BPA Pacific DC Intertie (PDCI) Upgrade Project WECC Path Rating Process PDCI 3220 MW North to South Phase 1 Kick-off Meeting October 23, 2014 1:00-4:00

PDCI/Celilo History 1970 Commercial service at ±400kV and1440MW 1977 Thermal rerate to 1600MW 1984 Voltage Upgrade to ±500kV and 2000MW 1987 Expansion Project added parallel 1100MW converters increasing PDCI to 3100MW 2002-2004 Original mercury arc valves replaced with solid state valves 2004 Sylmar Replacement Project

PDCI/Celilo History 1970 Commercial service at ±400kV and1440MW 1977 Thermal rerate to 1600MW 1984 Voltage Upgrade to ±500kV and 2000MW 1987 Expansion Project added parallel 1100MW converters increasing PDCI to 3100MW 2002-2004 Original mercury arc valves replaced with solid state valves 2004 Sylmar Replacement Project

PDCI/Celilo History 1970 Commercial service at ±400kV and1440MW 1977 Thermal rerate to 1600MW 1984 Voltage Upgrade to ±500kV and 2000MW 1987 Expansion Project added parallel 1100MW converters increasing PDCI to 3100MW 2002-2004 Original mercury arc valves replaced with solid state valves 2004 Sylmar Replacement Project

PDCI/Celilo History 1970 Commercial service at ±400kV and1440MW 1977 Thermal rerate to 1600MW 1984 Voltage Upgrade to ±500kV and 2000MW 1987 Expansion Project added parallel 1100MW converter increasing PDCI to 3100MW 2002-2004 Original mercury arc valves replaced with solid state valves 2004 Sylmar Replacement Project

PDCI/Celilo History 1970 Commercial service at ±400kV and1440MW 1977 Thermal rerate to 1600MW 1984 Voltage Upgrade to ±500kV and 2000MW 1987 Expansion Project added parallel 1100MW converters increasing PDCI to 3100MW 2002-2004 Original mercury arc valves replaced with solid state valves 2004 Sylmar Replacement Project

Present Condition Aging control systems becoming unmaintainable and degrading reliability. Original GE transformers over 44 years old and gassing. BBC Expansion transformer and smoothing reactor design defect. Siemens valve grading electrode problem. Celilo-NOB DC transmission line vibration dampers and compression fittings nearing end of life.

Upgrade 3220MW Replace Celilo 4 converter terminal with new 2 converter terminal rated ±560kV and 3410A and upgrade Celilo-NOB line insulators. Initial upgrade to 3220MW with opportunity to increase PDCI to 3800MW N-S. Reduce O&M costs by 30%. One manufacturer technology and less equipment improves reliability, availability and maintainability. Simpler configuration facilitates remote operation, dynamic scheduling and capacity tags.

PDCI Upgrade Stages North to South Flows Only Average Line Resistance = 20 Ω

Upgrade 3220MW ABB awarded $258M Celilo Upgrade contract December 20, 2012. ABB mobilized on site last week and demolition work underway. BPA yard expansion, control room remodel and seismic upgrade complete. Line insulator replacement and compression splice shunt project underway.

Upgrade 3220MW Converter 3 and 4 stand alone reconfiguration complete early November. PDCI curtailment to 2000MW November 2014 to November 2015 for Celilo construction and 0MW November 1 to December 21 for testing and commissioning. Celilo Upgrade completion scheduled for December 21, 2015.

Upgrade 3220MW Completion of BPA line upgrade work may delay operating at 3220 MW up to 2 years. Depends on outage availability. Converters 3 and 4 cold standby January 2016. Retire and salvage in 2017.

Pacific DC Intertie – One-Line Diagram 2014

Pacific DC Intertie – One-Line Diagram 2016

Celilo – NOB Transmission Line Upgrade Schedule Electrical Work Completed to Date: 33% of the Dead End Towers and 44% of the Suspension Towers have had hardware replaced. This includes replacement or installation of insulators and shunts. Electrical Work Left To Complete: Hardware replacements on 66% of the Dead End Towers. Hardware replacements on 56% of the Suspension Towers. Two miles of conductor replacement. Schedule: On track to complete the line upgrade in the fall of 2016. An analysis will be performed on what it would take to complete the line upgrade in the fall of 2015 based on recent work performance and lessons learned.

WECC Project Coordination Review ColumbiaGrid sponsored review process Notice to WECC 2/6/13 PCRG meetings 4/2/13 Project background 6/5/13 Draft report review 7/9/13 Final report approval Project Coordination Process completion notice from WECC PCC chair 9/5/13

Project Coordination Process Objectives Summary and Review Project Coordination Process Objectives Completed

1. Undertake Integrated Project Evaluation   “Take multiple project needs and plans into account, including identified utilities’ and non-utilities’ future needs, environmental and other stakeholder interests. The findings of the TEPPC, SPG, or other analyses reports may be used to satisfy these requirements; Identify transmission physical and operational constraints resulting from the project or that are removed by the project; Look beyond specific end points of the sponsors’ project to identify broader regional and sub-regional needs or opportunities;”

2. Conduct Coordination and Outreach   “Cooperate with Project Coordination Review Group members in determining the benefits and impacts due to the project; Coordinate project plans with and seek input from all interested members, TEPPC, Sub-regional Planning Groups, power pools, and region-wide planning group(s); and other stakeholders including utilities, independent power producers, environmental and land use groups, and regulators;”

3. Describe Generation Resources and Related Policy Initiatives   “Review how the project improves efficient use of, or impacts existing and planned resources of the region Address impacts of project for transmission congestion mitigation, Describe how the project addresses specific energy policy initiatives;”

Consider Reasonable Alternatives to the Project   “Review the possibility of using the existing system, upgrades or reasonable alternatives to the project to meet the need (including non‐transmission alternatives where appropriate);  Address the efficient use of transmission corridors, take rights‐of‐ways, new projects, optimal line voltage, upgrades, etc. into account; Specify how the evaluation of the project has taken into account costs and benefits of the project compared with reasonable alternatives; Describe potentially parallel or competing projects and consolidate projects where practicable.”

Project Coordination Process Objectives Summary and Review Project Coordination Process Objectives Completed Questions?

WECC Path Rating Process Summary Project Coordination Process (completed – September 5, 2013) Phase 1 (Present Status of the PDCI Upgrade Rating) Non-simultaneous Studies BPA has requested participation of WECC members in Phase 1 A participation request for the Phase 2 Project Review Group (PRG) will be sent with the Phase 1 Comprehensive report. A full representation of the Project is provided to WECC for base cases. Distribute the Phase 1 Comprehensive Progress Report to TSS and PCC (60 days to comment). With no objections, acceptance of the report is granted and the Project moves to Phase 2A.

WECC Path Rating Process Summary Phase 2A WECC Project Review Group (PRG) is formed Rating Study Plan is approved by the PRG (Typically, once formed, the PRG will develop and agree to a study plan within 60 days) A Foundational Base Case(s) is approved by the PRG (Typically, the case is completed in about 3 months) The PRG approves the Study Plan and Foundational Base Case(s) to cross the “Bright Line” and move the Project to Phase 2B. Send notification to the TSS chair and WECC staff within 5 working days after the “Bright Line” date is established by the PRG.

WECC Path Rating Process Summary Phase 2B Confirm the Non-Simultaneous Transfer Capability Complete the technical studies defined in the approved Study Plan (simultaneous studies) Produce a detailed technical report that reflects the findings with an executive summary highlighting: Assumptions: load levels, resources, other projects Plan of Service – with milestones Determination that the Plan meets NERC Reliability Standards and WECC Criteria If needed, corrective actions or mitigation plans required to achieve the Accepted Rating

WECC Path Rating Process Summary Phase 2B Continued After submitting the Phase 2 Rating Report to the PRG a 30 day period for comments is provided The sponsor will work with the PRG to resolve all concerns and comments After addressing the PRG’s comments the sponsor will distribute the Phase 2 Rating Report to the PCC, TSS, and OC requesting Phase 3 status

WECC Path Rating Process Summary Phase 2B Continued PCC members will be provided 30 days to comment on Rating Report’s conformance with the procedures The sponsor will work with the PCC to resolve all concerns and comments received during the PCC comment period. The PCC chair, determining the requirements have been meet, will notify the PCC, TSS, and OC members the Project has entered Phase 3

Path Rating Process Summary Phase 3 Construction of the Plan of Service (underway) Monitoring and Progress Reports After construction, testing, and commissioning the project is placed into operation and the Project is a fully-accepted part of the system with the Accepted Rating

DRAFT PDCI WECC Path Rating Study Schedule

Study Phases 1, 2A, and 2B

Next Steps – Phase 1 Studies Task Date Notes Share the Summer 2018 Study Case (PW and PSLF) October 29, 2014 COI/PDCI simultaneous flow (4800/3220) Participants’ Review of the Case November 28, 2014 BPA would like to incorporate all the input by November 28, 2014 Contingency List: -Northwest AC (BPA) -Sylmar Area AC (LADWP) -PDCI (BPA) Steady State Studies in PW Transient Stability Studies in PSLF Supporting Study Files: -Tools Setup/Settings (BPA) -One-lines (BPA) -Process routines (BPA) BPA would like to be ready to runs the studies by November 28, 2014

Participants’ Questions and Discussion