Transmission Line Projects in Maryland – an Overview

1. Transmission Line Projects in Maryland – an Overview Sandra S. Patty PPRP - Manager, Transmission Projects PPRAC Meeting Country Inn & Suites, Annapolis, MD August 26, 2008

2. Transmission Licensing in Maryland • Pre-application • Early and often communication encouraged • Preliminary issues are identified and provided to State Agencies • Filed Application • Coordinated review by the State Agencies • Results in cohesive State recommended licensing conditions • Evidentiary hearing process takes place and public meetings are held • PSC Responsibilities • Review the State Agencies’ recommendations • Issue a final order granting or denying the CPCN

3. Proposed Projects • Mid-Atlantic Power Pathway (MAPP) – Pepco Holdings, Inc. • Potomac-Appalachian Transmission Highline (PATH) – Allegheny/AEP Joint Venture • Other Transmission Projects • Urbana Electric Capacity Upgrade – Allegheny • Raphael Road to Bagley Rebuild – BGE • Holland Cliffs to Helen Creek Rebuild – SMECO

4. Pepco Holdings, Inc. (PHI) • 230 miles of 500-kV line through VA, MD, DE, and NJ • Affected counties in MD: Charles, Calvert, Prince George’s, Dorchester, and Wicomico • 177 miles (over 75%) planned on or near existing ROW • Entire portion through Southern MD on existing ROW • PHI will obtain new 200-foot ROW in Dorchester Co. • Two 230-kV lines also planned (in Dorchester and Wicomico Co.) • To address local reliability issues • Not yet approved by PJM • Water crossings planned: • Potomac, Patuxent, and Nanticoke Rivers • Chesapeake Bay (approx. 8 miles from Calvert Cliffs to Dorchester Co.) • Option to include a DC line (in lieu of AC) from Calvert Cliffs to Vienna is currently being considered • Advantages over AC system, but significant project cost increase

5. Pepco Holdings, Inc. (PHI) (continued) • Public Outreach • Five public meetings held in Dorchester County during May/June 2008 • Regularly attending monthly Joint Evaluation meetings to provide project updates • Schedule: • Final routing in Dorchester Co. to be completed this fall • Followed by second round of public meetings • PHI plans to file its application in phases • Possum Point to Calvert Cliffs (S. MD) portion filed by end of 2008, likely by September and completed by 2011 • Eastern Shore to Delaware portion filed by 2nd quarter of 2009 and completed by 2013 • Website: www.powerpathway.com

6. Allegheny/AEP Joint Venture • 244 miles of 765-kV line • John Amos to Bedington substations (WV) • 46 miles of twin-circuit 500-kV lines • Bedington to a proposed substation near Kemptown, MD (southeast of Frederick) • The circuits will be separated and will follow different routes • Affected counties in MD: • Washington and Frederick • Allegheny has identified draft routing “segments” • Includes crossings of Appalachian Trail and the C&O Canal • Maps available on-line: www.pathtransmission.com

7. Allegheny/AEP Joint Venture • Public Outreach - Maryland • Frederick and Washington Counties • 2 rounds of Stakeholder Siting Meetings held in June and July • Public open house meetings in mid-June and early August • Technical Need Conference in Baltimore – July 17, 2008 • Schedule: • Routing study to be completed in November 2008 • Application to be filed by December 1st • Target date for completion is June 2012

9. Other Transmission Projects • Urbana Electricity Upgrade (Allegheny Power) • Located in Urbana, MD (near Frederick) • Proposed project filed in 2004; PSC denied CPCN request in 2005 with order instructing Allegheny to begin immediate development of an energy solution for Urbana • PPRP served as a resource to a small group of stakeholders that met throughout January to June • Public meetings held in March and April • Project currently on hold; possible coordination with the PATH project

10. Other Transmission Projects (Cont.) • Raphael Road to Bagley Rebuild (BGE) • Upgrade of 6 miles of transmission facilities • From Raphael Road substation to proposed Bagley substation (northeast of Baltimore) • Single-circuit 230-kV lines upgraded to double-circuit 230-kV • Rebuild within existing ROW; however, passes through Gunpowder Falls State Park • Application filed May 2, 2008; project currently being reviewed • DNR testimony is due October 1, 2008

11. Other Transmission Projects (Cont.) • Holland Cliffs to Helen Creek Rebuild (SMECO) • Upgrade 69-kV lines to 230-kV from Holland Cliffs to proposed Helen Creek substation • Project occurs within existing ROW; however, requires a new crossing of the Patuxent River near the Thomas Johnson Bridge • Designed to create a continuous “loop” of electricity service around SMECO’s service area • Application to be filed late October/early November 2008

12. NIETC Update • Has been significant opposition to the federal designation • U.S. Senate Committee on Energy and Natural Resources hearings held on July 31, 2008 • Hearing requested by 14 bipartisan Senators • Testimony submitted by numerous environmental and government groups • Main issues of concern: • Loss of reasonable process • Disincentives for alternative energy • Higher utility rates • No action expected soon – Senate on summer break

13. Questions???