Matanuska Electric Ass'n v. Municipality of Anchorage

184 P.3d 19, 2008 Alas. LEXIS 78, 2008 WL 2152062
CourtAlaska Supreme Court
DecidedMay 23, 2008
DocketS-12568
StatusPublished
Cited by3 cases

This text of 184 P.3d 19 (Matanuska Electric Ass'n v. Municipality of Anchorage) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matanuska Electric Ass'n v. Municipality of Anchorage, 184 P.3d 19, 2008 Alas. LEXIS 78, 2008 WL 2152062 (Ala. 2008).

Opinion

OPINION

FABE, Chief Justice.

I. INTRODUCTION

Matanuska Electric Association, Inc. (MEA) appeals a ruling from the Regulatory Commission of Alaska. MEA contends that the Commission acted outside its jurisdiction when it ordered MEA to continue operating its transmission line at a voltage that exceeds the line's designed maximum, and that the Commission committed reversible error when it denied MEA permission to cross-examine a witness. Because substantial evidence aside from the challenged testimony supports the Commission's decision, we affirm.

II. FACTS AND PROCEEDINGS

This appeal concerns twenty miles of transmission line (the Line) owned and operated by MEA. The Line runs northward from a location outside of Wasilla to MEA's Douglas Substation in the community of Willow. It functions as part of the Alaska Inter- *21 tie, most of which was constructed with state funds by the Alaska Energy Authority (the Authority) 1 in the early 1980s to provide a means of transmitting energy from a planned hydroelectric facility, the Susitna project, to northern and southern electric utilities. The Susitna project never came to pass, but the Intertie continues to serve an important role as the exclusive link between electric utilities from Fairbanks to the Kenai Peninsula.

The Authority incorporated the Line into the Intertie in order to speed construction, minimize costs, and avoid duplicating facilities. The Authority entered into a Transmission Services Agreement with MEA on December 18, 1986. Under that agreement, MEA retains ownership of the Line; but the Line operates as part of the Intertie under the control of the Intertie Operating Committee.

The Transmission Services Agreement contemplates an operational voltage of 138 kilovolts (KV) for the Line. This voltage equals that of adjoining sections of the Inter-tie. Unlike those facilities, however, the Line was designed to be energized at only 115kV. MEA maintains that "conversion of [the Line] to 138kV operation was always intended as a temporary situation." Nevertheless, 188kV has remained the operational voltage for the Line since the Authority entered into the Transmission Services Agreement with MEA in 1986. The Authority and MEA set the Transmission Services Agreement to expire on July 1, 2004. On May 9, 2003, MEA General Manager Wayne Carmo-ny wrote to notify the Authority of MEA's intent to discontinue the parties' arrangement. He cited MEA's need for "the flexibility of operating [the Line] in the manner of our choosing, in either a single or double cireuit configuration." He did not mention concerns about safety hazards or performance failures linked to energizing the Line at 138kV. MEA maintains, however, that its "decision to terminate the [Transmission Services Agreement] was motivated by its desire to return [the Line] to 115kV operation in order to minimize the costly operational impacts which had arisen during the term of the [Transmission Services Agreement]."

MEA invited the Authority to negotiate a new agreement, but the two sides failed to reach an accord. MEA also attempted to strike separate bargains with the individual utilities that wheel power across the Line, but these efforts failed to advance beyond the initial stages of talks. 2

On October 30, 2008, the "Intertie Participants," a collection of utilities 3 that distribute electricity across the Intertie and the Line, applied to the Commission for continued joint use of the Line. Pending proceedings before the Commission, MEA agreed to allow the Intertie Participants to continue using the Line under similar terms until December 81, 2004. The Commission requested that the parties pre-file testimony and held a two-day hearing beginning on October 28, 2004. The Intertie Participants presented testimony from two Golden Valley officers and a consultant. MEA presented the testimony of three of its officers as well as that of its own consultant.

Much of the evidence before the Commission concerned whether the Line could operate at 188kV in a safe and reliable manner. The Commission noted that some thirty flashover outages had occurred along the Line after it began operating at the higher voltage in 1986. The parties disputed the significance and cause of these outages, with MEA asserting that conversion of the Line to 138kV had rendered the Line unreliable and dangerous. The parties disagreed whether the voltage differential posed a safety threat. 4

*22 The parties presented the testimony of several witnesses to the Commission, with that of Golden Valley officer Steven Haagen-son bearing particular relevance to this appeal. Like the other witnesses, Haagenson was made available for cross-examination during the hearing, but MEA indicated that it had no questions for him. The two commissioners in attendance followed suit, also declining to ask Haagenson any questions. The next day, however, Chairman Giard recalled Haagenson to the stand and solicited information about the costs of reverting the Line to 115kV. Haagenson testified as to the construction expense and downtime asso-clated with installing a transformer.

At the conclusion of that testimony, MEA's counsel requested permission to cross-examine Haagenson. The hearing examiner denied MEA's request, explaining: "ordinarily I only allow examination for any questions that exceed the scope of your [earlier cross] examination and since there was none I don't really have a whole lot of options there." Counsel for MEA responded, "All right." MEA made no representation or offer of proof at the hearing regarding the testimony it proposed to elicit on cross-examination. But on appeal MEA alleges that its cross-examination would have demonstrated that reverting the Line to 115kV would require at most two hours of downtime, not the six months to a year that Haagenson indicated in his testimony.

The Commission ruled that the Line should continue operating at 188kV, reasoning that evidence presented on three design parameters, which vary according to a transmission line's voltage level-ground clearance, insulation, and phase spacing-failed to demonstrate significant safety or operational hazards.

First, the Commission noted that the Line's ground clearance conformed to standards set under the National Electrical Safety Code for 115kV transmission lines constructed over cultivated fields. This means that MEA maintains its transmission line at least 20.2 feet above the ground, ostensibly to accommodate farm machinery that may cross beneath the Line. By way of comparison, a 138kV transmission line must clear cultivated fields by 20.4 feet. The Commission deemed this height differential to be de minimis, and further noted that "[tlhere are no cultivated fields under [the Line,] therefore, the ground clearance should be more than adequate to accommodate the increased voltage on the [Liline."

The alleged inadequacy of the insulation and phase spacing along the Line similarly failed to impress the Commission.

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Related

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Bluebook (online)
184 P.3d 19, 2008 Alas. LEXIS 78, 2008 WL 2152062, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matanuska-electric-assn-v-municipality-of-anchorage-alaska-2008.