FERC and Transmission Siting

1. FERC and Transmission Siting Western Electricity Coordinating Council Annual Meeting April 20, 2006 Robert J. Cupina Deputy Director Office of Energy Projects Federal Energy Regulatory Commission

2. Adequate Infrastructure OEP Effective Market Rules OEMR Market Oversight OMOI FERCHelping Markets Work Competitive Market FERC

3. Transmission Line Capacity 0 - 59 kV 60 - 229 kV ≥ 230kV FERC’sHydropower Projects

4. FERC’s HydroTransmission Lines 5,800 miles of primary transmission line

5. FERC certificatesU.S. interstate natural gas pipelines Source: Based on Platts PowerMap

6. EVERETT COVE POINT ELBA ISLAND LAKE CHARLES ENERGY BRIDGE Existing LNGImport Terminals

7. Existing Gas StorageFacilities Source: Based on Platts PowerMap.

8. Siting Infrastructure:Lessons Learned • Early staff involvement • Proactively identity issues and alternative siting • Develop advocates not adversaries • Expertise to provide a sound record • Recommendations based on technical analysis

9. Energy Policy Actof 2005 • EPAct 2005 provides for federal siting of interstate electric transmission facilities (§1221) by amending the FPA (§216) - Designation of National Interest Electric Transmission Corridors (§216(a)) - Construction Permit (§216(b)) - Coordination of Federal Authorizations for Transmission Facilities (§216(h))

10. EPAct 2005Electric Transmission Corridors • Conduct study within one year of electric transmission congestion • Every three years thereafter • Issue report based on study • Designate any geographic area that experiences congestion as a “National Interest Electric Transmission Corridor”

11. EPAct 2005Construction Permit • FERC can authorize construction of transmission facilities in a corridor if: • A state has no authority to either site facilities or consider interstate benefits, or • A state, with authority to site, either does not act within one year or conditions approval such that there is either no reduction in congestion or is not economically feasible

12. EPAct 2005Construction Permit • Application to be filed with FERC • Filing requirements to be issued • Comments will be received • Rights-of-way • Right of eminent domain • Acquired right-of-way used exclusively for electric transmission facilities • Compensation

13. EPAct 2005Coordination of Federal Authorizations • Lead agency for permit coordination and environmental review • Must issue regulations within 18 months • Must enter into an MOU with other agencies within one year • Provide a pre-filing mechanism • All permit decisions and environmental reviews shall be completed within one year • Failure to act within deadlines may be appealed to the President • DOE delegation to FERC likely

14. FERC Major Pipeline Projects Certificated (MMcf/d)2000 to Present 1. Algonquin (285) 2. Islander East (285) 3. Iroquois (230,85) 4. Columbia (135,270) 5. Algonquin (140) 6. Transcontinental (105) 7. Transcontinental (130) 8. Tennessee (200) 9. Maritimes (80,360) 10. Algonquin (301) 11. Tennessee (500) 12. Mill River (800) Georgia Straits (96) 13. CIG (282,92) 14. CIG (85,133,118,105) 15. TransColorado (125,300) 16. WIC (120,116,675,350) 17. El Paso (140) 18. Rendezvous (300) 19. Entrega (1,500) GTN (207) Northwest (162,113) Northern Border (544,130) Guardian (750) Northwest (224) WBI (80) ANR (194,750,210,220, 107,143,168) Millenium (700) 9 8 12 1 10 5 Northwest (191) Tuscarora (96) 18 Horizon (380) 2 7 NFS/DTI (150) 19 3 Trailblazer (324) 6 11 16 Questar (272,102) TETCO (223) Independence (916) 4 14 TETCO (250) 8 6 13 Columbia (172) 15 Cove Point (445) Kern River (135,886) Midwestern (120) Cheyenne Plains (560,170) Greenbrier (584) 17 East Tennessee (235) East Tennessee (510) East Tennessee (86) Kern River (282) Center Point (113) Southern Trails (120) East Tennessee (170) Transco (204,236,323) Transwestern (150,375) El Paso (502) TETCO (197) Trans Union (430) Otay Mesa (110) SCG Pipeline (190) North Baja (500) El Paso (230,320,620) Petal (700,600) Southern (336,330) Discovery (150) Trunkline (200) Florida Gas (239,270) Tennessee (400,200) Dominion South (200) San Patricio (1,000) Trunkline(1,500) Calypso (832) Golden Pass (2,000) 42.5 BCF/D Total 8,537 Miles Gulfstream (1,130) Ocean Express (842) Cheniere Sabine (2,600) Tennessee (320) Cheniere Corpus Christi (2,600) Vista del Sol (1,100) 14 Office of Energy Projects

15. Beacon Rathdrum Oxbow Brownlee Ontario Caldwell Paddock New Haven Habor Wempletown Shoreham Sayreville Tap of Stuart/ W H Zimmer Newbridge Road Lamar Holcomb Spurlock Fentress Chamber Springs Road Shawboro Clarksville Tenaska Mt. Enterprise Transmission Projects Transmission Projects 345 kV 345 kV 230 kV 230 kV DC Major ElectricTransmission Lines2000 to Present Since January 1, 2000, 11 interstate transmission lines have been built or are near completion totaling 461 miles. Sources: NERC Summer and Winter Assessments, WECC Existing Generation and Significant Additions and Changes to System Facilities Reports and FERC’s Transmission Database

16. Related Proceedings • Transmission Investment Pricing Reform • RM06-04 • NOPR issued November 18, 2005 • Comments due January 11, 2006 • 109 comments filed • Final rule due in one year (August 2006) • DOE’s National Interest Electric Transmission Corridor Study • NOI issued February 2, 2006 • Conference held March 29, 2006

17. Issues forElectric Transmission • Clear Regulatory Path • Contract Commitment • Pricing Incentives/Cost Allocation • Market Response - Timing

18. What Will MakeThis Work • FERC staff involvement as early as possible • Develop a pre-filing process • Start with two points and work the route • Voluntary agency enlistment • Rational Siting Process • One federal lead agency, one record for decisions, one avenue of appeal