Transmission to Enable Renewables Development

Jerry Vaninetti, VP Western Development

Denver, ColoradoTrans-Elect Development Company, LLC

New Mexico Renewable Energy Transmission AuthoritySanta Fe, NM – October 10, 2007

Background

• Trans-Elect (www.trans-elect.com): – Independent Transmission company funded by AES– Sole focus is transmission

• Path 15 developer: 83 mile $250 MM CA project– Public/private partnership with WAPA & PG&E

• Largely focused on greenfield transmission projects to enable renewables– High Plains Express & Wyoming-Colorado Intertie

• Jerry Vaninetti, VP Western Development– Interim Executive Director of Wyoming Infrastructure Authority– Former Power Project Developer

National Transmission Grid

Power Flow Capacities between WECC Control Areas

Most paths are fully

subscribed

Western Wind Power

Map

Developable Solar

RTO Coverage

NorthwestTransmissionAssessmentCommittee

Northern Tier Transmission Group

ColoradoCoordinated

PlanningGroup

SouthwestArea

Transmission

CaliforniaSub-Regional

Planaing Group

SouthwestTransmission

ExpansionPlanning

NTACNTAC

NTTG

CCPGCCPG

SWATSWAT

CSPGCSPG

STEP

Sub-Regional Transmission Planning Groups

WECCWestern

Electricity Coordinating

Council

Columbia Grid

Activities under WestConnect umbrella

SierraSierra

Transmission Development

• Transmission Line Costs (excluding substations)– $1.5 MM/mi for 500 kV for 1,500 MW = $1,000/kW– $1.0 MM/mi for 345 kV for ~750 MW = $1,333/kW– $0.75 MM/mi for 230 kV for ~400 MW = $1,870/kW

• Transmission Development– Design, economics, permitting, routing & customers– 5-7 Year Timetable– Typical development costs: ~$10 million/project– Risky proposition not suited to traditional utilities

• State Transmission Authorities– Seeding transmission development for economic and power

generation development, focused on renewables

Line Utilization Dictates Transmission Rates(Sold as Capacity, not Energy)

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CAPACITY FACTOR

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WIND-ONLY LINE MULTI-RESOURCE LINE

UTILIZATION LEVEL

• Initial Feasibility Studies• Master Plan for Local Projects

– WCI, EPTP & SunZia• Integrated AC System

– Improved connections between states/systems

– Improved Reliability• 2- 500 kV lines; 3,000 MW• 1,200 Miles• Renewables “firmed” with

other resources• Power Imports/Exports• Stakeholder Process• Project Participants

– Xcel, Tri-State, WAPA, PRPA, CSU, PNM, SRP & Trans-Elect

– WIA, NM-RETA & CEDA?• http://www.rmao.com/wtpp/HP

X_Studies.html

High Plains Express (HPX) Project

Disclaimer: this map is for study purposes only and is not meant to imply any specific project routing

Note: Conceptual Routing

Generation Capacity (MW)

Developable* Installed (‘07)

• Wyoming 257,650 319• Colorado 73,130 1,066

• New Mexico 73,040 496 • Arizona 2,310 0 TOTALS 406,130 1,881

Note: Current WECC peak demand ~ 175,000 MW WECC RPS requirement in 2020 ~ 23,000 MW

Wind Resources & Installations(from NREL & Interwest Energy Alliance)

* Class 4 +; excludes unsuitable land; 5 MW per km2

Geographic Diversity of Wind

Source: NREL wind performance projections

New Mexico40%

SE Wyoming 48%

Lamar, CO43%

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Hours of the Day (Yearly Average)

Lamar, CO SE Wyoming

New Mexico Average (44%)

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New Mexico Average (44%)

SE Wyoming

Lamar, CO

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New Mexico Transmission

New MexicoWind &

Transmission

26Indian Reservationor Pueblo

RETA Considerations

• Congratulations – RETA Exists!• RETA’s Scope

– Project Specific: Generator Leads– State Focus: Collector Systems & Integration– Regional: Linkage to Adjoining States

• Complementary wind resources & improved reliability– 30% Energy Requirement

• Transmission Development– Assistance to generators & local utilities?– Public/Private Partnerships?– Serving Native Load vs. Import/Export Markets– Cost Recovery: PRC rate based vs. merchant markets

Wyoming-Colorado Intertie Example

TOT 3 Project$318 mm - 250 miles

750 MW - Coal & Wind

Recommended RMATS Projects

Wind

Questions?

Jerry Vaninetti

jvaninetti@trans-elect.com

(303) 790-0513