1. May 22-23, 2008 ACC BTA Workshop May 22-23, 2008 Regional Renewable Energy Transmission Initiatives Laurie Woodall K.R. Saline and Associates, PLC Arizona Corporation Commission 5 th Biennial Transmission Assessment Docket E-00000D-07-0376

2. Mesa, AZ 85201-6764 160 N. Pasadena, Suite 101 K. R. Saline & Associates, PLC ACC BTA Workshop May 22-23, 20082 Overview Increasing public policy interest in renewable development Need for more transmission in evidence Specific initiatives addressing integration of renewable energy sources into system

3. Mesa, AZ 85201-6764 160 N. Pasadena, Suite 101 K. R. Saline & Associates, PLC ACC BTA Workshop May 22-23, 20083 Public Policy Interest in Renewables Climate change / greenhouse gas concerns Regulatory requirements-renewable portfolio standards Diversity of fuel sources for growing load Potential for federal regulation of conventional fuel sources - “Carbon Tax”

4. Mesa, AZ 85201-6764 160 N. Pasadena, Suite 101 K. R. Saline & Associates, PLC ACC BTA Workshop May 22-23, 20084 Need for Transmission Growing loads, transmission limitations Renewables may be remotely located without access to available transmission Financing of transmission can be expensive and difficult for smaller intermittent renewable generators Some studies, governmental/NGO private initiatives to address these issues

5. Mesa, AZ 85201-6764 160 N. Pasadena, Suite 101 K. R. Saline & Associates, PLC ACC BTA Workshop May 22-23, 20085 WestConnect Planning Biennial Long Range Study A Westconnect–wide long range, conceptual study of transmission improvements needed to integrate renewables in the 10 th year and beyond Study will include findings of NREL wind/solar integration study, Colorado Resource Energy Zones Study, New Mexico collector study, and SWAT Renewable Task Force Complete initial study in 2009

6. Mesa, AZ 85201-6764 160 N. Pasadena, Suite 101 K. R. Saline & Associates, PLC ACC BTA Workshop May 22-23, 20086 Other Initiatives WGA West-wide Renewable Energy Zones Regional initiative to identify best renewable resources and designate Renewable Energy Zones, based upon commercial potential and cost-performed by consultant Inclusive stakeholder process to establish criteria to designate and validate zones for development Develop conceptual transmission plans through WECC and subregional planning groups to deliver from highest ranking zones Report to WGA re: commercial obstacles Identify options for interstate cooperation of planning and permitting Kick off meeting May 28, 2008 in Salt Lake City

7. Mesa, AZ 85201-6764 160 N. Pasadena, Suite 101 K. R. Saline & Associates, PLC ACC BTA Workshop May 22-23, 20087 California Renewable Energy Transmission Initiative (“RETI”) PG&E, SCE, and SDG&E filed renewable transmission reports with CPUC in September 2007 RETI formed with collaborating agencies and entities: CPUC, CEC, CAISO, Utilities, and other stakeholders Purpose - identify transmission necessary for California to achieve its renewable energy goals in cost-effective and environmentally sensitive manner. Final B&V report 5/16/08 Study area includes CA, BC,WA, NV, OR, AZ and Baja Norte Phases: Identify zones, identify conceptual transmission, assist in development of detailed plans

8. Mesa, AZ 85201-6764 160 N. Pasadena, Suite 101 K. R. Saline & Associates, PLC ACC BTA Workshop May 22-23, 20088 Colorado Initiatives Clean Energy Development Authority (“CEDA”) to develop three year plan, work with Colorado PUC & Colorado Coordinated Planning Group (“CCPG”) SB 07-100 requires each regulated utility to: –Designate Resource Energy Zones, –Develop needed transmission plans, –Encourage locally owned renewables, and –Submit plans and CPCN applications Utilities working with CCPG in phases: –April-July transmission planning groups, –November issue study plans, –Nov-Jan 09 prepare CPCN studies, –March 09 file CPCN applications, –Oct 09 file transmission plans

9. Mesa, AZ 85201-6764 160 N. Pasadena, Suite 101 K. R. Saline & Associates, PLC ACC BTA Workshop May 22-23, 20089 Colorado Resource Energy Zones

10. Mesa, AZ 85201-6764 160 N. Pasadena, Suite 101 K. R. Saline & Associates, PLC ACC BTA Workshop May 22-23, 200810 Nevada’s Initiative (“RETAAC”) Renewable Energy Transmission Access Authority Created by Executive Order of the Governor RPS - Nevada is a net importer Purpose: –Identify and rank commercially developable locations for renewable energy –Assess existing and planned transmission access to these resources –Make recommendations for additional transmission Phase 1 Report identified REZ, transmission required for access to grid, recommended transmission lines Future phases will include more detailed environmental review

11. Mesa, AZ 85201-6764 160 N. Pasadena, Suite 101 K. R. Saline & Associates, PLC ACC BTA Workshop May 22-23, 200811 Nevada RETAAC Plan Circles/Ovals Identify Renewable Energy Zones Conceptual Transmission Plan Shown By Brown / Purple Lines Per NPC/SPPC 5/19/08 SWAT presentation

12. Mesa, AZ 85201-6764 160 N. Pasadena, Suite 101 K. R. Saline & Associates, PLC ACC BTA Workshop May 22-23, 200812 New Mexico’s Initiatives SWAT New Mexico Study Group performed 2007 Cluster Study of Potential Wind Projects in Central NM 2007 Legislature created the New Mexico Renewable Energy Transmission Authority (RETA) RETA’s Purpose: –Orchestrate multistate, multi-electric utility negotiations to facilitate development of NM transmission infrastructure for renewable energy development and export –Focus is on electric system transmission infrastructure planning, financing, and implementation –A onetime only $1 million general startup fund authorized 2008 SWAT Renewable Task Force Study Participant

13. Mesa, AZ 85201-6764 160 N. Pasadena, Suite 101 K. R. Saline & Associates, PLC ACC BTA Workshop May 22-23, 200813 NM Wind Collector System Integrated with HPX ●Conceptual 345 kV Collector System in Central NM ●Cluster Study performed by PNM Per 2007 SWAT NM Study Group

14. Mesa, AZ 85201-6764 160 N. Pasadena, Suite 101 K. R. Saline & Associates, PLC ACC BTA Workshop May 22-23, 200814 Sources 1.Nevada RETAAC: http://gov.state.nv.us/Energy/FinalReport.htmhttp://gov.state.nv.us/Energy/FinalReport.htm 2.National Renewable Energy Lab Resource Center http://www.nrel.gov/renewable_resources/ http://www.nrel.gov/renewable_resources/ 3.New Mexico Renewable Energy Transmission Authority: http://www.emnrd.state.nm.us/MAIN/RETA2.htm http://www.emnrd.state.nm.us/MAIN/RETA2.htm 4.US Dept of Energy Efficiency and Renewable Energy: http://www.eere.energy.gov/ http://www.eere.energy.gov/ 5.WestConnect: http://www.westconnect.com/http://www.westconnect.com/ 6.AZ Climate Change: http://www.azclimatechange.gov/index.htmlhttp://www.azclimatechange.gov/index.html 7.California RETI: http://www.energy.ca.gov/reti/index.htmlhttp://www.energy.ca.gov/reti/index.html 8.Colorado: http://www.colorado.gov/energy/utilities/clean-energy-development- authority.asphttp://www.colorado.gov/energy/utilities/clean-energy-development- authority.asp 9.WGA: http://www.westgov.org/wga/initiatives/wrez/index.htmhttp://www.westgov.org/wga/initiatives/wrez/index.htm 10.Clean Electric Resource Strategy: http://www.westernresourceadvocates.org/media/pdf/Clean%20Electric%20Ener gy%20Strategy%20for%20Arizona.pdf http://www.westernresourceadvocates.org/media/pdf/Clean%20Electric%20Ener gy%20Strategy%20for%20Arizona.pdf

15. Mesa, AZ 85201-6764 160 N. Pasadena, Suite 101 K. R. Saline & Associates, PLC ACC BTA Workshop May 22-23, 200815 Sources (Continued) 11.TRANSMISSION RANKING COST REPORT OF SAN DIEGO GAS & ELECTRIC COMPANY (U 902 E) FOR RENEWABLE PORTFOLIO STANDARD PROCUREMENT: http://www.sdge.com/regulatory/tariff/svc%20TRCR%20Filing.pdf http://www.sdge.com/regulatory/tariff/svc%20TRCR%20Filing.pdf 12.TRANSMISSION RANKING COST REPORT OF PACIFIC GAS AND ELECTRIC (U 902 E) FOR RENEWABLE PORTFOLIO STANDARD PROCUREMENT: http://www.pge.com/includes/docs/pdfs/b2b/energysupply/wholesaleelectricsupplie rsolicitation/renewableportfoliostdsori-ii_other-doc_pge_20070907-01.pdf http://www.pge.com/includes/docs/pdfs/b2b/energysupply/wholesaleelectricsupplie rsolicitation/renewableportfoliostdsori-ii_other-doc_pge_20070907-01.pdf 13.TRANSMISSION RANKING COST REPORT OF EDISON ELECTRIC COMPANY (U 902 E) FOR RENEWABLE PORTFOLIO STANDARD PROCUREMENT: http://www.sce.com/nrc/rfp/2008_RPS_Appendix_D_SCE_TRCR.pdf http://www.sce.com/nrc/rfp/2008_RPS_Appendix_D_SCE_TRCR.pdf