1. Rocky Mountain Area Transmission Study Transmission Projects Recommendations to RMATS Steering Committee June 9, 2004

2. 2 RMATS Run Configurations- 05/27/04 Ant Mine/Reno Dave Johnson LRS Cheyenne Tap Ault Green Valley Miners Jim Bridger Naughton Ben Lomond Midpoint 345 kV Borah Recommendation 1 Four projects Added Phase Shifter Broadview Colstrip Added Series Compensation Only Ringling Taft Missoula Intermountain Adelanto DC Upgrade Montana Upgrades WY-ID-UT Paths WY- CO Paths IPP DC upgrade Mona Red Butte Crystal Treasureton JB to Miners 345kV is present in all runs Also, Amps phase shifter, Flaming Gorge transformer, Midpoint to Boise 230kV are present in all runs

3. 3 RMATS Run Configurations- 05/27/04 Tesla Table Mtn. Grizzly Ashe Bell Taft Missoula Great Falls Broadview Ringling Colstrip Ant Mine Dave Johnson LRS Cheyenne Tap Ault Green Valley Miners Jim Bridger Naughton Grand Junction Emery Mona IPP Red Butte Ben Lomond Borah Kinport Midpoint Boise Crystal Market Place 500 kV 230 kV Adelanto Option 1 Option 2 Option 4 Option 3 Recommendation 2 Longer-term export options Added Phase Shifter Noxon Hot Springs This recommendation requires two 500 kV lines for export

4. 4 RMATS Run Configurations- 05/27/04 Incremental Resource Additions (MW) Alternative 2 500 Coal 210 Gas 500 Wind 280 Wind 575 Coal 140 Gas 250 Wind 700 Coal 250 Coal 125 Wind 100 Wind 500 Wind 1150 Wind 575 Coal 359 Coal 50 Wind

5. 5 RMATS Run Configurations- 05/27/04 Recommendation 1 Interfaces Changes from Line Additions InterfaceAdditionBefore (Reverse) – Forward After (Reverse) – Forward Incremental (Reverse) – Forward West of ColstripAdded Series CapacitorN/A - 2,598N/A – 3,098+500 West of BroadviewAdded Series CapacitorN/A – 2,572N/A – 3,072+500 Montana to NorthwestAdded Series Capacitor(1,350) - 2,200(1,350) - 2,700+500 Bridger WestBridger to Treasureton 345kV Bridger to Naughton 345kV N/A – 2,200N/A – 3,400+1,200 Borah WestBorah to Midpoint 345kVN/A – 2,307N/A – 2,807+500 Path CLoop in Ben Lomond to Treasureton Ben Lomond to Treasureton 345kV (1,000) – 1,000(1,500) – 1,500+500 West of NaughtonNaughton to Ben Lomond 345kVN/A – 920N/A – 1,520+600 West of Treasureton2-345 kV lines from Treasureton to Borah+1,000 Bridger EastMiners to Jim Bridger 345kV(600) - 600(1,100) – 1,100+500 Black Hills to C. WyomingAnt Mine to DJ 345kV(332) - 332(832) - 832+500 Black Hills to LRSAnt Mine to LRS 345kV(332) - 332(832) - 832+500 LRS to C WyomingDJ to LRS 345kV(640) - 640(1140) - 1140+500 TOT 3Cheyenne Tap to Ault 345kVN/A – 1,424N/A – 1,924+500 TOT 7Ault to Green Valley 345kVN/A – 890N/A – 1390+500 TOT 4AMiners to Cheyenne Tap 345kVN/A – 810N/A – 1310+500 IPP DCUpgrade Capacity(300) – 1,920(300) – 2,400+480 TOT 1AEmery to Grand Jct 345kVN/A – 650N/A – 1,150+500 TOT 2CMona to Red Butte 345kV(300) - 300(800) - 800+500 Idaho to MontanaRingling to Borah 500kV(337) - 337(1,337) – 1,337+1,000 Montana Lines Comp Bridger System Additions Colorado/Wyoming Additions

6. 6 RMATS Run Configurations- 05/27/04 Interface Performance * Black Hills to Central Wyoming in Run 4- binds 74% of the time, with an opportunity cost of $378,050 Sort

7. 7 RMATS Run Configurations- 05/27/04 VOM Costs by Area ($ Millions)

8. 8 RMATS Run Configurations- 05/27/04 See Comparative Economic Analysis Tables (3)

9. Rocky Mountain Area Transmission Study Sensitivities Sensitivities (applied to Alternative 3 – Option 3) Hydro (high & low) Gas (low: $4.5) Add Mohave CO 2 Adder ($5 & $15) DSM

10. 10 RMATS Run Configurations- 05/27/04 Annual VOM Costs Sensitivities – ($Millions)

11. 11 RMATS Run Configurations- 05/27/04 CO 2 Adder Sensitivity Methodology 1.Started with reference case’s emissions 2.Calculated emissions delta from reference case 3.Multiplied step 2’s emissions by $5 & $15

12. 12 RMATS Run Configurations- 05/27/04 Change in Loads with DSM (MW) - Year 2013  RMATS load growth from 2008 to 2013 with DSM sensitivity is equivalent to 100 MW  If generating resources in the 2013 alternatives are added, then 3,900 MW would be exportable  Sensitivities: DSM Option 1 makes use of 2013 loads applied to 2008 resources and transmission DSM Option 2 includes 2013 loads, Alternative 2 resources and DSM amount equivalent 1X Rocky Mountains sub-region load growth. It does not take into account resources that also may be required for planning margin.

13. 13 RMATS Run Configurations- 05/27/04 Transmission Additions DSM Sensitivity- Option 2 AsheTaft Missoula Broadview Ringling Colstrip Ant Mine Dave Johnson LRS Cheyenne Tap Miners Jim Bridger Naughton Mona IPP Red Butte Ben Lomond Borah Crystal Market Place 500 kV Additional DC 345 kV 230 kV Added TransformerAdelanto Added Phase Shifter Added Series Compensation Only Bell Great Falls Noxon Hot Springs * Option 1 requires no new transmission As with Alternative 3, two- 500 kV lines are required to export 3,200 MW

14. 14 RMATS Run Configurations- 05/27/04 Change in Opportunity Costs with Tx Solutions DSM Sensitivities Sort

15. 15 RMATS Run Configurations- 05/27/04 VOM Costs No Generation/ No Tx Solutions DSM – ($Millions) Negative (red) values indicate reduction in fuel cost due to displacement Positive (black) values indicate increased fuel cost due to higher dispatch