Siting Certificate Application - Grant and Mineral Counties, West Virginia - Public Service Commission of West ...
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Siting Certificate
Application
Grant and Mineral Counties, West Virginia
May 10, 2019
Submitted to the
West Virginia Public Service Commission
201 Brooks Street
Charleston, West Virginia 25323
by
Black Rock Wind Force, LLC
100 California Street, Suite 400
San Francisco, California 94111
Building the future in wind in West Virginia…
Table of Contents
Introduction ......................................................................................................................................... 1
Early Support for the Project .................................................................................................... 2
In-State Power Purchase Agreement ...................................................................................... 2
Section 1 – Project Summary and Generating Facility Overview .................................................. 3
Project Purpose ....................................................................................................................... 4
Reasons for Site Selection ....................................................................................................... 4
Description of Proposed Facility .............................................................................................. 5
Required Government Approvals and/or Permits .................................................................... 5
Court Litigation Involving the Project ....................................................................................... 6
Project Schedule ...................................................................................................................... 7
Section 2 – Justification of Need ....................................................................................................... 9
Need for the Black Rock Project .............................................................................................. 11
PJM Coal and Nuclear Retirements............................................................................ 11
Corporate Demand for Renewables ........................................................................... 12
The Role of Exempt Wholesale Generators ............................................................................ 13
PJM Demand Forecasts........................................................................................................... 14
NERC Long-Term Reliability Assessment ............................................................................... 14
RFC Long-Term Resource Assessment .................................................................................. 15
An Energy-Independent West Virginia ..................................................................................... 15
Renewable Portfolio Standards ............................................................................................... 16
Section 3 – Description of Facility .................................................................................................... 17
Project Description ................................................................................................................... 19
Wind Turbine Generators ............................................................................................ 20
Access Roads ............................................................................................................. 20
Power Transmission.................................................................................................... 21
Operating Schedule .................................................................................................... 21
Potential Energy Produced ......................................................................................... 21
Total Land Area Requirement .................................................................................................. 21
Fuel Requirements ................................................................................................................... 21
Expected Air and Water Emissions .......................................................................................... 22
Water Requirement .................................................................................................................. 22
Other Major Equipment ............................................................................................................ 23
Operation Equipment .................................................................................................. 23
Construction Equipment .............................................................................................. 23
Safety Equipment ........................................................................................................ 24
Section 4 – Interconnection Studies ................................................................................................. 25
The Interconnection Request ................................................................................................... 27
i
The PJM Planning Process ...................................................................................................... 27
Interconnection Request ............................................................................................. 28
Studies ........................................................................................................................ 28
Status of the Interconnection Process for Black Rock ............................................................. 29
Interconnection Request ............................................................................................. 29
Feasibility Study .......................................................................................................... 29
System Impact Study .................................................................................................. 29
Facilities Study ............................................................................................................ 29
Section 5 – Proposed Project Schedule and Impact of Delays ...................................................... 31
Proposed Project Schedule ..................................................................................................... 33
Development Phase .................................................................................................... 33
Construction Phase ..................................................................................................... 34
Pre-operations Commissioning Phase........................................................................ 34
Operation Phase ......................................................................................................... 34
Impact of Delays ...................................................................................................................... 35
Section 6 – Technical Data ................................................................................................................. 37
Site information ........................................................................................................................ 38
Landforms ................................................................................................................... 38
Water Resources ........................................................................................................ 39
Vegetation ................................................................................................................... 39
Land Use .................................................................................................................................. 39
Siting Criteria ............................................................................................................................ 40
Initial Siting Phase....................................................................................................... 40
Detailed Siting Phase .................................................................................................. 41
Relative Importance of Siting Criteria ...................................................................................... 41
Application of the Siting Criteria for the Black Rock Project .................................................... 42
Qualitative Factors ................................................................................................................... 42
Site Selection Study ................................................................................................................. 42
Aerial Photograph .................................................................................................................... 43
Design and Construction .......................................................................................................... 44
Site Activities ............................................................................................................................ 44
Test Boring .................................................................................................................. 44
Removal of Vegetation ................................................................................................ 44
Grading and Drainage Provisions ............................................................................... 45
Access Roads ............................................................................................................. 45
Removal and Disposal of Debris ................................................................................. 47
Post Construction Reclamation ................................................................................... 47
Plans for Construction .............................................................................................................. 47
Structures ................................................................................................................................. 48
Wind Turbines ............................................................................................................. 49
Wind Turbine Foundations .......................................................................................... 50
Electric Collection System and Substation ................................................................. 50
ii
Transmission Line ....................................................................................................... 50
Auxiliary Facilities........................................................................................................ 50
Access Roads ............................................................................................................. 51
Security Facilities ........................................................................................................ 51
Future Plans ............................................................................................................................. 51
Equipment ................................................................................................................................ 52
Generating Equipment ................................................................................................ 52
Emission Control Equipment ....................................................................................... 52
Public Safety Equipment ............................................................................................. 52
Section 7 – Maps ................................................................................................................................. 53
5-Mile Radius Map ................................................................................................................... 55
Pre-Construction Map .............................................................................................................. 56
1-Mile Radius Map ................................................................................................................... 57
Section 8 – Impact ............................................................................................................................... 59
Impact on Utilities ..................................................................................................................... 61
Section 9 – Renderings of Project ..................................................................................................... 63
Project Visibility ........................................................................................................................ 64
Visual Impact Assessment .......................................................................................... 64
360°Simulation (demonstration) .................................................................................. 65
Shadow Flicker......................................................................................................................... 67
Lighting .................................................................................................................................... 68
Section 10 – Hydrology and Wind ..................................................................................................... 69
Hydrology ................................................................................................................................. 71
Water Budget ........................................................................................................................... 71
Flooding ................................................................................................................................... 72
Aquifer Maps ............................................................................................................................ 73
Potential Impact to Water Sources .......................................................................................... 74
Wind ......................................................................................................................................... 74
Section 11 – Financial and Economic Data ..................................................................................... 75
Financial and Economic Data .................................................................................................. 77
Debt and Equity Capital ........................................................................................................... 77
Pro Forma Financial Statements ............................................................................................. 78
Economic Impact...................................................................................................................... 78
Employment Impacts................................................................................................... 79
Taxes .......................................................................................................................... 79
Property Values ........................................................................................................... 79
Local Per Capita Income ............................................................................................. 80
iii
Economic Opportunity Cost ........................................................................................ 80
Regional Development Impact .................................................................................... 80
Tourism ....................................................................................................................... 80
Existing Infrastructure ................................................................................................. 81
Alternate Land Use ..................................................................................................... 81
Regional Development Impact ................................................................................................. 81
Housing ....................................................................................................................... 81
Commercial and Industrial Development .................................................................... 81
Transportation System Development.......................................................................... 82
Section 12 – Environmental Data ...................................................................................................... 83
Environmental Setting .............................................................................................................. 85
Topography ................................................................................................................. 85
Geology ....................................................................................................................... 86
Vegetation ................................................................................................................... 86
Wetlands and Streams ................................................................................................ 86
Rare, Threatened, and Endangered Species .......................................................................... 87
Plants .......................................................................................................................... 87
Animals ....................................................................................................................... 88
Avian and Bat Risk Assessment .............................................................................................. 90
Noise…. ................................................................................................................................... 91
Preconstruction ........................................................................................................... 91
Construction ................................................................................................................ 92
Operation .................................................................................................................... 93
Need for Mitigation ...................................................................................................... 95
Section 13 – Land Uses ...................................................................................................................... 97
Existing Land Uses .................................................................................................................. 99
Anticipated Impact.................................................................................................................... 99
Existing Structures ................................................................................................................... 99
Plans for Future Use ................................................................................................................ 99
Plans for Concurrent or Secondary Use .................................................................................. 100
Section 14 – Cultural Impact .............................................................................................................. 101
Cultural Impacts ....................................................................................................................... 103
Landmarks ............................................................................................................................... 103
Phase I Architectural Resources Study ...................................................................... 104
Phase I Archaeological Resources Study ................................................................... 105
Recreation Areas ..................................................................................................................... 106
Mitigation .................................................................................................................................. 106
Section 15 – Public Responsibility.................................................................................................... 108
Community Outreach ............................................................................................................... 109
Community Investment and Enrichment .................................................................................. 110
iv
Appendices
Appendix A PSC Filing Forms for Application
Appendix B Feasibility Study
Appendix C System Impact Study
Appendix D Gantt Chart
Appendix E Letters of Support
Appendix F FAA and NTIA Correspondence
Appendix G Aerial Photograph with 1-Mile Radius
Appendix H Plan View and Elevation View Drawings
Appendix I Project Maps
Appendix J Visual Impact Assessment
Appendix K Shadow Flicker Study
Appendix L Hydrology and Geology Map
Appendix M Pro Forma Financial Statement
Appendix N Economic Impact Study
Appendix O Wetlands Delineation Report
Appendix P Correspondence with WV DNR and US FWS
Appendix Q Affidavit on Wildlife Permits & Stantec Certification
Appendix R Habitat Assessment
Appendix S Wildlife Risk Assessment
Appendix T Wildlife Studies
Appendix U Acoustic Sound Study
Appendix V Traffic Impact Analysis
Appendix W Correspondence with WV SHPO
Appendix X Phase I Architectural Study
Appendix Y Phase 1 Archaeological Study
Appendix Z Brochure for Proposed Turbine
v
Introduction
Pursuant to West Virginia Code § 24-2-11(c), Black Rock Wind Force, LLC (“Black Rock”) respectfully
requests that the West Virginia Public Service Commission (the “Commission”) grant a Siting Certificate for
the construction and operation of a 170 MW wind energy generating facility and associated interconnection
and transmission facilities in Grant and Mineral Counties, West Virginia.
To date, Black Rock has conducted interconnection analyses and preliminary
engineering for a project capacity of 110 MW. However, the rapid pace of wind
turbine technological advancement and the potential for additional
interconnection capacity to become available on the PJM/FirstEnergy grid may
allow Black Rock to deploy a 170 MW wind facility utilizing the same 29
turbine locations included within this Siting Certificate application.
As described in Sections 3 and 5, the rated nameplate capacity
of each turbine could be between 3.6 and 5.8 MW, depending
on final turbine selection. In the event a 5.8 MW turbine is
selected, and Black Rock pursues an additional 60 MW of
interconnection capacity via a separate interconnection filing
with PJM, the project capacity would be 170 MW. In such a
scenario, Black Rock would have a bigger installed capacity, but
the project as described within this application would be
consistent with the same improvements required and would be Figure 1 - Project Location in
comprised of the same 29 turbine locations. As such, Black Grant and Mineral Counties, WV
Rock seeks a Siting Certificate for a project capacity of 170 MW.
Black Rock’s environmental consultant, Stantec, has confirmed, via a letter in Appendix Q, that the results
of its analyses would be equally applicable to the 5.8 MW turbine under consideration.
Black Rock proposes to construct up to 29 wind turbines and associated equipment along the Allegheny
Front, centered around Skyline, 11½ miles southwest of Keyser in Grant and Mineral Counties, West
Virginia. In addition to the wind turbines (including their blades, tubular towers and foundations), Black
Rock proposes to construct access roads, an electric collection system, transmission line, a substation an
interconnection switchyard, and an Operations and Maintenance (O&M) building. The wind turbine arrays
and associated equipment and facilities will be referred to collectively in this application as the “Black Rock
Wind Farm”, the “Black Rock Project”, or the “Project”.
The wind turbines are located mostly on the primary ridge, the Allegheny Front, perpendicular to the
prevailing wind, in the area both north and south of the intersection of Route 50 and Route 42 N at Skyline.
The Project will be situated in select portions of privately-owned mountaintop land generally composed of
uninhabited forested or timbered areas. In addition, there are parts of the project that are located on
properties that were previously strip mined and some that are actively farmed. The location of the Black
Rock Project is provided on Figure 1, above.
The Project has also entered into a Memorandum of Agreement with the North Central West Virginia
Building & Construction Trades Council and the West Virginia State Building & Construction Trades Council
1
(collectively referred to as the “Building Trades”) for construction of the Project. It is anticipated that the
Building Trades will intervene in the Siting Certificate process in support of the project.
Finally, Black Rock has committed to establishing a Community Benefit Fund to make an investment in the
future of the communities surrounding the Project. The Community Benefit Fund will help develop the
community and will provide funding to directly benefit residents within the Project area. Projected
contributions to the Community Benefit Fund are anticipated to be $40,000 per year over the life of the
Project.
Early Support for the Project
To date, the project enjoys the strong support of the area’s political leadership including:
• Mineral County Commissioners Roger Leatherman, Richard Lechliter and Jerry Whisner
• Grant County Commissioners Douglas Swick, Jeffrey Berg and Scotty Miley
• WV Delegates Gary Howell, Ruth Rowan, and John Paul Hott
• WV Senators Craig Blair, David Sypolt, Randy Smith, and Bill Hamilton
• US Senator Shelly Moore Capito
• US House of Representatives Member David B. McKinley, P.E.
It also has the support of each of the following organizations:
• Grant County Chamber of Commerce
• Mineral County Chamber of Commerce
• West Virginia Chamber of Commerce
• Grant County Development Authority
• West Virginia Department of Commerce
• West Virginia Development Office
• West Virginia Office of Energy
• Eastern WV Community & Technical College
Copies of the above letters of support are in Appendix E.
In-State Power Purchase Agreement
In addition, Black Rock has been awarded and entered into exclusive negotiations for a Virtual Power Pur-
chase Agreement (also known as a Contract for Differences) with an in-state manufacturer for the sale of
the energy from the Project. It will be the first wind project in the state to enter such an agreement with an
in-state manufacturer. The name of the manufacturer is confidential but will be made available soon.
2
Section 1:
Project Summary
&
Generating Facility
Overview
3
Project Purpose (3.1.a.1) 1
The purpose of the Black Rock Project will be to generate electrical energy using wind power. The Project
will be operated as an Exempt Wholesale Generator (EWG). A requirement for obtaining and maintaining
EWG status is that all sales of electricity from the facility must be made exclusively to the wholesale market
(i.e., sales for resale). All Project generation
will be sold in the competitive wholesale Components of Siting Rule
market operated by PJM Interconnection, Rule Requirement
LLC (PJM), the regional transmission
3.1.a Project Summary and Generating Facility Over-
organization (RTO) that coordinates the view
movement of wholesale electricity in West 3.1.a.1 A statement explaining the general purpose of
Virginia and in all or parts of 13 other states the generating facility
and the District of Columbia. 3.1.a.2 Reasons for selection of the proposed site in-
cluding: principal environmental considera-
tions of the site
Black Rock will not provide any of the public
socio-economic considerations of the site
services enumerated in West Virginia Code
3.1.a.3 A description of the proposed facility
§24-2-1, including the generation or
3.1.a.4 A list of:
transmission of electric energy for direct
all required government (state, local, federal)
service to the public. approvals and/or permits
the filing status of each
The Black Rock Project will make no retail 3.1.a.5 A description of any court litigation formally no-
sales of electricity (i.e., sales not for resale), ticed involving the project, including copies of
all relevant pleadings and court orders in
including without limitation, retail sales to
such proceedings
industrial or commercial customers, unless
3.1.a.6 An explanation of the project schedule
and until such sales are: (i) permitted for non-
utility generators under West Virginia law and
the Commission’s regulations; and (ii) permitted for EWGs under federal law.
Reasons for the Site Selection (3.1.a.2)
Black Rock selected the Project site (Site) based on its ridgeline location, which is oriented perpendicular
to the prevailing wind. This wind resource is among the best in West Virginia. Other factors that weigh
heavily in favor of the Site include, but are not limited to, the following:
• The availability of privately-owned land with current land uses that are compatible with wind
power development;
• Favorable transmission access into the PJM transmission grid system;
• Reasonable highway access;
• Relative scarcity of nearby residential dwellings; and
• Proximity to existing Clearway-owned wind projects.
The Project has been designed to avoid and/or minimize impacts to:
• Federally- and state listed wildlife species, including birds and bats, and their habitat;
1 The portion of the siting rule which relates principally to each application section is indicated in the section heading.
4• Sensitive plant species;
• Wetlands and waterways;
• State or county roads, and;
• Occupied residential structures.
With regard to socioeconomic factors, the Project will provide many benefits to the local economy, including
by not limited to the following:
• Lease/royalty revenue to landowners;
• Creation of jobs both during construction of the Project and its subsequent operation;
• Enhanced potential for economic development;
• Ancillary business activity;
• Tax revenues;
• Community Benefit Fund;
• Energy price certainty through the production energy without fuel price risk.
Description of the Proposed Facility (3.1.a.3)
The Black Rock Project is described in detail in Section 3 of this application.
Required Government Approvals and/or Permits (3.1.a.4)
Black Rock is in the process of securing the necessary permits
and other approvals for the Project. These tasks are well
underway and will be completed prior to construction of the
Project. It is expected that final engineering, procurement, and
construction contracting will occur in early 2020, leading to
construction and installation of the wind turbines occurring in
2020 and 2021, with the target commercial operation date in
2021. Black Rock is in various stages of obtaining the necessary
permits and approvals from federal, state, and local agencies,
including those shown in Table 1on the following page.
5Table 1 - Required Government Approvals and/or Permits
Agency Permit or Approval Status
West Virginia Public Service Siting certificate for construction and operation of ex-
Initiated
Commission empt wholesale generator and transmission line
United States Fish and Wildlife
Concurrence with studies of projected wildlife impact Summer 2019
Service
West Virginia Division of Natural
Concurrence with studies of projected wildlife impact Summer 2019
Resources (DNR)
Approval of wetlands delineation, and if necessary, Sec-
United States Army Corps of En-
tion 404 Dredge and Fill Permit (Nationwide Permit) Summer 2019
gineers
for stream or wetland activities or disturbances
West Virginia Department of Permit for individual sewer system, if necessary Await Siting
Health and Human Resources Certificate
Registration under NPDES Construction Stormwater
General Permit
West Virginia Division of Environ- Await Siting
mental Protection NPDES permit for individual sewer system, if necessary Certificate
Section 401 Water Quality Certification, if necessary
West Virginia Division of Culture Approval of studies of potential impact on historic struc-
In Process
and History tures and archaeology
Federal Aviation Administration Determination of No Hazard to Air Navigation In Process
30 Days Prior
Federal Aviation Administration Form 7640 Notice of Proposed Structures to Construc-
tion
Federal Energy Regulatory Com- Await Siting
Designation as Exempt Wholesale Generator
mission Certificate
PJM Completion of Interconnection Planning Process In Process
West Virginia DNR, Office of Await Siting
Stream Activity Authorization, if necessary
Land and Streams Certificate
West Virginia Division of High- Permit to Enter Upon, Under, Over or Across the State Await Siting
ways Roads Certificate
Mineral County Health Depart-
Well Drilling Certification Permit for potable water, if Await Siting
ment and/or Grant County
necessary Certificate
Health Department
Mineral and Grant County Asses- Await Siting
Building Permits, as necessary
sor’s Offices Certificate
Court Litigation Involving the Project (3.1.a.5)
No court litigation has been filed involving the Black Rock Project. Black Rock is not aware of any pending
or threatened litigation, appeals, or other legal actions related to the Project or the Site.
6Project Schedule (3.1.a.6)
Starting from a regional site selection effort, the Project has been under study and development since 2005.
Except as noted above, Black Rock is in the process of submitting all necessary permit applications and
studies with the relevant regulatory agencies and expects to receive the necessary approvals in early 2020.
Upon issuance by the Public Service Commission of a Siting Certificate for the Project, Black Rock will
apply promptly for all remaining required permits, approvals, or certifications.
Black Rock plans to commence construction of the Project as soon as practicable, once the Commission
grants the Siting Certificate, final engineering is complete, tax equity investors are selected, and all
permitting, and regulator-driven preconstruction requirements are met.
Importantly, Black Rock will monetize the federal renewable electricity production tax credit, or PTC (further
described in Section 11) and is eligible for 80% PTC value, provided the Project is placed in service in 2021.
The timely receipt of a Site Certificate is vital to achieving placed in service in 2021, and thus vital to
ensuring the project comes to fruition.
A Gantt chart and complete discussion of the preliminary Project Schedule is provided in Section 5 herein.
7Section 2:
Justification
of Need
9Need for the Black Rock Project (3.1.b)
The need for additional generating capacity in the
Components of Siting Rule
United States is well documented. In the past 15
years, renewable energy sources such as the Black Rule Requirement
Rock Project have gained importance in meeting our 3.1.b A statement explaining the need for the
facility, including the following:
growing energy needs. In its 2018 Annual Energy
references to any available long-term
Outlook, 2 the United States Energy Information electric supply and demand projections
Administration (EIA) predicts that after decades of made by the East Central Area Relia-
bility Council or the local Regional
slowing growth, electricity use is expected to grow
Transmission Operator
steadily through 2050. And during that time, the any other rationale for building the facility
Department of Energy (DOE) predicts that
generation from renewable sources will grow across all technologies (139%), led by growth in wind and
solar photovoltaic generation (94% of total growth).
A combination of a reduction in technology costs and the implementation of encouraging policies towards
renewables at both the state and federal level has driven down the cost of turbine technology and supported
the expansion of wind energy. Renewable energy sources are expected to account for 64% of new electric
generation growth through 2050. 2
PJM Coal and Nuclear Retirements
In recent years, there has been a surge in retirements of coal
and nuclear power plants in the PJM market. Data from PJM
Interconnection shows more than 3,600 MW of power
generation was scheduled to be taken offline in 2018 alone.
Early in 2018, FirstEnergy, one of the nation’s largest investor-
owned electric companies and the parent company of both
Potomac Edison and Monongahela Power, the utility
companies serving the project area, announced its intentions
to close four uneconomic nuclear units (totaling 4 GW) in PJM
by year-end 2021. FirstEnergy promptly followed by filing for
Chapter 11 bankruptcy protection for its coal and nuclear
generation divisions. 3 A study commissioned by the National Mining Association (NMA) to assess the
impact of upcoming scheduled retirements looked at the impact that would occur if three of the largest coal-
fired generating stations in the PJM market were to close at the beginning of 2019. According to the study,
Pleasants, Sammis, and Bruce Mansfield, are at risk of closure due to the low energy and capacity market
prices. In terms of its share of the PJM power grid, coal accounts for 31.5 percent of the total capacity of
MW. These three plants at risk of retirement represent almost 10 percent of the total coal-fired capacity in
PJM. 4 Although significant retirements of nuclear and coal in the region will not lead to immediate grid
2
Annual Energy Outlook 2018, https://www.eia.gov/outlooks/aeo/pdf/AEO2018.pdf
3
PJM: More than 3,600 MW Will Retire in 2018, https://www.powermag.com/pjm-more-than-3600-mw-will-retire-in-2018/?pagenum=1
4
https://www.powermag.com/pjm-more-than-3600-mw-will-retire-in-2018/?pagenum=1, Impact of Coal Plant Retirements on the U.S.
Power Markets – PJM Interconnection Case Study – July 2018
https://nma.org/wp-content/uploads/2018/07/EVA-Report-on-Coal-Plant-Retirements-final.pdf
11instability, an influx of additional generation capacity, regardless of fuel source, is welcomed by PJM and
puts downward price pressure on wholesale electricity prices.
Corporate Demand for Renewables
Recent trends imply that corporate and other non-utility
customers are setting ambitious targets for renewable energy
procurement and are choosing wind more than any other
source.
Wind’s low costs and stable prices make sense for their bottom
line and its clean electricity helps Fortune 500 companies and
cities meet sustainability goals. They can control their future
energy costs by purchasing wind energy through long-term,
fixed-price Power Purchase Agreements (PPAs) or Virtual
Power Purchase Agreements (VPPAs; structured as a financial
settlement at a PJM trading hub, with the intent to hedge the
electricity costs of the manufacturing facility and generate
Renewable Energy Credits (RECs) for the corporation to meet
its public sustainability goals).
Over 100 companies, including Walmart, Anheuser-Busch, and
Figure 2 - Trends in PPAs - Source:
General Motors have committed to 100% renewable energy AWEA
targets. Google recently announced that it achieved its goal of
100% renewables, with 95% being supplied by wind. 5 More than 9,100 MW of U.S. wind power was
procured in 2017 alone by such entities. Some of the largest buyers in 2018 included AT&T (820 MW),
Walmart (300 MW), Facebook (1,800 MW), and T-Mobile (160 MW). This trend has increased so rapidly
that the percentage of non-utility entities entering into power purchase agreements from wind projects has
jumped from a mere 5% in 2013, to 40% in 2017, with a spike in between as high as 54% being purchased
by non-utilities. 6
Clearway has a strong track record of contracting PPA’s with commercial and industrial corporate entities
and has executed PPAs with offtakers such as MGM Resorts, Ecolab, Cisco, Macy’s, Raytheon, Land
O’Lakes, Red Wing Shoes, Whole Foods Markets and Safeway, to name a few.
Some businesses are choosing to specifically locate new facilities where they can source wind energy
directly, such as was the case with Facebook (New Mexico) and Apple (Iowa). The Corporate Renewable
Energy Buyer’s Alliance (REBA) is an alliance of large clean energy buyers, developers, and service
providers, whose goal is to unlock the marketplace for all nonresidential energy buyers and lead a rapid
transition to a cleaner, zero-carbon energy future. The 2015 (REBA) principles state,
“where possible, we would like to procure renewable energy from projects near our
operations and/or on the regional energy grids that supply our facilities, so our efforts
5
https://www.awea.org/policy-and-issues/corporate-and-municipal-buyers
6
https://www.awea.org/Awea/media/Resources/Fact%20Sheets/Corporate-Purchasers-Quotes.pdf
12benefit local economies and communities as well as enhance the resilience and security
of the local grid”. 7
Ideally a VPPA with a non-utility customer in West Virginia would further support jobs and economic growth
in the state, but a PPA with offtakers from outside West Virginia can also provide these jobs and economic
growth through the export of electric power. Evidence of this can be seen in two neighboring wind farms.
The 52.5 MW Pinnacle Wind Farm is currently selling its wind energy to the Maryland Department of
General Services and the University of Maryland, and the New Creek Wind Farm is selling energy from the
40 MW wind farm to Salesforce. 8
Black Rock has been awarded and entered into exclusive negotiations for a Virtual Power Purchase
Agreement (VPPA) with a top tier Fortune 100 company who has manufacturing facilities in West Virginia.
The VPPA is structured as a financial settlement at a PJM trading hub, with the intent to hedge the
electricity costs of the manufacturing facility and generate Renewable Energy Credits (RECs) for the
corporation to meet its public sustainability goals.
Importantly, the Black Rock Project will also provide needed capacity and energy to the ReliabilityFirst
Corporation (RFC) region and the PJM Interconnection (PJM) control area, improving overall system
reliability and serve the growing demand for electrical energy. As discussed in detail below, the most recent
supply and demand projections by the North American Electric Reliability Corporation (NERC) and PJM
indicate the need for additional generating capacity to meet future demands.
The Role of Exempt Wholesale Generators (3.1.b)
Over the past two and a half decades, Congress has passed sweeping changes to the laws governing the
electric generating industry to address the growing need for electricity. In 1992, the Energy Policy Act of
1992 (EPACT) (Public Law 102-486) created a new category of electricity producer, the Exempt Wholesale
Generator (EWG). EPACT created a competitive system whereby transmission access was opened to
wholesale generators of power. EWGs can generate and sell electricity at wholesale without being
regulated as utilities.
In 1996, the Federal Energy Regulatory Commission (FERC) issued Order 888, which substantially
enhanced the possibility of competition in the wholesale energy market by, among other things, mandating
that public utilities provide all generators access to their transmission systems on a comparable basis to
the access they provide to their own generating facilities. Under this regulatory framework, EWGs, such
as the Black Rock Project, fill an important role in the United States energy supply. Importantly, EWGs
make the investment in these projects with private funds and assume the inherent market risks. Utility
ratepayers are protected from the rate effects of potentially unwise or uneconomic investments.
7
https://rebuyers.org/
8
https://www.awea.org/policy-and-issues/corporate-and-municipal-buyers/non-utility-purchasers-of-wind
13PJM Demand Forecasts (3.1.b)
Each year, PJM publishes an annual Load Forecast Report for the region. The report includes forecasts
of electricity demand for the upcoming year, as well as the next 10 to 15 years. These reports suggest
short and long-term load (i.e., demand) increases in
West Virginia and the rest of the PJM region.
The 2018 PJM Load Forecast Report predicts an
average summer peak load growth for PJM of 0.4%
per year over the next 10 years and 0.4% per year
over the next 15 years. 9 Therefore, the PJM summer
peak is predicted to reach 157,635 megawatts (MW)
in 2028, a 10-year increase of 5,527 MW, and
162,095 MW in 2033, a 15-year increase of 9,987
MW. Winter peak load growth for PJM is projected to
average 0.4% per year over the next ten-year period
and 0.4% over the next 15-year period. The PJM
winter peak load in 2028 is forecasted to be 136,702
MW, a 10-year increase of 5,239 MW, and 139,975 Figure 3 - Cover Page: 2018 PJM Load Forecast Report
MW in 2033, a 15-year increase of 8,512 MW. Showing the Utility Territories in PJM
NERC Long-Term Reliability Assessment (3.1.b)
NERC is a non-profit, self-regulatory organization whose mission is to ensure the reliability of the bulk power
system in North America. On July 20, 2006, NERC was certified as the Electric Reliability Organization
(ERO) in the United States, pursuant to Section 215 of the Federal Power Act of 2005. This certification
authorized NERC to enter into delegation agreements authorizing regional entities to propose and enforce
reliability standards.
Each year, NERC assesses and reports on the
reliability and adequacy of the North American bulk
power system according to the eight regional areas
as shown to the left. NERC’s 2018 Long-Term
Reliability Assessment indicates that wind
generation has become the primary reported focus
of renewable resource development in North
America. 10 The report says that, while capacity
margins have improved, additional generation is still
required.
Figure 4 - Regional Entities under NERC
9
January 2018. PJM Load Forecast Report https://www.pjm.com/-/media/library/reports-notices/load-forecast/2018-load-forecast-
report.ashx?la=en
10
https://www.nerc.com/pa/RAPA/ra/Reliability%20Assessments%20DL/NERC_LTRA_2018_12202018.pdf
14The 2018 NERC Reliability Assessment considers emerging issues 50%
and how they might affect the availability of adequate electricity supply 45%
in North America. Among the factors considered, a rapid onset of 40% 44%
35%
transmission-related or industrial demand could create unexpected 30%
load growth. Likewise, aging generators could create unexpected 25%
outages. The graphic to the right compares the percentage of 20% 23%
15%
generation more than 40 years old in 2008 and in 2017. NERC also 10%
explained that automobiles are now increasingly battery-powered, and 5%
plug-in electric vehicles are projected to account for as much as half 0%
of all U.S. new car sales by 2030. The electricity required to charge 2008 2017
Figure 5 - Percentage of
these vehicles will increase demand on the bulk power system and Generation over 40 Years Old
may shift time-of-use patterns. 11
RFC Long-Term Reliability Resource Assessment (3.1.b)
ReliabilityFirst (RFC) is one of the seven approved Regional Entities in North America under NERC. 12 West
Virginia is part of the RFC region. 13 RFC is a successor entity to ECAR, which was formed by the merger
of States in the former ECAR region with those in the former MAIN and MAAC regions.
The 2018 RFC Long Term Reliability Resource Assessment forecasts reliability of electricity resources
across the RFC region. RFC found that PJM is projected to average 0.37 percent load growth per year
over the next ten years. The ten-year PJM summer peak is projected to increase from 152,479 in 2019 to
157,635 in 2028 on a net internal demand basis, a ten-year increase of 5,156 MW. 14
An Energy-Independent West Virginia (3.1.b)
West Virginia is one of the nation’s top energy producing states with a diverse and growing energy sector.
Energy remains one of the state’s traditional economic strengths. It exports more than 55% of electricity
generated in the state, one of only two states in the mid-Atlantic region that is a net producer of electricity
and it exports nearly 60% of the natural gas produced in the state.
The first wind farm began operations near Thomas, West Virginia, and since then five additional wind farms
have been constructed for a total of nearly 700 MWs. 15 Many of the state’s wind farms are located on
previously surface mined land, and the state has encouraged additional utility scale wind energy
development on other surface mined sites.
11 Id., p. 46.
12
https://rfirst.org/about/Pages/AboutUs.aspx
13 ReliabilityFirst is a not-for-profit company which began operations on January 1, 2006. ReliabilityFirst's responsibilities include
developing and monitoring compliance with reliability standards for the bulk electric system and providing seasonal and long-term
assessments of bulk electric system reliability within the Region. ReliabilityFirst Member companies operate in thirteen states includ-
ing the District of Columbia. https://rfirst.org/about/Pages/AboutUs.aspx
14
https://rfirst.org/about/Newsroom/Newsroom%20Library/Issue%206%20Nov%20Dec%202018.pdf#search=Long%2DTerm%20Re-
source%20Assessment
15
http://energywv.org/wv-energy-profile/renewable-energy
15Renewable Portfolio Standards (3.1.b)
A Renewable Portfolio Standard (RPS) requires retail electric providers and electric utilities to supply a
specified minimum amount of customer load with electricity from renewable energy producers. RPSs
stimulate market and technology development so that, ultimately, renewable energy will be economically
competitive with conventional forms of electric
power. The National Conference of State
Legislatures estimates that roughly half of the
growth in US renewable energy generation since
the year 2000 can be attributed to state renewable
energy requirements. Twenty-nine states,
Washington DC, and three territories have adopted
an RPS while eight states and one territory have set
renewable energy goals 16 as shown in the graphic
to the right.
Figure 7 - States with RPS and RE Goals. July 2018
In addition, and importantly, the market for
voluntary renewable energy is growing. Individuals
and companies buy renewable energy from power Figure 6. Renewable Portfolio Standards or Voluntary
Targets
marketers who, in turn, purchase the renewable
energy.
Although the West Virginia Legislature repealed its West Virginia Alternative and Renewable Portfolio
Standard legislation in 2015, the Black Rock Project will help contribute to fulfilling the expanding demand
for renewable generation in the PJM marketplace, where several states have renewable portfolio standards
and PJM has established a Generation Attribute Tracking System (GATS) to facilitate confident trading of
environmental and fuel-related attributes for generators in the control area.
Clearway’s 55.2 MW Pinnacle Wind Farm in Mineral County.
16
http://www.ncsl.org/research/energy/renewable-portfolio-standards.aspx
16Section 3:
Description of the
Facility
17Project Description (3.1.c.1)
The proposed Black Rock Wind Farm is located along the Allegheny Front near Skyline in Grant and Mineral
Counties, West Virginia. The wind turbine arrays range from approximately 9.5 to 14.5 miles south
southwest of Keyser. The Project location is
shown in Figure 8 on the following page. The Components of Siting Rule
bulk of proposed turbines will run generally Rule Requirement
northeast-southwest along the Allegheny 3.1.c Description of Facility
Front at elevations varying from about 2620 3.1.c.1 Where applicable, the type of unit, estimated net
to 3150 feet above historic mean sea level. demonstrated capability, heat rate, expected
annual capacity factor, expected hours of an-
nual generation for the first five years of opera-
The Project’s turbines will be located tion
exclusively on privately owned land generally 3.1.c.2 Total land area requirement
composed of uninhabited forested or 3.1.c.3 Fuel quantity
timbered areas. The two more western 3.1.c.4 Fuel quality
arrays are located on secondary ridges
3.1.c.5 Fuel transportation
adjacent that have previously been strip-
3.1.c.6 Fuel storage
mined areas and/or on farmland. Black Rock
3.1.c.7 Expected air and water emissions, including for
has site control through a series of leases, each emission the following:
purchases, and options to purchase the the federal and/or state regulatory authority from
necessary property for the construction of the which a permit must be obtained, or
a statement that no permits are required for that
Project. emission, and a statement of the expected im-
pact of such emissions
The Black Rock Project will consist of wind 3.1.c.8 Water requirement
turbines, tubular supporting towers and source of water
foundations, access roads, an underground treatment
(or overhead where it is of lower impact) quantity of any discharge
electric collection system, interconnection names of receiving streams
switchyard facilities, transmission line, a 3.1.c.9 Other major equipment, including any significant
safety equipment, e.g., firefighting equipment
meteorological tower, and possibly an
operations and maintenance (O&M) building.
Black Rock Wind Force, LLC is a wholly-owned subsidiary of Clearway Energy Group LLC. Clearway
purchased the project from Laurel Renewable Partners, LLC in early 2018. Laurel and Clearway have
since developed the project together under a joint development arrangement. Clearway owns 2.8 GW of
wind power projects in 28 states across the United States including the neighboring Pinnacle Wind Farm in
Mineral County, West Virginia and the Lookout and Forward projects in Somerset County, Pennsylvania.
Clearway Energy was formed with the completion of the sale of NRG Energy, Inc.’s (NRG) renewable
energy business, NRG Renew, one of the largest clean energy companies in the United States, to Global
Infrastructure Partners (GIP). The company is comprised of the workforce and capabilities from NRG’s
industry-leading renewables platform and NRG’s controlling interest in NRG Yield, Inc. At its inception as
a standalone company, Clearway is one of the largest renewable energy companies in the United States.
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