1. JACKSBORO TO WEST DENTON 345-kV PROJECT Presentation to Technical Advisory Committee April 8, Transmission Services Operations

2. Goals and Objectives Maintain reliable service to customers
ERCOT Planning Criteria
NERC Planning Standards and Guidelines
Good Utility Practice
Currently in compliance with planning criteria requirements but will not be in 2006 without project.
Build a double-circuit 345 kV line using kcmil ACSR conductor with one circuit in place from Oncor’s Jacksboro Switching Station to TMPA’s West Denton 345/138-kV Switching Station, approximately 50 miles.
Estimated cost of this proposal is $46,470,000.
3/31/2004

3. Open Process North Regional Planning Group analysis and input
Project sent to North Regional Planning group on August. 27, 2003
Tractebel comments supporting alternative one sent to group on September 17, 2003
Oncor responds to Tractabel’s comments on Novemeber 6, 2003
ERCOT independent analysis sent via January 21, 2004
ERCOT Acceptance Letter sent via February 25, 2004
No dissenting comments received
TAC review and support April 8, 2004
3/31/2004

4. Independent Analysis
ERCOT Staff has performed independent analysis using in-house expertise, models and software tools of these projects
Thermal studies
Using Shaw PSS/E & MUST
3/31/2004

5. North Texas
3/31/2004

6. Denton/DFW Area Denton County Load - 1600 MW in 2003
Growth to 1830 MW in %/yr from CDR
DFW Load – Denton, Tarrant, Dallas, Collin
17,850 MW in 2003
Growth to MW in %/yr from CDR
Reduction MWH of generation due to emission reductions mandated by TCEQ
Further reduction of generation by TXU energy for economic operation
No new generation development in area
3/31/2004

7. Options Considered to Maintain Reliability
Option 1 - Construction of a 345 kV line from Willow Creek to West Denton. This alternative consists of a double-circuit line with one circuit in place using kcmil ACSR and would be approximately 40 miles in length. A series 138 kV series reactor installed at West Denton is also required.
This alternative would perform comparably to the proposed project in the near term. However, this option is not being pursued because it places a 21-mile section of single-circuit construction utilizing kcmil ACSR conductor in the newly completed path from Graham to West Denton; which is otherwise double-circuit construction utilizing ACSR conductor. This section will overload under contingency with higher west to north transfers and/or with generation added in the Wichita Falls area. The cost difference between this alternative and the proposed line is canceled by the cost savings that were realized in 2002 when the first section of this path to West Denton was built into Jacksboro instead of Willow Creek. A rough cost estimate for this option is $38,220,000. Not Viable
3/31/2004

8. Options Considered to Maintain Reliability
Option 2 – No new 345 kV construction. Rebuild and upgrade existing 345 kV and 138 kV transmission facilities. This will include:
Rebuilding the Willow Creek – Parker 345 kV line (17.2 miles, double-circuit construction, with one circuit of kcmil ACSR conductor in place).
Rebuilding the Parker – Benbrook 345 kV line (18.7 miles, double circuit construction, both circuits, kcmil ACSR conductor).
Accelerating the upgrade of the Wolf Hollow – Rocky Creek 345 kV line by one to two years (35.7 miles, double-circuit construction, both circuits, kcmil ACSR conductor).
Installation of 300 MVAR of 138 kV capacitors (100 MVAR each at Eagle Mountain, Roanoke, and West Denton).
Installation of a 2-ohm 138 kV series reactor at Eagle Mountain on the low side of the 345/138 kV autotransformer.
Rebuilding the Sherry – General Motors - Great Southwest 138 kV line sections (2.4 miles, double circuit construction, both circuits, kcmil ACSR conductor).
Rebuilding the Calmont – Carswell – Blackstone 138 kV line sections (5.3 miles, double-circuit construction, with one circuit of kcmil ACSR conductor).
Rebuilding the Calmont – Western Hills 138 kV line (2.6 miles, double circuit construction, both circuits, kcmil ACSR conductor).
This option was not pursued because it does not provide the 345 kV infrastructure necessary to move increasing amounts of power to and around the north side of the metroplex, it does not provide the 345 kV infrastructure necessary to serve the large amount of load that will develop north of Tarrant County, it does not significantly improve flexibility in generation dispatch, and it leaves Parker Switching Station as a critical node for system security. This alternative does not provide the benefits into the future that the proposed line will provide. It is estimated to cost in excess of $52,000,000. Not Viable
3/31/2004

9. Estimated Cost 345 kV Project from Jacksboro to West Denton
$46.5 M estimate
TCOS $ 7.7 M
Based upon 16.5% annual carrying charge rate
These are functional estimates based upon typical project costs, which are subject to change and should not be presumed to capture the exact amount or timing of projected capital expenditures.
3/31/2004

10. Recommendation
Endorse the need for Jacksboro to West Denton 345-kV Project
Comply with ERCOT Planning Criteria
3/31/2004

11. Questions, Discussion & Determination
Due to its very nature, transmission planning is a continuous process and is constantly changing due to the addition (or elimination) of plans for new generation, transmission facilities, equipment, or loads.
Benefits of good planning are not realized until transmission projects are completed and placed in service.
3/31/2004