RICHMOND — A State Corporation Commission (SCC) hearing examiner recommends approval of an experimental underground construction of a 230-kilovolt transmission line in Stafford County. Dominion Virginia Power (DVP) seeks to construct and operate a five-mile line between Aquia Harbor and a proposed substation near Garrisonville.

In a report filed on December 12, 2007, Hearing Examiner Michael D. Thomas found that the construction of the new transmission line on a company-owned right-of-way is necessary to maintain long-term reliability and to serve the rapidly growing demand for electricity in the Garrisonville area. The report serves as a recommendation to the Commission, which makes the final decision.

Thomas observes that the vast majority of residents of Stafford County understand the need for a new transmission line. However, they prefer that the line be placed underground. He states that the only real question for the Commission is whether the new transmission line should be constructed overhead or underground.

The report notes that there is a sizeable cost differential between the overhead alternative at $14.16 million and an underground option at $82.3 million. Thomas recommends the Stafford project as a pilot program to assess the average cost per mile for the installation of XLPE underground cable and gain operational reliability and maintenance experience with such a line. The lessons learned from a pilot program potentially benefit all rate payers.

Thomas also recommends the SCC should conduct a study of the impact of overhead transmission lines on real estate values and develop a methodology for use in Commission cases by which any impact could be analyzed and valued.

The Commission will rely on the hearing examiner’s report and the case record to issue a final order. The Commissioners may accept, modify, or reject the examiner’s recommendations.

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Case Number PUE-2006-00091