Electric Transmission Siting, Permitting and Land Acquisition Energy and the Economy Summit June 26, 2013

The Reason…..

Our Lifestyles Depend on Electricity Being There When We Need It ….. Electricity can't be effectively stored It has to be produced and delivered when it is needed This requires a complex system to produce and deliver electricity

Tri-State Generation and Transmission Association Non-profit G&T cooperative operating in four states Governed by a 44- member board, representing Tri- State’s 44 member cooperatives 200,000 square mile member service territory

The Grid….. Tri-State Wholly or Jointly Owns, Operates and Maintains About 5,200 miles of High-Voltage Transmission Network Throughout Four States

Transmission Process Siting Permitting Right-of-Way Acquisition

What is “SITING”? - The act of finding a place for any permanent use or occupation. There is a Process…..

Siting Analysis Define a “Study Area” Collect and Map Resource Data ID Opportunities and Constraints ID Alternative Routes Solicit Public Input Field inspection Select Preferred Alternative

Siting Analysis High Priorities in NE Colorado Avoid, minimize and mitigate impacts to existing land use Pivot irrigation Agricultural production Proximity to homes Oil and gas production Environmental constraints

Endangered Species Our service area contains plants and animals that have been listed as threatened or endangered If these listed species are present seasonal restrictions or area avoidance may be necessary Surveys may be required prior to work being done to ensure compliance with ESA Seasonal – avoid nesting timeframe Avoidance – plants Non-compliance can result in fines, potential loss of permits/Grants of ROW, and substantial mitigation/reclamation costs.

Colorado hookless cactus Federally Threatened Montrose County Gunnison Sage-Grouse Candidate Penland Beardtongue Federally Endangered Route County Ute Ladies’ Tresses Orchid Federally Threatened Morgan County Preble’s Meadow Jumping Mouse Federally Threatened El Paso County

Communications Success Can Depend Upon Effective Public Involvement and How and When You Engage the Public Approach – Open and Transparent Format – Workshops Flush Out Issues Early Audience Landowners Stakeholders Agencies

Engaging Landowners Landowners are first engaged through public involvement process Survey permission sought Land survey Environmental inspection Fatal flaw inspection Individual contact following identification of preferred route

Permitting State – CPCN Process Federal – NEPA Process – Projects crossing federal land – Federal funding Local Land Use Permit – 1041, SUP, CUP – Separate permit process in each local jurisdiction

Permitting Overhead vs. Underground – Cost of Construction Underground costs times what overhead costs – $350,000/mile vs. $3.5-5 million/mile – Construction impacts Continuous trench vs. one structure per span – Maintenance issues Problem areas not readily identifiable underground Potential need for re-excavation Repair time extended for underground

Right-of-Way After permitting – Obtain rights to construct, operate and maintain transmission lines within a designated location (may include access) Transmission line ROW typically consists of perpetual easements – “Right” in the land but not complete ownership

Right-of-Way ROW widths vary depending on voltage – 115kV – 100 feet – 230kV – 150 feet – 345kV – 200 feet Line typically centered in the easement, with the remainder remaining unoccupied

Right-of-Way Typical Provisions – Perpetual easement – Non-exclusive – Owner can grant easements to others – Farming operations can continue – No structures in ROW – No stockpiling or storage in ROW – No trees

Right-of-Way Compensation – Determination of Value Market Data Analysis Appraisals – Good Faith Negotiations are Conducted – Typical offer equals 100% of fee value

Tri-State Approach….. “Not for Profit” Association Committed to Reliable Service at Affordable Cost – Responsible to Overall Membership Follow and Adhere to Applicable Laws Negotiate in Good Faith and with Respect Treat Affected Landowners Fairly

Following Construction….. Repair Construction Damages Ongoing Relationship with Landowners A Presence Throughout Our Service Territory Working For and Through our Membership to Ensure Reliable Service at Affordable Price