WELCOME PUC Rule 3627 Stakeholder Participation

Who we are: Xcel Energy Staff Introductions Public Service Company of Colorado

Why you’ve been invited here today: ► PUC Rule 3627 – 10 year transmission planning outreach ► Provide an overview of transmission planning ► Review long-range plans ► Gather “alternative solutions” to proposed plans for further study and evaluation ► Address alternative solutions in next 10-year plan ► Every two years

CPUC Rule 3627 ► Recently adopted by the Colorado Public Utilities Commission ► Provide government agencies and other stakeholders with opportunities for “meaningful participation” ► Provide summary of stakeholder participation and input in the plan ► Provide participating stakeholders with filings related to the rule

Today’s presentation ► Introduction and overview ► Transmission planning basics ► Overview of the planning process ► 10-year plans ► High-level review of plans ► More specific review of the plans for this region ► Questions/feedback

Stakeholder Outreach ► Stakeholder identification ► Define participation process ► Engagement tactics ► Workshops ► Online ► Notification ► Inclusion of input

Type of information we are seeking ► Alternative Solutions ► Termination points ► Environmental and societal concerns ► Plans that may impact electric load projections ► Planned renewable energy facilities ► Significant expansion or contraction plans for large energy users

PSCo System Statistics 2010 ► 4360 Miles of Transmission ► 223 Substations Served ► 25 Generators Served ► 9 Wind Generators (1258 MW) ► 2 Photovoltaic Solar (25 MW) ► PSCo Operating Company Peak Load 6510 MW (Actual) 7/14/2010 ► Historical Peak Operating Company Load 6927MW (Actual) 7/21/2005

Transmission Planning Basics Stakeholder Participation

How it works Power is generated and transmitted over transmission lines to distribution lines to customers. Voltage is reduced at substations and electricity is delivered to customers

Transmission Lines – 345 kV

Distribution Lines

Drivers Transmission Planning Future Resource Scenarios Core Reliability Engineering Network/ Electric System Coordination Economics Statutory, Regulatory and Compliance Environment and Cultural Factors Stakeholder Participation Resource Planning Siting Policy Considerations

Planning Principles ► Focus on customer and affordability ► Ensure alignment with policy makers ► Ensure cost recovery support from regulators ► Coordinate with subregional utilities ► Actively participate in regional plan development ► Coordinate with subregional(CCPG) and regional (WestConnect, WECC) planning groups

Transmission Coordination

Transmission Ownership Colorado

Economic Planning ► Various resource scenario evaluation ► Economic evaluation of alternatives ► SPSG (Scenario Planning Steering Group) WECC ► TEPPC (Transmission Expansion Planning Policy Committee) WECC ► Economic benefits, coupled with other benefits (reliability, local or regional policy, etc.) enter into transmission alternative evaluation

Balancing Act Transmission planning is the art of identifying future transmission infrastructure for delivery from forecasted resources to forecasted load centers without violating mandatory compliance standards.

Transmission Planning Process

Why Plan? Planning 1 to 2 years Development 3 to 5 years Construction 2 to 3 years Timeframe takes 7 to 10 years to plan, develop and construct

Transmission Participants in Colorado Coordinated Planning Group (CCPG)

Transmission Planning Drivers ► Core ► Load forecast (April 2010) ► Transmission service studies ► Wholesale/retail load and generation interconnections ► NERC reliability compliance and planning criteria ► Sub Regional ► FERC Generation Interconnection Studies* –8,932 MW, 45 Requests, Wind (24), Solar (19), Combined Cycle (2) ► State and national energy policy ► State renewable portfolio standards ► 2007 Colorado resource plan -bid solicitation -(PSCo) ► SB -100 transmission plans to energy resource zones (Biennial plan filed Oct and Oct. 2009) ► 10-Year Colorado long range planning group (CCPG) studies (Jan. 2009) ► 10-Year WestConnect Annual Plan ► Regional ► National and State energy policies advocating reduced carbon emissions, renewable energy portfolios, reliability and operation criteria inherent to intermittent renewable sources

Senate Bill ► Upon recommendations by the 2006 Transmission Task Force on Reliable Electricity Infrastructure, the 66th General Assembly passed Senate Bill ► Under SB , PSCo must meet the following requirements: ► Designate “Energy Resource Zones (ERZ)” ► Develop plans for the construction or expansion of transmission facilities necessary to deliver electric power consistent with the timing of the development of beneficial energy resources located in or near such zones ► Consider how transmission can be provided to encourage local ownership of renewable energy facilities ► Submit proposed plans, designations, and applications for certificates of public convenience and necessity to the commission for simultaneous review

Long-Range Planning Projects ► More than 40 projects for PSCo 10-year plan ► Available on our webpage ► Hardcopy to view here at the workshop ► WestConnect website ► Today’s focus is on specific projects for this region ► Does not include distribution projects or normal course of business projects

Regional Planning Areas

Parachute to Cameo – Region III ► Cost (estimated): $52 million ► In-service date (planned) TBD ► Purpose: Reliability ► Location: Garfield and Mesa counties ► Infrastructure: 31- mile transmission line between Parachute Substation and Cameo Substation

Rifle to Parachute – Region III ► Cost (estimated): $27 million ► In-service date (planned): 2015 ► Purpose: Reliability ► Location: Garfield County ► Infrastructure: 21- mile transmission line from Rifle Substation to Parachute Substation

Rifle to Story Gulch – Region II ► Cost (estimated): $27.4 million ► In-service date (planned): TBD ► Purpose: Reliability – serve new customer load in Piceance Basin ► Location: Garfield and Rio Blanco counties ► Infrastructure: Substation and 25- mile transmission line from Story Gulch Substation to Rifle (Ute) Substation

PSCo Transmission System ► PSCo transmission assets located entirely in CO and within the Western Electric Coordinating Council (WECC) ► Major Utility Interconnections ► Western Area Power Administration, Tri-State Generation & Transmission, Colorado Springs Utilities, Platte River Power Authority, Black Hills Energy -Colorado, Public Service New Mexico, Southwest Public Service, Arkansas River Power Authority ► Major Wholesale Customers ► Intermountain REA, Black Hills Energy -Colorado, Holy Cross Energy, Yampa Valley REA and Grand Valley Electric, Town of Center, City of Burlington

Discussion/Feedback/Questions

PSCo PUC Rule 3627 Information ► On the Xcel Energy website at: ► ► WestConnect website for all regional projects: ► ► questions and comments to: ►

Survey – Stakeholder Input ► Open house displays and maps ► Survey ► Laptops ► Printed copy

Betty Mirzayi Xcel Energy (303)