Transmission Corridor Zone Designation Process Terrence O'Brien, CEC December 11, 2007 Energy Action Plan

2 9/18/06 What is it? A 12-month process to designate transmission corridor zones for future use as proposed by an investor-owned or municipal utility, a merchant, or by the Energy Commission on its own motion. Designated transmission corridor zones are to be reviewed and revised, as necessary, by the Energy Commission at least every 10 years. 12/11/2007

3 9/18/06 What are the purposes of the designation process? Designate and preserve corridor zones to meet long-term high- voltage transmission infrastructure needs. Facilitate development of renewable generation. Improve reliability of transmission system. Streamline permitting and increase the certainty of permitting outcomes. Provide a link between long-term transmission planning and permitting. Involve local, state and federal governments, generators, other stakeholders, and the public in planning for transmission corridor zones. Promote consistency of land use changes with future transmission line development. 12/11/2007

4 9/18/06 What are the components of the designation process? Determination of consistency of proposed transmission corridor with latest Strategic Transmission Investment Plan (Strategic Plan) adopted by the Energy Commission. Preparation of Environmental Impact Report to serve as the basis for designation of the transmission corridor zone.  Evaluates alternative corridors and “non-wires” alternatives.  Evaluates constraints and impacts, mitigation measures, and avoidance opportunities.  Tiered environmental review for streamlined transmission line permitting. 12/11/2007

5 9/18/06 Where are we? The Energy Commission adopted implementing regulations on 12/5/07. The CEC and CPUC staff met on 12/7/07 to discuss implementation of the TCD process. CEC staff has suggested that an MOU between the CEC and CPUC may be useful, further discussions are planned.

6 9/18/ Strategic Plan Recommendations Allow investor-owned utilities to keep transmission corridor zone investments in their rate base for the duration of the corridor zone’s designation. When evaluating future transmission projects within a designated corridor, the CPUC and other permitting agencies should use the CEC’s transmission corridor need determination to facilitate and expedite the need determination for the specific transmission “poles and wires” proposed to be sited in an approved corridor. The CAISO should consider designated corridor zones in its transmission planning process. Encourage SB 1059 applications for three categories of corridors on non-federal lands:  Corridors that would provide access to renewable resource areas.  Corridors that would interconnect with existing or proposed federal corridors.  Existing corridors that may be required for future facility upgrades. Seek agreement among interested parties with similar transmission needs during development of the Strategic Plan before accepting a corridor designation application. Explore options for earlier consideration of “non-wires” alternatives in statewide planning processes. 12/11/2007