1. EirGrid Customer Conference 2009 October 13, 2009 Dublin, Ireland Session 2: Key Industry Challenges “If you love wind, you have to at least like transmission” Beth Soholt Executive Director Wind on the Wires bsoholt@windonthewires.org

2. Presentation Outline Wind on the Wires (“WOW”) background Midwest Independent System Operator (regional “grid” operator) What’s driving renewable energy in the Midwest (and therefore the need for additional transmission)? Update on wind power installations Transmission Studies underway WOW participation in transmission line cases and lessons learned On-going Challenges for Wind Power and Transmission Conclusion

3. Background on Wind on the Wires Organized in 2001 to overcome the barriers to bringing wind power to market in the Midwest. Members include non-profit advocacy organizations, American Indian tribal representatives, wind developers and manufacturers, American Wind Energy Association, businesses that provide goods and services to the wind industry. Work in 3 areas: – Technical – work with electric utilities and Midwest Independent System Operator (MISO – regional “grid” operator) on transmission planning for wind, market and operational rules that treat wind fairly – Regulatory – actively participate in cases where states are approving new transmission lines that will access wind power – Policy education/outreach/advocacy – work with governors, state regulators, legislators, local elected officials, regional groups, colleague organizations, general public on wind and transmission issues Support – Foundation grants and member contributions

4. Renewable Northwest Project (WA, OR, ID, MT) Interwest Energy Alliance (AZ, CO, NV, NM, UT, WY) The Wind Coalition (NM, TX, OK, AR, LA, MS, KS, MO) Center for Energy Efficiency & Renewable Technologies (CA) Wind on the Wires (ND, SD, MI, MN, MO, IA, IN, WI, IL, OH) RENEW New England (CT, MA, ME, NH, RI, VT) Alliance for Clean Energy New York (NY) Potential New Mid-Atlantic Organization Potential New Southeastern Organization Wind on the Wires ACE New York MISO Renewable NW Project CEERT Interwest Energy Alliance Wind on the Wires The Wind Coalition Western Grid Group Western Grid Group (CA, OR, WA, MT, ID, AZ, NM, CO, UT, NV, WY) Midwest Independent Trans. Sys. Operators (MISO) (ND, SD, NE, MN, IA, MO, WI, IL, MI, IN, OH, KY, Manitoba) RENEW New England

6. Midwest Independent System Operator Scope of Operations: Geographic scope includes 13 states, 1 Canadian Province 750,000 square miles 159,000 MW of generating capacity 95,600 miles of transmission (69, 115, 120, 138, 161, 230, 345, 500 kV) 628 TWhours annual billing (2008 transmission service) In addition to Reliability functions, Midwest ISO Energy Market: Includes Day-Ahead Market, Real-Time Market, Financial Transmission Rights Market – Five-minute dispatch – Offers lock in 30 minutes prior to the scheduling hour; spot market prices calculated every five minutes; 2,072 pricing nodes

7. Renewable Electricity Standards 20% by 2015 HI: 20% by 2020 5,880 MW (~5.5%) by 2015 16.1% by 2020 16.2% by 2020 15% by 2025 2% by 1999 24% by 2013 VT: 10% of 2005 sales by 2013 MA: 20+% by 2025 CT: 23% by 2020 RI: 16% by 2019 NJ: 22.5% by 2020 MD: 20% by 2022 28 States + D.C. DC: 20% by 2020 15% by 2015 DE: 20% by 2019 15% by 2020 Standard Standard and Goal Voluntary Goal NH: 23.8% by 2025 VA: 12% by 2022 20.2% by 2025 ME: 40% by 2017 25% by 2025 10% by 2015 27.4% by 2025 15% by 2021 20% by 2010 8% by 2020 11.2% by 2021 10% by 2015  16 states + D.C. have requirements of 20% or higher 10% by 2015 20% by 2025 12.5% by 2025 10% by 2015

8. 2 nd Quarter Market Report 2,860 MW commissioned in 1Q09 1,210 MW commissioned in 2Q09 >5,500 MW under construction (for completion in 2 nd half of 2009 and/or first half of 2010) Over 4,000 MW installed in 1 st half of 2009

9. Installations Growing Throughout U.S. HI 63 AK 3 As of end of June 2009, 29,440 MW of wind installed in 35 states > 1 GW 100 MW - 1 GW < 100 MW

10. Transmission Studies State driven transmission study efforts – Minnesota Renewable Energy Standard (MN RES) Transmission Studies – Michigan Wind Energy Transmission Study Sub-regional group studies by utilities and the Midwest ISO – CapX 2020 Initiative – American Transmission Company (Wisconsin) – Midwest ISO Regional Generator Outlet Study – Phase I and II Multi-state transmission regulatory efforts – Upper Midwest Transmission Development Initiative – Organization of Midwest ISO States Midwest ISO footprint wide studies – MISO Transmission Expansion Plan ’08 and ‘09 Inter-regional studies – Joint Coordinated Transmission Plan – Eastern Wind Integration and Wind Transmission Study

11. 11 Midwest ISO is actively engaged in planning from regional to the Eastern Interconnection level RGOS = Regional Generation Outlet Study MTEP= Midwest ISO Transmission Expansion Plan JCSP = Joint Coordinated System Plan EWITS = Eastern Wind Integration and Transmission Study

12. New and Upgraded Transmission in SW MN for Wind Power New lines: Split Rock – Lakefield Junction * 345 kV Lakefield Junction – Fox Lake * 161 kV Nobles – Fenton – Chanarambie * 115 kV Buffalo Ridge – White * 115 kV Chanarambie – Lake Yankton – Lyon115 kV Upgraded lines:Fox Lake – Winnebago161 kV Martin Co – Wilmarth345 kV * Xcel Energy Certificate of Need, Minnesota Public Utilities Commission Decision 1/30/03

13. Minnesota Public Utilities Commission (PUC) Order: Certificates of Need Subject to Conditions 2007 in-service date for new facilities Xcel Energy (utility company) purchase 825 MW of wind- generated electricity, including 60 MW of small, locally owned wind power Xcel Energy, within 15 days of obtaining CONs, make transmission service requests for network (firm) service to the Midwest ISO for 825 MW of wind Xcel Energy designate new wind generators as network resources Xcel Energy report to MN PUC any regulatory developments at regional or federal level that could affect the conditions placed on the Certificates of Need

14. CapX Group I Lines Twin Cities – LaCrosse, WI: ~150 miles, 345 kV Fargo, ND - Twin Cities: ~250 miles, 345 kV Brookings, SD – Hampton Corners : ~200 miles, 345 kV

15. On-Going Challenges for Wind Power and Transmission Best wind resources are located far from load; agreement on what transmission should be built Transmission studies that are properly scoped and completed on schedule; studies must then successfully move through the regulatory stage and into construction Cost allocation – who pays for new transmission? Fair Market and operational “rules of the road” – must accommodate and not penalize intermittent resources like wind power Wind Integration issues – these issues show up in transmission planning, the energy market and operations Siting/routing new transmission lines

16. Conclusion Goal: Steel in the ground and wires in the air! Bring constructive, credible technical resources into the transmission planning arena that can partner with renewable energy advocacy efforts Active participation in regulatory cases to support new transmission lines Educating colleague organizations on why transmission is needed to achieve environmental/climate change/policy goals Find and support unlikely champions Early and often involvement with communities and other stakeholders