IN THE MATTER OF THE PETITION OF JERSEY CENTRAL POWER LIGHT COMPANY PURSUANT TO N.J.S.A. 40:55D-19 FOR A DETERMINATION THAT THE MONTVILLE-WHIPPANY 230 KV TRANSMISSION PROJECT IS REASONABLY NECESSARY FOR THE SERVICE, CONVENIENCE OR WELFARE OF THE PUBLIC
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SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
DOCKET NO. A-2183-17T3
IN THE MATTER OF THE
PETITION OF JERSEY CENTRAL
POWER & LIGHT COMPANY
PURSUANT TO N.J.S.A. 40:55D-19
FOR A DETERMINATION THAT
THE MONTVILLE-WHIPPANY 230
KV TRANSMISSION PROJECT IS
REASONABLY NECESSARY FOR
THE SERVICE, CONVENIENCE
OR WELFARE OF THE PUBLIC.
___________________________________
Submitted October 3, 2019 – Decided November 1, 2019
Before Judges Nugent and DeAlmeida.
On appeal from the New Jersey Board of Public
Utilities, Docket No. EO15030383.
Weiner Law Group LLP, attorneys for appellant
Montville Township Board of Education (Stephen J.
Edelstein, of counsel and on the brief; Aimee S.
Weiner, on the brief).
Cozen O'Connor, PC, attorneys for respondent Jersey
Central Power & Light Company (Gregory Eisenstark,
on the brief).
Gurbir S. Grewal, Attorney General, attorney for
respondent New Jersey Board of Public Utilities (Jason
W. Rockwell, Assistant Attorney General, of counsel;
Andrew M. Kuntz, Deputy Attorney General, on the
brief).
PER CURIAM
Appellant Montville Township Board of Education (BOE) challenges the
November 21, 2017 final order of respondent New Jersey Board of Public
Utilities (BPU) granting the petition of respondent Jersey Central Power & Light
Company (JCP&L) to construct a transmission line project not subject to the
Municipal Land Use Law (MLUL), N.J.S.A. 40:55D-1 to -163, or any other
governmental ordinances or regulations, permits, or license requirements made
under the authority of the MLUL. We affirm.
I.
The following facts are derived from the record. JCP&L is a public utility
in the business of purchasing, distributing, transporting, and selling electricity
to approximately 1.1 million customers in New Jersey. It is subject to BPU's
regulatory supervision and control. See N.J.S.A. 48:2-13(a).
JCP&L filed a petition with the BPU pursuant to N.J.S.A. 40:55D-19
seeking approval to construct a seven-mile long 230 kV transmission line
between its substations in East Hanover Township and Montville Township (the
A-2183-17T3
2
Project). The transmission line will be constructed in thirteen segments, mostly
along existing transmission lines in JCP&L's existing right of way (ROW). The
Project also includes upgrades to the two substations. The petition required BPU
to determine whether the Project is reasonably necessary for the service,
convenience, or welfare of the public and is, therefore, not subject to zoning and
land use ordinances, or other government regulations enacted pursuant to the
MLUL.
BPU transferred the petition to the Office of Administrative Law for a
hearing. BOE thereafter intervened. 1 An Administrative Law Judge (ALJ) held
a three-day evidentiary hearing at which JCP&L presented live and pre-filed
testimony describing the need for the new transmission line.
The ALJ found that PJM Interconnection, LLC (PJM), a regional
transmission organization, was approved by the Federal Energy Regulatory
Commission to plan the region's electricity transmission grid. PJM ensures
transmission owners, including JCP&L, comply with North American Electric
Reliability Corporation (NERC) reliability standards.
1
Montville Township also intervened, but resolved its objections to the Project
through a stipulation with JCP&L altering the Project's route.
A-2183-17T3
3
PJM's responsibilities include identifying violations of NERC's reliability
criteria. There are three categories of conditions used to assess criteria
violations: (1) Category A examines whether a system functions properly and
can meet customer demand needs under normal operating conditions; (2)
Category B examines system function when there is a loss of any single
generating unit, transmission line, transformer, circuit breaker, capacitor, or
single pole of a bi-polar transmission line; and (3) Category C examines system
functionality when there are events resulting in the loss of any Category B
element followed by the loss of a second element in the transmission system.
In 2012, PJM identified a Category C reliability violation in JCP&L's bulk
electric system resulting from the hypothetical outage of the Montville-Roseland
230 kV line followed by the loss of either the Kittatinny-Newton 230 kV line or
the Newton-Montville 230 kV line. This scenario would result in an interruption
in service affecting approximately 86,719 JCP&L customers and violate PJM's
planning criteria. A failure of this magnitude also could result in significant
financial penalties for JCP&L. PJM determined the Project, if constructed,
would address the criteria violation.
JCP&L presented testimony detailing its consideration of alternative
routes and methods to address the criteria violation. The utility considered
A-2183-17T3
4
constructing a 115 kV transmission line, but rejected that option because its
substations were not designed to support an additional 115 kV circuit, and an
additional 115 kV line would not provide a satisfactory level of resilience.
JCP&L also considered placing a 230 kV transmission line underground. The
utility rejected this option because the underground transmission line would: (1)
create several environmental issues related to wetlands and other sensitive areas;
(2) multiply the costs of the Project by four to ten times; (3) increase the
magnetic field exposure at ground level because the transmission line would be
closer to the surface; and (4) increase repair time of the transmission line.
JCP&L also performed a routing study that considered three alternative
routes. One of the alternatives had two alternate segments. The routing study
concluded the proposed route was superior because it is the shortest, minimizes
the overall effect of the Project on the natural and human environment, avoids
unreasonable costs and special design requirements, and best complies with the
BPU's requirement concerning the use of existing ROWs because eighty-nine
percent of the route parallels or rebuilds existing transmission lines.
JCP&L presented two expert witnesses to discuss the effects of electric
and magnetic fields (EMF), audible noise, and radio noise associated with the
A-2183-17T3
5
Project. The experts concluded the EMF exposure when the Project is operating
would be well below State and international exposure limits.
At the hearing, BOE's President testified. She was not qualified as an
expert witness in any field. She explained BOE takes issue with segment 10 of
the Project, which calls for the construction of a transmission line adjacent to
one of BOE's schools, the Robert R. Lazar Middle School. The new
transmission line would be carried on new 110-foot-tall monopoles constructed
next to existing transmission lines in an existing JCP&L ROW abutting the
property on which the school is located. The new monopoles will be seventy
feet from the edge of the ROW and approximately 175 feet closer to the school
than the existing transmission lines. Some of the trees that presently serve as a
buffer between the school and the existing transmission line would be removed.
The BOE President expressed concern regarding the height of the new
monopoles and their proximity to the school. She stated that the BOE was
concerned about the potential health effects on students and faculty arising fro m
exposure to EMF and noise from the Project. BOE offered no expert testimony
to substantiate its concern or any evidence with respect to the EMF and noise it
contends would be generated by the Project. The BOE President also testified
BOE has aesthetic concerns related to vegetation clearance near the school and
A-2183-17T3
6
the visual prominence of the new monopoles from school property. Finally, the
BOE President testified BOE was concerned the Project would limit potential
expansion of the school building due to the proximity of the new monopoles.
BOE did not identify any present plans for expansion of the school and offered
no expert testimony opining on potential building expansion limitations.
In rebuttal, JCP&L offered testimony from three witnesses with expertise
in electric transmission facilities confirming the Project will meet all safety and
design criteria, including with respect to EMF exposure and noise. In addition,
the witnesses testified the proposed new monopoles will be shorter than existing
structures. The witnesses also testified no building expansion would be allowed
in JCP&L's existing ROW, whether or not the Project is constructed, and the
Project would not affect construction outside the ROW.
The ALJ issued an initial decision concluding the Project is reasonably
necessary for the service, convenience, or welfare of the public to enable JCP&L
to provide safe, adequate, and reliable service. BOE filed exceptions.
On November 21, 2017, BPU issued a final order adopting the ALJ's
initial decision in part 2, finding:
(1) That, in light of the NERC criteria violation and
reliability concerns identified in this proceeding, there
2
BPU modified the decision to account for the Montville/JCP&L stipulation.
A-2183-17T3
7
is no reasonable, practical, and permanent alternative to
the construction and operation of the Project that would
have any less adverse impact upon the environment,
surrounding community, or local land use ordinances;
(2) That JCP&L conducted a good faith, reasonable,
and extensive analysis of alternative methods for the
Project, and the Project represents the most effective
and efficient solution to the expected reliability criteria
violations;
(3) That the findings contained within this Order are
the result of a thorough and complete review of the
record in the proceeding. The Board's findings are
limited to the facts and circumstances of this particular
Project along this particular route and shall not be
construed as a determination by this Board on any other
application[; and]
(4) That the Project as proposed is to be designed and
constructed in accordance with all applicable industry
standards in a manner that will minimize impacts upon
the environment, to the extent known or predictable[.]
In light of these findings, BPU determined JCP&L met its burden of proof under
N.J.S.A. 40:55D-19 and ordered "that neither N.J.S.A. 40:55D-1, et seq., nor
any other governmental ordinances or regulations, permits or license
requirements made under the authority of N.J.S.A. 40:55D-1, et seq. shall apply
to the siting, installation, construction, or operation of the Project . . . ."
This appeal followed. BOE makes the following arguments for our
consideration:
A-2183-17T3
8
POINT I
UNDER THE APPLICABLE STANDARD OF
REVIEW, THE BPU'S DECISION MUST BE
REVERSED.
POINT II
THE BPU ERRED WHEN IT DETERMINED THAT
JCP&L DEMONSTRATED THAT THE PROJECT IS
REASONABLY NECESSARY FOR THE SERVICE,
CONVENIENCE, OR WELFARE OF THE PUBLIC.
POINT III
THE BPU'S DECISION IS INCONSISTENT WITH
ITS PRIOR DIRECTIVE THAT REASONABLE
EFFORTS SHOULD BE MADE TO INCREASE THE
DISTANCE BETWEEN TRANSMISSION LINES
AND THE LAZAR MIDDLE SCHOOL.
POINT IV
THE BPU ERRONEOUSLY CONCLUDED THAT
JCP&L CONSIDERED ALTERNATIVE ROUTES
AND METHODS, INCLUDING THOSE RAISED BY
THE BOARD.
i. THE BOARD PROPOSED, AND JCP&L
FAILED TO ADEQUATELY CONSIDER, A 115 KV
LINE ALTERNATIVE AND ITS ADVANTAGES AS
COMPARED TO THE PROPOSED PROJECT.
ii. JCP&L FAILED TO ADEQUATELY
CONSIDER A PARTIALLY UNDERGROUND
ALTERNATIVE AND ITS ADVANTAGES AS
COMPARED TO THE PROPOSED PROJECT.
A-2183-17T3
9
iii. JCP&L FAILED TO ADEQUATELY
CONSIDER AN UNDER-BUILD ALTERNATIVE AT
THE LAZAR MIDDLE SCHOOL PROPERTY AND
ITS ADVANTAGES AS COMPARED TO THE
PROPOSED PROJECT.
II.
The scope of our review of a final decision of an administrative agency is
limited and we will not reverse such a decision unless it is "arbitrary, capricious,
or unreasonable, or . . . not supported by substantial credible evidence in the
record as a whole." In re Stallworth, 208 N.J. 182, 194 (2011) (citing Henry v.
Rahway State Prison, 81 N.J. 571, 579-80 (1980)). When making that
determination, we consider:
(1) whether the agency's action violates express or
implied legislative policies, that is, did the agency
follow the law; (2) whether the record contains
substantial evidence to support the findings on which
the agency based its action; and (3) whether in applying
the legislative policies to the facts, the agency clearly
erred in reaching a conclusion that could not reasonably
have been made on a showing of the relevant factors.
[Ibid. (citing In re Carter, 191 N.J. 474, 482-83
(2007)).]
We are, however, "in no way bound by the agency's interpretation of a statute
or its determination of a strictly legal issue." Carter, 191 N.J. at 483 (quoting
Mayflower Sec. Co. v. Bureau of Sec., 64 N.J. 85, 93 (1973)).
A-2183-17T3
10
When reviewing BOE's arguments we remain mindful that "[t]he
Legislature has endowed the BPU with broad power to regulate public utilities
[and] considerable discretion in exercising those powers." In re Pub. Serv. Elec.
& Gas Co.'s Rate Unbundling, 167 N.J. 377, 384-85 (2001) (quoting In re
Elizabethtown Water Co., 107 N.J. 440, 449-50 (1987)). The Board's decisions
are presumed to be valid "and will not be disturbed unless [the court] find[s] a
lack of 'reasonable support in the evidence.'" Id. at 385 (quoting In re Jersey
Cent. Power & Light Co. 85 N.J. 520, 527 (1981)).
BPU is authorized by statute to approve a public utility's proposed use of
its property without the need to comply with ordinances or regulations enacted
pursuant to the MLUL. According to N.J.S.A. 40:55D-19, where, after a
hearing, BPU finds a public utility's proposed use of land
is necessary for the service, convenience or welfare of
the public . . . and that no alternative site or sites are
reasonably available to achieve an equivalent public
benefit, the public utility . . . may proceed in accordance
with such decision of the [BPU], any ordinance or
regulation made under the authority of [the MLUL]
notwithstanding.
When making a determination under the statute, BPU must weigh the interests
of all parties. Where the interests are equal, "the utility is entitled to the
preference, because the legislative intent is clear that the broad public interest
A-2183-17T3
11
to be served is greater than local considerations." In re Public Serv. Elec. & Gas
Co., 35 N.J. 358, 377 (1961). A utility need not prove that a proposed project
is "absolutely or indispensably[] necessary" but only that it is "reasonably
necessary" for the service, convenience, or welfare of the public. Ibid.
After a careful review of the record in light of these precedents, we
conclude there is substantial credible evidence supporting BPU's final order.
BPU found credible the testimony of numerous witnesses, including experts,
detailing the reliability criteria violation in JCP&L's present transmission
system and how the Project will address that violation and enhance the utility's
resilience. BOE raises no convincing argument that BPU's decision is lacking
in evidentiary support or that the agency acted outside its statutory authority .
In addition, BPU considered detailed testimony explaining the alternate
transmission routes and configurations considered by JCP&L before it
determined the route and configurations for which JCP&L sought approval were
the most ideally suited to solve the reliability criteria violation. The proposed
route was the shortest of the alternatives, had the least environmental impact,
and did not present the complications, environmental threats, and costs
associated with putting a new transmission line underground, as proposed by
A-2183-17T3
12
BOE. The argument JCP&L did not consider alternatives to the Project is
unsupported by the record.3
BPU also accepted expert testimony the Project, when operational, will
emit EMF well below acceptable levels. BOE presented only one witness, its
President, who does not have expertise in electricity transmission lines or EMF.
She expressed BOE's concerns regarding the safety of the Project, but offered
no expert testimony or other evidence supporting BOE's contention the Project
will emit EMF dangerous to students and faculty or pose other harms.
BOE's President also expressed concerns about the visual environment at
the Lazar school. It was well within the BPU's authority to determine the BOE's
aesthetic concerns were outweighed by the public need for the Project. Finally,
BOE's President speculated the Project may limit school expansion plans that
might one day materialize. BPU acted within its authority when it determined
that concerns regarding potential expansion of the school were baseless because
construction in the utility's ROW would be precluded whether or not the Project
was constructed, and the record contains no evidence that expansion outside the
ROW would be curtailed unreasonably.
3
Although BOE argues constructing an underground transmission line in the
area of the middle school is a preferable alternative, it offered no testimony with
respect to the feasibility, cost, or efficacy of such an alternative.
A-2183-17T3
13
We do not agree with BOE's argument BPU's final order must be vacated
under res judicata or collateral estoppel. "The term 'res judicata' refers broadly
to the common-law doctrine barring relitigation of claims or issues that have
already been adjudicated." Velasquez v. Franz, 123 N.J. 498, 505 (1991)
(emphasis in original). "The application of res judicata doctrine requires
substantially similar or identical causes of action and issues, parties, and relief
sought." Culver v. Ins. Co. of North Am., 115 N.J. 451, 460 (1989) (emphasis
in original). "In addition, there must be a 'final judgment by a court or tribunal
of competent jurisdiction.'" Ibid. (quoting Charlie Brown of Chatham v. Bd. of
Adjustment, 202 N.J. Super. 312, 327 (App. Div. 1985)).
"Collateral estoppel, in particular, represents the 'branch of the broader
law of res judicata which bars relitigation of any issue which was actually
determined in a prior action, generally between the same parties, involving a
different claim or cause of action.'" Tarus v. Borough of Pine Hill, 189 N.J.
497, 520 (2007) (quoting Sacharow v. Sacharow, 177 N.J. 62, 76 (2003)). "A
court has broad discretion to determine whether application of collateral
estoppel is appropriate." Adelman v. BSI Fin. Servs., Inc., 453 N.J. Super. 31,
39 (App. Div. 2018). In order
[f]or the doctrine of collateral estoppel to apply to
foreclose the relitigation of an issue, the party asserting
A-2183-17T3
14
the bar must show that: (1) the issue to be precluded is
identical to the issue decided in the prior proceeding;
(2) the issue was actually litigated in the prior
proceeding; (3) the court in the prior proceeding issued
a final judgment on the merits; (4) the determination of
the issue was essential to the prior judgment; and (5)
the party against whom the doctrine is asserted was a
party to or in privity with a party to the earlier
proceeding.
[Olivieri v. Y.M.F. Carpet, Inc., 186 N.J. 511, 521
(2006) (quoting In re Estate of Dawson, 136 N.J. 1, 20-
21 (1994)).]
"A fundamental tenet of collateral estoppel is that the doctrine cannot be
used against a party unless that party either participated in or was 'in privity with
a party to the earlier proceeding.'" State v. K.P.S., 221 N.J. 266, 277 (2015)
(quoting In re Estate of Dawson, 136 N.J. 1, 20 (1994)). "That tenet prohibits
application of collateral estoppel if a party has not had a 'full and fair opportunity
to litigate an issue.'" State v. McKinney, 223 N.J. 475, 493 (2015) (quoting
K.P.S., 221 N.J. at 278)). "A relationship is usually considered 'close enough'
only when the party is a virtual representative of the non-party, or when the non-
party actually controls the litigation." O'Brien v. Telcordia Techs., Inc., 420 N.J. Super. 256, 269 (App. Div. 2011) (quoting Zirger v. Gen. Accident Ins. Co.,
144 N.J. 327, 338 (1996)).
A-2183-17T3
15
BOE argues BPU's decision must be reversed because it is inconsistent
with a 2010 BPU decision regarding a 145-mile-long 550 kV Public Service
Electric & Gas (PSE&G) project which passed through Montville. A portion of
the transmission line for that project ran adjacent to the Lazar school. BOE
intervened in that matter, identifying three transmission towers it argued were
too close to the school. BOE identified locations where those towers could be
moved. BPU found that moving the towers would be "prudent and reasonable"
and directed PSE&G to provide a report identifying a relocation or realignment
of the towers unless it would be "highly impractical or not possible" to do so.
JCP&L was not a party to the PSE&G application. It did not participate
in the 2010 proceeding. We reject BOE's argument that JCP&L is in privity
with PSE&G because both are public utilities with parallel ROWs adjacent to
the school. In addition, the utilities' two applications do not concern the same
subject matter. The PSE&G project and the Project are distinct and were
evaluated by BPU on the basis of their individual characteristics and locations.
To the extent we have not specifically addressed any of BOE's remaining
arguments, we conclude they lack sufficient merit to warrant discussion in a
written opinion. R. 2:11-3(e)(1)(E).
Affirmed.
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