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Priority Project Update

Priority Project Update. Bruce Rew Vice President, Engineering. Priority Project Overview. Commitments to Construct have been received from all Transmission Owners Westar Energy, Mid-Kansas Electric Co., and Sunflower Electric Power Corp. propose Novation to Prairie Wind and ITC Great Plains

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Priority Project Update

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  1. Priority Project Update Bruce Rew Vice President, Engineering

  2. Priority Project Overview • Commitments to Construct have been received from all Transmission Owners • Westar Energy, Mid-Kansas Electric Co., and Sunflower Electric Power Corp. propose Novation to Prairie Wind and ITC Great Plains • Routing changes surrounding Medicine Lodge • Environmental/ Right-of Way issues • Cost Estimate changes • Multiple causes, including re-routing, reactive support, and refining project scope within shared projects

  3. Nebraska City - Maryville - Sibley • KCPL GMO and OPPD Project Updates • Added reactive support to updated project estimates • Addition of reactive support has caused increase in cost for both KCPL GMO and OPPD • KCPL GMO forecasted contingency for higher labor, material, equipment costs • Estimates are preliminary due to limited design work, siting and procurement activities • OPPD has refined project scope and updated project estimates • Uncertainty of line route and river crossing/ROW issues increases cost estimate

  4. Hitchland - Woodward • OGE and SPS Project Updates • SPS and OGE divided construction at approximately 30 miles for SPS, 90 miles for OGE • Original OGE estimate contained total 120 miles of project • SPS estimate lower than original OGE estimate for their 30 mile section • SPS estimates are preliminary • Limited experience in double circuit 345kV construction

  5. Woodward - Comanche County/Medicine Lodge • MKEC and OGE Project Updates • Routing Changes due to environmental concerns • Woodward line proposed to terminate at Medicine Lodge instead of Comanche County • Line to move eastward and increase by approximately 40 miles • Additional line length causes significant cost increase • Proposed Novation of portions of project to Prairie Wind and ITC Great Plains • Prairie Wind will be involved in line construction, ITC Great Plains for substation

  6. Spearville - Comanche County - Medicine Lodge - Wichita • MKEC, SUNC, and WR Project Updates • Proposed Novation of portions of project to ITC Great Plains and Prairie Wind • Added reactive support to project estimates • ITC GP Substation costs increased with new reactive compensation • ITC GP still optimizing studies • Routing changes for new substation in Wichita • Prairie Wind estimates additional 5 miles of line to substation • Increased cost for additional line and substation

  7. Priority Projects Unchanged • NW Texarkana – Valliant • No changes proposed by AEP • Tulsa Reactor • No changes proposed by AEP

  8. Project Cost Summary

  9. Updated B/C Ratio • Original cumulative B/C = 1.78 • Based on new cost estimates, Cumulative B/C = 1.58

  10. Transmission Owner Cost Changes

  11. Bruce RewVice President, Engineering501-614-3214brew@spp.org

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