PU-23-318

Docket PU-23-318 concerns the Oliver Wind IV, LLC 345-kV transmission line project in Oliver and Mercer counties, North Dakota. The project involves constructing approximately 19.5 miles of 345-kV electric transmission line to connect the planned wind energy center collection substation in Oliver County to the new LOS 345-kV substation in Mercer County, which will be owned and operated by Basin Electric. The estimated investment for the project is $43 million 1, 2.

Key elements include:
- Construction of about 129 monopoles at 121 structure locations, with temporary facilities such as stringing sites and two laydown areas 2.
- Full-time archaeological and tribal monitoring during construction, with mitigation plans developed in coordination with the North Dakota State Historic Preservation Office (NDSHPO) and Tribal Historic Preservation Officers to protect cultural resources 3.
- Implementation of dust control and soil preservation measures, including strict speed limits for construction vehicles and procedures for topsoil management 4, 5.
- Conditional use permits obtained from Oliver and Mercer counties for both the wind project and the transmission line 6.
- The project is subject to ongoing review and compliance checks by the Public Service Commission, with requirements for regular reporting and adherence to all regulatory and environmental protections 5.

The docket documents regulatory filings, agency correspondences, compliance measures, and mitigation strategies to ensure minimal impact on the environment, wildlife, and cultural resources during the transmission line’s construction and operation.

The financial and timeline risks and concerns discussed in this docket include:

Financial Risks:
- The inability to recover significant costs or a reasonable return on invested capital in a timely manner through regulatory mechanisms.
- Capital expenditures, increased operating costs, and various liabilities due to environmental laws and regulations.
- The impact of new or revised laws, regulations, or policies on project costs, including the potential reduction or elimination of governmental incentives for renewable projects.
- Exposure to compliance costs, potential monetary penalties, and sanctions from extensive federal regulation.
- Risks of increased operating costs from unfavorable supply costs and volatility in market values of derivative instruments.
- Impacts from disruptions or volatility in the credit and capital markets, affecting the ability to fund liquidity and capital needs or meet growth objectives.
- The risk that the amount and timing of dividends, as well as dividend policy, are at the discretion of the board and may not meet shareholder expectations.
- The inability to access sources of capital on commercially reasonable terms, affecting future acquisitions and project funding.
- Poor market performance impacting pension plan status and asset values such as nuclear decommissioning funds 1, 1.

Timeline Risks:
- Failure to proceed with projects under development or inability to complete construction of facilities on schedule or within budget due to risks in siting, planning, financing, permitting, governmental approvals, or supply chain disruptions.
- Delays or cancellations of infrastructure projects due to prolonged periods of low gas and oil prices.
- Risks from severe weather, natural disasters, or other catastrophic events causing project delays or operational disruptions.
- The need for continuous compliance with regulatory, environmental, and cultural resource requirements, as highlighted by instances such as notices of noncompliance and required corrective measures before construction can proceed 2, 1.

These risks collectively highlight challenges in cost recovery, regulatory compliance, funding, market conditions, and timely project completion.

The primary stakeholders involved in the Oliver Wind IV wind project and associated 345-kV transmission line (cases PU-23-317 and PU-23-318) include:

- Oliver Wind IV, LLC (the project proponent)
- North Dakota Public Service Commission (PSC, the regulatory authority)
- Advocacy staff of the PSC (oversight and enforcement)
- North Dakota State Historical Preservation Officer (NDSHPO)
- State Historical Society of North Dakota (SHSND)
- Participating Native American tribes and their Tribal Historic Preservation Officers (THPO) – specifically, the Standing Rock Sioux Tribe and the Spirit Lake Tribe
- Local county governments (Oliver and Mercer counties)
- Laborers District Council of Minnesota and North Dakota (LIUNA, intervenor)
- Local community members, landowners, and businesses
- Great River Energy, Basin Electric Power Cooperative (utility correspondents)
- Contractors (e.g., Blattner, Brink Constructors)

Stakeholder positions:
- Oliver Wind IV supports the project as the developer and has worked to secure permits and address compliance issues.
- The PSC acts as the neutral regulator, responsible for reviewing, approving, and enforcing compliance with permits.
- Advocacy staff of the PSC raised concerns and found Oliver Wind IV noncompliant regarding cultural resource protection, leading to a $50,000 consent agreement penalty, but ultimately agreed to a settlement rather than prolonged litigation 1, 2.
- NDSHPO and SHSND were concerned about cultural and archaeological impacts, recommended corrective measures (such as additional monitoring and avoidance fencing), and agreed that construction could resume if these measures were followed 3, 1, 2.
- Tribal Historic Preservation Officers participated in site visits and recommended mitigation for cultural incursions.
- LIUNA petitioned to intervene but the excerpts do not state if it was for or against the proposal; it was granted intervenor status 4.
- Local governments issued conditional use permits, suggesting at least procedural support, and no conflicts with existing development plans were anticipated 5, 6.
- Local community members and landowners include both participants (receiving payments) and potentially impacted parties; economic benefits are highlighted, but specific opposition is not detailed in the excerpts 7.
- Contractors are engaged by Oliver Wind IV to carry out construction; their compliance with protocols is enforced by Oliver Wind IV.

No excerpts directly identify any stakeholder as being explicitly opposed to the project in these dockets; most opposition or concerns raised relate to compliance with conditions, especially regarding cultural resources, rather than fundamental opposition to the project itself.

The areas of growth identified in this docket include:

1. Renewable Energy Expansion
- The renewable energy market is expected to grow at roughly 15% per year through the next decade, with wind and solar potentially increasing their share of the U.S. generation mix from less than 13% in 2021 to about 60% in 2035.
- There is an opportunity to build approximately 3,600 GW (or more than 100 GW per year) of renewables plus storage through 2050, representing a $4 trillion investment opportunity. Key considerations include technology improvements, cost declines, and the impact of federal tax policy on project economics 1.

2. Decarbonization and Clean Energy Solutions
- NextEra Energy's leadership in decarbonizing the power sector is highlighted, with a focus on the deployment of wind, solar, and battery energy storage projects. From 2022–2025, NextEra expects to construct 28–37 GW of long-term contracted renewables.
- Decarbonizing the electricity sector is also linked to creating green hydrogen for further decarbonization of other sectors. Key considerations include operational capabilities, customer solutions, and leveraging competitive advantages in project development 1.

3. Grid Resilience and Technological Innovation
- Significant investments are being made in building a resilient and reliable energy grid, including hardening/undergrounding power lines and deploying smart grid and battery storage technologies.
- Key considerations are system reliability, integration of new technologies, cost-effectiveness, and the ability to withstand and recover from severe weather events heightened by climate change 1, 1.

4. Environmental and Land Use Management
- Growth in wind projects involves careful siting to avoid exclusion areas (e.g., proximity to roads, property lines, and inhabited residences), minimize impacts to wetlands and historical/archeological sites, and preserve unbroken grasslands.
- Key considerations include regulatory compliance (conditional use permits, state and local criteria), minimizing environmental impacts, and working with landowners to reduce disruption to agricultural activities 2, 3, 4.

5. Workforce Development and Community Engagement
- Partnerships with educational institutions to advance research and training in renewable energy technologies, supporting workforce needs for the expanding renewables sector.
- Key considerations include multidisciplinary training programs, community collaboration, and development of talent pipelines for renewable energy projects 1.

In summary, the docket identifies substantial growth in renewables deployment, grid modernization, environmental stewardship, and workforce development as critical areas, with core considerations centered on technology, regulatory compliance, environmental impact minimization, cost, system reliability, and community benefits.

Key events and scheduled submissions in this proceeding include:

- September 28, 2023: Oliver Wind IV, LLC filed applications for a certificate of site compatibility (for the wind energy center) and for a certificate of corridor compatibility and a route permit (for the transmission line) 1.
- October 2023: Anticipated completion of right-of-way acquisition 2.
- November 27, 2023: Oliver Wind IV, LLC filed an application for waivers of procedures and time schedules 1.
- January 11, 2024: Laborers District Council of Minnesota and North Dakota (LIUNA) filed a petition to intervene 3, 4.
- January 22, 2024: Administrative Law Judge Dawson issued an order granting LIUNA’s petition to intervene 3, 4.
- January 29, 2024: Public hearing on the applications held in Center, ND; exhibits 1–21 entered into the record 3, 4.
- January 29, 2024, 4:17 p.m.: The hearing for cases PU-23-317 and PU-23-318 was closed, leaving the record open for late-filed exhibits and findings of fact, conclusions of law, and possibly a posthearing brief 5, 5, 6.
- February 6, 2024: Late-filed exhibit 23 submitted by Oliver Wind IV 3, 4.
- February 23, 2024: Late-filed exhibits 24–26 submitted by Oliver Wind IV 3, 4.
- Three weeks after the hearing (late February 2024): Deadline set for submission of proposed findings of fact, conclusions of law, and order 5, 5, 6.
- March 2024: Anticipated dates for obtaining the certificate of corridor compatibility and the route permit 2.
- May 2024: Anticipated start of construction 2.

These milestones document the progress of the proceeding, including key filings, interventions, the public hearing, and scheduled project steps.