0. THE TRES AMIGAS SUPERSTATION
UNITING THE NATION’S ELECTRIC POWER GRID
THE TRES AMIGAS SUPERSTATION
Project Overview and Status Report
to ERCOT Regional Planning Group
May 21, 2013

1. Tres Amigas Presentation Team
David Stidham, COO and Senior VP, Tres Amigas Ziad Alawyan, CEO, ZGlobal and member of Board of Directors, Tres Amigas (by remote) Andre Canelhas, Managing Director, HVDC Solutions LLP Pat Wilkins, ERCOT Representative, Tres Amigas

2. Presentation Agenda Tres Amigas Background
Voltage Source Converter Technology Overview
VSC Capabilities and Grid Benefits
Tres Amigas Project Development Aspects

3. Background – Investment and Milestone History
2009
2010
2011
2012
New Investors
Energy IT Optimization Inc.
Key
Milestones
Attracted TA’s first strategic investment from American Superconductor
Signed the option to enter into a 99-year lease with the State of New Mexico
Signed 99-year lease for 16,000 acres
Received FERC approval to sell transmission at negotiated rates
Entered into a supply Agreement for VSCs with Alstom
Received the first Series-B investment from Hennepin Ventures
Legislation passed in State of New Mexico exempting Tres Amigas from Gross Receipts Tax
Received the second Series-B investment from Mitsui & Co. 3 3

4. Background – Project Strategically Located
Tres Amigas Is Ideally Situated in Eastern New Mexico Near the Borders of CO, OK and TX Serving as a Three-Way Interconnection of WECC, Eastern and ERCOT

5. Background – Phased Development
Phase I
Phase II (a)
Phase II (b)
WECC 750 MW
SPP 750 MW
ERCOT 0 MW
WECC 750 MW
SPP 2250 MW
ERCOT 1500 MW
WECC 750 MW
SPP 2250 MW
ERCOT 1500 MW
750 MW AC line
2 components:
Tres Amigas Substation to Public Service of New Mexico’s Blackwater Substation (TA to WECC)
Tres Amigas will be a Balancing Authority in WECC
Tres Amigas Substation to SPS’s Tolk Substation (TA to SPP)
Construction to begin in 2Q13 and completed by 2Q16
1500 MW merchant AC Line
Line will run from Tres Amigas to ERCOT with interconnection at a Panhandle CREZ line point to be determined by ERCOT
DC conversion will occur either at ERCOT interconnection point or Tres Amigas - TBD
Not synchronous between SPP and ERCOT
Construction to be begin pending regulatory approvals with COD mid 2017
Line runs from Tres Amigas to the Potter Substation
Configuration TBD 5

6. Background - Regulatory History and Status
March, FERC issued approval of negotiated rate authority (not cost-based) to Tres Amigas to sell transmission service October 7, 2012 – Phase I Interconnection Agreement with Public Service of New Mexico approved by FERC April 8, 2013 – Phase I Interconnection Agreement with SPP and SPS/Xcel Energy approved by FERC

7. Background – Proposed Transmission Routing
Phase 2
Phase 2
Line constructed for single circuit operation in Phase 1 and expanded to double-circuit in Phase 2
Phase 1
Phase 1 & 2
Phase 2 7

8. VSC Technology – How Does It Work

9. VSC Technology - Multi-Level Converter
Output Voltage
Multi-level VSC +
Steady DC Voltage Input

10. VSC Technology - Modular Multi-Level Converter (MMC)
Idc
Idc/3
+ ½ Vdc Vs Vc 
Iac/2
iac
Iac/2 Vs Vc
- ½ Vdc

11. VSC and Super Station Capabilities
Normal Active and Reactive power exchange determined and controlled independently;
Active and reactive power controlled electronically accurate in real time to the micro-second;
Fire-wall for system disturbances;
Emergency power control and power modulation as well as run-back programed as prescribed by network planning studies;
Voltage control;
Frequency control;
Damping of electro-mechanical oscillations;
Tres Amigas will offer robust and reliable grid solutions to increase overall reliability and efficiency.

12. VSC and Superstation Grid Benefits
Black-start and grid restoration;
Strategic operation supported by powerful simulation center with state of the art tools and capability to adapt control algorithms as needed;
Interaction with transmission owners with information exchange process designed to capture, study and offer solutions to serve grid needs towards efficiency and reliability;
Competent people being developed and trained by working hands-on throughout system development
Tres Amigas will offer ancillary and grid support
services to increase overall reliability.

13. Project Development - ERCOT IA Process Initial Steps
April 2, 2013 – Tres Amigas team briefed PUCT commissioners and staff on project development and status April 8, TA submitted notification to ERCOT as specified under Process for Evaluating Transmission Projects Related to Asynchronous Ties April 12, 2013 – ERCOT notified RPG of TA IA notification and designated Sharyland as lead TSP for system impact analysis May 15, 2013 – Reliability study scoping meeting among Sharyland, ERCOT, Cross Texas Transmission and Tres Amigas

14. Project Development - Interconnection Reconfiguration
Based on concerns expressed by the PUCT commissioners, TA began an evaluation of a reconfiguration of its ERCOT interconnection:
Installation of two VSCs at Hereford Windmill location
Two separate DC lines from Windmill to Tres Amigas main station in New Mexico
Initiating RFP processes for VSCs and DC line construction

15. Project Development - Two Types of InterconnectionAC DC
1 Station  =
WECC 750 MW
SPP 750 MW
ERCOT 0 MW
Phase 1
2 x 750 MW VSC Converters back-to-back at Tres Amigas Super Station
WECC 750 MW
SPP 2250 MW
ERCOT 1500 MW
Phase 2 (a) AC DC
Station 2
Station 1 = 
An HVDC scheme requires two converters, one to convert from ac to dc, and the other to convert ac back into ac, as can be seen in all of these diagrams.
There are two main types of HVDC schemes:
“Back to Back”. These are usually used for applications which connect systems with different frequencies, for example 50Hz to 60Hz or where the ac schemes to be connected are asynchronous, even if nominally at the same frequency. The two converters of a back to back scheme are built into one building, so there is only one physical station.
“Point to Point”. These are used for bulk transmission of power over long distances and will consist of two remote stations. There are two sub-types: those in which the two stations are connected together by lines overland as can be seen in the centre diagram, and those in which the stations are connected together by special cables under water - but the cables could equally be buried underground.
The rules of design for the converters are different for each of these systems.
…………………………. So now let’s look at a few examples ……………….. NEXT
2 x 750 MW VSC Converter at Tres Amigas Super Station
2 x 750 MW VSC Converters at Hereford, TX
The possibility to interconnect the converters by a super-node remains available

16. Project Development - Phase 2

17. Project Development - Timeline
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Phase I
Incremental Capacity: 750MW for WECC and SPP
Operation
Construction
Phase II (a)
Incremental Capacity: 1,500 MW for ERCOT and SPP
Construction
Operation
Construction
Operation
Phase II (b)
Incremental Capacity: 2,250 MW for ERCOT and SPP 17

18. More information available at www.tresamigasllc.com

19. Tres Amigas SuperStation…. Uniting the Electric Grid