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WECC Regional Planning Pacific Northwest/Canada to Northern California

Transmission Project

Stakeholder Meeting of October 22, 2007

Technical Analysis Committee

Presentation of Findings and Recommendation

Ben Morris

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Topics

Technical Analysis Committee-Objectives

Stakeholder Input

Transmission Alternative Development

Project Cost Development

Power Flow Study

Findings and Recommendations

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Objectives

Evaluate transmission alternatives to access renewable resources in the Pacific Northwest, British Columbia and Nevada.

Seek stakeholder input on the analysis and scope of the project alternatives

Determine the transmission impacts and costs of such alternatives.

Evaluate technical feasibility of alternatives.

Identify the conceptual transmission plan for the next phase for this project -WECC Phase 1 Rating Study leading to Preliminary Plan of Service.

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Stakeholder Process

Open stakeholder process for TAC committee had 30 members participating and providing comments and suggestions.

Six TAC committee meetings were organized.

Loads and Resources Work Group provided input for TAC evaluation by identifying renewable resource potential in Canada, Pacific Northwest and Nevada.

Project Steering Committee provided guidance as necessary.

TAC members provided input on the analysis and scope of the project alternatives.

Cost data developed for transmission alternatives was shared with Economic Analysis Committee.

Issue draft report for comments.

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Alternative Development

Transmission corridors for alternative development,

Inland.Main terminations

Selkirk Substation-BC Canada and Midpoint Substations-IdahoRaven or Tesla Substation Northern California

Intermediate stationSpokane area, (Lower Snake area) (Lower Monumental ), Lower Columbia area (McNary/Boardman ), Grizzly area or Burns area

Submarine Cable (WCC-Sea Breeze)Main Terminations

Allston Substation-OR and Martin and Newark Substation–Northern California

Thirteen alternatives developed for evaluation,

Eight HVAC alternatives for 1500-4500 MW transfer capacity.

Three HVDC alternatives with 1500-3000 MW transfer capacity.

Two HVAC/HVDC-Hybrid alternative with 3000 MW of transfer capacity.

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Project Cost Development

Based on transmission facilities needed to link resources from Canada/Pacific Northwest to Northern California

Cost estimates are based on Unit cost figures and other publicly available data.

The preliminary cost estimate contains the Project Facility cost and Network Upgrade cost.

Project Facility cost: The project cost includes cost components for new lines and substations required to for transfer of 1500-4500 MW of capacity from the Canada, Pacific Northwest or Eastern Nevada regions to Northern California.

Network Upgrade Cost: The network upgrade cost includes the cost for:Transmission reinforcements in BC, the Pacific Northwest, and Nevada for delivery of renewable resources to project line terminations or at intermediate stations along the Project line. Transmission reinforcements in the Pacific Northwest and Nevada to mitigate any adverse impact on the existing regional transmission facilities due to interconnection to the project line for regional benefits.Transmission reinforcements in Northern California from the Project line termination in Northern California to load centers in the Sacramento or SF Bay area.

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Project Cost DevelopmentThe sum of the Project cost and Network upgrade can be considered as Source to Sink cost and is shown below:

The cost estimates in the table are based on unit cost and not on engineering review and are subject to change based on subsequent information, analyses and further feasibility consideration. The cost estimates do not include any cost associated with permitting issues. The cost does not include resource connection cost to the local network. The cost estimates are in 2006 dollar value and don not include escalation.

In reviewing this cost it should be noted:

The BCTC upgrades and associated costs may be embedded in the BCTC transmission rate covered in the cost of resources acquisition for delivery of resources to Selkirk or Ingledow Substation.

The Pacific Northwest upgrade cost includes the 500/230 KV transformer banks and terminations at intermediate stations along the Project line. It does not include any system impact cost associated with interconnection with the Project line. Upon completion of WECC Phase 1 rating studies establishing a firm plan of service, these costs may change and will be revised accordingly.

Some of the transmission reinforcements identified as Northern California reinforcements to deliver the incremental resources from the Project line termination south of Raven or Tesla Substations could be constructed and be in service before the Project operational date of 2015, and therefore may be a sunk cost.

4.7-5.25.55.5-7.33000-4500

4.1-4.34.61500-1600 MW

HybridHVDCHVAC

Source-Sink Cost ($ billions)Import Capability MW

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Project Cost DevelopmentWECC Regional Planning Review-Pacific Northwest/Canada- Northern California Transmission project. Preliminary draft Transmission Asset Cost Analysis. Transmission system component cost - doe not include resource interconnection cost to the bulk transmission system. All numbers are preliminary estimates based on listed assumptions. Estimates are subject to change based upon subsequent information or analyses and do not include feasibility considerations. Project EDRO 2015-2016. All cost in ,000 2006 Dollar value.

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Power Flow Feasibility Study

Power Flow studies were conducted for the following alternatives:

HVAC-500 kV alternative from Selkirk BC-Northern California without network connection in the Pacific Northwest.

HVAC-500 kV alternative from Selkirk BC-Northern California with network connection in the Pacific Northwest.

HVAC-500 kV alternative from Selkirk BC-Northern California and Midpoint-Northern California (TANC conducted the technical studies for this alternative).

HVDC-Submarine cable alternative from Allston OR to SF Bay Area (Sea Breeze conducted technical studies for this alternative).

Hybrid-500 kV HVAC/HVDC alternative from Selkirk BC- Northern California.

Major path flows were adjusted to represent a stressed system (corner point on NOPSG 2006 NJD Nomogram).

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HVAC

Hybrid-HVAC & HVDC

WCC Submarine Cable-HVDC

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Major Path Flows for Benchmark and Project Base Cases without Network Connection in the Pacific Northwest

3000 MW (n2s)N/AN/A3000 MW (n2s)BC – CaliforniaX

259 MW (n2s)264 MW (n2s)263 MW (n2s)300 MW (n2s)Alturas Project76

247 MW (w2e)236 MW (w2e)85 MW (w2e)1500 MW (e2w)Midpoint – SL75

7808 MW (n2s)7800 MW (n2s)7949 MW (n2s)8400 MW (n2s)North of John Day73

4400 MW (n2s)4400 MW (n2s)3776 MW (n2s)4800 MW (n2s)COI66

2850 MW (n2s)2850 MW (n2s)2980 MW (n2s)3100 MW (n2s)PDCI65

4000 MW (n2s)4000 MW (n2s)2185 MW (n2s)4000 MW (n2s)Northern – SoCalif.26

3150 MW (n2s)3150 MW (n2s)2302 MW (n2s)3150 MW (n2s)Northwest – Can3

Project CaseBenchmark Case (pre Project)

2016 HS1A Path RatingPath Name#

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Power Flow Study Findings

HVAC alternatives to Canada/Pacific Northwest without network interconnection are not feasible -- voltage control and reactive demand issues.

HVAC alternatives to Canada/Pacific Northwest with limited network interconnection in the Pacific Northwest showed flowablity problems on the Project line.

To mitigate this impact additional ties between the Project line and existing PACI facilities along with modification of series compensation of existing PACI facilities may be required, increasing the cost of the AC alternatives.

HVAC alternative with a line to Selkirk Substation BC and Midpoint Substation Idaho showed flowability problem. TANC Investigated this alternative

Submarine Cable HVDC alternative is being evaluated by Sea Breeze Corporation – for the WECC Phase 1 Rating Process for the West Coast Cable project

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Power Flow Study Findings

Technical evaluation of a hybrid alternative having a combination of HVAC and HVDC facilities from Selkirk Substation BC to Tesla Substation in Northern California.

The hybrid alternative evaluated included:• 1500- 3000 MW HVAC 500 kV from Selkirk Substation–Lower Columbia area

(McNary/Boardman) ,• 3000 MW HVAC 500 kV from Lower Columbia area (McNary/Boardman) -Grizzly area,• HVDC overhead line from Grizzly area to Tesla Substation Northern California with

3000 MW transfer capacity.• 3000 MW HVDC converter stations in the Grizzly area and at Tesla Substation.

The Hybrid alternative showed acceptable system performance under the normal and limited contingencies studied for this review. There were no negative impacts on existing paths in Canada and the Pacific Northwest.

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Recommendation

Conceptual plan to be further evaluated in WECC Phase 1 ---- Hybrid Alternative

Proposed rating of up to 3000 MW.

A combination of 500 kV AC and +/-500 kV bi pole HVDC line.

Terminations at Selkirk substation in BC and Tesla/Tracy substations in Northern California.

Potential intermediate connections pending results of the Phase 1 study:AC connection: Spokane area in WA (Beacon or Devil’s Gap substation),AC connection: Lower Columbia area (McNary/Boardman) or Lower Snake area (Lower Monumental) in WA,AC connection: Round Butte/Grizzly area in OR,HVDC terminals: Round Butte/Grizzly area in OR and Tesla/Tracy area in CA,Potential third HVDC terminal: Round Mountain area in Ca.

Other alternatives have not been ruled out

WECC Phase 1 rating process scope:Conduct studies to demonstrate the proposed bi-directional non-simultaneous rating.Develop a preliminary Plan of Service

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To Tesla

AC DC

Selkirk

Spokane Area Sub

McNary/Boardman Area Sub

Round Butte/Grizzly Area Sub

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Next Steps

Posted draft TAC report for comments on the Project web site:

http://www.pge.com/biz/Transmission_services/canada//

Please provide comments by October 29, 2007

Issue final TAC report by November 1, 2007

Initiate WECC Phase 1 Rating Process for the recommended conceptual plan