1. WESTERN ENERGY INFRASTRUCTURE ASSESSMENT Energy Infrastructure Policy Group Office of Energy Projects Docket No. AD03-10-000 Item A-3 July 23, 2003

2. 2 FERCWESTERN ENERGY INFRASTRUCTURE Western Region Source: RDI PowerMAp

3. 3 FERCWESTERN ENERGY INFRASTRUCTURE 10,710 13,009 55,497 53,881 24,17831,835 57,840 62,739 NWPP (7%) CAMX (13%) RMPA (21%) AZNMNV (32%) 144,214 165,422 Total WECC Capacity (MW) From Jan. 2000 to May 2003, generation capacity in the West has increased 15% with the Southwest (AZNMNV) region leading with 32% growth. Source: RDI PowerDat, May 2003 release and Jan. 2001 release.

4. 4 FERCWESTERN ENERGY INFRASTRUCTURE Additions of generating capacity rose dramatically after 2000 in response to supply shortages; however, additions will drop sharply after 2003 and retirements will increase. Sources: POWERdat May 2003; NewGen May 2003; CAISO CAMX RMPA NWPP AZNMNV ADDITIONS RETIREMENTS

5. 5 FERCWESTERN ENERGY INFRASTRUCTURE The West’s dependency on natural gas for generation capacity has grown steadily over the years, and could replace hydro as the number one fuel source in 2005. 42% 22% 25% 7% 4% 32% 37% 20% 5% 3% 1% Sources: POWERdat May 2003 (Demonstrated Capacity); NewGen May 2003

6. 6 FERCWESTERN ENERGY INFRASTRUCTURE Source: RDI PowerDat 252,689234,179 59,018 60,732 199,999178,381 139,470138,867 NWPP (-7%) CAMX (-11%) RMPA (3%) AZNMNV (1%) Total WECC generation output (GWh) 650,573 612,762 In 2002, net generation in the West decreased 6% from 2000 levels reflecting reduction in demand.

7. 7 FERCWESTERN ENERGY INFRASTRUCTURE Map Slide 7 Public access for the above information is available only through the Public Reference Room, or by e-mail at public.referenceroom@ferc.gov

8. 8 FERCWESTERN ENERGY INFRASTRUCTURE Hydropower exports from the Pacific Northwest to California have declined as energy demand in this region has increased. Source: CEC,NWPPC, U.S. Census Bureau and EIA.

9. 9 FERCWESTERN ENERGY INFRASTRUCTURE Coal-fired generation is 21% (34,240 MW) of total generation capacity in the West. Over 75% of the electricity output from coal generation is from plants in Wyoming, Arizona, Colorado, Utah and New Mexico. Existing generation capacity fuel mix Source: RDI PowerDat

10. 10 FERCWESTERN ENERGY INFRASTRUCTURE Map Slide 10 Public access for the above information is available only through the Public Reference Room, or by e-mail at public.referenceroom@ferc.gov

11. 11 FERCWESTERN ENERGY INFRASTRUCTURE Map Slide 11 Public access for the above information is available only through the Public Reference Room, or by e-mail at public.referenceroom@ferc.gov

12. 12 FERCWESTERN ENERGY INFRASTRUCTURE Map Slide 12 Public access for the above information is available only through the Public Reference Room, or by e-mail at public.referenceroom@ferc.gov

13. 13 FERCWESTERN ENERGY INFRASTRUCTURE Source: EIA’s Natural Gas Annual 2001 with supporting data, and EIA’s Historical Consumption by State Over the past 10 years, the electric generation has been the fastest growing sector in the West and is now the largest gas consuming sector.

14. 14 FERCWESTERN ENERGY INFRASTRUCTURE Map Slide 14 Public access for the above information is available only through the Public Reference Room, or by e-mail at public.referenceroom@ferc.gov

15. 15 FERCWESTERN ENERGY INFRASTRUCTURE The West is dependent on production from gas originating mainly in the Rockies, Southwest and Canada. United States West % of United States Total Gas Consumption 20.5 Tcf4.1 Tcf20% Total Dry Gas Production 19.7 Tcf4.3 Tcf 22% Total Proved Gas Reserves 183.5 Tcf57.0 Tcf31% Total Storage Capacity 8.4 Tcf1.3 Tcf15% Total Net Imports from Canada 3.6 Tcf1.2 Tcf33% Total Net Exports to Mexico 0.13 Tcf0.03 Tcf23% Western Gas Facts - 2001 Source: EIA’s Natural Gas Annual 2001 and US Crude Oil, Natural Gas, and Natural Gas Liquid Reserves 2001 Annual Report

16. 16 FERCWESTERN ENERGY INFRASTRUCTURE Map Slide 16 Public access for the above information is available only through the Public Reference Room, or by e-mail at public.referenceroom@ferc.gov

17. 17 FERCWESTERN ENERGY INFRASTRUCTURE Pending and anticipated pipeline projects will create new capacity to serve electric generation loads and to deliver gas from producing areas. Twenty-eight projects were certificated since 2001, adding 6,481 MMcf/d of new capacity to the Western States. Fifteen of these projects added 3.4 Bcf/d of new capacity from the Rocky Mountain region. Ten of these projects added 2.8 Bcf/d of new capacity from Wyoming. Five pending projects have a projected capacity of 819 MMcf/d. Approximately 560 MMcf/d represents the Cheyenne Plains Project which will impact deliveries out of the Rockies and Wyoming. Thirteen planned projects have a potential capacity of 7.2 Bcf/d. Nine of these projects have a potential capacity of 4.2 Bcf/d to move Rockies gas.

18. 18 FERCWESTERN ENERGY INFRASTRUCTURE Map Slide 18 Public access for the above information is available only through the Public Reference Room, or by e-mail at public.referenceroom@ferc.gov

19. 19 FERCWESTERN ENERGY INFRASTRUCTURE Conclusions