1. Public Service Company of New Mexico
Public Transmission Planning Meeting
March 5, 2015
Albuquerque, NM

2. PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM
Agenda
Introduction
Agenda Additions
Stakeholder Process
PNM 10-Year Plan Development
Regional Activities
Summary of Current Interconnection Study Activity
Order 1000 Stakeholder Process Status
Other Items
Next Meeting
PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM

3. PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM
Introduction
Public Stakeholder Meetings
Order 890 Objective to improve transparency
Involvement of all affected stakeholders
Coordinated with WECC processes
Reliability – System performance evaluations, reliability standards and coordination.
TEPPC – Planning Policy and Economic Evaluations
Formalized Stakeholder Input through WestConnect STP Agreement
OATT Appendix K defines each utility’s planning process.
PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM

4. PNM Bi-Annual Meetings
March Meeting
Study Plan
Solicit Stakeholder Input to Plan
November
10-Year Plan Review
Solicit Stakeholder input on plan and follow-up to be included in next planning cycle
Others as needed
PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM

5. PNM Study Plan Objectives
Support Data Base Development for PNM and Regional Studies
2017 (2-yr), 2020 (5-yr), 2025 (10-yr)
Maintain Reliability
Define Transmission for Native, Network and Point-Point Customers
Incorporate Plans Developed Through FERC Processes, NM IRP and Regional Planning Analysis
PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM

6. PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM
Study Scope
Review transmission adequacy with network customer updates to designated network resources and load.
Determine if new system improvements or adjustments to existing improvements are needed to serve expected obligations.
Develop operational mitigations or system improvements to maintain system reliability and associated cost estimates and schedule.
Incorporate assessments of economic congestion if applicable.
PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM

7. PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM
Methodology
Powerflow Assessments
All lines in service
Single circuit or transformer contingencies
Double circuit contingencies
Breaker failure contingencies
Short Circuit Analysis
Stability Analysis
Dynamic Stability
Voltage Stability
PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM

8. PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM
Key Assumptions
Load forecast
Slow growth
Effects of energy efficiency, demand response and load side distributed renewables
Generation modeled
In-Service
Under Construction with expected ISD
Wind resources
Capacity for summer peak based on historical – low contribution
Sensitivity cases for high wind periods
Committed projects will be included as part of base case assumptions
PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM

9. Modeling Criteria for PNM Planning Area
NERC/WECC Reliability Criteria (included with Study Plan)
Line loading criteria
Base Case and Post-contingency voltage criteria
Minimum voltage stability margin
Minimum/Maximum transient voltage and frequency
Violations of performance criteria is basis for most system improvements.
PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM

10. Final 10 Year Plan Facilities
Facilities defined in this planning cycle for Native and Network Customer Load Growth and Point to Point Transmission Service
Committed projects from other studies:
Previous Planning Cycle
Transmission associated with an approved IRP
Studies performed pursuant to NM IRP rule.
Transmission for Generator Interconnections with notice to proceed
Studies per FERC requirements
New Point-Point Requests with notice to proceed
PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM

11. PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM
Project Additions for 2017
Completed
Rio Puerco-Progress 115 kV Line (2014)
Under Construction
Richmond Switching Station (2016)
Rio Puerco 345 kV Station Additions (2015)
Rio Puerco-Progress 115 kV Line (2015)
Rio Puerco SVC (2015)
Yah-Ta-Hey 345/115 kV Transformer Addition (2016)
PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM

12. 2017 Base Case Northern New Mexico
Rio Puerco Expansion
and SVC (ISD 2015)
Completed Project
Planned Project
Yah-Ta-Hey Transformer
(ISD 2016)
Richmond Station
(ISD 2016)
PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM

13. 2017 Base Case Southern New Mexico
Alamogordo Replacement Capacitor Installation
(ISD 2015)
Completed Project
Planned Project
PNM Open Transmission Planning Meeting March 5, 2015 Albuquerque, NM

14. Planned Project Modeled for 2020
2017 Projects plus:
Alamogordo Voltage Support Phase 2
PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM

15. PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM
2020 Base Case Additions
Southern
New Mexico
Alamogordo Replacement Capacitor Installation
(ISD 2015)
Alamogordo Voltage Support Phase 2
(ISD )
Completed Project
Planned Project
PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM

16. Planned Projects Modeled for 2025
PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM

17. AGING INFASTRUCTURE PROJECTS
Spare 345/115 kV Transformer
Spare 345 kV Line Reactor
Equipment will be energized to support system but can be relocated if needed.
PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM

18. Additional Information
See November, 2014 meeting presentation for additional project details.
2014 Rio Puerco and Jicarilla follow-up:
Requested WECC approval to update Path 48 Definition and Rating in January – in 60 day review period.
Received WECC approval for required modifications to WECC RAS PNM-1 in January.
PNM Open Transmission Planning Meeting March 5, 2015 Albuquerque, NM

19. PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM
Timeline
February 19 - Draft Study Plan distributed to stakeholders
March 1 - Network Customer ten-year projected network load and network resources are due to PNM
March 5 - Stakeholder Meeting to discuss study plan.
March 30 - Finalize detailed Study Plan and Base Cases
March thru July – Complete analysis, develop improvements including descriptions, one-line and cost estimates
November 5, Stakeholder meeting to review transmission plan and follow-up for next study cycle
PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM

20. Stakeholder Discussion
Loads and Resources required from Stakeholders.
Study Plan Discussion
Comments/suggestions by March 19, 2015
PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM

21. PNM Open Transmission Planning Meeting March 5, 2015 Albuquerque, NM
Regional Projects
High-Plains Express
Phase II Completed – no Stakeholder activity in 2014.
SunZia
Received EIS Record of Decision on January
Targeting a 2020 in-service date
Tres Amigas
Some limited activity to complete preparation for next phase of studies.
Lucky Corridor
Project modified to single 345 kV line from Gladstone area to Ojo switching station.
Completed WECC Project Coordination Review Group report.
Southline Project
Completing WECC rating process in March
Centennial West Clean Line Project
Development agreement with Western Area Power Administration
Western Spirit Clean Line Project
Stakeholder relationships established with Tribal entities, PNM, and private landowners
Initiating WECC Project Coordination Review Process
PNM Open Transmission Planning Meeting March 5, 2015 Albuquerque, NM 21

22. PNM Open Transmission Planning Meeting March 5, 2015 Albuquerque, NM
Map of Transmission
HPX
SunZia
HPX
SunZia
Tres Amigas
Lucky Corridor
Southline
Centennial West
Alt
Western Spirit
PNM Open Transmission Planning Meeting March 5, 2015 Albuquerque, NM 22

23. Interconnection Cluster Activity Summary
Fourth Definitive Cluster closed February 16, 2014
Three requests – 415 MW
Initial System Impact Studies completed
Some restudies required and a Facilities Study process started
Fifth Definitive Cluster closed November 13, 2014
Three requests – 148 MW
Starting System Impact Studies
Fifth Preliminary Cluster open through March 15, 2015
PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM

24. PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM
Order 1000
Initiated an abbreviated 2015 Order 1000 Planning Cycle
New Planning Management Committee and various subcommittee formed.
PMC is currently holding two meetings a month.
Planning Subcommittee will be holding regular meetings to work through planning analysis.
Cost Allocation Subcommittee expected to start meetings in March.
Most non-jurisdictional transmission owners have not signed the new PPA. Awaiting FERC ruling on compliance filing.
Targeting completion of a 2024 peak summer base case in March.
New planning consultant hired through RFP process and on-board.
Energy Strategies
PNM Public Transmission Planning Meeting March 5, 2015 Albuquerque, NM

25. PNM Open Transmission Planning Meeting March 6, 2014 Albuquerque, NM
2015 Order 1000 Schedule
PNM Open Transmission Planning Meeting March 6, 2014 Albuquerque, NM

26. Questions or Comments Don Maez Donald.Maez@PNM.com 505-241-4577
PNM Public Transmission Planning Meeting
March 5, 2015
Albuquerque, NM