CONNECTING. Big Chino Valley Pumped Storage Project. Energy Infrastructure

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1 CONNECTING Energy Infrastructure Big Chino Valley Pumped Storage Project Brian Studenka, Director, ITC Grid Development Andrew Jamieson, Regulatory Counsel, ITC Kim Goodnight, Regional Manager, Community Affairs, ITC Devin Malkin, Licensing Manager & Senior Scientist, HDR Don Pool, Hydrology Consultant; Hydrologist, USGS Arizona Water Science Center, June 27, 2018

2 Agenda Introductions and Announcements Overview of Proposed Project Facilities Pumped Storage Facility Primary Transmission Lines Operations Review of Existing Information and Stakeholder Feedback on Proposed 2018 Studies Review of, and Stakeholder Feedback on, 2019 Study Plan Outlines and Process Overview of FERC Process Timeline / Action Items 2

3 ITC Who We Are LEADER IN GRID DEVELOPMENT OWNER & OPERATOR GENERATOR CONNECTIONS Customer- Focused Solutions PREFERRED TRANSMISSION PROVIDER NON-TRADITIONAL INFRASTRUCTURE 3

4 Community Engagement ITC is committed to transparency and engagement with stakeholders throughout this process to: Assess project viability Become a valued neighbor Address our environmental approach Ensure project benefits are realized throughout the region. 4

5 Big Chino Valley Pumped Storage Project Project Facilities Project Operations Project Benefits 5

6 Project Overview 2,000 MW closed loop pumped storage hydro (PSH) facility Located 5 miles southeast of Seligman, Arizona One powerhouse, two reservoirs (420 acres) surface area at highest elevation Three potential transmission interconnections Daily operational schedule of 10 hours generating and hours pumping Would convert ~3,000 acres currently used for grazing Project will support successful implementation of public policy goals for renewable energy 6

7 What is Pumped Storage? Custom plant built with reversible turbines to pump water from a lower reservoir to an upper reservoir during periods of low demand / prices or high variable generation supply Electricity can be generated on demand by flowing the water back through a turbine to the lower reservoir Pumped storage is like a large and flexible electric battery In use world-wide 7

8 Water Resources The Project is located within the Big Chino sub-basin A one-time volume of ~27,000 acre-feet is needed to fill the reservoirs Closed-loop design limits water consumption Operations will result in ~925 acre-feet of evaporated loss per year less than the current ~1,500 acre-feet used annually for agriculture on the existing ranch property ITC will work with all interested parties to maintain long-term stewardship of the water and land in the region Proposed water source 8

9 Water Resources (continued) The Project envisions withdrawing groundwater as the primary source Hydrogeological modeling is underway with interested stakeholders to assess the extent and impact of groundwater withdrawal We are considering a combination of shortterm and long-term mitigation and off-set strategies based on sound science and stakeholder input Short Term: temporary off-set of current agricultural irrigation Long Term: Securing Project land will enable us to restrict future land use such as residential development opportunities on upwards of 45,000 acres Proposed water source 9

10 Transmission Interconnection Plan - In Assessment Phase Potential Interconnections: 500 kv tie at Peacock Substation (WAPA) 500 kv tie into Moenkopi-Eldorado (APS/SCE) 500 kv tie into Yavapai Substation (APS) Existing Transmission Tie-in Moenkopi-Eldorado (Future Substation) Peacock Substation Yavapai Substation 10

11 Why Pumped Storage? Increases reliability and stability of the electrical grid and regional generation Firming of renewable resources Reduced resource cycling and renewable curtailment Captures renewable resources when they are available to be redeployed Arizona State University study estimates the project will generate an additional $5.1 billion to statewide GDP, and 45,871 additional job years of employment over 25-year period. 11

12 Big Chino Valley Pumped Storage Project Questions/Comments? Project Facilities Project Operations Project Benefits 12

13 Big Chino Valley Pumped Storage Project 2018 Studies 13

14 2018 Studies Cultural Resources Study Special-Status Plants and Noxious Weeds Field Study Preliminary Jurisdictional Determination of Waters of the United States Visual and Aesthetic Study Vegetation Mapping and Habitat Assessments Field Study Meteorological Monitoring Groundwater Resources Modeling 14

15 Overview of Study Approach Input and comments welcome Shared data and results Study areas added as Projectaffected lands are defined Existing information summarized in study plans and detailed in PAD Interim reporting fall 2018 All data and analyses in FERC license application 15

16 2018 Study Area 16

17 2018 Study Area 17

18 2018 Study Area 18

19 Groundwater Modeling Study Objective: Project impacts on Big Chino groundwater, Verde River and residential wells. Existing Information: Regional groundwater model and observed changes since Methods: Geophysics and test drilling to evaluate aquifer productivity near Project site, modification of regional model to include new information, and groundwater modeling calibration to hydrologic observations using parameter estimation methods. Status and Schedule: Modify model through August, followed by calibration and scenario simulations through December. Questions/Comments? 19

20 Cultural Resources Study Objective: Identify and evaluate cultural resources potentially affected by the Project. Support FERC s 106 process. Existing Information: No prior surveys in 2018 study area. Methods: Archaeological surveys and Tribal consultation. As FERC s representative, ITC requesting initial 106 meetings and Tribal/SHPO input. Status & Schedule: 2018 survey preliminary work has started; site recording and NRHP eligibility determination in progress. 20

21 Botanical Study Objective: Document potential Project effects on special-status plants and noxious weeds in 2018 Study Area. Existing Information: No existing survey data from Study Area. AZGFD, SEINet & USFWS database queries and lists of potential species included in PAD and Study Plan. Methods: Intuitive Controlled Survey Protocol surveys (also meets ASLD protocols) Status & Schedule: Two survey passes completed. No ESA or USFS species; one noxious weed. 21

22 Jurisdictional Determination Study Objective: Assess potential Project effects on USACE-jurisdictional lands; inform 404 permitting. Existing Information: National Wetland Inventory mapping presented in PAD. Methods: Desktop delineation in GIS; field assessment of selected sites using USACE criteria. Status & Schedule: Field work in process; 96 stream features sampled. 22

23 Visual Resources Study Objective: Assess potential Project effects on visual/aesthetic resource goals and objectives for applicable agencies. Existing Information: No existing survey information in 2018 Study Area. Methods: Digital photosimulation at Key Observation Points (KOP). Status & Schedule: KOP identification scheduled for summer

24 Habitat Mapping Study Objective: Assess potential Project effects on wildlife habitats and potential wildlife usage. Existing Information: 11 habitat types identified by AZGFD HabiMap data base described in PAD and study plan. Methods: Ground-truthing of all habitat polygons; wildlife observations during field work. Status & Schedule: Field work September

25 Meteorological Monitoring Objective: Provide on-site data for refinement of estimates of evaporation and precipitation to increase confidence in annual reservoir water budget estimates. Scope: Continuously measure precipitation and parameters needed to estimate evaporation to supplement regional data. Methods: Standard meteorological weather station Status: Installed (June 13, 2018) and operating Schedule: Ongoing Questions/Comments? 25

26 2019 Study Plan Development Process Traditional Cultural Properties study 2018 studies expanded to transmission line corridors Continuation of Groundwater Modeling study Review of stakeholder study requests received by August 30,

27 2019 Study Plan Development Process Address Stakeholders Comments from the Joint Meeting (July 2018) Circulate 2019 Study Plan Outlines to Stakeholders (early August) Stakeholder Study Requests (August 30, 2018) Follow-up with Stakeholders (September 2018) Circulate Draft Study Plans (September 2018) Stakeholder Comments (October 2018) Finalize 2019 Study Plans (November 2018) 27

28 Overview of Major Licensing Milestones Stakeholder Study Requests Due August 30, 2018 FERC Issuance of Scoping Document 1 September 2018 Update Stakeholders re Status of 2018 Studies October 2018 FERC Scoping Meeting and Stakeholder Scoping Comments November 2018 Finalize 2019 Study Plans December 2018 FERC Issuance of Scoping Document 2 December Studies Jan-Aug 2019 Distribution of Draft License Application for Stakeholder Review September 2019 Stakeholder Comments on Draft License Application December 2019 Final License Application Filed with FERC February

29 STAKEHOLDER STUDY REQUESTS Stakeholder comments should: Identify the requested studies and the information needed; Explain the basis for the request; Discuss the applicable resource issues and the stakeholder s goals and objectives for the resource; Explain why each recommended study methodology is more appropriate than other study methodologies; Document that the recommended methodology is a generally accepted practice; and Explain how the studies and information requested will further resource goals and objectives that are affected by the Project. 18 CFR 4.38(b)(5) 29

30 Review of Action Items 30

31 Acronyms and Definitions APS: Arizona Public Service ASLD: Arizona State Land Department AZGFD: Arizona Game & Fish Department ESA: Endangered Species Act FERC: Federal Energy Regulatory Commission GIS: geographical information system GDP: gross domestic product KOP: key observation points kv: kilovolt MW: megawatt NRHP: National Register of Historic Places PAD: pre-application document PSH: pumped storage hydroelectric SCE: Southern California Edison SHPO: State Historic Preservation Office USACE: United States Army Corps of Engineers USFS: United States Forest Service USFWS: United State Fish & Wildlife Service WAPA: Western Area Power Administration 31

32 Thank You! Questions and Discussion For more information about the Big Chino Valley Pumped Storage project: Website: For more ITC ITCHoldings 32