1 Transmission Line Projects in Maryland – an Overview Sandra S. Patty PPRP - Manager, Transmission Projects PPRAC Meeting Country Inn & Suites, Annapolis, MD August 26, 2008

2 Transmission Licensing in Maryland Pre-application –Early and often communication encouraged –Preliminary issues are identified and provided to State Agencies Filed Application –Coordinated review by the State Agencies –Results in cohesive State recommended licensing conditions –Evidentiary hearing process takes place and public meetings are held PSC Responsibilities –Review the State Agencies’ recommendations –Issue a final order granting or denying the CPCN

3 Proposed Projects Mid-Atlantic Power Pathway (MAPP) – Pepco Holdings, Inc. Potomac-Appalachian Transmission Highline (PATH) – Allegheny/AEP Joint Venture Other Transmission Projects –Urbana Electric Capacity Upgrade – Allegheny –Raphael Road to Bagley Rebuild – BGE –Holland Cliffs to Helen Creek Rebuild – SMECO

4 Pepco Holdings, Inc. (PHI) 230 miles of 500-kV line through VA, MD, DE, and NJ –Affected counties in MD: Charles, Calvert, Prince George’s, Dorchester, and Wicomico 177 miles (over 75%) planned on or near existing ROW –Entire portion through Southern MD on existing ROW –PHI will obtain new 200-foot ROW in Dorchester Co. Two 230-kV lines also planned (in Dorchester and Wicomico Co.) –To address local reliability issues –Not yet approved by PJM Water crossings planned: –Potomac, Patuxent, and Nanticoke Rivers –Chesapeake Bay (approx. 8 miles from Calvert Cliffs to Dorchester Co.) Option to include a DC line (in lieu of AC) from Calvert Cliffs to Vienna is currently being considered Advantages over AC system, but significant project cost increase

5 Pepco Holdings, Inc. (PHI) (continued) Public Outreach –Five public meetings held in Dorchester County during May/June 2008 –Regularly attending monthly Joint Evaluation meetings to provide project updates Schedule: –Final routing in Dorchester Co. to be completed this fall Followed by second round of public meetings –PHI plans to file its application in phases Possum Point to Calvert Cliffs (S. MD) portion filed by end of 2008, likely by September and completed by 2011 Eastern Shore to Delaware portion filed by 2 nd quarter of 2009 and completed by 2013 Website:

6 Allegheny/AEP Joint Venture 244 miles of 765-kV line –John Amos to Bedington substations (WV) 46 miles of twin-circuit 500-kV lines –Bedington to a proposed substation near Kemptown, MD (southeast of Frederick) –The circuits will be separated and will follow different routes Affected counties in MD: –Washington and Frederick Allegheny has identified draft routing “segments” –Includes crossings of Appalachian Trail and the C&O Canal –Maps available on-line:

7 Allegheny/AEP Joint Venture Public Outreach - Maryland –Frederick and Washington Counties –2 rounds of Stakeholder Siting Meetings held in June and July –Public open house meetings in mid-June and early August –Technical Need Conference in Baltimore – July 17, 2008 Schedule: –Routing study to be completed in November 2008 –Application to be filed by December 1 st –Target date for completion is June 2012

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9 Other Transmission Projects Urbana Electricity Upgrade (Allegheny Power) –Located in Urbana, MD (near Frederick) –Proposed project filed in 2004; PSC denied CPCN request in 2005 with order instructing Allegheny to begin immediate development of an energy solution for Urbana –PPRP served as a resource to a small group of stakeholders that met throughout January to June –Public meetings held in March and April –Project currently on hold; possible coordination with the PATH project

10 Other Transmission Projects (Cont.) Raphael Road to Bagley Rebuild (BGE) –Upgrade of 6 miles of transmission facilities –From Raphael Road substation to proposed Bagley substation (northeast of Baltimore) –Single-circuit 230-kV lines upgraded to double-circuit 230-kV –Rebuild within existing ROW; however, passes through Gunpowder Falls State Park –Application filed May 2, 2008; project currently being reviewed –DNR testimony is due October 1, 2008

11 Other Transmission Projects (Cont.) Holland Cliffs to Helen Creek Rebuild (SMECO) –Upgrade 69-kV lines to 230-kV from Holland Cliffs to proposed Helen Creek substation –Project occurs within existing ROW; however, requires a new crossing of the Patuxent River near the Thomas Johnson Bridge –Designed to create a continuous “loop” of electricity service around SMECO’s service area –Application to be filed late October/early November 2008

12 NIETC Update Has been significant opposition to the federal designation U.S. Senate Committee on Energy and Natural Resources hearings held on July 31, 2008 –Hearing requested by 14 bipartisan Senators –Testimony submitted by numerous environmental and government groups –Main issues of concern: Loss of reasonable process Disincentives for alternative energy Higher utility rates No action expected soon – Senate on summer break

13 Questions???