The Regulatory Assistance Project

Transmission in the Western U.S.

EPA Region X Workshop
Presented by Lisa Schwartz

April 24, 2012
Transmission Topics Today
A few transmission fundamentals
USDOE transmission activities
Transmission planning Utility, subregional and
Western Interconnection-wide
FERC Order 1000 transmission planning requirements
Other Western transmission initiatives
Western Renewable Energy Zones
BPA Non-Wires Solutions
2
3
Transmission lines move power from power
plants or interties (lines between balancing
authority areas*) to transmission or
distribution substations.
*The collection of generation, transmission, and loads within the metered
boundaries of the Balancing Authority. The Balancing Authority maintains load-
resource balance within this area. (NERC)
Network Interconnections
Interconnection: a geographic area in which the operation of
the bulk-power system components is synchronized such that the
failure of one or more of such components may adversely affect the
ability of the operators of other components within the system to
maintain reliable operation (DOE FOA, June 15, 2009)
Benefits of Interconnection:
Reliability backup from entire network for loss of generating
capacity
Economic energy trading among parties capture load and
resource diversity
North American Interconnections
Texas
Eastern
Interconnection
Quebec
Western
Interconnection
Entities Coordinating Reliability in U.S.
6
AC vs. DC Transmission Lines
Three phase AC systems adopted in early 20
th
Century
Standard North American frequency is 60 Hertz (60 cycles per second)
AC transmission voltages in the US increased during 20
th
Century from
44 kV to 765 kV
Voltage choice is based on capacity need, fit to existing system,
technology advances and ultimately cost to construct and operate.
Advantage of AC systems:
Voltage can be increased and decreased by low cost transformers
Current can be inexpensively interrupted
No direct control of power flow on lines in an AC network
Line flow is changed by altering the generation dispatch.
Change in generation dispatch affects all lines in network
DC lines: AC-DC convertors at each end control power flow
No decrease in capacity with distance, but not economical for short lines
No capacity loss for underground lines

WECC
Existing Transmission
System
230 kV HVAC
345 kV HVAC
500 kV HVAC
+ 500 kV HVDC


USDOE Transmission Activities
Recovery Act transmission funding
$6 billion for loan guarantees for renewable and transmission
technologies
$3.25 billion in increased Bonneville Power Administration
borrowing authority
$3.25 billion in Western Area Power Administration borrowing
authority
$80 million for facilitating the development of regional
transmission plans - East, West and ERCOT (Texas)
See Additional Slides on:
Transmission congestion studies
Coordination of federal transmission permitting
Rapid Response Team for Transmission
9
Transmission Planning in the Western U.S.
10
What Is Transmission Planning?
Identification of future infrastructure
needs to
1. Serve the expected load reliability
2. Meet public policy directives
3. Minimize cost and environmental impact
Identification of future transmission
capacity needs given a future set of loads
and generation resources

11
Transmission System Planning
Components
Load Forecasting determining the need to be served
Annual forecasts out to 10
th
year are collected by WECC
Load profiles How load behaves from hour-hour over the year
Resource Planning selecting the best portfolio of
resources that meets multiple objectives
Policy objectives
Capital and operating costs
Operating characteristics
Dispatch responsiveness to follow load
Locational needs for voltage support or dynamic inertia
Transmission Planning dealing with space and time to
reliably deliver energy to consumers
Make the best possible decision today after
examining possible future needs and conditions

Transmission Planning in the West
13
Subregional Planning Groups
1. Utilities and federal
power marketing
agencies (e.g., BPA) plan
transmission to meet load,
transmission service requests and
public policy directives.
2. Subregional planning
groups conduct detailed studies
of aggregate plans of affiliated
transmission providers and jointly
consider planning issues among
members and stakeholders.
3. Western Electricity
Coordinating Council
(WECC) conducts interconnection-
wide planning studies focus today
Studies by Subregional Planning Groups and
Transmission Providers
Subregional Planning Groups Adequacy assessments
Power flow studies
Dynamic stability studies
Production cost simulations (by some subregional planning
groups)
Transmission Providers
and Project Sponsors
Power flow and dynamic
stability studies
For project design
To establish path ratings
under WECCs Project Rating
Process

14
Gateway West project Idaho Power and
PacifiCorp
Utility Resource Planning and Procurement
Longterm utility resource/procurement plans
direct resources developed transmission follows
For renewable resources, utilities are focused on
acquiring within or close to their service areas.
Renewable portfolio standards may limit out-of-state
resources or create a preference for in-state resources
Developing local resources is a better match with modular
renewable resource development
Easier to site and recover costs for in-state facilities
Siting transmission across borders is difficult
Pancaking of transmission charges
Utilities prefer resources with existing transmission

15
Environmental Conundrum:
Long-term vs. short-term concerns
Stave off a biodiversity disaster in the future by fast-
tracking renewable-power development and
transmission vs.
Protect important habitat and landscapes now no matter
long term climate concerns
Human nature to focus on short term, tangible, impacts
close to home
We know and can reasonably control the proximal
threats of renewable energy generation and transmission
vs. having less knowledge, fewer tools, and less legal
ability to influence the impacts of a substantially warmer
climate
Source: Gary Graham, Western Resource Advocates; chair, WECC Scenario Planning Steering Group
Environmental Issues and Stakeholders
Bring environmental issues at stake in
project siting and routing to transmission
planning; treat them with weight equal to
that given project economics
Earn stakeholder consent: Enabling
stakeholder participation in transmission
planning can earn stakeholder support for
planned projects
17
Source: Ron Lehr, Western Grid Group
Long Term and Scenario Planning
Plan diverse long term scenarios that require
different transmission solutions. Note common
transmission elements required in most or all
scenarios. Replan.
Bring external costs and benefits to bear on
transmission plans.
Use planning information to inform investment
due diligence and public approval decisions.
18
Source: Ron Lehr, Western Grid Group
FERC Order 1000 (1)
Each Transmission Provider must participate in a
regional planning process that results in a regional plan
Define planning region
Subregional planning groups to constitute regions, more or less
Identify process for making decisions
Satisfy Order 890 principles
Coordinate with other planning regions
Identify and jointly evaluate transmission facilities that are
proposed to be in both regions
Exchange planning data and information
Set procedures to identify transmission needs driven by
Public Policy Requirements & evaluate potential solutions
Stakeholders must be consulted
Transmission cost allocation also part of order
FERC mandated a process, not an outcome
19
FERC Order 1000 (2)
Required scope of Public Policy Requirements to consider
is limited to existing state and federal laws or regulations
Policies considered in West-wide planning today*
Policies that affect resource selection
Renewable portfolio standards, demand-side resources,
integrated resource planning
Carbon and air quality policies
Policies with a nexus to electric sector
Water, wildlife and environmental resources
Wests Regional Transmission Plan is good role model for
regional plans under Order 1000
Existing state and federal policies for expected or base case
Prospective policies for plausible alternative futures
Also consider policies with a nexus to electric sector
20
*Western Interstate Energy Board paper will be posted at http://www.westgov.org/order1000/site/documents.htm


Western Interconnection Regional
Transmission Planning Process (RTEP)

21
Goals of RTEP Process
Expand regional transmission planning activities
An extension of existing planning process, with annual study
requests from stakeholders under FERC Order 890 provisions
Coordinate Subregional Coordinating Group Common
Case Transmission Assumptions
Create 10Year Transmission Plan in 2011 and 2013
Create 20Year Transmission Plan in 2013
Facilitate stakeholder involvement
Reach out to groups not traditionally involved
Expect process will continue on a biennial cycle
Planning process will evolve, adapt and improve with each cycle
Focus on studies with Interconnection-wide implications
Reliability, cost and emissions

22
http://www.wecc.biz/Planning/TransmissionExpansion/RTEP/Pages/default.aspx
RTEP Components
Two separate but related activities
10-Year Planning A bottom up process:
Local and SPG studies produce proposed projects
TEPPC evaluated system impact of projects.
Output is a 10-Year Regional Transmission Plan based on
TEPPCs consideration of proposed projects
20-Year Planning A top down process:
TEPPC begins from scratch looking at possible scenarios.
TEPPC evaluates likely long-term transmission needs to
produce 20-Year Regional Target Transmission Plan.
Transmission Expansion Planning Policy Committee
TEPPC provides policy direction and management of the
regional planning processes and guides analyses and modeling
for economic transmission expansion planning.


23
Stakeholder and Expert
Involvement
Scenario Planning Steering Group
Guidance on scenarios to be modeled,
key assumptions and modeling tools
NGO, state, consumers, industry, tribes
Environmental Data Task Force
Develop method to compare
transmission alternatives based on
relative risk of facing environmental
and cultural constraints
Environmental Recommendations for Transmission Planning
report at http://www.wecc.biz/committees/BOD/TEPPC/SPSG/EDTF/default.aspx
State-Provincial Steering Committee
State PUC and provincial energy ministry representatives
Demand-Side Management Work Group recommends high energy
efficiency, demand response, distributed generation scenarios
Subregional Coordination Group Develops Common Case
Transmission Assumptions (next slide)
TEPPC work groups Develop/review data, modeling methods
24
25
10-Year Study Model
Production cost simulation used to investigate
transmission system congestion and congestion relief
A least cost hourly dispatch for each hour of the study year
Dispatch with constraints of reliable operation, including:
Transmission path ratings
Generation operating parameters
Base cases
Loads and resources collected from Balancing Authority Areas
Existing generation units
Existing transmission network
Study Cases
New resource portfolios
Potential transmission expansion

26
20-Year Planning Studies
Scenarios cover broad strategic factors. For example:
Regional economy activity
Public policy
Environmental and cultural values
Study Case Development Tool
Aid to Scenario Planning Steering Group in developing scenarios
Convert scenarios into nodal load and resource data
Provide segment route possibilities considering environmental impacts
Network Expansion Tool
Synthesizes feasible networks for study end states
Analysis of end-state networks
Looks for tendencies where is capacity needed, how much and when
Requires analytic judgment not a model
Identify significant exemptions low probability but major consequences
Repetition of network designs
Narrow the range of long-term study case
Provides the sequence for facility additions

27
20-Year Scenarios - 2032
28
29
10-Year Regional Transmission Plan for 2020
(Completed September 2011)
30
http://www.wecc.biz/library/StudyReport/Wiki%20Pages/Home.aspx
Renewable Procurement
Trends
Renewable Resource Relocation Cases
34
Resource Relocation Alternatives
Transmission Expansion
36
Coal Plant Retirement Study Set to Inactive
37
38
1. Some remote renewable resources are cost-effective
2. Consider upgrades for Montana to Northwest path
3. Consider upgrades for Pacific Tie paths
4. Study operational impacts of variable generation
5. Planning cooperation needed
6. Address environmental and cultural considerations
in future transmission planning processes
7. Water resources will impact future generation mix
8. Gaps in regional transmission planning processes

Observations and Recommendations
No new major transmission needed by 2020 to meet load and state policy
objectives (e.g., Renewable Portfolio Standards) beyond 44 foundational
projects already under development (Map in Additional Slides)
Other Western U.S. Transmission Initiatives
40
Western Renewable Energy Zones Initiative
Western Governors initiative funded by USDOE
Identify and develop areas with
enough high-quality renewable
resources to justify high-capacity
transmission lines (500 kV AC) in
areas with low environmental impacts
Including 95,000 MW of wind in 53 hubs
Identify WREZs of common interest
Explore how to develop these zones
and associated transmission
Create a critical mass of transmission
needs in the same timeframe for efficient build-out
Convene multi-state discussions on transmission siting
and cost allocation
41
42
WREZ Hubs of Multi-Utility,
Multi-State Interest
CCTA Common Case Transmission Assumptions in WECCs 2022 Regional Transmission Plan
Full map and report: Renewable Resources and Transmission in the West: Interviews on the Western
Renewable Energy Zones Initiative, March 2012, http://www.westgov.org/initiatives/rtep
BPA Non-Wires Solutions
NWS are non-traditional solutions, such as distributed generation,
demand exchange, demand response, and conservation measures,
that may keep costs down, while maintaining reliability.
Often constraints on the transmission system are 40 hours or less
during extreme weather, in any given year. The traditional approach
would be construction of a multi-million dollar transmission line.
NWS may be far less expensive and just as reliable.
Example projects: Orcas Island (conservation while replacing
damaged underwater cable) and Puget Reinforcement Project
(conservation plus series capacitors, etc. that avoided voltage
collapse and delayed construction of new transmission over
Cascades by 10 years)
43
Source: http://transmission.bpa.gov/planproj/Non-Wires_Round_Table/NonWireDocs/NonWiresQuestionsAnswers.pdf
About RAP
The Regulatory Assistance Project (RAP) is a global, non-profit team of experts that
focuses on the long-term economic and environmental sustainability of the power
and natural gas sectors. RAP has deep expertise in regulatory and market policies
that:
Promote economic efficiency
Protect the environment
Ensure system reliability
Allocate system benefits fairly among all consumers

Learn more about RAP at www.raponline.org
Lisa Schwartz, Senior Associate
lschwartz@raponline.org
802-498-0723 (0); 541-990-9526 (m)
Additional Slides
45
46
The Grid Is Weakest Where Wind and
Solar Resources Are Best
Source of maps: NREL, Platts
2022 WECC Regional Transmission Plan
High DSM Case Energy Efficiency
47
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
E
n
e
r
g
y

o
r

P
e
a
k

D
e
m
a
n
d
WECC Common Case
All Cost
Effective EE
High DSM/DG Case
Balancing Authority Load
Forecast Submitted to WECC
Embedded Savings from EE Policies
& Programs (2011-2021)
Expected EE
Savings from
Current
Policies &
Programs
(2011-2021)
Overview of RTEP Process
48
Stakeholder
Requests
(Open Season)
Study Program
Development
(Study Plan)
Scenario
Development
(SPSG)
Create Study
Cases
Analysis
Reporting &
Creation of
Plan(s)
Review and
Public Comment
Process
Scenario
Analysis Meets
Strategic
Guidance
YES
Decision Body
Scenario Planning Steering Group
TEPPC
WECC Board
TEPPC Workgroup Consensus
Public
NO
Approval of
Plan(s)
Publish
Report and
Plan(s)
YES
NO
All meetings are noticed and open to the public.
The small boxes represent opportunities for stakeholders to be
directly involved in planning processes. Diagram does not show
multiple feedback loops during process.
TEPPC Workgroup activities are open to all and decisions are made
by consensus. It is at these meetings where many of the details of
the planning process are decided.
Recommend
Approval
PDCI
COI
MT - NW
WREZs of Common Interest to Utilities
50
AZ_NE PG&E, APS, SRP
AZ_NW PG&E, APS, TEP
CA_SO PG&E, SCE, SDG&E, IID, APS, SRP
ID_EA PacifiCorp, EWEB, Seattle, Idaho Power
ID_SW EWEB, Avista, Seattle, Idaho Power
NM_EA APS, PSNM, El Paso, Tri-State
NV_NO* PG&E, SMUD, IPCo
NV_SW* PG&E, SRP
OR_NE PG&E, PacifiCorp, PGE, EWEB, Avista, IPCo
OR_SO PG&E, SMUD, EWEB
OR_WE PG&E, SMUD, PGE, EWEB, Seattle, Tacoma
UT_WE PacifiCorp
WA_SO PacifiCorp, PGE, EWEB, Avista, PSE, Seattle, Tacoma
WY_EA Tri-State, CSU, PacifiCorp
WY_EC CSU, PacifiCorp
WY_SO Tri-State, CSU, PacifiCorp
*Zones identified by WREZ model including NV_NO and NV_SW generally are
consistent with NV Energys viewpoint. Long-term contracts tend to gravitate toward
in-state resources, but the utility also seeks offers from out-of-state projects.
2012 National Electric Transmission
Congestion Study
Required every three years by Energy Policy Act of
2005. Target publication date not set yet, but will be
released in 2012.
Four regional workshops held in December; analysts
are now combing through regional source material
(RTO/ISO planning studies, state-of-market reports,
state energy plans, etc.)
DOE will issue 2012 study in draft form, take and
consider comments, reissue in final.
After considering comments and completing the
study, the Secretary may designate one or more
National Corridors not required by law to do so.
Coordination of Federal
Transmission Permitting
Section 216(h) of the Federal Power Act,
created by EPACT 2005 designated DOE
as the lead agency to conduct NEPA
review for transmission lines requiring
multiple Federal Permits
MOU signed by 9 Federal Agencies in
October of 2009 to execute section
216(h).

Nine Agency MOU
Mandated by section 216(h)(7)(B)(i) of the Federal
Power Act.
Establishes the roles and responsibilities of the
nine signatory agencies regarding electric
transmission infrastructure project applications
Provides single point of contact for coordinating all
federal authorizations required to locate electric
transmission facilities on federal land
Establishes DOE (under authority pursuant to
section 216(h) of the FPA) as lead agency for
coordinating all federal authorizations and related
environmental reviews.

DOE MOU Responsibilities
Designate lead federal agency for NEPA
compliance
Provide expertise in determining Qualifying
Projects
Provide technical assistance in evaluating
transmission proposals
Assist lead agency in developing the
schedule and approve schedule deviations
Maintain publicly available project tracking
website and links to information from all
participating and cooperating agencies.
www.doe-etrans.us

Rapid Response Team for
Transmission (RRTT)
Builds upon the MOU and the August 31, 2011,
Presidential Memorandum on Speeding Infrastructure
Development through More Efficient and Effective
Permitting and Environmental Review.
RRTT aims to improve the overall quality and timeliness
of electric transmission infrastructure permitting, review,
and consultation by the Federal govt on both Federal
and nonFederal lands.
RRTT first steps.
Selection of Seven Pilot Projects identified through ARRA-
funded, independent, broad stakeholder processes led by
WECC and EISPC.
DOE development of electronic dashboard to track pilot
projects.
www.doe-etrans.us