City of Alexandria, Virginia

MEMORANDUM

DATE: MARCH 12,2019

TO:

SUBJECT:

YON LAMBER1I~ SERVICES ~

DOMINION ENERG 230kV UPDATE

THROUGH:

FROM:

This memo provides an update on the Dominion Energy 230kV line project. As expected, Dominion is proceeding with its intended (as of September 2018) course of action to forego its long-planned 230kV underground transmission line project under Potomac Avenue.

As indicated to City Council in September (see Attachment 1), the utility will instead rebuild transmission facilities in Prince William County to satisfy the identified reliability concerns. Dominion also still intends to remove the temporary North Potomac Yard transfer station and underground the existing overhead transmission lines and support towers under Four Mile Run. The Possum Point 2nd 500-230kV transformer in Prince William and North Potomac Yard projects will each have a distinct Certificate of Public Convenience and Necessity (CPCN) application filing with the Virginia State Corporation Commission (SCC). Dominion Energy intends to submit the North Potomac Yard project to the SCC in March 2019. This memo provides a status update and indicates the City's intent to participate in the SCC process.

BACKGROUND: In 2014 Dominion Energy began considering a transmission project to address forecasted capacity overload in the Alexandria-Arlington area. Most, hut not all, alternatives focused on Dominion building a high voltage (230 kilovolts or "230kV") underground transmission line from the former NRG Potomac River Generation site in North Old Town to the existing Glebe Road substation on Four Mile Run in South Arlington. The project also planned to remove a temporary Dominion transfer station in the North Potomac Yard Retail Center and underground the elevated transmission lines and support towers across Four

. Mile Run.

In September 2018 Dominion told Council that, due to changes in regional electricity forecasts, it no longer planned to build the new line and will instead rebuild other transmission facilities to address the forecasted capacity overload. The utility, however, still plans to underground the elevated transmission lines and support towers that currently cross Four Mile Run. This would

also allow it to comply with City SUP conditions that require removal of the North Potomac Yard transfer station by 2021.

On January 30,2019, Dominion representatives met with City staff to provide an update and present its initial concept to remove the North Potomac Yard transfer station, remediate the site and seek easements for the new underground alignment associated with removal of the transfer station. The revised alignment is shown on the attached plan sheet (Attachment 2).

DISCUSSION: Dominion currently intends to submit its proposed alignment (Attachment 2) to the State Corporation Commission (SCC) by March 7,2019. Because the proposal includes no impacts in Alexandria except those in North Potomac Yard (which are consistent with the North Potomac Yard Small Area Plan, reflects the City's long-planned goal for removal of the temporary transfer station and include an approximately $58 million effort to underground the lines/towers in Four Mile Run), City staff has verbally indicated to Dominion support for the rebuild alternative as outlined. This will be reflected in Dominion's initial filing to the SCC.

However, there are several outstanding issues which will require resolution and Council action in coming years. First, Dominion's current scope intends to connect the existing 230kV line underneath the sidewalk and trail on the east side of Richmond Highway to the northwest - across and underneath Richmond Highway, under Four Mile Run and connecting to the Glebe Substation in Arlington. This will require negotiation with the private property owner in North Potomac Yard for an easement to construct a drilling pit to be used for construction. Dominion intends to micro-tunnel (at a depth of 40-50 feet) a 1,200-foot tunnel from North Potomac Yard to the Glebe Substation for the transmission line connection. The current plan projects minimal impacts to vehicular and pedestrian traffic during construction but the utility expects a construction duration of 30 to 36 months. Dominion will also need to obtain easements from the City and other property owners if the project is approved by the SCC. One significant benefit to the City will be that Dominion intends to vacate its existing North Potomac Yard transfer station easement, which will result in a net benefit to the City. The North Potomac Yard Small Area Plan shows open space in the proposed location of the underground lines on the east side of Richmond Highway (Attachment 3). Staff from Planning and Zoning and Recreation, Parks and Cultural Activities are currently reviewing the proposed plans.

In consideration of the SCC process, staff from the City Attorney's Office and Energy Management will participate and intend to update City Council, including a future recommendation on the City's course of action in the process.

FISCAL IMPACT: T &ES maintains a prior year balance of $50,000 intended to support technical and legal services associated with the project. There are no additional fiscal impacts currently anticipated.

ATTACHMENTS: 1 2018 Notification by Dominion Energy on 230kV plans 2 Plan Sheets for Current Project Scope in North Potomac Yard 3 North Potomac Yard Small Area Plan graphics in vicinity of proposed 230kV facilities

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cc: Joanna Anderson, City Attorney Emily A. Baker, Deputy City Manager Laura Triggs, Deputy City Manager James Spengler, Director, Recreation, Parks and Cultural Activities Karl Moritz, Director, Planning & Zoning Heather Diez, Deputy Director, T &ES Karen Snow, Assistant City Attorney Bill Eger, Energy Manager

3

Attachment 1

City of Alexandria, Virginia

MEMORANDUM

DATE: SEPTEMBER 21, 2018

TO: THE HONORABLE MAYOR AND MEM~F CITY COUNCIL

MARK B. JINKS, CITY MANAGER '" ~ .

NOTIFICATION BY DOMINION E~Y OF CHANGES IN DOMINION'S 230KVPLANS

FROM:

SUBJECT:

This morning, the City received the attached information from Dominion Energy that included significant changes in the utility's planned 230kV underground transmission line in Alexandria.

A letter and presentation, which are attached, indicate that Dominion intends to drop the proposed new connection and will not, at this time, build a new line under Potomac A venue or reconstruct the existing 230kV lines under Route One.

The City has been working closely with Dominion since 2014 on the utility's proposal for a new line from the existing Glebe Substation in Arlington County to Pepco's existing Potomac River Substation in north Old Town. Dominion has regularly cited multiple electric reliability studies that determined the existing transmission facilities in the City and Arlington County would no longer adequately meet demand and mandatory North American Electric Reliability Corporation (NERC) reliability criteria. Dominion initially proposed nine potential alignments for a transmission line and requested that the City identify an alternative that it could support as part of Dominion's planned submission to the State Corporation Commission (SCC), which is the public entity charged with approving transmission line proposals in Virginia.

In May, City Council adopted a proposal that would have allowed Dominion to run the line under Potomac Avenue if the SCC approved the project and if Dominion was able to substantiate a need for the work. The agreement would have provided the City with financial compensation for impacts to City-owned right-of-way.

Today's information is a result of recent analysis performed by Dominion in consultation with PJM, the regional transmission organization that coordinates the movement of wholesale electricity in the Mid Atlantic. Because the analyses includes information on critical energy infrastructure, it is not public for the City Government and its residents to review; and Dominion

. did not provide the attached findings to the City until today. .

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ATTACHMENTS

Since Dominion will no longer pursue the perpetual easement needed for the Potomac Avenue underground line, compensation will not be part of a planned future see filing. City Council eliminated the Tier II Tax District in Potomac Yard contingent on receiving at least $14.6 million from Dominion. Given that compensation will no longer occur, staff intends to review options and to provide a recommendation to City Council by the end of this calendar year.

Finally, in its letter, Dominion indicated that itintends to proceed with relocation of the Potomac Yard north substation and a rebuild of the Glebe Substation. The utility targets a sec filing in either the first or second quarters of 20 19. Staff will continue to coordinate with Dominion as more specifics come available and will report back to both Council and community.

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Dominion Energy Virginia Dominion Energy North Carolina Electric Transmission 701 East Cary Street, Richmond, VA 23219 Dorninloncnerqv.corn

Transmission Project Preferred Proposal Changes to Rebuild Solution, No Construction Required Along Route 1 in Alexandria

September 21,2018

Mr. Mark Jinks, City Manager City of Alexandria 301 King Sf. Alexandria, VA 22314

Dear Mr. Jinks,

As you are aware, over the last four years, our team at Dominion Energy has worked to address a forecasted reliability concern in the Alexandria-Arlington area. During this time, we have analyzed a number of options that would resolve forecasted load concerns, minimize disruption to neighbors and mitigate impacts within the city. I wanted to inform you of some significant changes to the scope of this project.

In our last letter in December, We shared that our two most viable alternatives to address the identified North American Electric Reliability Corporation (NERC) reliability violations were the New Line Solution and the Rebuild Solution. The New Line Solution involved constructing a new underground line between our Glebe Substation in south Arlington County and Pepco's Potomac River Substation in Alexandria. At that time, the Rebuild Solution was comprised of multiple components, including rebuilding and replacing existing underground cable in the city of Alexandria along Route 1 and existing overhead lines in FairfaxCounty, combined with substation upgrades in the county. Both solutions included the relocation of the Potomac Yards North Transition Station and a rebuild of the Glebe Substation in Arlington. While the New Line Solution at the time was projected to cost approximately $50 million more than the Rebuild Solution, we felt, and Pepco and PJM agreed, that the new line offered the most resilient solution for the challenges known at the time.

In July, we received an updated base case study from PJM, our regional transmission organization, on load projections through 2023. The study gives a fresh look at energy needs in the region and across the grid_ This updated study revealed several changes to our electrical planning horizon - removing the need for certain work and shifting other work out in some cases by potentially 15 years.

One key factor in the update from PJM is the effect of generation changes. In particular, Dominion J:,nergy Generation's announcement in January that Possum Point Generating Units 3 and 4 would be placed into cold storage had multiple impacts on the system load forecast, including increasing the overload at Ox Substation in Fairfax County and entirely eliminating the

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i~ 'Bob McGuire Director, Electric Transmission Project Development & Execution Dorninlon Energy EI.ectric Transmission

cc: Steve Chafin, Director, ElectricTransmission Planning &·Strategic Initiatiyes 'Wes Keck, Project Manager Deborah Tompkins Johnson, Regional Policy Director Scott Reamy, External Affairs Manager Dave Weaver, Exelon Utilities, VP Transmission Stra~ergy Steve Herling, PJM, VP Planning

September 21",2018 Transmission Project Preferred Proposal Changes to RebiJild Solution Page 2 .

need for the replacement.of underground ·cables along Route 1 in Alexandria, both of which were components of the 0_ri91n_al Re.bulJd Solution.

In addlnon to changing the scope of the alternatives, these load changes significantly impacted the cost of each solution. Specifically, the estimated cost of the RebL!i/(fSolufion decreased. from approximately $290 million to approximately $170 rnllllon. Alternately, the total estimated cost for the New Line -Solution Is approximately $340 million.

Following these changes. PJM, Pepeo and our team concur that we can no longer advocate for the New Une Sofutiol] as the. preferred alternative in our planned fiUng with the Virginia -S1ate Corporation Commission, because the cost difference· between solutioris are unjustifiable,

We feel confident at this time, based oil the information before us today, that the revised scope of project will adequately address the NERC reliability violations identified, even if large new development comes to the. Alexandria-Arlington area'. However, we will continue to monitor' and consider any new development plans and resiliency needstnet may impact power delivery requirements in .this area.

Our plan going· forward is to complete detailed engineering on components of the current Rebuild. Solution and present to PJM again. Once this work is completed, we will communicate !he final scope and new sec filing date(s). We appreciate your collaboration on this project, and we wiII.keep 'you and other stakeholders informed as we work to provide reliable energy in this' region and throughout our service -area.

• As we discussed in May 2018, there were a number forecasted violations of Federal (NERC) Reliability Standards. • Supported by PJM's 2018 Load Forecast

• Two electric solutions were presented to resolve the violations. • New Line Solution (Glebe-Potomac River UG 230 kV Line); and, • Rebuild Alternative, which entailed, among other things, rebuilding

existing 230 kV lines under Route 1 and the relocation on the North Potomac Yard Terminal Station.

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• . PJM published its 2018 Power Flow Model on July • Complex model used to evaluate the reliability of the entire PJM (13 states and

DC) electric transmission system - on a component-by-component basis. • PJM Load Forecast is just one component of this complex model.

• Dominion Energy re-evaluated the NERC Reliability violations at issue here using the final 2018 Power Flow Model, This evaluation showed:

• Violations related to transformers at Ox Substation continued. • No violations on the transmission lines that run under Route 1. • No overhead line violations in Fairfax County. • The primary reason for this was the recently announced cold reserve status of

generating units at Possum Point Power Station. • As a result, the scope of the "Rebuild Alternative" is now limited to addressing the

transformer issue at Ox Substation.

3

Rebuild Alternative is now the preferred option

Project Total

Glebe - Potomac River 230 KV Line • New Potomac Ave 230 kV Line • Glebe Rebuild • North Potomac Yard Relocation (OH

to UG) Rebuild Alternative • Occoquan Expansion • Glebe Rebuild • North Potomac Yard Relocation (OH

to UG)

$340M

$170M

4

Alexandria-Arlington Load Area to benefit from both projects

• Two separate geographically and electrically unrelated projects.

Glebe Substation Rebuild/North Potomac Yard Terminal Station Relocation (OH to UG)

Aging Infrastructure • Expiring City SUP (Jan. 1, 2021)

• Ox Substation transformer overload Project • N ERC violation

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. I

• Based on the curren JM Loa Model results, updated line rating evaluatio into UG line cooling technologies we do not anticipate a need to rebuild the UG lines under Route 1 in the near future, or need a new line along the Potomac Avenue Route*

• This does not include work related to those lines for, among other things: . • Regular inspections and maintenance; • Repairs; or' • Installation of cooling technology

*We reiterate here that the evaluation for the need for new electric transmission infrastructure is an ongoing process; and thus, subject to change. As always, we will provide the City with any changes as soon as possible.

Glebe Substation Rebuild/North Potomac Yards Relocation (OH to UG) Project • 2019 Q1/Q2 - File CPCN Application

7

Questions?

8

Easement Map - N. Potomac Yards Terminal Station

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Property Map - N. Potomac Yards Terminal Station £XISTtN~ GI..t:BE

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H. Open Space

Regional Context

The Plan area is located

within a regional system

of public parks, trails, and

open spaces including

parks and open spaces

in South Potomac Yard/

Potomac Greens, Four Mile

Run, pocket parks, and

recreational fields west

of Route 1, Potomac Yard

- Arlington, the George

Washington Parkway, and

Daingerfield Island.

The locations of open

spaces within North

Potomac Yard provide an

opportunity to connect

existing and future

residents, workers, and

visitors to the larger

regional system of spaces,

while also providing a

variety of open space types

with the Plan area within a

5-minute walkshed.

Existing Open Space

Planned Open Space - North Potomac Yard Open Space

Attachment 3

ARLINGTON

ALEXANDRIA , \

~I \ \ \ \

\ I \ I I I , ,

I

AT L RK

M U VERNCJI R nON CE

Figure 4.7: Local and Regional Open Space Network

44 CHAPTER 4: LAND USE NORTH POTOMAC YARD SMALL AREA PLAN

fOU"MURUN

Public Park I I

Public Access Easement

I~ Pedestrian Connection

Market Green (TBD)

Figure 4.8: Plan Area Public and Private Parks with Public Access Easement

\

North Potomac Yard Open Spaces

The Plan recommends a comprehensive network of

open spaces that provide a variety of experiences,

serve to define the neighborhoods in which they are

located, and provide connections to local and regional

open spaces systems and trails (Figure 4.8). More than

9 acres of new public parks and open spaces will be

added to the open space network. The open spaces

will have a focus on active, social, civic, or passive

activity, but many will include flexibility for more than

one activity. Open spaces will integrate historical

interpretive elements, public art, and improve the

City's urban tree canopy. Park design will include

consideration for shade. Figure 4.9 depicts the activity

focus for each open space.

Active open spaces: These spaces can include sports, exercise, or active play; can be recreational facilities

such as playgrounds, playing fields, flexible fields

spaces, courts, multi-purpose areas, and dog parks; or

can include areas for large events and intense activity/

programming.

Social open spaces: These spaces are designed and used for impromptu and organized gatherings and

can include game elements, seating areas, community

gardens, farmer's markets, and small event spaces.

Passive open spaces: These spaces can be used for relaxation, such as sitting or strolling and can include

trails, picnic areas, and open areas.

Civic spaces: These spaces include plaza and event areas.

NORTH POTOMAC YARD SMALL AREA PLAN CHAPTER 4: LAND USE 45

I ~ •

I I

EAST GLEBE ItOAD I

Figure 4.9: Open Space Activity Focus Areas

LEGEND:

_ Passive

_ Active

_ Passive I Social

Active I Passive

Social Shared Space

••• Civic I Social

A minimum of 15% of North Potomac Yard is required

to be provided as ground level open space, with an

additional 25% open space required to be provided at

either ground level and/or on roof-tops. Blocks 2, 3, 5

and 21 will be required to provide ground level open

space due to the required underground parking.

i

j i

I I

Open spaces and plazas are vital to the area's quality

of life, helping to foster social interactions and

establishing a sense of community for this area. As the

population and densities within the Plan area increase,

open space will become an increasingly important

neighborhood amenity. Not only is there a need to

increase the amount of open space, but also the type

of space. Different users-from office workers, to

attendees of special events, to residents walking with

dogs or playing with their children-require unique open space facilities.

46 CHAPTER 4: LAND USE NORTH POTOMAC YARD SMALL AREA PLAN

Four Mile Run North Potomac Yard is bordered on the north by

Landbay E (Four Mile Run Park) and Four Mile Run, a

heavily urbanized flood control channel that is planned

for restoration. The Four Mile Run Restoration Master

Plan (FMRMP) was adopted to be a model of urban

ecological restoration. Through the sensitive and

sustainable integration of natural areas with active

urban nodes, the FMRMP proposes that the corridor be

a place along which the communities of Arlington and

Alexandria can gather, recreate, and celebrate a shared

waterfront. The FMRMP identifies Potomac Yard as "a

vibrant urban node that is home to thousands of new

residents and workers while offering terrific shopping.

On nice days, it's great to relax on the terraced banks

that lead down to the water, on benches along the

stream, or in the elevated park:'

The Plan builds on the FMRMP: it requires Crescent Park

and improvements next to Four Mile Run (including

the Four Mile Run Promenade), which are intended

to provide a wide range of opportunities, both active

and passive, and include opportunities for a gathering

and event space. The planned removal of the Potomac

Yard terminal station and associated poles will provide

opportunities to enhance this adjacent open space

consistent with the FMRMP.

Figure 4.1 0 depicts a conceptual rendering of Four

Mile Run along North Potomac Yard. Together, through

the FMRMP and the Plan, amenities will be provided

on both sides of Four Mile Run and on the existing

approximately 1-acre pedestrian bridge, which will

connect to Crescent Park and Potomac Yard Park

beyond, providing a series of spaces for a variety of

interests which celebrate the connection to the water

and natural environment.

Figure 4.10: Conceptual rendering of Four Mile Run Urban Deck

NORTH POTOMAC YARD SMALL AREA PLAN CHAPTER 4: LAND USE 47

Figure 7.2: Existing Terminal Station to be Removed

D. Solid Waste Management

In compliance with the City's Eco-City Charter, the developer will prepare a solid waste management plan for handling and disposal of solid wastes in an environmentally sustainable manner, which will include a hierarchy of uses: Reduce, Reuse, Recycle Resource Recovery, and Proper Disposal. The Plan shall develop a program to recycle the construction and demolition debris and materials that can be converted into valuable resources that would otherwise become waste.

F. Dominion Virginia Power (DVP) Proposed 230-KV Transmission Line

Dominion Virginia Power's project will add and upgrade equipment at the existing switching station on E. Abingdon Drive in Alexandria and connect to the Glebe Substation on S. Glebe Road in Arlington. DVP's 230-KVTransmission Line could be located underground within the northern portion of the Plan area and potentially under a segment of Potomac Yard Park, Four Mile Run Park, and the future Crescent Park. As part of DVP's project, the existing terminal station along the southern bank of Four Mile Run will be removed, consistent with the Four Mile Run Master Plan. The Plan recommends that the final alignment of the transmission line minimize impacts to the planned open space, programming, and improvements within North Potomac Yard and Four Mile Run.

100 - ~HAPTER 7: INFR;S~RUC~~~ -: - - - NORTH POTOM~C ~A~~~M~LL AREA-~:AN --- -I ,

~ - ~

Infrastructure Recommendations

Storm water Management

7.1 A Water Management Master Plan (WMMP) is required as part of the CDD requirements. The WMMP will be updated/amended with each building and/or block to demonstrate compliance with each applicable phase.

7.2 Require use of pervious surfaces on sidewalks, driveways, parking areas, and streets to reduce generation of stormwater runoff and provide green infrastructure practices to reduce stormwater pollution.

7.3 Maximize use of rooftop space for other sustainability practices (for example, for open space, community gardens, green roofs, energy generation, etc).

7.4 Maximize on-site stormwater reduction and reuse techniques to reduce the impact on public stormwater infrastructure.

7.5 Remove impervious surfaces within RPAs and revegetate to restore function and quality.

7.6 Maximize exposure of stormwater management facilities as functional amenities to promote citizen awareness and understanding of stormwater quality issues, while providing community co-benefits through the use of green infrastructure.

7.7 Construct additional sanitary sewer conveyance infrastructure and address Potomac River and Chesapeake Bay nutrient treatment needs.

7.8 Use harvested rainwater to meet irrigation demand.

7.9 Research and evaluate other pioneering technologies to address the capacity needs.

Wastewater Management

7.10 Use water conservation measures to reduce the generation of municipal wastewater and explore reuse of greywater.

Solid Waste Management

7.11 Develop and launch an education program that will include a hierarchy of uses: Reduce, Reuse, Recycle, and Proper Disposal of hazardous wastes.

7.12 Develop a recycling program for commercial and multi-family buildings.

7.13 Develop a community recycling program.

Pump Station

7.14 A pump station and any associated infrastructure upgrades shall be constructed to accommodate the planned development within North Potomac Yard.

7.15 The facility shall be located on the northeastern portion of the Plan area as generally depicted in Figure 7.1.

7.16 The pump station will be designed with high quality materials and in a manner that ensures integration and compatibility with the design and programmed uses of the adjoining Potomac Yard Park. The facility should be located as close to the existing rail corridor as feasible to minimize impacts to the Potomac Yard Park. The design of the facility will require coordination between the City, developer, and AlexRenew and conducted as part of the Phase I development special use permit and design of Potomac Yard Park.

Dominion Virginia Power Proposed 230-KV Transmission Line

7.17 Any future power transmission lines will be undergrounded by DVP and located in a manner to minimize the impact on, and integrate with, the planned open space and infrastructure improvements within North Potomac Yard and Four Mile Run. As part of the construction of any additional transmission lines, the existing terminal station within Four Mile Run (Figure 7.2), will be removed by DVP.

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1 02 CHAPTER 7: INFRASTRUCTURE NORTH POTOMAC YARD SMALL AREA PLAN

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