Office of Indian Energy Policy and Programs

1. Office of Indian Energy Policy and Programs 2013 Tribal Webinar Series Conducting Transmission Feasibility and System Impact Studies July 31, 2013 11:00 am – 12:30 PM

2. Today’s Presenters • Randy Manion Manion@wapa.gov • Pilar Thomas Pilar.Thomas@hq.doe.gov • Ed Weber Edward.Weber@hdrinc.com • Gayle Nansel Nansel@wapa.gov • Bob Easton aeaston@wapa.gov

3. Power Project Evaluation Studies Ed Weber Sr. Technical Advisor July 31, 2013

4. Today’s Topics • Introduction and Remarks • A Bit of History – FERC Orders • Types of Preliminary Studies

5. Transmission System Circa 1992 • Generation Expansion the duty of Utility • New transmission rate-based with new generation • Midwest had lowest electric rates • FERC approved Wholesale Rates • Reliable Service to Load is Goal • Most studies to Meet Load Growth

6. Fast Forward to 2012 – Post FERC Orders • Power bought and sold on the open Market • Host of new Power Supply Companies – ENRON • PJM, NYISO, NEISO are major players in region • Mirant, NRG, AEP, PSEG, PPL, Gen Owners • Transmission Service Agreements to move power • Two Kinds of Transmission Service – Network/PT • Power Prices at Market Rates -- very volatile • Markets Are Maturing throughout the country • Still Have Areas without Markets – NW and SE

7. Where Are We Today ? • Economy is Recovering – Load Growth in Certain Areas • Lower Demand Means Lower Power Prices • New Capacity Added is Mostly Gas/Renewable • Coal Plant Retirements Will Increase • MACT/CSAPR Rules • After Surge in 2006-8,Wind has Slowed • Solar has Grown – Both are Needed • New Transmission to Integrate Renewable • Commercial Transmission Projects Proposed Nationwide

8. Why Are New Projects Built ??? • Reliability ! • Renewables • Wind, Solar,Geothermal • New Gas CT’s • Economics

9. New Projects Face Challenges !! • Reliability of Supply – Surprised ? • New Gen and Trans Needed for Load Growth in Some Areas • Must Accommodate Many New Renewables at Remote Sites • Environmental Opposition • EPA Rules – Carrot or Stick ? • Financing • Local Permitting

10. ProjectDevelopment • New Generation Not Located Near Load Centers • What are Best Sites and Why ? • How Much do I Need ? • Encourage Joint Planning by Stakeholders • Stakeholders on Face Book • Public Policy Getting New Direction • Costly Alternatives For Supply • Coal Plant Retirements is Major Driver

11. Project Analysis • Where Do I Start ? • Location, Location, Location • Project Parameters • Infrastructure Needed • Timing • Staffing

12. Types of Studies Needed • ROW • Local Land Use Requirements • Land Values – Ownership ? • Environmental Review • Avoidance Areas – E. Species • Archeological and Cultural • Avian Mortality • Wet Lands

13. Types of Studies Needed, Cont’d • Desk Top of Transmission Nearby • Fuel Supply • If Renewable then Supply Profile • Equipment Costs • Preliminary Engineering • Cost Benefit Analysis • How do you Quantify Benefits

14. Where We Are Going – My Two Cents • Economic UP Turn w/ New Load Growth – New Projects • Lower Natural Gas Prices Will Continue • New Gen Capacity Needed Quickly Will Be Gas • Coal Plant Retirements Will Increase • EPA Mandates Will Increase ??? • Wind Development has Slowed – PTC • Solar Development Surged – Costs Down • Solar Land Use Issues How Big Can It Go? • New Transmission to Integrate Renewables • Across the Country We Ask Who Pays ??

15. Tribal Energy Program Webinar Western Area Power Administration Generation Interconnection Process Gayle R. Nansel Manager of Transmission System Planning July 31, 2013

16. Topics • Western Area Power Administration Overview • Interconnection Types • Large Generator Interconnect Procedures (LGIP) • Interconnection Queue • Transmission Constraints • Questions/Comments

17. Western Area Power Administration

18. Upper Great Plains Region

19. Western Area Power Administration Marketing • Long standing mission to market and deliver energy from Federal hydro • Rates are cost-based to repay all associated expenses with interest • Western’s 670 preference customers include municipal utilities, rural electric cooperatives, public utility districts, Federal agencies, State agencies, irrigation districts, and Native American tribes. • Transmission historically limited by Federal statute: • Deliver Federal hydroelectric energy • Provide open access on unused capacity • Until now, no authority to build solely to facilitate other transmission needs

20. Interconnection Types • Generators • Small Generator Interconnection Procedures (under 20MW) • Large Generator Interconnection Procedures (over 20MW) • Load • General Requirements for Interconnection • Transmission

21. Large Generator Interconnection Procedures (LGIP) • For Generating Facilities > 20 MW • Application • Completed Application (LGIP Appendix 1) • $10,000 deposit • Demonstration of Site Control or a posting of an additional deposit of $10,000

22. LGIP – Interconnection Feasibility Study (FS) • Preliminary evaluate the feasibility of the proposed interconnection to the Transmission System. • Power flow and short circuit analysis. • Can reduce up to 60% • Interconnection Feasibility Study Agreement (LGIP Appendix 2) • Agreement must be executed and delivered along with deposit (typically $10,000 to $30,000) no later than 30 Calendar Days after its receipt.

23. LGIP - Interconnection System Impact Study (SIS) • Evaluate the impact of the proposed interconnection on the reliability of the Transmission System. • Short circuit analysis, a stability analysis, and a power flow analysis. • Provides a list of facilities that are required as a result of the Interconnection Request and a good faith estimate of cost responsibility and a non-binding good faith estimated time to construct. • Can reduce up to 15%.

24. LGIP SIS Continued • Interconnection System Impact Study Agreement (LGIP Appendix 3) • Agreement must be executed and delivered along with demonstration of Site Control and a deposit (typically $50,000 to $90,000) no later than 30 Calendar Days after its receipt.

25. LGIP Interconnection Facilities Study (IFS) • Specify and estimate the cost of the equipment, engineering, procurement and construction work needed to implement the conclusions of the Interconnection SIS in accordance with Good Utility Practice to physically and electrically connect the Interconnection Facility to the Transmission system. • Interconnection Facilities Study Agreement (LGIP Appendix 4) • Agreement must be executed and delivered along with the greater of $100,000 or Interconnection Customer’s portion of the estimated monthly cost of conducting the Interconnection Facilities Study.

26. Information Posted • Tariff documents are posted on OASIS at the following URL: http://www.oatioasis.com/WAPA/WAPAdocs/WAPA-Tariff-Docs.htm

27. Interconnection Queue • Queue Position established upon the date and time of receipt of the valid Interconnection Request by the TP, relative to all other pending valid Interconnection Requests. • The Queue Position of each Interconnection Request will be used to determine the cost responsibility for the Upgrades necessary to accommodate the interconnection.

28. Information Posted • Generation Interconnection documents are posted on OASIS at the following URL: • WALC http://www.oasis.oati.com/WALC/WALCdocs/LGI_Queue_07_08_13.pdf • WACM http://www.oasis.oati.com/LAPT/LAPTdocs/RMR_Gen_&_Transmission_Int_Queue_OASIS.xlsx • WASN http://www.oasis.oati.com/WASN/WASNdocs/Copy_of_SNR_Gen_Queue_Update_5-23-13.pdf • WAUW & WAUE http://www.oatioasis.com/WAPA/WAPAdocs/IS-Gen-Int-Queue-Public.pdf

29. Low Overload Transient Voltage Stability Interconnection Studies Studies used to determine…

31. Technical Tariff Request Interconnection PerformStudy Conduct Impact Study Submit ForPeer Review Complete Facility Study Regional Approvals Interconnection Agreement Approved Confirm Interconnect Sequential Process

32. QUESTIONS

33. Future Tribal Energy Program Webinars (all start at 11 am Mountain Time)