The Need for Electric Transmission Improvements in Dane County

Background Dane County has experienced major economic growth in the last 25 years. Three of Wisconsin’s top five fastest growing communities are in Dane County. – Verona – Cottage Grove – Sun Prairie Electric usage in Dane County is expected to increase each year through 2020.

Background (continued) American Transmission Company (ATC) is a regulated public utility with a duty to provide an adequate and reliable transmission system. ATC’s planning analyses and system-reliability models indicate new transmission lines are needed in Dane County.

Growth In Dane County 1980 to 2007

Existing transmission system is aging Only three 345-kV transmission lines: – Columbia – No. Madison – Paddock to Rockdale to Columbia 1978 – Columbia – No. Madison 2 upgrade 2006 Only four 138-kV transmission lines: – Femrite – Sprecher 2007 – Rockdale to Fitchburg 1965/1967 – No. Madison to West Middleton 1972 – No. Madison to Sycamore 1983

Dane County projects: Recent and planned Project VoltageStatus/Inservice Femrite to Sprecher 138kVComplete 2007 North Madison to Waunakee 138kV Approved by PSC 07/07 Proposed In-service Date 2009 Fitchburg to Verona 138kVUnder regulatory review Proposed In-service Date 2009 Paddock to Rockdale 345kVUnder regulatory review Proposed In-service Date 2010 Rockdale to West Middleton 345kV Filed 10/15/07 In-service 2013

Rockdale – West Middleton Need The upgrade in 2006 of the 138-kilovolt line from the Columbia Plant to the North Madison substation is the only new 345-kilovolt line to be built in the County since the 1970s. A new 345-kV transmission line is needed to: reinforce the entire transmission network in Dane County solve a critical electrical reliability problem; help to prevent the threat of system outages Increase efficiency of power lines, reducing energy lost in transit Eliminate the need for multiple new, less-efficient, lower voltage lines in the future provide the necessary power for continued business growth and to support a growing population

Rockdale – West Middleton Project: At a glance Length of line: miles End points: Rockdale Substation near Christiana, and West Middleton Substation. Voltage: 345 kilovolts Type of pole: Steel single pole, single circuit Cost: $213 million to $250 million In-Service: 2013

Rockdale – West Middleton Proposed route options

Issues and challenges ATC’s forecasts and studies…are they accurate? Is underground construction an option? Are there alternatives? Conservation? Upgrades to existing lines? Is the Beltline Highway a viable route? Should additional generation in Dane County be considered? All of these issues are addressed in ATC’s regulatory application and will be subjected to the PSC’s rigorous review.

Reliability is critical – The capacity of the transmission system must meet the needs of a growing population and increased electrical usage. – Blackouts, brownouts, and even momentary interruptions can cause substantial financial impacts to businesses. – Reliable power is essential for Dane County’s energy consumers/employers and for attracting new businesses.

Improved Access leads to cost savings Access to lower cost energy sources: – The existing transmission system limits access to and transmission of cost-effective regional sources of energy, including renewable energy. – Planned transmission improvements will increase access to lower-cost sources of power outside of Dane County and reduce the need for new generation sources in the county.

A strong transmission system benefits the economy Transmission is basic infrastructure investment. – As necessary to a growing economy as transportation, water and sewer, and telecommunications infrastructure. A reliable and robust transmission system is fundamental to a growing economy. – Allows businesses to plan expansions with confidence. – Encourages new business development.

Next steps for Rockdale-West Middleton Project Regulatory application: filed 10/15/07 Regulatory review: Throughout 2008/09 Technical and public hearings: February 2009 PSC decision expected: Summer 2009 Proposed Start of construction: 2010 Proposed In-service Date: 2013