1. Lauren Azar Senior Advisor to the Secretary U. S. Department of Energy May 31, 2013 – WI Public Utilities Institute 1 Transmission Planning – A National Perspective

2. Federal Role in Transmission Planning FERC: latest = Order 1000 NERC: compliance with reliability standards DOE: funding for interconnection-wide planning, R&D in transmission modeling, convening stakeholders **** FERC/NERC = regulatory agencies DOE = research, convening and direct ownership of transmission

3. FERC Order 1000

4. Four requirements for planning: 1.Process must satisfy Order No. 890 and produces a regional transmission plan. 2.Must consider needs driven by public policy requirements and evaluate proposed solutions. 3.Eliminate ROFRs for new lines. 4.Utilities in neighboring transmission planning regions must look for coordinated solutions. FERC Order 1000 – Transmission Planning

5. Three requirements for cost allocation: 1.Utilities must participate in regional planning process with a regional cost allocation method. Method must satisfy six cost allocation principles. 2.Utilities in neighboring regions must have a common interregional cost-allocation method for new interregional lines. 3.Participant-funding of new transmission facilities is permitted, but is not allowed as the regional or interregional cost allocation method. FERC Order 1000 – Cost Allocation

6. Boundary lines are approximated and based on the best publicly available geographic information from planning regional participants. For illustrative purposes only.

7. Example FERC decisions: Duke MISO ISO NE NY ISO CAISO West Connect NTTG FERC Order 1000 – Compliance Filings and Decisions

8. Interconnection-Wide Planning

9. Interconnection Wide: The East Combined Federal Climate and Energy - Nationwide implementation Economy-wide carbon emissions reduced by 50% from 2005 levels in 2030 and 80% in 2050; Meet 30% of nation’s electricity requirements from renewables by 2030; Significant deployment of energy efficiency measures, demand response, distributed generation, smart grid, and other low-carbon technologies National Renewable Portfolio Standard – Regional implementation 30% of the nation’s electricity requirements from renewables by 2030 Business as Usual Existing conditions including load growth, existing Renewable Portfolio Standards, and current proposed environmental regulations.

10. Scenario 1: Combined Federal Climate and Energy Policy

11. Scenario 2: Nat’l RPS with Regional Implementation

12. Scenario 3: Business as Usual

13. Eastern Interconnection: Energy Zones Create a "clean energy resources atlas" - provide information, tools and support to states who wish to identify these types of zones Some states may ID zones in 2013

14. DOE Triennial Congestion Study & NIETCs

15. NIETCs 1.DOE’s Triennial Congestion Study. 2.DOE Secretary designates NIETCs. 3.Developers of lines within NIETCs may submit a construction application to FERC. 4.Under certain circumstances, FERC can issue an application that includes federal eminent domain powers.

16. The End