1. ISO Grid Planning Presentation to CREPC October 1, 2002
Armando J. Perez
Director of Grid Planning
California ISO

2. Presentation Contents
Components of ISO Grid Expansion Plan
General Planning Process
Transmission Projects
Generation Projects
Policy and Coordination
Transmission Cost Recovery

3. ISO Grid Plan Components SDG&E PG&E SCE Transmission Expansion Plan
Special
Focused
Plans
New
Generator
Interconnection
Plans
ISO
Controlled
Grid
Plan
ISO
Grid
Plan
Components
Reliability
Must-Run
Generation
Studies

4. General Planning Process
Stakeholder
Input
Develop Study Plan
Agree on Assumptions
Refine Models to Simulate Grid
(i.e., Power flow and stability)
Run Simulations – Normal and Outage Conditions
Compare Results with Planning Standards
Develop Preliminary Projects and Draft Report
Complete Final Report with Recommended Projects
Projects Over $20 Million Require ISO Board Approval

5. Economic & Reliability Benefits
Almost All Projects have both Reliability and Economic Benefits and may be justified from either or both perspectives.
Reliability Benefits - Primarily based on complying with Planning Standards resulting in fewer, shorter, and less widespread outages.
Economic Benefits – Reduction in the cost of power to ratepayers (access to lower cost resources and mitigation of market power).

6. Project Development Process
Determine Project Need
Determine Best Transmission Solution
Conduct Competitive Solicitation
Need methodology to compare projects with different time frames and benefits.
Need a means for rate recovery of non-transmission expenses.
Approve Best Project

7. Minimum Level of Reliability is Specified in Planning Standards

8. Transmission Projects
255 Projects Approved Since ISO Formation
$1.74 Billion
145 Already In-service
Generator interconnections not included
60+ Additional Projects Currently Under Study

9. Major Approved Projects
Path 15
Valley-Rainbow
= New 500 kV Project
X - Metcalf
X - Tracy
X - Tesla
X - Midway
X – Imperial Valley
X = New 500/230 kV Transformer
Jefferson-Martin
Tri-Valley
Northeast San Jose
Miguel-Mission
San Luis Rey
= New 230 kV Project

10. Generation Projects 225 Projects have been Followed by ISO
42 Projects On-line (6000+ MW)
71 Projects in Planning, Permitting or Construction (26,000+ MW)
112 Projects Cancelled or Placed on Hold (33,000+ MW)

11. Proposed New Generation
18 Projects MW
17 Projects
25 Projects
8 Projects
3 Projects
Year

12. Policy and Coordination
Policy – In various forums, we develop standards, procedures, methodologies, requirements, new organizations, etc.
Continental Level – NERC & FERC
Western Interconnection Level – WECC, CREPC & SSG
ISO Level – Stakeholder Groups
Coordination - Our planned changes will affect the entire interconnection and vice versa. All changes require some level of coordination.

13. Transmission Cost Recovery
High Voltage Access Charge
200 kV and above
Eventually Grid-wide
10 year transition period
Grid-wide for new facilities
Low Voltage Access Charge
Below 200 kV
Initially 3 TAC Areas (Northern, East Central, Southern)
Wheeling Out Charge
Offsets access charge

14. Questions ?