Nebraska Wind Conference Wednesday, November 16, 2011 OPPD or NPPD or LES slide

Overview Nebraska – Only public power state Nebraska & Southwest Power Pool (SPP) Nebraska Transmission Advocacy Group (NTAG) NTAG Transmission Expansion Plan OPPD or NPPD or LES slide

“The Only State” Nebraska is a totally public power state Authority to set rates resides with the utility/municipality governing body No state legislation mandating renewable generation NPPD and OPPD Boards have established goals of 10% renewable generation by 2020 Nebraska passed legislation in 2010 to encourage private developers to: Develop, own and operate renewable energy facilities for export to other states Requires utilities to work with the developer on a joint transmission development agreement Provides a process for the developer to seek regulatory approval from the Nebraska Power Review Board OPPD or NPPD or LES slide

Nebraska & Southwest Power Pool Nebraska’s largest utilities (LES, NPPD & OPPD) joined SPP in 2009 SPP RTO has members in 9 states and provides for: Reliability Coordination Market Operations Tariff Administration Transmission Expansion OPPD or NPPD or LES introduces SPP speaker

SPP Integrated Transmission Planning (ITP) Process ITP goals: Integrating reliability, economic & public policy inputs to create a regional transmission expansion plan Develop plans that are robust, flexible, and cost-effective Three phases of the iterative process: ITP20 – 20 Year Plan (visionary) ITP10 – 10 Year Plan (detail) Near-term – Conducted yearly (closer to action) SPP slide

SPP Notices to Construct (NTC) SPP slide As of 2010, SPP Board has issued NTCs to direct Transmission Owners to begin construction of these projects.

SPP ITP20 Year Plan SPP slide

Nebraska Transmission Advocacy Group (NTAG) A volunteer advocacy group created to proactively communicate Nebraska’s unified message regarding long range transmission expansion to the Southwest Power Pool (SPP) Led by Nebraska Transmission Owners who serve as technical advisors Includes representation from NE Utilities, NE State government, Wind Energy Coalition & NE land owners Nebraska Power Association (NPA) Board approved formation of NTAG OPPD or NPPD or LES slide

Nebraska Conceptual Overlay At direction from NTAG, Transmission Planners from the Nebraska Sub-regional Planning Group developed a conceptual overlay to submit to the SPP for the 10-year plan (ITP10) Participants OPPD, NPPD, LES, MEAN, Tri-State, Grand Island & Hastings Utilities Developed two alternatives for consideration “r-Plan” “T-Plan” OPPD or NPPD or LES slide

OPPD or NPPD or LES slide

NTAG EHV Overlay – “r-Plan” Cherry Co. Holt Co. Hoskins S3451 S3454 GGS S3740 OPPD or NPPD or LES slide The combination of the Balanced Portfolio, the Priority Projects, and the suggested NTAG “r-Plan” will address all six existing NE Flowgates

The western leg from Cherry County to Stegall (substation) will be a subject of discussion at a later time for the next 20-year plan (ITP20) to be drafted in 2013. OPPD or NPPD or LES slide

Benefits of NTAG ‘r’ Plan Reduces transmission congestion Enhance and improve reliability and robustness of the bulk transmission system in the region Facilitate tapping into Nebraska’s abundant wind generation OPPD or NPPD or LES slide When complete introduce Andy Pollock

Megawatt Potential for Wind Andy Pollock Slide

Megawatt Potential for Wind Andy Pollock Slide

345 kV Transmission Opportunities Energy potential from wind resource by state Ranking State 1 Texas 2 Kansas 3 Nebraska Installed capacity by state (through 2010) Ranking State 1 Texas 2 Iowa 3 California 25 Nebraska Andy Pollock Slide

Nebraska’s Wind Cherry County Andy Pollock to call on Wind Developers Purple represents areas of Nebraska with gross capacity factors >50% Source: WindLogics 2011

Andy Pollock to call on John Hansen

Summary NTAG formed to promote unified message to SPP on NE transmission expansion NTAG ‘r’ Plan will: Enhance reliability Improve congestion Facilitate wind energy SPP analyzing ‘r’ Plan in current ITP process OPPD or NPPD or LES slide

Questions? OPPD or NPPD or LES slide