2014 ANNUAL PROGRESS REPORT

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1 March 1, 2014 Mr. Tracy Rolstad, Chairman WECC Technical Studies Subcommittee Avista Utilities 1411 East Mission Ave Spokane, WA Mr. Enoch Davies WECC Technical Staff 155 North 400 West, Suite 200 Salt Lake City, Utah ANNUAL PROGRESS REPORT In accordance with reporting guidelines by the WECC Planning Coordinating Committee (PCC), please find attached Puget Sound Energy s 2014 Annual Progress Report on significant additions and changes to our system. Please call me at (425) if you have any questions. Sincerely, Puget Sound Energy, Inc. By Peter M. Jones, PE Senior Engineer, PSE Enclosure cc: Joe Seabrook John Phillips TSS Members

2 2014 Annual Progress Report to WECC Puget Sound Energy The following projects will be reported in the 2014 Existing Generation and Significant Additions and Changes to System Facilities report in accordance with pages III-110 though III-119 of the WECC Progress Report Policies and Procedures. These projects do not have regional impacts to the WECC Interconnected System. Recently Completed Projects 1. Starwood-Tideflats 115/110 kv Transformer Removal With Tacoma Power increasing its sub-transmission voltage schedule from 110 kv to in 2013, the existing step down Starwood transformer was no longer necessary. A bypass of the existing bank was finished in the summer of 2013 to coincide with the timing of Tacoma Power s voltage schedule increase. This project was a combined engineering effort between PSE and Tacoma Power; it had no impact to the WECC or any additional neighboring electric systems. Transmission Additions and Changes Request for waiver of Significant Transmission Project Status 2. Eastside Transformer Addition and Line Estimated Date of Operation: This project had been titled Lakeside Substation Transformer Addition in progress reports prior to The project will involve installation of a 230- transformer at an existing or future PSE Substation. This project includes new construction of lines or rebuilding existing lines, energizing at to provide a source to the new transformer and adding transmission capacity. Installing this transformer will address NERC planning criteria and provide additional capacity to serve the projected load growth in north central King County and surrounding areas. The attached document, Eastside Transformer Project.pdf, shows the possible locations and associated transmission routes. ColumbiaGrid is a Subregional Planning Group in the Pacific Northwest and has open participation in its planning meetings and the Puget Sound Area Study Team (PSAST). This project has been developed by and has achieved consensus via the ColumbiaGrid PSAST, which included all the transmission owners that could be impacted by this project. The Eastside Transformer Addition and Line Rebuilds project began to be studied by the PSAST in mid-2009, and was in PSE s Annual Progress Report last year. The most recent report is entitled Updated Recommended Transmission Expansion Plan for the Puget Sound Area to Support Winter South-to-North Transfers, June 17, The report recommends this project and four other transmission improvements, and is available from ColumbiaGrid The requirements of project coordination review for this project have been met through the ColumbiaGrid acting as a Subregional Planning Group. The attached document, WECC Comprehensive Project Coordination Review Letter_PSAST pdf, describes the coordinated ColumbiaGrid study efforts. The energization date for the Eastside 230kV project has been pushed out since this review letter was written.

3 2014 Annual Progress Report to WECC Puget Sound Energy Waiver of Significant Transmission Project has been granted on the following - 3. Thurston County Transformer Addition Estimated Date of Operation: 2014 The project is to install a 230- transformer at St. Clair Substation and build a 5-mile transmission loop between St. Clair and the existing BPA Olympia S. Tacoma line. PSE requested and received a waiver of significant transmission project status for this project in The project is intended to provide additional capacity to serve the projected load growth in Thurston County and surrounding areas. 4. Tono Transformer Improvements Estimated Date of Operation: 2014 This project will involve replacement of limiting current transformers at the Tono bank. This improvement will increase capacity from the existing limit of 398 MVA up to 546 MVA. The project is intended to increase reliability for serving approximately half of the existing load in Thurston County. It has no impact to the WECC or any neighboring electric systems. 5. Pierce County Transformer Addition and Line Reroutes Estimated Date of Operation: 2016 The project is to install a 230- transformer at Alderton Substation and build 8 miles of transmission line from White River Substation to Alderton Substation, as well as re-routing lines. PSE requested and received a waiver of significant transmission project status for this project in The project is intended to provide additional capacity to serve the projected load growth in Pierce County and surrounding areas. It has no impact to the WECC or any neighboring electric systems. 6. West Kitsap Transmission Project Phase II Estimated Date of Operation: The project is to install a 230- transformer at Foss Corner Substation, and build a line from Foss Corner to a future line bay position in the BPA Kitsap Substation. PSE requested and received a waiver of significant transmission project status for this project in The project is intended to provide additional capacity to serve the projected load growth in Kitsap County and surrounding areas. It has no impact to the WECC or any neighboring electric systems.

4 New Right of Way to New 230- Substation at Lakeside Proposed Sammamish Lakeside Talbot Hill #2 Talbot Hill #1 Sammamish #2 Sammamish #1 Talbot Hill Existing Lines: This Project:

5 PSE Corridor to New 230- Substation at Lakeside Proposed Sammamish Rebuilt to double circuit One operated at, one operated at Sammamish #1 Lakeside Talbot Hill Rebuilt to double circuit One operated at, one operated at Talbot Hill #1 Existing Lines: This Project:

6 New Right of Way to New 230- Substation at Vernell Proposed Sammamish Vernell 1272 Bittern at 100 C Clyde Hill Ardmore Rebuilt to 1272 Bittern at 100 C Talbot Hill Existing Lines: This Project:

7 New Right of Way to New 230- Substation at Westminster Proposed Sammamish Westminster Sammamish via Bridle Trails North Bellevue via Northrup Lakeside #2 Sammamish #2 Sammamish #1 Lakeside #1 Ardmore Lakeside via Midlakes Talbot Hill Existing Lines: This Project:

8 PSE Corridor to New 230- Substation at Westminster Proposed Sammamish Rebuilt to double circuit One operated at, one operated at Sammamish #1 Westminster Sammamish via Bridle Trails Ardmore North Bellevue via Northrup Talbot Hill Rebuilt to double circuit One operated at, one operated at Lakeside #1 Lakeside via Midlakes Existing Lines: This Project:

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10 February 21, 2013 Kent Bolton Staff Engineer Western Electricity Coordinating Council 155 North 400 West, Suite 200 Salt Lake City, UT Dear Mr. Bolton: The WECC Project Coordination Process states that project sponsors can use Subregional Planning Groups to meet its requirements: a project sponsor may use TEPPC or a Subregional Planning Group to meet the requirements of Project Coordination Process in lieu of forming an independent PCRG for the project. The projects summarized below used the ColumbiaGrid planning process via the Puget Sound Area Study Team to meet the requirements of the WECC Project Coordination Process. The ColumbiaGrid planning process provided for open participation and included all the interested transmission owners and other interested stakeholders. These projects have been reviewed by the Puget Sound Area Study Team and a consensus has been reached that they are the best solution for the area. Project reports are available from ColumbiaGrid at 1. Project Name: Reconductor Bothell SnoKing lines a. Project Purpose: Improve South-to-North transfer capability between the Northwest and British Columbia. b. Facility Owners: Seattle City Light, Bonneville Power Administration c. Project Description: Reconductor the double circuit Bothell-SnoKing lines with high temperature conductor. d. Estimated In-Service Date: Project Name: Reconductor Delridge-Duwamish line a. Project Purpose: Improve South-to-North transfer capability between the Northwest and British Columbia. b. Facility Owners: Seattle City Light c. Project Description: Reconductor the Delridge Duwamish line.

11 d. Estimated In-Service Date: Project Name: Lakeside 230/ Substation a. Project Purpose: Improve South-to-North transfer capability between the Northwest and British Columbia. Provide a 230/ source to Puget Sound Energy customer load service. b. Facility Owners: Puget Sound Energy c. Project Description: Rebuild both of the Sammamish-Lakeside-Talbot lines to. Energize one line at and the other at. Build a bus and 230/ transformer at Lakeside Substation. d. Estimated In-Service Date: 2017 Please feel free to contact me or Jonathan Young at (503) if you have any questions. Sincerely, Jeffrey C. Miller Jeffrey C. Miller ColumbiaGrid, Vice President and Manager of Planning (503) office (503) cell