Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, March 28, 1995 TAG: 9503280040
SECTION: EDITORIAL PAGE: A-6 EDITION: METRO
SOURCE: CHARLES A. SIMMONS
DATELINE: LENGTH: Medium
He also stated that the company implied that the only alternative to the power line is blackouts, while he could offer ``better solutions.''
In my view, he paints an incomplete, misleading and inaccurate picture of the company's actions and plans regarding this important project.
Whether a warning as to the seriousness of continued delays is indeed a "fear tactic" or not, the 1993 findings of the Virginia State Corporation Commission hearing examiner are worth noting. The hearing examiner had the benefit of days of hearings, as well as volumes of testimony from both the company and line opponents such as COPE. After proceedings spanning more than two years, the hearing examiner concluded:
``The system would be subject to serious line overloads and potentially catastrophic low-voltage conditions without the proposed Wyoming to Cloverdale 765-kv transmission line.''
Insofar as Shaffer's comments about the lack of alternatives to the 765-kv line considered by Apco, the SCC hearing examiner came to a far different conclusion: ``I find that Appalachian has explored all reasonable options and that the proposed project is the most cost-effective and the most environmentally sound option to meet the needs identified.''
Shaffer also claimed that Apco is somehow dishonest in making sales to other utilities, and he falsely stated that we profit from such sales. The facts are that the vast majority of the sales to which he refers existed and were shown in studies included in Apco's 1991 filing with the SCC.
These studies illustrated the minimal impact of these transfers on the critical line elements, as well as the impact of the expiration of such sales to Virginia Power in 1999. The hearing examiner also addressed this issue in his report by stating: ``Assuming a single outage, even with the exclusion of the 900 MW of firm transfers to Virginia Power, Appalachian's transmission system demonstrates unacceptably high loadings and unacceptably low voltages.''
Shaffer, however, does the greatest disservice to Apco's customers by stating that the company profits from sales to other utilities and implying that this is a reason for building the line. The facts are that profits by Apco on such sales help reduce the costs to its own customers. This is one of the chief reasons why our rates are among the lowest in the nation. The hearing examiner recognized this in his comment on the investment required:
"If Appalachian were to realize large profits as a result of this transmission line, those profits would be used to reduce the company's revenue requirement from ratepayers as well as to afford the company's investors a reasonable return on their investment.''
Shaffer noted that the company ``aggressively advertises heat pumps ... in its effort to gain market share [in order] to increase the peak load on its transmission system.'' The fact is that today's high-efficiency heat pumps actually help conserve energy. Company records over the past 20 years also show that the average annual kilowatt-hour usage of Apco's electric heat customers has decreased by 11 percent, while the usage of Apco's non-electric heat customers has increased by 40 percent over that same period.
While space doesn't permit addressing in depth each of Shaffer's accusations or proposals, we would note his ``better solutions'' are simply repeats of proposals put forth by COPE and previously rejected by the SCC hearing examiner. All parties responsible for meeting the needs of Apco's customers who have examined the issue to date - the company, the SCC-retained consultant, the SCC staff and the hearing examiner - have found the proposed 765-kv line to be the proper answer.
Charles A. Simmons, of Roanoke, is a vice president of Appalachian Power Co. and coordinates plans for the company's proposed Wyoming-Cloverdale transmission project.
by CNB