersey-?hti.2dulphia area and to 18 ecr. tern Pennsylvania in by our ability to ^_ranstait that 19 high voltage over 500 KV 11sws to the load area. 20 Tranm21saica is what permits us to concen-21 trate a 1crse s= cent of generation at the source of the 22 fuel. And, that overall ia at a pintm= cost. The pump 23 bydro requiren large traumaiscion. The large units are O uc.:sily renote tro2 the load centero. You can't put a very 25 big u=it in a very dansely populated area.
Newton-direct 2082. 1 Utilizing high voltage permits us to wiM=ize 2 the losses in the total costs. Now, just to drop back into 3 one simple fousula which is very much si::plified, in an i 4 electrie systen the power shich is the rate of energy flow 5 or danand, the power is equal to the produer of the voltage 6 and the current. 7 So to transmit a given amount of power over 8 a transmission line; if you double the voltage you have the 9 current. Now, the current in the facter that produces the 10 losses in the conductor and that's a function of the squ.we ' i II i of the curren:3 I square-R losces are the loanes that we 12 i confront la transmission. Oi 13 .i. So, the higher the voltage, the lower the I 14 i losses we incur. And, basically, the construction doesn't 5 15 g double when you go to doubling the voltage. "Ihe construc-16 tion costs are less than twic+e shat they are at half the 17 voltrga. So, we utilize high volcans for that type of 18 thing, and when we do that, you are able to carry acre power 19 on fewer lines. And I might add that in power transmission, 20 the real ultimate of efficiency is the direct current, the 91 ~ high voltage direct current. And, there you are abla to carry more power on fewer lines with louer locaes then ycu 23 are in an AC. O 1o. do have sc=. ether 2=ohic== -ith hish '5 ~ voltage BC which I don't propose to get into. The trwis-3
Newton-direce 2083J O
- 188108 provides us ficxibility to operate.
It perisits us 2 to use this :sont economic generation to provide the minisme 3 overall coat of energy to the systeen which I referred to 4 earlier. 5 Va can schedule a unit in the western part 6 of Pennsyivenia to serve a load in eastern Pennsylvania 7 without concern about that if we have the transmission to l 8 tot it to the point of use. 9 Supplying low-cost energy from remote sources 10 during generator outage, this may not be econaanic but when 11 i you have a failure of a unit, let's say in Baltimore, wa 12 i ci;;ht be riu2ning equipacne in western Pennsylvania to meet O 13 that shortago in Balti:nore through the use of our 500 KV i 14 ~: systen. 5 15 j Supplying emergency power during heavy load 16 and the generator outages is another use of high voltage. 17 Ve are able to reduce the amount of installed generation 18 .and maintain the sa:aa degree of reliability by having high 19 voltage trancaission through the inter-connection of our 20 syste:a or our pool, the PJd, as a pool with other pools to o 21 the west or to the north or to the south. And we do that, 22 we have those ties in and we achieve signiffcant tie bens-23 fits as we refer to them in terms of a reduced reserve re-O 4 wired fer a sim wel of renahinty. 25
Newtoo-direct 2084 l A (Continuing) We also provide capability for 2 conservation energy which would be oil by wire or coal by 3 wire or atomic energy by wire. For example, we at the present time as 5 a matter of national interest and economie interest are trying 6 to utilise a minimus asneunt of coal on the east coast and we were able to do that, I might say, - excuse me, let na 8 correct that -- a mininua amount of oil on the east coast 9 i by bringing in coal energy from the west, the middle west 10 cr western Pennsylvania to replace that oil, f A couple of years ago we had the II i circumstances where we had the reverse, where we had a coal O i n { strike and we were bringing in oil-fired energy from the east I 14 g out to the west. l This type of thing is snada possible 15 j 6 through the provision of the transnission. Ncw, the sub-transmission or distribution from 100 KV, 69 KV, 34.5 KV, 18 13.2 XV and 4 KV distribution, most of those voltages appear I9 on virtually every system in some form or another. Many of 90 them are left historically, we don't convert a lower voltage 21 necessarily because it's uneconomic just to get rid of a 22 voltage lovel that we don't think is too desirable. 23 Sut, these cor.nect the major transmission . O
===*i== *a sh i=aivie==2 to a, sa ta
, *a-4 95 ~ f actories, the stores, et cetera. N i
l Newton-direet 20L 1 And that would be looking at 891, the 2 little representation immediately to the right of the trans-3 r.ission is a step-down substation, transmission sub. The 4 step-down would enable us to use loster voltages which are 5 pcssible to serve the loads that we have, the individual 6 custetners, and also they are safar to use in congested areas 7 and manifestly, we can't bring high voltage into a residence, l 8 a residential aren from a safety standpoint, so, wa bring 9 in secondary voltage, the 240 volts which ycu are familiar 10 with, we bring in the lower voltage for the conversion I i j 11 squipnent, the evitching equipment, the mediu:s equipment i 12 which in cheaper than the higher voltage. 3 O l 13 co, wie a 1-er pcuer transfar a the f 14 distribution level, we use Icwor voltaga and trade off the f 15 navings and construction costs and facility costs for the 3 16 increased I square - :t losses that I referred to earlier. 17 Q tir. 1towton, you refarred to a reserve as a 18 factor in deciding the reliability or the needs of the 19 generation portion of the systen. 20 Tou used the term, reliability, in 21 respect to the transmission. what do you mean by reliability 22 in respect to the tranouission systen and why is thora a 23 need for reinforconent of the systen? 24 A Well,there is a need to reinforce the system 25 to permit the transfer of the generating capacity to the load.
l
- .twton-direct 20 Sfs I
As the load tjrews or if you add a 2 generating unit somewheres in your systen, you have to } 3 provide adequate tranacission to get thr.t to the load so i 4 there la a need to beef up the tranarission syste:2 there. 5 6 7 8 9 10 11 12 s Ol 13 ad l 14 15 i 16 17 18 19 20 21 22 23 O '4 25 N
- lewton-direct 20S7 1
A (Continuin9) Dut, really, in the final 2 analysir, the transmiselon systen, the high voltage trans-3 mission system and the generation system are all part of the 4 same package, that is, they are corpanions in the whole 5 pattern. 6 If you wers able to take small ycnerators 7 and Locate then right at the load, you would have virtually 8 no transuission need, but it would be torribly uneconomic 9 from every standpoint. i 10 You could concentrate all of your 5 11 generation in one place a thousand miles away and then you 12 would need a terrific anount of transmission, so that would 3 () 13 be terribly uneccnomic. 14 So, it's a cenbination, a tradeoff of a 15 these two that we seek, a balancing of the total cost, i 16 tranauiscion and ganaration. 17 Q So, are you suggesting that as the amount of 18 the availability of local generating capacity is reduced, 19 the naad for transmission would be increased? 20 A No, it's the reverse of that. If you were able 21 to put more local generation in, generally speaking, you 22 would be able to reduca your transnission need. There is 23 no linear relationship. for 24 O For example,1f/sona reason the availsbility 25 of local gonarators was reduced, cutages, inability to build ~,
Hawton-direct 2008 ({} sufficient generating capacity to meet the demand in a certais area, would that imply that the need for transmission into j 3 that area would be increased? 4 A It would be, yes. 5 0 A12 rignt. Will you proceed in your discussion? 6 A Well, developing further the question of the 7 need for T&D reinforcement, this is not just transmission, 8 this is all the way, we need to rainforce our system to 9 serve new load, new customers, additional connections and expanded requirements by existing customers. k II i;ow, our growth, admittedly, in Jersey, 12 j is down from something like a to 10 percent which was in () 13 I, the pre-cil embargo days in ths middle or early 1970's to 4 14 ( something in the order of 2 to 4 percent now which has been f I testified to by Mr. Raber, I gueas. i 16 shore still is a grewth there, 2 to l I 4 percent growth. We have to serve those customers to r. cot 18 odr obligations as a public service industry. We need 19 larger capacity. We need higher voltage, sece combination 'O of all those things to nest the new custoner needs. We 21 need to replace deterioratad or obsoleta egalpment and no stuff put in 20 or 30 years ago which is now beginning to ~~ 23 be either cbsolete or is beginning to dateriorste to the (]) point that it failed or is likely to fail, and then we'd 24 95 have to take it out and put something also in, and that goes
( lSewton-direct 2039 1 on constantly. Xo also need to inplement new technology, 2 trying to reduce overall coats when it's possible. 3 For example, in acw technology there is 4 the lower loss distributica transformers that would be very 5 attractive to put in and they would cut the 1osses which we i f' have to incur whenaver we put a transformer in, the cost of i 7 these raahea it uneconomic to do in the overal1 picture, but 8 as we put new transforners in, we go to the lower zoas 9 transformers. We don't change out all of the old cnes, 10 New typ, relays are avaizabis, electronic 11 relays as opposed to tha aletro-acebanical va now ha,va. 12 r.nothar element that has just come up O; 13 and which is on,1ronment 11y discus..d sad s,ositiv. is th. 14 PC3, the po1y-ch1oryl-bi-phanols, that are used and were 15 used in capacitors and transform r oil. That's been found ? 16 to be very deletericus to the envirenent. We have to l 17 replace. that equipment, the capacitors particu1arly, as we I 18 can. to 19 So, we need/51nforce our system for j 20 that. And, then we also need to reinforce and 1.9 prove the 21 ssrvice ccatinuity, to improve the reliability of the service 22 to the individual custonsr, because although we have talked 23 about the reliability of ens day in 10 years na our criteria, 24 that is primarily for the bulk power ganeration - transelsnion 25 compcnents, but se stillhave an exposure dmen to t he dia- ~
Newton-direct 2090 I tributica level that goes beyond that, and we try to minimize O 2 that as well. So, we are trytag to improve that. 3 4 5 6 7 8 9 10 11 12 3 Ol 13 l 14 5 15 i s ? 16 17 18 19 20 21 22 l 23 lO l 25 l N ~
21 RS ton-direct 2091. 1 A (Continning.) Our loed r.:ausgecrut ufic.rt 2 which we are heavily engaged in right acw, conservation, 3 they require c.quipucat. Ec have got to get more use out of 4 our existing equipment but vc also need controls and meters, 5 shich we do not have acr.<, in order to implement that pro-6 gram. We also need to protect c.tr existing systen invest-7 isent. We are trying to prevent overicada and if we have a 8 piece of perfectly gcod equip =.:nt and you subject it to 9 i continuous overloads, that equipaza is gaing to fall. j 10 I There is no way ta predict precisely when it 11 i will be but it will fail, and its life will be shortened 12 O
- i because these overloads, and :a da everythias we can to pre-13 j.
vent these overloads, and va need to continually be puttins i 14 i in facilitics and i=veat:2ent to da tMtc. S 15 g We wan : to integrato new g::ncrating facilitics 16 into the system, joint operated si:te-2:rath ty.oe equiuent, i 17 provida adequate transfer capability batwen that *Iniprunt 18 and the load, and in the casa of J0.rsey, che need for re-19 inforcing the tremissica systaa Wich you allndad to, Mr. 20 Kirsten, is match greater than our other Ceepanica because 21 of Jersey's reliance on cut-of-state sources and the very 22 chart generating position tha: Jersey la in. 23 Ue have to, in this dola proccas of previding O 24 reinforcement, uc have to prcvido edcquate construction 1 cad 25 time and in scrac things, like a tra::.saission line, it :ncy w
Eewton-direct 2092. I take four or five years from the time we decide on putting 2 in a facility till the thee we get it in. A large part of that is the thae utilisco in obtaining right-of-way and 4 repistory clearencon, end *st thet time may be when we 5 find curecives in a po ition of having to go through same-6 thing like the Pinelar.ds, I hesitate to say. I 7 Fe hwe get to acccc:nodate change in the 8 systen, changes that don't fall in the rcnge of normal 9 greuth. For c=enple, like tho&velopment of Atlantic City 10 bon beca f cing. ! ice, that isn't ene of our problems but f it'c the kind of thing that will ::pring up overnight and wo II 12 i ha re got to be ficxthl eneuch to handle that. O 13 We have got to ncet the regulatory require-i 14 i x nts, and abeve all va hevn to rendor safe, adequate and 5 ' preper nervice. That's why we do it. 16 Hou, den va put equipment in and where, if 17 1 enn refer yen to Exhibit 802, thi:: is not a full package, 18 Sust en indientics of the type of things that So into our 19 totc1 pl.mning practice. This is a guido for our decision-20 whing. Thees are the GPU trenssission and distribution 21 systen plannin.3 prectices and principles,' the table of con-t: nts, and nothing unro. Ih:t, it shows that we go through 23 ers y part of enr cy:tes frc:n an cicetrical standpoint and O m es =wt tho.: c-itaria, ch.,voitage, the economic s.tec-4 25 tion of conductor ai=2s, and other criteria that we go i
3 Uceton-direct 205. I through, sub-sutica tunsforr.cr. And, daie is r.othim; 2 acre than an outline of the shole serica, the skiw huadty 3 list that we go ch:ct.sh, buc oc objective is to produce a 4 spide for system expanaion hat.cd on ncticr.al, regiosuti and 5 Coatpany crics:ia. That's what thcce pinnM ng principles 6 sre, a cosapilation of all those things that we have gleaned 7 fresa experience and frcs: the balance of the industry. 8 Cur objectiva is to provide orderly and 9 economic develcp.unt of thc IG systua Es the f;4sth occurs to in the most orderly and e:conasic developr.ent we can achieve. 11 In the distribution /subtransmission systm, g 12 we start with the lead /Jramd projection which is a re-a 13 spcasibility of the corporeta planning L action. h t's f 14 based on consuu r cad serket inforsation, what they expect 1 e ,g l 15 ,,,,,,,,,g to b'e utilising, what the sattracion of cishrent 16 appliances may be, and co forth. l f I Population, Jc. graphic data, tbac's auccher 18 alsacnt of input to the whola process. Customer cccncetion 19 races, how many new custosera 94 cxpset in a given period 20 of tian. The systaa load x'orucast is then sliccated to the 21 individual areas, tha sv.bstation, local geogrataic load / 92 forecasts by area t.ad sub-creas, and then ve analyso all ~ 23 the other growth factors, such as local :xuing, thich may O te a to bias eho cu,,temer 1cautz. m et., hiahey con >erucci,;a, 24 mass transportation which my ccse, n.:.plcejscat otsortualtica ~.,
Nevton-direct 2094. 1 561ch isay arise, and cause a concentration of population O 2 in the given area, and also part of that is the housing 3 starts and the butiding por: sits which are monitored very 4 carefully. 5 Then thero are the abnornal growths that we 6 rust stay abreast of, such as the Atlantic City situation. 7 I suess reistively unpredictable, but you can ciake a guess 8 at what it is going to ba. 9 10 i~ 11 12 3 Ol 13 14 15 5 16 17 18 19 20 21 22 23 24 25 ~~,
i 2 f 12awtca-direct. 2095 ^ ( *"**""i"5' "* 2*** ** *** *****'" 22"*- O 2 tions on our existing facilities, age, operating performance, 3 what th1ir present supply ratings are, capability, and our 4 ability to maintain service during an equipment outage, forced 5 and scheduled, if we have to take the equipmaat out to do 6 maintenance on it. A distribution line will have troubles, 8 cars wilints into poles, things like that, which will knock O 9 a line out and we have/to be able to gat out there and roplace it. We have to be able to maintain service to the customers, eventhough that particular line is out. j 12 Co,.va deterains than what wo need to O _i 13 2 Jo. We have to datarmine what the project service data must 3 14 l i be, in order to uset the load groeth, existing capability, l operating performance we need to chtain, and ~we determine 15 16 the construction tinetable within the capital sud manpower 17 capabilities we have got, and that's been one of the biggsst 18 restrictions we have been onder lately, m power is short 19 and capital funds ars short. 90 so, it makes a real challenge in the 'I entire planning area. ~ 2' Now, if I conid refer /to zxhibit 303,
- 3 this is another overall picture of what goes into the bulk O
sawer 91==aia2 proc se, a=a 1 daa>= >=o9==e== sa thz==sh 24 '5 this whole thing, but it's a flow chart of what we go through s..,
Newton-direct 2096 1 la the overall planning process for transmission to determine O t 2 what projects we need, when we need them,which are the best 3 ones to put in. 4 Startlag over here to the left with the 5 load forecast, then data coming up from the bottom here which 6 is corporate planning data which Mr. Baber has spoken about, 7 to develop a generator expansion plan to meet the overall 8 load, and that plan expresses itself finally in the recommended 9 load and capacity forecast, and when that is approved, with 10 that we than put that together with the PJM forecast and 11 determine what transmission capability we need, capacity, i a,3 12 emergency transfer objective, we call it, or/ extended period Ol ia transfer casective. 2eese are the a ounts that we want to f 14 be able to t ransfer from one area to another under emergency 5 15 and we want to be able to do this continuously as an econosia 3 I E 16 ccadition for a base load unit, for example. 17 The 1 cad projection establishes the 18 area supply needs. The new generation requires transmission 19 and cennection to the system. The pattern of the generation 20 we have plus the new additions determines the transmission 21 requirsnent for the transmission capability we must provide. 22 That is to say if we have a heavy load 23 concentratica and if we can2pcate the new ganerativa inthat 24 area, cur requiresents for trans=1ssica, generally speaking, O less 25.will be/than if we hadto put that in at some distance and l 1
Newton-direct 2097 I bring it all the way in. So, all of those are factors in 2 determining that. 3 We measure the system espability at 4 different loads, different gener:ating patterns, to determine I 5 the limit that we have on our transmission system for 6 extended period transfers and capacity emergency transfer 7 limits with our system. We want to have our limit greater 8 than our objective so that wa are able to operate for some 9 extended. period of time or maintain scca load growth before 10 ve exceed the limit. E This is done based on the existing 11 e 12 transmissien system plus the kncvn future additions. g Ol 13 ,e11abi11ty, we want,eah 1oads, the a I 14 economy of - the economic transfers which usually occur 15 of f peak, at least in the minemouth type station, the maximan. i 16 flows wnich are off peak flows on the transmission system. 17 The system, the overall system, I am 18 talking about a ccabination of the generation and transmission l 19 plus performance within the equipment capability and stability, 20 machine and loading. 21 How, expanding slightly on the stability 22 I referred to, the point that is central to that is that in 23 an interconnected system such as PJM, every company is, of 24 course, operating at 60 cycles. This is what the customers Q 25 receive, and that's what all of their equipment is designed .,---..--,-e,---n ,-n, .,,,.-n---,,.,,,.,
I Newton-direct 2099 1 for and so forth. That frsquency datermines the speed of all O 2 the generation or generators that are running. They are fixed 3 right at a specifio speed. they can't run any other,within 4 limits. 5 All of the nachinos, nna in PJ11 ws 6 probably have 250, 300 eachinsa running right acw, every one 7 of them running at exactly the sa:ne speed. 8 Now, if ens of than tries to slow down t 9 because of a deriand upon it grantsr than the fus1 being 10 fired into that rachism, it tends to slow down, but through 11 the transmission systs, it will drev electro nachanical 12 g enargy from all of tua other machinen in tha systam which O; 13 wu1 tend to had it at tha rated.p.ad. 14 cn the other hand, if a generator hsa 15 mors of an anergy input than is being drawn out of it, it 16 tends to apeed up and the reverns happens. The other nachines 17 tend to slow it dcun so they will all work in synenonisation 18 in stability through the transnission system which holds 19 them all together, and if fbr some reason the transmission 20 system is interrupted, then you get a surge and the ability 21 for this transfar of energy, synchrecising pcuer is limitad 22 and then the machines tend topull npart, and if you have 23 too great an interruptien, the system will go unstable and 24 the machines will trip off and we have a blackout type -) 25 situation. w l
f 1 4E 3ewton-direct 20995 1 4 (Conclaulae.) The ability of the transnission O 2 systoa to hold it all together is vital -- that the high 3 voltage system -- so that is a very serious consideration 4 of the whole planning process, maintaining stability of 5 voltage - 1 mean stability of in steady state, as well as 6 in the transient conditions, transient with the forced out-7 ages of tran M asion lines I refer to. 8 If you find in your study that the syace is - 9 JULCE &WiiALL Off tha record. 10 (Discussica off the record.) 11 JULGE E4U111ALL: Back on the record 12 3 now. 2 O {. 13 TdE WITdESS: If in ymtr studies -- our .I 14 i studies we find that we are subject to a l transient probles or stability probism for 15 i 16 one reason or anothcr in the first or ::ccend 17 coatingency cutage of the trcnamissica systc=, 18 thea we have to reinforce it. 19 Q When you talk abcut che first or second con-20 tingency outage, will you briefly explain the sipificance 21 of such a contingancyl 22 A Wuen we talk about a centingency, va are talk-23 ing about some event happening that we can't v radiet. We O elan our rseem to expaad ch oucase of en7 cran==testen 25 line, any unit, for maincenance and they are out cecsaiorut11y I
ZI00 Ucuton-dircct -3000. I for maintenance, althr**th we try to do it at times that it 2 ven't be critical. He plan to have om unit our for main-3 tenance and then any other unit of the system, and I am 4 talking now about trancnission, forced out, tripped out by 5 weather or whateverg the tripping cut o" the second line 6 when the first one is under maintenance is what 1 call a 7 first contingency. 8 If ycu have another one trip out somewherc 9 else due to lightenin5 or eter:ss er whatever, that is the 10 second contingency. ,i II Q' khet you are saying is that you are develop-12 g ing alternative tranmaissica facilitics so that you cculd O-ia i continue to trans: nit power notwithstanding such occurrence? 14 i A Ycs. Under any rescenabic or credibla cut-l a e condition, v;c cry to =cintain the trencfer capability 15 5 16 ccorgency and no forth, and snaintain stability. 17 Q Vill you go on to Exhibit 3047 18 MR. lE DELLI: Mr. Kirsten, before you 15 50 ca, may I ask oua question for clarifica-20 tion? 21 E. KI2STDI: Sure. MR. IUaDELLI: Mr. Newton, I as inter-23 cared in kaos.'ing where you fit into the O sch==,eic ser.arins on ac-so2. 5,cctric.117 25 there are initials in the lower right-hand ___.,m
2.s o I liawton-direst M. 1 caracr, V2SC, d.ich stands for Vice 1* resident 2 O 2 Service Ccopany. In that you?.4nd, cyan care 3 specifically, in tha middle of the schcuatic 4 in the second handlina or captica, I slurald 5 say, Determine cad Evalusts Alternatives - s 6 Reccsarr.nd Final Plcn, cad there is circle 7 Ecrpiow sud 2.pproval, and undcrueath that it 8 hss the isi::ials V20C. 9 T11E WIT 3ESS: That VPSC would be tne 10 and arf counterprt. Ilete, basically, seere I l 11 appear la here is cita T2, the Transciasien 12 Pl= win, uhich is G2L' Trcnnuiacion T1xota.3 3 e \\ 13 That is dsne under rey -- in try grcup as pset 14 of my diricles and the revian and coordinsti:4 } 15 of ths: scrivit.y la ay ras;.o.snibility. i 16 Co, =cre Lrcadly IP sculd identify 17 d are I fall in here. 18 E. rJCLIll: Enh you. 19 JUl'JE E431!!aLI.: Off the record a 20 scarcut. 21 (Discuccica off the record.) 22 Shezcupen, racean td en.) 23 l 25 w
v 2801 F licuton-direc t 3002. 1 .!UIE MAP $dALL: Back on the record. O 2 3Y ICl KIRSTul: 3 Q ! think before the rcesss you started to re-f ar to Exhibit.'C-EM cad you rMnA*d me Mr. Newton, dur-4 ing the breck that I cut you off before you completed your 5 6 rcuatks Vith rc:pse: to.!C-303. 7 '4culd' you do that, pleasef 8 A "ac. I wantad to develop a little discussion 9 about the center part c2 this 303 2here we are dweloping 10 alternate ertas:linsien plans for generation additions and ij 11 hev va go about that, and finally the waluation of the [ 12 cit,.-antes end the rc.cces.cadation of the preliminary plan. i O; 4 13 22sica11, how va deter-ine ateernates or 7 14 c,ialuate ttt:2 ic c:: art with coaputer model sinnlations, w s 15 that is, a.odalina the cystcm as it exhibits the measure of i 16 thc elcetrical stren;;th. We have a broad range of pos-17 sibilities obvicualy in.:ombinatica chat can bo studied. { 18 A lot of the ccubination itself can be i 1 19 eliminated or a lot of the ccchinations can be eliminated 20 juat by intuition. cud so forth. Go, we do limit the maa-21 ber of ccnditier.a vo look at. Uu concentrate our effort 22 en tho :2sst prdabic conditions that will apply, trying to 23 put a reasonable icchdcry en the systcm operations that we O h*"" ^"d ** """' ** "cht"- ^"" '"" "65'***** ** develop a ficnibio syat$c, c balance betvecu the total cost 25 ~,
- l
-i 2.803 l Newton-direct M. I of providing that system and the risk of failure. 2 The overall economics, and I am talkin5 about 3 overall cconomics as the central element of our entire 4 planning process, is we attempt to balance the total costs 5 which are the capital costs of providing the equipment and 6 the operating costs of rimaf,3 th2 system, or the operating 7 savings toat we achieve through providing the equipcsent. 8 The resulting system that we have is then 9 operated to the marimma advantage, as I stated before. Ve 10 identify the critical systes's weakness using the load 11 i flows in this computer simulation. We determina alco tron-12 i sit stability, equipment that we have and equipcent that we O
- d 13 have to put in.
14 i We start with the experienced systes condi-d 15 g tions, that is, we know what the system was, what it was 5 16 comprised of at a given time; we k:ww the loads; we hacw 17 the loada 'at the major substations, the flows on the major 18 lines, and so we start with the duplication of that historio 19 point in tLne which we know pretty cicarly czactly what uent 20 into it. 21 And then we expand that to pick up whatever 22 load growth we want to postulato, whatever additicas of 23 equipment are needed, and so forth. We kncu at the tine O 24 that we had various outages, for instaneca, so ve vill look 25 at different outages as we expand the ayaten up to the ~.,
1804 13eiton-direct 3G W I point in ti:ne va,sre icohing at or unnt to achiavo. 2 We know through these studies uhat overloads 3 va have, t, hat voltago conditions we have; we vant to know 4 the nona and emergency facility loadings or we know them and lf 5 vc vant to be suro ve daa's excoed thom. Vo W:nt to detemine the impact of service 6 i 7 interntptions, that is, hcv bad vill the syste:n be if he 8 have an interruption. h n ve havo operating volt =ge supply 9 levels that we got to tscot. Thene guideline critors are 10 g,At we spoke s*ccut before. i 11 After va detcusine tho:o veel:nesses, then we 12 g formlate rc:sedien for thcao veaknessc=, uhat va shcr.21d put 2 O} I3 in to solve the problems that we have identified throu6h I 14 i these various cct:; rater scudios. 15 h possibic remodies are narrcued da.T to 16 nme degree and th:m va develop nid enat alternative plans 17 to meet the situation. h n we evalunto that electrical 18 performance. Once va ant a ramber of different plans that 19 appear equally to solve the probless or to solve it as close 20 as we can, then we develop the ecenamic comparison of these 21 alternativen. h e's the total economics that I referred o, ~~ to before. 23 We then develop the comparison of the alterna-4 O tiv = from two ece=amte ae =drotat a=d e 1 nata other con-25 cerns that i::: pact ca it. For instance, such as envirormaantal l ~.,
i 110f Wevten-direct M. i I impacts. One plan, for instrace, r.:y h:ric differing Lupsetst 2 arnironmentally thna another. Ilaw a given plan vill co-3 ordinate with other plans, oither cur picnc that va h:rre or 4 other pleas that other co.upsaice hsva is also a consideration. I 5 'h than ccupare the ples with what the at ce 6 of the art may be because we don't vant to go chcad with 7 some particular program when vc *inaw that it's going to be 8 outmoded in a 22w years. 9 10 11 12 I Ol 13 .j 14 5 15 3 3 16 17 18 19 20 21 22 23 25 I i l
1 FCwten-direct %IObi M 1 A (Continuing) Then we compara the electrical O 2 capabilities, the eccno: ales, and all the other issues 3 together and deterraine which to think is the best overall 4 plan we need to assess the uncertainties of it. And finally, 5 we determine what plan we are going to recome:end. And, there 6 is one thing about planning that I want to scy. It's a moving 7 target, it's uncertain, it's not a precise soimace. It is an 8 art, and thers are an awful lot of judgments based on auparisace 9 and intuition that h2ve to be made. But, those are nada with 10 the beat experience and best input va can apply to thbu. Ij 11 And then we finally come up with what we e 12 y recommend as being tit-2 best plea to mest ths overall systen. i Q; now, if wo eignt lech at Exhibit 304, 13 ij 14 this is smte of the specific characteristics of the Jersey 1 } 15 Contral syston and also illustrativ.e of the load cycles I i* 16 spoke about earlier. 17 IIxhibit 304, pass 1, is a picture of a 18 representative surzmer day. In it is the Jersoy Central daily 19 load curve for August 1,1973 where we show the actual hourly 20 demand across the day. And, the significant thing here in that 21 starting outc / the 4:00 to Gs03 a.m. period, thera was a 22 miniema load, a lead valley which began tu pick up as people 23 got up, industry atartsd, usd the peak load of the day occurs 24 about h 00 o'cicch in the efternoon when the indostry la O 25 working full cut. This la a sur.nar load, bear in mind.
glo) ' Ncwton-direct 3cg7 I Industry is working full cut, air-conditioning la probably O 2 at its maximus and so fo m. And than the load begins to 3 taper off to the late evening honrz. 4 The peak load, 90 percent of the day's 5 peak load, is shcyn there and the line above that is for a 6 fair period of time of about 10 hours when we are very close L 7 to the daily peak. That's a summer condition. } 8 Page 2 of 204 is the sa:se type of thing for a winter ccaditica. And hare, the significant thing is 10 that the svening peak or the daily peak occurs around supper -3 II g time. 12 y Industry is still werking and people ars Oj h==s==oxt=v =4 a f==tu. naa th e erice or gee
- to d v
I4 l in the winter is much shorter running for caybe four hours. ,j 15 This is typical of the type of daily l ?* 16 loads that have to be planned for and met. 17 Page 3 of 804 is a picture of the annual l l 18 load shape. Ucw, these happen to be the :ronthly peaks. 19 and it shows how they distribute themselves across the year. 20 This was the 1979 experience, other years will differ in 21 detail, but generally speaking, they will follow the sane 22 pattern, the winter peak occurring about February and the 23 summer peak and the annual peak in August. I 24 The seasonal vallays there that are in O l 95 the April-Nay period and october-November, are significant ~,
2.!09 sew ton-direct 1 from the maintenanes standpoint. Those are the periods in 2 which we try to do our maximaa amisten,*4 ace both generator 3 maintenance and major equipment maintenance. We try to get 4 in there to get it done so we have the bulk of our equipment 5 on and available for the peak periods. 6 L Thers is one other significant point thak l 7 I haven't mentioned and that is, it is an inherent characteris-8 tio of electrical equipment that it's able to carry a greater 9 azoont of load when the anblent tenperature, the cutsida terrporature, is the icwest. 11 So that we are abin to carry more load i la the wintertire with the same equipment than we can in tha O - r. ii' 14 End that, in the case of Jermoy Central, which is a summer peaking ce=pany, dcean't work in the right 16 direction. But, it's a fact that we have to deal with. 17 At the time of the Jersey Central peak load, our ability to 18 carry it with our equip = sat is less than it is other times 19 of the year. It's just an inherent characteristic. 20 21 22 23 24 O 25 l s r,,,. _. s-
2.1o9
- tewton-direct
-8037* 1 A (Continuing) mhibit 303 is the peak load Q 2 with projectica that we are operating /acw. It's the ausmer and 3 winter peaks. That load is growing, approximately - well, 4 the stumor la about 2.4 percent a year and the, winter is 5 about 2.1 percent. And although the growth isn't Isrge, it 6 ia significant and it nas' to be dealt with. 7 In the case of Jersey Central to split 8 that total load -- these are, hear in mind, summer and winter 9 peak loads, that Icad splita up rou$ly 48 percent to north 10 Jersey and 52 percent to south Jersey. So it's roughly a g 11 i 50-50 split, north and south Jersey. 12 Now, Eshibit 005, if we might look at
- O ia that, this breaks down the Jersey Csntral installed capacity i
14 projection, what we have now and what we have in our pressat 3 l 5 15 j 1 cad and capacity forecast over thin period. It breaks it 16 down between internal generation and extra territorial genera-17 tica. The internal is that goneration which is located in 18 the service area of Jersey Central. The extra territorial 19 generation is that generation winich is outside of the service 20 area, Keystone, TMI, and purchases frc:s Philadelphia Electric 21 are all included in the 1941 ETG au:nber there. And, it's 22 the same as we go across the entire period. 23 The extra territorial generatica. grows 04 O where sa i=tara t 9 a
- =ta= r===i========= ia cat =
~ 25 forecast. i
2.llO . ; wten-Ji t e c t 441%~ l
- a:: iLit 007 Dror.hc that (.oun furthor.
n 2 f.acking over here est tiau interut.1 generation, sur.r.er i;cnera-3 tien er st.arsr conditic ass, it brockn that dcvn hetwen thu 4 base ganaration that.e have in.7eraay, tb s energy that we can 5 look fer around tha cleck, gnnerally speaking, which is 6 Oyster creck. 7 the inter. ediato are the cil-firca base 8 load units, Narnar, Gay:3ville,.1c.ic at Giluort and then tno 9 paaking ganaratica, there is one word left out of there, it 10 snya:
- ? aching oil and gas.*
Lydro is also included in !j 11 that numor. 12 And the pecting is tha generation that 3 13 (~J') will averags Icas than 10 acurs per veck Jsy. i 14 I: ter.wdiate is nort than 12 houru, but a 15 laus than the full 24 hours. And thea ceae will run the r 16 tall day. 17 Laoting bac% at raaibit 204, tha peaking 18 vill be tao gonoratica that will pie': up tt.e peak load, that 19 part that's rea;.41 * ')0 parcont of cae daily peak. "?h o 20 intort.tadiate will fall int: tais cthor arca and the base 21 load, to the axtcut va havr. it, will run rigat around the 22 c lo :.'.. 23
- cu, 0::hibit OJ.4 is the system napa.
24 had, tais sar.ea, if wo 90 to.;00A, it ahWJ t.hu d?O oyistem O C) 25 nap at:ri tns Jersey Cantral ayaten in grain curr. rat?d into l l i Nw
2.181 flowton-dir0ct 2011-I the morthers and southern areas. It has its sister companies O 2 there also, Met Ed in the blue and Pennsylvania Electric 3 company in the yellow. 4 Now, sees of the extra territorial genera-5 tion of Jersey central is out here in Xeystone, and that's a 6 little bit mortheast of Pittsburgh right at the edge of the 7 Pennsylvania Electrio territory. It's right next to the dark 8 letters, Indiana. That's Keystone, the Keystone station. 9 And, a piece of Jersey Central's generation is located there. 10 That generation is brought to the east II i through the 500 F.V linu, the double circuit line running acrose I j the contar part of the syntam, Juniata, then breaking part O! as te== 14 2x2 aaa *= *a. =osta-I 14 There's another piece going straight on l g l 15 in to Isranchburg, tiew Jersey. 16 That double circuit line there plus the 17 one line running dewn to the south towuds Daltimore comprisen I8 the xaystone-conemaugh high voltage systen, the Ellv system, 19 as we call it. And, Jersey central is a participant in 20 l that. 21 The Susquebanna's eastern system is 22 basically the 500 XV line running from the Middletown area 23 which is TMI on into !!osensack to the east, and thsn ec=bined 24 with sons of the other linas from ::1roy to aranchburg and 5 Philadelphia Electric. - y a
al11 Netrcca-direct 1 A (continuing.) 'Ihan the other ma,jor ENV syatos O 2 en;cocut in the co-called LDV uhich cppears en the map 3 generally in the scuchsm Jersey area. It's a red-dashed 4 line runnin3 froc Saltn-Hopa Crach up to New Freedcas, and s then rt:nning up to rcens. And then thare are the dash lines 6 dava to Scithburg-Porhed River and bcek into Naw Freedosa. 7 U 74, therc's cno other point of interest en 8 this G W map, shich is the site of the so-called Ontario 9 Uydro tio, tha r.C tin which ccaos ir. at the northvasters 10 division of Pennsylvania Electric at Coho. That's the loca-s II tien that we are pl.sr.nics for vith recreet to the tc tie 12 j ta temi:u.te cccting frca Cccada frc:. Ontario Hydro or, O; rather, rr m encarte. a=d, it, m ts.n ha 3rcus.t o to 14 i the h14h-voltage trsasmissien syster. all the way on into 15 l amoy. E 16 Tant's anothar part of it. 'that's another 17 part of che entratcr-itorial 2crerction which is shown on 18 oce of the other erhlSite. 19 Now, refarri:3 to Exhibit f003, -- 20 Pl. n,*RrELLI: One second,.W. Newten, 'l ~ vhile va era on SCSA. ^= for an futura 500 Y.Y linen, there 21 is cr.c r.:=nin3 from Snic:a Ento Yorked River 24 O '" d i ' *" *ha' =:i"S "*'*h * = 'a'**
- 25 F.1ic: rp to -- is it Sayreville?
w 9
2.ll 3 ( Newton-direct .3034, I T113 WITNESS: It's running up to Smithburg. O It's that dashed lino. 3 1R. EAnDELLI: Yss, but then it continues past 4 Enichbur,IT 5 TM. WITESS: Yes, on over to Deans. 6 Mn. EM.DELLI: And are these Ifnes in similar 7 stagna of construction, the one r=aiam frosa Salem 8 up to Forhed River and also rata one running north of 9 Forhed River to Smithburg and Deans? TIIE WIW ISS: Voll, the line from Deans to 11 Smithburg is presently under conntruction ami will i bo in setvice in 1931. O Tue other tin.s have no construceton going i 14 i forward, to my immeledge. The only thing that has 15 j heen done so far has been cocau right-of-way acquisi-16 tions and pre 11:ainary contact with tha various licens-17 ing esencies, principally the Pinelands Agency. I 18 en't Ictme the correct nano of that group. That's 19 the only activity on either the New Yreedom-Forked 20 Elver line or the Torked River to Smithburg line. 21 101. rEDELL1 Doca the sbandanaeat of 7arked i 22 River as a nucicar project affect the Company's plans 23 l vith regard to these 500 KV lines? 24 TE WITNESS: It affects thers to some degree. g It delays thtm a couple of years in time but it doesn't e
i L H 'l Newten-direct M&bh I negate their need. They are still necessary althou$ O 2 we are beginning to slip them back 3 bout two or thrsc 3 years in our planning thoughts. 4 MR. B
- tt-It And suppose the Com:pany de-5 cides not to build a coal plant at the Forked River 6
site. Does that affect the Company's plans for thesa 7 500 KV lines? 8 THE WITNESS: Ilot beyond the two or three 9 years' delay that 1 just referred to. 6 j 10 IG. MARDELLI: 11011, cince ycu have nearioned f the two-to-three-year delay, was that delay arrived II j at subsequent to the decizics to chandcra the Ferkad O aiver nuclear vtant: I 14 i TBF. WITNESS: No, the pontpentment of the 5 15 Forked River nuclear plant had an affect on it, 5 16 that is, the delay. Up until this point, we were 17 still oporating on the asstrntion that it was not 18 going to go in as early as we t.%~urjat it was golig 19 in, in the late 1930's, early 1990's. And, our de-20 lays or the postponessent of those lines van affected 21 by that, but pri:narily they reinte to the load growth 22 and the need for T.ransmission into this southern 23 Jersey area. 24 O HR. HARDELLI: Are ycu faciliar with the con-25 struction budgets, Mr. liewton, for 1980 and 1931, at ~,
). I ll licwton-direct 46th I least as pertaining to the areas you are interested O 2 in, such as transmission? 3 TiiE WlIliEE3 Yes, in general terms 1 mm 4 familiar with them. i 5 h2. NA.%ELLI: If I any, and I won't prolong 6i this mch lenger, Hr. Kirsten, could you turn to 7 JC-8137 This is the tranmission countruction budget 8 as un all cau see. 9 Where does the 500 KV line show up on this 10 c=hibit? E II i T11E WI*ulES3 In that exhibit, it's up there j u= der Eys:c::: Reinforcement, Part 1, LLY Substation Oj a=d 2r=n==ission r et11 ties. i 14 i h".. NAEDELLI: And does Ite::2Ilo. 1 include 5 15 g all of the projected W linas, tho 500 W lines that 5 16 un hase bcea die.cusafngi 17 TliE WIT!1ESS: To the e=tont that they require 18 netivity and enpenditures in this pariod of time, yes. 19 No.r, vhnt we are presently engaged in is a 20 re-evaluation of our entire timing of these lines. 21 And I beli:ric that the numbers on 813 do not reflect I se:no of the postponcoants that we have talked about. 23 ! 1 11ces, they do tio in with lir. Baldassari's exhibits 24 O ""d th"* ' " '+7 I di'c""" d t*- I d' "*a= *a s intro +,:ce new r.tr*ers which are ntill unofficial. f T I
Newton-dircct All 6 M i HR. WARD 1!LLI: Yes, and you have correctly O 2 anticipated my next questica, Mr. Newton. 3 would it be fair to say that some of these 4 monies shows for Item 1 for the years 1980 through 5 1982 will, at the very least, slip into later years? 6 THE WITNESS: Yes, that's a fair characterisa-7 tien. 8 MA. NARD 3LLIs ilould you be able to give us 9l a rough-estimate of the amount of money we are 10 talking about? l; I-11 THE WITNESS: These are still preliminary l g 12 numbers. Included in the exhibit, 913, 1931, is i O: 23 an e=re=aitare of 1:241. e 14 !!R. NARDELLI: Is that la million? j f 15 TDE WITN350s 10,241,000. That's as shown l i 16 os 301. In our revised budgeting, we expect that 17 that number will change to about 17 cillion 6, 18 approximately. 19 Now, these are prelisinary numbers and are 20 subject to change in the presentation before the l 21 Boards and so forth. 22 MA. NARD 3LLI: What is your latest, best 23 eatinate for the nue.ber that appears in 1900 of 24 8,552,000 as to what the actual arount will be 25 for that year -- I should say for this year. ~,
2187 tiewton-direct 3411-1 T3E WIT: stas I really can't give you that O 2 number. I have a nunhar here which dewsdt look 3 correct to me so I would rather not say. 4 MA. SuDELLI: Without giving it to me, can 5 you tali na whether it's lower than the 4.5 million 6 that you have on this exliibit? 7 Tut WITNEscs It's higher. 8 HR. MARDELLI: Then you don't have to give it to me, tir. Newton. (Laughter. ) I 10 noving on to1982, do you have a revised number, ,i II i and once again, accepting your representation that I 1 3 is a prelicinary nur.ber? z i =1= *1,===> rar =nes e a cateverr tri==1r Oi the LDV, ths LDV would go fren 16.9 to 35 in 1982 i l 15 with our vary prelininary estimates. l i 16 HR. tLuDULLI: That's 3.5 willica? I7 TM WIT:iES3 Yes. That's very much reduced 18 in 1982, of course the offsat to that occurs out I9 in 1987 or 1988 when the originals would have been 20 sero and now we have to pick up a place. But for 21 1982, that's the situation. 22 un. MARDF.LLI: Thank you, Mr. Newton. I'm 23 sorry for interrupting, ttr. Kirsten, why don't you 24 go ahead with your direct kastimony. O 25
3,11 8 Wewton-/ ' mact M I gy gg, gggggg, O 2 Q I think you are addressing Exhibit JC-800A 3 which is the GPU system map? j 4 A Wall, I did cover that, and I think I was just 5 referring to 800D which is the Jersey Central transmission 6 map, and I just wanted to r.ake these points about that. 7 It's pretty snuch self-evident. It shows the northern area 8 which is compriced of three separate divisions and the 9 southern area which also has three divisions. 10 Bear in mind that the southern area 5 11 g has about half the load. It has within it the Oystor Creek 12 g generation which is base load, and then it also has the 13 Q j sayreville and starner stationn which are intor=ediate generating 14 facilities plus sone combustion turbinsa which ars psahars. } 15 nut, the basic ties into thia area at ir 16 the present ti:no are this cue line down at the botto= or the 17 j top here, coming into the Sayrevilla station, the 230 KV l 18 line. And then thers is one interconnection over hora to I 19 Publio ',ervice at Plassant Vallay which is also a 230 ::V l l 20 line and another one feca Ceokstown to Lumberten. That's 21 all we have in thin area. 22 This has about half of the Jersey Central 23 load and we have a cinimum amount of generation here and 24 a lot of the Jeraay generation is extratorial gsnaration O 25 which has to be brought in which is brought in tecnceiasion, ~,
9Jo9
- icutca-direct WFktr I
and these lines are all wa are relying on at the no. test. 2 4hensver Oyster Creek is out, as it was 3 for an extended period of time, the only thing we hava to 4 rely on are the remaining staticas which are oil-fired 5 and our transnission to bring it in from other areas. 6 Now, that shortsgs, as I will derslop 7 later, is the primary motivation for the Smithburg-Deans 8 line or the Deans-Smitaburg lina which is 503 KV. 9 The voltage, as shown on this sahibit, 10 8083, there is some 115 KV, sous 49 XV, 34 KV and the various II j major substations are all shown here. 12 y I don't nos any need to dwell on that 13 []) any more. It just gives you the pictore that there is this l f very sharp geographical division which has to be bridgad by I4 15 transmission to give na the relaability and economy that is 16 required. l 17 18 19 20 21 22 23 24 25 i
11:2.0 a -9021r licct*,3-direct I A (Continuing) Now, if I could develop this O 2 thought by referring you to Exhibit 809, this illustrates i-3 the southern Jersey Central area's dependence on bulk trans-4 ,g,,to,, i 5 The lett-nand axis of this graph is 6 megawatts, thousands of kilowatts and the years go across in 7 horiscatal fashion. 8 So what we are looking at there is a 9 Plot of the negawatts of various quantities and load. 10 Now, tha basic one is this slanting line which is the II southern Jersey load. It's rising at this 2.4 percent which 12 j shcwad up earlier. O 's 2 a es *
=====erir isa *=- 14 ,,,a internal generation at the desired point of reliability l 15 which is the one day in 13 years, and that is the load that 16 can be supplied by Oyster Creek, sayreville and Warner, and 17 that is at their experienced availability, and 1 coking at 18 the entiroty of the year, is sonething like 500 megawatts. I9 500 megawatta we enn serve with internal generation. 20 We have a lead in 1981 or will have a 21 load in 1931 of about 1450 r.sgawatts, and that horizontal 22 lina, t hat first eno is the load that can be supplied with 23 the internal gensratica plus existing transeission import 24 capability. O 25 The capacity emergency transmission l ,,.--r_-
1811
- fcvton-direct M
i limitation on the liar.a we havs in the southern Jersey area O 2 is th. diner. ace hee-.= uso -d 500 or.uo= 10ao -va-3 watts. And, that's wnat we can get across those lines. 4 The requirenant is for 150o as a load 5 in 1951, and we Are just Dar@ly able to scraiShy in 1931 6 with that amount of load. That is, x,eeting our reliability 7 requiracents with the existing tran=F_tesion. And, this.is 8 based en average conditions. 9 If you have a serious situation, like 10 a tornado or a cerious storm that wipes out the transmission, 11 then this picture is entirely changed and we sinpiy can't 12 serve the southern area of Jersey. ,i 13 Now, adding the saithburg-Dean's 500 XV f 14 ' line which is due in, in May of 1981, raises the capacity i -15 import capability frca the 1500 mark up to about 1900. I 16 That is, it adds sczathing in the order of 400.:ogawatts of 17 import capability. 18 So that with that added in 1981 and 19 the load ccatinuing to grow at-this rate, we will be able to l 20 get through to about 1990 without being in a real serious 21 condition. 22 I mean, we will be in 1990 about where 23 we are in 1980. But that is after we get the Smithburg-Dean's 24 lina. 25 And then following that, something elsa s
1111 Cowtom-direct -M22-1 has to be done and that's where the Snithburg-Forked River-2 New Freedon-Forked River lines come into play and provide 3 additional import capability. 4 How, this exhibit is one way to look 5 at the situation. Another way to look at is is on Exhibit 6 310. And here we have plotted reliability versus time with 7 no reinforcements. That is to say we don't have the Smith-8 burg-Dean's line in this tabulation. And, there is a slight 9 difference. These are approximate figures and based on different studies som haven't been able to co.relats the j time precisely. Dut this shows, the loft-hand axis shows O! the =eected no her of re re h = wee = lo = af 10 4 o===rrs=c s., i 14 i And that starts up.at the top here at about 43 years between 5 15 g lossos and drops de'wn to 30,2), down to 10 years. 16 The planning chjective, that 10 years 17 between ccourrences, is the same thing as one day in 13 18 years. tad, that's our planning criteria. 19 So without adding any transmission rein-forcement, our analysis, our studies show that we would drop 'l below our planning objective in 1932 no Now, bear in wind in our earlier exhibit 93 ~ it showed this as occurving about 1931 so there is a slight 24 disparity, nut, for illustrative purposes, I think it's O ,s ~ all right. And what happens without any reinforecomant is t
Ii il2.3
- lewton-dirret C23-I the reliability drops off very, very rapidly fro.m one day O
2 in 10 years in 1982 down to one day per year in 1987 and 3 then continuing on da4n. So this is just another way of 4 looking at the aans situation we looked at in Exhibit 809 5 except looking at it in tems of reliability. 6 And, in both of these cases, without 7 additional transsission, the load west be served from the 8 internal generatirn fro. what transnission we have,
- and, 9
it tells us from cath of these viewpoints that we must re-10 inforca the transmissica in this period. .Tnd, that's why 11 the Smithburg-Dzans and the Sr.ithburg substation are 12 scheduled and are moving forward for the 1981 in-service g 13 data. That selves the probic= for a number of years based 14 on conditions as we ses thera. j 15 If the load growth changen, if some new i 16 ' industry moves in,than welnve an entirely differset situation. 17 18 19 20 21 22 l 23 24 'O [ 25 g
2.12.4 Newton-dir0ct 2004-- (Continuing) Wow, referring to those both - O 2 incidentally, both were based on reliability peak load 3 ,,ngggg,,,, 4I Imoking at all, it's just another way 5 of looking at the same type of thing from an economic stand - 6 point. It shows what the imports irom an econcesio viewpoint 7 will be over this period.- we looked at 1980, 1984 and 1988 8 and the various bar graphs there are for 100 percent of peak 9 load, SS, 75 and 50. And, it shows imports when Oystar Creek 10 is available, then the upper part is the addition of the h. imports required to replace Oyster Creek generation. II I i And then in 1930 we need to irtport from O an econo te sta avoint ser.etain, in ereess of 1,000 u ates. l 14 I g That's at about 75 to 80 percent load, peak load. Andi that's 15 traditional. 'Je don' t import at peak because we 'ha e'these 16 intermediate units on end all of our peaking units ca. I7 We have them all crn at that time. So, I8 when we are down 'away from peak, the requirement for economic 19 ingorts is greater. oo ~ And then in 1934 it goes up to al:sont 21 1300 megawatts,and in 1988 we are up to about 1500. That's 22 ths ir. port f! rom an econor.ic standpoint which we must meet. 23 Sose have locked at it frca two differsat 24 standpoints, reliability and from requirer.ents to import from O 25 an economic standpoint. And in both cases it denonstrates 3 0-
2.)25 Newtcr_-direct 4029-I clearly that we need additional tramenaission sepability in O 2 our south Jersey area immediately, and we will need more 3 reinforcement by the late IS30's, early 1990's. 4 Wow, the Exhibit 812,this is the distrib a= tion-constructica budget and these also are the numbers that are shown for 1981 and 1942 in Mr. Baldassari's exhibit 301A. These are not changed in our revised budgets because there is 8 nothing to affect them like the LDV did in the trasamission. [ q i But the basic part of that whole project, the major piece, 10 is to su W new m h m 1!aw, in 1991 we are 1 coking for 12,500 II 12 j new residential customers and 1212 comercials for a total Q{ of about 13,700 new customers appearing on Jersey central's I4 lines. l 15 our obligation as a utility is to serve ~ 16 those customars, if va can, Just to connect each of those I7 custo, ors up, each of those13,700 custoeers, on the average, 18 we are going to have to put out about $1800 just at the customer's prenises. That's for tha matar, the service and 90 if it's underground - and :nost of the Jersey connections are, 4 21 the underground servica, the transforner to serve hits and 22 any secondary extensions that are necessary, it will cost 23 about $1S30 for each. 24 So the total that we got to budget or that O I es we have to budget for 19311s almost 24 nillion dollars, merely - y p
I 112.1, Cawton-dircet -4029-I to cennect up the new customers we anticipate. O 2 =, the other -sor.p rt of that 1. ta. 3 total of 39 million 700 as the forced work. And, forced 4 work are thlags that we know will occur. They always occur, 5 but we can't Ludget for them because they include such things 1 6 as storas, stora damage, car-pela accidents, relecatloa of i 7 facilities due to highways and things of that nature. These 8 are things that we can't prediot, but they always happen. 9 And, they will be spread across the system. V 10 If we are lucky, they would be above l 11 this level of 8 million 6 shown for 1991. 12 system reinforcement is another large 13 itets. O; And, if I might. refer you back to the first exhibit, f 14 001, just to give you an example, we are adding these new s i 15 customers, generally speaking, down here in the residential, I 16 small commercial area. And, the $1200 per customer that I 17 referred to takes place down in that area. 18 aut unless this secondary or primary 19 distribution system or subtransmission, unless that's adequate 20 to serve those new customers, the whole quality of service, the voltage, everything else to all the customers that we put 21 22 on, all of our existlag customers are degraded. 23 We have to be sure that we rainforce the 24 system back in there. We have to reinforce our substations, 25 add capacity there, because when you add new customers you T
3.117 Newton-41rcet 1 just can't de it without putting additional blocks of equip-O sure 2 ,,ot to or..it. or .,. city in ore., to x./ta s r==. - 3 not just tying a customerca to a dead wire, so to speak. 4 5 6 7 8 9 10 11 12 i i 5 l 13 O i 14 i s 15 3 i 16 17 1 18 19 20 21 22 23 24 25 i -s
3I1.D 87 Ureten-direet ?Eh A (Contfyring.) So that the g etem reinforce-3 O cent which tantecae tr==te t, 4==t=2==<a er r=>12 rr=> ce=. 2 re7 seing s transfoi 7er, for inttevre, or webuilding e ifue, 1 3 upgrsding a itne frey 13,000 to 34,0^0 den w go bsyend 4 5 the e:: Tent eazTytrs.cbility of that line, or the pc.rcr 6 c'iTr71:3 08P5b111tY of it. 7 'rhen thers is the -ther mitec11sneous odds 8 end e-ds that sit edd vp to eboe.t the 39 t.illion bu4ct that 9 o;;'.trs in 1981, as ?bvn in h5151t 301. 10
- 14. HARDElLI:
Mr. Merten, cre ye: saying in 11 1920 7ev 5'111 2(4 11,742 csetxtre? ' DIE 14TfES3: Yes. Tbst is the forecert. 12 ; i i 13 F3. IM W LLt: to 7en how hew that projec-j f 14 tien ie. dotng in ter=s of actuals through the present 5 15 tice7 I 16 THE win 1ESS: I am serry, I dcn't specifically 17 'cnov. Mbe ene of c7 celleagues ray tunre it. 18 JU1'Cis P*aSEM.L: Cff the record. 19 Qlhereupen, there vra on eff-th-rMord 20 discunslen.) 21 IdrGE W"SJALL: 3 ck en the reecre'.. 22
- 19. NR.EIll:
A:l fe I red the bud ct nu::6e: 6 23 for 1930 correctly, tis you are projecting 24 1?.,392,0C0 *: To aarcelas.ted with the addition.nl V 25 custa.ncrs you beve straady mentiened? w f
i, al 2.9 I Ucwtoa-direct 72% l 1 Ti1E k!LTMSS3 Ycu're correct; that's the gnanber O 2 that appesrn here. And, I fLud that inumber incon-3 sistent wit.h the otter nwhern. I don't icmw exactly 4 st.y that in so, theunh. I uculd think it would be 5 half again as large becausa that's barely $1,000 a 6 cuatrwr nad I can't reconctie that with dat I know. 7
- 12. MAEELLI:
You have again correctly antici-8 pated my next questien, Mr. Newton. Uc did a quick 9 calcutatica that for 1930 that would osan a per cus-10 tener connection charge of 01,147, whila if you do i 11 the similar arithnetic for 1931. you got a per cus-12 tooer charge of about $1,779. O 13 aod uhtte l':. z.e it, cor 19 2, tt's 31,9c4. 14 But there does scers to be a tranendous increcca bc-8 15 tween 1980 and 1931. Could you check those fi;ures t 16 at year cetrrentenec? 17 T!!C VIti?I>S: I will check it, yos. 18 JtH;42 t').nS11ALL: Off the reecrd. i 19 g,.nerettpon, there was an off-tha-reccrd 20 discussion.) 21 JU003 MAESMALL: Back on the record. 22 A (Contimiing.) Ucv, referring to EAhibit 313, 3 uhich we have toliteil tbcut a1 reedy, we have in 1.931 and 1932 24 l {) virtually no generneirr-rei.ntact tTomminnica recuirccents. 25 '7nen uc hcve a new unit gob.7, in, tl at curber becccas very i I
t t f 1130 Newton-dirc-Ot 4;;;, l 8 3 large, of course. O 2 "- c= ===== = === t d 6 vr t= r ur tha> urce industrial customers that will need service, on extensian 3 4 of tranmaission or an exto.uim of.2 sub-statim to supply 5 them. It's a fairly scull number. s The forced work in tha unam'asica is not 6 7 nearly as big. We don't have the expenditure that we b.we 8 down in the distribution systen for ston.s. />=d, there ara 9 not as many poles. It's bigger in, for instance, strea3er 10 tacers and that type of thing. i 11 .i 12 8 O 23 .-i 14 5 15 I 16 17 18 19 20 21 22 23 O 25 w
I 1131 0 Newton-direct OJh. I A (Cont < =ing.) The systen reinforccuent is a O 2 susch bigger figure, and I have talked earlier about the 3 lower Delaware Valley numbers. The North Jersey 115 KV 4 transmission systesa conversica is something that just has 5 to be done. We are starting it. 6 'Ibe 230 KV reinforcement pro 5ra:a, these are 7 just to upgrade the total transmission systco in that area 8 in order to provide a conti=::a1 grcrsth, contie. sal reinforce-9 ment of trana=f maions so we could get frca tha hip.er 10 voltase 500 K7, and so forth, do.n into the point of accd, i II j the lower voltage requirements. 12 g Major stepdown sapply static =s, there are a O m oher of dtfferent sub-staticas im,o1ved in thee catecory, i 13 e 14 l [ but it's a large.one, and then the subtransmissi::n system j l l 15 accounts for the balance of c5e systeza reinforecuent which i 16 in '81 is about alssat 30 million. I7 I Other is miscellaneous trans=iscicu equips:ent I8 that is going in the miscellencous charaa, and then the 19 other major ires in '81 and '82 is the Ontario S dro tie. / "O ~ In 1980 it's something like 2 million 3, and we expect to 21 spend -- 22 1R. NARDELLI: Is that still your best esti- '3 ~ mate, Mr. He.iton? 94 Q Tile WIT!E5S: At the emment, yes. ~ 05 ~ MR. 1WILELLI: Could you quickly ecil us h:r.a 4 J
- 1. 13 1 G-2 Newton-direct
~ ' '
- the Company could epend $2.2 million on a project 1
O 2 for 1.hich there is not even a letter of intent? 3 tie WITE SS: Well, there is a letter of in-4 tent -- there 1 a 1ctter of understanding I should 5 say, that providas an agreenent between our two 6 systems, char is. Jersey Central, CPU and Ontario 7 Hydro, that vs will jointly continue aggressively 8 with cur cavirc:::cetal studies, our lake bed surveys 9 and all of d.ose things necessary to get the project 10 licensed in the tf== that we need it. i 11 !!cu the tir.c is the very critical thing. The 12 g shortage of 50. Icad generatica is critical in O; 13 acr.sc7 cad e=t'a se,.er..ey a the proposed 14 cipicnt and umr of the 7:oject and the purchaser ^ 15 of the Ontario Hydro energy, a thousand megawatts. ir 16 The time *%: Ontarlo Hydro vill have it 17 availabla i: Irca, ucil, the present until about 18 1991, 1992. '1he ear 11 cat that we can possibly get 19 the equipcant in and get tha tie operating is by the 20 cnd of 'S4. If we losa a ynsr, and by the way in 21 that arca you have pt to cat all of your con.struc-22 tion done, particularly the cable work, cable laying 23 u der the la':c, you hava got to get that done across 24 Q the erector. You can't do say in the winter when the 25 lake ha: Ice all over it, and if you miss cae season
1833 G-3 Newton-dircet % 3. I you are out for the tull year. O But the critical time, or the esost bancficial ( 2 3 time to us from the standpoint of saving smey, r,ay-4 ing the customers money for energy, is in the early 5 years. The benefit, the economic benefit tails off j! h 6 in the heter years. So, getting it in 884 is in 4 7 the best interest of everybocy involved. We wsus it 8 in then and the Jersey Centrai custc=ars will benefit 9 the maximana from the availability of that energy, and 10 from 1984, and if we don't cun inua with the pre-f 11minary survey work which is mhraced in this tver-II l and-a-quarter milliou, there is absolutely na way O th.e,e can m.u. a u in.oe m co oto. '3 14 i So, we are taking a calculated rish. h 1:hird r 15 g it's a minimal risk, but indeed we are takine, a cal-16 culated risk based on a letter of unders andi.y;. 17
- 14. NARDEI.I.I:
lir. Kirsten, vould you So ablo 18 to make that letter of understanding availabla es the 19 partiasi 20 HR. KIRST W: I will find out whac lottar Mr. 21 Newton is referrins to and I will revir. it, and if it is scueching which is la a fom in uhleh y:na hava 23 in mind, we will mko ic available. O 25
2139 d-1 liewten-dircet C 4. 1 IC.. I M LLI: Mr. Ucwton, you senmed to have O 2 cmde a discinction hctueen the lecter of understand-3 ing and the letter of intent.
- l. hot is tha. b. asis of 4
that distinctica, that this letter of understanding 5 to which you have refrrred does not contain any of a 6 the financial details as to how sa:ch the partio 7 would owe each other, what the ter:a of the arraa.Sc-8 ment would be, and the costs that twid be paid for 9 the power, that sert of thing? 10 T.18 UIT.iESS: Basically, that's true. 'Ihe = l 11 difforence may be more superficial than real. Teen 12 wa first vore considering thin, we proposed to have O 13 a iceter of uneerstandins shich wou1d.ec forth the ~; 14 j details of the actual centreet which toe.1d caka pLaco, l 15 the construction contract, the power supply centreet, 16 which would include the rates within it, and t.hu 17 operating contract. All of those things vould be 18 covered, at least in incent and dollars in a Ictter 19 of understanding. 90 Now, that's sor:ething that we have not bcea 21 able to achieve beenute of proble2s in t.he canadian 22 area of principally law. tin bi p at aingle hung-up 23 is the concern up there with the possibic export tax 94 O "ad t' h*r """ a" " 5"" t *i'" a***= ' :'- *'*a "* ~ .'5 ~ vculd find the entire project uncconoaic.
236 2G-2 Newton-dircat 3035. 'Wey can't. datarni.'.e thec at the present time,, 1 2 so we aire still trying to detemine that end nego-3 tiating that point. Tha letter of un.!crottaldir.g decen't picit up ell of th ee ds,tr.ils tot does pro-4 5 vide for the ter.a. the fact that we will share all 6 of the prelissfaary inhe cu2 vey costs, ?.B:c hottcu 7 survey -- 8 .T. IMRDELLI: Elave you been personally in-9 volved in the negotiations with Cntario liydro? 10 MCC WIR:2SS: Yes. l 11 Nt. MRLLD In it fair to say thne a con-e 12
- .:::=:: tier. cf this straq.w:mt is not inraincati Q
13 ) TIE W124ESS: I believe a consummation of this f 14 arrangem.ut will be offected within the next year. j 15 I would regard that as indnent, but within the r. ext i 16 month, no. 'I 17 12, ira 3DELLI: /.nd how are we using the uord 18 "consucanation"? Are you saying within the ne tt year 19 l there would be at least a lettor of intent? 20
- ntg virar,ss:
I thirJe within the next year we f 21 would have all the contracts in placa. 22 h3.. ILWSELLI: Are you able to give an esti-23 nate as to when we m12ht czpect a Iceter of intent? 24 ele VIti2SS: I would think in the early 25 og e31 ve can expect a letter of intent.
2F% 4-3 levron-direct I
- m. 11.GEF.LLI!
l>ocs there exist a possibility clu:t the ottstecle cf the e: sport tax will u.wer bc 2 ,3 surmatted? 4. W. Z' CECO: I ca c.urc cir.: is a possibility, 5 eertainly. A res:ote enc, uc think, and believe, but 6 life ir a very uv:crts.in busincas so we can't be sure 7 of anything. 8 f.2. IMRDE'.LI: Off the roccrd a seccad? 9 A";Z PJJJIL8.LL: Cf! t*wt rocc d. 10 O b rcqns, there.:24.an aff-th4,-record !~ 11 l t...u c s La.) 12 .mcc2 mesnu.L: Dack on the record. .!~ (] ) 1G. T.C.DSLLI: lir. 'hston, on J0-013, in the 13 a 14 gypgg,of 17 nilli.ya gg; 1J: d0 still ycur best enti-5 15 s to for those ecut:7 i 16 ng 1113C33: To the bout of cy kuculedge, it 17 is. Un cm check that. 18 G. I!/CF.:LLI: At the lunch break or during 19 the lunch breth, cocid you chc d that wi.th your 20 p,,pp; 21 g, yst:. ye.,, 22 lG. 'JM. CULT : I.nd get back cs u.e after lunch? 23
- n7. p;7g33
yc,, 24 @.. IUEELLI: Fcr tiw year 1951, you have 25 indicated a recuction of ch.,At 600,000 in Item No. 1, ~,
- s. 7 t 'it '37 2G-4 Jcutca-diroc* ~ 40%. A 1 under cystcu rainforcescat. dro chara any other O 2 reducticas you arc am:ra of far tha year 1981 that 3 would further redace the figura of $23 million for 4 total traassaissical 5 T.'C UIT.T.SS: I :a na: aucro of-nay spceific 6 orm. I think there uaquesticcing vill be certain 7 at 1cuat sas11 reducticas. I can't quuacify thca L s right anu. This is is the procesc of L;eihr, preacated 8 s 9 to tha Socrd and adopted. 10 ida..%.EDdLLI: Dut you do sco that n:chr of i i 11 $33 millian for 1031 soing icuer rather than higur? 12 T23 UE: CSS: I think the poasibill::les are O 13 very stroos, that'a eba cuac, yes. s l 14 E. E n ULI: 'dhat abcu: the fi.3uru of. j ^ 15
- 91.3 million for 1982 in total tran
- .alssi.uf Ycu 16 have ciroady told u ab:r.2t a redacciaa of cppreal-i
. s . s 17 cately $13-1/2 millica for It:a llo.'1 under Systda Eeinforeme. Jiro yas cuare of. y othe poshibio 18 19 reductiona? 20 .nE Wl'.OICSS: I ca looking hkre fp: anather 21 picco of paper I hree ths: cay -- na, 1 Am not at 22 the e nt. Iccncheckthneoverthebc.achoonbreak, s I think, and possibly giva you soca ins? fit. 23 24 Q m,its,92tti y n,., thsak ysra. I vauld liko-25 to havo yea chech thosa mrl::cr for '31 and '32 cvsr ,["s
2.83 8 2G-5 ucvton-direct a, I the break for lunch, if you could. O 2 Tils bi1TESS2 If 1 might add one point while 3 va are talkins about the Ontario !!ydro tie, may I 4 say as of this afterr. con we are making a filing with 5 the ERA of our c:r.rironmental impact state::wnes, a 6 very volt:minous doctsient, that docue.cnts frcia our 7 standpoint all the environ::nental impacts anticipated 8 frces the 4ttario Hydro tie. So, that is accething 9 that is going in as a result of a groot drat of 10 offort by a great many people in cur orv nization. i. 11 Eo, uc are not takirs this project lightly. .= 12 .WDUS FRS'.ALL: Would nou be a r, nod brcchi.3 O l ~ ' 13 point 2 311 riche. u. 111 brcou for zu=ch ro. ma i 14 he back here at 1 15. j 15 O!hereupca, a luncheen recess is taken.) ir 16 17 18 19 l 20 21 g l l 22 '23 24 25 j l I 'w
4 2.139 i M I A F T R__R NO O N SSSSIOM O 2 JUDGE NAkSHALL: Back on the record now. 3 FUltTEXR DIRECT EXAMINATION 4 gy gg, ggggggg, 5 Q Mr. Newton, at the recess we interruptad your 6 discussion at the point where you were referring to Ishibit 7 813. !!ad you completed your re:sarks in respect to $13 or do you want to continue from that point? MR. MARDELLIs I do nota that Mr. Newton 10 said that he was going to attempt to g et some E = II i updates on the totals of JC-813. 12 THE WITNESS: Yes, 312 and $13 both. g 13 I He have dcne that and accepting the fact i i I4 that what we have are preliminary budget 1 j 15 figures that have not been acespied, the so-16 called base budget that we felt was necessary 17 in transmission compared to 8134 we expect 18 for 1980 total transmission expenditure of 19 $20 million 600, approximately. 20 Q Can youtreak that down, Mr. Newton? 21 A Yes. New customers approxiantely the sass, 22 1,5133 forced work, 850,00G; the LDV construction in 1930 23 is about11 million 6, as opposed to the a million 6 en 313s 24 and, total system reinforcement, 15 million 3, as oppossa to 25 12 millica 030. onthrio !!ydro, the same. So, a total
b 2.Flo Newton-direct 4949-1 of 20 million 6 as opposed to 17 millica 97. O 2 MR. NARD 8LLI Could I stop you there a 3 seccad? What accounted for the increase in 4 the Iower Delaware Valley sabetation and 5 transmission icilities from $3.5 million to ) 6 $11.6 million? 7 T33 WITx253: 1 hat's basically the 8 recognition that we are going to have to 9 pay for the Smithburg transfor:sers in 1930 10 to get them in service and in '81, which is !j 11 an acceleration of the pay:=ent frca what we 12 had looked at in Exhibit JC-301A. So, it's 8 O; 13
otatav==r ta== = *r===<== as $2s =t21t=
f 14 or so from that Smithburg transforsers from l } 15 an '81 payment to a late '80. p l r I 16 MR. NARDZLLI: When you say late 1980, i 17 may I assume that the Campany has not paid 18 for it yet? 19 TEE WITNECSA I believe it's not been 20 paid for yet, no. Not to my knowledge. 21 Then, in '81 you had asked in total, 22 and we ex pact to have a total transmission 23 construction expenditure of 33 million 6. 24 'Ihat's as opposed to the 33 million 035 in' s 25 Exhibit 813, and in 1992, we are expecting a ~..,
-r 2 14l Newton-direct -0041 1 total transmission constructica expenditure 2 of S8 million 5, as opposed to the 91 million 3 3. So, there is a definite reduction in that. 4 As I stated, that change in this mort 5 recent budget is because of the postponement 6 of the postponement of the Forked River-7 New Freedom and Forked Itiver-anithburg kines, 8 500 KV line, postponsment for about three 9 years. 10 PtR. MARD2LLI: Well, that particular i 11 postponocent, and correct me if I am wrong, 12 g accounts.for about 13 million of the reduc-Ol 13 Fro. the fig res you have uon in 1,,2. I4 given me, I gather that there are other re-15 ductions because the total reduction is some- ,i 16 where in the vicinity of 33 million. 17 TWE WITNESS: Yes, there are others. 18 In '82, the reduction in LDV is for '82, as i 19 ~ you say, about 3 million. 20 North Jersey 115 KV conversion has been 21 slid back about a year - two years, really. 22 so, the major expenditurs will come 23 after 1983 in that category. 24 Upper Jersey 230 KY is dcwn about 3 5 million in '02 Step-down supply atations are j --,------,-.,,.a, --.---,,- -~
I 2.19 2. i liewten-dirset -3649-I down about 45 millica. Subtransmission is 2 down about a million two. Reinforcement of 3 existing stsp-down supply stations is down 4 almost two million. The Ontario 11ydro tia 5 figure is virtually the saan. So,that 6 accounts for the reduction of so=a 33 nillion. 7 8 9 10 11 E 12 3 Ol 13 l 14 f 15 i 16 17 18 19 20 21 22 23 4 O 25
i 1,i 't3 licw ton-cirect 40'i 1 uR. sARDULLI: ithat was your figure for O 2 Cntario Hydro in 13G17 3 Tan MIT.ir30s 3 nillion 076, the saue. 4 MR. IIAnD3LLIs And 19307 5 THE WIT:tESS: 2 nillion 234. 6 0 Mould you give us that figure again? 7 A 2 million 254. 8 Ma. NAP.UELLI: In other words, the sane 9 figure as contained in JC-313. 10 THE WIT 3tS3 Yes, in '32 it's 725,000 -- !j 11 40 million 725 as opposed to 43 millica 750, e 12 virtually the sama arount. ({) MR. MARDMLLI: Mr. Newton, if you don't 13 i g have. a. letter of intent by early aumasr 1901, 14 will thsse expenditures for tha antario itydro e* 15 ,i I 16 tis begin to edip out of the tir.e period wo 17 see reflected en JC-314? 18 Ti!E WIT: esc a If we don't have a firn 19 and not jcat a lettar of intent, but all ths ' 2'O agrescents in place, I think by certainly 21 late 1981, the '82 figures would slip if not IR 22 disappear almost totally becauan that/the 23 point at which wa havo to placo ordera, early 24 1982, enko heavy financial connit=onts for i 25 equip?.en t, in order to naka the '94 in-carvice
2.199 Mewton-dirset 2"44 - 1 date. Op c rough *31 wa will have primarily ) O 2 engineering, licensing and the preliminary 3 steps that must be taken. "ut, the major 4 comiaitment for equipment will not take place 5 until '82 and are so reflected in the budgets. ji i 6 SY M2. KIRSTrtsa i 7 Q Woer, does that complete your remarks with respect 8 to $13, Mr. Newton? 9 A That's correct, yes. I have a similar response 10 in brief for 812. 11 MR. HARC3LLI: I would be interested 12 in that. O; ia Q o yo have those oo ers, 14 x
- y.,
15 Q will you please? i 16 A The latest 1930 estinatos, tots 1 distributicn, 17 is 23 million S. l 18 l MR. NARD 31LI One more time? 19 THE WITN3SSa 23 million 8, slightly '20 higher, 500,000, than is shown in Ishibit 21
- 312, 22 Q
Thare is an estimats of customer cennection 23 costs, 12 million 392. Uns that been revised? 24 A Yes. That goes up slightly to about 13 million 25 well, almost 14 million, and the nunder we were looking at 3
2.l'46 Mewton-dirset 944$~ l earlier on the average cost goes to 12 million 45 -- not 12 2 nillicn, I ba.g your pardon, it's $1,245. 3 ') Do you hava tha figu:*s for 1901? Is there 4 any revision to that? 5 A 13J1 in total, distribution is 34 million 1, 6 as opposed to 39 cillion 7. There is a reduction in tha num-7 bor of custorsrs to be connected and a comparable reductica 8 in cost to ccnnecting each individual cuatcoer. 9 Q rhat la ths nusber of additional customers, in 10 total, now estinated? 11 A ricw wo are forecasting 13,230. 12 MR. NARDELLIs That's for 1781. Wnat n () 13 about 1990, for additional customors? f 14
- )t WICICSS
Still on the saco schedule, } 15 11,242. i* 16 0 Do you have any ravision of the 1932 estimates? j 17 A 1002 in total is 40 million 300; the nurher of 18 customera in new 13,740 as opposed to the 15,260 in the l 19 aarlier exhibit. The unit costs havo gona down corporably. l 20 The differential in the unit cost for '80 as cpposed to '81 21 and 'E2 which I t;usstionad earlier, I find out is largely l 22 dua to the fact that we are drawing down transformer inven-23 tory. Transforrors, when thoy are deliversd, go ice.ediately 24 into capital, and what va do is include as part of our unit (} 25 customer cost the replacnetnt of that unit fron Lnventory.
LI4 b
- lewton-direct segg-1 Xhat we have done in 1360 is not replaced
(-)3 2 than and, therefero, the unit cost per customer is depressed 3 below what it would havn heen otherwiss. 4
- hat completes my resronae with respect 5
to that. 6 0 would you turn to your e:hibit JC-914. Will 7 you describe what is purported to be shown on that exhibit? 8 A What JC-814 shows is an onczple -- it's really 9 nothing moro than the forn that we use in dotornining the 10 priority of distribution projecta. i 11
- low, when wo have projects, certain of 8
l 12 ths:c are those that sf. cust do. Thgy are involved in health y (~) 13 j and onfoty, new custocora, and overloaded equipnent. We 14 regard those as must do. .ej 15 Then we have a second category, which 3 ~ 16 ar2 discrotionary projects. The norcal criteria would say 17 th.st wo cught to rsplacs this equipment or reinforcs it to 18 naka cparational savings, but if resources are listitwd, we 19 will not do thct. l 20 \\ 21 22 23 C:) 4 25
~~ 2.10 Ni licwton-direct M. 1 A (Continuing.) And, what we do in the dis-f i1 2 cretionary area is Co through and cealyre, ce bown on Ex- !l 3 hibit JC-814. We tche the varioce projects ec have as the 4 discretionary project that really ve thinN ehe=1d he dene, 5 and vc take thm through this determination, this wei hting, F 6 to determ.tne the priority of the particular project. We 7 Icok at the loading on the facility, apply a weighting to 8 that loading and datermine a number of points; hours of 9 operation at that loading, determine accther n=ber. 10 Mv:ee are not abzelt:te nu:ters. N e they i II j are is relative utr: barn, so ve een cicnsify cce project 12 g a ainst the other as to t.hich hcs the creater cerit.to do, I3 given a ifcited accunt of capability to do that. I 14 i The Icee reductica, the type of Icad nerved - l that ir, vc lech et the vrben, the herty concentration of 15 ~ 16 centercre es being of grector weight than y:xtr urban projece 17 vhich vill just benefit a fev eust=ern, a need to improve 18 rervice continuity, ced that cers to the reliebility quas-19 tien, how meh the particular custocer or particular facility 'O ^ has been subject to outage, weigh that; the nrrder of cus- 'I ~ tours benefited; the vaca to restore the voltago as -- la 22 tha voltsgo dovn? !!cv far is it dein? 23 If we beve crtreecly Ice voltege, we voids 4 O that hit e - + = = tan veint= te =11 cf te==. totat un 95 ~ the points ::nd ce get a total n.rher for ecch project and e
2.193 Newton-direct
- Mag I
then we compare one to the other to get an order of marit, 2 and the one that has the highest point count has the highest 3' of merit and will be the first diserationary project we will 4 do given funds, and so on, right down through the list. 5 4 And G14A is an additional worksheet which is 6 used in such evaluations? 7 A For tha transtaission projects, esactly. 8 Q Ucw, Hr. Ucucon, I know that in reur,.cose to 9 sane of Mr. Nardelli's questions, you may have touched on 10 scena of these points before, but just for the sake of making f sure chut they are cosapleta, i might be :ianetdtat re6.:ndant, II i so ben: with re. O: 13 j In torna of majer itens, the ~over-Delevare ~ i 14 i Valley iroject, cculd ycu give us si.e backgruend of that 5 15 g projecc and Jeracy Ceutral's icvcivecent in the project? I A Uc11, tho genesia of the ZE! project, Louer 17 Delawcre Vc11cy Projecc, was c. Joint interest by a group of 18 caspanica, Jerrivy Central, Ihiladelphin 21cetric, Public 19 Service, Delaware Power L Light, Aticatic City, =11 of whom 20 have loud requirasse.ucs and gencrusion requiret:cnts in the 21 general area. Now, PZ and PS, and I cc we sure hon the 22 split-up on Atlantic City and Delm:are go - PE and ?S are l 23 j jointly it: valved in the Sales /Copo Crech develoinent. Ve 24 ' pJ vera involved at the cizae in the forhad !!iver melopeent. 25 And, so, the LGV project was the high voltage 500 'M ~.,
21% Nevts;a-dixcct I transmission that were studied r.rd jointly dw: sed desirabia 2 to intq;rute the ccncration in this arca with the losses in 3 this area for the hair.co of the cystass of the Co:: panics, 4 and it van entered into that on that basis. 5 Each Co9tay, after a series of studies and 6 negotiations, each Coupany ecmiter:d to provide a certain 7 amount of facilities prc.portionate to what their need was 8 ba.ed ca the cessiderations of boch icad sad genaration and, 9 as I said, the integretion of thoce into their entiro sys-10 g I l ~ 11 12 s 13 ej 14 15 3 5 16 17 18 19 20 21 22 23 O 24 25
1 1850 I Newton-direct M. I A (Continuing.) .Iersey Central's major con-g 2 tribution to this was the part of LLV we are talking about. 3 the f 2ans-Smithburg-Forked River-Haw Freedom 500 W loop 4 which are all tied into the stola project, not tutique to 5 Forked River but colored by tho presence of Forked River 6 and the presence of load we expected at that ti:ne. 7 Q Looking at your eshibit, BUSA, which is the 8 aystcc taap, thera is a lina indicating a transmission lina 9 or lines under construction f ca the tialesa-dope Cre.:sk arca 10 up to New Freedom. la that part of the uhole project in 11 which ycu are im olved7 12 A Yes. O 13 j. Q And is that" part of the' project which is new i 14 i under construction 7 3 15 l A That is not under construction, no. 16 Q I sco. And is that ultinately going to be 17 Jersey Central's responsibility to construct that lesi 18 A Wa expect it to be ecustructed sccatic:a around 19 1939, in that period. 20 Q And then the Decus-Omithburg portica is the 21 portion which rtats frc:a Desno, which is just belcw Sayrevi11c; 22 corraet? 23 A Just below tho :.ord "Sayren111c" on rho :::cp, O 4 ycz. 25 Q And it runo in a coucheasterly directica co-
2.15 1 Newton-direct 0016 1 useds hithbura? 2 A Ihat's correct. 3 4 And that's the portien that is tww under con-4 stn:cticn? 5 A Ibat end the sub-cration at Smithburg. 6 Q Aud c n you tell un the status of the con-struction of that portion of the project? 7 8 A !! ell, it's precceding tic =g very rcpidly. 9 It'a bcing construct.cd -- 1 think all of the tewer founda-10 cicna are in fcr that stretch of lir.e, cen of the struc- / 11 ttir n sre'orcetad, the cuh-sentica censtructicn is going on 12 g imd au thole project ic ccheduled to be la service in licy [ Oi '3 or 1s2.1. 14 4 hro ir, sc=cching that I thich ycu referred j 15 ta n.; a sceshere lecp. Neuld yrn explain what that is? 16 A 'Jall, the secchoro leop is basically the Ems 17 2reedoca Forked 2iver4mithburg-Deens Icep uhich parallais 18 Se '!a. Freden to Decus line which is in service nra and 19 providad by Ibblic Service. And then the other lines, Ucu 'O l I'reeda2 back to Calua and liope Crech, the additional line 91 gaic0 la "rcta Galera to b Freedcc, all of that, sten all 22 unlts are in service, there has to be addition:1 trans-3 mission capscity fr= Ucu Frecax2 north tanzda Desan to t ~ ra'u, it operable. And, thic,sca:hore Icop vcs a picco of t 25 that which also setvi.cco to mtpply :Se Jcracy Concisi
1 us2 newton-c.irect g g,, I couthe:u division load and also services to supply or was O 2 intended to serve as a supply or an ability to export any l i 3 excess forked River generation - Oyster Creek generation 4 or, on the othar hand, to import, to replace it vhan those 5 units are out of service. 6 They perfor:a dual and triple functions. 7 Q So, Deans-Smithburg is cort of a northern cre 8 of that loep? 9 A 'ihat's correct, and that comes across a:.v5 10 bridgen this very cicar gap botueen the northern cud II s::uthern divisions of Jersey Central and takes care of this 12 I tr:n.issic limitatice which was the subject of cno or two Oj '3 of the c e rotts. I th1ma chey.oro ao9 and ato, 1 betteve. i 14 i Q And the ternimss of that, Snithburg, is about d 15 g just in the center of that southern division portien of the I 16 Jersey Central territory? 17 A That's correct. 18 Q How, vould you also describe dat has been 19 referred to in other exhibits as a major 230 W project or 20 projects? 21 4 The asjer 230 KV prrjects in the acuthern o, ~~ a::s? 23 4 Yes. O ^ $' t1. i= tha =c > tac====e= th===5 o:=== thae 25 nr hr,.2 cader v y oc-, dich vill W in cervico I believa l ~.,
l 2.i'53 ileuten-direct -:;n. 1 in 1983, smiess I arm mistaken, is a 230 cap fras Cystcr 2 Creek up generally following this -- the forhed P.iver-3 Czithburg line end tappir.g the Latrebce-Cockstown 230 FX 4 line right there. That is to be constructed or to be in 5 ocrvice in 1933. 6 and, the primary function for that is to pro-l 7 vida a second alternative r.upply for Cynter Crcrth. The re-8 vised regulations or critoria of the siRC for operation of 9 nuclear vnits, an I understand it, thorn sunt be now tuo 10 separate, independemt, otrong trener::icainn lines into a 11 plcat. '!ot necessarily to take the aucpot aray, but to pro-12 i vide shutdo5n power in chn cvont of a necesalty to shut ths O 13 { plant da n. And, we presently do not have that sacend ar/arce .I 14 i of cupply. 1nd, the enjor reason for thin in to provida un d 15 g with that, as voll as to support the load supplying espa-16 bility down in the Oynter Creck region. 17 18 l 19 20 21 22 l 23 ] 24 25 l l 3 s
2.1SH
- fowton-direct C
I Q There is a 230 KV project at Martins creek in O 2 the northern division, isibere not? 3 A Yes, there is a Martinh Creek <ilbert 230 4 project. 5 Q Would you describe that and its status? 6 A Well, it's a line connecting the Martin's Creek 7 generating station of PP&L with Jersey Central's Gilbert station. Let ne see if I have the timing of that. 9 It's presently scheduled for 1933.
- Now, 10 that's under study.
It's possible that that might be replaced ,i II i by some 500 XV construction coming from Martin's Creek into 12 g the Jarsay system. But at the norsent %e still think that the O; 13 74artin's creek-Gilbert is the seat likely line to go, and I4 it's in 1933 and it's reflected in our present budget. j 15 0
- low, Hr. Newton, you were asked sc=e questions 16 with roepect to the Ontario Hydro purchase.
Would you jv.at 17 give us your description of what the ccepany is trying to 16 . accomplish with that purchase at 1 whers it fits into the 19 require:sents of the company and what the status of the project 20 g,p 21 A If I can refer you to a couple of exhibits, 22 Jersey Central 805, fcr example, in 1984, we expect Jorsey 23 central's load to be 3,000 megawatts, sunner peak. 4 O ^re' ******2r **2' ' 25 =*S*****= ** ** '^* 95 southern Jarsey area. And, if you then Icok at Exhibit 807, ~ s m__.. ..c_._ y
1.lSC Newton-direct m I in the southern Jersey area, there is 620 megawatts of base 2 load generation. So, about 900 megawatts is needed in there, 3 some of it, albeit, la intermediate. 4 Therede no basa lead generation in the 5 J*r88T Central northern area. 620 la all Jersey has with a 6 load of 3,000. 7 And, looking at those load profiles, 8 if you are in the summertime, we have a load up within 90 9 p r m t of peak for 12 hours a day. So, the need for base j t 10 load. generation, base load energy, is very profound in Jersey 11 Central. i' 12 y What we are trying to do with the ~ Ol 13 onta,io 1,ydro,ro3eot is, ring ease 1 ad oat-li,.d energy 14 in from Ontario. And, this is enes<3y which will be available t* 15 around the cicek, as needed, a thousand megawatts to fill 16 in the various deficisneies of Jersey Central's energy. 17 The status of it, I think, as I said 18 earlier, we are proceeding aggreenively on the prolicinary 19 licensing, environmental studies, lake bottora surveys and 1 20 all the preliminary activities, engineering activities to 21 permit us to be is a position to issue equipment crders 22 marly in1982 at which time we expyet to be able to still 23 seet our 1984, our December 1984 in.iervice date for the i 24 prejset. 25 And, I might say that those are kind of l 3 ~,. _ _ _ _
2.1 % Newton-direct M .l 1 unique situations or is a unique situation because the under-0 2 water cable that is mnning under Lake Erie is going to be 3 approxirately 60 miles long. Ye are going to put five cables 4 in, each of them about, oh, four or five inches in diameter, 5 That's with all of the shielding and the conductor and the 6 insulation. and so fcrth. 7 It will be operating at sor,sthing like 8 plus or minua 300 KVDC. And, each of these cablas has to be 9 fabricated in the factory in one place. Se that the manu-10 facturing time per cable is just about a year frca when they i l 11 start n:aking the thing. I E I, 12 The cable laying itself is very short. O; 13 no, te s actualir the caste that 1. the ori=ic 1 le e t-i; 14 We have to get the cable orders in. it's 5 15 critical en all of the co sponents, but it's more critical on 16 the cable to get an order in because of the manufacturing 17 schadules that will be occupied whera cach cable will almost 18 take a year of ti.e to ecmpiste. That's why the timing on 19 the project is very critien1. 20 There are in the offing a great many 21 other projects who are competing with the same manufacturing 22 capability that we are. T(e at the moment have our foot 23 slightly further in the door than they do end this is another 24 reason we don't want to let anythisu;> slip which is another 25 xsanon why our judg=ent is that spending the two and c quarter-
Wewtom-diroet LID 909 7 1 million dollars in 1980 is a reasonable decisloa and an O 2 appropriate one. 3 4, 4 5 6 7 8 9 10 11 12 O; 13 I 14 1 d 15 3 E: 16 17 18 19 20 21 i 22 23 24 O 25 ~., yep ww- - -ww -y-w -- mw y-r -y e-yw er
y---gy-yn,-ym-v------
e --m-- -w--m e-e w--
2.158I flewton-dirset -SMt I I Q While we are looking at this exhibit, Jc-807 O 2 to which yea refstrad, Hr. trewton, I recognise that it may 3 be a simple quastion which reqv. ires a very complex answer 4 but let me ask, how do you determine what la the appespriate' 5 or optimu:n level of base load gansratica in your generation 6 rix for the kind of requirements as shown for Jersey Centrar on Exhibit JC-8077 8 A tiell, the appropriate amunt of base load 9 generation would be certainly that generation that would 10 por:ait you to operate pelow the minieu= load practically i II i year r m d. 12 g The rinintna locd la, if you draw an O .nnua1 1oad durotieu curve, thet is, start with a peau toad 14 l and take every other hour of the leed in order of descending j quantity, the lowest load experienced during a year would be 15 16 sorethias in the order of 40 parcent of that peak load. I7 And if you get a peak load of 3,000 Ngawstts, as Jersey I8 castral dess, you can say, well, at least for 40 percent of 19 that 3,000 hours - or 1203 -- or 3,000 megavatta, excuse mac 20 for at leest 1200 messwatts, we cat space for bane load 21 generetion. 22 Then if you recognize that sone of that 23 tin 12 taken up by w intenesca and forced outage, you can 24 make a very strong esss for the d+eirability of 50 or 60 0 25 percent of your peak load in base load generatica,
l 2.I S3 liewton-direct M 1 Q Is that illustrated on Jc-804, page 1 and 2 of O 2 3 which shows the representative days in the summer and la 3 the winter and shows the relationship between the lowest level 4 of load, I think, which you daecribe as 4:00 a.m. in the 5 morning and capared to the peak sometime in the later after-6 7 3 gg.s illustrated in part, yes. The load daration curva I referred to is just taking these loads and asssscling 9 them, starting from the left-hand axis in order of descending 10 sise and basically, they 40 illustrate the point that I am 11 making. 12 On this day hers, I'm looking at 804 at 13 j the moment, this winter day, Jersey Central can certainly I4 keep something in excess of 1400 toegave. hts fully loaded 15 without backing down a bit. E 16 i Q Uow, you are ~ familiar with the load manager. ant 17 activities generally of Jersey Central, ars you not? l 18 A Yes, in general, I an. 19 Q And is one-of the objectives of that load 20 managsment program to shift some peak load to off paak load? 21 A That's the thrust of at least a part of it, 22 y.., 23 Q And in order for it to get the benefit of that 24 savings of high peak iced costs, you would have to have base 25 load generation to serve that lead in the off peak hours, ~., ,w
7 i 2.160 Newtta-dircet -SiHH>- I wouldn't you? O 2 A That's errset. 3 O So that the need for base load generation muld 4 be incrossed if the load :sanagement program was successful? 5 A To some degree, certainly, i 6 Q Now, would you also comment, if you will, on 7 the so asiled susquehanna project? I'm talking about the 8 major 290 KV projects. I 9 A The Susquehanna eastern project I referred to 10 earlier, looking at the map MSA, that was in large part 11 triggered by the inst >ill.stion of TNT-2. 12 And, it constitutes a 500 XV line running ,,I < roes :az<a ta*= no a cx at=* 1
- *= *a c ='ar divi =ia=l O;
13 f 14 of }%t Ed, the blue and the green. d 15 And then, some other reinforcements in -- i 16 going fro:s ilosensack down to 31roy, and then on into !!aw 17 Jersey. It was triggered by that. 18 Jerssy contral has a participation in 19 the Suaquehanna eastern as a party to the Susquehanna eastern 20 agreement and is responsible for sene of that transmission 21 investment, although it has net made any specific investrant 22 for itself. 23 Even though the THI-2 unit is not avail-24 able, it still functions as a vehicle for transmission from O 25 west to east. It's working every day and western carrying )
- 2. I b l Newton-direct 404t-1 energy out of Keystone, Coassaugh, all of these stations, 0
2 on into the east, reducing system lommes and so forth. 3 0 itsea you say western generation, is that also 4 including power purchases from the west? 5 A It will serve to transmit all of the short-ters 6 purchases we are zaaking now from the western companies. It 7 will serve and act when the Ontario I!ydro purchase neues in. 8 So, it isn't so=athing that is no longer needed because 9 TMI-2 isn't in the picture at the co:mont. It is very active 0 and very appropriate that Jnruey Central continues to beer j 11 its proportionate share of tha responsibility. 12 8 O '3 .j 14 f 15 i 16 17 18 19 20 1 21 22 23 94 ~ O 25
libi 4I hewcoa-direct I Q One last area of gaastioning that I uculd O. 2 like to direct your attention to, Mr. Mwecu, is, charo 3 has been some discussion about varimis conversion projects 4 with respect to converting the nuclear plant, or nuclear 5 plants, TMI-2, Forked River, fraa nucicar to coal. t 6 From an engineering Jeandpoint, what con-7 sideraticas do you think are significant in evaluating the 8 validity of the ccaversion of projects, either partially 9 in construction or completed fram nuclear to coal? 10 A Mell, fram the standpoint of your desiga or ,i II i the cquipcent that any be on hand, about the only part of 12 j that equipment I can see c :at vould be convertibic, muld O; se tue gossisitity of the se p-up transformer, the s. itch I 14 i scar peasibly, saae of tha anillary tranaianwrs and things d 15 of that nature. 16 rae real big ticket iteca, the turbine, the 17 Senerator, any of the accan generator equipment, they are 18 just totally different. Locking at what we had chtained or 19 uhat had been designed for Forked 11vor as cocpared to what 20 is designed for ccal units, for instance Souard !!o. 7, ( 21 specifica11, the coal uaita era designed for very high 7 efficiency, high proscure, a high tesperature operation. 23 'whereas, the nuclear units are duaigned for ,4 ~ Q c:nch lwer teczpwacure, much icuer prusure. I bcd abstracted 25 here seen basic data. For ext:::ple, Forked River was an 1 s
9 2.t 63 Newcou-dircet C 3.-- 1 1130 megawatt planc, this is gross generation. Seward 7 O 2 is 690. The generator capacity it in accord with that. 3 The voltage in abcut tbc : me. The generator voltage, 4 23 KV, for Ferked Eirer end 26 fer Sestard is shout the same. 5 But, the turbine itself is quito different. 6 The turbine for Ferhed River, the Forked River 7 turbine, in 1*00, end for Seward 7, it's 3600. You just 8 can't u a that saw turbine unican you find an application 9 for en 1800 RI^1 turbine. 10 The presture, the enrbino pressuro, this is j 11 the inlet prescura of the Fort:d River turbine, is about 12 045 pcunds per s ;unre fr.ch r,t=j-That'c for the turbine. O; 23 s m=re 7 the===1 = nit, to 2520. That's the,reesure at 14 the intet of the turbina. And, the teciperature for Forked l 15 nt.rar, the inlet errgerature is 532 7ahrenheit. For Seward 7, i I 16 t : c.t thous nd - a thcacand, that is, a thousand degrees 17 fahrenheit rehanted to a th mnand. 18 So, they are just tots 117 different machines. 19 Probably the Forked Rive cuit at those stem:n conditions, 'O ~ at thacs empraturse end pressure, would require at least 'l two ti=2s th2 araant of etes: per heur, pounds per steam ~ l 22 per hour, as tha f.renro unit would. 23 There fort, the cendrasers cro twice the si=e 04 O of the cendensers of Set ard. So 211 cf the bi3 ticket items ~ V '5 ~ are 27?cifie:2117 deciped for a 3 rtn set of emoitions and 1 l l N
r
- 2. I b%
Newton-direct 2 0 0 '.. I they just don't fit together. b> 2
- C. KIMTim
Tiumk you, Mr. Ucwton. 3 h ao are all the questions I hava. 4 .E E WW.S11ALL: Mr. Mardelli. 5 CPM S-7.7 M mY mi 6 BY IC. NAFMLLI: 7 Q th. Ne.vton, tir. rdraten uns asking you about 8 tmLtg tho equirmont at 7orked River for a coal pisac. Did 9 I undeestiend the quastion cor:eccly? 10 A Yea; he was esking the degree of coupatibility f betweca that equipnant and the other, yen. II I I Q But you were not addrcusing the question of Oj xhether the equipr. cat ac rozhed r.tver could da usca in i 14 i another nucicar picnt, vera yeuf 15 A Wo, no. g I 16 Q So, nr.y I asmsaa that if this equipnent could 17 be, or at least if a willing buyer could be found, that this 18 cquipoant could ba used at a nucicar plant at cncther site? 19 A h t vccid be cosceivable if ycm found another 20 potential infer uho uts in that positica and he would find 21 it attractive. h carhet han been reduced so ra:hedly 22 over the pact few yearn that there are nst =any units going 23 in. Mont of them ths:: are goina in are in a fairly a6ranced Q stege of construction, thet is, the design has al cady been 25 l Icckad in, they placed equipant ordero end they cra just l I
', x. 's Y .m .,s. p 65 Zicaton-crcco h. n'.i^43. I otretching out the constructio"n tima. -{. ~ O ~' 2 Lo it' you ceald find reinebody, yes, ' mat the 3 likelihood of finding somsone is ve:J sil:s. Suti 1 ma not 4 in t!vit area of thw basi:taas. 5 '\\ ~ l} 6 y e T 8 s t 9 4 10 s i~ 11 s 12 ,,i O i 14 g s, 15 s. r 16 t 17 18 19 20 21 5 - 1. g s - 23 l 24 25 =, N._
ll u newton-cross sege-Q when you speak of the doo11 ming anclear market, O i 2 you're really addressing that market la the United Statas 3 i ,,,,,g y,,7 4 x x... 5 Q Isn't there a rather thriving nuclear market 6 overseas? 7 A It's my understanding, yes, that it is going 4 8 forward vary aggressively. .i 9 0 So there are potential buyers overseas, are o there not, for the equipment that is contained in Forked l f II River? 12 i A I have no personal knowledge, but certainly O i hecaos. o< the - tet -nuta s, she rossihiuty or <aaa, one tners is better than it is here, that's correct. t I ,~ ' ~ Q Do you know the status of Oyster Creek with regard to whether it's going to have to shut down in 19807 A My understanding of the most recent maintenance I8 schedule is that it will not shut down in 1980. I'a told that they are seneduling it to go down in 1981, about April. 90 I just found this out yesterday. I think that's about a 21 five week outage, maybe longer. I'm going to question very 22 strongly whether that can factually be done or realistically 23 he done. I don't know what the constraiuta are that require 24 it to go out then. I say that against the background of what O '5 I understand to be the likelihood of a coal strika which I l ~ y 8
l 2.1 l.7 Wevton-cross M7 I think will hit us about i: arch of 1981. And if ws have a i O ooal strika, it will be vary, very, vary tough to have l 2 l 3 oyster creek out sicultaneously. l i 4 Q 3ut to your best knowledge, the ffRC has not 5 directed the company to shut down oyster crook this year? 6 A To ::y kaculadge, no. But I don't knew 7 specifically what the status of that is and their negotiations 8 with the ifRO. 9 Q Would you happen to kncy what the operating 10 rate of Oyster Cruk tras this month? 3 h II A no, I don't. I have a sonn that it has been 12 g very good, but I don' t k.now. av ry tino I lock at the daily O: ton w. -= -d = nos.r atu. '3 .:I 14 j O Now, turning to JC-813 for the year 1980, there 8 15-iis liome 2.2 nillica allocated for the Ontario Hydro-Jarssy t i 16 central WDC tie. 17 A That's correct. 18 0 Is thic the amount Jermoy Central will be 19 expending in 19837 20 g y,,, 21 Q And do you know if tietropolitan Edison or 22 Ponssylvania 21setric sea spending r.oney en this project? 23 A ito, they ars not spending anything that I know 24 of,
- verything thst they spead is included in this number l
,5 here.
2.l L T Newton-Orcs 0 -iHP99- 'l I Q And is that because Jersey Central will get l O 2 100 percent of the benefits of this project? 3 A That's correct, they have the project set up 4 and they are charging it directly to the capital project. 5 0 Do you know if Ontario Hydro is spending any 6 tooney on this project? 7 A Tes, Ontario ~ Hydro, I believe, is spending 8 considerably rorn than this for their own reasons. 9 0 And could one of those reasons he that even 10 if the project doesn't go forward with Jersey Central as a i I 11 partner, Ontario Ziydro nay well consummate the project with e 12 another partner? O: '3 x ru *'= ee==ist - 2 eaa's== sh== *a 6
==v g 14 part of their rtative though. f I Now, -for' the three years, 15 30, 1981 and 1982 15 Q i 16 there is some 345 millien plus allocated to this Ontario ~ 17 tiydro project for Jersey Central. 18 What is the total? 19 A The total, based on our present estirsates, l 20 and we don't know what the precise equipment costs will be, 21 what the quotes are, but based om everything that we know l 22 about it, we are forecasting approximately 250 nillion, 240 23 to 250. 24 Q And that's Jersey Central's shars? 25 A That's correct.
lilA
- fowt'A-cro00 49M-I Q
What is Ontario Hydro's share? O 2 l. A spread it in the same units, that is, U.S. 3 dollars, exactly the same or basically the same. The only 4 difference would be how different their converter station 5 ga gye,,,,,, 6 7 8 9 10 11 12 O ia 14 f 15 16 17 18 19 20 21 22 23 24 O 25
Itlo J Uewten-cr:Sc M0J 1 Q Is this $0/50 arrsecumt, and I Enther that's O 2 , sat te is, so.e kind or 30/3o concept, t th.t expres.e4 3 in this letter of understanding that you have referred to? 4 A Yes. 5 HR. HARDELLI: I would, Judge Marshall, 6 like to repeat the Advocate's request for a 7 copy of that latter so that the record re-8 ficcts my r quest. 9 JUECC IGAS11A1.La All right. 10 141. KIRSTEN: And I will repeat cur i 11 response is that to the extent that there is 12 a letter thich does not contain any confi-13 l C dential information that if cado public might l affect the negotiations, we will be glad.tn 14 t l supply it to Mr. Harde111. -~ 15 16 JUDc recipu,: Okay. 17 Q Do you 1c.cv the date of that letter, Mr. I8 Newton? Approxi:aate would be fine. I9 A Approxt:satoly, I would say late September 90 ~ 1980, maybe early October, but in that efae frama. 21 Q llo are talking about a docunent within the 22 lastt=enth? A Yes. l a4 Q This doctcent tells.sbeut a 50/50 arrcngenent '5 on the capital costs. Ecos it get into such thinas as
i 2.n l Hawton-creca -3071. 1 length of the arrangeacnt? O c 2 A Yes; it give: the general timo fraze for the 3 in-service date.ind the lonath. 7-1/2 years I thf.ak it is. 4 Q Uow, it's ny underataudi.z;, nnel correct saa if 5 1 cm urong, that the icngth has reemt:17 be:n incrased. 6 that originally it was 7, 7-1/2 y:ars that you have been 7 speaking to but that tww there is seu ir.dication that per-8 haps the icn?,th of tha arr.sny,esent xn:1d be 9-3/4 years. 9 1'ces that scuod fen 111 sri 10 A There han been cce c:.t truien. I.'u not sure I f of the er. met qucucifict. tion of that ::.:: er. II j Q hit it is.'.n (nter.r,bn of the period of the O ocra =.ene rather than o reduction of the m rtw. A Yes. 5 15 g Q Does the letter of :=:!erstnnt'in.3 d'.acuss the 5 16 c:xrme of capscity that w:uld ha etallable? 17 A Yes. 18 Q 'a'aat 14 it? 19 A A thousand casmrttee. 20 Q And yms know of to cha:rge in tiir.tf 21 A Ho. j Q And all 1,C00 :r43r::.".tts veuld eccrue to the 23 benefit of Jersey Central? 24 4 Tnat's torrect, to the best ef my knowladge. Q 25 l Q Talo 1,000 n.csa-:stte ue hcve tvntioned, that's i N
_1. n1-liwton-croso " " - ~ l for 365 days a year, 24 hours a day? O 2 A Yes. 3 4 Is there any pricing mechanism in this letter 4 of understanding? 5 A goe,pecific,11, [ 7 6 Q Cocia broad guidelines? 7 A Broad guidelines, no rare. 8 4 1s the custacle of the errort tax discussed 9 in the letter of understanding? 10 A I just don't recG11. II Q S p aking of obecacles, and thls is just frc4a 12 g reading the pept rs, era I correct in thinking that the prob-O; '3 1e. of acid raim to on, of tu. ittues beina dt cos ed by I4 the Canadians as a bar to this mort of arrage: cent? l 15 A Neither Ontario Hydro nor GPU is discussig i 16 cold rain as a barrier, hers are other entities that are I7 talking about it, tat that is a subject that is no nebulous, I8 in the scientific ccma mity the subject of such diray;ee-19 enent, that I can't express an opinion on it. 'O 11ay I qualify one thing? 'l ~ Q Yes. 2 A We were speaking about the tera of this agree-23 nent, and I urnld nest uant ths 1:pression to be that thin 9'1 Q M45 million va are propcaing to npend, or whatever the ~ '5 number is, ic goins to have a useful life of caly 7-1/2 years m
2.17 3 Newton-crc s
==: I I 01 atever it is. The term that we are talking about is O 2 for tha rir w er asre.- =t and 1.tlowtus its e=viratio=. l 3 that tie will rnemin thcre and be used and useful for 4 economy interchange in all types of transactions, and we 5 will here the first opportunity to extend the fir:a power 6 agree:nent at that time, according to the prellainary under-7 standing at St.atever the then current rate wculd be. 8 So, it's sanothing that will run on for 20 9 or 30 years or better. 10 Q L'oes the letter af understanding got into l 11 this option that Jeracy Central may or :any not have? 12 A Yey mcu.y is not clear on that, either. 1 Q just des't recall. 13 ij 14 Q lbe is W ecory on whether Cutario P.ydro 8 15 vould hate the power under the tentativo agressent to i t 16 terminata the arranget cenpletely at the end of the ters? 17 lG. Kn1STIN: Well, I have a probic:a 18 with that. It's just a matter of form. Mr. 19 e ncygg,g s last anaver indicated that the pro-20 ject does not have a term of 7 or 9 years. 21 The joint ownership of the transmissica line l 22 is really the project. The p ar purchased I l 23 has a term cf 9-3/4 years or 7-1/2,tb.atever 24 it is. O 25 So that the question, is it addressed - t
1 1874 Newton-creco 3074. I to the power purchased portion of it or to O 2 the joint ownership of the transmission 3 f,ettityt 4 MR, MARDZZ.LI It's addressed to the ab 5 power purchased part. 6 q 3,,,,,t Ontario Rydro have an option to stop 7 selling coc:pletely at the cud of thatever the ter:a 187 1 8 A 1 presume, yes, they do have that cption. 9 10 i~ 11 12 i 23 o: f 14 1* 15 l 3 16 17 18 19 20 21 22 23 24 O 25 -~
J.in llowton-croso e Q And, if they were to exercise that option, what O 2 would J.r ey Centui u,e to show for its investment or 3 S250 s.1111on? benefit 4 A An achieved /well in excess of that 250. 5 Q You are saying the savings im energy costs for 6 the seven or nine years that the arrangement was in effect 7 would warunt the capital expenditure of $250 million? 8 A Exactly. I might add it'e inconceivable to 9 me or any other business nan that Ontario Hydro with a 10 S250 million investrant would elect to cut it off and render 11 it no longer useful for any purpose because they can't do i 12 business with anyledy except by using our half of it, Jersey i 13 central's half. And, so, as I said, it's just unthinkable, 14 an unthinkabin occurrence to se that would ever take place. ( 5 15 Q They could, certainly, negotiate for a higher I !r 16 price at the end of the term. 17 A Cartainly. 18 Q uow bulky is that document you filed today, 19 the environmental impact statement regarding this project? 20 A Ch, it rust be an inch and a half thick, I 21 would judge, typical of environmental impact statements. l JUDC!! MARSI!ALL: Off the record a 22 23 moment. (Discussion off the record.) 24 O JUDC3 ftARSHALL 3ack on the record. 25 l - 3 ""w v '-~
w
2.1% 1* tw tcn-crc 00 1 MR. MARocLLI: Uven though it's an inch 2 and a half thick, I think the Advocate would I 3 like to see a copy. Is there any problem l 4 with that? 5 MR. KIRSTC.43 I have a problem with 6 caking copies for everybody, but to the extent 7 there is no confidential infornation in it, 8 wo will nake a copy avail.ible to you. I 9 don't know how we will pht-ically do that, 10 but we will nake it available to you in some l 11 convenient way to review the docu=ent. 2 12 THE EITMES.Ss If I might cctment with 13 [{} Counsel, and that is always a dangorous thing .j 14 to do, it's a public document, so whatever d 15 is confidential in thers is between the world 16 and us. 17 tia. XIn375N I don't anticipate any 18 problem, but I haven't seen it either, no I 19 can' t zake any con =1trent until I have rn-20 viewed this, and if there appears to be a 21 portion of it which I think might be inappro-22 priata, I am sort of reserving my right to 23 say I don't think it's necessary to include 24 tha t. But, I am not suggesting that that O 25 necessarily la the case. ~.
1 1Pl~) f
- lowton-crcas
+377-i 1 ?m. :JAELCI.LI s I rdgut say that in view 2 of t.hr. bulk of it, the Advocate would coly be 3 int.orected in one copy. We certainly wouldn't 4 want any r, ore than that. 5 SY tiit. HARDULLI: 6 0 Does this environnental impact statetent, Itr. .towton, discuss the acid rain problesa? 8 A !!y necory alsu is not clear ota that. I think 9 U-it does -- net to any great depth. What*ve do refer /in there 10 is the fact that if you weres to draa a circle around the i h II eastern coast or the Unito.1 3tates and Cntario and western g Pennsylvania, whst it will do would be to reduce the oil consucption, and wo inre esti=ating sos:ething like 13 nillion 14 l barrola of oil wrtich has to be irported per year, and 12 that j 15 oil dcean't have to be burned along the seaboard, it has to ~ 16 reduce the acid rain or the sulfur emissiond on the east I7 ccast area. It may well increase it in Ontario which nay 18 well blo.r fato new f.nyland. I don' t knew what the totality of it is, but -- l
- 0
~ l Q How, turning to JC-US A, you have sentioned a 1 l 21 completion date fcr ttat 500 F.V line of May 1991. Now, I 22 know it's the northern portion of that line. In that both 23 the Forked niver-G=ithburg piece and the Smithburg-Denna 24 pi,c,7 o5 ~ A ve, only the 9.aithburg-Deans. Brithburg-Deans w
~ 1.n1 Newton-croso 444ih I 1 and the Smithburg substation. t' 2 0 !!ow, vien was the Smithburg-Deans piece coe,- 3 ceived, or at least when did you begin construction on it? l 4 A It was conceived as part of this whole LDV 5 project. The tir.ing, I am sure, has slipped as we have gona 6 along due to load growth dropping and so forth, rxactly 7 when wo started construction, I don't know. 8 0 Thero are fcur pieces of tQin as I Icck at ths 9 exhibit. Salem-:lew Freedon, lew Freedon-Forked River, 10 Forhed River-Snithburg and Suithburg-Deans. Is that correct? !j 11 A No are not involved -- Jarsay Central is not 12 involvod in the Saler-::ew Presdem occtioni 'th'a't's going in (]} j at the requirczent of Public Service, prirarily. 13 i 14 E 15 3ar 16 17 1 18 19 20 1 21 l 22 23 24 O 25 ~. -v e
ini 3J Newton-creac M. 1 Q Is Jersey Central contributing or is it pro-D 2 f reted to coctribute any funds fer that piece? 3 A Ba. 4 Q Nc;, Icr.rin5 that piece aside. rad now just 5 talking about tha three. picecs lity Tread:rt-Forhed River, 6 Forked River-Srithburg, and Snithburs-Dc.tns, ucre these 7 thrco picesa conceived about ths rare the? 8 A Yes; all part of the same pac!wgo and plans 9 s bultancously. I don't acen pisnned for in-anvice si::nal-10 t: tously. 11 Q Ki.~ht. I understand that. 12 A y,g, O; '3 a v>==e = sea, wh=e 7c== are so tctk n3 soot, r.pfrox*m taly, for thin project then it von ceter.tved? I4 j 15 A If yea vill beer with ac, I ur.1:oking for a 16 copy of the Agrataant. 17 JUDCE PJJ1S!2LL: Wy don': we go off I8 the record and take o break and then recune 19 in abcut 15 minutes. 'O (Wereupon, e recess uns caken.) 21 o, JUEOS F1.!SrdLL: 3::ck on the record. 23 }G. IU.RSELLI: I beliric 15. Mraten 24 Q usa icoki:n for '5 .mDC2 PJRD'd,LL: Yea, there was a
9 2.sCo tiewton-cros s W. I pending question as to uhen the project was 2 first planned. 3 THE IGT fdSS: Yes. The LDV project, 4 1 am a4visad that the initial conception was i 5 in the Inte '60s..The first study that we 6 recall seeing vaa in 1968. Dow, at that time 7 the unit was not Forked River; it was cyster 8 Creek 2, and that cubuquently got transferred 9 to THI as TM1-2, stui then Forked River came { 10 alcag. But, the initial conception was then II and load growth cha ged, unit delays occurred, 12 g all of these thirgs -- the '73 oil embarBo hari Oi 13 a cenaiderabl3 offect on cutting back on the a" 14 i load growth. l The actual Agreenent, LL7 Agremmt, 15 16 was entered into in Septe=ber 1977. 17 I was also advised that I had not ando clear that the LDV Agreement, the LDV project 19 includes Pesch Sottom cucicar rather than the 1 l 20 Salca. It's Peach h ttom -- not rather than 1 ,1 l Salas, I be3 your p rden, r thaz than % pe ~ t l Creek. It's Poach Bottets - Sal =s. ?cach 23 4tton is cut on the Susqucha:es 2.1ver alcug 94 I O ese 8er7t :=d doraer. That'= vart or the tuv ~ 25, proj ect, too. I ~
I 2.n l llewton-cross 40517 1 That complates that answer. O 2 57 YJ4. &W11ELLI: 3 Q l.t the very hcginnin3 of your direct certimony 4 this mornis3, you cc.?- a statement which I suspect was more 5 dentral than you intended, and that was that there is no-6 thing that ve, rwasing C1"J, Jersey Cantral, can do about 7 denv:cd, custccar dsnand. Uculd ycu be t.-1111ag to qualify 8 that in teres of ths sffrets of Icad 22anaZment programs and 9 cics-of-day ratcal 10 A I said th2ro was v y littic that n esa do i j 11 ahcut it, and, 7ca, I can qualify that d a:n ara. as I re-12 g call, thin,a that rc emn c's, ine ctiva land runng:::nent, Icad 2 bm I3 re.cnagenent incentivea, rate ine.:n,1ves t:7 ug to get cus-t a' 14 g tot. cir ts control thair d a:ind, ta conserve. All of this I 15 in part of Ice:d sana;acent. So, un can as that.
- r 16 U a e c:t :1so tail tha vc:f D-acanian m.easura l
I7 of Icad curt::ilmat nhich is 2nt va havn to do in c:ttrene' i 18 4 cacrgencica, involuntary load curtailment. i I9 l
- m. NA".rELLI:
Judga it: *all,Ifr. 90 Hale:1, of my offica, till naw re:str.a the cross 01 ~ of 11r. M m en. l 22 .JDC5 M.9511ALL: Very wall. 23 c?. CSS ".T.*ct! HAT!c*t 24 Q 3., 33, py7g, 95 ^ 9 Mr. Nc rt=t, at the Sc31nning of your testi:meny .. --a
fl u1r1 Nevron-crocs -0022. I today, you gave some semple nu:sbers for the capital and O 2 operating costs of nucicar-fired plancs,.a coal-fired planc 3 and gas turbines I believe, and I recall the figures being 4 $1200 per kilowatt for nuc1 car with operating costs of 5 4:311,; 4900 per kilowatt for coal with an operacing cost 6 cf 12 mils; and turbine costs of $200 per kilowsec wich an 7 operati.a cost of 50 mils. 8 la that the nuabers you usedi 9 A Yes; those are the utzbers I used. 'Itcy aro 10 illustrative only. They are cet intended to be specific or i Il precine. Taay do derrrretrate the reintive difference be-12 g tween the types of units. O l 14 e 15 16 17 18 19 20 21 22 23 04 ~ O 25 ~ ~,
1t73 'icwton-Orc 3D ayHHS I a Is it correct that if the only load that had 2 to be serve.d was a peak 1 cad occurring a few hours a year, 3 that on a total cost basis, the cheapest way of serving that 4 load would be a ges turbine generator? 5 A I would certainly think so, yes. 6 0 itew, you did, I believe, in roupcces to one of 7 nr. i;traten's questions that he asksd yeu to distinguish 8 betwcon base load and generators and load in general, you 9 indicated that the base load roquiromant is essentially 10 datarcined by the arount of load that is on during the entire E 11 year which I believe you said is approximatoly 43 percent of 12 the pear. load. Is that correct? 13 A I indicated that was at least the einimum that (]) q 14 you could support, but recognizing that you would have unit w e { 15 outsgos and unavailability in svon the base load units, that i 16 you could support somothing in oxcoas of that 40 percent 17 as an appropriato level of bsso load sonoration. 18 0 Isn't it correct that the econonics works out, 19 Af you are soing to coat juJtify a nuclear or Coal unit, l 20 that ths additional capital cost p$r kilevatt ever and above 21 the costof the turnine is justified throagn the f usi sayings i 22 that occur during the thousands of hours of operation per i 23 y>ar? 24 A Yes. Thero's no queJtion that the last time () 25 I was luvolvsd intiestely with these studies, the savings l n-,
1%CM l twton-cro30 N 1 that one achieved with the energy weil offset the additional O 2 capital costs. 3 Q Would it be fair to conclude, than, that the 4 total amount of investment that a utility such as Jersey 5 Central decides to prudently incur for generation is a functica 6 not only of the peak load but also. a function of the year 7 around load? 8 A Yes, and load patterns and so forth, yes. 9 Q Now, you indicated, for example, I believe you did, 10 that the off peak load and magnitude of the off peak load ij 11 gives you an indication as to how much basa load you would 12 require, and I believe the response to one of Mr. Kirsten's O; '3 suestio=s indicat d that if r a* 2.ad is shaved e=d the 14 valley during the off peak period is filled is, that on.a f~ 15-system planning basis, this would possibly require more ir 16 bane load generatica in the generation mix. Is that what 17 you said? 18 A Yes, on a theoretical basis, if you were able t 19 to plan and provide equipment. that closely to your require-a 20 monts, yes, you would certainly have / higher Acad factor and, 21 therefors, you could support higher capacity factor generation. l l 22 0 Which neans that for any given level of system 23 peak, the arsount of investment in generation would be higher 24 witn the higher load factor. 25 A If you were able to fit the units to the load - -. _ -. ~,.
ltS6
- lewton-cress I
that closely, yes. O 2 Q Now, would you agree that the total cost of t 3 providing electricity to a custower is the variable operating 4 cost plus the fixed oost in the investment? 5 A If you include within the fixed cost the 6 customer cost, yes, certainly. 7 o would that also apply to off peak loads, that 8 not only is the cost of serving off peak load the cost of fuel, but also the cost of the facilities, the fixed costs 10 of the facilities necessary to deliver that energy, to i Il i generata and deliver that eergy? 12 g A In theoretical terms, yes. 2 O: 13 u ar settu e. 1 that, uto ur. i I4 carter's arms of testi=eny. aut, cartainly, on a theoretical 1 I l 15 basis, you have ~te' recognize that facilities are used off 16 yeak as well as on peak. 17 0 And they are designed to r.eet the entire load 18 whlah they will be expected to serve, is that correct? 19 A That's correct. some of my exhibits -- one 20 of ny exhibits showed at about 75 to 85 percent of peak we 21 had the maximum usage of infort capability of transniasion, l 22 so so:w equipe.ent works harder off peak than it does en 23 ped. l l 24 o I believe one example that you gave of that l O 25 were the transmission lines used to import power into the 3
11 % lMewton-croco 177t* 1 Jersey Central service territory during the off peak periods. O 2 Is that correct? 3 A That's correct. 4 Q Now, if these lines did not exist, it wonid be 5 necessaryto rur. the local generators which are oli-fired a 6 greater ausbar of hours per year, is that correct? 7 A Yes, tat's correct. 8 0 So the direct benefit from this investment in 9 these transmission lines is that import power, a reduction 10 in usage of oil-fired generation, and in turn, a lowering of i 11 the cperating costs? r i 12 A There is that plus the improvonent in reliabilihy d e===a r catac 3==* arti r, ith=== ar
==<r====i==ta; l 5 i l O; l 14 capability and our present generation, we are incapable of i caetingtheentireIcadrequiremeatB[atleastinthesouthern f 15
- I 16 Jerssy area, so it just isn't a matter of running acre exten-17 sive equipe.ent longer hours, we just don't have the equipment 18 to run.
19 20 1 21 22 l 23 24 l O 25 ~.,
2.11 7 3J ilowten-croso Seth I 4 Co, you are saying that there is a dual para-2 meter. One is to hwe the visible capacity no the elec-3 tricity will be there when semecce throws the switch, but 4 a second factor is systeen eccor237, 5 A That's correct, yes. 6 Q po g, if o{f.pcak loeds became used to a 7 3reater extent - for exar:ple, if electric cars are re-8 charged at night durin5 the off-peak periods, if they be-9 cese ycpular, could the end result he a need to upgrade 10 trentmicolon facilitics? i 11 A I think if ycu had adecyste tranmissien 12 g fecilities to Trot ywr peak 1=ad, tha only way that tha O: oet-reaa ve=to receir voa to 6 ee tha= us t=== have ca-i I4 j off-peak load becocte che peak. Thnt is, ynu juct hate a l j tranepo itico. ~~ ~~ 15 16 q 3aat about with respect to tho lines to 1:a-17 pore the energy fron Pennsylvania end other re:aote loca-1 18 tions which is avalishle at a cost cheaper than the cost of f I9 j cpurating local gracrators? I believe ycu did indicata a0 that those importation linas nee their inost nevera service 'l l durir3 the off-ponh periods. t 22 A Well, eff-peak to the desyee of bei:13 cc:o-23 thicc like 75 to 95 pere-ne of the peak rather than the 24 nighttirac valley load which I thirJf you cro alluding to 25 whe e ycu mld be ebarging cicetric cara and equi;xtent oi? 'N
f 2.11 1 , e,; ton-e r0 s e a =.w. 1 . hat ceture. fo, it's off-pai to scae e2xt:.: but not off-nU 2 peak to the desrco that to are talkizy; chout for cff-pech 3 rntu and off-pack Iciads. 4 9 I Jutst to redacc the poscibic ccafusion that anyonc mi,ht huo then, would you say that thase loads from 5 t 6 the recote gencretor3 -- that thoic trancliasiaa linas may 7 bc opcratiLS ct their pc4k durirq the timo that un clip)tc I 8 refer to as the nycte.:a cheelder, thidt ir, tcca.here betrean 9 peak cad off-pcok7 10 A T.10t's corrcet, at the point you L:ve tchen l 11 ycur periins geze:ctico off fr (cr.p/ rcccess and begiu 12
- o bac); (472 ycue intsrcedf 2tc 3t crution,, you still hWC O]
13 ths bcca load ge.ct ration workiru3 f;11 out and it's ct th:so a 14 nrcat tir.t per import la working the h.ardest, boc.suso yms 15 are drevirs en Sc:e-load ger.orati:n, which lu scr.erally i 16
- csking lo
- at.cd in the vestern coal ficids er in the Dll 17 Arcs.
18 Q Ucu, citring ycur testinony this rorning, 7ma 19 covered in tcrus of the importanc: of the trancalasicr. 20 37stesa, i belicve you stated it was -- chia tsay be pars-21 phrasing -- that it's a neccs: ry part of => cvorail 22 373ects go cem.ccc re oto noncratora to the loed centers 23 .hcre the cicctrici:y is ac: tally boirs uced. Is that a 24 fair characteri:stion? bn 25 a 73 t 3 ce;;eeg, 7,3,
itM licwton-crcoo GC M.~ 1 4 And uculd it be fair to say if you did not 2 have a long-distanco trans:21ssion system, that it would be 3 impossible to get clectricity free places like hystone and 4 Conenaush to the Jersey Central service territory? 5 A That's correct. 6 Q An siternative would have to be local genera-7 tion? 8 A That's correct. 9 Q And because of our e.svircrsect.a1 scandards and to other prohlmas wo night have htxe, that vculd probably be !j 11 se:2e sort of oil-fired generation at the present tino? 2 12 A That's correct. O; 9 watch *==td carry <=c=== ec====>te reine oe 14 view fairly high fuel costs? 15 .A That's correct. It uculd also carry uith it i 16 in the present Mtddio East political sitvetion a terrific 17 rick of c.ot having anything to ban. 18 4 So at the present time, there is a very real 19 benefit from the tranemission systeta in ter.a of lowcring 20 operating costs fr:xa what they would othernice W. 21 A lio questice. 22 Q Did you at some point say this m rning -- 23 did you refer to the percentage reserve =argin t'ast is 24 recennended as bein:; 25 percent? 25 A The reserve on the P.RI basis is approxinacoly i ~,
119 0 ,,newton-cross w,,g i 25 perce.nt. 2 4 At one efsta vann't thet reecreended reserve 3 percentase lower, clorer to 20 percent! 4 A Was it lover chan it is now or was it lowered? 5 q g,,,,,, g.,,,,,,,,, 6 A Yes it was lower. 7 Q Uus it abcut 19 to 20 percent bafore? 8 A Yes. I can remedocr back :wn*J years am when 9 it was 10 percert. 10 11 i 12 3 O; ia i 14 ..._ z 8 15-E 16 17 18 19 l 20 21 22 l 23 24-25 l ~,
%%% \\ 1911F lewton-cross 1 Q What caused the cost recent increase in recca-O 2 mended reserve nargina? 3 A Forced outage experience basically is the cause 4 of it. 5 O That plants are just not operating as reliably 6 as was experienced years ago? 7 A That's correct. 8 There are longer pericds of naintenance 9 raquired in seca of these big coal-fired unita, the very largo 10 ones. The totality, the. additional rosarve, the reduced i 11 installation costs, the economic savings in energy are all ~ i 12 tradeoffs, cne against the othar, when you dstermine which 13 way you want to go, using the best data.ycu have. {) 14 Q .\\ part of syster planning is to try to cptimize s 5 15 a systen or put together a system ao that the overall ny ten a i E 16 costs are the icwest on an annual operatir.g bcsis. Is it 17 Crcquently necessary to trade off capital costs for fual 18 costa or vice versa 7 19 A tes, and thit is a econou part of the whola l 20 process of determining wnat the rost economic plan is, 21 the option plan, and I will give you, if I may, because we 22 haven' t talked about it before -- I talked about the base 23 load coal-fired planta and nuclear and talked about the 24 coccuntion turbines. The paap storage units are screwhat , () 25 the reverss of that. The pump storaga are a peaking unit, u
M Wewton-cross 1 relatively low cost per KW to install it. Yards creek in 2 Jersey Central is one of them. But, what you have to accept e 3 when you accept that is the fact that you have/to put about 4 three kilowatt hours of pumping energy in for every two kilo-5 watt hours you get out. So, you are taking an energy penalty i. 6 in order to pump that water up to have it available to generate 7 on peak and reduce the peak. 'hu may save -- on certain
- you, 8
occasiong / may even save operating energy cost by virtue of 9 the peak cost is higher than the..off peak cost that you are 10 using to pump. But, you are trading off thsrs cparating i i 11 against taking in additional operating costs in order to 12 save en investatent cost. l Qj On the other hand, in the nuclear er 13 i 14 l j base load coal, you take an additional inyestment cost penalty t in order to achieva operating isavings. 56, all of those thing ls j 15 i 2 l E 16 are part of the total planning procses. 17 18 19 20 21 22 23 24 O 25 l
n s Q 11%3 Newton-cross -3013-- 1 I Q would it be also true that capital costs s O' 2 incurred!in con.orting an oil-fired station to coal firi N 3 would be an example of incurring higher capital costs to 4 get a benefit of lower operating costa? 5 ne additica of scrubhrs, for eg1M 6 A That well ad.ght be an example. I think it any 7 not be entirely apt because you may be doing that because of 8 reliability. 9 gg 7,,,,g,,,g,y,,,,,,3 gggg,,, y,,,,, 10 just not going to be able to get the fuel. So the thought i 11 there, I think,is in so:ee parts you change to coal firing in g order to get the capacity, the reliability. Whether the l 12 Oi '3 oversti enerer cost is snr less or not, r can' t sar. zt i a 14 probably would be. f j 15 Q As a sister planner, would you agree or' diis ~
- r 16 agree with the following statementt "The magnitude of the 17 investment in utility system generation is solely determined 18 by the nagnitude of the system coincident peak?'
19 A No, sir. There are many, many other considera-20 tions. The magnit2de of the investnent is dependent on all 21 of these tradeoffs we talked about. It's dependent on the 22 load shape, the forced outage ratos, the reliability that 23 you achiave, on avaitability of your units, all of thess 24 things would datarmine the invest =ent. You used an example 25 before when you asked ne the question of, if you had just one N
2.6% We ton-crono 469+ 1 hourly peak per year, you put in all combustion turbines. 2 That might be one way to minimise your investment by putting 3 in nothing but combustion turbinea. 4 Q But it would be very expensive to run, if you 5 had to run it all year, is that correct? 6 A That's correct. As a matter of fact, we put 7 cocustion turbines in when we first began to put them in, 8 subject to a very compelling need. We put than in with the 9 hope that we would awer have to run them one hour. They 10 would just sit thera and be insurance. l ig itegretably, that never took place. We 12 had to run them increasingly and we were awfully glad we had Q 13 them in. 14 0 Would it be fair to characterise the Cntario 5 l j f 15 Hydro project as a proxy for a base load generating station? 3 !~ 16 A Yes, I think so. It is, in fact, a coal-fired 17 base load station. 18 Q Really I have just one more question. 19 In your assumptions as to what kind of 20 transmission upgrading would be necessary in the Jersey 21 Central service territory, have you made any assumptions with regard to how much co-generation might be able to coma 22 23 on the line during the 1980's in the Jersey Central servies territory? ,,4 O ~ 25 A I'm not aware personally that there is any ~, w aw
ins Newton-cross -9 HHP 1 particular recognition of that. I'm not aware of any major 2 opportunities for co-generation. 3 To the extent that these - or that they 4 exiat, they would be recognized, certainly. 5 Q Are you aware that Hoffsean Lsitoche is in the 6 process of installing over 20 msyswatts of co-ganeration at 7 their IIe11vedere Vitamin C plant? 8 A I personally have no familiarity with that. 9 I have heard the nama and I know that my colleagues are familiar with it. 11 i Q Is it possible that that project would have i nome impact on the project that I heard you describe as - f Martins Creek -- I'm not sure the full namn because I missed i 14 i it.. but you did refer to one project out in the western i division. 16 A Martins Creek to Gilbert. 17 Q Yes. 18 A 20 megawatts wouldn't aucunt to anything, in 19 terms of major transmission additions, even a 115 KV. 'O ~ MR. MAKUL: I have no further questions. l og JUDG3 ERSHALL: Does that concluda 29 nate Counsel's entire ensminatien of this ~ 23 witness? 24 MR. tiAnDELLI: It looks that vsy O one ,s unless/of the other parties asks a question
2.1% Newton-croco 2 *' ? C thst peaks our intersst. y OV JUDG5 >1 Alls 3 ALLS All right, thank you. 2 MI'8 '"1102 3 !>.i. 5tLLO Staff has no questions. 4 JU'X3 PA9EitALL: Mr. Sahradnik? 5 M.i. S td!?tE'!I?. I have a few qunstions. 6 CRGCC !*XAMI.iATIO: 7 g 2Y M2. GAIUtAD:!IN 9 Q Mr. :iewton, wo testified on direct cencorning D's ontario ::ydro project and you n'ade r-tference to Jersey 10 antra and Catsrb ym Unwhy Wa pmW on a MG 11 a beala.2nd no financial r+1cir2mnt ec.e.ing frca oither Metro-12 8 13 P 11t3" 15d180" C# 2CD81"C' 94V" th'ere been any discucalcsa { with tno sister subsiciari23 of JCP 5L with respect to con-34 i tributing to *;h? Con 3tructiCU Cf the project? f g 3 5 A W il, nem 'aes ' acon no specific discussions 16 with them. They h.tvo boca involved tneru.a the service 37 mpn m ard and Gm@ co tmsduion ed disMu-18 ti n and aanagenent com.ittee in thinking about this, nut 19 l inasmuch em the naed for the generation or the need for the 20 i energy is in Jeraey and is a e in Pennsylvania and we are 21 not contecplating at the ecmont any allocation of that mm ansyhania dec& or Mmpohtm Macn j 23 it would be, in r5y view, inapproprints to atta.pt to involve m ~ O em r aa ce =2 1# it
=== a tuv
====c iat-e 25
- 2. W 7 Newton-cro03 g
A 1 Q As 1 rt::x.cber frca tha initial concsption of 0" 2 the ptoject, that was sonathing that was purbuad, the Catario U dro project, in the aftermath of ths accident at h oa 3 7 4 Mile Island; correct? 5 A It was accelerated by the accident but we had 6 indeed had sctae cent 20t with the2 befort. 7 Q tInen before the accident did ycu hava contset 8 and with 'Inom did you have cc,ntset cone:Iming that project? 9 A Ch, there were s w.e very low-hoy contacts 10 betucen the power supply people, I think back na lacs as i i 11 the fall of 1973. There w re sc=a contacta betwocn Catario e 12 Hydro and FJd in Janusry, 1979. Mc bogsn to naka cur evn O: 13 sp erfic ceneacts 12 e== ice vein in the m,.= of 1m. i ,i Q and that uculd havs been subsequent to tha 14 f i 15 Tarco !!ile Island accidenti i 16 A That's correct. 17 Q Nou, arc the:Js prior contacts la any documented 18 fora? Is your correspondenca botueen ycurself or un p ne 19 eise at h s C m ral e C?U e d h*m-io Hydm 1.7 dua-20 cented fors? 21 A Thoro very well asy be correspondenco. !!y 22 first real participation was starting about, I think, lato 23 Mcv::aibur or early December of 1979. 24 Q Q im I correct in osying that the pric.sry ob- ,,5 jectivo of the Ontario Hydro connection is to provida tha 1
f 2.RS Jcoton-croco ME+. 1 Company with a cheap source of pcver that'c neccer.ary to O 2 replcce the cutage at 1111-1 and 1111-2? 3 A So, en the contrary. It is to previde a Ice-4 coct tource of base load energ prir:arily to replace the 5 porked River gencrcti:en. We vculd czpact and hope that 6 r,II-1 vill be back in service veil before the Ontario 11 dro 7 l 7 project vill be in service. 8 At the time we began ocricus negotiatione, j 9 uc cxpected to have the lio. 2 unit bach by that ti=e. 10 Q C.:n ycu prevido ne uith copies of corres-k Il pendence cencerning this project thct tech place befcre tha 12 j cccident at Tarce Mile Iolend in l': arch of 19797 O 13 V
- 12. KCSTOI:
I don't knew hov volvni-r.cus this is but I don't :ee the relevance d 15 g to the questien. Unless there is come 16 ateriality here ce far s:s d#cing out the 17 reccrds, it wecid seen to be en errencecable 18 'curden. JUDGE !%1$1MLL: An objeccien han been l 20 l = da. Do you core to respond, Mr. Uahradnih? 'I IG. l'A!iL'$Eli!G: Your llouer, i requested ~ this docur.entatica beceuro 1 would like to l \\ 23 vt.rify whether or not there vere any nege-o^n O tintiene in fact which toch picce prier to v 25-the Three 1111o Island accident ccacerning - s
21% Neuton-cro3s C-ett';, I the Ontario Hydro project or shother this ucs G V 2 scoething that did, in fact, develop in the 3 afterrath of that accident with a primary 4 purpoca of obtaining a source of replacement 5 power for the desu 'I111-1 and 2 units. And 6 the relevance would be that this could pos-l 7 sibly have an 1:npact on whether Jersey Central 8 alone should share in thcs cost, the financial 9 cost of the project, or whether the sister 10 cubsidiaries, and espacially Metropolitan !j 11 Edioca, who is the operator of the til plant, e 12 shculd bear so:se of that cost. O; t* "ISS c'> I =ader====d == rc= l 14 juct said, but Ifr. Neuten said the relation- .o* 15 ship between the cost la the need, not the i 16 camcrchip of TMI. And, I don't thich there 17 is any dispute that Jeracy Central ncods base 18 load gencraticn. 19 If you're trying to argue tbae we do l 20 not need base lead generation and that we are 21 just going thrcush this exercise with Ontario i 22 Hydro to repisco idl powcr, that's fine. he l l I don't believs that was and is en incue in 23 24 thin case. O 25 Eil-1 and 2, according to Mr. Ucuton's l t ~ ~..
2.10o I=wton-croso e, I t.cstimary -- and I don't thir.k there is eny O 2, dicpute &,st, were believed to be units 3 shich would be back in serrice before the 4 Caterio liydro connection veuld be posnible. 5 In addition to that, there has been a 6 I trennendous ca;ount of testirraf in the 171C 7 proceedingsuhichhavnindicatedthatthere has been several power purchases made for the 9 purpose of replacies the 311 gansr tion, bcth 10 211-1 cnd 011-2. ,i II i Tiero hevo b ut purchesca fran C6tario j Eydrs in that cat.t3ory but: there has never O i seen w sesem en:: esta parescu1a. I 14 i Ontario IIydro tie fell into that catcaorf. d 15 TALE 'JITIES3: lis I caid earlier, en I 16 the centrary, it is and has been viewed as a 17 l replacement for Forhed 1tiver which was 100 l 18 parcent owned by Jersey Ccutral. l 19 !G. SATJIIIlZ: Judy,c, I think in the 20 raaha of discovery requests which is sanc-l 21 l thing where infor= tion should be provided if 22 it has a ter.dency to becece relevant or to 23 lead to acte kind of reicvaccy, and certainly 24 Q the Ontario liydro project is relevant to thin 25 proceedir.g in that renlm I think it is ~.,
2.2.o i Newton-cross M* 1 W ortant. O We have hed wrous elicecricry re-i' 2 3 cuar.t.e end ondeqer Sotr cas the prties and i 4 e 1 gen thirk this !? something that's over-5 bcxdenecce. I just asked that m have the 6 correrrondmeu end I thirh it f.eceul? he bena-ficir.1 to the Ccurt as ucil as to the parties 8 if there was a completa file vith respect to 9 the dcctr(mtreten of We negotiations hetveen the Ceepr:7 and Ontczio llydro leading up to .~ 11 I the ccurv:=ation af the ~.ro]cet, 12 i Oi '3 .i 14 l I i 15 16 17 18 19 20 l 91 1 l l 22 23 94
- O
~ 25 l l l l ~.,
~ 2.lo1 M UWton-cross nu 1 .JLTG: li M dALL1 Mr. Eirsten, do you (Vh 2 still have an cuentanding objection against 3 the disecriery request? 4 !G. KCSTI3: 1 don't think Mr. 5 Sahradnik has answered the question. Is ha 6 suelosting that we should not contract for 7 a thousand ec3swatts of powerT Is he saying 8 that w don't need it cad vc shonidn't tra7 it 9 cad spend the concf to get that pcser? h t's 10 stat I asa.us is the only relevance of Vast i i 11 he has just said. And, I don't belic/e any-12 body han ::ucented th:t the Oatario Hydro O; 23 project is aca tht=.2 vaich va re-aid th=== f 14 uith eccccnc else because we don't need a 15 thcunand c.cg watte of c:pacity. i 16 ya. c/s /It;IK: 1sm questioning where 17 the fi= ccial burden for the project r.hrnld 18 he placed. 19 !!R. KlF.STE!: Are you suggesting that i 20 we shculd not pay for it even though t:e are 21 going to be the enes that are coing to banc-22 fie c a3 t:7 23 That's the peint that I'm trying to 24 find eut. g J 25 ;
- g, 3j;t;upg;Ig
I n :.utgccting thc ~.
2/2.e3 Newton-crcso 210 2 1 perhaps part of the ffnuncial burden should O 2 se s, read throoanoue ch. oru syste.. 3 11R. KIRST Q : Evsa though they are not 4 going to use it? 5 E. Shi1* MIX: Yes. 6 2. KIRSTE: All right. I don't knov 7 on what theory you could support the idea 8 that scoa other coc:pany should pay for pcuer 9 that's going to be used by Jersey Central. 10 That's the point. If that's the point, 1 l 11 dca't see the materinlity or relevance of 12 that line. 13 If lir. Schradnik is caying that there 14 is some theory upon which some other capany I 15 should be cbliged to provide that capacity i 16 for Ja.recy Central, I'm not avara of ona or 17 that it has been seriously advanced by any-18 body. 19
- 12. M.il%L:
I believe, au 1 under-20 stand Mr. SahraMk's theory, it's possible 21 that the need for the Ontario Hydro purchase 22 uns in sossa way directly or indirectly caused 23 by tha TMI accident. And, it is alleged that 24 l O perheps there was act,Ligence on the part of a 25 sister ccupany and therefore it would be ~., _~_y
2.2o9
- lescan-croac
- l'h 1 It.dsO;24h10 far dOtr. PolitJa 5diSOA CO pay 3 O 2 portion of the cost, given that the con-3 sequences may have been to develop the need 4 for an Ontario Hydro purchase. 5 Is that the thrust of your statenent? 6 MR. SAERADNIK: That's essentially the 7 theory. 8 tct. K12STCis That is the theory't 9 P2. SJ1W@l%: That essentially is 10 part of my reason for requesting the docu- ,i Il i mentation. I think it's i=portant to have 12 g before the Court c::aplete documentatien ulth O 3 reerece to the occario e.yero purch se. I 14 i All L.:s aaking -- I understand that 15 lir. Newton is the indivickul 4ho has besa 16 bandling tha face-to-face nctotiations with 17 this project cnd I have at?ud that vould be a 18 data request, a discovery request that we bo 19 provided with any written docut>2ntation per-taining to those negotiaticas. 21 FA. KIRSTI21: Eacher than prolens this c.cy I suggest tht.t wo will first find cut 23 whether there is any such doct:rc.aute.tien and 24 """ ***-"' '' ""7 6" "2~"t O 25 provide, we will provide it. ~.,
2.1o6 Newton-cross we5. To the extent that it may be very sJ o ~ voltrineus or c:gcasive cr inrolva cther work, 3 we can report that back to p c. and then you 4 can decide s.hether wo beve to do that or not. 5 .iLT C FAR3EALL,3 toes rnybody have any 6 objectics to the proposed postponment of my 7 ruling on this discoverf rec;u. ret? 8 ifA. FAREELLI: Ho cxcept it's =y 9 undereccading that it doecn't epply to this 10 g letter of >=tdcrsecodina, uhich 1 M11 ave is ~ 11 cn independent doewant. 12 ,,i ta. KIRSTD: I.t cut reinir.3 any Q' 13 y objt'etion to that. I'n ject goiq; bach into l j 14 the hiccery of th project. The testirony of 15 l Mr. Net: ton vas, he vac acked, had there been ~ 16 any diccussiens about thLa heferc t' e 7.11 l 17 l accident and he said thct there was; that l 18 i there here been some contacts ntdc utth PJM 19 and the Cernany with respect to the fact tiut 20 Ontario Hydro hcd exc4ss pcw.ar. I don't 21 think tharc is cny dispute shout that or the i 22 l fact titt Cntario Hydro had c:ecss capacity 23 or had buts canvassin3 the por.41 bill:y of O acm =nc nee ina it. 25 013 UITJ253: 1 veul.d Uke to set the i 1 ,s
2.1o 6 Norton-creas Yi it I record straight, if I may. I have not been O personally handling all of-the negotiationc. 3 I have been liriolved in coct of the ce2,0-I tiations. There are other officers of GPU j 4 5 that are involved in this. 6 JJDGE MARSHALLS Mr. Kirsten, I don't 7 think anybody stated any objection to this 8 postpone:sent. Lo you have any idea hou long 9 it would enke to find out if thcre ic any 10 tasterisi in enistenes and if so, how volu=1- ~ 11 i, acus it is and what would bo tha c:actuat of i troublo to retrievs it? O 13 MR. K13STZli: I d:n'e knew. If yeu 4 v I 14 i ask em if the.re has been ever any cornes-d 15 ' pendence with a cecpeny in thich there cra 5 16 several thousand caplcyces, cccc of which 17 have recponsibilities in this cyca, cnd 1 18 have to poll cach cne as to thethur or 1:ct 19 they have sent a letter back cad fsrth to en 20 officer of Ontario Hydro uith respect to this 21 matter anytine prior to 1.pril, 19?), timt ~~ ialght be quito an interesting project just 23 to find cut thst informatica. 24 ?.G. SERAISIE: Judgn,1 dcn' t intend C 25 to be ucrcsecnabic. I thiri Nr. %cuton, uhu ~., I
[M j Hewton-cross 1 was involved in the negotiations, would know O cae contact v.o,1 6.t.. ch. co-, i.s. 2 3 "* *r. just askins thae any doc e nta-1 4 tions concerning the negotiations of the pro-5 ject be provided. 6 F2. KIESTE21: To the extent that there 7 were " negotiations," I ma not so sure I under-8 stand what that means based on Mr. Newton's 9 testimany. I said we will try to investigate 10 and find if there'is an easy answer to this. 11 j: 12 i i O: I-14 i i 15 5 16 17 18 19 20 21 22 23 24 0 25 l l
2.101 4tti 1 JUDGE MA351IALL: Yes, I understand, Mr. O 2 Kirstem. I just wanted a very real ballpark 3 figure as to whether you will expect sie to 4 make a ruling tomorrow or whether it will be 5 a week or Je before we get the information. 6 MR. KIRSTSN: I will try to do it as 7 quickly sevs can and ask Mr. Newton to talk 8 to whatever people ha thinks might have some 9 information and give some idsa of the parameters 10 of the response to the request. i 11 JUDG MARSHE: Okay. 12 g So the request and the objection will 13 Cq remain pending for at least a couple of l I4 l hearing dates. j 1 e 3 15 Mr. Gahradnik, do you have any other i, I 16 questions? 17 MR. SAHN@iIX: Those are all the ques-l l 18 tions I-have, Judge. 19 ,.Ct. KInSTIN: I just have one or two 20 on redirect. l l 21 IGDI t CT EXAMI?tATION l 22 BY HR. KInSTEN: 23 0 Mr. :Texton, Mr. Nardelli during cross exasina-t 24 tion asked you whether theoretically there was a =arket for O 25 the major cccrponents of equipment at Forked River. Did anybody - y
%2.ci Newton-rodirret -tiet 1 on your staff or in the company, to your knowledge, actually 2 canvans the market to detarmine what the actual market was 3 for such components? 4 A I have been advised that there have been at 5 least 230 contacts with other companies including foreign 6 companies. 7 Q And what was the result of that? 8 A The result of that was, no interest. 9 Q sov, you indicated that theoretically the 10 foreign market : Sight be more fertila than the U.S. market. !j 11 ffera those contacts with the foreign market - or did those 12 contacts with the foreign markot give you say indication .,i Q; 13 as to whatthe foreign market was like for this kind of 14 aquipnont? s 15 A There was a very poor market, obviously. 16 Q Of the nuclear units that are under construction 17 throughout the world cutside of the United States, is thera a 18 diffsrence in the size, type, construction of these unita 19 which would, in effset, affect the market for these component 20 parts? 21 A Well, I'm given to understand without any 22 specific peracnal knewledge that the 7eneral tendsacy in the 23 foreign uits is to have analler units. There is nothing of 24 the 1120 sire at Forked P.iver. They generally tend to be O l 25 of a 6, 7, 200 e.sgawatt rangs, taxi =um. ~
1 towton-redirect L2.1 O q l MR. KIRSTENs Thank you, that's all I O 1 2 ha,e. l 3
- 12. namLLIs I have a few questions.
4 33CRO33 EXAMINATIOM 5 3Y M. MARD M 6 Q Mr. Newten, whea you say there is no interest 7 in the equipment at Forked River, are thers any price assumptions 8 underlying that statement? You are not really saying no 9 interest at any price, are you? 10 A Wa my understanding that there has basa no i 11 g istereat at any price. Price, I don't think, was talked about, 12 but ~ g O: '3
== x2=s2==>
==
-, ** n= =*iaa 14 was as to marjor ecaponents. I think Mr. trewton } 15 did testify that s:mallar pieces of equipment ~ s ) I 16 that it was a different kind of situation in 17 that regard. 18 Bat my question was posed with major 19 components in mind. i 20 l Just to clarify that, if I may interrupt, 21 when I talk about major cesponents, I'm talking 1 22 about the three major ones which are the big 23 ticket iteers, the turbine, the staan supply 24 system and the reactor vessel. Am I right 25 about that? ... - - - ~ - -,.
I 211l itewten-recroso Stit-1 T3E WIT 2fESSs Yes, and the generator. O 2 ItM KI1RSTE's: .%re there any other major 3 ones? Are there any other major ones that j 4 you can think of? \\ 5 Tnt! WITMr.Ss e tiell, the step-up trans-j i 6 formera is a large piece, but that has more 7 widespread appeal. 8 If I might clutter up the record fran 9 a satter of personal experience, we are in 10 the procesa now of getting a cenputer to do 11 some of our interchange accourting.
- And, a
12 it was suggested that one of the computers 3 O; 13 =a t saa de.n
==rea <ar rarx 4 xiver =isht f 14 be appropriata. 5 15 16 17 18 19 20 21 22 23 '4 O ~ 25 . r ,_,, - + -,, - --_,_--,--,m,
12.Q. iNewton-roorous I TEN WITNES$s (Continuing) We spent O 2 a good deal of time assessing the adaptability 3 of that equipnent to our needs. This is a 4 piece of equipment running shout a quarter of 5 a million to $300,000. And, we found out that 6 it was not appropriate for our use so we had 7 to abandon it, not the point la that we were 8 doing our best to find another use for it 9 within our own systers. There may be another 10 purchaser for that type of equipnant which i 11 they are investigating, but I don't knew. 12 I think they do have acce possibility g Ol 13 of finding a purche.er for it. co, other f 14 scaller pieces of equipment are being ~ j 15 l acgressivsly pursued. rion't the Co:npany solicit bids for come of thil i 16 Q s 17 equip =ent at Forked River? 18 A It's my tnderstanding that they did. I havo no 19 knowledge of the end resuit of thst, though. 20 0 We can agree, though, that if the price is 21 nado attractivo enough, it night encourage potential buyers 1 22 to spend the meney to take the required modifications to suit 23 their own needs, can't we? 24 A That's trua, if the rodifications are feasibin 25 technically, yes. l
ir 71G Newton-recroca -3HS-1 Q In fact, isn't it also possible that some 'O 2 utility, foreign cr domestic, could be attracted to soze of 3 this equipment on the theory that it could build a nuclear 4 plant at a cut rate price by using these marked down iteus? ,) 5 A I doubt the dif ference in price between getting, ll 6 a bargain from us and buying it new from the saanufacturer 7 would away anybody to put a nuclear unit in. If they did which ~ 8 have a serious plan for a unit to/this might be adaptable, i' 9, then they night be able to utilise it. But I don't thinX i 10 it would cause anybody to go nuclear, if they versn't other-i. l '11 wise planning to. 2 12 Q Whsa you stars testifying regarding the Ontario 13 Eydro project, you said something to the effect that the 14 coat benefit of inis project decreases or tails off, to une I ~ 75' your phrass, ic later years. l E 16 Can you clarify that statament and 17 explain is? 18 A Well, thors will becomo available in the 19 9eaural arca nors icw coat generation, for example. Before 20 the end of this project, we will probably have so:xa of our 21 western coal generation such as ueward in service and m'1 22 of the salem-Hope creek units will be in. There are other 23 units in the general area that will help lower the overall O 24 j cost level in the east and therefore make the advantage of 25 ! buying the coal from the wests that is, the coal froa Ontario l s
l 6 i W9 f ' dowton-cross 411F l l 1 IIydro lesser. O 2 That's what I meant by the Lwn2 fits 3 talling off. t 4 5 6 7 8 1 1 9! 10 .i 1I e 12 O4 13 1 y 14 d 15 l i 16 l 17 IS 19 20 21 22 23 i O 24'1 25 ' ~
'1 1116 i 4K dewton-recroso UnX 1 y 3ut the letter of understanding coesa's can V 2 for an increasing cost over the period of the agreenwnt. 3 sioes it? Is there :ome kind of cost-plus arrangwwuc con-4 templaced? t 5 A It has shifced back and forth. Indeed, there 6 is a cost-plus aleasent in it. Go, that is part of the 7 negotiations. At one point we had increasing dcaand charget 8 sad a cost, whatever it is, an increasing cost prestrably 9 plus a fixed anpunt. 1 hen it has clum6Cd In th0 r#CGG 10 negotiations in their recent desires to go from a cost-plus i 11 to soete kind of split savings basis, vich a luser. cad pos-12 sibly more stable iized deseand clurse. 'ihat's part of the g O 13 negotiations that a goins on. i I4 l I en't think that those are all erx:aara:cJ in the letter of understatid14 U.st we have. f 15 16 Q W o besides yourself is nugotiating thia 17 arrang e t with Ontario Hydm? 18 A Wil, thcre is Mr. Liecks:2p and Mr. S1:2s who 19 are directly involved in it. 'O Q Wuld you say t!x:t the th:ce of ycu are the ~ 91 main principais? ~ 22 A And hr. Cr Nm irc:a the f1=ar.cisi :nd of it. 93 Q During your negotiati ns, hou auch ecaco:n ~ 24 Q bas been czprossed by your Canadian counterparts about tha '5 financial condition of J:.recy Central? ~ ~, m
2.11 b Netreon-rceroso M 1 A Etere has been considerable concern. For O 2 instance, vere we indeed able to carry it forward to a 3 conclusion. 4 Q Has there been some discussion of the pos-5 sihility of third-party financing of this project? 6 A We have talked about it, yes. That is a 7 possibility but we have no firm plan and I know of none. 8 HR. !!NtDELLI: We have no further 9i questions at this time. 10 JULGE IMRSHALL: Does Staff have any ij 11 questions? E 1 12 MS. 33LLO: No questicas. O i 23 auncz MasaAu: Mr. sahradniar 14 MR. SAHRALNIX: So, Your Honor. d 15 JUCCE IMESHALL: Iny further ucations ~ 16 en redirect? 17 HR. KIRSTEN No, sir. 18 JUDC3 MARSHALL: Thank you very such I9 for testifying, Mr. Newton. You're excused. 20 off the record. 21 Gihereupon, there was an off-the-record 22 discussion.) 23 JUDGE MARSIIALL: Back on the record. O """ 'd3 "'" ' " d"7 '"d 95 ~ be back cociorrow. Th:nk you, Counsel.
2.18 ~) Eh I I FWJJC TO TIII.T. ret, cer: Ira cor.t, 1930,1:00 P.M., IC4tc.7,, :cJ Jn:sny,y l j 4 5 6 7 8 9 10 11 2 12 Oi 13 i 14 15 i i l 16 I 17 j 18 19 l 20 i 21 22 I 23 4 O 25 1 ~.,
11W -3H&. I 1 EXu1 NITS 2 Wh PFSC3L TTIG'l PAGE 3 JC-801 Occuscut entitled " Typical Electric Systes" 2070 4 JC-802 Document entitled " CPU 5 Transmissica.and Oletribution System 71muning Practices and 6
- rincipics," ccnalsting of 3 pages 2071 7
JC-803 Docinsaast entitled "Geneal 8 Public utilicies dulk Power Transalesica P1 arming Process" 2071 JC-B0le Document entitled " Representative 10 Lay la ru m e Periot' 2071 11 JC-305 Occuacat eticled "Jorsey Csatral Pesk Load Projection" 2071 12 i JC--306 Document entitled " Jersey Central 13 !Q Inacalled Capaci y trojection, i Breakdown of Interns 1 and Extra-14 territerial Caneratica" 2071 } 15 JC-507 Docur.ent catitled "Jaracy Central } Internal Generatine; Capacity. 16 Arache.csa by 0 erstion Type" 2071 17 gg,4g3 gg,,,,g,,gggga..Zascription of 18 Jersey Central Transmission tin? and Gid Systaa Np ' 2071 JC i>0SA Geuoral l'chlic Utilicies Corpora-20 tion Syste:a Hap 2071 JC-0033 21 Transmission Map of Jersey Ccntral Powr u Light Company 2072 22 JC-309 Docua,ac entitled "111ustration of m ee m Jers q entral 23 Dependenea on Luik Trantimission" 2072 24 JC-310 1 ct:n uc entitled "s.xpected O m er or verrs see men tosa o- ~ Load Cccurrer.ces" 2071
I $2.1% l Fri;31TS (continued) Mt9. NO. r?SCU"*T^M WZ. i 2 JC-311 Eocinent onet tled "S. sit'scrn Jersey Central lagorts itesulting 3 fm Econenic Dispatch of Generation at Various Load Levels" 2072 4 JC-812 Doctament entitled "JCP&L 5 (3-phis-9) 1??O Construction Budget Distribution" 2072 6 JC-813 Doctament entitled "JCP&L 7 (3-plun-9) 1990 Ccn tructica Budget Transmission" 2072 8 JC-814 Document entitled " Distribution 9 Prlority Systeu-Jers.=y Centr.s1" 2072 10 JC-814A Dcetrant ent".tled "'*roarsissica-5 Project PrioritL:ntica System, j 11 JC6L Ct.s psy" 2072-2073 e 12 5 O '3 I 14 i i d 15 5 16 17 18 19 20 21 i 22 23 O 25
7.220 - 31: 0 - 1 0 2 I ti DEX 3 571tnesa Direct Cross Redirect Reeroes 4 EDi*atiD UE!7TO!!, J2. 5 Sy Mr. Kirst.an 2068 3103 6 Dy Mr. Nardelli 3064 3110 7 3y Mr. N:kul 3081 8 Sy Mr. fishradni?t 3096 9 10 i I ~ 11 ' 12 O: '3 e i 14 I i 5 15, i t 16 17 18 19 20 21 22 23 94 - O ~ 25 i d 'l m}}