MINUTES OF YORK NEIGHBORHOOD ASSOCIATION

January 4, 1990 meeting

Wally Dunn, Vice-President, opened the meeting and explained the format of the special presentation by representatives of Puget Power and Neighbors Opposed to Power Encroachment (NOPE) regarding the proposed BC Hydro Intertie Project, which would result in additional power lines being run through the county and the neighborhood.

I. PUGET POWER PRESENTATION

Ray Tryznka from Puget Power (PP) spoke first. He explained how the project came about. In 1986, PP got involved with a least cost planning scenario, trying to determine how to deliver the amount of energy needed in the region for the least cost. PP used a "demand and resouce evaluation" or "DARE" approach, and incorporated 9 customer panels in the process. In 1987, the panels looked at the idea of least cost planning and DARE, and made recommendations as to how to deal with increased energy consumption. The recommendations included energy conservation and increased supply. In 1988, the panels took a look at the Bonneville Power Administration (BPA), which supplies PP with its power, to determine what BPA control means for PP and its area customers. 6 out of the 8 panels reocmmended pursuing alternatives to having BPA be the only power generator in the area, i.e. recommended investigating the possibility of PP purchasing power direct from BPA. In spring of 1988, they signed joint letters to pursue investigation, and, in late 1988, announced their intent to pursue an agreement with BC Hydro.

PP filed a "presidential permit" on May 31, 1989 to begin the presidential permit process of environmental review. BPA and NOPE have formally intervened in the review process, which will be conducted on both the state and federal levels. The first part of the review process is public comment. Public hearings will be conducted by the Federal Department of Energy (DOE) on January 29 at the Lynden High School Cafeteria, and on January 30 upstairs at the Nendels Inn in Bellingham. The hearings are a prelude to a fullblown EIS (environmental impact statement), and there will be several presentations by PP, NOPE, BPA and others. The DOE hopes to have a draft EIS finished by September 1990.

WRITTEN COMMENTS WILL BE ACCEPTED BY DOE UNTIL MARCH 5, 1990, those who are interested but unable to attend the meeting. The address will be furnished in the ads for the meeting.

The local permitting process probably will not begin until 1991.

John Campion, PP's project manager, spoke next. He showed overheads of the proposed route of the power line. There will be two lines coming from BC. The first will come into the Lincoln and Maple substation by the drive-in movie theater, and continue on to the Sedro-Wooley substation, to carry power on to the Seattle metropolitan area. The second line will come into the Carolina and Nevada substation. There are four stated reasons for the project:

Transmission deficiency in Whatcom County: Currently there are two connections to BPA in Whatcom County. If either of those connections fails, or one of BPA'a own connections fails, then PP lines can overload, which can cause local lines to drop their load.
Increased transfer capacity with BC: This is to supply King and Island Counties. BPA has submitted an alternative proposal which would solve No. 1., above, but would not help PP with regional demand problems. Another alternative is to do nothing, but neither BPA nor PP think this will work.
Least cost planning.
Consumer Panel recommendations.

PP evaluated five alternative routes. The estimated cost of the project is $19,500,000 (estimate may turn out to be low) -- S15 million for the transmission lines, $3.5 million for substation improvements, $1 million for a fiber optic line (to protect in the event of lightning or other interruption of the above-ground lines). Line construction is scheduled to begin in late 1992, to be finished by December 1993.

As to the impact on the neighborhood, PP says the existing line down Humboldt will stay the same. The transmission line will run on the east side of the freeway.

II. NOPE PRESENTATION

Bill Gorman from NOPE spoke next. He explained that NOPE was originally started by a group of county residents concerned about the effect the proposed lines would have on their property values. As the group got more sophisticated, it raised money and learned how to become formally involved in the review process. They also started doing research on the effects of the proposed lines:

Health impacts on those living, working or playing near electro-magnetic fields -- lots of new information out, especially this year.
Negative effect on property values and quality of life -- the lines will run down the Noon Road, considered by many to one of the prettiest corridors in the county, with views of the mountains, etc.
Failure of PP to adequately explore less intrusive alternatives such as conservation.

NOPE agrees with BPA and PP that some changes in the system are necessary due to growth in county. NOPE's position, however, is that the current proposal is unacceptable.

III. QUESTION AND ANSWER PERIOD

Why can't the power lines run underground? PP gave four reasons: cost ( $242 million, compared with $19.5 million for overhead lines), maintenance problems, would not significantly diminish EMF, and would cause other environmental concerns (e.g. cables would be insulated in oil, which could leak in ground).
Will there be any savings from the new line? Answer unclear.
What kind of generation facilities does BC Hydro have? No nuclear, mostly hydro.
What about the recent statement by Jack Davis, BC's Minister of Power, that Canada will stop sending power to the US in 1998, and that by the year 2000, Canada will be asking for its reserves back? Treaties between the US and Canada will indeed expire in 1998, and Canada can be expected to have sharp pencils when it comes to the table to renegotiate the treaties.
Will our increased demand encourage Canada to build more darns? Apparently so.
Will PP then be competing for power with BPA? Yes.
Could that competition cause a bidding war raising rates? Answer unclear.
Is PP's motivation for the Intertie Project to reap profits? PP says no. They are a regulated utility, which can only earn a set rate of return. Benefits will be passed on to consumers in the form of stable rates. PP then backtracked, and admitted that the absolute dollar figure of profits will increase, although the percentage rate of return is stable.
Is the current PP 9% rate increase to cover this project? No. The costs of the project cannot be passed on to the customer until it is put in the rate base, which cannot happen until the project is complete.
Why should Whatcom County residents support this project? The final answer turned out to be -- no reason. PP admitted that the BPA alternative eliminates the need for the new lines, in which case the new lines are primarily to benefit King and Island counties. There are not likely to be any rate-saving advantages.
What are possible adverse effects of electro-magnetic field radiation? There have been a number of studies on the issue, some of which have shown a link between living near power lines and increased rates of leukemia in children. Studies on both sides of the issue are disputed. Ray Tryzynka of PP offered to provide additional information.

After thanking the presenters, the meeting was adjourned.

[signed]

Lynn S. Torno, Secretary