PSC grants CPCN for Elm Road–Racine transmission project, approves Osgoode parcel route modification

The Public Service Commission on July 9 granted a certificate of public convenience and necessity to American Transmission Company for the Elm Road–Racine transmission project, approving the applicant's preferred route with an Osgoode parcel modification and a set of conditions designed to address environmental fees, archaeological evaluation and standard mitigation measures.

Commissioner Hawkins, who led the discussion, summarized the project as a primarily conversion to 345 kV between existing substations in Milwaukee and Racine counties with roughly 3.5 miles of new 345 kV line on new right-of-way. Hawkins said the applicant identified three primary need drivers—new large load interconnections, generator interconnections (16 identified in MISO planning studies), and inclusion in MISO's LRTP tranche 2.1—and concluded the record supports granting the CPCN under the statutory criteria in Wis. Stat. 196.491.

Hawkins walked commissioners through 13 decision issues: need and statutory criteria; public interest and alternatives; energy-priorities list (EPL) review; high-voltage benefits; competition; land-use compatibility; route selection; the Osgoode parcel route modification (a proposed partial rebuild and realignment to reduce impacts to a developing parcel); updated cost estimate; environmental impact fee cost-basis calculation and delegation to staff for a 30-day submission; standard order conditions; wetland and waterway mitigation; clarifications on tree-clearing avoidance and reporting; and archaeological protections for site RA-0351 under Wis. Stat. 44.36(2).

Hawkins said the Osgoode parcel option would add about $7 million to project cost but could be offset by shifting costs from a related, yet-to-be-filed project; with that modification the commission's updated project estimate was reported in discussion at approximately $63,000,000. Commissioners supported delegating the revised environmental-fee cost-basis calculation to the Division of Energy Regulation and Analysis administrator and directed ATC to work with staff to provide the necessary information within 30 days.

Commissioners noted concerns about applicants' alternatives analyses in general and urged ATC to consider more robust examinations of efficiency, demand response and advanced transmission technologies in future filings, referencing recent Federal Energy Regulatory Commission show-cause actions as a broader industry signal. Chair Strand emphasized expectations for applicants that commitments framed "to the extent practicable" must be demonstrably supported and said in-person project tours are helpful for staff and commissioners to understand on-the-ground impacts.

The commission approved a modified archaeological condition requiring ATC to evaluate site RA-0351 for historic-property criteria and, if the site meets those criteria, to consult with staff and SHIPO (State Historic Preservation Office) to mitigate adverse effects. The final motion to grant the CPCN in docket 137-CE-215 was seconded and approved unanimously.

Next steps: the commission's final order will include the specific conditions, delegated review language for the environmental fee calculation, and the archaeological condition; applicants and staff will implement the reporting and mitigation tasks identified in the order.