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1 RiversideCA.gov
1 RiversideCA.gov
RIVERSIDE TRANSMISSION RELIABILITY PROJECT
City Council
November 15, 2022
Fatal Flaw Analysis
Summary
RiversideCA.gov
2 FIRM OVERVIEW
Steve Larson, Partner
Steve Larson brings broad experience in the energy
regulatory field as well as state budgetary policy and
corporate matters
In the past, Steve has served as:
• Executive Director for the CPUC
• Executive Director of CEC
• President of Woodside Natural Gas of California
California Strategies, LLC, is a full-service public affairs consulting firm with extensive experience and expertise in the energy sector 1 2
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2 RiversideCA.gov
3 STUDY OBJECTIVE
Study Process
Identify changes to project considerations
Review SEIR project alternatives
Propose undergrounding alternative(s)
Estimate alternative(s) cost and schedule
Identify funding opportunities
RPU has elected to evaluate
constructing the entirety or a
portion of an approximately 5-mile
230-kV section of the RTRP using
methods of undergrounding
The purpose of this study is to
provide information to RPU decision
makers regarding undergrounding
options, impacts, and potential
paths to implementation
RiversideCA.gov
4 PROJECT BACKGROUND
RTRP History
2004: Riverside requests SCE to develop
second interconnection
2006: CAISO approves RTRP
2013: Final EIR certified
2015: SCE submits CPCN application
2016: SCE revises RTRP CPCN to
underground through Jurupa Valley
2018: Subsequent EIR certified
2020: CPUC issues CPCN for RTRP
2022: Jurupa Valley grants SCE the
underground easement
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5 PROJECT STATUS
RiversideCA.gov
6 PROJECT CONSIDERATIONS
Utility-Driven Wildfires
From 2014-2017, electrical utility failure only contributed to 9% of wildfire ignitions, but disproportionally accounted for 42% of acreage burned in California
Dixie Fire (2021): 960,000 acres burned; $1.15B in
estimated losses; caused by a fallen tree contacting a
PG&E distribution line
Thomas Fire (2017): 282,000 acres burned; $171M in
estimated losses; caused by high winds that forced SCE
distribution lines to contact each other
Camp Fire (2018): 153,335 acres burned; $10B estimated
losses; caused by PG&E electrical transmission failure
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7 PROJECT CONSIDERATIONS
The studied overhead 5-mile
section of the 230-kV
transmission runs adjacent to
and through a CPUC Tier 2
High Fire Threat District
4 Documented wildfires
in the project area
from 2017 - 2022
RiversideCA.gov
8 PROJECT CONSIDERATIONS
Social Justice
When placed in residential zones, high
voltage overhead lines elevate fire risk,
lower property values, and detract from
environmental aesthetics
Low-income communities are
disproportionately affected by industrial
development
• City of Jurupa Valley successfully
argued for undergrounding based on
social justice
• Current 5-mile portion of overhead
lines travels through a statutorily
designated Disadvantaged
Community
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9 PROJECT CONSIDERATIONS
Environmental Aesthetics
The Alternative #1 route traverses
the Hidden Valley Wildlife Area
(HVWA), land that is designated for
open space and recreational use.
The City of Jurupa Valley urged the
City to revaluate undergrounding
through the HVWA, especially since
the SEIR recognizes it as the
environmentally superior option.
RiversideCA.gov
10 INDUSTRY TRENDS
Recent Undergrounding Projects
LADWP, 2018:
• 11.4-mile 230-kV underground transmission line
• Replaces aging power infrastructure
City of Chino Hills, 2013:
• 3.7-mile 500-kV underground transmission line
• Reduces impact of OH lines on residents
City of San Diego, 2018:
• 15-mile 230-kV underground transmission line
• Improves reliability, safety, and visual aesthetics
In 2021, PG&E PLEDGED
TO UNDEGROUND 10,000
MILES OF POWERLINES
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11 PREVIOUSLY IDENTIFIED ALTERNATIVES
Of the 30 alternatives reviewed
in the 2018 Subsequent EIR, 2
followed the same path as the
current Alternative #1 route
SEIR Alternative 8: All 5 miles of
study area undergrounded
SEIR Alternative 10: Of the 5-
mile portion of the RTRP:
• 1 mile underground
• 4 miles overhead
RiversideCA.gov
12 PROPOSED HYBRID ALTERNATIVE
Approximately 3.5 miles of
underground and 1.5
miles of overhead lines
The Hybrid Alternative
incorporates already
assessed elements from
SEIR Alternative 8 and 10
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13 ALTERNATIVE DECISION MATRIX
Social Justice Environmental
Aesthetics Risk Mitigation Environmental
Protection
Alternative #1
EIR Alternative 8
EIR Alternative 10
Hybrid
Alternative
RiversideCA.gov
14 COST ESTIMATE
Item Alternative #1 Hybrid Alternative SEIR Alternative 8 SEIR Alternative 10 Underground Length 4.1 mi 7.5 mi 9.9 mi 5.1 mi
Overhead Length 5.8 mi 2.4 mi 0 mi 4.8 mi
Total Cost $521 M $742 M $896 M $584 M
Percent Over Baseline 0% 42% 72% 12%
Note: Estimates are derived from SCE Estimate (2018)
SCE estimates the financial impact of underground lines at $59.7M / mile, which is high compared to other similar projects.
For example, LAWDP’s 11.4-mile Underground Transmission Project cost $11.40 M / mile.
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15 ANTICIPATED PROBABLE SCHEDULE
The proposed Hybrid
Alternative route
could add an
additional 2 years to
project completion
Task relationships from the existing
City schedule were kept intact and a
6 month slip on ongoing tasks was
assumed.
RiversideCA.gov
16 SOURCES OF FUNDING
Transmission Access Charge (TAC)
The TAC provides cost recovery for
Participating Transmission Owners (PTO)
and each PTO is authorized to recover an
annual amount equal to the Transmission
Revenue Requirement (“TRR”) approved
by the FERC
Other Funding Sources:
• Federal funding on pilot basis
• State funding
• California Energy Commission (CEC)
• State budget process
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17 MODIFICATION PROCESS
Step #1: Resolution and Task Force Creation
• Riverside City Council approves a
Resolution in support of the
undergrounding alternative selected
and creates a Task Force
• This Task Force includes at a minimum, a
representative of the Council, the City,
and RPU, with others as needed
• Assign a Task Force Administrator
selected through a competitive process
that is capable of advising the Task
Force
Step #2: Organizational Efforts
• Create a coalition of local and state
elected officials that support the RTRP
• Establish working relationship with SCE
• Contact CAISO and FERC to identify
approvals needed
• Establish work plan to meet
requirements of SCE and agency
relationships
• Develop pre-construction schedule
RiversideCA.gov
18 MODIFICATION PROCESS
Step #3: Funding Source Identification
• Confirm applicability of Transmission
Access Charge (TAC) cost recovery
towards new project modifications
• Explore unconventional funding sources
such as pilot programs
Step #4: CEQA Investigation
• Identify modification’s new
environmental impacts and select
appropriate variation of EIR
• Complete Draft EIR, follow notice and
review process, and complete Final EIR
Step #5: CPCN Petition of Modification
• Assist SCE as needed with preparation
of Petition of Modification for CPUC
• Provide SCE with completed EIR,
completed agency approvals, and
identified funding sources
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