Opinion ID: 2040616
Heading Depth: 1
Heading Rank: 5

Heading: Evidentiary Support for the Commission's Order.

Text: Petitioner's challenge to the evidentiary support for the commission's order is twofold: (1) that the order is not supported by substantial evidence in the record made before the agency when that record is viewed as a whole, and (2) that the district court did not sufficiently consider the entire record in concluding that the order was supported by substantial evidence. Just as the district court, we are charged to apply the substantial evidence review standards of section 17A.19(8)(f) to the agency record. Northwestern Bell Telephone Co., 359 N.W.2d at 495. For this reason, our consideration of the first contention advanced by petitioner removes any need to consider the second contention. Before granting a franchise to a public utility company to construct, operate or maintain an electric transmission line, the commission was required to make a finding that the proposed line was necessary to serve a public use and represents a reasonable relationship to an overall plan of transmitting electricity in the public interest. Iowa Code § 478.4. DPC in support of its franchise request contended and offered evidence which demonstrated there had been substantial voltage drops in the feeder lines in the area where the new substation would be constructed and that, if its projections with respect to electrical demand were correct, such voltage drops would increase. While petitioner correctly notes that the record evidence of such voltage drops does not indicate they were sufficient to cause damage to equipment utilized by power consumers in the affected area, the commission's regulations, 250 Iowa Admin.Code 20.7(2), 20.7(4), 20.7(5), and 20.5(2)(g), require a utility company to be resolute in planning for and determining in advance when improvements will be required to meet the minimum standards imposed by those regulations. DPC offered evidence that the lines in the general area of the proposed substation are approaching their maximum loading capability. In addition to its evidence on voltage drop, DPC offered evidence before the commission indicating that the additional facility will substantially improve its ability to meet a single contingency power outage in a manner that will provide minimal loss of service to its customers. In the absence of the proposed project in the event of a power loss in the area, there is no other substation available to carry the additional load. Therefore, service cannot be restored until the contingency causing the outage has been corrected. With the installation of the proposed facility, it will be possible to transfer power to the area from another source while necessary repairs are taking place. The commission, in accepting DPC's testimony in this regard, noted its approval of practices designed to handle single contingency outages in a manner causing minimal effect on utility customers. Petitioner challenged the method used by DPC in projecting future power needs in the affected area. The load forecasting methodology used by DPC was a time series trend analysis or linear regression analysis. Simply stated, it involves a schematic representation made by a straight line drawn through dots on graph paper representing past experience. Historical system peak is plotted for a period of fifteen to twenty years by use of an eyeball fit to the desired year. While the agency agreed that this method for forecasting future power demands was relatively unsophisticated, it deemed it to be significant that no other known method would project such demand with complete accuracy. The commission's order concluded that a forecast is only one factor in assessing the need for distribution system improvements. In its opinion, present inadequacies may have to be corrected based solely on current information. DPC presented evidence from which the commission could and did conclude that the proposed system changes were necessary to meet existing needs and, because of the additional future capacity which such changes provided, constituted a reasonable effort to provide for future needs. In response to petitioner's contentions that the proposed project was not integrated into an overall plan, evidence produced by DPC indicated and the agency found that the proposed substation and transmission line had been included in DPC's construction plans since the year 1976. During the interim, the evidence shows that, in an effort to forestall the need for the proposed substation, lines in the affected area had been upgraded by installation of larger conductors, a solution which was ineffective in meeting the perceived voltage drop or in reducing time of single contingency power outages. Petitioner also contends that the record fails to show that the proposed project is cost-effective. The commission reviewed the estimated cost of the proposed project and found that it was not unreasonable based upon the demonstrated need for the project. Its decision recognizes the difficulties of engaging in an accurate cost benefit study on a project which affects a relatively small number of customers. As a result, the commission concluded that in some instances the distribution of power in rural areas may require that the cost of benefits to a few customers be shared by a substantially larger group of customers. We cannot determine on the present record that this conclusion is invalid or not properly applied with respect to DPC's present application for franchise. Finally, in regard to petitioner's claim that DPC might have selected a different location for the substation, the commission noted that, while other locations might have been selected, the evidence demonstrated that the location selected was reasonable based upon location of the load center of the area to be served and the ability to secure easements over perhaps the shortest distance available along property division lines. This conclusion is supported by evidence which shows that, while alternative routes were available, it is likely that they would require longer distances, would produce an overall increase in cost and would disadvantage more property owners. The petitioner produced the testimony of two expert witnesses who contradicted DPC's evidence as to the perceived power needs in the affected area and who opined that other solutions were available to solve the voltage drop and outage problems. While this evidence controverted the contentions of DPC's witnesses in several respects, the issue which remains is a factual dispute for the agency to resolve. We believe that the ultimate conclusion required to be made in the present proceeding was one peculiarly entrusted by law to the commerce commission's expertise. The commission's finding pursuant to section 478.4 that the proposed project was necessary to serve a public use and represented a reasonable relationship to an overall plan of transmitting electricity in the public interest quite clearly is supported by substantial evidence in the record made before that agency when the record is viewed as a whole. Accordingly, we do not disturb the commission's findings and conclusions. We have considered all issues urged, whether or not specifically referred to or discussed herein, and agree with the district court that petitioner has demonstrated no basis for relief from the commission's order. The judgment of the district court is affirmed. AFFIRMED.