SunZia Southwest Transmission Project

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1 SunZia Southwest Transmission Project WECC 2011 Annual Progress Report Submitted by SouthWestern Power Group February 25, 2011

2 Table of Contents I. Introduction II. Project Description III. Plan of Service VI. Project s Current Status V. Planned Project In Service Date VI. Arizona and New Mexico EHV System List of Figures Figure 1: The SunZia Southwest Transmission Project One-Line Diagram Figure 2: Arizona - New Mexico Regional EHV Transmission Map i

3 SunZia Southwest Transmission Project WECC 2011 Annual Progress Report I. Introduction SunZia Southwest Transmission Project (SunZia or the Project) is a major new 500 kilovolt (kv) participation transmission project that is envisioned to provide additional transmission interconnections and transmission capacity between central New Mexico and central Arizona. SunZia would enable the development of renewable energy resources by creating access to the interstate power grid across the Southwest. The proposed rating of SunZia is 3,000 MW and the expected operational date is early The Project Manager of SunZia, SouthWestern Power Group, LLC (SWPG) is a member of Western Electricity Coordination Council (WECC) and has developed similar projects within the WECC transmission system. The idea for SunZia originated from the Southwest Area Transmission (SWAT) subregional planning group. Over the past few years, SWAT has reviewed the potential for adding additional transfer capability between New Mexico and Arizona, to provide increased reliability, and to facilitate the development and delivery of power from renewable sources such as wind, geothermal and solar. In the summer of 2006, SWAT hosted a workshop (also known as Project Zia) to review possible long-term resource locations and potential delivery paths for the load serving entities in Arizona and New Mexico. From this effort, SunZia was proposed as a new regional electric transmission project between New Mexico and Arizona. The Project, once completed, is envisioned to provide the following benefits: 1) Provides both the New Mexico and Arizona additional access to renewable energy zones where limited transmission access exists 2) Increases diversity of the regional energy resource zones 3) Increases the transfer capability and reliability across the SWAT region 4) Increases the import capability to the Central Arizona Transmission system 5) Makes efficient use of existing available transmission corridors On December 15, 2006, SWPG submitted a notification letter to the WECC Planning Coordination Committee (PCC) and Technical Studies Subcommittee (TSS) formally initiating the regional planning project review process for SunZia. To achieve Phase 1 status in accordance with the WECC Three Phase Path Rating Process, a Regional Planning Compliance Report was submitted to PCC and TSS on May 17, On July 12, 2007, PCC accepted the SunZia regional planning compliance report as complete. In compliance with the WECC Procedure for Project Rating, a Comprehensive Progress Report (CPR) was submitted to WECC on April 22, 2009 and subsequently the Phase 2 status was granted by PCC and TSS on July 27,

4 On August 27, 2009, SWPG formed a combined WECC Peer Review Group (PRG) to proceed and review the Phase 2 Path Rating Study. The study included validation of the plan of service (POS) for non-simultaneous transfer conditions and evaluation of the possible interactions with other WECC major paths. In addition, the assessment of SunZia transmission alternatives and various system variables have been included. The Peer Review Group (PRG) has prepared the final SunZia Accepted Path Rating Phase 2 Study Report (Report) and submitted it on February 22, 2011 to WECC PCC, TSS and OC for a 30-day review. II. Project Description The SunZia Southwest Transmission Project is currently envisioned to be comprised of three segments of two 500 kv (AC) lines each from the proposed renewable resource energy zone(s) in central New Mexico (referred to in this report as SunZia East) to the proposed Pinal Central 500 kv substation to be operated by Salt River Project) in central Arizona. SunZia also is examining two intermediate electrical interconnections; one at a new SunZia South 500 kv substation near the existing Luna 345 kv substation in southwestern NM (operated by El Paso Electric Company (EPE)), and another near the proposed Willow 345 kv Substation (operated by Tucson Electric Power (TEP)) in southeastern AZ. III. Plan of Service A detailed conceptual plan of service for SunZia has been updated and is provided below: Two new 500 kv lines from the proposed SunZia East substation to the proposed SunZia South substation (205 miles each) Two new 500 kv lines from the proposed SunZia South substation to the proposed Willow substation (122 miles each) Two new 500 kv lines from the proposed Willow substation to the proposed Pinal Central substation (134 mile each) New SunZia South 500 kv substation with up to two 500/345 kv transformers (360 MVA each) New Willow 500 kv substation with up to two 500/345 kv transformers (360 MVA each) All new 500 kv lines will have 50% to 70% series compensation 2

5 An integrated mitigation plan involving nomograms, operating procedures and/or an special protection systems (SPS) to relieve system problems Shunt devices to be determined A sensitivity study was included in the Phase 2 study to investigate the feasibility of the following three transmission network changes: (1) Terminating one of the parallel Willow-Pinal Central 500 kv transmission lines into the existing Tortolita 500kV substation (operated by TEP), (2) Reconfiguration of two SunZia East- SunZia South 500 kv lines into Hidalgo substation and (3) Looping the two SunZia South-Willow 500 kv lines into Hidalgo substation. The sensitivity study findings have been included in the WECC Path Rating Phase 2 Study Report. IV. Project s Current Status The SunZia Southwest Transmission Project is continuing to pursue completion of the WECC 3-phase rating process this year. Currently, the Phase 2 Rating Study is complete and the WECC Path Rating Phase 2 Report was submitted to WECC on February 22, SunZia expects to obtain Phase 3 status by April The Project is currently seeking the necessary transmission project corridors and potential alternative routes. In addition, the project management group is also working on the Environmental Impact Statement (EIS) permitting process that is being overseen by the United States Bureau of Land Management (BLM). A Draft Environment Impact Statement is scheduled to be published in the federal register by the BLM by June

6 V. Planned Project In-Service Date The SunZia Southwest Transmission Project is anticipated to be in service by the first part of Figure 1 depicts the SunZia Southwest Transmission Project One-Line Diagram. Figure 1: Conceptual SunZia Southwest Transmission Project 4

7 VI. Arizona and New Mexico EHV System Figure 2, below, provides a geographical and electrical overview of the Extra High Voltage (EHV) transmission system for Arizona and New Mexico. The SunZia Southwest Transmission Project s route is shown as the dashed red line. A R N I O A LIF C Figure 2: Arizona-New Mexico Regional EHV Transmission Map NEVADA Crystal Eldorado Lugo Mead Glen Canyon Flagstaff ARIZONA UTAH Navajo Moenkopi Yavapai Cholla Four Corners Shiprock McKinley San Juan Rio Puerco Preacher Coronado Devers Canyon Westwing Springerville Pinnacle Peak Palo Verde/ Browning Hassyampa Jojoba Silverking Kyrene N. Gila Pinal C Pinal W. Saguaro Greenlee Tortolita Willow Winchester Hidalgo Luna Power Plant South Vail Sunzia S Afton Substation Imperial Valley Mohave 345 kv line 500 kv line SunZia Diablo COLORADO West Mesa Sunzia E Arroyo NEW MEXICO Newman TEXAS 5