B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Bonneville Power Administration - Pumped Storage Evaluation Northwest Hydroelectric Association Meeting Feb 24, 2011 Reclamation’s John W. Keys III Pump Generating Plant at Grand Coulee Slide 1 Lake Roosevelt Pipe to the Feeder Canal and Banks Lake Pump-Generating Plant

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Slide 2 Utility Balancing Authority Installed Wind (A) Peak Load (B) Wind Penetration (A/B) PacifiCorp East8605,689 15% PacifiCorp West2503,555 7% PNM2002,5008% Northwestern Energy 1501,724 8% CAISO2,80049,071 6% ERCOT5,80062,400 9% BPA 20092,600 10,50025% BPA 20103,37910,50032% Wind Power is Growing Fast !!!

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Energy Storage for Support of Wind Integration  “I want to assure you the Administration places a priority on improving the Nation's capabilities to integrate renewable resources into its electricity supply. I support the full exploration of pumped storage potential in the context of providing necessary intermittent renewable integration services. Pumped storage has unique potential in the Pacific Northwest where a higher percentage of wind generation has already been integrated into the region's transmission system than anywhere else in the Nation.” ─ U.S. Energy Secretary Steven Chu, in a letter to the Governors of Oregon, Washington, Idaho, and Montana; July 10, 2009  The Northwest Power and Conservation Council draft 6th Power Plan points out that pumped storage is one of the few storage concepts with “bulk” storage potential.  BPA’s draft Resource Program considers that pumped storage could provide BPA with a unique opportunity to return flexibility to the Federal hydro system. Slide 3

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Wind Generation in the Last Week Slide 4

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Slide 5 “Accurate Scheduling Model” Actual accumulated generation imbalance

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Pumped Storage Evaluation – Overall Plan Slide 6 Summer-Fall 2009Fall Present

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N HDR/DTA Report Slide 7 Hydroelectric Pumped Storage for Enabling Variable Energy Resources within the Federal Columbia River Power System Recommendations and Suggested Next Steps: ─ Model Development - Develop Tools to more accurately assess the capabilities of pumped storage to enable the integration of higher levels of variable generation in the FCRPS. ─ Keys Pump-Generating Plant - Pursue Equipment Modernization and Upgrades ─ Greenfield Project – Continue evaluation of a greenfield pumped storage project ─ Regional/National Communication – Pursue regional collaborative evaluation of a greenfield pumped storage project Pumped storage has significant potential in the Pacific Northwest… Keys Pump-Generating Plant is underutilized and with modernization and potential upgrades can be a near term resource for wind integration. Grid scale energy storage would be a valuable asset for long term expected levels of wind in the future.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Slide 8 Bureau of Reclamation Technical Service Center John W. Keys III Pump Generating Plant, Columbia Basin Project Special Report October 2009 Appraisal Level Technical Evaluation for Modernization of John W. Keys III Pump Generating Plant, Columbia Basin Project Phase II Planning Study February 2011 Funding Agreement for Evaluation of Keys Pump-Generating Plant Modernization signed by BPA and Reclamation on June 15, 2010

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N John W. Keys III Pump Generating Plant Original installation in 1951 six 50 MW pumping units Upgrade in 1973 two 50 MW pump/generators installed Upgrade in four 53.5 MW pump/ generators installed Current Capacity Pumping – 12 Units 614 MW Generating – 6 Units 314 MW Slide 9

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Keys Pump-Generating Plant Assessment USBR Technical Service Center and HDR Recommendations Under Evaluation: ─ Modernization Excitation Governors Breakers Unit Controls and Protection PG Phase Reversal Switches Pump Motor Disconnect Switches PG7 & 8 Wicket Gate Operating Mechanism Improvements Main Step-up Transformer & Transformer Disconnect Switches Station Service Upgrades Miscellaneous Balance-of-Plant refurbishment Estimated Cost $85-$145M ─ Upgrade of Pump-Generator Units 7-12 Preference is to increase the operating head range of the PG units Secondary goal is to increase Capacity (a 20% increase would result in pumping capacity – 660MW, generating capacity – 360MW) Estimated Cost $80-$140M Slide 10

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N HDR/DTA Report – Greenfield Pumped Storage Examples Project Feature/CharacteristicProject X1Project X2 Upper Reservoir New off-channel reservoir Storage Volume (ac-ft)15,0003,000,000 Active Surface Area (acre)28211,750 Dam Height (ft.) Max. Water Surface Elev. (msl)2,4362,159 Lower Reservoir New off-channel reservoirExisting reservoir Active Storage Volume (ac. ft.)15,0003,000,000+ Surface Area (acres)20980,000 Max. Water Surface Elev. (msl)6241,290 Approx. Net Head (ft.)1, Conveyance Length (ft.)4,80014,800 Plant Capacity (MW) 1,0501,136 Units Sizes/Number250/4282/4 Est. Annual Generation (GWh)1,5601,760 Est. Annual Pumping (GWh) 1,9502,200 Transmission Line Length (mi.) Est. Capital Cost (Million $, 2010)2,7338,162 Cost per Installed MW (Million $) Slide 11

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Other Potential Solutions for Integrating Wind Slide 12  Transmission additions to reach/blend diverse wind projects  Generators self supply balancing reserves  Continued scheduling improvements  Explore virtual Balancing Area consolidation  Enhanced storage capability: ─ Batteries ─ Pumped storage ─ Compressed air ─ Flywheels ─ Plug-in electric vehicles  Conservation  Demand response  Smart Grid applications  Purchase balancing reserves from a third party

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Slide 13 Wayne Todd Bonneville Power Administration