March 14, 2008

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WestConnect Subregional Planning Update

Jerry D. SmithWestConnect Planning Manager

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WestConnect Subregional Planning Groups

ColoradoCoordinated

PlanningGroup

SouthwestArea

Transmission

CCPGCCPG

SWATSWAT

SIERRASIERRANew Area ?

CCPG and SWAT act as WestConnect technical planning work groups for WestConnect planning area•Coordinate Base Cases for use by all study participants

•Define subregional study plans, provide study resources, and perform studies

•Provide forum for coordination and peer review of planning studies and 10-year plans

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2007 WestConnectSubregional Planning Participants

13 WestConnect Project Agreement for Subregional Transmission Planning Members

15 Other Participating Utilities

15 Governmental Entities

29 At large Industry Participants

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Status of WestConnectSubregional Planning Process

2007 Planning Cycle concluded – Annual Planning Meeting 1/17/08– Ten Year Plan and Planning Report approved

by Planning Mgmt Comm / Steering Comm

2008 Planning Cycle has commenced– 2013 & 2018 Base Case being coordinated– Annual Adequacy Study of Plan this summer– Biennial Long Range Study conclude in 2009– SWAT and CCPG will oversee Other Studies

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Jun Jul Aug Sep Oct Nov DecJan Feb Mar Apr MaySep Oct Nov Dec Jan Feb Mar Apr

Database Preparation

Request WindowStudy Plan Development

Study Execution

Analysis

Report PreparationReport Approvals

Historical Data Analysis

2007 2008 2009

2008 Synchronized Study Plan

TEPPC

WESTCONNECT

BASE CASE 2013 & 2018

EXHIBIT 5

EXHIBIT 9

EXHIBIT 10

EXHIBIT 12

EXIHIBIT 13

NREL STUDY

SCWG

SUBREGIONAL PLANING GROUPS

NREL

SCWG

CRT

AZNM

CCPG

SPPG

SATS

ADEQUACY STUDY

BIENNIAL L. R. STUDY

CATS-EHV

CATS-HV

TO BE DETERMINED

NM STUDY GRP

Request Window

Report Preparation

EXHIBIT 4

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WestConnect Annual Adequacy Study

Purpose – test the adequacy of most recently published WestConnect Transmission Plan (excluding conceptual projects)

A WestConnect-wide study utilizing the 5th and 10th year coordinated base cases

Perform traditional N-0, N-1 and N-2 contingency outagesEstablish reliability risk of potential corridor outages with

planned transmission projects in 10th yearComplete studies by August joint CCPG/SWAT meeting Deficiencies in plan noted with sufficient lead time for

subregional planning participants to investigate solutions for inclusion in the 2008 WestConnect Transmission Plan

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WestConnect Biennial Long Range Study

Purpose – Biennially explore conceptual long range transmission needs within WestConnect Planning Area.

A Westconnect –wide study of contemporary issues facing the industry in the 10th year and beyond.

Utilizes the 10th year coordinated base case with load forecasts and generation scenarios representative of the study time period. Study limited to power flow and only considers N-1 outages.

Initial study has two fold objective:– Provide traditional transmission reliability oriented studies in

response to the TEPPC economic transmission study results,

– Study WestConnect-wide integration of renewable energy projects

Complete initial study in 2009

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Colorado Energy Resource Zones

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Stage 5+Integration with High Plains Express

WillardWillardWillard

Ft. CraigFt. CraigFt. Craig

BABABA

BelenBelenBelen

GladstoneGladstoneGladstone

VL TapVL TapVL Tap

Total WindGuadalupe/Willard/Duran:

> 4000 MW (?)

• Build HPX 500 kV lines (may not need two circuits from Guadalupe to Ft Craig)

• Install 500/230 kV transformer at Gladstone• Install 500/345 kV transformer at Guadalupe• Install 500/345 kV transformer Ft Craig• Install 500/345 kV transformer at Duran

100

200

DuranDuranDuran

>1000

250

>1000

150

400

Existing 345 kV line

New station

Existing station

Proposed wind project

Existing or committed wind project

Existing 115 kV line

New 345 kV line

1200

NM Wind Collector System Integrated with HPX

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Conceptual Transmission for Renewables

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2008-2017 Plan Summary

Type Project

No. Projects

Total

MilesEstimated Cost

(2008 $M)

Planned 106 4,636 6,969

Conceptual 22 4,256 6,204

TOTAL 128 8,892 $ 13,173

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2008-2017 Plan Cost

Figure 2 – Cost Distribution by Voltage Class

Estimated Cost Breakdown by Voltage Class

77%

5%

15%3%

500 kV 345 kV 230 kV Below 230 kV

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Planned Projects by Year

WestConnect Planned Transmission Projects and Transmission Investment by Year

0

5

10

15

20

25

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 orTBD

In-Service Date

Nu

mb

er

of

Pro

ject

s

$0

$500

$1,000

$1,500

$2,000

$2,500

Mill

ion

s (2

00

8 D

olla

rs)

Number of Planned Projects Estimated Cost (2008 Dollars)

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Conceptual Projects by Year

WestConnect Conceptual Transmission Projects and Transmission Investment by Year

0

1

2

3

4

5

6

7

8

2011 2012 2013 2014 2015 2016 2017 2018 orTBD

In-Service Date

Nu

mb

er

of

Pro

ject

s

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

Mill

ion

s (2

00

8 D

olla

rs)

Number of Conceptual Projects Estimated Cost (2008 Dollars)

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Planned Projects by State

StateNo.

ProjectsTotal

MilesEstimated Cost

(2008 $M)

Arizona 66 1,403 2,331

California 10 759 1,593

Colorado 16 1,892 2,016

Nevada 5 415 864

New Mex. 4 117 141

Texas 5 50 24

Multi-State 0 0 0

TOTAL 106 4,636 $ 6,969

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Conceptual Projects by State

StateNo.

ProjectsTotal

MilesEstimated Cost

(2008 $M)

Arizona 15 286 185

California 1 18 27

Colorado 0 0 0

Nevada 1 31 70

New Mex. 2 71 122

Texas 0 0 0

Multi-State 3 3,850 5,800

TOTAL 22 4,256 $ 6,204