american electric power (aep) - eei - · pdf file2 edison electric institute transmission...

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EDISON ELECTRIC INSTITUTE 1 AMERICAN ELECTRIC POWER (AEP) Company Background: AEP is one of the largest electric utilities in the United States, delivering electricity to more than five million customers in 11 states. AEP’s service territory covers 197,500 square-miles in Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia. System-wide there are more than 39,000 circuit miles of transmission lines, including over 2,100 circuit miles of 765 kV transmission. Customer service is provided through AEP’s seven regional utilities: AEP Ohio; AEP Texas; Appalachian Power; Indiana Michigan Power; Kentucky Power; Public Service Company of Oklahoma; and Southwestern Electric Power Company. AEP is continuing its efforts to develop an extra high-voltage (EHV) interstate transmission superhighway. In furtherance of this effort, AEP has formed joint ventures with several utilities to build transmission in regions across the country: Potomac - Appalachian Transmission Highline, LLC (PATH): A joint venture with Allegheny Energy, Inc. to build a 765 kV transmission line within PJM extending from West Virginia to Maryland; Electric Transmission Texas, LLC (ETT): A joint venture with a subsidiary of MidAmerican Energy Holdings Company established to invest in transmission within the Electric Reliability Council of Texas (ERCOT); Electric Transmission America, LLC (ETA): A second joint venture with a subsidiary of MidAmerican Energy Holdings Company to identify and invest in high-voltage transmission projects (345 kV or higher) located in North America outside of ERCOT. ETA has established joint ventures with Westar Energy and Oklahoma Gas and Electric Company (OG&E) to build EHV transmission in the Southwest Power Pool (SPP); and Pioneer Transmission, LLC: AEP and Duke Energy formed a joint venture to build a 765 kV transmission line in Indiana. Between 2001 and 2009 AEP has invested approximately $3.3 billion into its transmission system. Transmission Related Smart Grid Initiatives: AEP’s gridSMART initiative is a suite of customer programs and advanced technologies designed to transport utilities into a new era of energy delivery and customer services. It includes customer programs, new energy delivery system technologies, local generation and storage devices and AEP internal system efficiencies. The Presidio Battery Project is just one example of AEP’s gridSMART program. This initiative is a multi-year effort to transform energy delivery and customer service.

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Page 1: AMERICAN ELECTRIC POWER (AEP) - EEI -  · PDF file2 EDISON ELECTRIC INSTITUTE TRANSMISSION PROJECTS: AT A GLANCE — AMERICAN ELECTRIC POwER (AEP) Pioneer Transmission, LLC

EDISON ELECTRIC INSTITUTE 1

AMERICAN ELECTRIC POWER (AEP)Company Background:

• AEP is one of the largest electric utilities in the United States, delivering electricity to more than five million customers in 11 states.

• AEP’s service territory covers 197,500 square-miles in Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia.

• System-wide there are more than 39,000 circuit miles of transmission lines, including over 2,100 circuit miles of 765 kV transmission.

• Customer service is provided through AEP’s seven regional utilities: AEP Ohio; AEP Texas; Appalachian Power; Indiana Michigan Power; Kentucky Power; Public Service Company of Oklahoma; and Southwestern Electric Power Company.

• AEP is continuing its efforts to develop an extra high-voltage (EHV) interstate transmission superhighway. In furtherance of this effort, AEP has formed joint ventures with several utilities to build transmission in regions across the country:

• Potomac - Appalachian Transmission Highline, LLC (PATH): A joint venture with Allegheny Energy, Inc. to build a 765 kV transmission line within PJM extending from West Virginia to Maryland;

• Electric Transmission Texas, LLC (ETT): A joint venture with a subsidiary of MidAmerican Energy Holdings Company established to invest in transmission within the Electric Reliability Council of Texas (ERCOT);

• Electric Transmission America, LLC (ETA): A second joint venture with a subsidiary of MidAmerican Energy Holdings Company to identify and invest in high-voltage transmission projects (345 kV or higher) located in North America outside of ERCOT. ETA has established joint ventures with Westar Energy and Oklahoma Gas and Electric Company (OG&E) to build EHV transmission in the Southwest Power Pool (SPP); and

• Pioneer Transmission, LLC: AEP and Duke Energy formed a joint venture to build a 765 kV transmission line in Indiana.

• Between 2001 and 2009 AEP has invested approximately $3.3 billion into its transmission system.

Transmission Related Smart Grid Initiatives:

• AEP’s gridSMART initiative is a suite of customer programs and advanced technologies designed to transport utilities into a new era of energy delivery and customer services. It includes customer programs, new energy delivery system technologies, local generation and storage devices and AEP internal system efficiencies. The Presidio Battery Project is just one example of AEP’s gridSMART program. This initiative is a multi-year effort to transform energy delivery and customer service.

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TRANSMISSION PROJECTS: AT A GLANCE — AMERICAN ELECTRIC POwER (AEP)

Pioneer Transmission, LLCProject Description: The Pioneer Transmission, LLC project consists of approximately 180 miles of new 765 kV transmission line linking Duke Energy’s Greentown Station (near Kokomo, Indiana) to AEP’s Meadow Lake Sta-tion (near Lafayette, Indiana and the Meadow Lake Wind Farm). The 765 kV line will then head south to AEP’s Sul-livan Station. Future expansion possibilities include another line from Rockport Station through Edwardsport Station to Sullivan Station.

Project Cost: Approximately $600 million (Up to $1 billion with expansion).

Project Status: The project is currently under evaluation by the Midwest Independent System Operator’s (MISO) as a new Multi-Value Project (MVP). Decisions regarding ap-proval are expected in mid-2011. The anticipated in service date is 2015.

Project Investment Partners: Duke Energy.

Project Benefits: This project will mitigate thermal and voltage concerns, reduce transmission conges-tion and losses, and will add substantial transmission capacity to support both renewable and con-ventional generation development in Indiana, the MISO and PJM. The project has been a key line in several interregional planning studies, including the SMARTransmission Study (sponsored by ETA and several Midwest utilities) and MISO’s Regional Generator Outlet (RGOS) study.

Prairie Wind Transmission, LLCProject Description: The Prairie Wind Trans-mission, LLC project consists of approximately 105 miles of new double-circuit, EHV, 345 kV transmission line linking a 345 kV substation near Wichita, Kansas to a new 345 kV substa-tion northeast of Medicine Lodge, Kansas (near the Flat Ridge Wind Farm). The line continues south from the wind farm to the Kansas-Okla-homa border. The project may be constructed at 765 kV pending further analysis by SPP. The project is part of the SPP Priority Projects Study and the SPP EHV Overlay Study.

Project Cost: Approximately $225 million at 345 kV and $400 million at 765 kV.

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TRANSMISSION PROJECTS: AT A GLANCE — AMERICAN ELECTRIC POwER (AEP)

Project Status: Prairie Wind Transmission is an approved SPP Priority Project. The decision about which voltage the project will be constructed is expected in January 2011 through the Integrated Transmission Plan (ITP) process. Siting and routing activities have commenced.

Project Investment Partners: ETA and Westar Energy.

Project Benefits: The SPP region has high wind potential and SPP is currently planning for a future 20 percent wind energy penetration for the region. Currently, many wind projects will have difficulty connecting due to lack of available transmission. The Prairie Wind project will provide interconnec-tion for these projects and facilitate regional energy transfers that may result from large-scale wind development. This project, along with additional segments of SPP’s future EHV plans, will provide improved reliability, reduced system losses, reduced transmission congestion for the SPP electric sys-tem while enabling the development of significant sustainable energy for the region.

Tallgrass Transmission, LLCProject Description: The Tallgrass Transmis-sion, LLC project consists of approximately 170 miles of new double-circuit, 345 kV transmis-sion line from the Kansas-Oklahoma border north of Woodward, Oklahoma linking OG&E’s station at Woodward and extending west into the Oklahoma panhandle to a new station near Hitchland, Texas. The project will connect with the proposed Prairie Wind project at the Kansas-Oklahoma border and integrate into the existing 345 kV system at Woodward and Hitchland. Originally proposed at 765 kV, the project is currently approved as a double-circuit 345 kV project but may be constructed at 765 kV pend-ing further analysis by SPP. The project is part of the SPP Priority Projects Study and the SPP EHV Overlay Study.

Project Cost: Approximately $500 million at 765 kV.

Project Status: Tallgrass Transmission is an approved SPP Priority Project. The decision on which voltage the project will be constructed at is expected in January 2011 through the ITP process. Siting and routing activities have commenced.

Project Investment Partners: ETA and OG&E.

Project Benefits: The SPP region has high wind potential and SPP is currently planning for a future 20 percent wind energy penetration for the region. Currently, many wind projects will have difficulty connecting due to lack of available transmission. The Tallgrass project will provide interconnection for these projects and facilitate regional energy transfers that may result from large-scale wind develop-ment. This project, along with additional segments of SPP’s future EHV plans, will provide improved reliability, reduced system losses, reduced transmission congestion for the SPP electric system while enabling the development of significant sustainable energy for the region.

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Electric Transmission Texas (ETT)Presidio Battery Project

Project Description: The town of Presidio is located in far west Texas along the Rio Grande River. The international bridge at Presidio connects the United States and Mexico, and is part of the La Entrada al Pacifico, a route that ex-tends from within Mexico and terminates at Midland-Odessa, where it connects to Interstate 20. The only trans-mission source in the area is a radial 69 kV line extending approximately 60 miles from Marfa to Presidio. The design, physical condition (due to age) and location of the Alamito Creek - Presidio 69 kV line makes it susceptible to frequent outages and long restoration times. It was originally built in 1948 as a 33 kV line and has all wood construction with a #2 ACSR conductor. By installing a 4.8 MW NaS battery, it will be possible to provide a higher level of reliability to the Presidio area loads until a more permanent solution, a new line, can be implemented. The NaS batteries will support the Presidio area voltages with an outage of the Marfa 138 kV source. Also, with the outage of the radial 69 kV line, the NaS will be able to support most of the Presidio area load. NaS batteries are high capacity battery systems that have been developed for electric power applica-tions. A NaS battery consists of liquid sulfur at the positive electrode and liquid sodium at the nega-tive electrode as active materials. Accounting for inverter losses, the complete system should have an efficiency of approximately 75 percent-80 percent. The expected life of the NaS batteries is about 15 years.

Project Cost: The overall project including the replacement line will cost approximately $67 million. The cost of the 4.8 MW NaS battery installation was about $17 million. The addition of the battery will allow deferral of the 69 kV replacement line for two years. The new line cannot relieve immediate reliability issues.

Project Status: The Presidio Battery Project was placed into service on March 31, 2010

Project Investment Partners: Owned by ETT, a joint venture owned by subsidiaries of American Electric Power and MidAmerican Energy Holdings Company.

Project Benefits: The existing service reliability to loads in the Presidio area is very poor. Continued refurbishment of the line will not relieve these problems because the inherent limitations of its design cannot be corrected. The only practical alternative is the complete replacement of the line. In the in-terim, there are significant power quality issues due to the long radial transmission source into Presi-dio. The NaS battery provides improved reliability to the Presidio area loads and allows the 69 kV line replacement to be deferred for two years.

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EDISON ELECTRIC INSTITUTE 5

AMERICAN TRANSMISSION COMPANY (ATC)Company Background:

• ATC started business on January 1, 2001, as the first multi-state, transmission-only utility in the United States. ATC has a single focus: transmission. ATC’s transmission system allows energy producers to transport electric power from where it’s generated to where it’s needed similar to the interstate highway system with high-voltage electricity traveling on the transmission system wires like vehicles on the highway.

• ATC provides electric transmission service in an area from the Upper Peninsula of Michigan, throughout the eastern half of Wisconsin and into portions of Illinois. The 9,400 circuit miles of high-voltage transmission lines and 510 substations provide communities with access to local and regional energy sources.

• ATC operates their $2.5 billion transmission system as a single entity. As a public utility whose infrastructure serves as the link in transporting electricity to millions of electricity users, ATC has duties and responsibilities to:

• Operate the transmission system reliably;

• Assess the ability of the system to adequately meet current and future needs;

• Plan system upgrades to meet those needs in the most efficient, effective and economic ways;

• Construct upgrades in time to meet those needs; and

• Maintain the transmission equipment and surroundings to minimize opportunity for failures.

• Between 2001 and 2009 ATC invested nearly $2.5 billion in its transmission system.

Badger CouleeProject Description: The Badger Coulee project consists of approximately 150 miles of new single-circuit, 345 kV transmission line from La Crosse into the greater Madison area of Wisconsin.

Project Cost: Approximately $425 million.

Project Status: Following public input, ATC ten-tatively plans to file an application with the Public Service Commission of Wisconsin (PSCW) in 2013. If approved by the PSCW, construction on the new line would begin in 2015 to meet an in service date of 2018.

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Project Investment Partners: Potential for cost sharing as a Midwest Independent System Operator (MISO) Multi-Value Project (MVP).

Project Benefits: This project is a multiple benefits project providing economic, reliability and public policy benefits to ATC, its customers and the MISO region. Economic benefits have been observed from several varying futures that were analyzed demonstrating economic benefits in every future. Reliability benefits include second contingency voltage collapse avoidance, single contingency voltage support and thermal relief, improved generation stability response, improved import capability and potential removal of special protection schemes. Public policy benefits include allowing more import of higher capacity wind. All of these benefits have been monetized and the sum of the benefits exceeds the cost of the project in five or six of six futures, depending on cost sharing. MISO regional benefits include providing a regional backbone that can be utilized for allowing additional wind generation resources to be interconnected and delivered to the system.

Barnhart - Branch RiverProject Description: The Barnhart - Branch River project consists of constructing two new 345 kV substations (Barnhart and Branch River) in Wisconsin to provide adequate system stability due to an increase in generation and significant plant modifications at Point Beach Nuclear Plant. Approximately 50 miles of existing single-circuit, 345/138 kV transmission line will be converted to double-circuit, 345 kV transmission line in Manitowoc, Sheboygan and eastern Calumet counties. Ap-proximately 15 miles of new single-circuit, 138 kV transmis-sion line will be constructed in Sheboygan County.

Project Cost: Approximately $175 million.

Project Status: The Generator Interconnection Agreement was executed with MISO and NextEra in July of 2010. A Certificate of Public Convenience and Necessity (CPCN) from the Public Service Commission of Wisconsin (PSCW) is anticipated to be filed in fall 2012. If approved by the PSCW, construction is expected to begin in fall 2016 with an anticipated in service date of 2018.

Project Investment Partners: None.

Project Benefits: This project will address generation instability issues under outage conditions, pro-vide a wider operating envelope for the local transmission system and the interconnected generators by permitting generating unit operation at unity power factor or under-excited conditions, provide improved maintenance and operations flexibility during planned or unplanned transmission outage conditions by tying together critical transmission elements in strategic locations, and relieve loading under base and contingency conditions on the existing 138 kV and 345 kV transmission lines running from Fox Valley area to the south by providing an additional 345 kV transmission outlet.

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EDISON ELECTRIC INSTITUTE 7

TRANSMISSION PROJECTS: AT A GLANCE — AMERICAN TRANSMISSION COMPANy (ATC)

Cranberry - Conover - Plains 138 kV ProjectProject Description: The Cranberry - Conover - Plains 138 kV Project consists of approximately 14 miles of new single-circuit, 138 kV trans-mission line (operated at 115 kV) between the Cranberry and Conover Substations, which was placed in service in 2008. Additionally, the exist-ing 69 kV transmission lines from Conover to Plains (approximately 70 miles) were converted to single-circuit 138 kV operation in 2010.

Project Cost: Approximately $110 million.

Project Status: The Cranberry - Conover - Plains 138 kV Project was placed in service in the spring of 2010.

Project Investment Partners: None.

Project Benefits: This project addresses longer-term reliability issues on a portion of ATC’s transmis-sion system known as the Rhinelander Loop, provides substantial voltage support to the 69 kV system in the western portion of the Upper Peninsula and addresses age and condition issues on the existing 69 kV system in the western Upper Peninsula. This project diversifies the transmission ties between Wisconsin and the Upper Peninsula and also increases the transfer capability between the two states.

Dubuque County - CardinalProject Description: The Dubuque County - Cardinal project consists of approximately 110 miles of new single-circuit, 345 kV transmission line from the Dubuque, Iowa area into Wiscon-sin. The new line will interconnect to a new 345 kV substation in northern Iowa County and con-tinue to the proposed Cardinal 345 kV Substa-tion in the town of Middleton (Dane County).

Project Cost: Approximately $400 million.

Project Status: This project is provisional in sta-tus with a projected in service date of 2020.

Project Investment Partners: Potential for MVP with MISO cost sharing.

Project Benefits: This project is a multiple benefits project providing economic, reliability and public policy benefits to ATC, its customers and the MISO region. Economic benefits have been observed from several varying futures that were analyzed demonstrating economic benefits in every future. Reliability benefits include second contingency voltage collapse avoidance, single contingency voltage

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support and thermal relief, improved generation stability response, improved import capability and potential removal of special protection schemes. Public policy benefits include allowing more import of higher capacity wind. All of these benefits have been monetized and the sum of the benefits exceeds the cost of the project in five or six of six futures, depending on cost sharing. MISO regional benefits include providing a regional backbone that can be utilized for allowing additional wind generation resources to be interconnected and delivered to the system.

Paddock - Rockdale 345 kV ProjectProject Description: The Paddock - Rockdale 345 kV Proj-ect consists of approximately 35 miles of new single-circuit, 345 kV transmission line constructed primarily on an exist-ing transmission line corridor between the Paddock Substa-tion in the town of Beloit and the Rockdale Substation in the town of Christiana in Wisconsin.

Project Cost: Approximately $133 million.

Project Status: The project was placed in service in the spring of 2010.

Project Investment Partners: None.

Project Benefits: This high-voltage transmission line gives local distribution utilities improved access to renewable and to lower cost power from other areas in the region. Wis-consin has only limited transmission line connections to its neighboring states limiting the ability of electric utilities to access wind energy or sources of lower cost electricity from other regions. While this project is largely driven by economics, it also benefits electric consumers with a stronger, more stable electric system. This project assists ATC’s customers that have public plans to meet State Renewable Portfolio Stan-dard (RPS) goals, at least in part through renewable resources outside of the ATC footprint.

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TRANSMISSION PROJECTS: AT A GLANCE — AMERICAN TRANSMISSION COMPANy (ATC)

Pleasant Prairie - Zion Energy CenterProject Description: The Pleasant Prairie - Zion Energy Center project consists of approximately six miles of new single-circuit, 345 kV transmission line from ATC’s Pleas-ant Prairie Substation in Kenosha, Wisconsin to the Zion Energy Center Substation owned by Commonwealth Edison (ComEd) in northern Illinois.

Project Cost: Approximately $25 million.

Project Status: This project is provisional in status. Construc-tion is expected to begin in October 2013 with an anticipated in service date of 2014.

Project Investment Partners: Potential for cost sharing as a MISO MVP project.

Project Benefits: he project is proposed as a MISO MVP because of its contribution in efficiently and effectively moving potential renewable wind energy to points further east in the MISO and PJM footprints and because it provides economic savings. The project shows the capacity to provide potential economic benefits to ATC, its customers, ComEd, and the MISO and PJM regions. Economic benefits have been observed from several varying futures that were analyzed and demonstrate economic benefits that exceed the cost of constructing the 345 kV line in a number of these futures. MISO and PJM regional benefits include providing another intercon-nection point and providing a regional backbone that can help to strengthen ties between the regions and potentially help relieve constraints found in the southeastern Wisconsin area.

Rockdale - West MiddletonProject Description: The Rockdale - West Mid-dleton project consists of approximately 32 miles of new single-circuit, 345 kV transmission line connecting the Rockdale Substation located near Christiana with the West Middleton Substation. Both substations will require some equipment upgrades to support this new line.

Project Cost: Approximately $180 million.

Project Status: This project was approved in the summer of 2009 by the PSCW. Construction is expected to begin in 2011 with an anticipated in service date of June 2013.

Project Investment Partners: None.

Project Benefits: This project will improve reliability for Dane County. In recent years, Dane County

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has experienced some of the highest growth rates in the state, both in population and electricity us-age. The existing transmission system in and around Dane County brings power in from outside the county to meet the needs for electricity. However, the system is operating at its limits and additional transmission lines are needed to keep pace with growing demand.

Smart Grid Investment Grant ProjectsProject Description: The Smart Grid Investment Grant Projects consist of constructing approxi-mately 65 miles of additional fiber optic network on ATC facilities and the installation of 48 Phasor Measurement Unit’s (PMU).

Project Cost: Approximately $25.4 million.

Project Status: ATC has negotiated a contract with the U.S. Department of Energy (DOE) that outlines reporting requirements and benefit documentation, among other metrics; the agreement was signed by the CEO in April 2010. Preliminary design work has started along with procurement of fiber optic communication equipment. The program of work is targeted to be completed by end of 2012.

Project Investment Partners: The U.S. DOE and the Department of Treasury, through the American Recovery and Reinvestment Act (ARRA).

Project Benefits: This project was developed to enhance communication reliability and data gathering capability.

Straits Flow ControlProject Description: The Straits Flow Control project consists of installing flow control devices such as back-to-back HVDC controls connected in series with the Straits - McGulpin 138 kV lines in the eastern portion of the Upper Peninsula of Michigan. This alternative may require the installation of terminal equipment to connect the devices with the 138 kV circuits and provide adequate protection.

Project Cost: Approximately $85 million.

Project Status: Construction is expected to begin in 2012 with an anticipated in service date of August 2014.

Project Investment Partners: Project is being evaluated by MISO for RECB I baseline reliability project cost sharing.

Project Benefits: Power flow control in the eastern Upper Peninsula will adjust flows to more man-ageable levels, reduce system losses, improve power quality and reliability of service for local custom-ers, and maintain reliability during maintenance work. This project is designed to protect the Upper Peninsula system from heavy flows both east to west and west to east as system flows change and new generation is developed in the Lower Peninsula. This project also has the potential to support renew-able energy in the Upper Peninsula.

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ARIZONA PUBLIC SERVICE (APS)Company Background:

• APSdeliverselectricitytomorethanonemillioncustomersin11ofArizona’s15counties.

• System-wide,thereareapproximately2,238circuitmilesof230kVandabovehigh-voltagetransmissionlinesthatAPSeitherwhollyownsorhasapartnershipinterest.

• Between2001and2009APShasinvestedapproximately$989millionintoitstransmissionsystem.

Palo Verde Hub - North Gila 500 kV ProjectProject Description:ThePaloVerdeHub-NorthGila500kVProjectconsistsofapproxi-mately115milesofnewsingle-circuit,500kVtransmissionlinebetweenthePaloVerdeHub(theareaaroundthePaloVerdeNuclearGen-eratingStation)andtheexistingNorthGilaSubstation(northeastofYuma).Thelinewillbebuiltontubularorlatticetowerstructures130-150feethigh,spacedapproximately600-1,800feetapart.

Project Cost:Approximately$300million.

Project Status:TheArizonaCorporationCom-mission(ACC)grantedAPSaCertificateofEnvironmentalCompatibility(CEC)onJanuary23,2008andtheprojecthasananticipatedinservicedateof2014.

Project Investment Partners:SaltRiverProject,ImperialIrrigationDistrictandWeltonMohawkIr-rigationandDrainageDistrict.

Project Benefits:Thisprojectwillprovidetheelectricaltransmissioninfrastructuretoimportpowerintothehigh-growthYumaareafromadditionalgenerationresourcesaroundthePaloVerdeHub.TheprojectwillimprovethereliabilityoftheAPSsystemintheYumaareabyprovidinganadditionalhigh-voltagetransmissionsourcetotheregion.TheprojectwillalsoprovideArizonaloadservingen-titiesaccesstogeothermalandsolarrenewableresourcesintheImperialValleyareaofCalifornia.Theprojectwillalsohelpthedevelopmentofnewsolargenerationlocatedalongthecorridorthathaverequestedinterconnection.

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TRANSMISSION PROJECTS: AT A GLANCE — ARIzONA PUBLIC SERvICE (APS)

Palo Verde Substation - Delany Substation - Sun Valley Substation - Morgan Substa-tion - Pinnacle Peak Substation 500 kV Projects

Project Description: The Palo Verde Substation - Delany Substation - Sun Valley Substation - Morgan Substation - Pinnacle Peak Substation 500 kV Projects consist of approximately 110 miles of new 500 kV transmission line connect-ing southwest Phoenix to northeast Phoenix. The project will consist of four segments: Palo Verde Substation to Delany Substation; Delany Substa-tion to Sun Valley Substation; Sun Valley Substa-tion to Morgan Substation; and Morgan Substa-tion to Pinnacle Peak Substation.

Project Cost: Approximately $700 million.

Project Status: The ACC granted APS a CEC for the Palo Verde Substation to Delany Substation to Sun Valley Substation 500 kV Transmission Project on August 17, 2005. The project is planned to be completed and operational by the summer of 2014. The Sun Valley to Morgan 500 kV Transmission Line Project is anticipated to be in service by 2016. A CEC for the Sun Valley to Morgan Project was granted by the ACC on March 17, 2009. The Morgan to Pinnacle Peak 500/230 kV Transmission Project was placed into service in October 2010 and the ACC granted APS a CEC on February 13, 2007.

Project Investment Partners: Salt River Project and Central Arizona Water Conservation District.

Project Benefits: This project will strengthen the entire Arizona and APS transmission system by providing an additional high-voltage transmission source to the Phoenix Metropolitan area, allow-ing the import of an additional 1,000 MWs of power from generating sources at, or around, the Palo Verde Hub. The project will connect three major transmission systems: the Navajo South system; the Palo Verde system; and the Four Corners system. The project will also strengthen the transmission system throughout the Phoenix Metropolitan area. The project will enable the development of new large-scale solar generation projects in the area.

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BALTIMORE GAS AND ELECTRIC (BGE)Company Background:

• BGE is a wholly owned subsidiary of Constellation Energy Group, Inc. serving 1.2 million customers in a 2,300 square-mile area encompassing Baltimore City and all or part of ten Central Maryland counties.

• BGE is a member of the PJM Interconnection, LLC.

• BGE owns and operates over 1,290 circuit miles of transmission lines.

• Between 2001 and 2009 BGE has invested approximately $276 million into its transmission system.

Coldspring - Erdman 115 kV NetworkProject Description: The Coldspring – Erdman 115 kV Network project consists of a new double-circuit, 115 kV transmission line between the Coldspring and Erdman Substa-tions. BGE will extend the existing 115 kV double-circuit line from the existing Coldspring Station to the downtown Baltimore network circuits at Erdman.

Project Cost: Approximately $140 million.

Project Status: This project was identified during the PJM Regional Transmission Expansion Plan-ning Process (RTEPP). It is still in the planning stages with an anticipated in service date of June 1, 2015.

Project Investment Partners: None.

Project Benefits: This project maintains system reliability by avoiding NERC N-1-1 reliability crite-ria violations.

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TRANSMISSION PROJECTS: AT A GLANCE — BALTIMORE GAS AND ELECTRIC (BGE)

Graceton - Raphael Road 230 kV CircuitProject Description: The Graceton - Raphael Road 230 kV Circuit project consists of rebuilding a single-circuit, 230 kV transmission line into a double-circuit transmission line in two stages: Graceton - Bagley and Bagley - Raphael Rd.

Project Cost: Approximately $75 million.

Project Status: This project is currently in the early stages of engineering and planning. The in service date is anticipated to be June 2014 (Graceton-Bagley) and June 2015 (Bagley-Raphael Rd).

Project Investment Partners: None.

Project Benefits: This project maintains system reliability by avoiding NERC N-1-1 reliability criteria violations.

Emory Grove 500/230 kV StationProject Description: The Emory Grove 500/230 kV Station project consists of constructing the 500/230 kV Emory Grove Station with a 500 kV double-breaker configuration by tapping the Conastone - Brighton 500 kV line and Conas-tone -Northwest 230 kV line. The project also rebuilds the line along the Emory Grove to Northwest circuits to separate pole-lines.

Project Cost: Approximately $71 million.

Project Status: This project was identified during RTEPP. It is still in the planning stages with an anticipated in service date of June 1, 2015.

Project Investment Partners: None.

Project Benefits: This project maintains system reliability by avoiding NERC N-1-1 reliability crite-ria violations.

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CENTERPOINT ENERGY HOUSTON ELECTRICCompany Background:

• CenterPoint Energy’s electric transmission and distribution business serves a 5,000 square-mile area that includes Houston, Texas, the nation’s fourth largest city.

• CenterPoint Energy delivers electricity to more than two million customers in Texas.

• CenterPoint Energy operates over 3,750 circuit miles of transmission lines ranging from 69 kV to 345 kV.

• Between 2001 and 2009 CenterPoint Energy invested approximately $756 million into its transmission system.

Houston Import Project - Fayetteville to Zenith 345 kVProject Description: The Houston Import Project consists of approximately 60 miles of new double-circuit, 345 kV transmission line between the Fayetteville and Zenith Substations. Additional system upgrades are required as part of this new transmission line, including: looping LCRA TSC’s Fayette Power Project to Salem 345 kV line into the Fayetteville 345 kV substa-tion; upgrading LCRA TSC’s Fayette Power Project to Fayetteville 345 kV double-circuit; and upgrading CenterPoint’s Bellaire to Brays to H.O. Clarke Plant 138 kV line terminal equip-ment. This project is being developed to increase the capacity of the Electric Reliability Council of Texas (ERCOT) transmission network to deliver electrical energy into the greater Houston area.

Project Cost: Approximately $175 million.

Project Status: The project proposal was approved by the ERCOT Board of Directors in August 2010 based upon the ERCOT Planning Staff ’s recommendation. The next step in the project is to file an application for a Certificate of Convenience and Necessity (CCN) with the Public Utility Com-mission of Texas (PUCT) in 2011 in order to obtain approval of the project and a route for the trans-mission line. CenterPoint Energy anticipates that the PUCT will issue a final decision on the project in 2012, and if approved, construction is expected to start in July 2013 with an anticipated in service date of December 2014.

Project Investment Partners: None.

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Project Benefits: This project increases the Houston import capability relieving congestion that has been experienced on the transmission lines importing power into the Houston area in recent years. Future year planning studies have shown that without this project, congestion is expected to continue and may become a reliability issue by 2018 or earlier if additional generation units in the Houston area suspend operation.

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CONSOLIDATED EDISON, INC. (CON EDISON)Company Background:

• Con Edison’s regulated electric business consists of Consolidated Edison Company of New York (CECONY) and Orange & Rockland Utilities (O&R).

• CECONY provides electric service to approximately 3.3 million customers in New York City and Westchester County.

• O&R provides electric service to 300,000 customers in southeastern New York and adjacent areas of northern New Jersey and eastern Pennsylvania.

• CECONY’s transmission infrastructure consists of approximately 705 circuit miles of underground electric transmission/sub-transmission and approximately 428 circuit miles of overhead electric transmission.

• O&R’s transmission consists of approximately 409 circuit miles of overhead electric transmission and approximately five circuit miles of underground electric transmission.

• Between 2001 and 2009 Con Edison has invested over $1.6 billion into its transmission system.

Transmission Related Smart Grid Initiatives:

• The CECONY and O&R have the following roles in the New York Independent System Operator (NYISO) and New York Transmission Owner transmission Smart Grid project:

• The CECONY and O&R Phasor Measurement Unit’s (PMU) and Capacitor Banks Initiative is expected to be completed by the end of 2012 at an estimated cost of $9 million.

• PMUs:

• As part of the NYISO project CECONY and O&R will install 14 PMUs in the bulk power system within the joint service areas.

• This project provides for the extension of CECONY’s and O&R’s existing fiber optic network to new locations to interconnect future PMU installations in their service territories.

• O&R Capacitor Bank Installation for Loss Reduction:

• O&R will install three capacitor banks at O&R service locations as identified by the NYISO. O&R will seek to optimize the voltage profile on the power system in the vicinity of each installation. Although reliability criteria can be met without the deployment of these capacitor banks, the additional reactive power resources provided by the capacitor banks will enhance system reliability by strengthening the system’s ability to withstand and recover from disturbances that result in voltage dips or low-voltage conditions. By

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improving the power factor at an area substation, the capacitor banks will also increase the capability of that substation to carry load, thereby allowing for load growth further into the future.

• O&R PMU Installation in PJM:

• O&R will install a PMU in the Mahwah Substation as part of the PJM SynchroPhasor Technology Deployment Smart Grid Project. The overall project involves PJM and twelve of its member Transmission Owners deploying PMUs in 91 substations across the interconnect. The PJM project will provide the foundational infrastructure upon which additional PMUs and PDCs and future advanced applications such as congestion management can be deployed. The project will improve system reliability, operational efficiency, and transmission asset utilization as well as accelerate the modernization of the transmission grid within the PJM footprint.

M29 Transmission ProjectProject Description: The M29 Transmission Project consists of a new feeder and a 9.5 mile, primarily underground, 345 kV high-pressure fluid filled (HPFF pipe-type) transmission line from the existing Sprain Brook Substation in the City of Yonkers to the new Academy Substation in Manhattan. The feeder will be installed beneath the Harlem River via a tunnel. The new Academy Substation is planned as an indoor, gas-insulated type station GIS.

Project Cost: Approximately $468 million.

Project Status: This project is under construction and anticipated to be in service by the end of the first quarter of 2011.

Project Investment Partners: None.

Project Benefits: The installation of the M29 Transmission Line and associated upgrades at the existing Sprain Brook Substation and the new Academy Substation will allow Con Edison to meet expected electrical load growth in the East 179th Street load area, which includes portions of the Bronx and upper Manhat-tan. The project will also improve reliability on the Con Edison electric transmission and distribution system. First contingency overload conditions, as reflected in Con Edison’s most recent Ten-Year Load Relief Forecasts for the Sherman Creek Substation, serving the Bronx and upper Manhattan, will be relieved through construction of the project. The project will also provide electric system reli-ability benefits to portions of Westchester County within Con Edison’s Dunwoodie North load area. Additionally, the project would increase Con Edison’s ability to import power into New York City by about 350 MWs, thereby allowing the increased delivery of economy power to its New York City customers.