WECC PCC Meeting

1. WECC PCC Meeting Salt Lake City, UT July 16, 2014

2. 2014-2015 Regional Transmission Plan Timeline June 11 (Boise, ID) Q2 public meeting to present Draft Biennial Study Plan to stakeholders and discuss updates on FERC Orders January 2 Regional Transmission Plan (RTP) Data Gathering and Economic Study Request (ESR) Window Opens January 31 1st Data Submission Deadline (NTTG Footprint requirements) May 15 Draft Study Plan, including cost allocation scenarios, March 30 and 31 2nd Data Submission Deadline (ESR’s and project and cost allocation data) Q1 - 2014 Q2 - 2014 February 28(Folsom, CA) Interregional information exchange June 1 Regional Economic Study Plan developed June 24(SLC, UT) Steering Committee meeting approved Draft Biennial Study Plan January 22(Portland, OR) Q1 public meeting to discuss NTTG Regional Order 1000 RTP and ESR Process April 15 Deadline to cure Q1 data submission deficiencies Draft Schedule - subject to change

3. 2014-2015 Regional Transmission Plan Timeline Q5 Planning Committee facilitates stakeholder review and comment on the Draft RTP Plus Q5 ESR deliverables September 16 (Location: TBD) Q3 public meeting to discuss development of the RTP, updates on FERC Orders, and Economic Study Results December 2 (SLC, UT) Q4 public meeting to present status report on development of RTP and receive comments Q7 Draft Final Regional Transmission Plan Review Plus Q6 ESR deliverables Q3-Q4: 2014 12 Q5-Q8: 2015 September 30 Regional Economic Study Complete; or Sponsor notified with explanation and estimated completion date Q6 Cost Allocation Committee allocates costs of projects selected into the draft RTP. Draft Final Regional Transmission Plan Produced, Plus Q7 ESR Deliverables Q8 Regional Transmission Plan Approval Plus Q8 ESR Deliverables December 31 Planning Committee produces a Draft Regional Transmission Plan, including Economic Study Results Draft Schedule - subject to change

4. Study Assumptions • Loads forecasted for Balancing Areas internal to the NTTG footprint • Resources projected for Balancing Areas within NTTG footprint • Transmission Projects • Full Funder Local Transmission Plan, Sponsored Project, Unsponsored Project, or Merchant Transmission Developer • A listing of applicable Public Policy Requirements for the NTTG footprint is included in Study Plan - Attachment 1

5. Balancing Area Loads

6. Resource Changes

7. Resource Additions

8. Transmission Additions

9. Analysis Method • Base cases will be developed using a production cost model to determine the hours when load and resource conditions are likely to stress the NTTG transmission system • Power flow analysis of the Initial Regional Plan for the chosen hours will check compliance with the system performance requirements and transmission needs associated with Public Policy Requirements

10. Alternative Analysis • Change Cases will be developed by replacing one or more uncommitted projects in the Initial Regional Plan with an Alternative Project that may meet the transmission need • Power flow analysis of the Change Case for the chosen hours will check compliance with the system performance requirements and transmission needs associated with Public Policy Requirements

11. Selection of Projects into the Plan • Projects that are more efficient or cost effective will be selected into the Regional Transmission Plan use the following metrices: • Capital cost • Energy Losses • Reserves

12. Capital Cost Validation • The TEPPC Transmission Capital Cost Calculator (MS Excel spreadsheet) will be used to validate submitted project costs • If the submitted costs vary from the Calculator output by 20%, the Project Sponsor will be contacted to resolved differences • If the difference cannot be resolved, the TWG will determine the appropriate cost to apply

13. Energy Losses Analysis • Power flow software will be used to compare losses before and after a project is added to the system. A reduction in losses after a project is added represents the benefit. The energy loss valuation will be based on average energy price for the study year

14. Reserves Analysis • Evaluate a number of capacity sharing opportunities among the various combinations of Balancing Areas • The reserve metric will be accessed on a Balancing Area basis and is based on the incremental load and generation submitted by Transmission Providers • The calculation will be performed using a spreadsheet which will consider the savings between each Balancing Area providing its own incremental reserve requirement and a combination of balancing areas sharing a reserve resource facilitated by uncommitted transmission capacity

15. System Conditions to Study • Using the TEPPC 2024 common case production cost model with the GridView production cost software, the TWG will identify the hourly data for several system conditions, such as: • peak coincident NTTG summer load condition; • peak coincident NTTG winter load condition; • conditions with maximum coincident NTTG net export; • conditions with minimum coincident NTTG export; and • additional system conditions as needed to meet the needs of specific areas of the NTTG footprint

16. Common Case Transmission Assumptions

17. Impacts on Neighboring Regions • Will monitor the BES voltage and thermal loading in ColumbiaGrid, WestConnect and CAISO to identify potential violations of NERC, WECC or neighboring planning regions system performance criteria • Will coordinate with the affected planning region to verify results and, if necessary, identify potential mitigation of violations within NTTG or the impacted region

18. Cost Allocation Scenarios • The Cost Allocation Committee, with stakeholder inputs, will evaluate allocation scenarios for those parameters that will likely affect the amount of total benefits and their distribution among Beneficiaries • To the extent feasible, the Cost Allocation Committee will look to the data underlying local transmission plans, integrated resource planning studies of LSEs within the NTTG footprint, the assumptions and the forecasts used to develop the alternative scenarios for each allocation metric

19. Robustness of Initial Regional Plan • The robustness analysis will use power flow analysis and input from production cost analysis as needed to test whether or not the 2024 Draft Regional Transmission Plan transmission system performance will remain acceptable assuming deviations from the base case assumption • The TWG will use its discretion to define the deviations from base case assumptions to test and may draw on assumptions used in change cases or allocation scenarios and will seek input from stakeholders through the Planning Committee

20. Public Policy Considerations Scenario • The Planning Committee should proceed only with the proposal from RNP to retire Colstrip units 1 and 2 and replace with Montana wind resources in 2020 • The RNP proposal to study the effects of retiring Colstrip Units 1, 2, 3 and 4 in 2027 are beyond the NTTG 10 year planning horizon and outside the scope of the Regional Planning Cycle • The Northwest Energy Coalition request has already been studied by the WECC Transmission Expansion Planning Policy Committee (TEPPC) • Since NTTG would use the same base case (as proposed by the submitter) and the same modeling techniques, different results would not be expected

21. Questions?