ML12339A622

Official Exhibit - ENT000515-00-BD01 - Case No.: 10-T-0139 Champlain Hudson Power Express, Inc. Joint Proposal

ML12339A622
Person / Time
Site:	Indian Point
Issue date:	02/24/2012
From:	Blow S, Desnoyers P, Duroy B D, Gallay P, Jeffrey M, Jessome D, Mahnovski S, Martino T D, Perales C A, Sack R L, Danni Smith, Sullivan N, Wellman W Champlain Hudson Power Express, CHPE Properties, City of New York, NY, City of Yonkers, NY, New York State Council of Trout Unlimited, State of NY, Adirondack Park Agency, State of NY, Dept of Argriculture and Markets, State of NY, Office of Parks Recreation & Historical Preservation
To:	Atomic Safety and Licensing Board Panel
SECY RAS
References
RAS 22162, 50-247-LR, 50-286-LR, ASLBP 07-858-03-LR-BD01
Download: ML12339A622 (89)

Text

5479283.32CaseNo.:10-T-0139CHAMPLAINHUDSONPOWEREXPRESS,INC.JOINTPROPOSALFebruary24,2012 ENT000515 Submitted: March 30, 2012 United States Nuclear Regulatory Commission Official Hearing Exhibit In the Matter of

Entergy Nuclear Operations, Inc. (Indian Point Nuclear Generating Units 2 and 3)

ASLBP #:07-858-03-LR-BD01 Docket #:05000247 l 05000286 Exhibit #:

Identified:

Admitted: Withdrawn:

Rejected: Stricken: Other: ENT000515-00-BD01 10/15/2012 10/15/2012 iFebruary24,20125479283.32TABLEOFCONTENTSINTRODUCTIONANDBACKGROUND............................................................................2TERMSOFTHEJOINTPROPOSAL...................................................................................5I.GENERALPROVISIONS..............................................................................5II.EVIDENTIARYRECORD.............................................................................9 III.ENVIRONMENTALCOMPATIBILITYANDPUBLICNEED..................9A.FacilityDescription...........................................................................9B.TheNeedfortheFacility...................................................................13 C.CostoftheCertificatedFacility.........................................................14 D.EnvironmentalImpact........................................................................15a.Topography,Geology,Soils.........................................................16b.AquaticPhysicalCharacteristics....................................................17 c.AquaticSedimentandWaterQuality............................................20 d.BenthicResources..........................................................................21 e.Finfish............................................................................................23 f.LacustrineandAquaticProtectedSpecies......................................25 g.FreshwaterandTidalWetlandsandWaterResources..................27 h.TerrestrialWildlifeandPlantsandProtectedSpecies..................28 i.LandUse.........................................................................................31 j.Agricultural.....................................................................................33 k.VisibilityfromAreasofPublicView............................................34 l.CulturalandHistoricResources.....................................................36 m.Transportation...............................................................................37 n.Noise.............................................................................................39 o.Communications............................................................................40 p.ElectricandMagneticFields.........................................................41E.AvailabilityandImpactofAlternatives.............................................44a.AlternativeTechnologies..............................................................44 b.AlternativeRoutes.........................................................................44 c.AlternativeLocationsforConverterStation..................................46 d.AlternativeMethodstoFulfillEnergyRequirements....................47 iiFebruary24,20125479283.32F.OverlandConsiderations....................................................................53G.ConformancetoLong-RangePlansforExpandingtheElectricGrid....................................................................................................54H.SystemReliabilityImpactStudies.....................................................55 I.StateandLocalLaws.........................................................................56 J.PublicInterest,ConvenienceandNecessity.....................................58a.WholesaleEnergyPriceSavings...........................................58b.EnvironmentalBenefits.........................................................59 c.ReliabilityBenefits................................................................63 d.OtherConsiderations.............................................................63IV.PROPOSEDFINDINGS.................................................................................63V.PROPOSEDCERTIFICATECONDITIONS.................................................64 VI.ENVIRONMENTALMANAGEMENTANDCONSTRUCTIONPLANGUIDELINES......................................................................................64VII.WATERQUALITYCERTIFICATION.........................................................64APPENDIXA:ListofTestimonyandExhibitstobeAdmitted...........................................66APPENDIXB:DescriptionoftheFacilitiesandMaps.........................................................72 APPENDIXC:ProposedCertificateConditionsandMonitoringReports...........................72 APPENDIXD:WaterQualityCertification..........................................................................72 APPENDIXE:EM&CPGuidelines.....................................................................................72 APPENDIXF:BestManagementPractices.........................................................................72FIGURES:Figure1:ComparisonofwholesaleenergymarketbenefitsoftheFacilityforNYCAin2018($millions)...................................59Figure2:ComparisonofemissionreductionsoftheFacilityforNYCAin2018....................................................................60 1February24,20125479283.32BEFORETHEPUBLICSERVICECOMMISSIONSTATEOFNEWYORK

)ApplicationofChamplainHudsonPower)Express,Inc.andCHPEProperties,Inc.for) aCertificateofEnvironmentalCompatibility) andPublicNeedPursuanttoArticleVIIof)CaseNo.10-T-0139 thePublicServiceLawfortheConstruction,)

OperationandMaintenanceofaHigh-)

VoltageDirectCurrentCircuitfromthe)

CanadianBordertoNewYorkCity.)

)JOINTPROPOSALChamplainHudsonPowerExpress,Inc.(CHPEI),CHPEProperties,Inc.(CHPEProperties,and,togetherwithCHPEI,theApplicants),StaffoftheNewYorkStateDepartmentofPublicServicedesignatedtorepresentthepublicinterestinthisproceeding (DPSStaff),theNewYorkStateDepartmentofEnvironmentalConservation(NYSDEC),

theNewYorkStateDepartmentofState(NYSDOS),theNewYorkStateDepartmentofTransportation(NYSDOT),theAdirondackParkAgency(APA),theNewYorkState DepartmentofAgricultureandMarkets(Ag&Mkts),Riverkeeper,Inc.(Riverkeeper),

ScenicHudson,Inc.(ScenicHudson),theCityofYonkers,theNewYorkStateCouncilof TroutUnlimited(TroutUnlimited),theCityofNewYork(CNY),theNewYorkStateOfficeofParks,RecreationandHistoricPreservation(OPRHP)andthePalisadesInterstate ParkCommission,andanyotherpartiesexecutingthisJointProposal(collectively,theSignatoryParties)respectfullysubmitthisJointProposalonthe24 thdayofFebruary,2012, 2February24,20125479283.32pursuanttoRule3.9oftheNewYorkStatePublicServiceCommissions(Commission)ProceduralRules,16N.Y.C.R.R.§3.9(2011).INTRODUCTIONANDBACKGROUNDOnMarch30,2010,CHPEIsubmittedacompilationofstudies,analysesandotherdocuments(theOriginalApplication),purportingtosatisfytherequirementsofArticleVIIoftheNewYorkStatePublicServiceLaw(PSL),totheCommission,seekingaCertificateof EnvironmentalCompatibilityandPublicNeed(Certificate),pursuanttoPSLArticleVII,to constructtheChamplainHudsonHighVoltageDirectCurrent(HVDC)TransmissionSystem (theHVDCTransmissionSystem)includingavoltageconverterstation(theConverter Station)atasiteinYonkers,NewYorkfromtheCanadianborderintheTownofChamplain, NewYork,topointsofinterconnectionwiththeConsolidatedEdisonCompanyofNewYork, Inc.(ConEdison)inManhattanandwiththefacilitiesofUnitedIlluminatingCompanyin Bridgeport,Connecticut.TheOriginalApplicationwassupplementedbyApplicantsonJuly22,2010,July29,2010,August6,2010,andAugust11,2010.ByletterdatedAugust12,2010,theSecretaryof theCommission(Secretary)determinedthatthesubmitteddocuments,assupplemented,were filedorotherwiseincompliancewiththefilingrequirementsofPSLArticleVIIasofAugust11,2010.ApplicantsJuly22,2010supplementalsoinformedtheCommissionandtheactive partiesthattheApplicantswererevisingtheproposaltoeliminatetheHVDCcircuitbetweentheCanadianBorderandBridgeport,Connecticut,andwerechangingtheendpointofthelinein NewYorkCityfromShermanCreektoasubstationinAstoria,Queens,NewYork,ownedby theNewYorkPowerAuthority(NYPA).

3February24,20125479283.32OnOctober27,2010,DPSStaffsubmittedalettertotheCommissionidentifyingthreealternativeroutesegmentsandanalternativelocationfortheHVDCTransmissionSystemsConverterStation.Specifically,DPSStaffproposed:(1)thattheHVDCTransmissionSystem shouldrunforapproximatelyonehundred(100)milesalongright-of-way(ROW)ownedor operatedbyrailroadsonthewestsideoftheHudsonRiverfromtheTownofBethlehem,New York,totheTownofClarkstown,NewYork(theHudsonRiverWesternRailLineRoute);(2) thattheHVDCTransmissionSystemshouldrunalongtheNYSDOTROWonthenortherlyand easterlybanksoftheHarlemRiverforapproximatelysixmilestotherailyardswestofWillisAvenue(theHarlemRiverRailRoute);(3)thattheHVDCTransmissionSystemshould followtheNYSDOTROWfromtheWillisAvenueBridgethroughNYSDOTsHarlemRail YardtotheEastRiver,therebyavoidingtheneedtorunthroughHellGate(theHellGate BypassRoute):and(4)thattheConverterStationshouldbelocatedinNYSDOTsHarlemRail YardratherthaninYonkers.Applicantshaveagreedtoconstructthefacilitiesandimplementsuchmeasuresasarenecessarytopermitatleast1,550MWofelectricenergytobedeliveredfromNYPAs345kV AstoriaSubstationintoConEdisons345kVsystemunlesspreventedbyatransmissionsystem outage,maintenanceoutage,ortheNewYorkStatePowerSystemisinanEmergencyoran EmergencyState,assuchtermsaredefinedintheNewYorkIndependentSystemOperator,Inc.s(NYISO)OpenAccessTransmissionTariff(OATT),thatpreventsthedeliveryof 1,550MWofenergyoutofNYPAsAstoriasubstation.Toachievethisresult,Applicants proposetoconstructa345kVHighVoltageAlternatingCurrent(HVAC)cablecircuitfrom theNYPAgasinsulatedswitchgear(GIS)substationtoConEdisonsRaineySubstation(the Astoria-RaineyCable),andtopursuetheimplementationofaSpecialProtectionSystemor otheroperationalmeasure(s)throughtheNYISO,theNortheastPowerCoordinatingCouncil 4February24,20125479283.32(NPCC)orotherapplicableauthorities.

1Together,theHVDCTransmissionSystemandtheAstoria-RaineyCablecomprisetheProjectproposalandarecollectivelyreferredtohereinastheFacility.TheApplicantswillpursueothersolutionstothisdeliverabilityrequirementifanOperationalMeasurecannotbeimplemented

,providedthattheFacilityremainseconomicwiththeincrementalcostofsuchothersolutions.ProceduralconferenceswereheldinthisproceedingbeforeAdministrativeLawJudges(ALJs)MichelleL.PhillipsandKevinJ.CasuttoonSeptember21,2010,andJanuary19, 2011.PublicstatementhearingswereheldbeforeALJsPhillipsandCasuttoonthefollowing datesandatthefollowinglocations:October24,2010,inYonkers,NewYork;October28, 2010,inKingston,NewYork;November3,2010,inSchenectady,NewYork;November4, 2010,inWhitehall,NewYork;and,November9,2010,inPlattsburgh,NewYork.Applicants alsohostedinformalinformationalsessionsforthepubliconthefollowingdatesandatthe followinglocations:March9,2010,inAlbany,NewYork;April13,2010,inPlattsburgh,New York;April20,2010,inKingston,NewYork;May4,2010,inScotia,NewYork;andMay12, 2010,inYonkers,NewYork.Afterexploratorydiscussionsamongtheparties,aNoticeofImpendingSettlementNegotiationswasfiledwiththeSecretarybytheApplicantsandservedonallpartieson November2,2010.Overfifty(50)Settlementconferenceswereheldbetweentheperiodof Novemberof2010andFebruaryof2012.Inaddition,anumberofconferencecallsand technicalmeetingswerealsoheld.Electroniccommunicationsfacilitatedthesettlementprocess,aswellasnumerousdiscoveryrequests.

1IfConEdisonmovesforwardwiththeinstallationofaphaseangleregulatingtransformer(PAR)connectedtoNYPAsAstoria345kVsubstationasitrecentlyproposedintheNYISOstakeholderprocess,theConverterStationwillalsoincludeafour-breaker345kVGISringbusconnectedtoNYPAsAstoriasubstation.

5February24,20125479283.32Afterthoroughdiscussionoftheissues,theSignatoryPartiesrecognizethattheirvariouspositionscanbeaddressedthroughsettlementandagreethatsettlementisnowfeasible.TheSignatoryPartiesfurtherbelievethatthisJointProposalgivesfairandreasonableconsideration totheinterestsofallpartiesandthatitsapprovalbytheCommissionisinthepublicinterest.The SignatoryPartieshavemadegoodfaitheffortstoaccommodatethepositionsofthenon-SignatoryParties.TERMSOFTHEJOINTPROPOSALI.GENERALPROVISIONS1.ThesupportoftheSignatoryPartiesforthisJointProposalisexpresslyconditioneduponacceptanceorapprovalbytheCommissionofallprovisionsthereof,withoutmaterialchangeorcondition.IntheeventthattheCommissiondoesnotacceptorapprovethis JointProposalinitsentiretyandwithoutmaterialchangeorcondition,theSignatory Partiesshallbefreetopursuetheirrespectivepositionsinthisproceedingwithout

prejudice.2.TheSignatoryPartieshaveenteredintotheJointProposalontheexpressunderstandingthatitconstitutesanegotiatedresolutionoftheissuesinthisproceedingandthatno SignatoryPartyshallbedeemedtohaveapproved,accepted,agreedtoorotherwise consentedtoanylegalorregulatoryprincipleormethodologyunderlyingorsupposedto underlieanyoftheprovisionsofthisJointProposal.Thetermsandprovisionsofthis JointProposalapplysolelyto,andarebindingonlyin,thecontextofthepresentArticle VIIproceedinganddonotnecessarilyreflectthepositionanySignatoryPartywouldtake inafutureadjudicatoryproceeding.EachSignatoryPartyreservestherightinfuture ArticleVIIproceedingstoproposeorincludesuchtermsandconditionsasitmaydeem

appropriate.

6February24,20125479283.323.ThediscussionsthatproducedthisJointProposalhavebeenconductedontheexplicitunderstanding,pursuanttoRule3.9(d)oftheCommissionsProceduralRules,16N.Y.C.R.R.§3.9(d)(2011),thatanydiscussionsamongtheSignatoryPartieswith respecttothisJointProposalpriortotheexecutionandfilingthereofshallnotbesubject todiscoveryoradmissibleasevidence.4.TheSignatoryPartiesrecognizethatcertainprovisionsofthisJointProposalcontemplateactionstobetakeninthefuturetoeffectuatefullythisJointProposal,includingthe reviewundertheNationalEnvironmentalPolicyAct(NEPA),whichmustbe completedinordertoallowFederalagenciestoissuepermitsandapprovalsnecessaryin ordertoallowconstructionoftheFacilitytoproceed.Accordingly,theSignatoryParties agreetocooperatewitheachotheringoodfaithintakingsuchactionsandtorefrainfrom takinganyaction(s)orposition(s)intheseoranyotherfederalproceedingsrelatingtothe sitingorotherenvironmentalimpactsoftheFacilitythatwouldconflictwiththe constructionandoperationoftheFacilityasagreedtointhisJointProposal,withthe exceptionthattheauthorityandresponsibilitiesofNYSDOSpursuanttoArticle42ofthe ExecutiveLawand15C.F.R.Part930subpartDarenotaffectedbythisprovision.5.NothinginthisJointProposaloranyappendixtheretoisintended:a.todirectlyimposeanyobligationsonorlimitanypre-existingrightsofanypartyotherthanApplicants;orb.torequirethepaymentofincidental,consequential,orpunitivedamagesbytheApplicants,exceptasexpresslystatedintheProposedCertificateConditions (AppendixC),Condition29(d);orc.toobligatetheApplicantstopayfordamagetoanyexistingco-locatedinfrastructure(CI),asdefinedinCondition27ofAppendixC,attributableto 7February24,20125479283.32thedefectiveconditionofsuchexistingCI,ortorestoresuchexistingCItoabetterconditionthanthatexistingimmediatelypriortothecommencementof constructionintheimmediatevicinityofsuchexistingCI;ord.toobligatetheApplicantstopayforanydamagetoanyexistingCIwhichcouldhavebeenavoidedbytheexerciseofreasonablecarebytheowner(s)and/or operator(s)thereof;ore.tolimitinanywayanyrightstheApplicantsmayhaveinlaworinequitytoreceivecompensationfromanyowner(s)and/oroperator(s)ofCIforanydamage totheFacilityorinjurytoworkerscausedinwholeorinpartbytheconstruction, operation,maintenance,orrepairofanyCIbytheowner(s)and/oroperator(s)

thereof.6.TheSignatoryPartiesagreethat,ifanewmaterialissueisraisedbythepublicatanypublicstatementhearingheldinthisproceedingafterthefilingofthisJointProposalor inpubliccommentstimelysubmittedinconnectionwiththefiledJointProposal,nothing inthisJointProposalshallberegardedasrestrictinginanywaytheabilityofDPSStaff ortheNYSDOStoaddressthatnewmaterialissueinitstestimonyorpleadingsfiledinthisproceeding,providedDPSStaffortheNYSDOSnotifiesallpartiesofits determinationthatanewmaterialissuehasbeenpresentedwithinthirty(30)daysfollowingtheconclusionofthelastpublicstatementhearing(ifthenewissueisraisedforthefirsttimeinapublicstatementhearing)orthecloseofanypubliccommentperiod (ifthenewissueisraisedforthefirsttimeinpubliccommentsfiledwithinthepublic commentperiod).Exceptasexpresslyprovidedintheprecedingsentenceortotheextent aSignatoryPartyhasexpresslyreserveditspositionononeormoreissuesaddressedin theJointProposal,allSignatoryPartiesagreetosupportCommissionapprovalofthe 8February24,20125479283.32JointProposalinanypleadingsortestimonyfiledinthisproceeding.Inordertoqualifyasamaterialissueforpurposesofthisprovision,anissuemusthaveamaterialbearing onafindingthattheCommissionisrequiredtomakeoraconditionthatthesignatory partieshaveagreedshouldbeimposedunderPSL§126inthisproceedingorthat pertainstotheobligationsandresponsibilitiesoftheNYSDOSpursuanttoArticles6,6B and42oftheNewYorkStateExecutiveLaw.7.IntheeventofanydisagreementovertheinterpretationofthisJointProposal,orimplementationofanyoftheprovisionsthereof,thatcannotberesolvedinformally amongtheSignatoryParties,suchdisagreementshallberesolvedinthefollowing

manner:

a.theSignatoryPartiesshallpromptlyconveneaconferenceandingoodfaithattempttoresolveanysuchdisagreement;and,b.ifanysuchdisagreementcannotberesolvedbytheSignatoryParties,anySignatoryPartymaypetitiontheCommissionforresolutionofthedisputed

matter.c.Notwithstandingparagraphs7(a)and(b)above,anymaterialchangestotheprojectthatwouldaltertheApplicantsabilitytofulfilltheacceptedconditionsin theApplicantscoastalconsistencycertification,orshouldfutureconsistency certificationsbenecessaryifadditionalfederalauthorizationactivitiesrequire federalagencyapprovalorfundingbeyondthoseNYSDOSconsideredinitsJune 8,2011conditionalconcurrence,thosematerialchangesoradditionalactivities shallberesolvedpursuantto15C.F.R.Part930subpartD.

9February24,20125479283.328.ThisJointProposalshallnotconstituteawaiverbytheApplicantsofanyrightstheymayotherwisehavetoapplyforadditionalormodifiedpermits,approvals,orcertificatesfromtheCommissionoranyotheragencyinaccordancewithrelevantprovisionsoflaw.9.ThisJointProposalisbeingexecutedincounterpartoriginalsandshallbebindingoneachSignatoryPartywhenthecounterpartshavebeenexecuted.II.EVIDENTIARYRECORD10.AppendixAattachedtothisJointProposalliststhediscovery,testimony,affidavitsandexhibitsagreeduponbytheSignatoryPartiestobeproposedforadmissionasrecordevidenceinthisproceeding.ThedocumentslistedinthisAppendixarebeingfiled contemporaneouslywiththisJointProposal.III.ENVIRONMENTALCOMPATIBILITYANDPUBLICNEEDA.FacilityDescription11.TheHVDCTransmissionSystemproposedbytheSignatoryPartiesinthisJointProposalwouldbecomprisedoftwosoliddielectric(nofluids)HVDCelectriccables,each approximatelysix(6)inchesindiameter,extendingfromtheinternationalbordertothe ConverterStationinAstoria,Queens,NewYork(Astoria).FromtheConverter Station,twoHVACcircuitswouldconnecttoNYPAs345kVGISSubstationlocatedat thecomplexofelectricgeneratingfacilitieslocatednorthof20 thAvenueand29 thStreetinnorthernmostAstoria,andtheAstoria-RaineyCablewouldconnectthatsubstationto ConEdisons345kVRaineySubstationlocatedonthenorthwestcornerof36 th AvenueandVernonBoulevardinAstoria.TheHVDCtransmissioncableswouldbeinstalled eitherunderwaterorundergroundalongtheoverlandportionsoftheHVDCTransmission Systemroute.TheConverterStationwouldbeconnectedtotheNYPAGISsubstation 10February24,20125479283.32viaanundergroundHVACline.TheHVACcablesoftheAstoria-RaineyCablewouldbeinstalledundergroundinthestreetsoftheCNY.12.TherouteoftheFacility(theRoute)isdepictedonaseriesofmapsincludedasAppendixB;thedepictionisofanominalcenterline(theCenterline)andanAllowedDeviationZone.ThoseportionsoftheAllowedDeviationZonethatareultimately determinedtobeactuallyaffectedbyconstructionoftheFacility,aswellascertainareas outsidetheAllowedDeviationZonethatareneededtemporarilyforsiteinvestigation, access,andconstruction,arereferredtoastheConstructionZone.WhentheFacilityis completed,thoseowningit(theCertificateHolders)wouldhaveeitherexclusive controlof,viafee,easement,orotherappropriateinterest,orrightsgrantedbya governmentalauthoritytousesuchauthorityspermanentROWandcertainadjacent areasasdefinedinAppendixC,Condition5.TheAstoria-RaineyCablewouldbe locatedinthestreetsofCNYinaccordancewithrightsgrantedbyCNY(collectively,the FacilityROW).13.TheHVDCTransmissionSystemwouldoriginateunderwaterattheinternationalborderbetweentheUnitedStatesandCanadaintheTownofChamplain,NewYorkandcontinuesouthintoLakeChamplain.Two(2)cableswouldextendsouththroughLake Champlainforapproximatelyonehundred-one(101)milesentirelywithinthe jurisdictionalwatersofNewYorkState(NYS).AtthesouthernendofLake Champlain,thecableswouldexitthewaterintheTownofDresden,NewYork.From Dresden,theHVDCTransmissionSystemwouldcontinueoverlandforapproximately eleven(11)milesprimarilywithintheROWofNYSRoute22,totheVillageof Whitehall.

11February24,20125479283.3214.ToavoidinstallingHVDCcableswithintheHudsonRiverpolychlorinatedbiphenyl(PCB)site(U.S.EnvironmentalProtectionAgency(EPA)IdentificationNumberNYD980763841),whichstretchesfromHudsonFalls,NewYork,totheFederalDamatTroy,NewYork,aswellasincertainsensitiveareaswithinthelowerHudsonRiver,the cableswouldbeburiedalonganoverlandroute.IntheVillageofWhitehall,thecableswouldtransitionfromtheRoute22ROWtoentertheexistingrailroadROWownedby CanadianPacificRailway(CP)andremainburiedforapproximatelysixtyfive(65) milesinandalongtherailroadROWfromWhitehalltoSchenectady.Theproposed cableroutewouldenterErieBoulevardjustnorthoftherailroadcrossingatNottStreet andcontinuealongErieBoulevardtoapointsouthofStateStreetwhereitwouldagain entertherailroadROW.AlongthisportionoftheroutethereareseveralalternativeroutingsthatincludeboththerailroadROWandvariouspublicwaysfortransitioning fromtherailroadtothecitystreets.ThepublicwaysincludeNottStreet,NorthJay Street,GreenStreet,NorthCenterStreet,PineStreet,UnionStreet,LibertyStreetand StateStreetaswellasprivateproperty(ParkingLot)atapproximately160Erie Boulevard.TheroutewouldfollowtherailroadROWforashortdistance,andwould thendeviatewestoftherailroadproperty,passunderInterstate890thenturnsouthalong theeasternedgeoftheGeneralElectric(GE)property,approximatelyparallelwiththeCSXrailroad(CSX),re-enteringtheCPrailroadROWjustnorthofDelawareAvenue.FromthispointinSchenectady,thelinewouldfollowtheCPrailroadROWto Rotterdam.IntheTownofRotterdam,NewYork,theroutewouldtransferfromtheCP ROWtotheCSXROWandproceedsoutheastforapproximatelytwentyfour(24)miles beforeenteringtheTownofSelkirk.Thecableswouldthentravelsouthfor approximatelytwentynine(29)milesgenerallyinandalongtheCSXROWthrough 12February24,20125479283.32Ravena,NewBaltimore,Coxsackie,theTownofAthensandVillageandtheTownofCatskill,beforeenteringtheHudsonRiverintheTownofCatskill(hamletofCementon).15.UponenteringtheHudsonRiverviaHorizontalDirectionalDrill(HDD),theHVDCunderwatercableswouldbelocatedwithintheHudsonRiverforapproximately67.05milesuntilreachingapointnorthofHaverstrawBay.Thecableswouldleavethewater viaHDDandentertheCSXROWintheTownofStonyPoint,RocklandCounty.The cableswouldbypassHaverstrawBayforapproximately7.66miles,includingthreeHDDinstallationsundertheStonyPointStateHistoricParkSiteandRocklandLakeState Park.AftertheHDDundertheparks,thecableswouldentertheHudsonRiverviaHDD, andbeburiedintheriverforapproximately20.7milestotheSpuytenDuyvil,which leadstotheHarlemRiver.Thecableswouldextendsouth-easterlywithintheHarlemRiverforapproximately6.6miles,exitingthewatertoalocationalonganexistingrailwayROWintheBronxandcontinuingalongthatROWforapproximately1.1miles.Atthispoint,thelinewouldentertheEastRiverviaHDD,crosstheEastRiverandmake land-fallatAstoria,Queens.16.AtAstoria,thecableswouldterminateataConverterStationtobelocatednearLuysterCreek,northof20 thAvenue.FromtheConverterStation,a345kVundergroundcircuitwouldconnecttotheexisting345kVGISsubstationownedbyNYPA.TheConverter StationwouldbeinstalledonpropertiescurrentlyownedbyConEdisonlocatedinan industrialzoneinAstoria.TheHVDCConverterStationwouldbeacompacttype withatotalfootprint(i.e.,buildingandassociatedareasandequipment)ofapproximatelyfive(5)acres(approximately550feetby400feet).Themainbuildingwouldbe approximately165feetby325feet,withaheightofapproximately70feet.These 13February24,20125479283.32circuitswouldinterconnectwiththeNYPAsubstationnearthesiteoftheCharlesPolettiPowerProjectinQueens,NewYork.

217.TheApplicantswillinitiateaSystemImpactStudyattheNYISOconcerningtheAstoria-RaineyCablewithinthirty(30)daysafterthefilingofthisJointProposal.TheAstoria-RaineyCablewouldbeconstructed,owned,andmaintainedbytheCertificateHolders andwouldbeundertheoperationalcontroloftheNYISO.18.TheCommissionmustconsiderthetotalityofalloftherelevantfactorsinmakingitsdeterminationofenvironmentalcompatibilityandpublicneed.Therelevantfactors include,withoutlimitation:theelectricsystem,cost,environmentalimpact,the availabilityandimpactofalternatives,overlandconsiderations,conformancetolong-rangeplans,stateandlocallaws,identifiedbenefits,andthepublicinterest,convenience andnecessity.TheSignatoryPartiessupporttheissuanceofanArticleVIICertificateto theApplicantsfortheFacility,asdescribedhere,basedonthosefactors.B.TheNeedfortheFacility19.TheFacilityisneededtodeliveranestimated7640gigawatthours(GWh)peryearofenergy,comprisedofhydroelectricandwindenergygeneratedinCanadatoCNY.Thebenefitsofthesedeliverieswouldincludereductionsinwholesaleelectricpowerpricesandexpectedreductionsinemissionsofsulfurdioxide(SO 2),oxidesofnitrogen (NO x)andcarbondioxide(CO 2)asdescribedindetailinparagraphs141-143below.20.NYISOs2010ComprehensiveReliabilityPlan(CRP)identifiedseveralriskfactorsthatcouldaffecttheimplementationofthereliabilityplanandfuturesystemreliability, 2IfConEdisonproceedswithitsrecentlyannouncedplanstoconnectaPARtoNYPAsAstoria345kVsubstation,theConverterStationwillalsoincludea345kVGISringbusinabuildingadjacenttoandonthesameparcelastherestoftheConverterStation,unlessasuperiorsiteisavailableclosertoNYPAs345kVAstoriasubstation.

AdditionalinformationonthisGISringbusandthebuildinginwhichitwouldbeconstructedtohouseitisprovided intheReportattachedheretoasExhibit125.

14February24,20125479283.32includingHigherthanExpectedLoadGrowth(§3.1.1);EnvironmentalInitiativesandZonesatRisk(§3.1.2);andIndianPointPlantRetirementScenario(§3.1.3).In addition,theCRPatpage9notedtheincreasingrelianceoncustomerswillingtocurtailtheirelectricpowerdemands(SpecialCaseResourcesorSCRs);suchcustomersare notobligatedtocontinuetoregisterattheratesprojectedbythe2010CRP.Thefacility shouldhelpmitigatethepotentialadverseimpactsthatmaybeassociatedwiththeserisk factors,althoughitisuncertainwhetherthesefactorswillmaterialize,ortheextenttowhichtheFacilitycouldmitigatesuchimpacts,atthispoint.21.Thedeliveryofuptoanadditional1,000MWofelectricitytoCNY,throughtheFacilitywouldprovideasignificantincreaseinenergysupplycapabilityandaresultant enhancementinsystemreliability.Thesedeliverieswouldalsoenhancereliability throughfueldiversitybyreducingtheproportionofCNYselectricityneedssuppliedby naturalgas-firedgeneration.C.CostoftheCertificatedFacility22.Asoriginallyproposed,thecapitalcostoftheHVDCTransmissionSystemwasestimatedtobe$1.9billion.InevaluatingthecapitalcostoftheHVDCTransmissionSystem,asnowproposed,estimatedtobe$2billion,theCommissionshouldrecognize that,asamerchantproject,alltherisksassociatedwiththeHVDCTransmissionSystem

-aswellasallrisksassociatedwiththeuseoftheAstoria-RaineyCablebyshippersalso usingtheHVDCTransmissionSystem-wouldbebornebyprivateinvestorsratherthan byutilityratepayers.Acertificateconditionisproposedthatwouldallowthe Commissiontoreconsideritspublicinterestfindingandreopentherecordshouldthe CertificateHolderschangetheirbusinessmodelandseekapprovalofalternativeor additionalmeansoffinancingthethesefacilities,suchascost-of-servicerates,from 15February24,20125479283.32eitherafederalorstateregulatorybody.CertificateHoldersfurtheragreethatthereshallbenocost-basedchargesforuseoftheAstoria-RaineyCableforanyenergyorcapacityproducedbythecapabilityoftheAstoriaEnergy2GeneratingStationexistingandin operationatAstoria,Queens,NewYorkonFebruary1,2012.Exceptasexpressly providedinthisParagraph22,nothingcontainedinthisJointProposalshallbeconstrued asaffectinginanywaytherightsofCertificateHolderstounilaterallymakeapplication totheFederalEnergyRegulatoryCommission(FERC)forachangeinrates,termsand conditions,charges,classificationofservice,ServiceAgreement,ruleorregulationunder section205oftheFederalPowerAct(FPA)andpursuanttoFERCsrulesand regulationspromulgatedthereunder.23.DPSStaffhasestimatedthecostoftheAstoria-RaineyCabletobe$194million(2015dollars),basedontheNYISOClassYear2010FacilitiesStudies,Part2Studies:DeliverabilityStudyandSystemDeliverabilityUpgradeFacilities(SDU),June29,2011,pp.24-25,postedundermeetingmaterialsfortheNYISOOperatingCommittee, July14,2011.ThisincludesthecostoftheAstoria-RaineyCable,ExistingStation UpgradesatAstoriaandRainey,andassociatedSalesandServicetax,adjustedfor inflation.D.EnvironmentalImpact24.TheApplication,testimonyandexhibitsdesignatedforinclusionintheevidentiaryrecorddescribethenatureoftheprobableenvironmentalimpactsoftheFacilityandarebrieflysummarizedbelow.TheenvironmentalimpactsassociatedwiththeFacilityareexpected tobeavoided,minimizedormitigated,providedthattheBestManagementPractices (BMPs)andGuidelinesforthepreparationoftheEnvironmentalManagementand ConstructionPlan(EM&CPGuidelines)agreedtobytheSignatoryPartiesareadhered 16February24,20125479283.32tointhepreparationoftheEnvironmentalManagementandConstructionPlan(EM&CP)andprovidedthattheEM&CPandtheProposedCertificateConditions agreedtobytheSignatoryPartiesarestrictlycompliedwithduringfacilityconstruction, operation,andmaintenance.TheSignatoryPartiesagreethattheFacility,locatedandconfiguredasprovidedinthisJointProposal,representstheminimumadverse environmentalimpactconsideringthestateofavailabletechnologyandthenatureand economicsofthevariousalternativesandotherpertinentconsiderations.Therouteofthe Facilityispreferredbecauseitwouldavoidand/orminimizethedisturbanceofnatural habitat,andwouldusesomeexistingandpreviouslydisturbedROW.25.Thefollowingsectionsaddressthepotentialforenvironmentalimpactstoresultfromtheconstruction,installationandoperationoftheFacilitywithrespecttovariousimpact types.a.Topography,Geology,Soils26.Nopermanentorsignificantimpactsrelatedtogeologyorsoilsareanticipated.Alongtheoverlandroute,initialclearingoperationswouldincludetheremovalofsoilsintheimmediatetrencharea.Typically,thetrenchwouldbeuptonine(9)feetwideatthetopandatleastthree(3)feetdeeptoallowfortheproperdepthandseparationrequiredfor theburialofthecables.Erosioncontrolssuchasstrawbalesandsiltfencingwouldbe usedduringconstructiontominimizestorm-waterrun-offandtheerosionofsoilsand surficialgeologicmaterials,bothatthetrenchandatthesoilstockpiles.Upon completionoftheinstallationoftheoverlandcable,thesurfaceoftheFacilityROWdisturbedbyconstructionactivitieswouldbegradedtomatchtheoriginaltopographic contoursandtobecompatiblewithsurroundingdrainagepatterns,exceptatthose locationswherepermanentchangesindrainagewillberequiredtopreventerosionthat 17February24,20125479283.32couldleadtopossibleexposureofthecablesorwhererestorationwouldbecontrarytosoundROWmanagementpractices.Animportantgeologicfeature,theHudson PalisadesinRocklandCounty,willbecrossedviaHDDinstallationstoavoidsurface disturbancesbydrillingbeneaththesurfaceforlongdistances.b.AquaticPhysicalCharacteristics27.IntheHudsonRiverandportionsofLakeChamplain,jetplowinstallationtechnologywouldbeusedtoburytheHVDCTransmissionSystemsunderwatercables.Thejet plowwouldresultinfluidizationofthesediment,allowingbothDCcablestobeburied side-by-sideinasingletrench,withtheoptionofincludingafiberopticcable.Burial depthwithintheHudsonHarlemandEastRiverswillbeatthemaximumdepth achievablethatwouldalloweachpoleofthebi-poletobeburiedinasingletrenchusing ajet-plow,whichisexpectedtobeatleastsix(6)feetbelowthesedimentwaterinterface.Wherethecablestraverseanyfederallymaintainednavigationchannel,thecableswillbeburiedatleastfifteen(15)feetbelowtheUnitedStatesArmyCorpsofEngineers(USACE)authorizednavigationchanneldepthinasingletrench.Burial trencheswouldbeinstalledinalinearpathapproximatelytwo(2)feetwide,withanadditionalsix(6)toeight(8)footwidthdisturbedalongthesedimentsurfacebythejet trenchingdeviceskids,wheelsorsupportframe.Depressionsinlakebottomsorriver-bedsareanticipatedafterinstallationbutitisexpectedthatthetopographywouldreturn topre-installationconditionsthroughnaturalredepositionofthedisturbedmaterialinto thetrenchwithinthree(3)years.28.TheuseofshearplowinstallationtechnologyinthesouthernportionofLakeChamplainwouldresultinthesedimentbeingcuttoasufficientdepthtoburythecablesatatarget depthofbetweenthree(3)andfour(4)feetorthemaximumreasonablyattainabledepth, 18February24,20125479283.32whicheverisshallower,inalinearpathoflessthanonefootinwidth.Aswouldbethecasewiththejetplow,anydepressionsareexpectedtofillinnaturallyasaresultof naturalsedimentredeposition.29.Theuseofthejetploworself-propelledremotelyoperatedvehicles(ROVs)inthenorthernpartofLakeChamplainwouldresultinthefluidizationofthesediment sufficienttoallowthecablestobeburiedatatargetdepthofbetweenthree(3)andfour (4)feetorthemaximumreasonablyattainabledepth,whicheverisshallower.Inthose locationswherethewatersofLakeChamplainareonehundredfifty(150)feetdeepor deeper,thecablemaybeburiedatdepthsshallowerthanthree(3)feet,orbelaidonthe lakebottomwithoutburial,butonlyifarecognizedauthoritativetechnicalconsultant concludesthatpublichealthandsafetycanbeappropriatelyprotectedwithoutburialof thecable,andsuchconclusionisratifiedbyCommissionapprovaloftheEM&CP.30.TheuseofHDDtechnologywouldavoidtheneedforshorelinetrenchinganddisturbancetotheshallowwaterinterfacebetweenlandandwater.Thecableswould enterandexitthewaterthrougheitheracofferdam,whichwouldbeapproximately sixteen(16)feetbythirty(30)feetwithadredgedentry/exitpittypicallysix(6)toeight (8)feetdeep,orthroughasteelpipe.Theinstallationandremovalofcofferdamsin accordancewiththeProposedCertificateConditionsproposedalongwiththisJoint Proposalarenotexpectedtohaveanysignificantimpactsonaquaticphysical characteristics.31.Conventionalbucketdredgingwouldbeusedtopre-dredgeinordertoachieveauthorizedcableburialdepthsinanyfederalnavigationchannelandforHDDentryandexitpits.

Thedredgedmaterialwouldbeplacedinscowsandeitherreplacedinthetrench(ifdeterminedbytheappropriatepermittingauthoritytobesuitableforreplacementinthe 19February24,20125479283.32trench)orpitsorremovedforplacementatapermittedlocation.Dredgingmayresultinsedimentresuspensionasthebucketisbroughttothesurface.Theassociatedplume wouldtravelvaryingdistancesdependinguponsedimenttypeandhydrodynamics.

Impactsareexpectedtobesimilartothedepositedsedimentssuspendedbywaterjetting.

Placementofimportedbackfillwhendredgespoilisnotusedwouldcreatesome additionalincreasesinsuspendedsediment,buttheseareexpectedtobeshort-termand localized.Anyimpactsfromdredgingdiscussedabovearenotexpectedtobesignificant.32.Inareaswherethecablescannotbeburied,primarilyareasofrockysubstrateoratutilitycrossings,thecableswouldbelaidonthebottomandprotectedbylayingarticulated concretematsorotherappropriatematerialsoverthecablesforprotection.Thematswillalterlocalhydraulicconditionssuchthatsomesedimentdepositionorscouringmay occuraroundtheirregularityinthebottomformedbythemats.However,theoverall changeinbottomtopographywouldbesmallbecausethematswillextendonlyashort heightabovethebottom.Thematsarenotexpectedtohaveasignificanteffectonnear bottomhydrodynamics,whichmaybesimilartotheconditionsfoundinrockybottom

areas.33.DuringHVDCTransmissionSystemoperation,itisanticipatedthatthemainsourceforpotentialimpactstoaquaticphysicalcharacteristicswouldoccurintheeventofcable damage.Inthisinstance,ajetplowmaybeusedtounburyalengthofthecableoneither sideoftherepairlocation.Thecablewouldthenbecutandtheendsbroughttothe surface.Thedamagedsectionofcablewouldbecutoutandanew,slightlylongerpiece ofcablewouldbesplicedinandthecableloweredtothelake-orriverbed.Thecable wouldthenbereburiedbydiveroperatedhandjets(handjetting)oruseofROVswith waterjets.Theimpactsaresimilartothosedescribedfortheoriginalinstallation,but 20February24,20125479283.32muchsmallerindurationandextent.BecausetheHVDCcablesdonotcontainacoolantfluid,thereisnopotentialforfluidreleaseintheeventofadamagedcable.34.InstallationandoperationoftheHVDCTransmissionSystemsunderwatercableswouldnothaveanysignificantimpactsonnaturaltidalfloworwaterdepths,astheunderwater cableswillbeburiedintheHudson,HarlemandEastRivers;andeitherinaburied configurationundertheLakeChamplainlake-bedorlaiduponthesurfaceofthelake bedinwaterdepthsofonehundredfifty(150)feetorgreater.c.AquaticSedimentandWaterQuality35.HydrodynamicmodelingofthenorthernLakeChamplainandtheHudson,HarlemandEastRiversperformedbytheApplicantsandincludedintheEvidentiaryRecord (Exhibits84,85and90)indicatesthatinstallationoftheHVDCTransmissionSy stemsunderwatercables,inaccordancewiththeWaterQualityCertification(WQC, AppendixDtothisJointProposal),wouldlikelyresultinsedimentdisturbanceand resuspensionofshortdurationandwithinagreedtolimits.Dispersionofsediments duringcableinstallationwouldbeinfluencedbyhorizontaladvection,dominatedbylocal tidalcurrentsandsettlingrates.BecausethebottomsedimentsalongtheHVDC TransmissionSystemrouteareprimarilysiltandsand,sedimentsresuspendedduring cableinstallationareexpectedtosettlequickly.36.HydrodynamicmodelingofsouthernLakeChamplainperformedbytheApplicantsandincludedintheEvidentiaryRecord(SeeExhibits84and90)showsthatwaterquality standardsforthestatesofNewYorkandVermontareexpectedtobeachievedwiththe useofshearplowfromCrownPointsouthtoDresden,NewYork.TheApplicantshave alsoagreednottoutilizethejetploworshearplowunlesstesttrialshavesuccessfully 21February24,20125479283.32demonstratedtheirabilitytoachievethetotalsuspendedsolids(TSS)standardsestablishedintheWQC.37.Monitoringofsuspendedsediments,turbidityandwaterquality,wouldbeperformedpriortoandduringcableinstallationinaccordancewiththeWQC(AppendixD)andthe SuspendedSediment/WaterQualitySamplingandMonitoringPlan(Attachment1of AppendixCtothisJointProposal)forjetplowembedmentoperationsandshearplow embedmentoperations.Mitigationstrategieswouldbeimplementedpriortoandduring installationifconditionsexceedthewaterqualitythresholdsestablishedintheWQC (AppendixD)andtheProposedCertificateConditions(AppendixC).38.ASpillPrevention,ControlandCountermeasures(SPCC)PlanoritsequivalentwouldbefiledaspartoftheEM&CPandimplementedduringconstructiontoavoidor minimizepotentialimpactstoaquaticsedimentsandwaterqualitythatcouldresultfromspillsoffuel,oils,orothersubstancesassociatedwithaquaticinstallationvesselsand constructionequipment.39.Nopermanentorlong-termimpactsonwaterqualityfromcableinstallationareexpected.Inaddition,noimpactsareexpectedtooccurduringcableoperationunlesscablerepairis required.d.BenthicResources40.ConstructionoftheHVDCTransmissionSystemisexpectedtocauseatemporary,localizeddisturbancetothebenthos.However,theareadisturbedrepresentsasmall fractionofthebottom,anditisexpectedthatthetemporaryandlocalizedlossofbenthic preyorresourceswouldnothaveanysignificantimpactsonbenthicresources.In addition,recruitmentandre-colonizationofthebenthiccommunitiesareexpectedto 22February24,20125479283.32occurfollowingconstructionbecausesoft-bottombenthicspecieshaveadaptedtonaturallyoccurringbottomdisturbances.41.Duringjetplow,shearplow,conventionaldredgingandHDDactivities,potentialimpactstobenthiccommunitieswouldbelimitedtotheareasofcableinstallationandcofferdamdredging.Temporaryimpacts,includingincreasesinsuspendedsedimentconcentrations andredepositionofthesesediments,mayextendbeyondtheimmediateareaofactive constructionbutarelikelytobetemporallyandspatiallylimited.42.HDDtechniquesandtheinstallationoftemporarycofferdamstocontainsedimentdisturbedduringdredgingatlandfalllocationswillalsoavoidorminimizesuspendedsedimentandturbidityeffectsinthenearshorebenthichabitats.Theuseofjetplowand shearplowembedmentandHDDconstructionmethodsisnotexpectedtointerferewith opportunisticre-colonizationofbenthosfollowingconstructionactivities.43.Itisexpectedthatalong-termalterationofthelakeorriverbottomwouldoccurwiththeplacementofrip-raporarticulatedconcretematsalongthecableroute,whichwould resultinthemortalityofbenthicbiotaandotherimmobileorslow-movingbenthic organismslocatedintheimmediateareaofplacement.Giventheanticipatedshort segmentswhererip-raporconcretematswouldbeplaced(primarilyutilitycrossingsand naturalimpediments),thisalterationisnotexpectedtocauseanysignificantlossofsoft bottombenthichabitatorassociatedbenthicspecies.Therip-raporconcretematslikelywouldprovidestructureforadditionalnewhardbenthichabitatforepibenthicorganisms tocolonize.44.Inareaswherethecablescannotbeburiedandprotectivecoveringisthereforenecessary,theexistingbenthoswouldbeburied.However,inareasofhardbottomtheexposed surfaceofthematswouldcreatesimilarhabitat.Epibenthiccommunitiesmaydevelop 23February24,20125479283.32onthematsovertime,whichwouldprovidestructurethatcanbeusedbysomedemersal species.45.OperationoftheHVDCTransmissionSystemsunderwatercablesisanticipatedtohaveinsignificantimpactstobenthos,fishandshellfishresources.TheApplicantswillcompleteaBenthicandSedimentMonitoringStudyandBathymetry,Sediment TemperatureandMagneticFieldStudybasedonpre-approvedscopesofstudythatwill characterizethesecommunitiesandquantifytemperatureandmagneticfieldchanges.

ThescopesforthesestudiesareinAttachments2and3ofAppendixCtothisJoint Proposal.Theunderwatercableswillbeburiedtoadepthsuchthatthemagneticfield wouldbeweakenoughthat,oncethecablesareenergized,thebenthiccommunityisnot expectedtodiffersignificantlyfromthatfoundintheadjacentbenthicarea.Heat producedbythecableswouldbeprimarilydissipatedinthesedimentsandwould thereforehaveanegligiblethermaleffectonbenthicpopulations.Theunderwatercables useasoliddielectricdesignthatdoesnotcontaincoolingfluids,thuseliminatingthepotentialforsuchfluidstobereleasedintotheenvironment.e.Finfish46.Giventhenarrowconstructionroute,bottom-feedingfinfisharelikelytotemporarilyrelocatetoadjacentareasunaffectedbyconstruction.Anypelagicpiscivorous(fish feeding)speciesmightleavetheimmediateconstructionareabecauseofthenoiseand suspendedsedimentplumeitproduces,buttheywouldresumefeedingalongthecable routeandforageonfishthathadre-occupiedtheconstructionareaassoonasthecable installationvesselleaves.47.Inareaswhereconventionaldredgingwouldbeemployed,typicallyfordeeperburialareassuchasatcrossingsofanavigationchannel,constructionwillinvolvesediment 24February24,20125479283.32removal,cablelaying,andthenbackfilling.Sedimentsurfacecharacteristicswouldbealteredsinceitisunlikelythatexactlythesamegrainsizecompositionwillbecreatedas existedpriortocableinstallation.However,theseareasarelikelytobecomecolonized overtimewithbenthicorganisms.Giventhesmallamountofanticipatedconventional dredging,anyalteredpreyabundanceormodifiedsubstratecharacteristicsarenotlikely tohaveanysignificantimpactsonfishspecies.48.Cableinstallationinsedimentwouldlikelyresultinatemporaryandlocalizedincreaseinsuspendedsediments,whichcouldpotentiallyleadtogillabrasion,hinderingofpredation efficiencyofsightfeedingfishinoradjacenttothecableroute,andnegativeeffectsonrespiration.However,thesedimentssuspendedduringconstructionactivitiesare expectedtoaffectlocalizedareasandsettlequicklyoutofthewatercolumnorbe dispersed,anyimpactsonfishspeciesinoradjacenttothecableroutearelikelytobe temporaryandnotsignificant.49.Underwatercableinstallationactivitieswouldbelimitedtocertaintimesoftheyeartoavoidlife-cycleormigratoryimpactstoAtlanticsturgeon,Americanshad,winter flounder,stripedbass,andotheranadromousfishpopulations,aswellasresidentspecies suchasshortnosesturgeonusingtheaffectedareas.Theseconstructionwindowshave beenestablishedintheProposedCertificateConditions(AppendixC)andtheWQC (AppendixD).50.OperationoftheHVDCTransmissionSystemsunderwatercablesisanticipatedtohavenoadverseimpactstofinfishresources.IntheHudson,Harlem,andEastRivers,the cableswouldbeburiedinasingletrenchtoatargetdepthofsix(6)feetbelowthe sedimentwaterinterface,orthemaximumdepthachievableandwouldthereforenot likelycreateaphysicalbarrierthatcouldinterferewithfishmigrationoruseofexisting 25February24,20125479283.32habitatsornurseryareas.Potentialimpactstofishspecies,ifany,fromelectromagneticfieldsandthermaldissipationduringthenormaloperationoftheFacilityareexpectedtobeinsignificantasaresultoftheproposedinstallationmethodoftwocablesbeingburied side-by-sideinasingletrenchtoanexpectedburialdepthofatleastsix(6)feetbelowthe sediment-waterinterface.f.LacustrineandAquaticProtectedSpecies51.TheApplicantswilltakeallnecessarymeasuresconsistentwiththisJointProposal,theProposedCertificateConditions,theBMPsandtheEM&CPGuidelines,toavoidand/or minimizeimpactstothreatenedorendangeredwildlifespecieslistedat6N.Y.C.R.R.Part 182(TEspecies)andtheiroccupiedhabitatsthatarefoundtobelocatedinthe ConstructionZone.52.AquaticTEspeciesinLakeChamplainarethelakesturgeon,mooneye,andeasternsanddarter.AquaticTEspeciesintheHudson,HarlemandEastRiversaretheshortnose sturgeon,finwhale,humpbackwhale,seiwhale,andfourspeciesofseaturtle.53.WithintheHudsonRiver,boththeshortnosesturgeonandtheAtlanticsturgeonarelistedasFederally-endangeredspecies.Inaddition,atotalofthirteen(13)finfish,two(2) shark,andthree(3)skatespeciesintheHudsonRiverarecurrentlydesignatedas EssentialFishHabitat(EFH)speciesundertheMagnuson-StevensFishery ConservationandManagementAct(PublicLaw94-265)amendedbytheSustainable FisheriesActof1996(PublicLaw104-267).Thesespeciesinclude:Atlanticseaherring, bluefish,Atlanticbutterfish,scup,blackseabass,redhake,cobia,Atlanticmackerel, Spanishmackerel,kingmackerel,summerflounder,winterflounder,windowpane,sand tigershark,sandbarshark,clearnoseskate,littleskate,andwinterskate.

26February24,20125479283.3254.NYSDOS,DivisionofCoastalResources,togetherwiththeNYSDEC,hasdesignatedseventeen(17)SignificantCoastalFishandWildlifeHabitats(SCFWHs)withinorinthevicinityoftheHVDCTransmissionSystemarea.TheroutingasoutlinedinthisJointProposalwouldavoiddirectlytransitingtwelve(12)oftheseareas.Withintheremaining five(5)SCFWHs(KingstonDeepwaterHabitat,EsopusEstuary,Poughkeepsie DeepwaterHabitat,HudsonRiverMile44-56,andLowerHudsonReach),thesettlement partieshaveidentifiedcertainExclusionZones(AppendixB)thatwillbeavoidedtothemaximumextentpossible.

3Theoverallinstallationplanandconstructionwindowswillbedesignedtoaccommodatelocation-specificandseason-specificrestrictions intendedtoavoidand/orminimizepotentialimpactsonTEspecies.55.ThefourspeciesofFederalandState-listedseaturtlesaretheleatherbackseaturtle,KempsRidleyseaturtle,loggerheadseaturtle,andgreenseaturtle.Noneofthesesea turtlesnestintheNewYorkHarborestuary,nordotheyresidethereyear-round.Inthe eventthattransientseaturtlesarepresentduringinstallationoftheunderwatercables,it isexpectedthatimpacts,ifany,tothespecieswillnotbesignificantinlightofthe speciesmobilityandthelimitedareasofconstruction.56.SeveralspeciesofFederally-endangeredwhalesareknowntooccurseasonallynearNewYorkscoasts,butthesemarinemammalsareseldomobservedintheNewYorkHarbor region.Thevesselsusedfortheinstallationofthecablewouldbeoperatedatlowspeeds inthisportionoftheHVDCTransmissionSystemarea.Accordingly,theriskof potentialcollisionwithtransientwhaleswouldnotbesignificant.57.Theinstallationoftheunderwatercablesisnotexpectedtohaveanysignificantimpactsonshortnosesturgeon.Thecableshavebeenroutedtoavoidorminimizeimpactsto 3AsnotedintheCertificateConditions,theuseofthetermExclusionZonesdoesnotmeanthatallProjectfacilitiesarenecessarilyexcludedfromsucharea.

27February24,20125479283.32sensitivehabitats.Inaddition,constructionwindowsareestablishedasaCertificateConditiontoensurethatworkwillnotimpactthesespeciesduringtheirmostvulnerable lifestages.Intheunlikelyeventthattransientshortnosesturgeonarepresentduring installation,itisexpectedthatanyimpactsfromconstruction,installationand maintenanceoftheunderwatercablewillnotbesignificant.58.OperationoftheHVDCTransmissionSystemisnotexpectedtohaveanysignificantimpactsonprotectedaquaticspecies.IntheHudson,Harlem,andEastRivers,the underwatercablewouldbeburiedinasingletrenchtoatargetdepthofsix(6)feetbelow thesedimentwaterinterfaceoratthemaximumdepthachievable.Monitoringofthe HVDCTransmissionSystemsoperationwouldbeconductedinaccordancewith applicableCertificateConditions(AppendixC).g.FreshwaterandTidalWetlandsandWaterResources59.ConstructionandoperationoftheHVDCTransmissionSystemisexpectedtoresultintemporaryimpactstowetlandsandwaterbodiesalongoverlandsegmentsofthecable route,includingwithintheCPandCSXrailroadROW.Thismayincludebothdirect impacts,wheretheedgeoftheclearedconstructioncorridortraversesawetlandor riparianarea,andindirectimpactsfromvegetationclearingandgrounddisturbancein adjacentareas.Duringconstruction,short-termeffectsonwaterqualitymaybecaused bylocalizedincreasesinturbidityanddownstreamsedimentationresultingfromtrenchinganddisturbancewithinthewaterbody.Waterqualityimpactswouldbe minimizedbylimitingthedurationofconstructionactivitieswithinthewaterbodytothe extentpossible,andbyimmediatelyrestoringandstabilizingthestreambedandbanksonceconstructioniscompleted.Atcrossingswithsignificantstreamflows,theuseof dry-ditchcrossingmethodsinsteadofopencutmethodswouldreducepotentialimpacts 28February24,20125479283.32fromturbidityandsedimentation,becausedisturbedsedimentswithintheconstructionareawouldnotbecomeresuspended.60.TheHVDCTransmissionSystemwouldbelocatedinthefollowingwaterbodiesandtributariesthereto:LakeChamplainandtheHudson,HarlemandEastRivers.Thewater qualityclassificationsforthewaterbodiesencounteredrangefromAAtoI.61.DisruptionstostreamsandwaterbodiescrossedwouldbeminimizedduringHVDCTransmissionSystemconstruction,operationandmaintenancethroughmeasuresdetailed intheProposedCertificateConditionssetforthinAppendixCbelow,aswellasinthe EM&CP(AppendixE).62.Approximately49.5acresofwetlandhavebeendelineatedinthefieldalongtheHVDCTransmissionSystemroute,andreviewofNationalWetlandsInventory(NWI)and NYSDECfreshwaterwetlandsmappinghasshownanadditional6.5acresforatotalof fifty-six(56)acresofwetlandarea.NofillorpermanentalterationtowetlandsisexpectedtoresultfromtheHVDCTransmissionSystemingeneralanditisanticipated thatwetlandhydrology,vegetation,andwaterqualitywillreturntopre-construction conditionsinmostareasfollowingrestorationoftheconstructionarea.However,in limitedareas,forestedwetlandcovermaybeconvertedtoanemergentmarshorscrub-shrubcommunityaspartoftheCertificateHoldersVegetationManagementPlan.Of thetotalof56.0wetlandacres,approximately10.7acreshavebeenidentifiedasforested

wetland.h.TerrestrialWildlifeandPlantsandProtectedSpecies63.Impactstovegetation,includingrare,threatenedorendangeredplantspeciesunder6N.Y.C.R.R.Part193(RTEplants)andterrestrialwildlifehabitatshavebeenavoidedor minimizedbylocatingtheHVDCTransmissionSystemrouteunderwatertotheextent 29February24,20125479283.32possible.Whereoverlandrouteshavebeenproposed,theHVDCTransmissionSystemcorridorhasbeenlocatedprimarilyalongexistingrailroadorroadwayROWorother previouslydisturbedareas.UseofpreviouslydisturbedrailroadROWfortheinstallation oftheoverlandcableswouldgenerallyavoidorminimizethepotentialimpactsto wildlifeandplants.Intotal,approximatelytwohundredthirtysix(236)acresofexisting forestcovermaybeclearedtoaccommodateproposedconstructionareasandeasements.

Uponcompletionofconstructionactivities,initialrestorationactivities,includingsoil stabilizationandtemporaryseedingofdisturbedareaswouldbeconducted.Naturalrevegetationwithinthedisturbedareas,alongwiththecontinuationofanyexistingmanagementpractices,wouldresultinvegetationcoversimilartothepreconstruction habitat,althoughvegetationwillbemanagedwithinandadjacenttotheROWtopreclude re-forestation.DuringoperationoftheFacility,allvegetationwouldbemanagedinaconditionthatensuressafeaccesstoexistingandproposedfacilitiesandtopreventfuture electricalserviceinterruptionscausedbydeep-rootedvegetationgrowingoverthecables oftheFacility.PermanentforestclearingontheFacilityROWwillresultinlossofapproximately60(sixty)acresofforestland.64.BecausetheFacilitywouldpredominatelyutilizeexistingtransportationcorridorsandwillbeconstructed,operatedandmaintainedinaccordancewiththeProposedCertificate ConditionssetforthinAppendixCbelow,wildlifehabitatlossorconversionorimpacts tovegetationwouldbeminimized.WildlifeusewithinandadjacenttotheFacilityROW isnotanticipatedtochangemeasurablyasaresultofconstructionoroperationofthe Facility.65.TheApplicantswilltakeallnecessarymeasuresconsistentwiththisJointProposal,theProposedCertificateConditions,theBMPdocumentandtheEM&CP,aswellasspecific 30February24,20125479283.32measuresdescribedbelow,toavoidorminimizeimpactstoTEspeciesandtheiroccupiedhabitatsandRTEplants.66.TheIndianabat(Myotissodalis)isaFederally-andNewYorkState-endangeredspeciesthatmayberesidentwithintheHudsonRiverValleythroughouttheyear.Indianabatsroostintreesandmaternitycoloniesmaybeassociatedwithavarietyofforested communitytypesidentifiedalongtheoverlandcableroute,includingAppalachianoak-hickory,beech-maplemesic,floodplainandhemlock-northernhardwoodforests.Tothe extentroostingtreesareidentifiedwithintheconstructioncorridor,anyimpactstothese treeswillbeavoidedorminimized.67.TheKarnerbluebutterfly(Lycaeidesmelissasamuelis)isaFederallyandNewYorkState-endangeredspeciesoccurringinscatteredpopulationsinthevicinityoftheHVDC TransmissionSystemareainSaratogaandAlbanyCounties.Thespeciesishighly specializedonthelarvalhostplant,wildbluelupine(Lupinusperrenis).Frostedelfin (Callophrysirus)isaState-listedthreatenedspeciesofbutterflythatoccursintheHVDCTransmissionSystemareainSaratogaandAlbanyCounties.IntheupperHudsonRiver area,itfeedsonwildbluelupineassociatedwithpinebarrens,oaksavannahs,dryoak forests,anddisturbedgrasslands,suchasthosethatwouldbewithinFacilityROWandat airports.AsthehabitatrequirementsaresimilartotheKarnerbluebutterfly,thetwospeciesmayco-occur.AreasofpotentialhabitatfortheKarnerbluebutterflyandfrosted elfinwereidentifiedintheprojectareabyfieldinvestigators.AKarnerBlueButterflyImpactAvoidanceandMinimizationReport,whichisprovidedintheEvidentiaryRecordExhibit109,summarizestheroutingandconstructionactivitiesthatwouldbeemployed toavoidand/orminimizeimpactstooccupiedandpotentialhabitatcontainingwildblue lupineandnectarpatches.

31February24,20125479283.3268.Basedontherecommendedprojectlocationandinstallationandmanagementtechniques,asspelledoutinsettlementdocuments,installationandoperationofthetransmissioncablesisnotexpectedtohaveanysignificantimpactsonprotectedterrestrialspecies.i.LandUse69.TheoverlandandunderwaterdesignoftheFacilityisconsistentwithstatepolicies,Article42oftheExecutiveLawentitled:WaterfrontRevitalizationofCoastalAreasandInlandWaterways,andLocalWaterfrontRevitalizationPlans.70.TheFacilitywillbedesigned,operatedandmaintainedtolimitimpactstothecurrentandplannedlanduseswithinthevicinity;Section2oftheEnvironmentalAssessment(attachedhereasExhibit121)andtheRevisedandUpdatedExhibit7oftheApplication(attachedhereasExhibit115)discusstheplannedlandusesinfurtherdetail.Impacts associatedwithconstructionactivitiesareanticipatedtobelocalizedandtemporaryin natureandarenotexpectedtoconflictwithexistingorplannedlandusesinthevicinity oftheFacility.71.TheFacilityhasbeensitedanddesignedtoavoidlong-termorpermanentimpactstoalllanduseswithinandadjacenttotheconstructioncorridor.TheentiretyoftheFacilityis locatedunderwaterorunderground,exceptforthespecificfacilitycomponentsincluding variouscoolingequipmentatlocationsalongtheFacilityROWandtheConverterStation atAstoria,withminimalpotentialimpacttothegeneralpublicorprivateproperty,openspace,oranyexistingorplannedlanduses.

4UnderwatersegmentsoftheFacilityarenotexpectedtoresultinanysignificantpermanentimpactstolandorwateruses,water-dependentuses,navigation,municipalwaterintakes,andothercoastalusesarenot 4IfConEdisonproceedswithrecentlyannouncedplanstoconnectaPARtoNYPAsAstoria345kVsubstation,theConverterStationwillalsoincludeanabovegroundstructurehousinganewfour-bayGISringbusasdescribedingreaterdetailintheReportattachedheretoasExhibit125.

32February24,20125479283.32expectedtobeaffected.AlongtheoverlandsegmentsoftheRoute,impactstolandusewouldbeminimizedbyburyingthelinewithinandalongexistingdisturbedrailroadandroadwayROWtotheextentpossible.72.ThemajorityoftheoverlandsegmentsoftheproposedrouteoftheHVDCTransmissionSystemwouldfollowexistingCPandCSXrailroadROW,andtoalesserextentNYS Route22andotherroadROW.Closecoordinationwiththerailroadcompanies,the NYSDOT,andlocalmunicipalhighwaydepartmentsduringtheequipmentdeliveryand constructionstagesoftheFacilitywouldassistinavoidingorminimizingconflictwith ongoingoperationsanduses.73.InordertobypasstheHaverstrawBaySignificantCoastalFishandWildlifeHabitat,theHVDCTransmissionSystemwouldcrossintoRocklandLakeStateParkandStonyPoint StateHistoricSite.ThecableswouldtraversetheseparklandsviaHDD,sotherewould benopermanentimpactstothecurrentusesorvisualcharacteroftheseareas.Landuse plansandpolicies,includingtheNewYorkStateOpenSpaceConservationPlanand localparkandrecreationalareapolicies,wereinvestigatedforthecounties,cities,towns,andvillagescrossedbytheoverlandportionoftheHVDCTransmissionSystem.

Constructionandoperationoftheoverlandportionofthelineisnotexpectedtohaveany significanteffectsonlocalorregionallandusepatternsorlanduseplanningbecausethe linewillbeinstalledundergroundandisroutedwithinandalongexistingdisturbed railroadandroadwayROWstotheextentpossible.74.TheAstoria-RaineyCablewillbeinstalledforapproximatelythree(3)mileswithincitystreetsoftheboroughofQueensinCNY.LanduseadjacenttotheAstoria-RaineyCable isprimarilyresidential,industrial,commercial,andopenspace.Twoparks,one playgroundandthreeschoolshavebeenidentifiedasbeinglocatedadjacenttothe 33February24,20125479283.32proposedrouteandtherouteisinthevicinityofothersocialfeaturessuchasalibraryandaseniorcenter.TheApplicantsproposedEM&CPwouldproposemeasurestobe takentoavoidandminimizeanyadverselanduseandtrafficimpacts.j.Agricultural75.TheConstructionZonewouldincludeapproximately138,040linearfeetofROWwithindesignatedAgriculturalDistricts.MappingobtainedfromtheCornellInstituteforResourceInformationSciencesindicatesthattheConstructionZonewouldcross AgriculturalDistrictsforanestimated46,690linearfeetinWashingtonCounty,47,640 linearfeetinSaratogaCounty,660linearfeetinSchenectadyCounty,20,560linearfeet inAlbanyCountyand22,490linearfeetinGreeneCounty.TheFacilitywouldnotcross AgriculturalDistrictsinRockland,Westchester,QueensorNewYorkcounties.76.FortheoverlandportionoftheHVDCTransmissionSystem,cableswouldbeinstalledprimarilywithinexistingrailroadorroadwayROW.Ifconstructionactivitiesrequirethat workoccuronagriculturallandsoutsideoftherailroadROW,ProposedCertificate Conditions78and79wouldrequirethatappropriatemitigationmeasuresbeappliedtomaintainagriculturalviabilityofagriculturalsoils,andthatanAgriculturalInspector beavailabletoprovidesite-specificagriculturalinformationasnecessaryfordevelopmentoftheproposedEM&CP,andtoserveasacontactwithaffectedfarmers andCountySoilandWaterConservationDistrictsconcerningfarmresourcesand managementmatterspertinenttotheagriculturaloperations.Duringconstruction, potentialeffectsonadjacentagriculturallandwouldbeminimizedbylimitingimpacts suchasvegetationclearingandgrounddisturbancetotheConstructionZone.

34February24,20125479283.32k.VisibilityfromAreasofPublicView77.TheFacilityhasbeensitedanddesignedtominimizeimpactsonvisualandaestheticresources.Thetransmissioncableswouldbeinstalledunderwaterinexistingwaterwaysorburiedalongexistingrailroad,utilityorroadwayROW,orinstalledviatrenchlesstechnology.Thisapproachwouldminimizethevisualandlandscapeimpactsassociated withtraditionaloverheadtransmissionlinesorconventionalundergroundfacilitiessited onnewROW.Treeclearingforfacilityconstructionmayresultinchangestolocal views.Adverseimpactsatlocationsduetoclearingatareaswithidentifiedpublicinterest(includingparks,heritageresourcesites,andresidentialareas)willbeminimized byimplementingtreeprotectionmeasuresandappropriatearboriculturalstandards,and useoflandscapeplantinginselectlocations.78.Theonlypermanentabove-groundcomponentsassociatedwiththeFacilitywouldbelinemarkers,warningsignsatnavigablewaterways,coolingunitsandtheConverterStation.

Linemarkerswillnotbeobtrusiveassitedalongexistingcorridors,andwarningsignsat thebanksofnavigablewaterwaycrossingswouldbelocatedinareaswherevisual contrastsareminimizedduetoexistingshorelinedevelopmentandvisualsensitivityis low.SincethesettingoftheproposedConverterStationisdominatedbyexistingutility infrastructure,andtheimmediateenvironmentsurroundingtheproposedlocationofthe ConverterStationispredominantlyindustrialandcommercialinnature,theConverter Stationwouldnotbeoutofcharacterwithexistinglanduseandwouldnotredefinethe natureoftheview.ViewstowardtheConverterStationsitefromnearbyresidentialareas aredominatedbytheexpanseofexistingutilityinfrastructure.MostoftheConverter StationselementswouldbeenclosedwithinbuildingswhicharewithinascalesimilartoexistingfacilitiesadjoiningthesiteatAstoria.

35February24,20125479283.3279.AlthoughtherewouldbenosignificantpermanentvisualimpactsoutsideoftheproposedConverterStation,therewouldbetemporaryvisualimpactsduringconstruction.Themajorityofvisualimpactswouldbecausedbythelargeequipmentnecessaryforconstructionbothon-landandin-water,whichwouldbeseenalongtheRoutefora limitedamountoftime,aswellasanystormwateranderosioncontrols,suchassilt fences,haybales,andtemporarymulching,etc.Onceconstructioniscompleted,all equipmentwouldberemovedandtheimpactedareaswillbere-seeded.Temporary erosioncontrolswouldberemovedoncerevegetationisestablished.80.ThevegetativecharacteristicswithintheConstructionZonewouldchangetemporarilyduringtheconstructionphaseoftheFacility.Existingvegetationthatservesasabuffer invisuallysensitiveareas,suchastheNYSRoute22LakestoLocksScenicByway,the MohawkRiver-ErieBargeCanal,scenicareas,andviewpointswouldbemaintained wherethevegetationdoesnotinterferewiththeintegrityofthecablesorsafeinstallationoftheFacility.TheApplicantsproposedEM&CPwouldincludeananalysisand rationaleforconstructionaffectingforestcoverareasratherthanutilizingexistingcleared roadsideareaswithintheseareas.Insituationswherevegetationclearingisnecessaryfor safeandproperinstallationoftheFacilitywithinvisuallysensitiveareas,thevegetation clearingmethodstominimizeimpactswouldbedetailedintheEM&CPandperformed inaccordancewiththeBMPssetforthinAppendixFbelow.Vegetativebuffersin visuallysensitiveareaswouldbeidentifiedduringrestorationforlandscapeplantingsas appropriate,exceptwherereplacementwouldinhibitorimpairthesafeoperationofthe

cables.

36February24,20125479283.32l.CulturalandHistoricResources81.APre-Phase1AculturalresourcesscreenreportandaPhase1AculturalresourceinvestigationfortheHVDCTransmissionSystemroutewassubmittedinAprilandSeptemberof2010,respectively.Thereportspresentedanassessmentofthe archeologicalsensitivityandpotentialfortheprospectiveareaofpotentialeffects (APE)forboththeHVDCTransmissionSystemandtheAstoriaRaineyCable.Phase 1Bfieldworkwasalsocompletedforaportionoftheoverlandroute.APhase1B investigationfortheremainderoftheRoutewouldbecompletedpriortoconstruction.

Routemodificationsorothermitigationwouldbemade,asnecessary,toavoid,minimize ormitigateimpactstoanysensitiveareasidentified,asappropriate.Noconstruction wouldoccurinareasthathavenotbeensurveyedorwheresurveyshavenotbeen providedtotheOPRHPandDPSStaff.82.AnaquaticroutesurveywasconductedintheSpringof2010,whichincludedageophysicalsurveyemployingaside-scansonarandmagnetometerdatacollection (Exhibit31).TheLakeChamplainMaritimeMuseumreviewedthisgeographicaldatafortheHudsonRivercollectedbytheNYSDECanditscontractors,andthePhase1A Culturalstudy,tocreatealistofpotentialsubmergedculturalresourcesinthe transmissioncorridor.TheReportdiscussingthesensitivesubmergedarcheological resourcesisannexedtothisJointProposalasExhibit19.TheApplicantsandDPSStaff havemaintainedcontactandconsultationwiththeOPRHPHistoricResourcesBureauin accordancewithParks,RecreationalandHistoricPreservationLaw§14.09duringthe reviewoftheRoute.Generalprovisionsforresourceevaluation,avoidanceandimpact minimizationhavebeendeveloped,andadditionaldetailedanalysis,planningand mitigationdesignwillbedetailedinaCulturalResourceManagementPlantobe 37February24,20125479283.32developedinfurtherconsultationwiththeNewYorkStateHistoricPreservationOffice(NYSHPO)andDPSStaff(andotherconsultingpartiesinthependingNationalHistoricPreservationActSection106projectreviewfornecessaryfederallicenses).

Detailsofculturalandheritageresourcesiteavoidanceandprotectionmeasureswillbe addressedasappropriateintheEM&CP.ProposedCertificateConditionsaddress appropriaterequirementstoprecludeconstructioninareaswhereculturalresource evaluationshavenotbeenconcluded,torequireimplementationofappropriateresource protectionmeasures,andtoaddressunanticipatedresourcediscoveriesduringFacilityconstruction,includingculturalartifactsandthehandlingofhumanremains.m.Transportation83.BecausetheelectriccablescomprisingtheFacilitywouldbelocatedentirelyoverlandorunderwater,orattachedtoexistingrailroadbridges,nopermanentimpactson transportationareexpected.Wheretheproposedcablerouteintersectswithplannedor ongoingtransportationinfrastructureimprovements,cabledesign,installationmethods andinstallationschedulehavebeenplannedtoaccommodatethosetransportation facilities.TheConverterStationwouldbedesignedtomeetthesubstantiverequirements ofthelocalheightordinancestoavoidimpactstoairtraffic.84.ImpactstorailroadsassociatedwiththeinstallationoftheHVDCTransmissionSystemareanticipatedtobeminor,temporary,andlocalized.Equipmentdeliveryand installationstageswillbecloselycoordinatedwiththerailroadcompaniestoavoidor minimizeconflictswithon-goingrailroadoperations.Activeraillineswillbecrossed usingtrenchlessmethods,notbyopencuttrenching.Onceinstalled,theHVDC TransmissionSystemwillbeburiedwithintherailroadROWandhavenoeffecton railroadoperations.AtlocationsoflongHDDbores,itmaybenecessarytoinstallsmall, 38February24,20125479283.32above-gradecoolingunitsattheedgeoftherailroadROWorwithintherailroadROWbutthesewillbesufficientlyfarfromtherailroadtrackssothattheywillnotimpact railroadoperations.85.ImpactstoroadwaysassociatedwiththeinstallationoftheFacilityareanticipatedtobeminor,temporary,andlocalized.Useofroadwaysforthedeliveryofoversizedloads wouldbeminimizedbytheuseofrailandwatertransportationwherefeasible.Inthe eventthattransportationofoversizeloadsbyroadisrequired,Applicantshaveagreedto complywithallNYSDOTrequirementsand,forconstructionwithintheCNY,all applicableCNYrequirementsaswell.Therouting,constructionscheduleandtraffic controlplansoftheFacilitywillmitigatedirecttrafficimpactsandindirecteffectsof constructionontransportationfacilitiesandadjacentlanduses.86.WhereNewYorkStatehighwayROWistobeoccupied,allworkwillbeperformedinaccordancewithapplicableregulationsandstandards,including17N.Y.C.R.R.Part131 coveringAccommodationofUtilitieswithinStatehighwayROW,theapplicabledesign standardsoftheAmericanAssociationofStateHighwayandTransportationOfficials

,andNYSDOTsRequirementsfortheDesignandConstructionofUndergroundUtilityInstallationswithintheStateHighwayRight-of-Way,ManualofUniformTrafficControl Devices,theHighwayDesignManual,andtheRequirementsfortheDesignandConstructionofUndergroundUtilityInstallationswiththeStatehighwayROW.HighwayWorkPermitswillbeobtainedforanyworkin,on,under,oroverState highwayROW,whichincludesareasandfacilitiessuchasshoulders,guiderails,clear zones,vegetatedareas,slopes,anddrainagefacilitiesinadditiontothepavedroadway.87.DuringconstructionoftheFacility,minorandtemporaryimpactstoexistinginfrastructurearepossiblewherethesefeatureswillbecrossedbythecableroute.Where 39February24,20125479283.32installationoftheproposedFacilitywilloccurwithinaroadorhighwayROW,thejurisdictionalmunicipalityorregulatoryagencywillbecontactedtoensureappropriate protectionandsafetymeasuresareemployed.Wherein-roadworkwillbeextensive enoughtorequiredetoursorroadclosings,aMaintenanceandProtectionofTrafficPlanwillbecompletedinconsultationwithallaffectedagenciespriortothestartof

construction.88.Impactstocommercialandrecreationaluseofnavigablewaterwaysduringtheconstructionphaseareexpectedtobeminorandtemporary.Duringconstruction,the presenceandoperationofthecableinstallationvesselswillcreateelevatednoiselevels andadditionaltrafficonthesewaterways.AllworkactivitieswillbecloselycoordinatedwiththeUSACE,theUnitedStatesCoastGuard(USCG),federal,state,andlocalagenciesandotherlocalpilotassociations,asdeterminedtobenecessarytominimizeor avoidimpacts.ANoticetoMarinersorsimilarnotificationwillbeissuedpriortoanyin-waterwork,aswillnoticetoeachaffectedmunicipality.Workactivitiesinthevicinity oftheHarlemRiverrailbridgewillalsobecoordinatedwiththerailroadtominimizedisruptionofrailtraffic.n.Noise89.Constructionnoiseassociatedwiththeinstallationoftheoverlandtransmissionlines,ConverterStationandtransformersubstationwillbetemporaryinnatureandimpactwill varyaccordingtotheconstructionequipmentinuseandexistingbackgroundorambient noiseatgiventimesandlocations.Residentsandbusinessescouldbetemporarily affectedbynoisefromconstructionactivitiesassociatedwiththeinstallationofthe overlandsegmentsofthecablesandtheConverterStation.Noresidencewillbeexposed tosignificantnoiselevelsforanextendedperiod.Underwaternoisefromtheoperation 40February24,20125479283.32ofvesselsandinstallationofcablescouldimpactcertainaquaticorganisms,althoughtheseimpactsshouldbetemporaryandlocalized.TheApplicantshaverequestedthatthe Commissionrefusetoapplylocalnoiseordinancesduringtheconstructionphaseofthe FacilityoutsideofCNYasprovidedintheProposedCertificateCondition32(Appendix C).Appropriatenoisecontrolmeasuresareincludedintheconstructionandmitigation controlmeasuresagreedtobeappliedduringfacilityconstruction.Measurestoapplyat residentialareasandothernoisesensitivelocationsinclude:publicoutreach,appropriate workhour/workoperationrestrictions,temporarysoundbarriers,employmentof equipmentfittedwithsounddeadeningmaterials,selectionoflownoiseequipmentandprocedures,andothernoisereductionworkmethodsordevicesasdeterminedappropriate forthelocaleandtasks.o.Communications90.BothHVACandHVDCpowercablesaredesignedwithoutermetallayersatgroundpotentialandcreatenoexternalelectricfield.Thedirectcurrentmagneticfieldofthe cableswouldnotinducevoltagesorcurrentsintocommunicationsequipment,including butnotlimitedtomarineradios,remotetelephones,andcellphones.Thecables, therefore,wouldnotcreateanycoronadischargeandarenotindependentsourcesof radio,telephone,ortelevisioninterference.91.AllelectronicequipmentassociatedwiththeconstructionandoperationoftheConverterStationlocatedoutsidethevalvehalls,includingcommunicationcablesandwires,would beincompliancewithCISPR11(ComiteInternationalSpecialdesPerturbationsRadioelectriques,InternationalSpecialCommitteeonRadioInterference,underIEC InternationalElectro-technicalCommission).Thisstandardisconsideredtobeequivalent 41February24,20125479283.32totheFederalCommunicationsCommission(FCC)part15.ThesubstationwillalsocomplywithIEC61000-6-1.p.ElectricandMagneticFields92.TheSignatoryPartiesbelievethatensuringthattheoperationoftheFacilitycomplieswiththeinterimelectrostaticfieldstandard(1.6kV/mattheedgeoftheFacilityROW, measuredatonemeteraboveground)establishedbytheCommissioninOpinionNo.78-13(issuedonJune19,1978inCases26529and26559)andthelimitformagneticfields (200milliGauss(mG)attheedgeoftheFacilityROW,measuredonemeterabove ground)setintheStatementofInterimPolicyonMagneticFieldsofMajorElectric TransmissionFacilities(issuedonSeptember11,1990inCases26529and26559)calls foranappropriateCertificateCondition,whichiscontainedinAppendixChereof.The SignatoryPartiesbelieve,however,thattheCommissionstandardsandlimitwillbemet:

(1)inthecaseoftheportionsoftheFacilitythatconsistofHVACfacilities,becausethe valuesattheedgeoftheFacilityROWarebelowthe1.6kV/mstandardandthe200mGlimit,respectively;and,(2)inthecaseoftheportionoftheFacilitythatconsistsof HVDCfacilities,becausetheelectrostaticfieldassociatedwithburiedfacilitiesisalmost nonexistentandthedifferencebetweenthemagneticfieldattheedgeoftheFacility ROWandatadistanceofonehundred(100)feetfromsuchedge(inordertodifferentiate betweentheearthsmagneticfieldandthatoftheDCfacilities)islessthanthe200mG limit.93.Sincethesetransmissioncableswillbeshielded,buriedorcoveredwithprotectivemeasures,themagnitudesoftheelectricfieldlevelsareexpectedtobeinconsequential.

Inthewater,thesheathingandinsulationaroundthecablesandthesurroundingearthand 42February24,20125479283.32waterwillscreentheelectricfieldproducedbythecables.Onland,thesoilscoveringthefacilitywillscreentheelectricfieldtoinconsequentiallevels.94.ThemagneticfieldlevelswerecalculatedusingtheC3CORONA,Version3softwaredevelopedbytheBonnevillePowerAdministrationandtheU.S.DepartmentofEnergyatthree(3)locations:CPRailroad,overLakeChamplain,andovertheHudsonRiver.For theCPRailroadcalculation,theestimateassumedtwocableswouldbeburiedtoadepth ofthreeandaquarter(3.25)feet.Calculatedmagneticfieldlevelsatonemeterabovethe groundwerebelowtwohundred(200)mGfortheCPRailroadlocationatthecenterline whenthecablesweretouching(cableseparationof0.34feet),atfour(4)feetfromthe centerlinewhenthecablesareseparatedbyone(1)foot,andateleven(11)feetfromthe centerlinewhenthecableswereseparatedbythree(3)feet.95.TheC3CORONAmodelalsocalculatedthattheexpectedmagneticfieldlevelsoverLakeChamplainandtheHudsonRiverwere0.4mGand44.6mG,respectively,atthewaters surfaceoverthecenterlineundertheassumptionthatthecableswereseparatedbysix(6) feetandburiedtoadepthofthree(3)feet.Thisrangeiscomparabletotheexpectedmagneticfieldofahouseholdapplianceandconsiderablylessthantheearthsmagnetic field(~470to590mG).Therefore,therearenoexpectedlongtermelectromagneticfield(EMF)exposureissuesalongLakeChamplain,theHudsonRiver,theHarlemRiver andtheEastRiver.96.MagneticfieldlevelswerealsocalculatedattheriverbedoftheHudsonRiverundertheassumptionthatthecableswouldbeinstalledverticallywithinthesametrenchtoa planneddepthofsix(6)feet.Wherethecablesarelaidverticallyintoasingletrench,the maximummagneticfielddeviationfrombackgroundmagneticfieldifthecablesareinanorth/southorientationiscalculatedtobe26.2mGatten(10)feetfromthecenterlineat 43February24,20125479283.32one(1)footabovetheriverbedorlakebed.Themagneticfieldassociatedwiththecableslessensasthedistancehorizontallyandverticallyfromthecenterlineincreases.97.Modelingofcompassdeflectionatanunderwatercableburialdepthofsix(6)feetwasalsoperformed.Atone(1)footoverthecenterline,themaximumcompassdeflectionis 21.3degreesfortheverticalinstallation.Atten(10)feethorizontallyfromthecenterline, themaximumcompassdeflectionislessthanthree(3)degreesatone(1)footabovethe riverbedwherethecablesarelaidverticallyontopofoneanother.Similarresultswere reportedwherethecableswerelaidhorizontally(side-by-side)ataburialdepthofsix(6) feetsothat,evenifsedimentconditionsweresuchthatthetopcableslidoffofthe other,itwouldnotsignificantlyaltertheinformationconveyedtoaquaticorganismsby thegeomagneticfield.Intermsofnavigation,asthecablesareoutsideofthedesignatednavigationchannel(wherevesseltrafficwillbeheaviest),theimpactoftheexpected compassdeflectionisanticipatedtobeminimal.98.ImpactstofishspeciesfrommagneticfieldsassociatedwiththeHVDCTransmissionSystemscablesarenotexpectedtobesignificant.Migratoryspeciescoordinateand makeuseofmultiplecuestonavigateandthemagneticfieldofthecableswillaccentuate orattenuatethemagneticfieldoftheearthinaconstantfashionalonganarrowbandof riverbottom.Availableliteratureindicatesthattherewouldbenoadverseeffectsonegg orlarvaldevelopment,basedontheexpectedmagneticfieldsassociatedwiththeHVDC TransmissionSystemscables.Inaddition,asapercentageoftheoverallspawningarea,theareapotentiallyaffectedbytheweakmagneticfieldproducedbytheHVDC TransmissionSystemissmallandthereforewouldnothaveanysignificanteffectsonthe totalnumberofeggsandlarvaepresentduringspawning.

44February24,20125479283.32E.AvailabilityandImpactofAlternatives99.TheApplicationandexhibitstobesuppliedfortherecorddescribetheavailabilityandimpactofalternativestotheFacilityandaresummarizedbelow.Consideringallthefactors,theSignatoryPartiesagreethattheFacility,aslocatedandconfiguredinthis JointProposalispreferable,onbalance,toanyofthealternativesconsidered.a.AlternativeTechnologies100.TheApplicantsassessedseveralalternativecabletechnologiesanddeterminedthatcrossed-linkedpolyethylene(XLPE)HVDCcableswerethepreferredtechnologyfor thefollowingreasons.Theuseofsoliddielectriccablesmeansthatnoinsulatingor dielectriccoolingfluidsarerequiredandthereisnoriskofaleakcausingafluidspillorsheeninthewater.TheXLPEcablesthatwouldbeinstalledinthewateraremadeupof severallayersconsistingofaconductor,polyethyleneinsulation,acoppersheath,outer coveringandmetallicarmoring,whichservetoreducetheelectricfield.AsimilaranalysiswasconductedfortheAstoriaRaineyCableandtheXLPEHVACcableswere thepreferredtechnology.TheadvantagesoftheXLPEHVACcablesincludedoff-the-shelfavailabilityindiametersthatwouldallowforalong-termemergencyratingofapproximately1,000MVAandeliminationofanypotentialfordielectricfluidloss.For detailedinformationonXLPEcablesseeExhibit122attachedhereto.b.AlternativeRoutes101.TheSignatoryPartiesconsideredandrejectedvariousalternativeroutesfortheFacility.ThesitingoftheRoutewasdevelopedthroughevaluationsofvariousalternativelandfall locationsandoverlandroutes,aswellasthroughconsultationwiththeEnergy SubcommitteeoftheHarborSafety,Operations,andNavigationCommittee;theUSACE andtheUSCGforunderwaterroutes.Four(4)alternativeroutesfortheAstoriaRainey 45February24,20125479283.32Cablewereconsideredandrejectedinfavoroftherouteproposedforthatline.EachoftheserouteswasrejectedinitsentiretybytheSignatoryPartiesduetopresenceofCNY infrastructure,engineeringchallenges,additionalconstructioncosts,andadditional environmentalimpacts.102.ThreealternativelandfallsandoverlandroutesegmentsinproximitytolowerLakeChamplainwereconsideredandrejectedinfavoroftheRoute,including:(1)thePutnam StationRoute,whichwouldexitthewatersofLakeChamplaininPutnam,NewYork andutilizeresidentialroadsandNYSRoute22toreachWhitehall,NewYork;(2)the TiconderogaRoute,whichproposedthreepotentialexitpointsthatwouldallowforuse ofNYSRoute22toconnecttoWhitehall,NewYork;and(3)withintheSouthLaketo Whitehall(asproposedintheApplication).Thealternativesanalysis,providedas Exhibit86,concludedthattheenvironmentalimpactsassociatedwiththefirsttwo(2) alternatesdidnotappeartobesignificantlydifferentfromthoseidentifiedwiththe landfalllocationinDresden,NewYork,butthattheywouldrequirealongerupland constructionperiod,resultinginmoredisruptiontotheenvironmentandthecommunity.

Whitehallwasnotselectedasthefavoredlandfallpointduetoconcernsaboutwater qualityimpactsbetweenDresdenandWhitehall.103.Four(4)alternativeroutesinproximitytotheHudson,HarlemandEastRiverswereconsideredandrejectedinfavoroftheRoute:therouteproposedintheMarch2010 OriginalApplication;theHudsonRiverWesternRailLineandHarlemRiverRailroutes presentedbyDPSStaffonOctober27,2010;andanoverlandsegmentfrom Poughkeepsie,NewYorkonNYSRoute9southtoPeekskillBayandintotheHudson River.EachoftheserouteswasrejectedinitsentiretybytheSignatoryPartiesdueto engineeringchallenges,additionalconstructioncosts,andadditionalenvironmental 46February24,20125479283.32impacts.ThealternativesanalysisprovidedasExhibit86demonstratedthattherewerenofeasiblealternativestolocatingtheHVDCTransmissionSystemintheHudsonRiver betweenCementonandHaverstrawBay.104.TheOriginalApplicationalsoprovidedanevaluationofthepotentialtoutilizeexistingutilityROWfromMontreal,CanadatoNewYorkCity,NewYork.Thesealternatives weredeterminedtobeinfeasibleduetocost,routingcomplexity,privatepropertyaccess, andacquisitionandconstructionaccess.105.ThepreferredrouteaspresentedinthisJointProposalwasdeterminedtobethebestsuitedfortheFacility,sinceitprovidesanappropriatebalanceamongthevariousstateinterests,anditrepresentstheminimumadverseenvironmentalimpact,consideringthe stateofavailabletechnology,thenatureandeconomicsofthestudiedalternativesand otherpertinentconsiderations.c.AlternativeLocationsforConverterStation106.MultipleconverterstationlocationswereconsideredbytheSignatoryParties.Thesealternativesincluded:threelocationsinBrooklyninproximitytotheGowanus345kV substation;apropertyonWellsAvenueinYonkers,NewYork;theHarlemRiverRail YardintheBronxBoroughofCNY;andaparcelownedbyConsolidatedEdisononthe northernbankofLuysterCreekintheAstorianeighborhoodoftheBoroughofQueensin NewYorkCity.TheareanearConEdisonsRaineysubstationwasreviewedandno locationofsufficientsizetositetheconverterstationwasidentified.TheBrooklynsites wererejectedasbeingtoodistantfromthepreferredPointofInterconnectionatthe Astoria345kVsubstation.TheBronxsiteisownedbyNYSDOT,whichhasdeclinedto makethatsiteavailabletoApplicants.TheAstoriasiteissuperiortotheYonkerssite duetoenvironmentalandcostbenefits.TheYonkerssitewouldrequireinstallationof11 47February24,20125479283.32milesofdoublecircuitthree-phase345kVcircuitsthroughtheHudsonandHarlemRiversintwotrencheswithaseparationdistanceof33feettodelivertheFacilitysenergytoAstoria.TheAstoriasitewouldalsorequirelessdisruptiontoexistingland usesasitisonaparcelwhichhashistoricallybeenutilizedforutility-relatedpurposes.

ThesignatorypartiesagreethattheoverallenvironmentalimpactswouldbereducedbytheselectionoftheAstoriasiteandthattheoperationofaConverterStationwouldbe consistentwiththeexistingusesoftheAstoriasiteandwiththeplanneduseofthesiteto theextentsuchplansarepubliclyavailable.Adetailedreviewofthesealternativesis containedinExhibit108.d.AlternativeMethodstoFulfillEnergyRequirements107.TheFacilityisexpectedtodeliverelectricityproducedbywindandhydroelectricgenerationinCanada,displacingother,typicallygas-fired,generationinandaround CNY.Basedonthisexpectation,DPSStaffperformedananalysiscomparingthecostof 1000MWofCanadianhydroelectricpowerdeliveredtoCNYviatheFacilitytothecost ofbuildingandoperating1,000MWofcombinedcyclegas-firedturbine(CCGT) generationofsimilarcapacitylocatedinCNY.108.BecausetheProjectisexpectedtobefinancedonamerchantbasis,thedifferencebetweentheestimatedcostsofthesetwosupplyoptionsshouldnotbeinterpretedas ratepayerbenefits.TotheextentthatpricesforelectricityaredeterminedbythelongruncostofconstructingandoperatingnewCCGTcapacity,theseproductioncostsavings willbecapturedbytheApplicants,theirfinancialbackersand/ortheusersoftheFacility.109.Futuredevelopmentsmayprovidehigherorlower-costalternativesthanthoseassumedbyDPSStaff,causingthedifferenceincostbetweenthesetwosupplyalternativesto differfromDPSStaffsestimates.DPSStaffprovidesthislong-termproductioncost 48February24,20125479283.32comparisonsolelyasapreliminaryestimateofoneimportantcomponentofsocietalbenefits-totalproductioncosts-toassisttheCommissionindecidingwhetherthefacilitiesproposedinthiscasecanbeexpectedtoyieldnetsocietalbenefits.110.ForthecapitalcostoftheHVDCTransmissionSystem,DPSStaffassumed$2.0billion,asinExhibit111.DPSStaffassumedannualoperatingcostsfortheHVDC TransmissionSystemof$14.7millionperyear,producinga35yearNetPresentValue (NPV)of$0.2billion.FortheamountofenergytobedeliveredbytheFacility,DPS StaffrelieduponareportpreparedbyLondonEconomicsInternational(LEI)forthe Applicants,filedwiththeJuly22,2010ArticleVIIApplicationsupplement.LEI assumedthattheFacilitywoulddeliver7640GWhperyear,representingan approximately87%capacityfactor.TobeconsistentwiththeLEIanalysis,DPSStaff assumedthatsufficientnewhydroelectricresourceswouldbedevelopedtosupply7640 GWhperyearofenergytoCNY.111.ForthecostoftheFacilitysenergysupply,DPSStaffusedpublicinformationregardingthecostofnewhydroelectricsupplyinQuebec.Specifically,HydroQuebecs2009 AnnualReportindicatedthatoneproject(Eastmain/LaSarcelle)couldprovide8700 GWhofenergyannuallybeginningin2012atacostof$5billion(Canadian),and anotherproject(Romaine)coulddeliver8000GWhofenergyannuallybeginningin2014 atacostof$6.5billion(Canadian).Basedonthis,DPSStaffestimatedthatthecostof newdamstoprovide7640GWhofenergyperyeartoCNYwouldbeapproximately$6.7 billionin2015(adjustingforexchangerate,inflation,andlinelosses).112.Forthecostofthealternativeresource,DPSStaffreliedonanestimateofthecostofanew547MWCCGTplantinCNYpreparedbytheNYISOandfiledwiththeFERCon March29,2011inDocketER11-2224;seeAttachmentV(AffidavitofChristopher 49February24,20125479283.32Ungate),p.12.DPSStaffscaledthisupandadjustedforinflation,leadingtoanestimatedcostof$2.0billionfor1000MWofCCGTcapacityin2015.113.ForthecostofenergyfromtheCCGT,DPSStaffreliedonrecentforecastsofnaturalgaspricesatHenryHub,fromtheDepartmentofEnergysEnergyInformation Administration(EIA).Gaspriceswereadjustedforgastransportationcostsbasedon thehistoricaldifferencebetweenHenryHubandCNYgasprices.TheEIAs2010 AnnualEnergyOutlookforecastedaHenryHubgaspriceof$7.02perMMBtu(million metricBritishthermalunits)in2015.However,EIAs2011AnnualEnergyOutlook forecastedalowerHenryHubgaspriceof$5.17perMMBtuin2015,basedonagreater anticipatedsupplyofshalegasusinghydro-fracturing.DPSStaffusedthesetwoEIA forecastsashighandlowgaspricescenarios.DPSStaffestimatedenergycosts basedontheCNYpriceofnaturalgasmultipliedbytheheatrateof7079BtuperkWh,reflectingtheaverageofsummerandwinterheatratesestimatedbyNYISOforanew CCGTplant.Energycostsescalatewiththeforecastedgasprices.114.Forvariableoperatingandmaintenance(O&M)expenses,DPSStaffreliedonanestimateof$6/MWh(in2015)forCCGTs,fromp.79oftheLEIstudypreparedfor Applicants.ThisvalueiscomparabletothevariableO&Mexpensesforgas-firedturbinespreparedbyNationalEconomicResearchAssociates(NERA)fortheNYISO (seeIndependentStudytoEstablishParametersoftheICAPDemandCurvefortheNewYorkIndependentSystemOperator,September3,2010,p.99,providedhereasExhibit124).Basedonthisinformation,DPSStaffestimatedannualvariableO&Mcostsof approximately$46Mperyearfor7640GWhofenergyin2015.DPSStaffassumed thesecostswouldincreasepost-2015attheaveragerateofinflation,forecastat2.1%.

50February24,20125479283.32115.ForfixedO&Mexpenses,DPSStaffreliedontheNYISOMarch29,2011filingreferencedabove.TheNYISOestimatedthefixedoperatingcostsofaCCGTplanttobeapproximately$120perkW-yearin2011,includinglabor,materials,overhead,site leasing,propertytaxes(withoutabatement),andinsurance.AtApplicantsrequest, propertytaxeswereexcludedfromthisanalysisonthegroundthatsuchtaxeswouldbe transferpaymentsandwouldnotrepresenteconomiccosts.Afterremovingpropertytax expenses,DPSStaffestimatedannualfixedO&Mcostsofa1000MWCCGTtobe approximately$34millionperyearin2015.DPSStaffassumedtheseannualcosts wouldescalatewithinflation.116.DPSStaffcombinedthesefuelandnon-fueloperatingcosts,andthencomputedtheNPVin2015ofthestreamofoperatingcostsfor35yearsofoperation(consistentwiththe projectsfinancing).Theuseofseparatehighandlowgaspriceforecastsyieldedarange ofoperatingcosts.FortheNPVdiscountrate,DPSStaffemployedtheCommission-approveddiscountrateof5.5%(real);combinedwiththeforecastedinflationrateof 2.1%,thisimpliesanominaldiscountrateof7.72%(i.e.1.055x1.021-1=.0772).This resultedinarangeofNPVoperatingcostsovera35yearperiodofapproximately$8.3to

$10.3billionNPV.Thustheuncertaintyingaspriceforecastsleadstoanuncertaintyof almost$2billioninNPVoperatingcostsforthealternativeenergysource.117.Finally,DPSStaffaddressedthedeliverabilityissuessurroundingtheAstoriaPointofInterconnection.Astoriaisthesiteofnumerousgenerationplantsandhaslimited transmissioninterconnectionstoCNYsbulk(345kV)transmissionsystem.TheAstoria siteincludes345kVtransmissionlinesthatformerlydeliveredpowerfromthenow-retired890MWPolettiplant,providingapotentialoutletforApplicantsenergy.

However,theAstoriaEnergyII(AE2)projectcurrentlyusesapproximately550MW 51February24,20125479283.32ofthatcapacity.TheAstoria-RaineyCablewillprovidesufficientenergydeliverabilitytopermitbothAE2andtheHVDCTransmissionSystemtodeliverallorsubstantiallyalloftheirelectricoutputintoConEdisons345kVtransmissionsystemonasimultaneous basis,assumingtheimplementationofappropriateoperationalorothermeasures.Please seeSiemens-PTIInc.sStudyandSummaryofEnergyDeliverabilityReportprovidedhereasExhibit123.However,theseupgradesalonewillnotbesufficienttoenable Applicantstoqualifytosupplyafull1,000MWofCapacityResourceInterconnection Service(CRIS)duetoconstraintselsewhereonConEdisons345kVsystem.DPS Staffassumedthatthealternativeresource(1,000MWofCCGTgenerationinCNY) couldinterconnectelsewhereonConEdisons345kVsystem,andthereforeavoidthe costoftheAstoria-RaineyCable.However,thealternativeresourcewouldface comparablelimitationsonCRISrights,duetoconstraintselsewhereonConEdisons345 kVsystem,asexplainedbytheSiemensDeliverabilityAnalysisprovidedbythe Applicants.Asaresult,DPSStaffagreedthattheadditionalcoststoachievefull capacitydeliverability(beyondthecostoftheAstoria-RaineyCable)wouldbeincurredbyboththeFacilityandthealternative,andthereforecanceloutinthenetbenefit analysis.118.DPSStaffestimatedthelong-termproductioncostsavingsoftheFacilityasthecostoftheFacilityplusthecostofthehydropower(dams),lessthecostofthecombinedcycle plantandthepresentvalueoftheplantsfuelandotheroperatingandmaintenancecosts.

Overa35-yearperiod,thesavings(NPV)rangedfromapproximately$1.2billionto$3.2 billionin2015.119.ApplicantshavereviewedtheDPSStaffsanalysisdescribedaboveandwouldnotethatitdoesnotpurporttobeacompleteanalysisofallsocialcostsassociatedwith 52February24,20125479283.32constructionofanew1,000MWCCGTinCNY.Applicantscontendthatacompletesocialcostanalysiswouldalsoincludetheexternalcostsimposedonsocietyofthefar greaterphysicalfootprintofaCCGTplant(includingrequiredoilstoragetanks) comparedtotheCHPEIConverterStationinCNYscrowdedurbanenvironment,andby thereleaseoftheoxidesofnitrogen,carbondioxideandwasteheatproducedbysucha facility.Othersocialcoststhatwouldneedtobeincludedtocompletethisanalysisof socialcostswouldincludethecostsimposedbythereleaseofairpollutionand greenhousegassesbythenaturalgaspipelinesandproductionfieldsthatwouldsupply suchaplant,includingnotonlythesulfurdioxide,oxidesofnitrogenandcarbondioxide releasedbypipelineconverterstations,butalsothereleaseofsubstantialquantitiesof methane,apotentgreenhousegas,innaturalgasproductionandtransmission.120.Moreover,Applicantsindicatethatsuchageneratingfacilitywouldconsumesubstantialquantitiesofnaturalgas,whichunlikethewindandwaterresourcesthatwillsupply CHPEIisafiniteresourcethatisanessentialfuelforhomeheatinginsomepartsofthe countryandmaynotbeeasytoreplace.Totheextentthattheplantwouldberequiredto operateonoiltomeetapplicablein-cityreliabilityrequirements,Applicantsnotethattheenvironmentalimpactsassociatedwithfuelsupplywouldbecorrespondinglygreater.121.Applicantsacknowledgethatquantifyingallofthesesocialcostswouldbeextremelydifficult,ifnotimpossible.Thus,whileDPSStaffsanalysisofcertainofthesocial benefitsoftheFacilityisusefulasasensitivityanalysissuggestingthattheFacilitycanbeexpectedtoprovidenetsocialbenefitsevenunderaverystringentsetofassumptions, Applicantsdonotbelievethatthisanalysiscanberegardedasameasureoftheactual benefitsoftheFacility,tosocietyasawholewhichmaybeconsiderablyhigherthanthe productioncostsavingscalculatedbyDPSStaff.

53February24,20125479283.32122.TheSignatoryPartiesagreethatthenobuildalternativeisnotthepreferredoptioninthisproceeding,asitwouldresultinalessdesirablebalanceofeconomicandenvironmentalbenefitscomparedtoadverseenvironmentalimpactsthanwouldthe constructionandoperationoftheFacility.Moreover,becausetheHVDCTransmission Systemisbeingdevelopedonamerchantbasisratherthanatratepayerexpense,the FacilityshouldbeviewedasacomplementtotheCommissionspublicpolicyobjectives topromoterenewablegenerationfacilities,reduceenvironmentalimpacts,suchasairpollution,andincreasefueldiversity.

5123.TheSignatoryPartieshavealsoconcludedthatconservationanddistributedgenerationcannotbeconsideredtobeeffectivealternativestotheFacility.UnliketheHVDC TransmissionSystem,whichisbeingdevelopedonamerchantbasiswithouttheneedfor ratepayerfunding,bothconservationanddistributedgenerationareunlikelyto significantlyincreaseinCNYwithoutCommissionassistance.TheCommissionmay pursuefundingforprojectsinordertoachievewhateverbenefitstheycanprovidein additiontotheFacility.F.OverlandConsiderations124.TheFacilityasproposedwouldbelocatedentirelyundergroundorunderwater,exceptforthespecificfacilitycomponentsincludingvariouscoolingequipmentatlocationsalongtheFacilityROW,andtheConverterStationatAstoria.SeeExhibit117foralist ofcoolingequipmentatlocationsalongtheFacilityROW.

5 SeeExecutiveOrder111-DirectingStateAgenciesToBeMoreEnergyEfficientAndEnvironmentallyAwareGreenAndCleanStateBuildingsAndVehicles(issuedbyGovernorGeorgePatakionJune30,2001andcontinuedbyGovernorEliotSpitzeronJanuary1,2007andbyGovernorDavidPatersononMarch20,2008),and ExecutiveOrder24-EstablishingaGoaltoReduceGreenhouseGasEmissionsEightyPercentbytheyear2050 andPreparingaClimateActionPlan(issuedbyGovernorDavidPatersonAugust6,2009).

54February24,20125479283.32G.ConformancetoLong-RangePlansforExpandingtheElectricGrid125.TheFacilityisconsistentwiththemostrecentStateEnergyPlan,whichestablishesasapolicyobjectivethatthestateofNewYorkwillsupportenergysystemsthatenablethestatetosignificantlyreducegreenhousegasemissions.

6Infurtheranceofthisgoal,theRenewablePortfolioStandard(RPS)goalwasincreasedfromtwentyfive(25)percent tothirty(30)percentonJanuary8,2010.

7TheNewYorkStateEnergyPlanstatesthatanincreaseinrenewableenergywillrequireadditionaltransmissioninNewYork.

8 NotalloftheelectricitydeliveredbytheFacilitywillmeettheexactingstandardsofNewYorksRPSprogram.However,becausewindandhydroresourcesalreadyrepresentninety-four(94)percentoftheelectricitypowergenerationintheHydro-Québeccontrol area,andbecauseHydro-Québechasnoplanstointerconnectanyadditionalgeneration resourcesotherthanwind,hydro,andotherrenewableresources, 9Applicantsanticipatethatatleastninety-four(94)percentofthepowerwillcomefromhydroelectricand/orwindresourcesthatwillnotcontributetogreenhousegasemissions.126.TheFacilityisalsoconsistentwithCNYsownPlaNYC,inwhichtheCNYrecognizedthatprovidingCNYresidentswithincreasedaccesstorenewableenergysupplieswill 6 SeeEnergyInfrastructureIssueBrief,NewYorkStateEnergyPlan2009(December2009),p.9,availableathttp://www.nysenergyplan.com/2009stateenergyplan.html

.7 Id.at15,25.8 Id.at1.9Windandhydroresourcesalreadyrepresentninety-four(94)percentofthepowergenerationintheHydro-Québeccontrolarea.Hydro-Québec,AnnualReport2010,p.3(2011).Availableathttp://www.hydroquebec.com/publications/en/annual_report/pdf/rapport-annuel-2010.pdf.ApplicantscontactedHydro-QuébecwhichhasinformedtheApplicantsthatthesourcesofremaining6%areimportsfromtheneighboringcontrolareasanddieselgenerationconnectedtocertainisolateddistributionsystemsoperatedbyHydro-QuebecinremoteportionsoftheProvinceoftheQuébec.

55February24,20125479283.32simultaneouslyreduceelectricityprices,localairpollution,andgreenhousegasemissionsintheCNY 10.H.SystemReliabilityImpactStudies127.ASystemReliabilityImpactStudy(SRIS)fortheinterconnectionoftheHVDCTransmissionSystematNYPAs345kVbuslocatedatAstoriahasbeencompletedby theNYISO.ThestudyshowsthattheHVDCTransmissionSystemcanbeconnectedto theNewYorkStateBulkPowerSystem(NYSBPS)withoutadverselyaffecting reliability.TheApplicantshavenotyetexecutedastudyagreementforaNYISOClassYearStudy.ThatstudywilldeterminetheadditionalsystemupgradesneededtoallowtheHVDCTransmissionSystemtoconnecttotheNYSBPSasanenergyresourceand mayalsodeterminetheadditionalsystemupgradesrequiredfortheHVDCTransmission SystemtoqualifyasacapacityresourcetotheextentthatApplicantsrequestCapacity ResourceInterconnectionService.TheNYISOstated:Subsequenttothe7/29/10

[TransmissionPlanningAdvisorySubcommittee]reviewandrecommendationfor[OperatingCommittee]approvaloftheAstoria[OptionalInterconnectionStudy(OIS)]

1. 2studyreportfor[CertificateHolders]HVDCTransmissionProject#305,theNYISO informed[CertificateHolders]that[LongTermEmergency(LTE)]ratherthan[Short TermEmergency(STE)]ratingsshouldhavebeenusedinthestudyforthetwo Astoria-E13thStreetQ35L&Q35McablecircuitsownedbyNYPA.IfLTEratings wereusedintheOIS#2studyforthetwoAstoria-E13thStreetQ35L&Q35Mcable circuits,lossofoneofthetwocableswouldhavecausedtheremainingcablecircuitto exceeditsLTEratingof621MVAbuttherewouldhavebeennosignificantadverse impactonthereliabilityoftheNewYorkStateTransmissionSystem.Toavoidthe 10 SeePlaNYC(2007),pp.112-117,availableathttp://www.nyc.gov/html/planyc2030/html/theplan/the-plan.shtml

.

56February24,20125479283.32overloadbeyondLTE,someformofmitigationwouldberequired,whichcouldincludeautomaticallytrippingtheentire1,000MWoutputoftheHVDCTransmissionSystemuponthelossofeithercablecircuit,automaticallyrunningback(virtually instantaneously)theHVDCTransmissionSystemto621MWuponthelossofeither cablecircuit,orrequestinganexceptiontoexceedtheLTEratinguptotheSTErating andreducingtheHVDCTransmissionSystemoutputto621MWwithin15minutes followingthelossofeithercablecircuit.Adeterminationwillbemadeinthefutureastowhichoptiontopursuetopreventanoverloadofeitherofthesecablecircuits(NYISOReviewoftheOptionalInterconnectionStudy-2forTransmissionDevelopers,HVDC AstoriaProjectInterconnectionQueue#305ReportdatedMarch3,2011,DraftMarch9, 2011).However,theSignatoryPartiesnotethateachofthesealternativeswouldrequire approvalbyNYISOorotherapplicableauthoritiesotherthantheCommissionbeforeitisknownwhethertheycanbeimplemented.I.StateandLocalLaws128.Applicantswillcomplywiththesubstantiveprovisionsofeachapplicablestatestatuteandregulation,includingtheNYSCoastalManagementProgramandArticle42oftheExecutiveLawentitled:WaterfrontRevitalizationofCoastalAreasandInlandWaterways.Bywayofexample,ApplicantswillcomplywiththesubstantiverequirementsofthestatutesandregulationscitedinParagraphs16-20oftheProposed CertificateConditions.129.Applicantsagreetoobtainrequiredproprietarypermits/consents/authorizationsbeforethestartofconstruction.Inaddition,ApplicantswillobtainCommissionapprovalofall requiredMunicipalconsentsunderPSL§68.

57February24,20125479283.32130.TheRevisedandUpdatedExhibit7providedasExhibit115identifies,foreachrequiredmunicipalityinwhichtheFacilitywillbelocated,allpotentiallyapplicablelocallawsandregulationsissuedthereunder,aswellaseverysuchlocallegalprovisionthat ApplicantsrequestedinsuchexhibitthattheCommissionrefusetoapplybecause,asappliedtotheFacility,suchlocallegalprovisionisunreasonablyrestrictiveinviewof theexistingtechnology,factorsofcostoreconomics,ortheneedsofconsumers.131.ExceptforthoseprovisionsoflocallawsidentifiedintheRevisedandUpdatedExhibit7providedasExhibit115,thatApplicantsspecificallyrequestedthattheCommissionrefusetoapply,Applicantswillcomplywith,andthelocationoftheFacilityasproposed conformsto,allsubstantivelocallegalprovisionsapplicablethereto.132.ACertificateConditioncontainedinAppendixChereofprovidesthattheApplicantswillapplyforspecifiedCNYpermits,subjecttotheCommissionsongoingjurisdiction.133.TothedegreethatthesubjectmatteroftheNewYorkStateUniformFirePreventionandBuildingCodeandtheEnergyConservationConstructionCodeapplytotheFacility,Applicantsagreetoundergobuildingplanreviewandobtainbuildingpermits, inspections,andcertificatesofoccupancy,asappropriate,upontheinspectionand completionofconstructionfromtheCNYDepartmentofBuilding.TheSignatory PartiesagreethatifApplicantsfollowsuchacourseofaction,therecordinthisproceedingsupportsafindingunderPSL§126(1)(f)thattheFacilityisdesignedto operateincompliancewithapplicablestatelaws,andregulationsissuedthereunder,concerningtheNewYorkStateUniformFirePreventionandBuildingCodeandtheEnergyConservationConstruction Code.ACertificateConditioninAppendixChereofimplementstheApplicantsagreement.

58February24,20125479283.32J.PublicInterest,ConvenienceandNecessity134.ThebenefitsoftheFacilityfallintothreeprincipalcategories:(a)reducedwholesalemarketpricesinCNY,LongIslandandthelowerHudsonValley;(b)reducedairemissionsinthoseareas;and(c)increasedreliabilityoftheBulkPowerSysteminCNY.a.WholesaleEnergyPriceSavings135.TheApplicantsandDPSStaffforecastthepotentialreductioninwholesalemarketprices,usingdifferentelectricityproductioncostcomputermodelsandcomparingtheeffects underascenariowiththeFacility,toascenariowithouttheFacility,assumingnoother changestoelectricitysupplyordemandasaresultoflowerprices.Theseforecasts, therefore,donotaddresshowlongthesesavingscouldbeexpectedtolast,sincethey neglectpotentialsupplyanddemandresponsestolowerpricesresultingfromtheFacility.136.TheFacilityisexpectedtobenefitNYSbyreducingwholesaleelectricenergypricesinCNY,LongIslandandthelowerHudsonValley.InareportfiledwiththeJuly22,2010 ArticleVIIApplicationsupplement,LEIinitiallyestimatedthatthewholesaleenergy marketpricebenefitsoftheFacilitywouldrangefrom$684millionperyearto$904 millionperyearonaverageoveratenyearperiod,withanexpectedaveragesavingsof

$813.5millionperyearfortheNewYorkControlAreaasawhole(NYCA).137.InJanuary2011,DPSStaffalsopreparedestimatesofthewholesaleenergymarketpricesavingsresultingfromtheFacility,whichshowedalowerlevelofsavings.Specifically, DPSStaffsanalysisperformedusingtheGEMAPSmodelandtheinputdatabasefrom the2009StateEnergyPlanplacedthecostsavingsforasingletestyear(2018)between

$405and$720million.138.Workingcollaboratively,ApplicantsandDPSStaffidentifiedseveralreasonsforthedifferencebetweentheLEIandDPSStaffresults.LEIupdateditsanalysisincorporating 59February24,20125479283.32studychangesasdescribedinLEIsReportofthe2018TestYearModelingAnalysisprovidedtothepartiesinsettlementdiscussionsonJanuary18,2011andprovidedas Exhibit88.139.TheresultsofDPSStaffsGEMAPSstudyandLEIsupdatedanalysisaresimilar,asshowninFigure1below:Figure1.ComparisonofwholesaleenergymarketbenefitsoftheFacilityforNYCAin2018($millions)WholesaleEnergyMarketBenefit($millions)DPSStaffestimate$405-$720LEIUpdatedwholesaleenergymarket benefitwithCHPEI@75%-90%$554-$654Thesestudiesalsodemonstratethat,inadditiontothebenefitstotheNYCAnotedabove,theFacilitycouldalsoreducewholesalemarketpricesinneighboringcontrolareas.140.GiventhesubstantialdifferencebetweenthecomputermodelsoftheoperationoftheNYSBPSusedbyLEIandDPSStaff,andthedifferencesinotherassumptions underlyingtheforecasts,thesimilarityofresultsbetweenthesetwostudiesclearlyshows thattheFacilitywillresultinsubstantialreductionsinwholesaleenergyprices.b.EnvironmentalBenefits141.ThesestudiesalsoindicatedthattheFacilitywouldresultinenvironmentalbenefitsbyreducingtheemissionsofSO 2,NO X,andCO 2duetothedisplacementofelectricpowerthatwouldhaveotherwisebeengeneratedbyburningfuelinpowerplants.Acomparison oftheestimatesofannualenvironmentalbenefitsaspredictedbyLEIandbyDPSStaff usingtheGEMAPSprogramforcalendaryear2018ispresentedinFigure2below:

60February24,20125479283.32Figure2.ComparisonofemissionsreductionsoftheFacilityforNYCAin 2018EmissionsReductions SO 2(tons)NO X(tons)CO 2(tons)DPSStaffestimate499-828748-1,4321.5-2.2 millionLEIUpdated

emissions reductionbenefitwithCHPEI@75%-90%454-571952-1,1142.5-2.9 millionHere,too,thesimilaritybetweentheresultsproducedbytheverydifferentmodelingapproachesusedbyLEIandDPSStaffsuggestthatthesearereasonableestimatesofthereductionsinemissionsofthesepollutantsresultingfromtheFacility.142.DPSStaffrevisiteditsanalysisinJuly2011toaddressconcernsthatbenefitsmightbesignificantlyreducedfromearlierestimatesasaresultofenergydeliverabilityconcerns.

Toaddressthese,Applicantsundertookadditionalanalysesthatresultedintheproposal toconstructandoperatetheAstoria-RaineyCable.Inaddition,Applicantsarealso pursuingimplementationoftheOperationalMeasures.Asdescribedinparagraph117 above,thesemeasurescouldallowApplicantsandthenewgas-firedAE2combinedcycle unittosimultaneouslydelivertheirrespectiveenergytoConEdisons345kVsystem.

Althoughthebenefitsofthisincreasedcapabilityhavenotbeenquantified,the expectationisthatboththeeconomicandairemissionsbenefitsshouldbegreaterthan theestimatesprovidedbyLEIandDPSStafffortheApplicantsoriginalproposal.

Further,itshouldbenoted,however,thatasitwascompletingitsJuly2011analysis addressingenergydeliverabilityconcerns,DPSStaffbecameawareofrecentsignificant changesinenvironmentalregulationsthatareexpectedtoimposemuchmorestringent emissionslimitsforSO 2andNO xinthenearfuture.First,revisionstotheNYSDECNO x

61February24,20125479283.32ReasonablyAvailableControlTechnology(RACT)regulationsincludelowerNO xemissionratestandards.Second,onJuly6,2011,theUSEPAfinalizeditsproposedCleanAirTransportRuleastheCrossStateAirPollutionRule(CSAPR),requiring moreaggressivereductionsinSO 2andNO xemissionsonanacceleratedbasis.WhiletheserequirementsmayreduceairpollutantemissionsfromolderexistinggeneratorsandtherebyreducetheairqualitybenefitsoftheFacilitytosomeextent,theSignatoryParties agreethattheairqualitybenefitsoftheFacilityareexpectedtoremainsubstantial.143.TheSignatoryPartiesagreethatthenobuildalternativecouldpotentiallyresultinthelossinannualwholesalemarketpricesavingsintherangeof$405-$720millionand associatedreductionsinemissionsofSO 2,NO x,andCO 2duetodisplacementofelectricitythatwouldotherwisebegeneratedbyburningfossilfuels.144.TheSignatoryPartieshaveagreedupontheestablishmentoftheHudsonRiverandLakeChamplainHabitatEnhancement,Restoration,andResearch/HabitatImprovement ProjectTrust(theTrust),asdetailedatProposedCertificateCondition165inAppendix C,tobeusedexclusivelyforin-watermitigationstudiesandprojectsthathaveadirectnexustotheconstructionandoperationoftheFacility.TheSignatoryPartieshave participatedinextensivediscussionstodevelopavarietyofstudiesandprojectsthatwill minimize,mitigate,studyand/orcompensatefortheshort-termadverseaquaticimpacts andpotentiallong-termaquaticimpactsandriskstothesewaterbodiesfromconstruction andoperationoftheFacility.145.NYSDOSandthefollowingpartiessigningthisJointProposal,withoutreservation,haveagreedtoserveontheGovernanceCommitteeoftheTrust:

(1)ChamplainHudsonPowerExpress,Inc.andCHPEProperties,Inc; (2)DPS; 62February24,20125479283.32(3)DEC;(4)CNY; (5)APA; (6)TroutUnlimited; (7)ScenicHudson;and (8)Riverkeeper.146.Withinsixty(60)daysaftertheexecutionoftheJointProposal,DPSstaffwillconveneameetingoftheGovernanceCommittee.TheGovernanceCommitteeshallhavefinaldecision-makingauthorityovertheTrustandwilldevelopinternalrulesandprocedures whichshallestablish:

(a)theorganizationandadministrationoftheTrust; (b)theoperationsoftheCommitteeincludingassistancewiththeimplementationofthePriorityProjectsasdefinedinProposedCertificateCondition165in AppendixCandmakingfinaldeterminationsregardingotherprojectsproposedto befundedthroughtheremainderoftheTrust;and(c)allothernecessaryandappropriatetasksincludingthedevelopmentofascheduleforfuturecommitteemeetings.ProvidedhoweverthattheGovernanceCommitteeshallhavenoauthoritytoauthorizetheexpenditureofanymoneyorthemakingofanylegallyenforceablecommitment(s) bytheTrustpriortothedateofApplicantsinitialendowmentoftheTrustasprovidedin ProposedCertificateCondition165inAppendixC.147.Technicalsub-committeesconsistingofinterestedsignatoriestotheJointProposalandinterestedstateandfederalresourceagencieswithpermittingauthorityorotherjurisdictionovertheFacilitywillbeconvenedbytheGovernanceCommitteeafterthe 63February24,20125479283.32GovernanceCommitteesfirstmeetingtoprovidescientificandtechnicaladvice,supportandrecommendations.Thetechnicalsub-committeeswillevaluateandassistwiththe implementationoftheprojectsapprovedforfunding.c.ReliabilityBenefits148.DuetothehighlycontrollablenatureoftheHVDCTransmissionSystem,theFacilitywillprovidetheNYSBPSwithanumberofbenefitsthatcanbeexpectedtoincrease overallsystemreliability.Thesebenefitsincludefastvoltagecontrol,andtheabilitytoenergizeatalowervoltagelevelwhenrequired.Inaddition,theoutputoftheHVDC TransmissionSystemiscontrollablesothatsystemoperatorscanmatchloadand generation,atmorningpickup,duringsystememergencies,normaloperation,etc.ThisHVDCTransmissionSystemprovidesanothersourceintotheConEdisoncontrolarea.

TheHVDCTransmissionSystemisisolatedandpreventssystemdisturbancesfromthe Hydro-QuebecsystempropagatingintoNewYork,likewise,disturbancesinNewYork cannotpropagateintotheHydro-Quebecsystem.d.OtherConsiderations149.TheFacilityisnotexpectedtohaveanyadverseimpactsonpublicsafetyoronpubliclands,asitwouldbelocatedalmostentirelyundergroundorunderwater,andthe ProposedCertificateConditionsdealingwithconstructionwouldminimizeboththe impactsonthepublicandthesafetyissuesassociatedwiththeconstructionand maintenanceoftheFacility.Inaddition,theportionsoftheFacilitysoverlandroutewouldbesubjecttotaxationbythemunicipalitiesinwhichtheywouldbelocated.IV.PROPOSEDFINDINGS150.TheSignatoryPartiesagreethattherecordinthisproceedingenablestheCommissiontomakethefindingsrequiredinconnectionwiththeconstructionandoperationofan 64February24,20125479283.32electrictransmissionlinethataresetforthinPSL§126(1)(a),(b),(c),(d)(1)and(2),(f)and(g).V.PROPOSEDCERTIFICATECONDITIONS151.TheSignatoryPartiesagreethattheproposedCertificateConditionssetforthinAppendixCheretoareacceptableandappropriateforinclusioninaCertificateofEnvironmentalCompatibilityandPublicNeedauthorizingconstructionandoperationof theFacilityasproposedherein.VI.ENVIRONMENTALMANAGEMENTANDCONSTRUCTIONPLANGUIDELINES152.TheSignatoryPartiesagreethattheBMPsandtheEM&CPGuidelinessetforthinAppendicesGandFheretoareacceptableandappropriateforapplicationtotheFacilityasproposedherein.VII.WATERQUALITYCERTIFICATION153.TheSignatoryPartiesagreethattherecordinthisproceedingsupportstheproposedWQCsetforthinAppendixDhereto.OnthedatethattheexecutedJointProposalwasfiled,theApplicantsalsofiledarequestthattheCommissionissueaWQC,pursuantto§ 401oftheFederalCleanWaterAct(CWA),foractivitiesassociatedwithconstruction oftheFacility.TheCWArequiresafederalpermittodischargedredgedorfillmaterialintonavigablewaters(33U.S.C.§§1311(a)and1342(a))andrequiresanapplicantfor afederalpermittoprovideacertificationfromtheStatethatthedischargewillcomply withStatewaterqualitystandards.GiventheministerialnatureoftheCommissionsdecisionstograntaWQC(inthat,whetherissuedbeforeorafteranArticleVII Certificate,suchWQCmustbeconsistentwithanysuchcertificate),aswellasthe normalsixty(60)dayperiodforgrantingthecertificationsestablishedinfederalrules[33 65February24,20125479283.32C.F.R.§325.2(b)(1)(ii)](whichperiodmaybeextendedforuptooneyear)afterwhichawaiverwillbedeemedtooccur,theCommissiondelegatedresponsibilityforgrantinga WQCinconnectionwithArticleVIIcertificatestotheDirectoroftheOfficeofEnergy EfficiencyandtheEnvironment.AsrequestedbytheApplicants,theDirectorshould issuetheWQConorbeforethe60 thdayafterthefilingofthisrequesttoavoidwaiverofsuchcertification,unlessDPSStaffhasprovidedinformationtotheUSACEindicating thatcircumstancesrequireaperiodoftimelongerthansixty(60)days(uptooneyear).[SIGNATUREPAGESFOLLOWATTHEENDOFTHEDOCUMENT]

66February24,20125479283.32APPENDIXA-LISTOFTESTIMONYANDEXHIBITSTOBEADMITTEDTestimony:DirecttestimonyofSamanthaHard,JuliaFrayer,JoshuaBrown,SeanMurphy,LaurenceE.Perkins,CarlErikOpsahl,AlanPrior,LauraLefebvre,RonaldA.Alveras,RobertQuiggle,Jack Wu,KennethCormier,JudithBartos,andAnthonyAgrestisponsoringExhibits1through9 (Exhibits1through9totheapplicationinthisproceeding(theApplication)andExhibits10-15 (ExhibitsE1throughE-6totheApplication).InadditiontotheOriginalApplicationthatwassubmittedonMarch30,2010,theApplicantsfiledtheSupplementtotheArticleVIIApplicationbyCHPEIdocumentonJuly22,2010 (Supplement).JuliaFrayer,JoshuaBrown,SamanthaHard,JudyBartos,AnthonyAgresti, SarahZappala,LaurencePerkins,andAlanPriorsponsoredAttachmentsAthroughMofthe

Supplement.Applicantsalsolistedseveralreportsthatweresharedwiththepartiesduringthesettlementnegotiations.JOINTPROPOSALExhibitListExhibit1:GeneralInformationRegardingApplication(Exhibit1totheApplication)Exhibit2:LocationofFacilities(Exhibit2totheApplication)

Exhibit3:AlternativesAnalysis(Exhibit3totheApplication)

Exhibit4:EnvironmentalImpacts(Exhibit4totheApplication)

Exhibit5:DesignDrawings(Exhibit5totheApplication)

Exhibit6:LocalEconomicEffects(Exhibit6totheApplication)

Exhibit7:LocalOrdinanceReview(Exhibit7totheApplication)

Exhibit8:OtherPendingFilings(Exhibit8totheApplication)

Exhibit9:CostofProposedFacilities(Exhibit9totheApplication)

Exhibit10:DescriptionofProposedTransmissionLines(ExhibitE-1totheApplication)

Exhibit11:OtherFacilities(ExhibitE-2totheApplication)

Exhibit12:UndergroundConstruction(ExhibitE-3totheApplication)

Exhibit13:EngineeringJustification(ExhibitE-4totheApplication) 67February24,20125479283.32Exhibit14:EffectsonCommunication(ExhibitE-5totheApplication)Exhibit15:EffectonTransportation(ExhibitE-6totheApplication)

Exhibit16:AgencyConsultation(AppendixBtotheApplication)

Exhibit17:WetlandDelineationReport(AppendixCtotheApplication)

Exhibit18:HistoricSedimentSamplingLocation(AppendixDtotheApplication)

Exhibit19**:HistoricandArcheologicalResourceMappingandTables(AppendixEtothe Application)Exhibit20:LEIProjectedEnergyMarketandEmissionsImpactAnalysisReport(AppendixFtotheApplication)Exhibit21:NexansCableSystemStudyReport(AppendixGtotheApplication)

Exhibit22:ElectricandMagneticFieldsReport(AppendixHtotheApplication)

Exhibit23:AppendixA:DataGapsandDeficiencies(AppendixAtotheSupplementfiledonJuly29,2010)Exhibit24:AppendixB:RequestsforAdditionalInformation(AppendixBtothe Supplement)Exhibit25:AppendixC:ResponsetoNYSDECComments(AppendixCtotheSupplement)

Exhibit26:AppendixD:RevisedProjectDescription/UpdatedFacilityDescriptionandResources(AppendixDtotheSupplement)Exhibit27:ProjectedEnergyMarket,CapacityMarketandEmissionsImpactAnalysisoftheChamplain-HudsonPowerExpressTransmissionProjectforNewYork(AttachmentAtotheSupplement)Exhibit28:RevisedWetlandDelineationReport(AttachmentBtotheSupplement)Exhibit29:VisualAssessmentReport(AttachmentCtotheSupplement)

Exhibit30:NoiseAssessmentReport(AttachmentDtotheSupplement)

Exhibit31:MarineSurveyReport(AttachmentEtotheSupplement)

Exhibit32:UpdatedEcologicalMapping(AttachmentFoftheSupplement) 68February24,20125479283.32Exhibit33:ThreatenedandEndangeredSpeciesConsultations(AttachmentGofthe Supplement)Exhibit34:UpdatedDesignDrawings(AttachmentHoftheSupplement)Exhibit35:RevisionofExhibit7LocalOrdinanceReview(AttachmentIoftheSupplement)

Exhibit36:Exhibit9:CostofProposedFacilitySupplemental(AttachmentJofthe Supplement)Exhibit37:RevisionofExhibitE-2OtherFacilities(AttachmentKoftheSupplement)

Exhibit38**:DraftSRISReport(AttachmentLoftheSupplement)

Exhibit39:RevisedElectricandMagneticFieldsReport(AttachmentMoftheSupplement)

Exhibit40:CertificatesofService(AttachmentNoftheSupplement)

Exhibit41:HVDCClassicReferenceList(AttachmentOoftheSupplement)

Exhibit42:AquaticSamplingandAnalysisPlan(AttachmentPoftheSupplement)

Exhibit43:SupplementalAlternativesAnalysis(AttachmentQoftheSupplement)

Exhibit44:ListofRecreationalTrailsandPublicRecreationalAreasalongUnderwaterTransmissionCableRoute(AttachmentRoftheSupplement)Exhibit45:FOILLetterssenttoPublicDrinkingWaterSystems(AttachmentSofthe Supplement)Exhibit46:EstimateTaxImpacts(RoughEstimatesOnly)(AttachmentToftheSupplement)

Exhibit47:FloodInsuranceMaps(AttachmentUoftheSupplement)

Exhibit48:State,County,andMunicipalLandUsePlans,ComprehensivePlansandMasterPlans;LocalLaws,Codes,andZoningOrdinances(AttachmentVofthe Supplement)Exhibit49:ReplacementMaps(AttachmentWoftheSupplement)Exhibit50**:FeasibilityStudyReport(NYISOQueue#305)(AttachmentXoftheSupplement)

Exhibit51:ConsultationswithTransportationAgencies(AttachmentYoftheSupplement)

Exhibit52:PublicNotices(AttachmentZoftheSupplement)

Exhibit53:PublicInformationPlan(AttachmentAAoftheSupplement) 69February24,20125479283.32Exhibit54:FilingwithFederalEnergyRegulatoryCommission(AttachmentABofthe Supplement)Exhibit55:NationalandStateHeritageAreas,StateHeritageTrails(AttachmentACofthe Supplement)Exhibit56:LettertoCommission,datedAugust6,2010Exhibit57:DesignDrawings(AttachmentAtoAugust6,2010letter)

Exhibit58:UpdatedExhibit7(AttachmentBtoAugust6,2010letter)

Exhibit59:LettertoCommission,datedAugust11,2010 Exhibit60:DesignDrawings(AttachmenttoAugust11,2010letter)

Exhibit61:ResponsetoVisualAssessmentInformationNeedsRequest(AttachmenttoAugust11,2010letter)Exhibit62:CertificatesofService(AttachmenttoAugust11,2010letter)

Exhibit63:DPS-1throughDPS-190 11Exhibit64:NYSDEC-1throughNYSDEC-6 Exhibit65:APA-1throughAPA-9 Exhibit66:CHG-1throughCHG-17 Exhibit67:COW-1throughCOW-6 Exhibit68:Entergy-1throughEntergy-2 Exhibit69:IBEW-1throughIBEW-11 Exhibit70:IPPNY-1throughIPPNY-39 12Exhibit71:NYPA-1throughNYPA-12 Exhibit72:NYSTA/CC-1throughNYSTA/CC-9 Exhibit73:OPRHP-1throughOPRHP-3 11DPS-130doesnotexist.

12IPPNY36-39donotincluderesponses.

70February24,20125479283.32Exhibit74:RVK-1throughRVK-12Exhibit75:ADKC-1andADKC-2 Exhibit76:APAInformal-1throughAPAInformal-2 Exhibit77:NYSDECInformal-1 Exhibit78:DOSInformal Exhibit79:NYSDOTInformal-1throughNYSDOTInformal-5 Exhibit80:RVKInformal-1 Exhibit81:InformalIRsreceivedverballyduringtheSettlementConferences(Informal-1throughInformal-5) 13Exhibit82:DPSInformal-1throughDPSInformal-23 14Exhibit83:COY-1throughCOY-14 Exhibit84:LakeChamplainWaterQualityModeling(October,2010)

Exhibit85:Hudson,HarlemandEastRiverWaterQualityModeling(October,2010)

Exhibit86:ChamplainHudsonPowerExpressProject-UpdatedAlternativesAnalysis(submittedonNovember5,2010)Exhibit87:ApplicantsLettertoNewYorkStateDepartmentofStateregardingUpdatedAlternativesAnalysis(January18,2011)Exhibit88LEIMemoontheResultsofthe2018TestYearModelingAnalysis(distributedJanuary24,2011)Exhibit89:TechnicalReviewReportbyESS,submittedbyRiverkeeper,Inc.andScenicHudson(January21,2011)Exhibit90:RevisedLakeChamplainWaterQualityReportwithShearPlow(January,2011)

Exhibit91:LettertoNewYorkStateDepartmentofState(datedFebruary4,2011)

Exhibit92:LettertoNewYorkStateDepartmentofState(datedFebruary18,2011)

Exhibit93:HarlemRailYardLayoutMap(submittedonFebruary23,2011) 13Informal-4doesnotexist.

14DPSInformal-16doesnotexist.

71February24,20125479283.32Exhibit94:CulturalResourcesAnalysisofUnderwaterRemoteSensingDataforChamplainHudsonPowerExpressdatedFebruary22,2011andRevisedCulturalAnalysisReportdatedAugust09,2011Exhibit95:TypicalConstructionSpreadsalongRoute22(submittedonFebruary23,2011)Exhibit96:BallstonSpaAlternative(submittedonFebruary23,2011)

Exhibit97:RoutingMapforErieBoulevard,CityofSchenectady(submittedonFebruary24, 2011)Exhibit98:RouteReconfigurationinLakeChamplain:EnvironmentalImpacts(submittedon(February28,2011)Exhibit99:CertificateofServiceonAdditionalMunicipalities(submittedonMarch4,2011)

Exhibit100:ApplicantsLettertoNewYorkStateDepartmentofState,datedMarch18,2011 Exhibit101:ApplicantsResponsetoNewYorkStateDepartmentofPublicServicereviewofESSReport(submittedon4/15/2011).Exhibit102:DescriptionofProtectedAreaswithinHudsonRiver(submittedApril29,2011)

Exhibit103MemorandumfromExponentInconEffectofBolt-onSplitPipeonDCMagneticFieldLevels,datedMarch15,2011Exhibit104:MeetingnotesformeetingwithEnergySubcommitteeoftheHarborOperationsSafetyandNavigationCommitteeheldonMarch16,2011(submittedonMarch28,2011)Exhibit105:UplandDeviationZoneReport(submittedonMay20,2011)Exhibit106:FidelityTitleReview(submittedonMay3,2011)

Exhibit107:RevisedNoiseAssessmentReport(June2011)

Exhibit108:ComparativeAnalysisofConverterStationSites(Yonkers,AstoriaandHarlemRiverYardSites)(submittedonApril20,2011,revisedonFebruary6,2012)Exhibit109:KarnerBlueButterfly(LycaeidesMelissasamuelis)ImpactAvoidanceandMinimizationReport(submittedonJune17,2011)andconfidentialmaps.

• • Exhibit110:AmendmenttoVisualAssessmentReport:ProjectedConverterStationinAstoria,NY.(June16,2011)Exhibit111:RevisedConstructionCostoftheProject(submittedonApril29,2011) 72February24,20125479283.32Exhibit112:CHPEI-1throughCHPEI-14Exhibit113:IBEWInformal-1 Exhibit114:CECONY-1throughCECONY-22,CECONYInformal-1and2,andCECONYtoNYPA-1 15Exhibit115:RevisedandUpdatedExhibit7totheApplication(submittedonJuly14,2011),alongwithalllocallawscitedthereinExhibit116:RevisedElectricandMagneticFieldsReport(July2011)Exhibit117:ListofcoolingequipmentatlocationsalongtheROW Exhibit118:LakeChamplainBurialDepthUpdate(submittedOctober26,2011)

Exhibit119:RevisedElectricandMagneticFieldsReportforHVACCable Exhibit120:RevisedAlternativesAnalysisforAstoria-RaineyCable(RevisedFebruary7, 2012)Exhibit121:RevisedEnvironmentalImpactsassessment(February7,2012)

Exhibit122:ReporttothePartiesregardingcabletypes(February9,2012)

Exhibit123:SiemensPTI-TDIsMerchantCHPEITransmissionProjectwithPOIatAstoria(NYISOQueue#305DeliverabilityAnalysis)Exhibit124:IndependentStudytoEstablishParametersoftheICAPDemandCurvefortheNewYorkIndependentSystemOperator,September3,2010,RevisedSeptember7,2010andNovember15,2010Exhibit125:ApplicantsReporttoPartiesregardingConEdisonsProposedLocalTransmissionPlan(February14,2012)AppendixB:DescriptionoftheFacilitiesandMaps***AppendixC:ProposedCertificateConditionsandMonitoringReports***AppendixD:WaterQualityCertification***AppendixE:EM&CPGuidelines***AppendixF:BestManagementPractices*****ConfidentialDocument-DocumentwasonlyfiledwiththeALJs.***IncludedintheDVD,JointProposalofSettlementExhibits,datedFebruary24,2012.

15CECONY20-22,andCECONYInformal1and2donotincluderesponses.

CASE 10-T-0139 Joint ProposalIN WITNESS WHEREOF, the PartiProposal.s hereto this day signed and executed this Jointplain Hudson Power Express, Inc.

Donald JessomePresident and CEODATE: //Y , 2012

-roperties, Inc.

CASE10-T-0139 Joint ProposalIN WITNESS WHEREOF, the Parties hereto this day signed and executed this JointProposal.Donald JessomePresident and CEODATE: , 2012 CASE lO: T-0139 -Joint Proposal IN WITNESS WHEREOF, the Parties hereto this day signed and executed this Joint Proposal.

Staff of the New York State Department of Public Service By: Steven Blow Assistant Counsel CASE 10-T -0139 -Joint Proposal IN WITNESS WHEREOF, the Parties hereto this day signed and executed this Joint Proposal.

Environmental Conservation By: Patricia Desnoyers Office of General Counsel CASE 10-T -0139 -Joint Proposal IN WITNESS WHEREOF, the Parties hereto this day signed and executed this Joint Proposal.

Cesar A. Perales Secretary of State New York State Department of State Dated: February 23, 2012 CASE lO-T-0139

-Joint Proposal IN WITNESS WHEREOF, the Parties hereto this day signed and executed this Joint Proposal.

DATE: February 17,2012 New York State Department of Transportation*

By: Robert L. Sack, P.E. Director Operations Division

• The New York State Department of Transportation is signing this Joint Proposal in support of only those provisions thereof that address issues related to the use and protection of the highways , roads, streets , or avenues and other transportation facilities that are owned by, operated by or under the jurisdiction of the New York State Department of Transportation.

CASE lO-T-0139

-Joint Proposal IN WITNESS WHEREOF , the Parties hereto this day signed and executed this Joint Proposal.

<. rk State AdironClack Park Agency By: Terry deFranco Martino Executive Director CASE10-T-0139-JointProposalTheDepartmentofAgricultureandMarketsendorsementofthisJointProposalandthesupportingdocumentsislimitedtothosetermsandconditionsthatimpactagriculturalresources.INWITNESSWHEREOF,thePartiesheretothisdaysignedandexecutedthisJoint Proposal.__________________________________NewYorkStateDepartmentofAgricultureandMarketsBy:DianeSmithAssociateAttorneyDATE:February23,2012 CASE 10-T-0139 -Joint Proposal IN WI1NESS WHEREOF, the Parties hereto this day signed and executed this Joint Proposal.

Riverkeeper By: Paul Gallay President and Hudson Riverkeeper CASE lO-T-0139-JointProposal IN WITNESS WHEREOF, the Parties hereto this day signed and executed this Joint Proposal.

c By: Ned Sullivan President CASE lO-T-0139

-Joint Proposal IN WITNESS WHEREOF, the Parties hereto this day signed and executed this Joint Proposal.

DATE: February 23, 2012 Yonkers, New York Bryan D. Duroy Assistant Corporation Counsel CASE 10-T-0139 Joint ProposalIN WITNESS WHEREOF, the Parties hereto this day signed and executed this JointProposal.New York State Council of Trout Unlimited By:William WellmanRegion 5 Vice President CASE

-Joint Proposal IN WITNESS WHEREOF, the Parties hereto this day signed and executed this Joint Proposal.

DATE: 2-H-l-ol 2.. By: Sergej Mahnovski Director of Energy Policy Office of the Mayor CASE 10-T-0139 - Joint Proposal IN WITNESS WHEREOF, the Parties hereto this day signed and executed this Joint Proposal.__________________________________

New York State Office of Parks, Recreation & Historic Preservation and the Palisades Interstate Park Commission By: Meyers Jeffrey Associate Attorney DATE: February 24, 2012