1

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of San Diego Gas & Electric Company (U902E) for a Certificate of Public Convenience and Necessity for the South Orange County Reliability Enhancement Project.

Application 12-05-020 (Filed May 18, 2012)

NOTICE OF EX PARTE COMMUNICATIONS OF THE CALIFORNIA INDEPENDENT SYSTEM OPERATOR CORPORATION

In accordance with Rule 8.4 of the Commission’s Rules of Practice and Procedure, the

California Independent System Operator Corporation (CAISO) hereby gives notice of the

following ex parte communications in the above proceeding.

On Monday, June 6, 2016 at 9:00 a.m. at the Commission’s offices in San Francisco

representatives from the CAISO met with Nick Chaset, Chief of Staff to President Picker and

Christine Hammond, Advisor to President Picker. Present for the CAISO were Neil Millar,

Executive Director of Infrastructure Development, Delphine Hou, Manager of State Regulatory

Affairs, Frank Chen, Senior Regional Transmission Engineer, and Jordan Pinjuv, Counsel. Keith

Casey, Vice President, Market and Infrastructure Development, participated by phone. The

communication was oral and written (attached).

During the meeting, Mr. Millar provided a brief overview of the CAISO’s transmission

planning process and the opportunities for stakeholders to participate in that process. Mr. Millar

explained that since the CAISO’s approval of the South Orange County Reliability Enhancement

Project (SOCRE Project) in the 2010-2011 transmission planning process, no stakeholder has

raised concerns regarding the SOCRE Project or the identified reliability issues in the South

Orange County area. Mr. Millar also explained the CAISO’s development of renewable

portfolios and study assumptions for the 2010-2011 transmission planning process, noting that

these portfolios and assumptions were developed with input from the Commission’s Energy

Division staff.

Mr. Millar and Mr. Chen provided information regarding the CAISO’s power flow

analysis for various alternatives to the SOCRE Project that would electrically interconnect the

2

San Diego Gas & Electric Company’s (SDGE’s) 138 kilovolt (kV) South Orange County

transmission system with Southern California Edison Company’s (SCE’s) 230-kV transmission

system. Mr. Millar explained the fundamental challenge associated with putting the 138-kV

South Orange County system in parallel with the 230-kV system while maintaining existing

transfer capacity on the 230-kV path connecting the Los Angeles and San Diego areas. Mr. Chen

explained that Alternative J as presented in the Final Environmental Impact Report (FEIR) could

reduce the transfer capability of the 230-kV system by up to 1000MW. Attachment A to this

notice provides additional details regarding potential impacts on both northbound and

southbound transfer capability of the 230-kV system that may be caused by Alternative J.

Mr. Pinjuv and Mr. Millar explained that the CAISO has consistently opposed any

alternative that interconnects the SDG&E South Orange County system with the SCE 230-kV

system. Mr. Pinjuv noted the CAISO’s opposition to such alternatives as presented by

intervenors in May 2015, Alternative J as presented in the Recirculated Draft Environmental

Impact Report (RDEIR) and subsequent modifications to Alternative J presented by intervenors

prior to and at hearings in this proceeding. Mr. Millar explained that the CAISO had to conduct

separate power flow analyses for each alternative and modification thereto in order to determine

whether such alternatives could meet reliability standards. In each case, the CAISO found

significant reliability concerns with the alternatives presented in the FEIR and by intervenors.

Mr. Chen further explained that these reliability concerns could not be addressed by a Special

Protection System (SPS) because it would exceed the CAISO’s Planning Standards governing

the complexity of an SPS.1 Mr. Millar and Mr. Chen also explained that Alternative J and

similar alternatives would exacerbate reliability concerns on the SCE system, the consequences

of which have not yet been fully vetted.

Mr. Millar and Mr. Chen also explained that alternatives to the SOCRE Project presented

by Forest Residents Opposing New Transmission Lines (Frontlines) and the City of San Juan

Capistrano (SJC) also failed to mitigate all reliability concerns. More detail was provided

through Attachment A, included with this notice. Mr. Pinjuv explained that the CAISO’s studies

are based on deterministic analysis of contingency events required to be studied by the North

1 Mr. Chen explained that the California ISO Planning Standards require that an SPS “should not be monitoring more than 4 system elements or variables.” https://www.caiso.com/Documents/FinalISOPlanningStandards-April12015_v2.pdf, p. 10.

3

American Electric Reliability Corporation (NERC) and that CAISO’s duty to mitigate identified

reliability concerns is not based on the relative probability of such events.

The CAISO provided Attachment A at the meeting. No other materials were distributed.

Respectfully submitted

By: /s/ Jordan Pinjuv Roger E. Collanton General CounselAnthony Ivancovich Deputy General Counsel Anna McKenna Assistant General Counsel Jordan Pinjuv Counsel California Independent System Operator Corporation 250 Outcropping Way Folsom, CA 95630 Tel.: (916) 351-4429 Fax: (916) 608-7222 jpinjuv@caiso.com

Attorneys for the California Independent System Operator Corporation

June 9, 2016

Attachment A

Sou

th O

rang

e C

ount

y R

elia

bilit

y E

nhan

cem

ent (

SO

CR

E) P

roje

ct

May

201

6

Cal

iforn

ia IS

O P

ublic

F-E

IR A

naly

sis

did

not a

ddre

ss c

once

rns

rega

rdin

g re

duce

d no

rthbo

und

trans

fer c

apab

ility

In th

e no

rthbo

und

dire

ctio

n on

“Pat

h 43

” nor

th o

f SO

NG

S:

•Th

e ex

istin

g tra

nsfe

r cap

abilit

y of

this

pat

h ha

s be

en

esta

blis

hed

as 2

440

MW

•H

isto

rical

flow

s on

this

pat

h ov

er th

e la

st tw

o ye

ars

have

al

read

y ex

ceed

ed 1

000

MW

on

num

erou

s oc

casi

ons

and

was

up

to a

ppro

xim

atel

y 15

00 M

W o

n on

e oc

casi

on.

•F-

EIR

ana

lysi

s lo

oked

at a

max

imum

flow

s of

599

MW

(A

ppen

dix

R, R

-1)

•C

AIS

O id

entif

ied

a 10

00 M

W re

duct

ion

in tr

ansf

er

capa

bilit

y (b

elow

147

0 M

W) c

ause

d by

the

Trab

uco

alte

rnat

ive

(On

Pag

e 33

8 of

SO

CR

E T

rans

crip

t A12

0502

0_11

1215

_EH

_VO

L3 )

Page

2

F-E

IR A

naly

sis

did

not a

ddre

ss c

once

rns

rega

rdin

g re

duce

d so

uthb

ound

trans

fer c

apab

ility

In th

e so

uthb

ound

dire

ctio

n on

“Pat

h 44

” sou

th o

f SO

NG

S:

•Th

e ex

istin

g tra

nsfe

r cap

abilit

y of

this

pat

h ha

s be

en

esta

blis

hed

as 2

200

MW

.•

F-E

IR a

naly

sis

did

not l

ook

at a

sou

thbo

und

flow

sc

enar

io(A

ppen

dix

R, R

-2)

•C

AIS

O id

entif

ied

a re

duct

ion

in tr

ansf

er c

apab

ility

(bel

ow

1600

MW

) cau

sed

by th

e A

ltern

ativ

es C

1/C

2 an

d D

, SC

E

230

kV lo

op-in

alte

rnat

ives

sim

ilar t

o th

e Tr

abuc

o al

tern

ativ

e.C

AIS

O te

stim

ony

(Spa

rks

page

s 16

-18)

Page

3

Tran

sfer

cap

abili

ty re

duct

ions

hav

e th

e po

tent

ial t

o im

pact

relia

bilit

y an

d re

new

able

del

iver

y us

e of

the

syst

em•

With

larg

e am

ount

s of

inte

rmitt

ent g

ener

atio

n se

rvin

g ov

er 5

0% to

75%

of t

he lo

ad in

Cal

iforn

ia a

t tim

es a

nd

rely

ing

on re

gion

al in

tegr

atio

n to

relia

bly

and

econ

omic

ally

ope

rate

the

syst

em a

nd m

anag

e lo

caliz

ed

reso

urce

var

iatio

ns it

is e

xpec

ted

that

exi

stin

g tra

nsm

issi

on fa

cilit

ies

will

be m

ore

heav

ily u

tiliz

ed.

•G

as s

uppl

y in

terr

uptio

ns s

uch

as th

e A

liso

Can

yon

outa

ge o

r pip

elin

e ou

tage

s in

crea

se th

e ne

ed fo

r bot

h no

rthbo

und

and

sout

hbou

nd fl

ows

Page

4

CA

ISO

iden

tifie

d th

e ne

eds

to a

ddre

ss th

e tra

nsfe

r ca

pabi

lity

redu

ctio

n th

at m

ake

Alte

rnat

ive

J a

less

cos

t-ef

fect

ive

alte

rnat

ive

to th

e S

OC

RE

pro

ject

•C

AIS

O e

valu

ated

a S

PS

as

miti

gatio

n to

add

ress

the

trans

fer c

apab

ility

redu

ctio

n bu

t dee

med

it in

feas

ible

as

it re

quire

s an

com

plex

SP

S th

at d

oes

not m

eet t

he C

AIS

O

Pla

nnin

g S

tand

ards

(Pag

es 3

36~3

41 o

f SO

CR

E Tr

ansc

ript A

1205

020_

1112

15_E

H_V

OL3

and

C

AIS

O A

naly

sis

of T

rans

fer L

imit

Impa

ct o

n th

e S

ON

GS

Pat

h W

ith A

ltern

ativ

e J)

•A

t lea

st 7

add

ition

al re

liabi

lity

upgr

ades

in th

e S

OC

138

kV

sy

stem

wer

e id

entif

ied

to m

itiga

te th

e ne

gativ

e im

pact

ca

used

by

Alte

rnat

ive

J C

AIS

O S

uppl

emen

tal R

ebut

tal T

estim

ony

(Spa

rks

page

s 5~

7)

•A

ltern

ativ

e J

will

exac

erba

te th

e ne

ed to

upg

rade

the

SC

E

owne

d E

llis-S

antia

go a

nd E

llis-J

ohan

na 2

20 k

V li

nes

or

incr

ease

the

need

for p

refe

rred

reso

urce

s in

the

area

CAIS

OS

uppl

emen

tal R

ebut

tal T

estim

ony

(Spa

rks

page

6)

Page

5

Fron

tline

s’ re

cond

ucto

ring

alte

rnat

ive

is in

adeq

uate

and

no

t cos

t-effe

ctiv

e w

hen

com

pare

d to

the

SO

CR

pro

ject

, as

it•

is in

adeq

uate

to a

ddre

ss th

e tw

o C

ateg

ory

D re

liabi

lity

conc

erns

CA

ISO

test

imon

y (S

park

s Ta

ble

3)

•do

es n

ot a

ddre

ss th

e in

adeq

uate

equ

ipm

ent i

ssue

at

the

Cap

istra

no S

ubst

atio

n C

AIS

O te

stim

ony

(Spa

rks

page

16)

•do

es n

ot m

itiga

te th

e re

liabi

lity

issu

e as

soci

ated

with

th

e in

adeq

uate

sep

arat

ion

betw

een

trans

form

ers

at

the

Tale

gaS

ubst

atio

n C

AIS

O te

stim

ony

(Spa

rks

page

16)

•is

not

feas

ible

to re

build

and

exp

and

the

Tale

gasu

bsta

tion

with

out b

uild

ing

cost

ly te

mpo

rary

faci

litie

s du

ring

the

cons

truct

ion

CA

ISO

test

imon

y (S

park

s pa

ge 1

6)

Page

6

The

City

of S

an J

uan

Cap

istra

no c

laim

ed th

at m

odifi

edA

ltern

ativ

e F

will

add

ress

the

relia

bilit

y ob

ject

ives

of

the

SO

CR

E P

roje

ct•

Alte

rnat

ive

F pr

opos

es to

bui

ld a

new

230

kV

line

and

up

grad

e R

anch

o M

issi

on V

iejo

Sub

stat

ion.

The

City

m

odifi

ed A

ltern

ativ

e F

by re

conf

igur

ing

the

Tale

ga-

Ran

cho

Mis

sion

Vie

jo a

nd th

e Ta

lega

-Pic

o 13

8 kV

line

s as

a th

ree

term

inal

line

•Th

e ci

ty c

laim

ed th

at th

is p

roje

ct a

ddre

sses

the

conc

erns

w

ithm

odifi

edA

ltern

ativ

e F

iden

tifie

d by

the

ISO

bec

ause

th

e N

ER

C/W

EC

C re

liabi

lity

stan

dard

s* a

llow

load

sh

eddi

ng fo

r Cat

egor

y C

con

tinge

ncie

s

* The

NE

RC

/WE

CC

relia

bilit

y st

anda

rds

prov

ided

to th

e C

PU

C b

y Th

e C

ity o

n A

pril

20, 2

016

via

e-m

ail h

ave

been

sup

erse

ded

by N

ER

C P

lann

ing

Sta

ndar

d TP

L 00

1-4

and

NE

RC

Ope

ratin

g S

tand

ards

.Pa

ge 7

Mod

ified

Alte

rnat

ive

F w

ould

resu

lt in

the

need

for a

co

mpl

ex lo

ad d

ropp

ing

sche

me

that

wou

ld n

ot m

eet

the

ISO

Pla

nnin

g S

tand

ard

•Th

e IS

O a

naly

sis

on th

e C

ity’s

mod

ified

Alte

rnat

ive

F id

entif

ied

six

cont

inge

ncie

s th

at w

ould

requ

ire lo

ad

drop

ping

ISO

Reb

utta

l Tes

timon

y (S

park

s P

ages

4-7

)

•A

lthou

gh lo

ad d

ropp

ing

via

Spe

cial

Pro

tect

ion

Sch

emes

(S

PS

) is

allo

wed

by

NE

RC

Pla

nnin

g S

tand

ards

the

SP

S

need

s to

be

desi

gned

with

the

follo

win

g in

min

d:–

Ris

k of

failu

re a

nd o

f ina

dver

tent

act

ivat

ion

–ris

k of

inte

ract

ing

with

oth

er S

PS

in u

nint

ende

d w

ays

–in

crea

sed

man

agem

ent,

mai

nten

ance

, coo

rdin

atio

n re

quire

men

ts, a

nd a

naly

sis

com

plex

ity

•Th

e IS

O P

lann

ing

Sta

ndar

ds in

clud

e gu

idel

ines

for S

PS

de

sign

and

the

mod

ified

Alte

rnat

ive

F w

ould

not

mee

t th

ese

guid

elin

es IS

O R

ebut

tal T

estim

ony

(Spa

rks

Pag

es 1

1-12

) Pa

ge 8

BA

CK

GR

OU

ND

SLI

DES

SO

CR

E P

roje

ct n

eed

was

ass

esse

d in

the

2010

-201

1 IS

O T

rans

mis

sion

Pla

nnin

g P

roce

ss.

•O

pen

stak

ehol

der p

roce

ss•

Stu

dy a

ssum

ptio

ns w

ere

disc

usse

d w

ith s

take

hold

ers

durin

g a

publ

ic m

eetin

g on

Feb

ruar

y 12

, 201

0•

Tech

nica

l stu

dy re

sults

wer

e po

sted

for s

take

hold

er

revi

ew o

n S

epte

mbe

r 10,

201

0•

Stu

dy re

sults

wer

e di

scus

sed

with

sta

keho

lder

s on

O

ctob

er 2

6 an

d 27

, 201

0 •

Dra

ft re

port

was

pro

vide

d to

sta

keho

lder

s fo

r com

men

t•

ISO

Boa

rd a

ppro

ved

the

proj

ect o

n M

ay 1

8, 2

011

•M

ay 1

8, 2

012

-CP

CN

App

licat

ion

filed

Page

10

SO

CR

E p

roje

ct is

nee

ded

to m

eet t

he p

lann

ing

stan

dard

s

•26

con

tinge

ncy

over

load

s w

ithin

the

plan

ning

hor

izon

•7

cont

inge

ncy

over

load

s in

the

near

term

•29

con

tinge

ncie

s re

sulti

ng in

loss

of s

ervi

ce to

all

sout

h O

rang

e C

ount

y lo

ad d

urin

g m

aint

enan

ce c

ondi

tions

in

the

near

term

•

All

of th

ese

cond

ition

s m

ust b

e m

itiga

ted

to m

eet t

he

man

dato

ry re

liabi

lity

plan

ning

sta

ndar

ds•

SO

CR

E m

itiga

tes

all o

f the

se d

efic

ienc

ies

Page

11

SO

CR

E P

roje

ct S

cope

•S

OC

RE

pro

ject

prim

arily

con

sist

s of

:•

Rep

laci

ng a

n ex

istin

g 8

mile

138

kV

tran

smis

sion

line

w

ith a

new

230

kV

dou

ble-

circ

uit l

ine

betw

een

Cap

istra

no a

nd T

aleg

a su

bsta

tions

in s

outh

Ora

nge

Cou

nty

•R

epla

cing

the

Cap

istra

no 1

38 k

V s

ubst

atio

n w

hich

is a

t th

e en

d of

its

life

with

a n

ew 2

30 k

V a

nd 1

38 k

V g

as

insu

late

d su

bsta

tion

•IS

O’s

and

SD

G&

E’s

test

imon

y ha

ve m

ore

deta

il

Page

12

Alte

rnat

ives

do

not m

itiga

te a

ll of

the

prob

lem

s or

cr

eate

new

pro

blem

s

•U

pgra

ding

the

138

kV n

etw

ork

cost

s al

mos

t as

muc

h as

S

OC

RE

and

doe

s no

t add

ress

the

relia

bilit

y pr

oble

ms

durin

g m

aint

enan

ce c

ondi

tions

•C

onne

ctin

g th

e so

uth

Ora

nge

Cou

nty

syst

em to

the

SC

E

230

kV s

yste

m d

egra

des

the

abilit

y to

tran

sfer

pow

er

betw

een

the

Los

Ang

eles

Bas

in a

nd S

an D

iego

are

as•

The

ISO

’s a

nd S

DG

&E

’s te

stim

ony

prov

ides

mor

e de

tail

on th

e al

tern

ativ

es c

onsi

dere

d

Page

13