Transmission Projects Supporting Renewable Resources

Transcription

1 Transmission Projects Supporting Renewable Resources Prepared by: Edison Electric Institute FEBRUARY 2009

2 Edison Electric Institute (EEI) is the association of U.S. shareholder-owned electric companies. Our members serve 95% of the ultimate customers in the shareholder-owned segment of the industry, and represent approximately 70% of the U.S. electric power industry. We also have as Affiliate members more than 80 International electric companies, and as Associate members more than 200 industry suppliers and related organizations. Organized in 1933, EEI works closely with its members, representing their interests and advocating equitable policies in legislative and regulatory arenas. In its leadership role, the Institute provides authoritative analysis and critical industry data to its members, Congress, government agencies, the financial community and other influential audiences. EEI provides forums for member company representatives to discuss issues and strategies to advance the industry and to ensure a competitive position in a changing marketplace. EEI s mission is to ensure members success in a new competitive environment by: Advocating Public Policy Expanding Market Opportunities Providing Strategic Business Information For more information on EEI programs and activities, products and services, or membership, visit our Web site at

3 Transmission Projects Supporting Renewable Resources Prepared by: Edison Electric Institute FEBRUARY 2009

4 2009 by the Edison Electric Institute (EEI). All rights reserved. Published Printed in the United States of America. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage or retrieval system or method, now known or hereinafter invented or adopted, without the express prior written permission of the Edison Electric Institute. Attribution Notice and Disclaimer This work was prepared by the Edison Electric Institute (EEI). When used as a reference, attribution to EEI is requested. EEI, any member of EEI, and any person acting on its behalf (a) does not make any warranty, express or implied, with respect to the accuracy, completeness or usefulness of the information, advice or recommendations contained in this work, and (b) does not assume and expressly disclaims any liability with respect to the use of, or for damages resulting from the use of any information, advice or recommendations contained in this work. The views and opinions expressed in this work do not necessarily reflect those of EEI or any member of EEI. This material and its production, reproduction and distribution by EEI does not imply endorsement of the material. Published by: Edison Electric Institute 701 Pennsylvania Avenue, N.W. Washington, D.C Phone: Web site:

5 INTRODUCTION The trend in increased investment in the Nation s transmission infrastructure that began several years ago continues, in response to various needs, including reliability, generator interconnection and load growth. The trend in increased transmission investment is also due, in part, to several landmark developments in federal and state policies affecting transmission infrastructure (e.g., Energy Policy Act of 2005 (EPAct 2005), state renewable portfolio standards (RPS), and federal transmission pricing policy). From 2001 to 2007, Edison Electric Institute (EEI) members invested nearly $37 billion in transmission infrastructure improvements to meet these various needs. 1 EEI members continue to actively plan transmission projects to address the significantly increased need to integrate renewable resources. However, integration of renewable resources such as wind, solar, and geothermal generation presents special challenges. While fossil-fuel generation resources have some flexibility to site in close proximity to the existing transmission grid, siting of renewable resources is largely dictated by nature, due to the location of the resource and the inability to transport the fuel source. The transmission investments needed to meet these challenges are being addressed by EEI s members through various processes across the United States. These processes recognize renewable resource locational constraints and the transmission needed to interconnect these renewable projects. It is against this backdrop that EEI developed this special report on member transmission projects that support the integration of renewable resources. This special report is intended to give a broad, but not comprehensive, perspective on the variety of transmission projects being built to support renewable resource integration. It must be noted that, given the nature of power flows and grid design on alternating current (AC) transmission systems, a transmission project cannot be dedicated to a specific renewable resource project or limited to transmitting renewable energy. Report Scope This report includes transmission projects which meet the following criteria: support solar, wind, geothermal and biomass renewable energy projects; have a project investment threshold of approximately $20 million; are projected to enter service before the end of 2015; are or will be connected to the North American Electric Reliabilty Corporation (NERC)-defined Bulk Electric System facilities (100 kilovolt (kv) and above), including radial lines of 100 kv and above; and are being developed in accordance with state, regional, and federal transmission planning guidelines and federal open access rules. 1 Sources: EEI s Annual Property & Plant Capital Investment Survey for actual transmission investment and EEI s Electric Transmission Capital Budget & Forecast Survey for planned transmission investment. Edison Electric Institute iii

6 Transmission Projects Supporting Renewable Resources Introduction Some General Observations This report illustrates the recent and ongoing efforts of EEI members to develop transmission to support renewable resource integration. Total investment in these transmission projects is approximately $21 billion, based on current estimates provided by EEI s members. In addition to the projects identified in this report, there are a number of important transmission projects in development that support the integration of renewable resources whose investments will be less than $20 million. Most projects in this report are multifaceted; that is, they are not in development solely to integrate renewable resources. 2 In most cases, transmission projects address an array of purposes and deliver a number of benefits, such as congestion relief, enhanced regional reliability, and reduced system losses. EEI member transmission projects in this report are in development pursuant to member planning processes, as well as Regional Transmission Organization (RTO), Independent System Operator (ISO), and non-rto/iso regional planning processes. In some cases, these planning efforts are performed in conjunction with state and regional initiatives to develop renewable resources and related transmission. The scope, location, costs, and schedule of the transmission projects included in this report may be affected by delays in the development of renewable resource projects. Recent developments may affect the status of some renewable resource projects, such as the current economic slowdown, less favorable project economics resulting from lower gas prices, and tighter credit requirements. In addition, development of some renewable resource projects may be affected by clogged interconnection queues. Some transmission projects in this report will span more than one state and involve numerous entities at the federal, state, and local levels. These projects, and other interstate projects, present challenges for siting, permitting, cost allocation and cost recovery. These challenges must be resolved to facilitate the movement of large quantities of renewable energy. In summary, it is apparent much activity is taking place nationally to add needed transmission infrastructure and integrate large amounts of renewable resources into the transmission systems of EEI s member companies. 2 However, one project that is devoted mainly to the integration of renewable resources is Minnesota Power s purchase of an existing highvoltage direct current (HVDC) line, which would allow them to transmit purchases of wind energy to meet state RPS goals. iv Edison Electric Institute

7 TABLE OF CONTENTS AMERICAN ELECTRIC POWER (AEP)... 1 Prairie Wind Transmission, LLC... 2 Tallgrass Transmission, LLC... 3 Electric Transmission Texas (ETT)...4 Wind Generation Interconnection in Texas... 4 AMERICAN TRANSMISSION COMPANY (ATC)... 5 Four Wind Interconnection Projects... 6 Paddock Rockdale 345 kv Project... 6 DOMINION... 7 Carson-Suffolk 500 kv Line... 7 ITC HOLDINGS, CORP... 9 KETA Project (ITC Great Plains) Kansas V-Plan the northern half of the Southwest Power Pool (SPP) transmission project known as the X-Plan (ITC Great Plains)...11 MINNESOTA POWER CapX 2020 Transmission Plan Square Butte Electric Cooperative High-Voltage Direct Current (HVDC) Line Purchase NATIONAL GRID Northeast Energy Link NORTHEAST UTILITIES (NU) New Hampshire Northern Loop Project NV ENERGY Carson Lake South Fallon Project East Valley Master Plan Project Eastern Nevada Transmission Intertie Project North Las Vegas Area Routing and Siting Project OTTER TAIL CORP Big Stone Transmission Project OGE ENERGY CORP Northwest Woodward District extra high-voltage (EHV) 345 kv Line Tallgrass Transmission, LLC PACIFIC GAS AND ELECTRIC COMPANY (PG&E) Canada Pacific Northwest California Transmission Project Central California Clean Energy Transmission Project (C3ET) Edison Electric Institute v

8 Transmission Projects Supporting Renewable Resources Table of Contents PORTLAND GENERAL ELECTRIC COMPANY (PGE) Southern Crossing Project SOUTHERN CALIFORNIA EDISON (SCE) Devers Palo Verde No Tehachapi Renewable Transmission Project WESTAR ENERGY, INC Southern Crossing Project XCEL ENERGY INC Northern States Power Companies...38 Buffalo Ridge Incremental Generation Outlet (BRIGO) CapX 2020 Transmission Plan Corridor Project Pleasant Valley Transmission Project Southwest Minnesota Wind Outlet Expansion Project Public Service of Colorado...43 Pawnee Smoky Hill 345 kv Transmission Project San Luis Valley Calumet 230 kv Transmission Project Southwestern Public Services (SPS)...45 Texas North Expansion Project (TNEP) vi Edison Electric Institute

9 AMERICAN ELECTRIC POWER (AEP) Company Background: AEP is one of the largest electric utilities in the United States, delivering electricity to more than five million customers in 11 states. AEP s service territory covers 197,500 square miles in Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia. System wide there are more than 39,000 circuit miles of transmission lines. Customer service is provided through AEP s seven regional utilities: AEP Ohio; AEP Texas; Appalachian Power; Indiana Michigan Power; Kentucky Power; Public Service Company of Oklahoma; and Southwestern Electric Power Company. AEP is continuing its efforts to develop an extra high-voltage (EHV) interstate transmission superhighway. In furtherance of this effort, AEP has formed joint ventures with several utilities to build transmission in regions across the country. Potomac-Appalachian Transmission Highline, LLC (PATH): A joint venture with Allegheny Energy, Inc. to build a 765 kv transmission line within PJM extending from West Virginia to Maryland. Electric Transmission Texas, LLC (ETT): A joint venture with a subsidiary MidAmerican Energy Holdings Company established to invest in transmission within the Electric Reliability Council of Texas (ERCOT). Electric Transmission America, LLC (ETA): A second joint venture with a subsidiary of MidAmerican Energy Holdings Company to identify and invest in high-voltage transmission projects (345 kv or higher) located in North America outside of ERCOT. ETA has established joint ventures with Westar Energy and Oklahoma Gas and Electric Company (OG&E) to build 765 kv transmission in the Southwest Power Pool (SPP). Pioneer Transmission, LLC: AEP and Duke Energy formed a joint venture to build a 765 kv transmission line in Indiana. In 2007, AEP and ITC Holdings Company (ITC) also completed a technical study for new 765 kv transmission into Michigan. AEP and ITC are investigating the feasibility of forming a joint venture to develop this project. Between 2001 and 2007 AEP has invested approximately $2.3 billion into the transmission system. Renewable Resource Profile: AEP has invested approximately $290 million (almost all of which has been returned to the independent power producers (IPPs)) in transmission supporting the integration of renewable resources. Edison Electric Institute 1

10 Transmission Projects Supporting Renewable Resources AEP There is approximately 3,335 megawatts (MW) of renewable resource capacity connected to the AEP system; approximately 2,590 MW of this capacity was added within the last five years. AEP anticipates that approximately 9,750 MW of renewable energy resource capacity will be added within the next five years (dependent on competitive renewable energy zones (CREZ) commitments). Prairie Wind Transmission, LLC Project Description: The Prairie Wind project consists of approximately 230 miles of 765 kv transmission extending from Wichita, Kansas, west to a substation northeast of Dodge City, Kansas, and then south to the Kansas border from Medicine Lodge, Kansas. The project will connect with the proposed Tallgrass 765 kv transmission project at the Kansas-Oklahoma border and integrate into the existing 345 kv system near Dodge City and Wichita. As part of a larger EHV overlay proposed within the SPP, the Prairie Wind project provides the first critical path for the development of the significant renewable generation potential in the region. The project will be the first 765 kv transmission built in the United States, west of the Mississippi River. The SPP region has a high wind potential and SPP s generation interconnection queue indicates over 40,000 MW of wind resources proposed for the region. Most of these projects will have difficulty connecting due to a lack of available transmission. With a capacity of over 4,000 MW, the Prairie Wind project can provide a solid interconnection for these projects, facilitate regional energy transfers that may result from large scale wind development, and unload power flows on underlying lower voltage lines, freeing capacity on existing facilities to allow additional interconnections. This project, along with additional segments of the SPP EHV overlay, provides improved reliability for the SPP electric system while enabling the development of significant sustainable energy for the United States. Project Cost: $600 million. Project Status: Seeking RTO and applicable state and federal approvals. The project is scheduled for service by Project Investment Partners: Electric Transmission America (AEP & MidAmerican Energy) and Westar Energy. Project Benefits: Prairie Wind Transmission will add substantial transmission capacity to support renewable generation development, provide relief of transmission constraints within SPP, enhance regional reliability, reduce system losses, and provide economic benefits through energy production cost savings and reduced transmission congestion. 2 Edison Electric Institute

11 Transmission Projects Supporting Renewable Resources AEP Tallgrass Transmission, LLC Project Description: The Tallgrass project consists of approximately 170 miles of 765 kv transmission from the Kansas-Oklahoma border north of Woodward, Oklahoma linking OG&E s station at Woodward and extending west into the Oklahoma panhandle to a new station near Guymon, Oklahoma. The project will connect with the proposed Prairie Wind 765 kv transmission project at the Kansas-Oklahoma border and integrate into the existing 345 kv system at Woodward and Guymon. As part of a larger EHV overlay proposed within the SPP, the Tallgrass project provides a critical path for the development of the significant renewable generation potential in the region. The SPP region has a high wind potential and SPP s generation interconnection queue indicates over 40,000 MW of wind resources proposed for the region. Most of these projects will have difficulty connecting due to a lack of available transmission. With a capacity of over 4,000 MW, the Tallgrass project can provide a solid interconnection for these projects, facilitate regional energy transfers that may result from large scale wind development, and unload power flows on underlying lower voltage lines, freeing capacity on existing facilities to allow additional interconnections. This project, along with additional segments of the SPP EHV overlay, provides improved reliability for the SPP electric system while enabling the development of significant sustainable energy for the United States. Project Cost: $500 million. Project Status: In November of 2008, the Federal Energy Regulatory Commission (FERC) approved a formula rate filing for the Tallgrass Transmission projects in Oklahoma. AEP is presently seeking RTO and applicable state and federal approvals. The project is scheduled for service by Project Investment Partners: Electric Transmission America (AEP & MidAmerican Energy). OG&E owns a 50% share of Tallgrass. AEP and Mid-American equally own the remaining 50% of Tallgrass. Project Benefits: Tallgrass Transmission will add substantial transmission capacity to support renewable generation development, provide relief of transmission constraints within SPP, enhance regional reliability, reduce system losses, and provide economic benefits through energy production cost savings and reduced congestion. Edison Electric Institute 3

12 Transmission Projects Supporting Renewable Resources AEP Electric Transmission Texas (ETT) Wind Generation Interconnection in Texas Project Description: Wind generation interconnection on the ERCOT transmission system has been spurred on by the CREZ proceeding at the Public Utility Commission of Texas (PUCT). The PUCT has approved a CREZ plan for 18,500 MW of wind interconnection in west Texas. ETT has proposed to construct approximately $1.5 billion of 345 kv line and substation facilities of the plan, including significant series capacitor installations. In addition to the CREZ plan, ETT has just completed interconnection of the Kenedy County wind farms on the Gulf Coast of Texas, the first significant coastal installation of wind generation in Texas. Almost 500 MW of wind generation has been interconnected to the existing 345 kv line from Corpus Christi to the lower Rio Grande Valley, which extends across more than 100 miles of the Texas Gulf Coast. With a target in-service date of year end 2008, a new 345 kv substation had to be constructed for the existing line and a 25 mile radial 345 kv line from the new substation to the wind generators had to be completed in less than 24 months. Unlike the CREZ wind generation, the Kenedy County wind farms provide energy during hours of the day, when demand is at a peak. As a result, this wind generation makes a direct and efficient contribution to support load in South Texas. In the next phase of the project, a 345 kv Gas Insulated Station (GIS) will be installed on the coast to provide the physical interconnection of the generators; one of the first of its kind in Texas. Project Cost: The Kenedy interconnection facilities cost approximately $87 million, including the 345 kv GIS. The alternative was a traditional 138 kv solution that would have required high capacity autotransformers at a greater total cost. Project Status: The interconnection was completed in November of Project Investment Partners: Owned by Electric Transmission Texas, a joint venture owned by subsidiaries of American Electric Power and MidAmerican Energy Holdings Company. Project Benefits: The 345 kv interconnection offers efficient use of the bulk transmission system in South Texas. Close cooperation with the Kenedy County wind farms made it possible to provide the interconnect of the facilities in record time including the Certificate of Convenience and Necessity (CCN), which was necessary to construct the radial 345 kv line to the Gulf Coast. Future use of the GIS provides an opportunity to demonstrate the cost effectiveness of the technology and the practicality of its application in the coastal environment. 4 Edison Electric Institute

13 AMERICAN TRANSMISSION COMPANY (ATC) Company Background: ATC started business on January 1, 2001, as the first multi-state, transmission-only utility in the United States. Unlike most other utilities, ATC has a single focus: transmission. ATC s transmission system allows energy producers to transport electric power from where it s generated to where it s needed. It s similar to the interstate highway system with high-voltage electricity traveling on the transmission system wires like vehicles on the highway. ATC provides electric transmission service in an area from the Upper Peninsula of Michigan, throughout the eastern half of Wisconsin and into portions of Illinois. The 9,350 circuit miles of high-voltage transmission lines and 500 substations provide communities with access to local and regional energy sources. ATC s mission is to provide reliable electric transmission service to these customers. As a public utility whose infrastructure serves as the link in transporting electricity to millions of electricity users, ATC has duties and responsibilities to: operate the transmission system reliably; assess the ability of the system to adequately meet current and future needs; plan system upgrades to meet those needs in the most efficient, effective and economic ways; construct upgrades in time to meet those needs; and, maintain the transmission equipment and surroundings to minimize opportunity for failures. ATC operates their $2.2 billion transmission system as a single entity, providing comparable service to all its customers including electricity producers and electric distribution companies who count on ATC to deliver power from where it s produced to where it s needed in the homes and businesses they serve. ATC construction program has invested $1.8 billion between 2001 and Renewable Resource Profile: Of ATC s $1.8 billion investment since 2001, approximately $687 million has been on transmission projects supporting renewable resources. ATC plans to invest an additional $476 million in the next five years. The total present connected renewable resource capacity is 274 MW. Edison Electric Institute 5

14 Transmission Projects Supporting Renewable Resources ATC The total renewable energy resource projects in the interconnection queue is 2,485 MW. The total renewable energy resource projects in the interconnection queue with executed Interconnection Service Agreements is 1,100 MW. ATC uses a 20% capacity factor for wind resource projects. Four Wind Interconnection Projects Project Description: This project calls for the construction of one new 345 kv and three new 138 kv substations on existing transmission lines. This project was developed in pursuit of state RPS goals. Project Cost: $16.8 million. Project Status: Three of the four wind farms began operating in The remaining project is anticipated to achieve commercial operation in the first quarter of Project Investment Partners: None. Project Benefits: This project interconnects four wind farms totaling 396 MW of renewable energy. Paddock Rockdale 345 kv Project Project Description: This project will construct an additional 35 mile 345 kv line primarily on an existing transmission line corridor between the Paddock Substation in the town of Beloit and the Rockdale Substation in the town of Christiana in Wisconsin. Project Cost: Approximately $133 million. Project Status: The project has received regulatory approval from Wisconsin and is anticipated to be in service in Spring of Project Investment Partners: None. Project Benefits: This high-voltage transmission line will give local distribution utilities improved access to renewable and to lower cost power from other areas in the region and bring it into Wisconsin. Wisconsin has only limited transmission line connections to other states compared to its neighboring states which limit the ability of electric utilities to access wind energy or sources of lower cost electricity from other regions. While this project is largely driven by economics, it also benefits electric consumers with a stronger, more stable electric system. This project will assist ATC s customers that have public plans to meet state RPS goals, at least in part through renewable resources outside of the ATC footprint. 6 Edison Electric Institute

15 DOMINION Company Background: Dominion serves more than two million homes and businesses in Virginia and North Carolina. Dominion owns and maintains approximately 6,000 circuit miles of electric transmission lines in Virginia, North Carolina and West Virginia. These facilities are integrated into the PJM RTO. Between 2001 and 2007 Dominion has invested approximately $679 million into the transmission system. In 2009, Dominion has planned $400 million in transmission investments. Renewable Resource Profile: Dominion s entire 500 kv network, a regional EHV power super highway, allows and supports the transmission of power generated from a vast variety of renewable resources. In that sense, Dominion s transmission-owned renewable resources are embodied in Dominions 500 kv network. Extending over 1,100 miles, Dominion s 500 kv system is a necessary component in the transmission of renewable energy. The overall renewable resource capacity is 413 MW connected in Virginia and North Carolina. Over the next five years several projects, mainly in the western portion of the Dominion transmission system, are being initiated. These projects are undergoing review in the PJM interconnection queue process. As a part of the transmission planning process, a capacity factor of 15 percent for wind resources is considered. Carson-Suffolk 500 kv Line Project Description: This project installs a 59.6 mile 500 kv transmission line in southeastern Virginia to meet the growing demand for electricity in south Hampton Roads and the Outer Banks of North Carolina. The transmission line would begin at the Carson Substation in Dinwiddie County and cross portions of Prince George, Sussex, Southampton, and Isle of Wight Counties before entering the City of Suffolk and terminating at the Suffolk Substation. Project Cost: $185 million. Project Status: On October 31, 2008, the Virginia State Corporation Commission issued an order granting approval of the project. The project is anticipated to be in service by May Edison Electric Institute 7

16 Transmission Projects Supporting Renewable Resources Dominion Project Investment Partner(s): None. Project Benefits: The completion of this transmission project will ensure continued reliable electric service to the homes and businesses in the growing south Hampton Roads area of Virginia and the Outer Banks of North Carolina and enable Dominion to tap into an area that has abundant and reliable energy. The Carson - Suffolk 500 kv transmission line project will improve west to east power flows into and within the Dominion service territory. This transmission infrastructure improvement will increase access to wind energy and other renewable resources west of Dominion s transmission footprint. This project will also help facilitate the transmission of wind power from future possible east coast wind farms westward. 8 Edison Electric Institute

17 ITC HOLDINGS, CORP. Company Background: ITC Holdings, Corp. is in the business of investing in electricity transmission infrastructure as a means to improve electric reliability, connect renewable energy resources to customers and lower the overall cost of delivered energy. Subsidiaries of ITC Holdings, Corp. include its three operating companies ITC Transmission, Michigan Electric Transmission Company (METC) and ITC Midwest as well as ITC Grid Development, ITC Great Plains and ITC Panhandle. ITC Transmission has a service territory covering more than 7,600 square miles in Southeastern Michigan, comprising all or part of 13 counties, including Detroit and Ann Arbor metropolitan areas and serves a population of over 4.9 million. ITC Transmission has 2,700 circuit miles of high voltage transmission lines (overhead and underground). METC has a service territory covering more than 18,800 square miles in the Lower Peninsula of Michigan, comprising all or part of 60 counties and serves a population of approximately six million. METC has 5,400 circuit miles of high voltage transmission lines (overhead and underground). ITC Midwest connects more than 700 communities in Iowa, southern Minnesota and northwest Illinois, an area of nearly 54,000 square miles. Its service territory includes Iowa, southern Minnesota and northwest Illinois serving a population of approximately six million. ITC Midwest has 6,791 circuit miles of high voltage transmission lines (overhead and underground) operating at voltages of 34.5 kv to 345 kv. ITC Great Plains, LLC, and ITC Panhandle are subsidiaries to ITC Grid Development, LLC, a subsidiary of ITC Holdings Corp. ITC Great Plains was established to address a recognized need for investment in the transmission infrastructure in Kansas and the Great Plains region and has a service area which includes portions of Kansas and Oklahoma. ITC Panhandle does not have a service area at this time. Between 2003 and 2007 ITC Holdings, Corp. has invested approximately $748 million into the transmission system. Renewable Resource Profile: In 2008, ITC Midwest entered into contractual commitments with wind generation developers for the upgrade of an estimated $62 million in ITC Midwest transmission facilities. These upgrades are necessary to accommodate the interconnection of approximately 810 MW of new wind resources that were connected to ITC Midwest transmission in ITC Midwest has approximately 1,280 MW of wind generation connected to its transmission system at voltages 100 kv and above, and an additional approximately 250 MW connected to its 34.5 kv and 69 kv transmission system. Edison Electric Institute 9

18 Transmission Projects Supporting Renewable Resources ITC Holdings, Corp. Renewable energy resource projects in the Midwest Independent System Operator (MISO) interconnection queue total approximately 7,300 MW of wind generation proposed for connection to ITC Midwest. ITC Midwest has signed interconnection agreements representing approximately 2,165 MW of renewable resource generation. Capacity factors across the ITC Midwest footprint generally range from percent for wind resources based on location. KETA Project (ITC Great Plains) Project Description: The Kansas Electric Transmission Authority (KETA) Project, the largest transmission project in the SPP Transmission Expansion Plan (STEP), includes over 210 miles of new high-voltage transmission lines, in addition to substation and associated facilities. The KETA Project will extend from the Spearville Substation near Spearville, Kansas to a substation near Axtell, Nebraska. It includes an interconnection at the Knoll Substation near Hays, Kansas. SPP is evaluating the Spearville to Knoll portion of the KETA Project to be constructed at 765 kv while the Knoll to Axtell portion will be constructed at 345 kv. The KETA Project was identified by the KETA as a project that would produce positive benefits for Kansas and the surrounding region. The KETA Project has been approved by the SPP Board of Directors for inclusion in the 2008 STEP. Almost 3,000 MW of wind generation that is proposed for interconnection near terminals of the KETA Project will benefit from completion. Project Cost: The entire project, as currently proposed by SPP, will cost approximately $350 Million. Project Status: ITC Great Plains has a Kansas Corporation Commission Certificate to build and has the support from the KETA. Upon expedited regulatory approvals, the KETA Project would come online by May Project Investment Partners: Sunflower Electric Cooperative, Mid-Kansas Electric, Midwest Energy, and Nebraska Public Power District (NPPD). Project Benefits: The KETA Project will support renewable generation development, will provide more on and off ramps for generators to access renewable energy sources and cheaper generation sources, will move electricity to load centers, and helps to achieve energy security and independence. 10 Edison Electric Institute

19 Transmission Projects Supporting Renewable Resources ITC Holdings, Corp. Kansas V-Plan the northern half of the SPP transmission project known as the X-Plan (ITC Great Plains) Project Description: This project is part of the SPP EHV Overlay plan and is included in the STEP. The hub of the X-Plan would be located near Mooreland, Oklahoma, with connections going northerly into Spearville and Wichita, Kansas, and southerly into the Amarillo/Lubbock, Texas and Oklahoma City, Oklahoma, areas. The Kansas V-Plan represents the Spearville to Wichita portion of the X-Plan. The Kansas V-Plan will aid in the delivery of wind generation from the western half of the SPP footprint to the east. The project consists of a 180 mile 765 kv transmission line, which may be operated initially at 345 kv, from Sunflower Electric Cooperative s existing Spearville 345 kv switchyard to a point near the existing Westar Energy Wichita 345 kv switchyard, with an intermediate point in southern Comanche County, Kansas, and an intermediate point near Medicine Lodge, Kansas. The intermediate point in southern Comanche County, Kansas will be the proposed site of a future switchyard for the purpose of collecting wind resources. The intermediate point near Medicine Lodge, Kansas will consist of a 345/138 kv Substation at Flat Ridge which will serve to collect wind resources and will help alleviate an operating constraint on the Mid-Kansas Electric transmission system. Project Cost: $476 million (based on 765 kv construction). Project Status: The projected in-service date is Project Investment Partners: ITC Great Plains will construct the Sunflower Electric Cooperative and Mid-Kansas Electric (the former Aquila Kansas system) portions of the project. Westar or Prairie Wind Transmission will build the east portion of the project. Project Benefits: The X-Plan was identified in 2004 SPP long-range planning studies as the preferred expansion to support additional generation development, including the development of 2,500 MW of wind development in western Kansas, Oklahoma and the Texas panhandle. The intermediate point near Medicine Lodge, Kansas will serve to collect wind resources and will help alleviate operating constraints on the Mid-Kansas electric transmission system. Edison Electric Institute 11

20 MINNESOTA POWER Company Background: Minnesota Power, a division of ALLETE, provides electricity in a 26,000 square mile electric service territory located in northeastern Minnesota. Minnesota Power supplies retail electric service to 141,000 retail customers and wholesale electric service to 16 municipalities. Transmission and distribution components include 8,866 circuit miles of lines and 169 substations. Minnesota Power s transmission network is interconnected with the transmission grid to promote reliability and is part of a larger regional transmission organization, MISO. During the period of , Minnesota Power invested nearly $47 million for upgrades and new infrastructure to the transmission system. Renewable Resource Profile: The total connected renewable energy resource capacity is 341 MW consisting of: 23 MW Biomass, Natural Gas (Cloquet Energy Center) 30 MW Biomass, Coal (Rapids Energy Center) 48 MW Biomass, Coal, Natural Gas (Hibbard Energy Center) 115 MW Hydro (11 stations) 125 MW Wind (three wind farms added within the last five years) Total renewable energy resource projects in the interconnection queue is 275 MW of wind resources. None of these projects have executed an interconnection agreement. The following capacity factors apply to renewable resources in Minnesota Power s service area: Wind = 20% Hydro = 40-60% Biomass = 80-86% 12 Edison Electric Institute

21 Transmission Projects Supporting Renewable Resources Minnesota Power CapX2020 Transmission Plan Project Description: CapX2020 is a joint initiative of 11 transmission-owning utilities, including Minnesota Power, in the Upper Midwest to expand the electric transmission grid to ensure continued reliable service to 2020 and beyond. Planning studies show that customer demand for electricity will increase by 4,000 to 6,000 MW by The first group of four proposed lines would span over 700 miles and include: A 240 mile, 345 kv transmission line between Brookings County, South Dakota, and Hampton, Minnesota, plus a related 345 kv line between Marshall and Granite Falls, Minnesota. A 250 mile, 345 kv transmission line between Fargo, North Dakota, and St. Cloud and Monticello, Minnesota. A 150 mile, 345 kv transmission line between the Hampton and Rochester, Minnesota, continuing to La Crosse, Wisconsin. A 70 mile, 230 kv transmission line between Bemidji and Grand Rapids in North Central Minnesota. Of these new transmission lines, the Hampton-Brookings County 345 kv line provides access to the wind generation resources in Southwest Minnesota and eastern South Dakota. The line is expected to increase the delivery of generation from this resource rich region by 700 MW. While the other lines are driven primarily by reliability needs, they will also facilitate future wind development by providing the necessary infrastructure underpinnings to support other wind focused transmission additions. Project Cost: The first group of four lines will cost between $1.4 billion and $1.7 billion (2007 dollars). Of this total, approximately $650 million is associated with the wind generation supporting Hampton Brookings County line. The projected in-service date is between 2013 and Project Status: Minnesota Certificate of Need applications have been filed with decisions expected in Minnesota route permit applications have been filed for two of the projects with the other two to be filed in 2009, as well as all necessary regulatory permits in North Dakota, South Dakota and Wisconsin. Project Investment Partners: Central Minnesota Municipal Power Agency, Dairyland Power Cooperative, Great River Energy, Minnesota Municipal Transmission Group, Minnesota Power, Minnesota Power Cooperative, Missouri River Energy Services, Otter Tail Power Company, Rochester Public Utilities, Southern Minnesota Municipal Power Agency, WPPI Energy and Xcel Energy. Project Benefits: The project will alleviate emerging electric reliability issues around the Upper Midwest and strengthen the regional transmission system. In addition, the Hampton Brookings County line will add capacity for an additional 700 MW of generation in Southwest Minnesota and eastern South Dakota. This project will also provide the foundation for future transmission projects from wind regions of western Minnesota and North and South Dakota. Edison Electric Institute 13

22 Transmission Projects Supporting Renewable Resources Minnesota Power Square Butte Electric Cooperative HVDC Line Purchase Project Description: Under an agreement, the company will purchase a HVDC transmission line from Square Butte Electric Cooperative for approximately $80 million. The 465 mile HVDC line with a total capacity of 500 MW, currently transports coal-generated energy from the Milton R. Young generating station in Center, North Dakota to a Minnesota Power substation in Hermantown, Minnesota. As part of the deal, Minnesota Power will gradually phase out the power it purchases from the Young station and replace it with wind generated electricity. Project Cost: Approximately $80 million. Project Status: The Minnesota Public Utilities Commission (MPUC) must grant prior approval for the purchase of the direct current (DC) line. Minnesota Power will also seek approval of related power purchase agreements and other regulatory treatment. FERC approval is necessary for Minnesota Power s purchase of the DC line and associated tariff changes. North Dakota Public Service Commission (NDPSC) approval is necessary to transfer three Route Permits and three Certificates of Corridor Compatibility issued to Square Butte for minor rerouting of the DC line in North Dakota. The transaction is subject to regulatory approvals and is anticipated to be completed in Project Investment Partners: None. Project Benefits: This project will provide access to 500 MW of wind capacity as Minnesota Power gradually phases out the power it purchases from the Young station to replace it with wind generated electricity. Minnesota Power will be reducing its carbon footprint by phasing out coal-based energy, while gaining access to vast renewable resources from wind rich North Dakota all by way of an existing transmission line. This project also provides Minnesota Power Cooperative the ability to put off the need for a new coal based generator to meet its demand. 14 Edison Electric Institute

23 NATIONAL GRID Company Background: National Grid is an international electricity and gas company and one of the largest investor-owned energy companies in the world. In the United States, National Grid delivers electricity to approximately 3.3 million customers in Massachusetts, New Hampshire, New York and Rhode Island, and manages the electricity network on Long Island under an agreement with the Long Island Power Authority (LIPA). National Grid maintains 8,500 circuit miles of overhead transmission lines and 100 circuit miles of underground cable and operates 501 electricity substations in the United States. Between 2001 and 2007 National Grid has invested approximately $935 million in the U.S. transmission system. Renewable Resource Profile: The total transmission investment currently supporting renewable resources is $4.8 million. The total present connected renewable energy resource capacity is 2,386 MW consisting of: Wind 370 MW Biomass 52 MW (New England only) Hydro 1,964 MW Of this connected renewable resource capacity the following projects were added within the last five years: Wind 370 MW (connected at 100 kv or higher) Biomass 4.8 MW There is a total of 5,565 MW of renewable energy resource projects in the interconnection queue: Wind 4,617 MW Biomass 113 MW Hydro 835 MW* (New England ) plus 8.5 MW (New York) *Note 666 MW is new pump storage Total renewable energy resource projects in the interconnection queue with executed Interconnection Service Agreements are: Landfill Gas, 2 projects 10MW Hydro, 1 project 170MW Wind, 2 projects 150MW National Grid uses a percent (summer peak) capacity factor for wind resources and 100 percent for Biomass. *Note: National Grid assumptions are for interconnections in New England and New York. Edison Electric Institute 15

24 Transmission Projects Supporting Renewable Resources National Grid Northeast Energy Link Project Description: Bangor Hydro-Electric and National Grid have partnered together to develop the Northeast Energy Link. The Northeast Energy Link is a proposal to build a 220 mile 660 MW HVDC transmission line from Orrington, Maine to eastern Massachusetts. The project would allow the import of renewable generation from Maine and New Brunswick in the Boston area. The project would include a phase shifter and AC-DC converter at Orrington and a DC-AC converter at the southern terminal. The project would be designed with the flexibility to upgrade to 1,200 MW at a future date. Project Cost: Estimated at $2 billion (current dollars). Project Status: Under construction and seeking regulatory approvals. Development work is continuing. Bangor Hydro-Electric and National Grid will seek recovery approval before initiating construction. The projected in-service date is Project Investment Partners: Bangor Hydro-Electric. Project Benefits: This project will: facilitate injections of northern New England supply resources into the eastern Massachusetts zone and subsequently reduce market prices for the entire New England region; allow for the development of additional renewable and low carbon resources in the region resulting in lower renewable trading clearing prices and reduced carbon emissions; create fuel diversity; increase reliability; and reduce north-south transmission congestion and transmission thermal losses. 16 Edison Electric Institute

25 NORTHEAST UTILITIES (NU) Company Background: NU operates New England s largest energy delivery system with operations in Connecticut, New Hampshire and Western Massachusetts covering 11,345 square miles. Member companies in NU s transmission business include Connecticut Light and Power (CL&P), Public Service of New Hampshire (PSNH), and Western Massachusetts Electric Company. NU delivers electricity to more than 1.8 million customers through over 3,000 transmission circuit miles. NU is a member of ISO New England (ISO-NE) and is making substantial investments in new substations, transmission and distribution facilities. Between 2001 and 2007 NU has invested approximately $1.8 billion into the transmission system. Between 2008 and 2012 NU expects to invest $3 billion into transmission system upgrades. Renewable Resource Profile: NU transmission investments to support the integration of renewable resources are part of the overall transmission system investments. The total connected renewable energy resource capacity is MW consisting of: MW Biomass Tires MW Biomass Wood MW Biomass Trash MW Hydro Run of River MW Hydro Pump Of this capacity, 8.8 MW of hydro capacity was added within the last five years. There is a total of 1, MW of renewable energy resource projects in the interconnection queue: MW Hydro Pump MW Wind MW Biomass Wood None of these renewable energy resource projects in the interconnection queue have executed Interconnection Service Agreements. NU uses the following capacity factors for renewable energy resources in their service area: Solar = 15.5% Wind = 32.0% Offshore Wind = 37.0% Edison Electric Institute 17

26 Transmission Projects Supporting Renewable Resources NU Hydro = 48.4% Biomass = 85.0% Landfill Gas = 85.0% Fuel Cell = 90.0% New Hampshire Northern Loop Project Project Description: New Hampshire Senate Bill 140 encourages the development of renewable generation in New Hampshire; however, existing transmission infrastructure (particularly in the northern part of New Hampshire) will need to be upgraded or replaced or new transmission facilities will need to be built since existing facilities cannot accommodate this new generation. The Northern New Hampshire Electricity Transmission Upgrades Ad Hoc Working Group (convened at the direction of the Legislature and coordinated by the New Hampshire Public Utilities Commission (NHPUC)) studied this challenge and issued a report offering the four potential options for upgrading the transmission system described in this project. The New Hampshire Northern Loop Project is aimed at reinforcing the 115 kv transmission loop running through Whitfield, Lost Nation and Berlin Substations (known as the Coos County Loop ) in order to interconnect substantial renewable generation resources in the region. The loop is currently loaded near its limit to allow the reliable transfer of electric power without damaging equipment or creating safety problems. The least expensive upgrades, which include a process known as re-sagging, would cost approximately $10 million dollars and would allow 100 MW (or an additional 40 MW) to be interconnected to the loop. Interconnecting new generation in excess of 100 MW to the loop requires more costly upgrades to both PSNH and National Grid transmission systems. There are four options being considered (the first three options assume the re-sagging will be implemented): Option 1 - Rebuild approximately 73 miles of transmission lines (plus substation upgrades) between Whitefield, Lost Nation, Berlin and back to Whitefield. This option would replace the entire existing 115kV Coos County loop with a higher capacity 115 kv line. It would also require PSNH and National Grid to upgrade a portion of their transmission system (approximately 65 miles plus substation upgrades). The estimated cost of these upgrades is approximately $210 million. This type of upgrade would allow new generation resources to interconnect anywhere on the loop. Option 2 - Construct a new 115 kv line running from Whitefield through Lost Nation ending at Dummer. This would allow the addition of up to 400 MW of new generation resources to connect to the new 115 kv line and the option of transferring the 100 MW connection for the first Noble wind project from the existing loop to the new line. The estimated cost of these upgrades is approximately $170 million. This plan would somewhat limit the siting locations of new generation resources. 18 Edison Electric Institute

27 Transmission Projects Supportin Renewable Resources NU Option 3 - Construct a new 50 mile 230 kv high-capacity line between Littleton and Dummer. This plan would require fewer upgrades as compared to upgrading the 115 kv loop described in Options 1 and 2. This plan would also free up 100 MW of additional transmission capacity on the existing loop and could accommodate over 500 MW of additional generation resources in this area. The estimated cost is approximately $160 million. This plan would somewhat limit the siting locations of new generation resources. Option 4 - As a potential interim measure, the existing loop would be upgraded to support the first 100 MW Noble wind project. Use of the ISO-NE Minimum Interconnection Standard (MIS), allowing additional generators to interconnect even if available transmission capacity does not exist to accommodate the full capacity desiring interconnection all of the time, could allow additional generation to interconnect as energy resources while transmission upgrades were made. Project Cost: The initial project cost is $10 million to $15 million for the first 100 MW worth of upgrades ( re-sagging ). The entire project cost is estimated to be $160 million to $210 million based upon the amount of generation to be accommodated and design of the project. Project Status: The project is being studied as part of the New Hampshire 10-year ISO-NE Study. This study is expected to be complete by the second quarter of Project Investment Partners: None. Project Benefits: This project will allow developing renewable resources to interconnect anywhere on the Northern Loop, and will increase line capacity and reliability. Edison Electric Institute 19

28 NV ENERGY Company Background: NV Energy is the name used by NV Energy, Inc. s two operating subsidiaries, Nevada Power Company d/b/a NV Energy (NVES) and Sierra Pacific Power Company, also d/b/a NV Energy (NVEN). NV Energy serves approximately 1.2 million customers over a 54,500 square mile area in southern and northern Nevada and northeastern California. System wide there are approximately 3,850 circuit miles of transmission. Between 2001 and 2007 NV Energy invested approximately $571 million into the transmission system. An additional $1.86 billion in transmission projects has been proposed to the Public Utilities Commission of Nevada (PUCN) since 2000 for resource planning approval. Of this $1.86 billion, $125.6 million was approved and is under construction, $1.6 billion was approved and has been deferred, and $135 million is required to be resubmitted. Renewable Resource Profile: As of 2007 NV Energy has MW of renewable resources on-line: 10.0 MW Biomass 11.4 MW Hydro 79.1 MW Solar MW Geothermal Of the connected renewable energy resources, the following were added within the last five years: MW Solar MW Geothermal NV Energy has MW of Power Purchase Agreements under development: MW Geothermal MW Wind For these renewable resource projects, $1.86 billion is being spent on associated transmission. The total renewable energy resource projects in the interconnection queue (NVES & NVEN) is 8, MW: NVES 8.00 MW Biomass MW Wind 2, MW Solar 20 Edison Electric Institute

29 Transmission Projects Supporting Renewable Resources NV Energy NVEN MW Geothermal MW Solar 3,397.0 MW Wind There is a total of MW of renewable energy resource projects in the interconnection queue with executed Interconnection Service Agreements: NVES NVEN 68.4 MW Solar 7.4 MW Hydro MW Geothermal NV Energy uses the following capacity factors for renewable energy resources in their service area: Solar = 22% Wind = 30% (Wind is treated as an energy resource; capacity factor does not imply contribution at time of peak). Geothermal = 78% Carson Lake South Fallon Project Project Description: NVEN will construct a new 230 kv substation along its existing Ft. Churchill Gonder 230 kv line. From this substation NVEN will build a 230 kv line, approximately 22 miles to a new 230/60 kv substation in south Fallon. Along this line NVEN will construct three taps for approximately 109 MW of geothermal output from three different geothermal projects. Project Cost: $35 million. Project Status: The project was originally approved by the PUCN in an amendment to the 2004 Sierra Pacific Power Company (SPPC) Integrated Resource Plan for the provision of transmission services to the NVEN system. The project received approval in the 2007 SPPC Integrated Resource Plan. The projected in-service date is between 2012 and Project Investment Partners: None. Project Benefits: The project will provide a second source into Fallon as well as integrate up to 109 MW of base load geothermal. Three different geothermal projects integrate into this line. Edison Electric Institute 21

30 Transmission Projects Supporting Renewable Resources NV Energy East Valley Master Plan Project Project Description: NVES will install two new 500/230 kv, 1,500 MVA substations, a new 1,500 MVA bank at an existing substation, one new 10-mile 500 kv line, and two new 230 kv lines on the east side of Las Vegas. These facilities are needed to integrate new 500 kv renewable resources into the NVES system. Project Cost: $397 million. Project Status: Received tentative approval in the 2006 Nevada Power Company (NPC) Integrated Resource Plan. The project components have been delayed from one to three years due to the economic slowdown in Las Vegas. This project is projected to be in-service between 2013 and Project Investment Partners: None. Project Benefits: The project will integrate more than 2,000 MW of future generation resources including approximately 600 MW of renewable energy, primarily base load geothermal - into the 230 kv transmission network on the east side of Las Vegas. Eastern Nevada Transmission Intertie Project Project Description: NV Energy will construct an approximately 280 mile 500 kv transmission line from southern Nevada to Ely, Nevada tying Nevada s electrical grid together by creating a direct interconnection between the NVEN and NVES systems. The project also adds one 500/345 kv substation. Project Cost: $420 million. Project Status: In November 2006, the PUCN granted its approval for the companies to begin developing the Eastern Nevada Transmission Intertie Project along with the proposed Ely Energy Center Project. The project is currently in the environmental permitting and preliminary design phase. The projected in-service date is late Project Investment Partners: None. Project Benefits: The proposed transmission line will im prove reliability and increase transfer capability by creating an important tie between NVEN and NVES. The project will also address the companies and the state s growing emphasis on development of renewable energy resources by improving access to electricity generated by renewable energy projects in the state. Finally, this project will connect the companies proposed Ely Energy Center to NVES and NVEN and provide the ability for renewable and other energy transfers between the two systems. 22 Edison Electric Institute

31 Transmission Projects Supporting Renewable Resources NV Energy North Las Vegas Area Routing and Siting Project (NVES) Project Description: NVES will construct a new 500/230/138/12 kv substation; install new quad circuit (two 230 kv and two 138 kv) and double circuit (two 230 kv) transmission lines in the North Las Vegas area for a total of approximately 90 miles. Project Cost: $231 million. Project Status: Received tentative approval in the 2006 NPC Integrated Resource Plan. The project was approved by the PUCN in 2006 for the provision of transmission services to the NVES system. Projected in-service dates are between 2007 and Project Investment Partners: None. Project Benefits: The project will accommodate growth in North Las Vegas and increase reliability in the northern Las Vegas Valley. Additionally, this project will reinforce the NVES Northwest Substation which is the proposed southern termination for a future west side EHV tie line. These facilities will expand the NVES capability to interconnect power at 230 kv in the northwest corner of the Las Vegas grid. This will allow NV Energy to connect the multiple identified projects (primarily solar) in this area. Edison Electric Institute 23

32 OTTER TAIL CORP. Company Background: Otter Tail Power is an investor-owned company that serves about 423 communities containing about 129,300 customers in a service area of about 50,000 square miles in Minnesota, North Dakota, and South Dakota. Otter Tail Power has about 5,300 circuit miles of transmission within the MISO. Between 2001 and 2007 Otter Tail Corp. invested approximately $32 million into the transmission system. Renewable Resource Profile: Otter Tail Corp. has approximately 70 MW of connected renewable energy resources. No new renewable energy resources were added within the past five years. Total renewable energy resource projects in the interconnection queue is approximately 60 wind projects totaling about 10,000 MW. Three of these potential wind projects have executed interconnection agreements. Big Stone Transmission Project Project Description: This project will install approximately 140 miles of new 230 kv and 345 kv transmission. The project consists of a 50 mile Big Stone to Morris 230 kv line uprate of an existing 115 kv line and a 90 mile Big Stone to Granite Falls 345 kv which is 50 miles new 345 kv and a 40 mile uprate of an existing 115 kv line. Big Stone Transmission is part of a project with a coal-fired power plant (nominally 600 MW) and the transmission additions for Big Stone II (second unit at site) were purposely oversized to enable the outlet for additional wind resource projects, 800 MW to 1,000 MW, in the area. Project Cost: $175 million. Project Status: There has been significant organized opposition to the coal project which has placed at risk the Big Stone Transmission additions through the permitting process in Minnesota. The project is currently in the permitting phase. Project Investment Partners: Central Minnesota MPA, Heartland Consumers Power District, MDU Resources Group Inc. and Missouri River Energy Services. 24 Edison Electric Institute

33 Transmission Projects Supporting Renewable Resources Otter Tail Corp. Project Benefits: The project will provide enhanced reliability of the regional system while increasing import capacity to meet base load requirements. The new line will allow Minnesota utilities generation portfolios to meet the required 25 percent renewable generation requirement and will increase transmission line capacity by 1,000 MW, along with other new regional facilities, allowing for the development of new wind farms in the Buffalo Ridge area, one of the areas in the Upper Great Plains with high wind potential. Edison Electric Institute 25

34 OGE ENERGY CORP. Company Background: OGE Energy Corp., through its electric utility subsidiary OG&E Services, serves over 780,000 customers in its 30,000 square mile service territory in Oklahoma and western Arkansas. OG&E owns over 5,500 circuit miles of transmission lines from 69 kv to 500 kv. OG&E is a member and its transmission facilities are under the operational control of the SPP RTO. Between 2001 and 2007 NV Energy invested approximately $283 million into the transmission system. Renewable Resource Profile: OG&E placed into service the 120 MW Centennial Wind project in January 2007 at a cost of approximately $180 million. The total renewable energy resource projects in the interconnection queue is 300 MW. None have executed interconnection agreements. OG&E uses a 40 percent capacity factor for wind resources. Northwest Woodward District EHV 345 kv Line Project Description: The Northwest Woodward District EHV 345 kv line will comprise approximately 120 miles of double bundled 1590 ACSR conductor with a thermal rating of 1,800 megavolt-amperes (MVA). According to the SPP, there is currently in excess of 2,300 MW of new wind generation proposed to be interconnected in the Woodward vicinity. Project Cost: $218 million. Project Status: Under construction with in-service date of December This line will facilitate OG&E s 2008 Wind Request for Proposal (RFP) which requests a 2010 in-service date to coincide with completion of Northwest Woodward 345 kv line. Project Investment Partners: None. Project Benefits: This project will provide access for the wind generation in northwest Oklahoma to the load center in the Oklahoma City, Oklahoma vicinity, and will also promote the construction of renewable generation in the area. 26 Edison Electric Institute

35 Transmission Projects Supporting Renewable Resources OGE Energy Corp. Tallgrass Transmission, LLC Project Description: The Tallgrass project consists of approximately 170 miles of 765 kv transmission from the Kansas-Oklahoma border north of Woodward, Oklahoma linking OG&E s station at Woodward and extending west into the Oklahoma panhandle to a new station near Guymon, Oklahoma. The project will connect with the proposed Prairie Wind 765 kv transmission project at the Kansas-Oklahoma border and integrate into the existing 345 kv system at Woodward and Guymon. As part of a larger EHV overlay proposed within the SPP, the Tallgrass project provides a critical path for the development of the significant renewable generation potential in the region. The SPP region has a high wind potential, and SPP s generation interconnection queue indicates over 40,000 MW of wind resources proposed for the region. Most of these projects will have difficulty connecting due to a lack of available transmission. With a capacity of over 4,000 MW, the Tallgrass project can provide a solid interconnection for these projects, facilitate regional energy transfers that may result from large scale wind development, and unload power flows on underlying lower voltage lines, freeing capacity on existing facilities to allow additional interconnections. This project, along with additional segments of the SPP EHV overlay, provides improved reliability for the SPP electric system while enabling the development of significant sustainable energy for the United States. Project Cost: $500 million. Project Status: In November of 2008, the FERC approved a formula rate filing for the Tallgrass Transmission projects in Oklahoma. OG&E is presently seeking RTO and applicable state and federal approvals. The project is scheduled for service by Project Investment Partners: Electric Transmission America (AEP & MidAmerican Energy). OG&E owns a 50% share of Tallgrass. AEP and Mid-American equally own the remaining 50% of Tallgrass. Project Benefits: Tallgrass Transmission will add substantial transmission capacity to support renewable generation development, provide relief of transmission constraints within SPP, enhance regional reliability, reduce system losses, and provide economic benefits through energy production cost savings and reduced congestion. Edison Electric Institute 27

36 PACIFIC GAS AND ELECTRIC COMPANY (PG&E) Company Background: PG&E serves over five million electric customers and over four million gas customers in Northern California over a 74,000 square mile service area. PG&E owns and operates 18,000 circuit miles of electric transmission lines at voltages of 60 kv, 70 kv, 115 kv, 230 kv and 500 kv. PG&E is taking a leading role along with the California Public Utilities Commission (CPUC), the California Energy Commission, the California Independent System Operator (CAISO), other utilities, land managers and environmental groups in a collaborative process known as the Renewable Energy Transmission Initiative (RETI). RETI will identify the electric transmission expansion necessary to reach California s 33 percent renewable energy procurement targets. Between 2001 and 2007 PG&E invested approximately $2.78 billion into the transmission system. PG&E plans to invest an additional $2.05 billion between 2008 and Renewable Resource Profile: PG&E currently has 8,380 MW of renewable nameplate capacity connected to its transmission system at 100 kv or higher. Large Hydroelectric* 4,921 MW Small Hydroelectric 318 MW Geothermal 1,569 MW Biomass 248 MW Wind 1,325 MW Within the last five years 389 MW of renewable resources have been added; predominantly wind resources. PG&E uses the following capacity factors for renewable resources: Biomas = 85% Geothermal = 95% Small Hydro = 52% Solar = 25% Wind = 34% 28 Edison Electric Institute

37 Transmission Projects Supporting Renewable Resources PG&E Canada - Pacific Northwest - California Transmission Project (CNC Project) Project Description: The CNC Project will transport up to 3,000 MW of power from new renewable resources in British Columbia, Canada to the Pacific Northwest and northern California, over a 1,000 mile transmission line. This project will enable and advance inter-regional and international development and integration of renewable energy resources, as well as provide a platform for integration and coordination of a number of regional transmission projects now being considered in the Pacific Northwest. The CNC Project is also expected to improve system reliability. The Preliminary Plan of Service involves (a) 500 kv high-voltage alternating current (HVAC) facilities from Selkirk in southeast British Columbia to the proposed Northeast Oregon (NEO) Station with an intermediate interconnection at Devils Gap Substation in Spokane, Washington (b) 500 kv HVDC facilities from NEO Station to Collinsville Substation in the San Francisco Bay Area with a possible third terminal at Cottonwood Area Substation in northern California (DC Segment), (c) voltage support at the interconnecting substations, and (d) remedial actions for project outages. The proposed north-to-south rating for the two project segments is 3,000 MW. Project Cost: $3 billion to $7 billion. Project Status: The Phase 1 rating study and preliminary plan-of-service were submitted to the Western Electricity Coordinating Council (WECC) on December 19, The project has completed the WECC Regional Planning process. The target operating date for the project is December Project Investment Partner(s): Avista Corporation, British Columbia Transmission Corporation, and PacifiCorp. Project Benefits: This project will provide access to significant incremental renewable resources in Canada and the northwestern United States, improve regional transmission reliability, and provide other market participants with beneficial opportunities to use the facilities. Edison Electric Institute 29

38 Transmission Projects Supporting Renewable Resources PG&E Central California Clean Energy Transmission Project (C3ET) Project Description: This project will install a 140 to 170 mile 500 kv overhead transmission line from Midway Substation to Gregg Substation or to a new 500/230 kv substation (E2) between Gregg Substation and Helms Pumped Storage Plant (PSP) in Kern and Fresno counties in the southern portion of the PG&E service area. Project Cost: $800 million to $1 billion based on a conceptual cost estimate. Project Status: This project is in the preliminary planning stage; 19 alternative plans of service are being investigated in the CAISO stakeholder process, and is anticipated to be operational during the third to fourth quarter of Project Investment Partner(s): None. Project Benefits: The C3ET Project is a multi-purposed project. The objectives of the C3ET Project are to: 1) enhance reliability to Yosemite/Fresno area, 2) increase utilization of the Helms PSP to enhance the value of off-peak generation, 3) facilitate efficient management of renewable resources, 4) increase Path 15 transfer capability by at least 1,000 MW, and 5) provide opportunity for future expansion. 30 Edison Electric Institute

39 PORTLAND GENERAL ELECTRIC COMPANY (PGE) Company Background: PGE is an investor-owned utility engaged in the generation, transmission and distribution of electricity to industrial, commercial and residential customers. PGE serves approximately 814,000 customers in 52 Oregon cities within a 4,000-square mile service territory. PGE s system consists of approximately 1,619 circuit miles of transmission and sub-transmission lines of which 668 miles are 230 kv and 500 kv. Between 2001 and 2007 PGE recorded approximately $100 million in transmission and subtransmission capital investments. Renewable Resource Profile: Since 2007, PGE has added 86 MW of renewable resources and has another 169 MW of renewable resources planned through Southern Crossing Project Project Description: The Southern Crossing Project, proposed by PGE, would expand the Company s transmission system across the Oregon Cascades with the construction of a new 500 kv transmission line. The project is designed to integrate PGE s Boardman and Coyote Springs generation resources, and to integrate up to 600 MW of proposed wind and thermal generation resources, and provide additional transmission capacity to PGE s service territory for future needs. The total project distance end to end is approximately 200 miles of new 500 kv transmission lines starting with the installation of a new 500/230 kv transformer bank at PGE s Bethel substation near Salem, Oregon and ultimately terminating at PGE s Coyote Springs generation plant in the town of Boardman, Oregon. The project will parallel PGE s existing Bethel to Round Butte 230 kv line for the first 72 miles east of Salem, and parallels existing utility lines for the remaining 110 miles to Boardman substation, and approximately 18 miles of new right-of-way (ROW) will be needed for the Boardman to Coyote Springs 500 kv line. Edison Electric Institute 31

40 Transmission Projects Supporting Renewable Resources PGE The Southern Crossing Project is included for coordination along with eight significant new high voltage transmission projects currently under consideration in the northwestern United States. PGE and seven other utilities have initiated the coordination of technical studies for completing WECC Regional Planning and Project Rating Review. The sponsors anticipate completion of the WECC Phase I Project Rating Studies by the first quarter of Project Cost: $600 million to $700 million. Project Status: PGE has submitted its Regional Planning Guidelines report to WECC for comments and review. PGE will submit a final draft by the end of February 2009, and anticipates completion of the WECC Phase I Project Rating Studies by the first quarter of The project is anticipated to be in service in Project Investment Partners: None. Project Benefits: The project will provide access to firm transmission service for new renewable resources, predominantly wind generation. The project will also provide an opportunity to improve the reliability of supply to the southern area of PGE s system by providing additional transmission capacity across the West-of-Cascades-South cut plane. One of the main objectives of the project is to facilitate PGE s ability to integrate renewable resources and meet the State of Oregon s Renewable Energy Standard (RES). 32 Edison Electric Institute

41 SOUTHERN CALIFORNIA EDISON (SCE) Company Background: SCE s service area covers 430 cities and communities in 50,000 square miles encompassing 11 counties in central, coastal and Southern California serving 13 million people and nearly 300,000 businesses. The SCE-owned transmission grid is under the operational control of the CAISO. SCE s system consists of over 12,000 circuit miles of transmission and sub-transmission facilities. SCE continues to make significant investments in its transmission grid to serve growing customer load, maintain reliability, access renewable energy resources, and support a competitive and robust electricity marketplace. Transmission investments include projects that are expected to: 1) increase the capability for transfers of power between California and other regions; 2) facilitate the development and delivery of remotely located renewable resources to customers; and 3) maintain reliability of the electric system and serve growing customer load. SCE is also making substantial investments in new substations, transformers, and distribution facilities, and advanced technologies that will move SCE towards a more integrated Smart Grid. Between 2001 and 2007 SCE recorded approximately $1.84 billion in transmission and subtransmission capital investments. SCE has plans to invest approximately $5.48 billion in additional transmission and subtransmission infrastructure from 2008 through Renewable Resource Profile: SCE s dedicated firm and as-available contract renewable energy capacity is 2,750 MW. Since 2004 firm and as-available contract renewable capacity has increased by 68 MW. As of January 2009 SCE had 130 active interconnection requests from renewable resources comprising 37,400 MW, inclusive of interconnection requests to the CAISO transmission system and to SCE s distribution system. SCE uses historical performance to forecast deliveries for determining renewable energy resource capacity factors. The average annual capacity factors are based on the sum of expected online, dedicated firm and as-available capacity for each project aggregated by technology: Biomass = 83.1% Geothermal = 99.4% Small hydro = 30.3% Solar = 19.9% Wind = 25.7% Edison Electric Institute 33

42 Transmission Projects Supporting Renewable Resources SCE Devers Palo Verde No. 2 (DPV2 Project) Project Description: This project will involve construction of a new major regional transmission line that will strengthen the western electrical grid and facilitate the development of renewable resources. The project calls for the construction of a new 230 mile 500 kv transmission line from Devers Substation (near Palm Springs, California) to Harquahala (west of Phoenix, Arizona). The new line would also require upgrades to some of SCE s existing electrical transmission facilities in California, including construction of a new 41.6 mile 500 kv transmission line between SCE s Devers and Valley Substations. Project Cost: $680 million. Project Status: Despite approvals by the CPUC and the Arizona Power Plant and Transmission Line Siting Committee, the Arizona Corporation Commission (ACC) denied approval of the DPV2 Project on June 6, SCE continues to address this initial denial. Also, at FERC, SCE initiated a Pre-filing Review Process in May 2008 for the DPV2 Project under the EPAct 2005 rules. SCE completed an initial consultation with FERC in January 25, 2008, and a decision on a formal filing with FERC is expected to be made in the first quarter of The estimated in-service date is Project Investment Partners: None. Project Benefits: This project will facilitate the development of renewable resources. Tehachapi Renewable Transmission Project (TRTP) Project Description: TRTP includes over 250 miles of new and upgraded high-voltage transmission lines, in addition to substation and associated facilities. TRTP will extend from eastern Kern County, California to the City of Ontario in San Bernardino County, California, traversing portions of the Antelope Valley, the Angeles National Forest, the San Gabriel Valley, and the western Inland Empire. Project Cost: Over $2 billion. Project Status: In 2007, SCE received CPUC approval for Segments 1-3 for Tehachapi. SCE s request for Segments 4-11 is pending before the CPUC. Project Investment Partners: None. 34 Edison Electric Institute

43 Transmission Projects Supporting Renewable Resources SCE Project Benefits: TRTP will support renewable generation development, enabling California utilities to meet their RPS goals; improve the reliability of the California transmission grid by enabling the expansion of the transfer capability of Path 26, one of the state s most important north/south transmission corridors; serve load growth in the Antelope Valley; and ease transmission constraints in the Los Angeles basin. Edison Electric Institute 35

44 WESTAR ENERGY, INC. Company Background: Westar Energy, Inc., and its electric utility subsidiary Kansas Gas and Electric Company (Westar), serve over 675,000 customers in the eastern third of Kansas. Westar owns and maintains over 6,100 miles of transmission lines from 34.5 kv to 345 kv. Westar is a member and its transmission facilities are under the operational control of the SPP RTO. From 2006 through 2008, Westar invested approximately $220 million into its transmission system. Renewable Resource Profile: Westar currently has 150 MW of wind connected to its transmission system, all of which has been connected within the last five years. Two additional wind farms totaling 200 MW are anticipated to be online in early Westar assumes a 30 to 40 percent capacity factor for wind resources. Prairie Wind Transmission, LLC Project Description: The Prairie Wind project consists of approximately 230 miles of 765 kv transmission extending from Wichita, Kansas, west to a substation northeast of Dodge City, Kansas, and then south to the Kansas border from Medicine Lodge, Kansas. The project will connect with the proposed Tallgrass 765 kv transmission project at the Kansas-Oklahoma border and integrate into the existing 345 kv system near Dodge City and Wichita. As part of a larger EHV overlay proposed within the SPP, the Prairie Wind project provides the first critical path for the development of the significant renewable generation potential in the region. The project will be the first 765 kv transmission built in the United States, west of the Mississippi River. The SPP region has a high wind potential and SPP s generation interconnection queue indicates over 40,000 MW of wind resources proposed for the region. Most of these projects will have difficulty connecting due to a lack of available transmission. With a capacity of over 4,000 MW, the Prairie Wind project can provide a solid interconnection for these projects, facilitate regional energy transfers that may result from large scale wind development, and unload power flows on underlying lower voltage lines, freeing capacity on existing facilities to allow additional interconnections. This project, along with additional segments of the SPP EHV overlay, provides improved reliability for the SPP electric system while enabling the development of significant sustainable energy for the United States. 36 Edison Electric Institute

45 Transmission Projects Supporting Renewable Resources Westar Energy, Inc. Project Cost: $600 million. Project Status: Seeking RTO and applicable state and federal approvals. The project is scheduled for service by Project Investment Partners: Electric Transmission America (AEP & MidAmerican Energy) and Westar Energy. Project Benefits: Prairie Wind Transmission will add substantial transmission capacity to support renewable generation development, provide relief of transmission constraints within SPP, enhance regional reliability, reduce system losses, and provide economic benefits through energy production cost savings and reduced transmission congestion. Edison Electric Institute 37

46 XCEL ENERGY INC. Company Background: Xcel Energy Inc. (Xcel Energy) has operations in ten Western and Midwestern states (Colorado, Kansas, Michigan, Minnesota, New Mexico, North Dakota, Oklahoma, South Dakota, Texas and Wisconsin) serving 3.3 million electric customers. Northern States Power (NSP), Public Service of Colorado (PSCo) and Southwestern Public Service (SPS) are subsidiaries of Xcel Energy. System wide, there are approximately 17,000 circuit miles of transmission line. Between 2001 and 2007, Xcel Energy has invested approximately $1.4 billion into the transmission systems of the Xcel Energy operating companies. Northern States Power Companies (NSP Companies) Company Background: Northern States Power Company, a Minnesota corporation (NSPM), and Northern States Power Company, a Wisconsin corporation (NSPW) (jointly NSP Companies), operate an integrated system in Minnesota, North Dakota and South Dakota, and Wisconsin and the Michigan Upper Peninsula. The NSP Companies have approximately 1.4 million retail and wholesale customers, and operate approximately 7,100 circuit miles of transmission. Renewable Resource Profile: The total connected renewable energy resource capacity is 1,352 MW: 38 Edison Electric Institute 71 MW Biomass 268 MW Hydro (69 kv and above) 1,013 MW Wind Of this renewable energy resource capacity, 719 MW was added within the last five years: 25 MW Biomass 694 MW Wind The total renewable energy resource projects anticipated to be added in the next five years is 1,528 MW: 28 MW Biomass 1,500 MW Wind

47 Transmission Projects Supporting Renewable Resources Xcel Energy Inc. There are currently four executed Interconnection Service Agreements for wind projects with projected in-service dates in the timeframe. These projects, connecting to the 100 kv or above transmission system, total 380 MW. Buffalo Ridge Incremental Generation Outlet (BRIGO) Project Description: This project will install approximately 40 miles of new and upgraded transmission to provide deliverability for over 350 MW of wind resources. The lines that will be constructed include: Fenton to Nobles: A new 115 kv line #2 in Nobles County, Minnesota, connecting the Fenton Substation and Nobles County Substation. Nobles County Transformer: A new 345/115 kv, 672 MVA transformer #2 will be added to the Nobles County Substation located east of Sioux Falls, South Dakota in Nobles County. Lake Yankton to SE Marshall: A new 115 kv line from the Lake Yankton Substation, south of Marshall in Lyon County, Minnesota, to the new SE Marshall Substation located south of Marshall, Minnesota. Yankee to Brookings County: A new 115 kv line #2 from the Yankee Substation, northwest of Buffalo Ridge in Lincoln County, Minnesota, to the Brookings County Substation located in Brookings County, South Dakota. Brookings County Transformer: A new 345/115 kv, 448 MVA transformer #2 will be added to the Brookings County Substation located in Brookings County, South Dakota. Project Cost: $65 million. Project Status: NSPM has received a Certificate of Need from the MPUC. NSPM has received route permits from the MPUC. A facility permit for the 115 kv facilities to be constructed in South Dakota is pending approval. The projects are expected to be complete by the end of Project Investment Partners: None Project Benefits: In addition to helping the development of an additional 350 MW of wind generation in Southwest Minnesota and eastern South Dakota, the improvements will strengthen the transmission system, and provide more reliable electrical service to local communities and municipal utility and rural cooperative customers. Edison Electric Institute 39

48 Transmission Projects Supporting Renewable Resources Xcel Energy Inc. CapX2020 Transmission Plan Project Description: CapX2020 is a joint initiative of 11 transmission-owning utilities, including the NSP Companies, in the Upper Midwest to expand the electric transmission grid to ensure continued reliable service to 2020 and beyond. Planning studies show that customer demand for electricity will increase by 4,000 MW to 6,000 MW by The first group of four proposed lines would span over 700 miles, and include: A 240 mile, 345 kv transmission line between Brookings County, South Dakota, and Hampton, Minnesota, plus a related 345 kv line between Marshall and Granite Falls, Minnesota. A 250 mile, 345 kv transmission line between Fargo, North Dakota, and St. Cloud and Monticello, Minnesota. A 150 mile, 345 kv transmission line between Hampton and Rochester, Minnesota, continuing to La Crosse, Wisconsin. A 70 mile, 230 kv transmission line between Bemidji and Grand Rapids in North Central Minnesota. Of these new transmission lines, the Hampton-Brookings County 345 kv line provides access to the wind generation resources in Southwest Minnesota and eastern South Dakota. The line is expected to increase the delivery of generation from this resource rich region by 700 MW. While the other lines are driven primarily for reliability needs, they will also facilitate future wind development by providing the necessary infrastructure underpinnings to support other wind focused transmission additions. Project Cost: The first group of four lines will cost between $1.4 billion and $1.7 billion (2007 dollars). Of this total, approximately $650 million is associated with the wind generation supporting Hampton Brookings County line. Project Status: Minnesota Certificate of Need applications have been filed with decisions expected in The Minnesota route permit applications have been filed for two of the projects with the other two to be filed in 2009, as well as all necessary regulatory permits in North Dakota, South Dakota and Wisconsin. The projected in-service date is between 2013 and Project Investment Partners: Central Minnesota Municipal Power Agency, Dairyland Power Cooperative, Great River Energy, Minnesota Municipal Transmission Group, Minnesota Power, Minnkota Power Cooperative, Missouri River Energy Services, Otter Tail Power Company, Rochester Public Utilities, Southern Minnesota Municipal Power Agency, WPPI Energy and Xcel Energy. Project Benefits: The project will alleviate emerging community service electric reliability issues around the Upper Midwest and strengthen the regional transmission system. In addition, the Hampton Brookings County line will add capacity for an additional 700 MW of generation in Southwest Minnesota and eastern South Dakota. This project will also provide the foundation for future transmission projects from wind regions of western Minnesota and North and South Dakota. 40 Edison Electric Institute

49 Transmission Projects Supporting Renewable Resources Xcel Energy Inc. Corridor Project Project Description: This project (double circuit 345 kv line) is expected to utilize a current transmission line corridor between the Minneapolis area and western Minnesota. The final terminations have not yet been determined but this is expected to be a 220 to 250 mile project. The purpose of this project is to further increase access to the wind resources in western Minnesota and eastern North and South Dakota. This capability developed in response to the state of Minnesota s 2007 RES and supports NSPM and other utilities to meet their renewable 2016 target. Project Cost: Approximately $600 million to $900 million depending on final route determination. Project Status: NSPM is leading the study work for this project, with an expected study completion date of March 31, An in-service date of 2015 is currently anticipated to facilitate Minnesota meeting its 2016 RES milestone. Project Investment Partners: All utilities in the Minnesota Transmission Owners (MTO) group are sharing the cost of the study work; however, final project investment partners have yet to be determined. Project Benefits: During the study work for the Brookings - Twin Cities 345 kv line, it was determined that the next limiter to generation on the Buffalo Ridge, as well as North and South Dakota was the 230 kv line from Minnesota Valley - Blue Lake. Upgrading the capacity of this corridor unlocks delivery capacity for generation to reach the Twin Cites load center. Pleasant Valley Transmission Project Project Description: This project will install approximately 45 miles of new and upgraded transmission to provide deliverability for over 700 MW of wind resources. This capability developed in response to the state of Minnesota s 2007 RES and supports NSPM and other utilities in meeting their 2010 and 2012 renewable targets. In addition to wind outlet, there is a load serving benefit to the City of Rochester. The lines that will be installed include: Pleasant Valley to Byron: A new 161 kv line in Olmstead County connecting the Pleasant Valley Substation and the Byron Substation east of the City of Rochester. Pleasant Valley Transformer: A new 345/161 kv, 500 MVA transformer #2 will be added to the Pleasant Valley Substation located southeast of Rochester. Edison Electric Institute 41

50 Transmission Projects Supporting Renewable Resources Xcel Energy Inc. Pleasant Valley to Willow Creek: A new 161 kv line in Olmstead County connecting the Pleasant Valley Substation to the Willow Creek Substation on the south side of Rochester and construction of the new St. Bridget Substation south of the city of Rochester. Project Cost: $41 million. Project Status: NSPM expects to file the MPUC Certificate of Need and Route Permit applications in early In-service dates of 2010 and 2012 are anticipated. Project Investment Partners: Rochester Public Utilities, Great River Energy, and Southern Minnesota Municipal Power Agency. Project Benefits: In addition to facilitating the development of wind generation in southeast Minnesota, the improvements will strengthen the transmission system, and provide more reliable electrical service to the City of Rochester and the surrounding local communities and customers. Southwest Minnesota Wind Outlet Expansion Project Project Description: This recently completed project constructed approximately 220 miles of new transmission line and upgraded 300 miles of existing transmission to increase the deliverability of high quality wind generation resources on the Buffalo Ridge area of Southwest Minnesota from nearly 600 MW to over 800 MW of total capability. This capability is fully utilized by wind generation resources. The new lines include: Lakefield Junction to Fox Lake: A new 27 mile 161 kv line in Jackson and Martin counties, connecting the Lakefield Junction Substation near Lakefield and Fox Lake Substation near Sherburne, Minnesota. Split Rock to Lakefield Junction (includes Chanarambie to Nobles County): A new 95 mile 345 kv line connecting Lakefield Junction Substation in Minnesota with Split Rock Substation near Sioux Falls, South Dakota. This project also includes a new 115 kv line in Nobles and Murray counties that ties into the 345 kv line at the Nobles County 345 kv substation and will connect to the existing Chanarambie Substation near Buffalo Ridge. Buffalo Ridge to White: A new 26 mile 115 kv line from the Buffalo Ridge Substation, southeast of Lake Benton in Lincoln County, to White Substation, south of Brookings in South Dakota. Project Cost: $310 million. Project Status: This project was completed in Project Investment Partners: None. Project Benefits: In addition to helping the growth of nearly 600 MW of high quality wind generation in Southwest Minnesota and eastern South Dakota, the improvements will strengthen the transmission system, and provide more reliable electrical service to local communities and rural cooperative customers. 42 Edison Electric Institute

51 Transmission Projects Supporting Renewable Resources Xcel Energy Inc. Public Service of Colorado (PSCo) Company Background: PSCo operates in Colorado, and owns approximately 4,000 circuit miles of transmission 69 kv and above. Renewable Resource Profile: The present overall connected renewable energy resource capacity is 1,075 MW of wind generation. Of this connected renewable energy resource capacity 1,015 MW of wind capacity was added within the past five years. Within its queue, PSCo has identified wind interconnection requests totaling 9,133 MW. Of these, 12 wind generation projects totaling 1,782 MW have executed interconnection agreements. In addition, PSCo has identified 1,430 MW of solar generation interconnection requests. Of the projects in the interconnection queue the following renewable energy resource capacity is anticipated to be added within the next five years: 200 to 600 MW Solar 500 MW Wind Pawnee Smoky Hill 345 kv Transmission Project Project Description: The project is proposed in accordance with Colorado Senate Bill SB to facilitate potential generation resource development in Energy Resource Zones (ERZ) 1 and 2. This project consists of three sections. Section 1 consists of approximately 79 miles of new transmission south from Pawnee Substation. Section 2 is approximately 15 miles and will utilize an existing Public Service transmission corridor. For this section, an existing 15 miles of existing single circuit H-frame construction 230 kv line will be replaced with double-circuit steel 345 kv capable transmission. One circuit will be used to complete the Pawnee Smoky Hill 345 kv circuit. Section 3 consists of one mile of 345 kv new transmission that will be built for the last mile into the Smoky Hill Substation. As with Section 1, the transmission in Section 3 will be built 345 kv double-circuit capable. This project would require new 345 kv switchyards at Pawnee and at Smoky Hill. Two three-phase 560 MVA 345/230 kv autotransformers are recommended at Pawnee Substation. At Smoky Hill it is recommended that three single-phase units are needed to allow 750 MVA of 345/230 kv autotransformation. Project Cost: Approximately $132 million. Project Status: Certificate of Public Convenience and Necessity (CPCN) application submitted October 1, The planned in-service date is Edison Electric Institute 43

52 Transmission Projects Supporting Renewable Resources Xcel Energy Inc. Project Investment Partners: None. Project Benefits: The Pawnee Smoky Hill project will help to facilitate the development of renewable generation in Colorado, provide a means to transmit new generation resources, and improve overall system reliability. San Luis Valley Calumet 230 kv Transmission Project Project Description: The project is proposed in accordance with Colorado Senate Bill SB to facilitate potential generation resource development in ERZ 4 and 5. This project consists of building 95 miles of new, double-circuit transmission, built from the San Luis Valley Substation to the proposed Calumet Substation, approximately six miles north of the existing Tri-State Generation and Transmission (TSG&T) Walsenburg Substation. The new transmission will be operated at 230 kv. The transmission for this section will require new ROW acquisition. The section should be built using single-pole steel structures, where possible, and assume one-conductor of 1,272 thousand circular mils (kcmil) conductors. The new Calumet Substation should be large enough to accommodate 230 kv and 345 kv equipment and autotransformers. Project Cost: Approximately $90 million. Project Status: The anticipated in-service date is between 2013 and Project Investment Partners: Tri-State Generation and Transmission (TSG&T) Project Benefits: The San Luis Valley - Calumet project will help to facilitate the development of renewable generation in Colorado, provide a means to transmit new generation resources, and improve overall system reliability. 44 Edison Electric Institute

53 Southwestern Public Service (SPS) Company Background: SPS operates transmission facilities in Texas, New Mexico, Kansas and Oklahoma. SPS operates approximately 6,300 circuit miles of transmission 69 kv and above. Renewable Resource Profile: The overall connected renewable energy resources is 919 MW of wind generation. Of this connected renewable energy resource capacity, approximately 840 MW of wind capacity was added within the last five years. A total of 1,500 MW of wind capacity is in the interconnection queue. SPP manages all the generation interconnection requests to the SPS transmission system. SPS has identified 60 interconnection requests (a total of 15,641 MW) of which the vast majorities are on or near the SPS transmission system. SPS currently has two executed wind interconnection projects with projected in-service dates in the timeframe. These projects, connecting to the 100 kv or above transmission system, total 330 MW. In addition SPS has several interconnection projects in suspension. These suspended projects total 1,213 MW. Texas North Expansion Project (TNEP) Project Description: The TNEP construction plan will require the construction of 213 miles of new 230 and 115 kv transmission lines, and three high-voltage interchanges and switching stations at various locations to connect to the existing SPS transmission system. The cornerstone of the TNEP projects is the Hitchland Intg. 345/230/115 kv interchange. This will be constructed in the middle of the existing Potter-Finney 345 kv transmission line. From this interchange, the Moore County Hitchland 230 kv line, and the Hitchland Prairie 230 kv line will be constructed. 115 kv transmission line construction from Hitchland will connect the new interchange into the existing transmission network in the Oklahoma panhandle. Project Cost: Approximately $109 million. Project Status: In-service dates of 2010 and Project Investment Partners: None. Transmission Projects Supporting Renewable Resources Xcel Energy Inc. Project Benefits: The project goal is to increase reliability, reduce congestion, and allow additional load serving capability in the areas from Amarillo, Texas to Guymon, Oklahoma. The TNEP segments are located in area experiencing significant requests for wind generation interconnections, and the TNEP facilities will facilitate the interconnection of additional wind generation in the north Texas panhandle. Edison Electric Institute 45