1 FERC st Quarter Stakeholder Meeting for Transmission Planning Denver, CO March 6, :30 a.m. – 11:30 a.m.

2 WELCOME

3 PSCo Planning Process

4 Planning Process A. Calendar B. Methodology / Criterion C. Reporting D. Regulatory Interaction A. Colorado Rule 3206 B. CPCN’s with Colorado PUC

5 Planning Calendar 2009 MayJunJanFebMarAprAugSepJulOctNov 5 year capital budget studies CCPG Long Range Dec SB100 Studies CCPG 4/23/09 CCPG 8/19/09- 8/20/09 CCPG 12/16/09 FERC 890 3/6/09 FERC /10/09 Resource Plan 5 year budget approved SB100, CPCN Filing WestConnect SB100 Biannual Filing WestConnect Annual Meeting 1/14/09 WestConnect Annual Stakeholder Meeting 8/20/09 Generation Interconnect, Load Interconnect & Transmission Service Studies 10 year plan completed

6 Transmission Map

7 Planning Study Process  Prepare Study Models  Utilize PSCo Base Case Preparation Process  Determine Appropriate WECC Base Cases as basis for Study  Verify Study Years, System Conditions, Demand Levels are appropriate Model projected transfers  Model appropriate regional loading  Include existing and planned facilities  Include Reactive Power resources as appropriate  Studies  Include effects of existing and planned protective systems as appropriate  Include effects of existing and planned control devices including load tap changers, switched shunt devices, and generation control as appropriate  Include planned or maintenance outages of equipment  Methodology  Assess performance to meet TPL-001 (N-1) and TPL-002 (N-1) requirements  Assess performance to meet TPL-003 (N-2) and TPL-004 (exploratory) as appropriate  Develop Recommendations for System Upgrades

8 Methodology  Analyses  Powerflow (Static)  Dynamic (Transient and Voltage Stability)  Software  GE PSLF  Siemens/PTI PSS/E  Conditions  System Intact (N-0)  Single Contingencies (N-1) of All Regional Elements  Select N-2 Contingencies  Loading  Recent Load Forecasts  Generally Peak Summer  Sensitivities with Peak Winter and Lighter Loading

9 Methodology - Criteria  NERC Standards  Table 1  TPL-001, 002, 003, 004  TPL – (001 thru 004) – WECC – 1 – CR ─ System Performance Criteria  (Formerly NERC/WECC Criteria)  WECC Disturbance-Performance Table of Allowable Effects on Other Systems  Other

10 Reporting – Annual 2009 Self Certification FormsNERC/WECCJanuary Colorado Long Range Planning Group (10 year plan) CCPGJanuary Study Program SurveyWECCFebruary Annual Progress ReportWECCMarch 1 FERC 715WECC/FERCMarch 10 State of the Interconnected SystemWECCApril Rule 3206CPUCApril 30 Voltage Stability SummaryWECCDecember CCPG (Voltage Coordination guidelines)CCPGDecember

11 Reporting - Postings  Tariff Studies   FERC 890 Information   SB   High Plains Express   WestConnect  

12 FERC 890 Attachment R Update

Filing  Responded October 15, 2008  Full Filing: Order890-Comp-Filing-Revision1.pdf Order890-Comp-Filing-Revision1.pdf  Other Information on OASIS:  under FERC  Including:  Contacts:  pdf pdf  Hyperlink List:  pdf pdf  Attachment R (K) only:   Meeting Notices and Materials

14 PSCo studies

15 Transmission Planning Studies A. Near Term (Capital Budget) Studies B. Tariff Studies C. Senate Bill D. High Plains Express E. 10-Year Plan

16 Annual Capital Budget Assessment  Conducted annually  Project recommendations developed from transmission reliability studies.  Generally divided into regions:  Denver/Boulder  Foothills  Western Colorado  Front Range (I-25 Corridor)

17 Planned Project Status ( 5 year plan) A. Comanche - Daniels Park 345 kV Transmission Project B. Chambers 230/115 kV Transmission intertie Project C. Sandown - Leetsdale 115 kV Project D. Midway - Waterton 345 kV Transmission Project E. Niwot / Gunbarrel 230 kV Underground Line

18 Comanche - Daniels Park 345 kV Transmission Project SponsorPSCo Description125 miles of double-circuit 345 kV transmission line from the Comanche Substation, near Pueblo, CO, to the Daniels Park Substation, south of Denver, CO. PurposeAccommodate 750 MW of generation at the Comanche Station Schedule2009

19 Comanche - Daniels Park 345 kV Project

20 Chambers 230/115 kV Transmission Intertie Project SponsorPSCo DescriptionA new Chambers Substation consisting of a 230/115 kV transformer. Four miles of new 230 kV double-circuit overhead transmission line interconnecting Tower, Chambers and Picadilly. One mile of 115 kV transmission line interconnecting Havana, Chambers and Fitzsimmons PurposeAccommodates new generation added to the northeast Colorado area in the recent years. Links the outer 230 kV transmission belt in the northeast metro vicinity to the 115 network Schedule2010

21 Chambers 230/115 kV Transmission Intertie Project 4 miles of doubel-circuit 230 kV Transmission connecting Tower, Chambers and Picadilly 1 mile 115 kV Transmission line Connecting Havana, Chambers and Fitzsimmons Chambers 230/115kV Transmission Intertie Project: A new Chambers substation, 230/115 kV transformation interconnecting the outer 230 Transmission kV to the 115 kV network

22 Sandown - Leetsdale 115 kV Transmission Project SponsorPSCo Description5 miles of new 115 kV transmission between the existing Sandown and Leetsdale substations in Denver, CO PurposeProvides additional transmission to alleviate loading on the Denver-metro area transmission Schedule2009

23 Sandown - Leetsdale 115 kV Transmission Project

24 Midway - Waterton 345 kV Transmission Project SponsorPSCo Description82 miles of 345 kV transmission line between the Midway Substation, near Colorado Springs and the Waterton Substation, southwest of the Denver metro area PurposeProposed in accordance with Senate Bill to facilitate potential generation resources in Energy Resource Zones 3, 4 and 5. Alleviates potential overloads on the Colorado Springs Utilities network Schedule2011

25 Midway - Waterton 345 kV Transmission Project Comanche – Daniels Park 345 kV Project: Operated at 345 kV. Midway Comanche Generation Boone To Tarryall Daniels Park 230 kV 345 kV Waterton Marcy Fuller Midway – Waterton 345 kV Project: Operate eastern circuit of double-circuit transmission at 345 kV. Western circuit remains operated at 230 kV. Midway – Waterton 345 kV Project: Add 345/230 kV autotransformer at Midway Midway – Waterton 345 kV Project: Rebuild existing 230 kV line to double-circuit 345 kV-capable transmission between Daniels Park and Waterton. South circuit operates at 345 kV. North circuit operates at 230 kV. Midway – Waterton 345 kV Project: Add 345/230 kV autotransformer and replace both 230/115 kV autotransformers at Waterton Generation Substation

26 Niwot / Gunbarrel 230 kV Underground Line SponsorPSCo DescriptionConstruct 2.3 miles of 230 kV Underground transmission line between the Niwot and Gunbarrel Substations. Install a new 230/13.8 kV transformer at Gunbarrel Substation PurposeProvide an additional delivery point for IBM load Schedule2011

27 Niwot/Gunbarrel 230 kV Underground Line 230/13.8 kV Gunbarrel Niwot Leggett 230 kV Isabelle 230 kV 230/13.8 kV Niwot/Gunbarrel 230kV Underground Line Project: New 2.3 miles of 230kV Line from Gunbarrel to Niwot New 230kV Undergroun Line New 230/13.8kV Transformer 230 kV Bus 13.8 kV Bus 230 kV Bus Existing system Existing 230 kV Underground Line

28 FERC Generation Interconnection Process

29 Generation Interconnection Process FERC Orders 2003 and 2006  Order 2003 for Large Generators  Greater than 20MW  Large Generator Interconnection Process (LGIP)  Large Generator Interconnection Agent (LGIA)  Applies to all generation technologies  Order 2006 for Small Generators  Less than or equal to 20MW  Small Generator Interconnection Process (SGIP)  Small Generator Interconnection Agent (SGIA)  Applies to all generation technologies

30 LGI Process  Feasibility Study  $10,000 deposit  Preliminary determination of interconnection and delivery facilities  Study Cost based on actual costs  Feasibility schedule: 6-9 months  System Impact Study  $50,000 deposit  Proof of Site Control required  Transient stability of system is studied  Study Cost based on actual costs  SIS schedule: 9-12 months  Facilities Study  $100,000 deposit  Detailed engineering design and cost estimates  Study cost based on actual costs  Facilities Schedule: 2-4 months  Study results become the basis for the LGIA

31 Generation Interconnection Process PSCo Interconnection Queue Total Requests since 2003:81 Total MW:23,970 Requests by Generation Type:  Wind:52  Solar10  Coal:6  Gas:12  Biomass:1

32 Active FERC Generation Interconnection Studies ( )  Arapahoe – 587 MW  Boone – 500 MW Wind  Fort St. Vrain – 300 MW Wind; 256 MW Combined Cycle  Green Valley – 400 MW Wind  Hartsel – 100 MW Solar  Walsenburg – 300 MW Wind  Comanche – 700 MW Wind  Keensburg – 250 MW Wind  Ault – 1600 MW Wind  Jackson Fuller – 601 MW Wind  Missile Site – 800 MW Wind; 270 MW Gas  Lamar – 2686 MW Wind  San Luis Valley – 150 MW Wind; 1730 MW Solar  Pawnee – 1170 MW Combined Cycle; 2820 MW Wind

33 Senate Bill 07–100 Projects

34 Senate Bill  Upon recommendations by the 2006 Transmission Task Force on Reliable Electricity Infrastructure, the Sixty Sixth 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

35 SB-100 Overall Transmission Plan  Zone 4 Zone 5 Zone 1 Zone 2 Zone 3 Vilas Calumet Missile Site Ault Cherokee Pawnee Smoky Hill Daniels Park Comanche Lamar 345kV 230kV

36 Proposed Senate Bill 100 Projects

37 Proposed SB Projects A. Pawnee – Smoky Hill 345 kV Transmission Project B. San Luis – Calumet – Comanche 230/345 kV Line C. Missile Site 345 kV Switching Station D. Lamar – Front Range 345 kV Transmission Project E. Pawnee – Daniels Park 345 kV Line F. Ault – Cherokee 230 kV Line Addition G. Lamar – Vilas 230/345 kV Line

38 Pawnee - Smoky Hill 345 kV Transmission Project SponsorPSCo DescriptionBuild approximately 95 miles of 345 kV transmission line from the Pawnee Substation to the Smoky Hill Substation PurposeAccommodates 500 MW of potential resource additions near Pawnee. Complies with Colorado Senate Bill requirements by achieving transmission access to Energy Resource Zone 1 Schedule2013 StatusCPCN approved by CPUC February 2009

39 San Luis - Calumet - Comanche 230/345 kV Line Sponsor PSCo Description Build 95 miles of double-circuit 230 kV transmission line from the San Luis Valley Substation to a new Calumet Substation, near Walsenburg, Colorado. From the Calumet Substation, construct 45 miles of double-circuit 345 kV transmission line to the Comanche Substation. Joint project between PSCo and TSG&T Purpose Accommodates interconnection of MW of resources at or near the San Luis Valley Substation and/or the Calumet Substation Long term solution for Energy Resource Zones 4 & 5 Schedule 2013

40 Missile Site 345 kV Switching Station SponsorPSCo DescriptionA new 345 kV switching station near Deer Trail, Colorado Purpose Complies with Senate Bill as an injection point for potential energy resources in Energy Resource Zone 2 Accommodates up to MW of new generation resources by intersecting the Pawnee - Smoky Hill 345kV transmission line

41 Lamar - Front Range 345 kV Transmission Project SponsorPSCo DescriptionConstruct 120 miles of 345 kV transmission line from the Lamar Substation to the Comanche Substation, and 210 miles of 345 kV transmission line from the Lamar Substation to the Missile Site Substation Purpose A Colorado Senate Bill project designed to transport wind generation from the Baca County (Energy Zone 3) to the Denver Metro Area Provides transfer capability of 800 – 1000 MW

42 Pawnee - Daniels Park 345 kV Line SponsorPSCo DescriptionBuild a 345 kV transmission line from the Pawnee Substation to the Daniels Park Substation Purpose Complies with SB to facilitate potential generation resources in Energy Zones 1 and 2 Accommodates MW of resources interconnecting at or near the Pawnee Substation and/or the Missile Site Substation

43 Ault - Cherokee 230 kV Line Addition SponsorPSCo Description85 miles of 230 kV transmission line from the Ault Substation to the Cherokee Substation Purpose Comply with the Colorado Senate Bill Accommodates 300 – 600 MW of potential energy resources from Energy Resource Zone 1 Increases TOT 7 transfer capability

44 Lamar - Vilas 230/345 kV Line SponsorPSCo Description57 miles of 345/230 kV transmission line) from PSCo’s Lamar Substation to Tri State Generation and Transmission Association’s Vilas Substation PurposeA Senate Bill 100 project designed to transport wind generation from Energy Resource Zone 3

45 Senate Bill Schedule  2008 – 2009 Process  March 4, 2008: Kickoff Meeting  April – July 2008: Transmission Study Groups  November 24, 2008: Submit Transmission Plans  December 2008: Commission Workshop  February 27, CPCN approved for Pawnee to Smoky 345 kV  2009 CPCN Applications  October 31, 2009: Submit Biennial plan 

46 High Plains Express project

47 High Plains Express Initiative  Two 1,280 mile long, 500kV, AC lines through WY, CO, NM, and AZ  3,500 – 4,000 MW of transmission capacity  Cost approximately $5.13 billion  Utilizes Transmission Lines Proposed in the HPX Initiative

48 HPX Status  MOU for Stage 2 Executed  Organizational Structure Defined  Executive Committee  Work Groups: Commercial, Siting, Technical, Communication  Stage 2 Scheduled Completion in 2010

49 10-Year Plan 5 Year Capital Budget for Transmission Asset Management FERC - Generation Interconnection Studies SB -100 Transmission Plans to Energy Resource Zones 10 Year Colorado Long Range Planning Group (CLRPG) Studies High Plains Express (HPX) Initiative Westconnect 10 year Plan Posted ( February 2009) PSCo internal 10 year Plan will be posted April 2009

50 Stakeholder Opportunity for comment into study scope for 10 year assessment

51 Regional (WECC) Update

52 Regional (WECC)  Planning Coordination Committee  Focus on Reliability  Technical Studies Subcommittee  System Review Work Group  Transmission Expansion Planning Policy Committee  Focus on Economic Assessments

53

54 Sub regional Update

55 CCPG  Forum for joint transmission planning  Recognized WECC Sub-Region  Three Open Meetings/Year  April, August, December (Joint with SWAT/Sierra)  Denver TSGT Offices  Multiple Subcommittee and Work Group meetings throughout the year  Open to All Interested Stakeholders  Meeting Notices/Materials Posted at:

56 CCPG Activities  Long Range (10-Year) Planning  NERC Compliance  Senate Bill 100  Sub-subregional Studies  WECC Data Coordination  Regional Project Participation  Charter

57 Next  Next CCPG meeting  April 23, 2009; Denver TSGT office  Notices/Materials Posted at:  Contacts  Thomas Green    Or  Jared Griffiths (Co-chair)  Phone 

58 CCPG Long Range Planning Group (CLRGPG) Assessment  Purpose:  Develop 10 Year Transmission Plans (2018 Models)  Consider RPS & up to 30% Renewable  Re-evaluate the Eastern Plains Transmission Project Annual assessments include:  Assessment  Load Flow Analysis  Four Scenarios

59 Long Range Scenarios A. Colorado resources suggested by Utility resource planners Meets or exceeds Colorado’s Renewable Portfolio Standard “Stressed” from South to North B. Displace some northern CO resource with WY Injected into CO via the proposed Wyoming-Colorado Intertie Project Stressed North to South C. Up To 5% of the capacity in Colorado’s Wind GDA’s D MW from Colorado’s Central Solar Power GDA’s

60 Scaled Scenario C (Total 2917 MW new) 230kV 345kV 500kV

61 Scenario C – Topology Summary  Lamar area to:  Comanche 345/500kV (SB100)  Big Sandy – Missile Site 345/500kV (SB100)  Burlington 345/500kV  Burlington - Wray 230kV  Pawnee - Smoky Hill – Daniels Park 345kV (SB100)  Ault – Cherokee 230kV (SB100)

62 Subregional (WestConnect) Colorado Coordinated Planning Group Southwest Area Transmission CCPG SWAT SIERRA New Area ? CCPG, SWAT and SIERRA act as WestConnect technical planning work groups for WestConnect planning area Coordinate Base Cases for use by all study participants Define subregional study plans, provide study resources, and perform studies Provide forum for coordination and peer review of planning studies and 10-year plans

63 Status of WestConnect Subregional Planning Process  2008 Planning Cycle posted on web site  2013 & 2018 Adequacy Assessments( Posted)  Coordinated with CCPG  10-Year Study Plan and Report (Posted)  Workshop in October  Report in January  Currently preparing 2009 scope of work  Website 

64 Transmission customers update loads, resources and demand responses

65 Study Request Review

66

67 Stakeholder Questions & Comments

68 4 th Quarter meeting Dec 10, 2009

69 Adjourn