1. 1 Arizona Renewable Transmission Task Force BTA Response Chairman of SWAT RTTF Peter Krzykos Peter Krzykos ACC Meeting Oct23. 2008

2. 2 BTA Order Decision No.69389 “IT IS FURTHER ORDERED that in the next BTA, Commission regulated electric utilities, in consultation with the stakeholders, should prepare an assessment of ATC for renewable energy and prepare a plan, including a description of the location, amount and transmission needs of renewable resources in Arizona, to bring available renewable resources to load.”

3. 3 SWAT RTTF Phase #1 Integration of Renewable Resources into Arizona Transmission Network BTA Response Three Parts to the BTA Response –Assessment of ATC in Arizona –Assessment of maximum potential of renewable resources in Arizona –Develop potential transmission configuration to deliver the renewable resources in Arizona To comply with FERC 890 order it was decided to use the Southwest Area Transmission (SWAT) open stakeholder process to address BTA Order Renewable Transmission Task Force (RTTF) was formed as a subcommittee of SWAT.

4. 4 SWAT RTTF Phase #1 AZ BTA Order Response Task Force Meetings Task force had two open stakeholders meetings( October 8 th and November 16 th 2007) –List of attendees: Arizona Corporation Commission Utilities –Arizona Public Service –Salt River Project –Tucson Electric Power –Southwest Transmission Corporative –Southern California Edison Developers (Renewable Energy Companies) –Skyfuel –BP Alternative Energy –Foresight Wind –West Wind Wires –Ausra –Solar Mission –Interwest Energy Alliance Other Stakeholders –National Renewable Energy Laboratory (NREL) Consulting Groups –Genesee Consulting –PDS Consulting –K R Saline –Stanley Group –WSES Consulting –20-30 people were at each meeting –Stakeholders and utilities participated in development of a resource map, transmission map, and assess the ATC in Arizona in an open forum to address the BTA

5. 5 SWAT RTTF Part 1 -ATC Assessment This information was developed during stakeholder workshops held October 8th and November 16th 2007 and includes utility (APS, SRP, SWTC, and TEP) ACC staff and stakeholder input. Available Transfer Capability (ATC) has been gathered for each utility in Arizona as of June 2007 ATC is a dynamic number that can change from day to day and reflects current market condition

6. 6 Arizona EHV Transmission ATC (as of June 2007) Phoenix 230 kV System Navajo Glen Canyon North Gila Palo Verde Silver King Kyrene Pinnacle Peak Westwing Liberty South Saguaro Vail Greenlee Cholla Moenkopi Preacher Canyon McCullough Eldorado Mead Tucson 138 kV System Devers Imperial Valley Coronado Four Corners Shiprock Tortolito 102 372 356 125 556 0 0 0 Marketplace 0 0 0 75 0 BrowningRudd 787 0 Springerville Transmission Line Voltage Level 500 kV 345 kV ATC in MW

7. 7 SWAT RTTF Part 2 - Resource Projection The renewable resource map was developed during workshop meetings on Oct 8th and Nov 16th 2007 A renewable resource map displaying areas where resources development potentially could occur and was developed with input from three specific areas The Arizona Renewable Energy Assessment recently prepared for APS, SRP and TEP by Black and Veatch (2007) The queue for renewable resource in Arizona requesting potential interconnection (as of October 15th 2007) Stakeholder/developer input on prospective development opportunities. The # of MW display on the map is the highest out of the three inputs.

8. 8 Black & Veatch Summary Projected Resource Locations Geothermal/Clifton – 35MW Solar CSP/Yuma – 800MW Biomass/Biogas – 60MW (22 sites) Wind/Project KS – 18MW Hydro – 82MW (7 sites, 90% @ GC) Solar CSP/Stoval – 1,900MW Solar CSP/Phoenix – 800MW Solar CSP/Tucson – 800MW Wind/Project RS – 140MW Wind/Project BR – 158MW Wind/Project CV – 597MW Wind/Project BH – 46MW Wind/Project GP – 31MW 1 2 3 4 5 6 7 8 9 10 11 12 13 1 2 3 4 5 6 7 8 9 10 12 11 13 September 21 st 2007

9. 9 B & V Summary Filters Solar Thermal –Equipment availability/supply chain –Engineering support –Project economics –Proximity to adequate transmission –Land availability/terrain slope/proximity to sensitive areas Wind –Equipment availability/supply chain –Wind Class/Capacity factor –Project economics –Proximity to adequate transmission –Proximity to environmental sensitive areas

10. 10 Arizona Renewable Resource Queue CodeCompanyCODMW SizePOICountyType T1TEP200580Dolan Springs SubMohaveWind T2TEP200815Dolan Springs SubMohaveWind T3TEP200515Dolan Springs SubMohaveWind T4TEP200795Co-SprSt JohnsWind A1APS200860Cholla - CoconinoCoconinoWind A2APS2008128Cholla ShowCoconinoWind A3APS200722Cholla zeniffCoconinoBiomass A4APS2008270Ashofork - PollockCoconinoWind A5APS2009250.5cholla - showCoconinoWind A6APS2010100Adams - MuralCochiseWind A7APS2011110Harquahala JncMaricopaSolar A8APS2011110Panda Liberty lineMaricopaSolar A9APS2010300Gila BendMaricopaSolar A10APS2010400North Gila SubYumaSolar W1WAPA2008500Tap on 345kV Glen Canyon-Pinnacle PeakCoconinoWind W2WAPA2008300Mead - Davis 230 kV LineMohaveWind W3WAPA200865.1Goldmine Tap SubstationImperialWind W4WAPA2008500Peacock SubstationMohaveWind N1 Navajo Nation100Wind Total3420.6As of 10/15/2007

11. 11 Arizona Renewable Resource Queue CodeMW Size T180 T215 T315 T495 A160 A2128 A322 A4270 A5250.5 A6100 A7110 A8110 A9300 A10400 W1500 W2300 W365.1 W4500 N1100 As of 10/15/2007

12. 12 SWAT RTTF Part 2 - Resource Projection The map is intended to provide an overview of the potential, renewable resources within Arizona, which include wind, solar, biomass, hydro and/or geothermal and identifies those resources as clusters. Since both geothermal and biomass/biogas opportunities are small relative to both solar and wind opportunities, they have been included within the total which is described as generally wind and solar clusters.

13. 13 Potential Arizona Renewable Resources

14. 14 Quality of Wind Resources In Arizona *Developed by DOE and NREL At 50m elevation, Class 4 or higher is typically used for utility scale wind generation (NREL). At 80m elevation, Class 3 areas could have higher wind power class because of possible wind shear (NREL) Arizona has predominately Class 3 or lower wind resources Taken Directly from the United States Department of Energy website: http://www.eere.energy.gov/windandhydro/windpoweringamerica/maps_template.asp?stateab=az

15. 15 Quality of Solar Resources In Arizona Potentially sensitive environmental lands, major urban areas, water features, and areas with slope >1% were excluded to identify those areas with the greatest potential for development. (NREL) Taken Directly from NREL website: http://www.nrel.gov/csp/images/1pct_csp_az.jpg

16. 16 SWAT RTTF Part 3 - Transmission System During the October 8th and November 16th 2007 meetings, transmission alternatives for bringing the renewable energy resources to load were developed. Final transmission configuration represents the potential transmission lines that would be necessary if all of the renewable resources were to be developed in Arizona.

17. 17 Development of Final Transmission Configuration In open stakeholder process three engineering groups were formed to brainstorm possible future transmission scenarios in the Arizona Each of the three groups independently created a transmission map A final transmission configuration was approved in SWAT stakeholder meetings

18. 18 SWAT RTTF Part 3 - Transmission System Included in the map are: existing transmission lines APS, SRP and TEP 10 year plans other WECC Projects in Phase II or Phase III of rating process potential transmission lines to integrate renewable resources

19. 19 Potential Configuration for Transmission to Serve All Available Renewable Resources in Arizona

20. 20 Potential renewable transmission routes

21. 21 Estimated Construction Costs Substation Additions Voltage (kV) # of Substations Added 500 11 230 3 Totals Cost (Million) Substations$130 Lines$1,500 Total$1,630 Transmission Circuits Voltage (kV) Miles 500 445 230 247

22. 22 SWAT RTTF Phase #2 – Evaluation and Integration of Renewable Resources of Southwest into Transmission Network Workshop Meetings held on April 7 th and May 19 th 2008 –Renewable resource projection development –Potential transmission additions are in development for the entire SWAT area Renewable Taskforce has been extended to the entire SWAT area and includes Arizona, New Mexico, Nevada and Eastern California Power flow studies will be developed based on the transmission alternatives

23. 23 Southwest Area Transmission SWAT SWAT Footprint One of the WestConnect Sub-Regional Planning Groups SWAT Footprint One of the WestConnect Sub-Regional Planning Groups http://www.westconnect.com

24. 24 CCPG NWPP Area WECC (PCC & TEPPC) CAISO PSPA Others LADWP RETI Col.Grid SWAT NTTG SSPG West Connect NTAC Western Transmission Planning Today WGA & CREPC WIA CEDA 24FERC Transmission Barriers Conference 10/14/08 RETA

25. 25 Potential Resource Location

26. 26 Arizona Renewable Transmission Task Force BTA Response Chairman of SWAT RTTF Peter Krzykos BTA Workshop May 22-23 2008