6010 Federal Register / Vol. 69, No. 26 / Monday, February 9, 2004 / Notices 

1 15 U.S.C. 78s(b)(1).

2 17 CFR 240.19b-4.

3See letter from Richard S. Rudolph, Director and 

Counsel, Legal Department, Phlx to Deborah 

Lassman Flynn, Assistant Director, Division of 

Market Regulation (‘‘Division’’), Commission, dated 

January 15, 2004 (‘‘Amendment No. 1’’). In 

Amendment No. 1, the Exchange proposes to 

amend the rule text to clarify that if Phlx XL is not 

deployed for any reason, the Exchange would 

implement a functionality whereby eligible 

incoming orders and quotations would 

automatically execute against quotations of 

specialists and Streaming Quote Traders (‘‘SQTs’’) 

and orders of Registered Options Traders (‘‘ROTs’’) 

within 30 days of the date of the determination not 

to deploy.

4See letter from Richard S. Rudolph, Director and 

Counsel, Legal Department, Phlx to Deborah 

Lassman Flynn, Assistant Director, Division, 

Commission, dated January 28, 2004 (‘‘Amendment 

No. 2’’). In Amendment No. 2, the Exchange 

proposes to amend the rule text to clarify that Phlx 

XL, if approved, would be deployed not later than 

10 days after Commission approval.

5AUTOM is the Exchange’s electronic order 

delivery, routing, execution and reporting system, 

which provides for the automatic entry and routing 

of equity option and index option orders to the 

Exchange trading floor. Orders delivered through 

AUTOM may be executed manually, or certain 

orders are eligible for AUTOM’s automatic 

execution feature, AUTO-X. Equity option and 

index option specialists are required by the 

Exchange to participate in AUTOM and its features 

and enhancements. Option orders entered by 

Exchange members into AUTOM are routed to the 

appropriate specialist unit on the Exchange trading 

floor. See Exchange Rule 1080.

6See File No. SR-Phlx-2003–59 and Amendments 

No. 1 and 2 thereto, which describes the proposed 

functionality and rule changes associated with Phlx 

XL, and is currently pending with the Commission 

(‘‘Phlx XL Proposal’’).

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–49151; File No. SR–Phlx–

2004–01] 

Self-Regulatory Organizations; Notice 

of Filing and Amendments No. 1 and 2 

Thereto and Order Granting 

Accelerated Approval of Proposed 

Rule Change by the Philadelphia Stock 

Exchange, Inc. Relating to the 

Automatic Execution of Registered 

Options Trader (‘‘ROT’’) Limit Orders 

on the Limit Order Book 

January 29, 2004. 

Pursuant to section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b-4,2 thereunder, 

notice is hereby given that on January 6, 

2004, the Philadelphia Stock Exchange, 

Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

the proposed rule change as described 

in items I, II, and III, below. On January 

15, 2004, the Exchange filed 

Amendment No. 1.3 On January 28, 

2004, the Exchange filed Amendment 

No. 2.4 The Commission is publishing 

this notice to solicit comments on the 

proposed rule change, and Amendments 

No. 1 and 2, from interested persons, 

and granting accelerated approval to the 

proposal, as amended.

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Phlx proposes to amend 

Exchange Rule 1080, Commentary .04, 

to modify the timing of the deployment 

of a feature of its Automated Options 

Market (AUTOM) 5 system in light of the 

Exchange’s proposal to introduce its 

new electronic trading platform for 

options, to be known as ‘‘Phlx XL.’’ 6

The text of the proposed rule change is 

set forth below.

Brackets indicate deletions; italics 

indicate new text. 

Philadelphia Stock Exchange 

Automated Options Market (AUTOM) 

and Automatic Execution System 

(AUTO-X) 

Rule 1080. 

(a)–(j) No change. 

Commentary:

.01–.03 No change. 

.04 * * * 

[The Exchange shall modify its 

AUTO-X system not later than January, 

2004, so that it shall automatically 

execute eligible incoming orders against 

Phlx Price Improving ROT and 

specialist price improving orders and 

orders matching such price-improving 

orders entered via electronic interface 

with AUTOM resting on the limit order 

book. The Exchange will deploy the 

modified system over a 15-month 

period.] 

Not later than ten days following 

approval by the Securities and 

Exchange Commission of the rules 

applicable to the Exchange’s electronic 

trading platform, Phlx XL, the Exchange 

will commence the initial deployment of 

Phlx XL by allowing specialists and 

ROTs who are Streaming Quote Traders 

(‘‘SQTs,’’ as defined in the Phlx XL 

rules) to submit electronic quotations in 

Streaming Quote Options (as defined in 

the Phlx XL rules), and ROTs who are 

not SQTs to submit limit orders onto the 

limit order book via electronic interface 

with AUTOM or manually through a 

Floor Broker or the Specialist. Eligible 

incoming orders and quotations will 

automatically execute against 

quotations of specialists and SQTs and 

orders of ROTs in accordance with the 

functionality of the Phlx XL system, as 

set forth in the Phlx XL rules.

Over a period following the 

commencement of operation of the Phlx 

XL system, the Exchange expects to 

gradually increase the number of 

Streaming Quote Options eligible to be 

traded via Phlx XL. If the Phlx XL 

system is in operation on April 30, 2005, 

but less than all of the options traded 

on the Exchange are Streaming Quote 

Options, then the Exchange shall, as of 

April 30, 2005, ensure that the AUTOM 

system automatically executes eligible 

incoming orders in options that are not 

then Streaming Quote Options against 

Phlx Price Improving ROT and 

specialist price improving orders and 

orders matching such price-improving 

orders entered via the electronic 

interface with AUTOM described in this 

Commentary .04 and that are resting on 

the limit order book.

If the Exchange for any reason 

determines not to deploy Phlx XL, or if, 

following the initial deployment of the 

Phlx XL system, the deployment of Phlx 

XL is terminated for any reason, then 

the Exchange shall, within 30 days of 

such determination not to deploy Phlx 

XL or termination, ensure that the 

AUTOM system (or any successor 

thereto) automatically executes eligible 

incoming option orders against Phlx 

Price Improving ROT and specialist 

price improving orders and orders 

matching such price-improving orders 

entered via the electronic interface with 

AUTOM described in this Commentary 

.04 and that are resting on the limit 

order book. In such event, the Exchange 

shall, at the time of such termination, 

identify to the Commission and to 

members and member organizations the 

options subject to such automatic 

execution, and shall cause all options to 

be subject to automatic execution by 

April 30, 2005.

.05–.07 No change. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Phlx included statements concerning 

the purpose of, and basis for, the 

proposed rule change and discussed any 

comments it received on the proposed 

rule change. The text of these statements 

may be examined at the places specified 

in item III below. The Phlx has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to amend Exchange Rule 1080, 

Commentary .04, to reflect the proposed 

Federal Register / Vol. 69, No. 26 / Monday, February 9, 2004 / Notices 6011

7See Securities Exchange Act Release No. 46763 

(November 1, 2002), 67 FR 68898 (November 11, 

2002) (‘‘ROT Access Proposal’’). According to Phlx, 

the ROT Access Proposal was submitted as a 

temporary solution in response to the Order 

Instituting Public Administrative Proceedings 

Pursuant to Section 19(h)(1) of the Securities 

Exchange Act of 1934, Making Findings and 

Imposing Sanctions, Securities Exchange Act 

Release No. 43268 (September 11, 2000) and 

Administrative Proceeding File 3–10282 (the 

‘‘Order’’), which requires, among other things, that 

the respondent exchanges, including the Phlx, 

adopt new, or amend existing, rules concerning its 

automated quotation systems which substantially 

enhance incentives to quote competitively and 

substantially reduce disincentives for market 

participants to act competitively (the ‘‘Competitive 

Quoting Undertaking’’).

8See Phlx XL Proposal, supra note 6.

9 Id.

10 Id.

11The automatic execution of eligible orders 

against ROT limit orders on the limit order book is 

a proposed functionality of Phlx XL. Thus, such 

automatic execution would be effective for those 

options traded on Phlx XL upon deployment of the 

Phlx XL platform.

deployment of the Exchange’s proposed 

new options trading platform, Phlx XL. 

a. Background

In November 2002, the Commission 

approved proposed amendments to 

Exchange Rules 1080 and 1014 adopting 

a feature of AUTOM known as ‘‘ROT 

Access’’ to: (i) allow ROTs and 

specialists to enter price improving 

limit orders via electronic interface with 

AUTOM, subject to certain 

contingencies, and (ii) set forth special 

crowd priority, parity and trade 

allocation rules that would only apply 

to price-improving ROT and specialist 

price improving orders entered via 

electronic interface with AUTOM.7

b. The Modified System 

Currently, under ROT Access, 

inbound orders eligible for execution 

against price-improving ROT limit 

orders entered via the electronic 

interface and orders matching such 

price-improving limit orders are 

manually executed by the specialist. 

The Exchange represented in its rules 

relating to ROT Access that the 

Exchange would modify its AUTO–X 

system not later than January 2004, so 

that it would automatically execute 

eligible incoming orders against Phlx 

Price Improving ROT and specialist 

price improving orders and orders 

matching such price-improving orders 

entered via electronic interface with 

AUTOM resting on the limit order book 

(the ‘‘Modified System’’). Pursuant to 

Commentary .04 to Phlx Rule 1080, the 

Exchange would deploy the Modified 

System over a 15-month period. 

Since the adoption of that provision, 

the Exchange has commenced the 

technological development of, and filed 

for Commission approval of rules 

relating to, its electronic trading 

platform, ‘‘Phlx XL,’’ on a six-month 

pilot basis.8 The Exchange represents to 

the Commission that: (i) Phlx XL, which 

would allow ROTs to stream 

competitive proprietary option 

quotations into the Exchange’s system 

in certain options designated by the 

Options Committee as ‘‘Streaming 

Quote Options,’’ would represent the 

Exchange’s permanent response to the 

Competitive Quoting Undertaking, and 

(ii) ROT limit orders placed 

electronically onto the limit order book 

via the electronic interface in Streaming 

Quote Options would be executed 

automatically, thus obviating the need 

for the Modified System for Streaming 

Quote Options (i.e., those options traded 

on Phlx XL).

c. ROT Access and Phlx XL 

Currently, ROTs are permitted by rule 

to enter electronic price improving limit 

orders (and orders matching such limit 

orders entered electronically by the 

specialist or other ROTs in the trading 

crowd) onto the limit order book via 

electronic interface with AUTOM, and 

are entitled to receive a special 

allocation in trades stemming from such 

price improving limit orders. Such 

price-improving limit orders must be for 

at least the lesser of the AUTO–X 

guarantee for the option (currently 

defined as the Exchange’s disseminated 

size) or 20 contracts. Under the Phlx XL 

Proposal, ROTs would continue to be 

permitted under Exchange Rule 

1080(b)(i)(B) and Commentary .04 to 

that rule to place certain limit orders on 

the limit order book electronically. 

Under the Phlx XL Proposal, the 

requirement that such limit orders be 

price-improving orders would be 

deleted. Instead, ROTs would be 

permitted to place limit orders, 

including Good-Till-Cancelled (‘‘GTC’’) 

orders, on the limit order book, 

regardless of whether such an order 

improves the then-prevailing Exchange 

market. This would apply to ROT limit 

orders entered onto the limit order book 

electronically in both Streaming Quote 

Options trading on Phlx XL, and in nonStreaming Quote Options that are not 

traded on Phlx XL. ROTs entering limit 

orders on the book in both Streaming 

Quote Options and non-Streaming 

Quote Options would be required to 

submit such orders with a size of at least 

10 contracts. Respecting non-Streaming 

Quote Options (not traded on Phlx XL), 

inbound orders eligible for execution 

against such limit orders would be 

executed and allocated manually by the 

specialist, as they are today. 

Respecting Streaming Quote Options, 

inbound AUTOM orders or electronic 

quotations eligible for execution against 

ROT orders entered into AUTOM via 

electronic interface by ROTs who elect 

not to stream proprietary quotations in 

such options would be automatically 

executed and would be allocated 

automatically pursuant to proposed 

Exchange rules relating to Streaming 

Quote Options.9

d. The Phlx XL Rollout and the 

Competitive Quoting Undertaking 

Because the Exchange believes that 

Phlx XL will ultimately be deployed for 

all options traded on the Exchange 

floor-wide, the Exchange does not 

believe it is necessary or prudent to 

invest the resources required to deploy 

the Modified System described in 

current Rule 1080, Commentary .04, 

unless the Phlx XL trading platform 

ceases to be used by the Exchange for 

any reason (which the Exchange does 

not contemplate), or if the Exchange 

ultimately determines not to deploy the 

Phlx XL platform for all options. 

Because Phlx XL provides for the 

automatic execution of eligible 

incoming orders against ROT limit 

orders, the Exchange believes that it can 

satisfy the requirement of the 

Competitive Quoting Undertaking as it 

relates to the automatic execution of 

ROT limit orders upon the deployment 

of Phlx XL and as the Exchange 

successively introduces additional 

options to trade on that platform. 

Contingent upon Commission 

approval of the proposed rules relating 

to Phlx XL, and the completion of 

system development, the Exchange 

would commence deployment of Phlx 

XL beginning with approximately 10 

options, pursuant to the deployment 

schedule set forth in the Phlx XL 

Proposal.10 The Exchange has not yet 

determined a floor-wide deployment 

date.

The Exchange, following the initial 

deployment of Phlx XL, would not be 

automatically executing inbound orders 

against ROT limit orders in options that 

are not traded on Phlx XL (thus not 

providing such automatic executions in 

all options). To ensure that the 

Exchange is in compliance with the 

Competitive Quoting Undertaking, the 

Exchange has filed this proposal. 

The proposed rule provides that the 

Exchange would commence the 

automatic execution of ROT limit orders 

on the limit order book in options 

traded on Phlx XL within 10 days of the 

Commission’s approval of the system, 

subject to the various extenuating 

circumstances described below.11

6012 Federal Register / Vol. 69, No. 26 / Monday, February 9, 2004 / Notices 

12 15 U.S.C. 78f(b).

13 15 U.S.C. 78f(b)(5).

14 In approving this proposal, the Commission has 

considered its impact on efficiency, competition, 

and capital formation. 15 U.S.C. 78c(f).

15 15 U.S.C. 78f(b)(5).

16See ROT Access Proposal, supra note 7.

i. If Phlx XL Is Not Deployed or Is 

Terminated for Any Reason 

If the Exchange determines not to 

deploy Phlx XL or if the deployment of 

Phlx XL is terminated for any reason 

(which is not contemplated by the 

Exchange), then the Exchange would, 

within 30 days of such determination or 

termination, ensure that the AUTOM 

system automatically executes eligible 

incoming option orders against Phlx 

Price Improving ROT and specialist 

price improving orders and orders 

matching such price-improving orders 

entered via the electronic interface with 

AUTOM, consistent with the Modified 

System. The Exchange would identify 

the options subject to such automatic 

execution, and would cause all options 

to be subject to automatic execution by 

April 30, 2005.

ii. If Phlx XL Is Deployed For Less Than 

All Options 

The proposed rule would further 

provide that, if the Phlx XL system is in 

operation on April 30, 2005, but less 

than all of the options traded on the 

Exchange are Streaming Quote Options 

(thus traded on Phlx XL), then the 

Exchange would, as of April 30, 2005, 

ensure that the AUTOM system 

automatically executes eligible 

incoming orders in options that are not 

then Streaming Quote Options against 

Phlx Price Improving ROT and 

specialist price improving orders, 

consistent with the original proposal for 

the Modified System. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with section 6(b) 

of the Act,12 in general, and furthers the 

objectives of section 6(b)(5) of the Act,13

in particular, in that it is designed to 

perfect the mechanisms of a free and 

open market and the national market 

system, protect investors and the public 

interest and promote just and equitable 

principles of trade by enabling the 

Exchange to continue the development 

and deployment of Phlx XL while 

continuing to enhance the automatic 

execution of ROT limit orders on the 

limit order book which, as interpreted 

by Commission staff, forms a part of the 

requirements of the Competitive 

Quoting Undertaking.

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any inappropriate burden on 

competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change, as amended, is consistent with 

the Act. Persons making written 

submissions should file six copies 

thereof with the Secretary, Securities 

and Exchange Commission, 450 Fifth 

Street, NW., Washington, DC 20549–

0609. Comments may also be submitted 

electronically at the following e-mail 

address: rule-comments@sec.gov. All 

comment letters should refer to File No. 

SR–Phlx–2004–01. This file number 

should be included on the subject line 

if e-mail is used. To help the 

Commission process and review 

comments more efficiently, comments 

should be sent in hard copy or by email, but not by both methods. Copies 

of the submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room. Copies of such filing will also be 

available for inspection and copying at 

the principal office of the Phlx. All 

submissions should refer to File No. 

SR–Phlx–2004–01 and should be 

submitted by March 1, 2004. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of 

Proposed Rule Change 

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder 

applicable to a national securities 

exchange.14 In particular, the 

Commission finds that the proposed 

rule change is consistent with section 

6(b)(5) of the Act, which requires that 

the rules of an exchange be designed to 

promote just and equitable principles of 

trade, remove impediments to and 

perfect the mechanism of a free and 

open market and a national securities 

system, and protect investors and the 

public interest.15

The Commission believes that this 

proposed rule change should assist the 

Exchange by allowing it to focus its 

resources on the development and 

deployment Phlx XL, which, if 

approved by the Commission, will be its 

new electronic trading platform for 

options and its permanent response to 

the Competitive Quoting Undertaking. 

The instant proposal should help Phlx 

to avoid the duplication of technological 

efforts by allowing the Exchange to 

fulfill its Competitive Quoting 

Undertaking with the deployment of 

Phlx XL, which would occur within 10 

days of Commission approval of the 

system. Thus, Phlx will be able to avoid 

altering the Modified System for 

compliance purposes while 

simultaneously developing a successor 

system, which would also be designed 

to fulfill the undertaking. The Exchange 

represents that Phlx XL would be 

designed to automatically execute 

eligible incoming option orders against 

orders placed electronically on the 

Exchange’s limit order book by ROTs. 

The Exchange also represents that if the 

Phlx XL is either never deployed or 

deployed and subsequently terminated 

for any reason the Exchange would 

ensure that the AUTOM system, or any 

successor system, would include the 

functionality to automatically execute 

eligible incoming option orders against 

Phlx Price Improving ROTs’ and 

specialists’ price improving orders and 

orders matching such price-improving 

orders entered via the electronic 

interface with AUTOM within 30 days 

of the determination not to deploy or 

termination of Phlx XL. In addition, the 

Exchange would insure that the 

AUTOM system would provide the 

automatic execution functionality 

described above by April 30, 2005, if 

Phlx XL were not operable for all 

options traded on the Exchange by that 

date. 

The Commission believes this 

proposed rule change, as amended, 

should allow Phlx to maximize the use 

of its resources in its efforts to comply 

with the Competitive Quoting 

Undertaking in a timely fashion as set 

forth in the Order. Further, the 

Commission notes that Phlx had 

previously committed to modify its 

Automatic Execution System (AUTO–X) 

no later than January 2004, and deploy 

the system over a 15-month period.16 In 

the instant proposal, Phlx maintains its 

commitment to cause all options to be 

Federal Register / Vol. 69, No. 26 / Monday, February 9, 2004 / Notices 6013

17 15 U.S.C. 78s(b)(2).

18 15 U.S.C. 78s(b)(2).

19 17 CFR 200.30–3(a)(12).

subject to automatic execution by April 

30, 2005 (i.e., 15 months from January 

2004), thus, the ultimate timetable that 

ROT Limit Orders in all options on the 

Exchange would be subject to automatic 

execution would be unchanged. 

Accordingly, the Commission finds 

good cause, pursuant to section 19(b)(2) 

of the Act,17 for approving the proposed 

rule change, as amended, prior to the 

30th day after the date of publication of 

notice thereof in the Federal Register.

V. Conclusion 

It is therefore ordered, pursuant to 

section 19(b)(2) of the Act,18 that the 

proposed rule change (SR–Phlx–2004–

01), as amended, is hereby approved on 

an accelerated basis.

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.19

Margaret H. McFarland, 

Deputy Secretary.

[FR Doc. 04–2647 Filed 2–6–04; 8:45 am] 

BILLING CODE 8010–01–P

TENNESSEE VALLEY AUTHORITY

Environmental Impact Statement for 

Paradise-Wilson 500-kV Transmission 

System Upgrades

AGENCY: Tennessee Valley Authority.

ACTION: Notice of intent.

SUMMARY: This notice is provided in 

accordance with the Council on 

Environmental Quality’s regulations (40 

CFR 1506.6), Section 106 of the National 

Historic Preservation Act and its 

implementing regulations (36 CFR part 

800) and the Tennessee Valley 

Authority (TVA) procedures for 

implementing the National 

Environmental Policy Act (NEPA). TVA 

will prepare an environmental impact 

statement (EIS) addressing the proposed 

construction and operation of a new 

500-kilovolt (kV) transmission line and 

other transmission system upgrades in 

Kentucky and Tennessee. The proposed 

transmission line would extend from 

TVA’s Paradise Fossil Plant in 

Muhlenberg County, Kentucky, to 

TVA’s Wilson 500-kV Substation in 

Wilson County, Tennessee. Depending 

on the route, the proposed line could 

involve portions of Muhlenberg, Butler, 

Simpson, Warren, Logan, Allen, and 

Ohio Counties in Kentucky and parts of 

Robertson, Sumner, and Wilson 

Counties in Tennessee. Proposed 

transmission system upgrades include 

uprating 52 miles of TVA’s ParadiseMontgomery 500-kV line from 2000 

amps to 3000 amps and the replacement 

of conductors (i.e., wires) on 

approximately 6 miles of TVA’s WilsonGladeville 161-kV transmission line. In 

the EIS, TVA will evaluate the potential 

environmental impacts of the 

construction, operation, and 

maintenance of the new line and other 

system upgrades. As part of its EIS 

process, TVA will include public 

involvement on this proposal. Public 

comment is invited concerning both the 

scope of the EIS and environmental 

issues that should be addressed as a part 

of this EIS.

DATES: Comments on the scope and 

environmental issues for the EIS must 

be postmarked or e-mailed no later than 

March 26, 2004, to ensure 

consideration. Late comments will be 

considered if possible.

ADDRESSES: Written comments should 

be sent to James F. Williamson, Jr., 

Senior NEPA Specialist, Environmental 

Policy and Planning, Tennessee Valley 

Authority, WT 8C, 400 West Summit 

Hill Drive, Knoxville, Tennessee 37902–

1499. Comments may be e-mailed to 

jfwilliamson@tva.gov.

FOR FURTHER INFORMATION CONTACT:

Hugh S. Barger, Environmental 

Engineer, Transmission/Power Supply, 

Tennessee Valley Authority, MR 4G–C, 

1101 Market Street, Chattanooga, 

Tennessee 37402–2801, or telephone 1–

800–362–4355. E-mail may be sent to 

hsbarger@tva.gov.

SUPPLEMENTARY INFORMATION:

Background 

Peabody Energy Corporation plans to 

construct and operate the Thoroughbred 

Energy Campus, which would consist of 

a 1,500 megawatt power plant and mine 

complex, in northern Muhlenberg 

County, Kentucky. The Federal Power 

Act, as amended, requires operators of 

transmission systems to provide 

interconnection access to independent 

power generators. Peabody has 

requested interconnection to the TVA 

power transmission system and would 

use the TVA transmission system to 

distribute as much as half of the 1,500 

megawatts of electric power generated 

by the Thoroughbred plant. Because 

interconnection service would be 

provided at Peabody’s request, Peabody 

will reimburse TVA for the cost of 

necessary upgrades to its transmission 

system. The planned upgrades are 

necessary to accommodate Peabody’s 

request and maintain the reliability of 

the TVA transmission system. 

Project Description 

In order to interconnect to the TVA 

transmission system, Peabody Energy 

Corporation would construct and 

operate a new 13-mile-long 500-kV 

transmission line from the 

Thoroughbred plant to the switchyard at 

TVA’s Paradise Fossil Plant. To 

maintain reliability of its transmission 

system, TVA would construct and 

operate a new 500-kV transmission line 

from TVA’s Paradise Fossil Plant to 

TVA’s Wilson 500-kV substation located 

about 10 miles west of Lebanon, 

Tennessee. This proposed line would 

likely be about 90 miles long, depending 

on the final route alignment. Neither 

detailed routing studies nor line design 

studies have yet been conducted. The 

Kentucky portion of the proposed line 

route is primarily rural, consisting of 

forested areas, reclaimed strip mines, 

and scattered agriculture. The 

Tennessee portion contains developing 

suburban areas along with mixed 

agricultural land uses. The line would 

likely be built using self-supporting, 

laced steel towers on 175-foot-wide 

right-of-way. The structure type, rightof-way characteristics, and line length 

remain to be determined and could 

change when additional information is 

gathered. 

Line construction would require 

removal of trees within the line right-ofway as well as any other nearby tall 

trees that would endanger the safe 

operation of the line.

Construction of the support structures 

would require the excavation of 

foundations for the tower legs. Cranes 

and other heavy equipment would be 

needed for tower construction and to 

pull the electrical conductors into place. 

After construction, the disturbed areas 

would be restored, and the right-of-way 

would be maintained periodically to 

control the growth of tall vegetation that 

could endanger the line. A detailed 

description of these activities, as well as 

applicable and appropriate 

environmental protection measures, will 

be provided in the EIS. 

TVA also proposes to upgrade 

portions of two of its existing 

transmission lines. The 52-mile-long 

Paradise-Montgomery 500-kV 

transmission line would be uprated 

from 2000 amps to 3000s amps by retensioning the line (i.e., removing 

excess slack to allow adequate clearance 

between the conductors and the 

ground). This line is located in 

Muhlenberg and Todd Counties, 

Kentucky, and in Montgomery County, 

Tennessee. Also, the electrical 

conductors would be replaced on about 

6 miles of the Wilson-Gladeville 161-kV