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A subsidiary of Pinnacle West Capital Corporation Q28 Generation Interconnection Project Interconnection Facilities Study APS Contract No. 52211 By Arizona Public Service Company Transmission Planning July 03, 2012 Version 1.3

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Page 1: Q28 Generation Interconnection Project · The build-out of the Q28 project’s interconnection facilities are depicted in a simple one-line diagram in Figure 3. Figure 4 and Figure

A subsidiary of Pinnacle West Capital Corporation

Q28 Generation

Interconnection Project

Interconnection Facilities Study

APS Contract No. 52211

By

Arizona Public Service Company Transmission Planning

July 03, 2012

Version 1.3

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Q28 (125 MW) - Facilities Study APS Contract No. 52211

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FACILITIES STUDY Q28 PROPOSED GENERATION

TABLE OF CONTENTS

1. Introduction ............................................................................................................................................ 3 2. Interconnection Facilities – Q28 69kV Switchyard ................................................................................ 4 3. Power Factor Requirements .................................................................................................................. 6

3.1 Reactive Support ............................................................................................................................ 6 4. Summary of Cost and Construction Time Estimates ............................................................................. 7 5. System Reinforcements ......................................................................................................................... 7

LIST OF APPENDICES

Appendix A – Preliminary Q28 69kV Switchyard Design

Appendix B – Cost Estimate and Construction Schedule Details

Appendix C – Supplemental Analysis

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1. Introduction

APS performed this Generator Interconnection Facilities Study (“FaS”) in response to a generator interconnection request by the Interconnection Customer (“Customer”). The Customer is listed in APS’s Active Generator Interconnection Queue as queue number 28 and has already completed a System Impact Study. The purpose of the study is to provide cost and construction schedule estimates for the facilities needed to interconnect the Customer’s proposed 125 MW wind generation facility (“Q28”) located near Holbrook, Arizona in the Southeast Navajo District. The Point of Interconnection (“POI”) assumed for the FaS is the proposed new Q28 69kV switchyard in the APS Cholla – Showlow 69kV transmission system via a 69kV transmission line from Q28 to Sugarloaf Substation and a second 69kV transmission line from Q28 to the Cholla 69kV Substation. The proposed in-service date for Q28 is to phase-in the facility between January 2012 and March 2013 with a target In-Service Date for this FaS of December 1, 2012. Figure 1 shows a general location of Q28. Figure 2 shows a general depiction of the 69kV system around Q28’s proposed POI.

Figure 1. Project Location

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Figure 2. Transmission System in the Q28 vicinity

The Interconnection Customer has chosen to interconnect as an Energy Resource. Delivery of the Q28 output beyond the POI would be on an “as-available” basis only. The delivery of the Q28 output would be subject to the firm or non-firm transmission capacity that may be available when a transmission service request is made. Nothing in this report constitutes an offer of transmission service or confers upon the Interconnection Customer, any right to receive transmission service. APS and other interconnected utilities may not have the Available Transfer Capability (“ATC”) to support the Transmission Service for the interconnection described in this report.

2. Interconnection Facilities – Q28 69kV Switchyard

The interconnection facilities required for the Q28 project consist of a new 69kV switchyard, located approximately 9 miles Northwest from Sugarloaf, a new (~23 mile) 69kV line from Cholla to Q28 and a new (~9 mile) 69kV line from Sugarloaf to Q28. The build-out of the Q28 project’s interconnection facilities are depicted in a simple one-line diagram in Figure 3. Figure 4 and Figure 5 depicts the Network Upgrades to Q28’s neighboring substations Cholla and Sugarloaf respectively. Appendix A shows a detailed physical layout of the new Q28 69kV switchyard and adjacent substations.

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Figure 3. New Q28 Switchyard one-line

Figure 4. Cholla substation Network Upgrades

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Figure 5. Sugarloaf substation Network Upgrades

3. Power Factor Requirements

The APS Open Access Transmission Tariff (OATT) policy regarding power factor requires all Interconnection Customers, with the exception of wind generators, to maintain an acceptable power factor (typically near unity) at the Point of Interconnection (POI), subject to system conditions. The APS OATT also requires Interconnection Customers to be able to achieve +/- 0.95 power factor at the POI, with the maximum "full-output" VAr capability available at all outputs. Furthermore, APS requires Interconnection Customers to have dynamic voltage control and maintain the voltage as specified by the transmission operator within the limitation of +/- 0.95 power factor, as long as the Project is online and generating. If the Project’s equipment is not capable of this type of response, a dynamic reactive device will be required. APS has the right to disconnect the Project if system conditions dictate the need to do so in order to maintain system reliability. The method for determining whether or not the generator meets these requirements is to first record the pre-project POI bus voltage. Next, model the generator with zero reactive capabilities at full output. Any shunt devices are turned off. Two synchronous condensers are added to the model with infinite reactive capability. One is at the terminal bus of the unit regulating the bus voltage to 1.0 pu. The other is one bus into the plant from the POI regulating the POI to the pre-project voltage level. The amount of plant losses can be determined by recording the MVAR flow at the POI and adding that to the sum of the synchronous condenser output. Based on the maximum output of the plant, determine the minimum reactive capabilities required to meet the +/-0.95 power factor range. The sum of the two numbers determines the maximum amount of reactive support the project must provide.

3.1 Reactive Support

Setting the reactive capabilities of the unit to zero and adding the synchronous condensers determined that there was 15.5 MVAR’s of losses attributed to the plant model. The generator at 125 MW would require a minimum of +/- 41 MVAR’s to meet the +/-0.95 power factor requirements.

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The generator was modeled with +/- 41 MVAR capabilities and a 15.5 MVAR capacitor bank was added for loss compensation. With the model provided the project is capable of meeting the APS power factor requirements.

4. Summary of Cost and Construction Time Estimates

The desired In-Service Date to begin testing for the interconnection facilities is December 1, 2012. The estimated cost of the Q28 69kV switchyard is summarized in Table 1 below. Construction schedule estimates are from the date the Interconnection Customer provides written authorization to proceed, provided all interconnection agreements and funding arrangements are in place.

Assumptions:

Terrain was not considered when estimating line route.

Land Purchase costs were not included in the Estimate.

Permit costs were not included in the Estimate.

All weather access road costs were not included in the Estimate.

R.O.W. = 40 foot width.

Access & Lay Down Yards are not included in the Estimate.

Rough grading costs are not included in the estimate.

APS will construct, own and operate the 69kV facilities in the Q28 substation and the portion of 69kV line from the 69kV bus up to the first 69kV pole outside the substation.

All estimates are in 2012 dollars. Table 1.1 Cost and Construction Time Estimates

Facility Costs Timeline

Network Upgrades $13,099,870 38 - 58 months

Q28 Trans. Provider's

Interconnection Facilities

$1,488,580 18 months

Grand Total $14,588,450 38 - 58 months

Additional cost estimate and construction schedule details are provided in Appendix B.

As can be seen in Table 1.1 above, the total estimated completion time for interconnecting the Q28 project is 38 - 58 months. Therefore, the desired In-Service Date of December 1, 2012 cannot be met. APS and the Interconnection Customer must therefore discuss and mutually agree to a new and acceptable projected In-Service Date.

5. System Reinforcements

Due to the location of the requested interconnection, Salt River Project (SRP) is an affected utility. The Project is proposed to be interconnected into the Sugarloaf 69kV substation. APS is interconnected into the SRP transmission system at Sugarloaf through a 500/69kV transformer, with the Sugarloaf 500kV substation being owned and operated by SRP. The Interconnection Customer has chosen to interconnect as an Energy Resource, with delivery of the Q28 output beyond the POI on an “as-available” basis only, using firm and non-firm transmission capacity that may be available when a transmission service request is made. Any network upgrades that may be required are dependent on the Transmission Service that is ultimately requested by the Q28 project.

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Appendix A

Preliminary Q28 69kV Switchyard Design

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Q28 Switchyard

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Cholla Substation Network Upgrades

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Sugarloaf Substation Network Upgrades

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Appendix B

Cost Estimate and Construction Schedule Details

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Cost & Construction Time Estimates

The summary provided in Table 2.1 below shows a total estimated completion time of 38 – 58 months. Therefore, the desired In-Service Date of December 1, 2012 cannot be met. APS and the Interconnection Customer must therefore discuss and mutually agree to a new and acceptable projected In-Service Date.

Table 2.1 Q28 Construction Time Estimates

Facility Schedule

Design & Material Lead Time Construction

Q28 Substation Work 6 months 12 months

Q28 69 kV Line Work 14 months 20 months

Communications 6 months 12 months

Right of Way Up to 24 Months N/A

Grand Total 38 - 58 months

Table 2.2, shown below provides a summary of the Network Upgrade and Transmission Provider’s Interconnection Facilities cost estimates.

Table 2.2 Q28 Project Cost Summary

Equipment Description Network Upgrades Transmission Provider's

Interconnection Facilities

Q28 Substation Work $2,847,901 $114,688

Q28 69 kV Line Work $9,400,393 $0

Communications $134,000 $0

Right Of Way (ROW) $717,576 $0

Regulator Additions (Distribution) $0 $1,373,892

Subtotal $13,099,870 $1,488,580

Grand Total $14,588,450

Network Upgrades Estimates: are anticipated to consist of the $13,099,870 listed above. Network Upgrades are typically repaid to the customer per FERC Rules, as transmission credits and/or repaid within a 20 year period. Transmission Provider’s Interconnection Facilities: would be the sole cost of the Interconnection Customer. Unlike Network Upgrades, these costs are not reimbursable.

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This Milestone table represents APS’s best effort at targeting a high level construction and In-Service schedule per Interconnection Customer’s requested In-Service Date. This Schedule and its projected In-Service Date are subject to change due to potential issues with weather, permitting and other required criteria and activities which may cause unforeseen timing delays. Upon commencement of Project, a construction schedule will be negotiated and adjusted accordingly.

MILESTONE RESPONSIBLE PARTY

DATE

LGIA or SGIA Signed & Funded: Generator interconnect agreement signed and Submittal of Provision of Security (Agreement Section 11.5).

Interconnection Customer

6/25/12

Kick-off Meeting: Both Parties 6/25/2012

Notice to Proceed: Customer to provide written authorization to proceed with design and procurement of materials

Interconnection Customer

APS Engineering: APS begin engineering activities. APS 9/24/2012

Materials: APS begin procurement of materials. APS 9/24/2012

Site Information: Substation site Topo, Geotech, and Soil Resistivity sent to APS.

Interconnection Customer

11/19/2012

Civil Information: Civil grading/drainage and site access plan submittal to APS Interconnection Customer

11/23/2012

APS acceptance of Civil Submittal: APS acceptance of civil grading/drainage site plan submittal after final civil site plan submittal (APS requires unrestricted and adequate site access)

APS 12/28/2012

Environmental Compliance: Interconnection Customer complete all required Environmental and Archaeological Surveys and provide copy to APS.

Interconnection Customer

Customer to Provide

Civil Construction: Interconnection Customer begin site below grade construction of APS and IC interconnection substation (“site prep”)

Interconnection Customer

1/21/2013

Site Acceptance of Civil Construction: Interconnection Customer submit certified site as-built drawings of below grade construction and certified documents showing that site was built to APS Specifications

Interconnection Customer

3/15/2012

Land Transfer: Interconnect Customer ensures land transfer and easements are complete

Interconnection Customer

1/11/2013

Notice to Proceed: Customer to provide written authorization to proceed with construction of facilities

Interconnection Customer

APS Substation Construction: APS begin interconnection substation construction

APS 3/25/2013

APS Communications Construction: Complete communications and other activities required for APS Substation

APS 6/21/2013

Operating Letter: APS and Interconnection Customer establish Project specific Operating Letter

Both Parties TBD

Outage Window: APS outage for substation cut-in (Subject to change based on System Conditions)

APS 12/4/17

Installation and Proving Relays: Complete line/relay work for substation cut-in APS 12/22/2017

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Metering: Metering installed, tested and released for use Both Parties TBD

In-Service/Back Feed: APS substation cut-in complete and released to APS Operations for IC to obtain back feed power (Application Date 3/1/07---Past 7 years

APS 1/8/2018

Initial synchronization: The date upon which the Generating Facility is initially synchronized and upon which Trial Operation begins.

Both Parties TBD

Commercial Operation: Interconnection Customer Commercial Operation Date (C.O.D.)

Interconnection Customer

3/5/2018

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Appendix C

Supplemental Analysis

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Voltage Flicker Analysis A supplemental voltage flicker analysis was performed on the post-project case without any higher queued projects. Table 3.1 details the substations affected by the voltage flicker analysis violations. The greatest flicker was observed at the Jeditto 69 kV bus with a 1.9% increase. This occurs as the Q28 unit(s) adjusts from 100% to 10% output.

Table 3.1

Distribution Substations Requiring Voltage Regulators

Substation ΔV

Cholla Const. 1.6%

E. Holbrook 1.7%

Heber 1.6%

Indian Wells 1.8%

Jeditto 1.9%

Keams Canyon 1.8%

Leroux 1.7%

Linden 1.7%

Showlow 1.7%

Shumway 1.7%

Snowflake 1.6%

Table 3.2 Voltage Flicker Results

100% Generation (base) 90% Generation 60% Generation 30% Generation 10% Generation

Bus kV Voltage (pu)

Voltage (pu)

ΔV Voltage (pu)

ΔV Voltage (pu)

ΔV Voltage (pu)

ΔV

ABITIBTP 69 1.028 1.031 -0.3% 1.037 -0.9% 1.041 -1.3% 1.042 -1.4%

BACON 69 1.040 1.043 -0.3% 1.049 -0.9% 1.052 -1.2% 1.053 -1.2%

BR1 69 1.006 1.008 -0.2% 1.014 -0.8% 1.018 -1.2% 1.021 -1.5%

CHLCONST 69 1.032 1.034 -0.2% 1.041 -0.9% 1.046 -1.4% 1.049 -1.6%

CHOLLA1 69 1.032 1.034 -0.2% 1.041 -0.9% 1.046 -1.4% 1.049 -1.6%

CHOLLA2 69 1.032 1.034 -0.2% 1.041 -0.9% 1.046 -1.4% 1.049 -1.6%

EHLBRKTP 69 1.018 1.020 -0.2% 1.027 -0.9% 1.032 -1.4% 1.035 -1.7%

EHLBROOK 69 1.017 1.019 -0.2% 1.026 -0.9% 1.032 -1.5% 1.034 -1.7%

FCORNERS 69 1.000 1.000 0.0% 1.000 0.0% 1.000 0.0% 1.000 0.0%

FLAGSTAF 69 1.027 1.027 0.0% 1.029 -0.2% 1.031 -0.4% 1.031 -0.4%

HEBER 69 1.012 1.014 -0.2% 1.021 -0.9% 1.025 -1.3% 1.028 -1.6%

HEBERTP 69 1.027 1.029 -0.2% 1.035 -0.8% 1.039 -1.2% 1.041 -1.4%

INDWELLS 69 1.002 1.005 -0.3% 1.012 -1.0% 1.017 -1.5% 1.020 -1.8%

JEDDITO 69 0.986 0.989 -0.3% 0.996 -1.0% 1.002 -1.6% 1.005 -1.9%

KEAMCNYN 69 0.982 0.984 -0.2% 0.992 -1.0% 0.997 -1.5% 1.000 -1.8%

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LEROUX 69 1.024 1.027 -0.3% 1.033 -0.9% 1.039 -1.5% 1.041 -1.7%

LEROUXTP 69 1.035 1.037 -0.2% 1.044 -0.9% 1.049 -1.4% 1.051 -1.5%

LEUPPJCT 69 1.012 1.013 -0.1% 1.019 -0.7% 1.023 -1.1% 1.025 -1.3%

LINDEN 69 1.016 1.019 -0.3% 1.026 -1.0% 1.031 -1.5% 1.033 -1.7%

MAZATZAL 69 1.039 1.039 0.0% 1.040 -0.1% 1.041 -0.2% 1.041 -0.2%

OWENS AZ 69 1.047 1.047 0.0% 1.048 -0.1% 1.049 -0.2% 1.049 -0.2%

PADRE 69 1.024 1.025 -0.1% 1.027 -0.3% 1.029 -0.5% 1.030 -0.6%

PRECHCYN 69 1.044 1.044 0.0% 1.045 -0.1% 1.046 -0.2% 1.046 -0.2%

RC-E 69 1.047 1.049 -0.2% 1.054 -0.7% 1.057 -1.0% 1.058 -1.1%

RC-ET 69 1.045 1.047 -0.2% 1.052 -0.7% 1.054 -0.9% 1.055 -1.0%

RC-W 69 1.033 1.035 -0.2% 1.039 -0.6% 1.042 -0.9% 1.043 -1.0%

RC-WT 69 1.034 1.036 -0.2% 1.040 -0.6% 1.043 -0.9% 1.044 -1.0%

SGRLF 69 1.025 1.028 -0.3% 1.036 -1.1% 1.041 -1.6% 1.043 -1.8%

SHOWLOW 69 1.020 1.023 -0.3% 1.030 -1.0% 1.035 -1.5% 1.037 -1.7%

SHUMWAY 69 1.021 1.024 -0.3% 1.032 -1.1% 1.036 -1.5% 1.038 -1.7%

SNOWFLAK 69 1.029 1.032 -0.3% 1.039 -1.0% 1.043 -1.4% 1.045 -1.6%

STRAWBRY 69 1.031 1.031 0.0% 1.032 -0.1% 1.032 -0.1% 1.032 -0.1%

STRAWBTP 69 1.031 1.032 -0.1% 1.032 -0.1% 1.033 -0.2% 1.033 -0.2%

SUNSHINE 69 1.017 1.019 -0.2% 1.023 -0.6% 1.026 -0.9% 1.028 -1.1%

TONTO 69 1.045 1.045 0.0% 1.046 -0.1% 1.046 -0.1% 1.047 -0.2%

WINONA 69 1.027 1.027 0.0% 1.029 -0.2% 1.030 -0.3% 1.031 -0.4%

WINSLOW 69 1.010 1.012 -0.2% 1.017 -0.7% 1.022 -1.2% 1.024 -1.4%

WINSLOWB 69 1.010 1.012 -0.2% 1.017 -0.7% 1.022 -1.2% 1.024 -1.4%

WOODRUFF 69 1.038 1.040 -0.2% 1.047 -0.9% 1.051 -1.3% 1.052 -1.3%

ZENIFF 69 1.027 1.029 -0.2% 1.036 -0.9% 1.040 -1.3% 1.041 -1.4%

SC 69 1.039 1.042 -0.3% 1.048 -0.9% 1.050 -1.1% 1.050 -1.1%