Page 1 PCC Meeting October 25, 2007 PCC and TEPPC Coordination of Roles and Responsibilities in Regional Planning Brian Silverstein and Robert Kondziolka

Page 2 PCC Meeting October 25, 2007 Meet Transmission Providers FERC Order 890 Planning Requirements Address concerns of transmission developers Address original TEPPC formation issues Clearly delineate PCC and TEPPC responsibilities and coordination interfaces Address the best way to manage the processes Reason To Address

Page 3 PCC Meeting October 25, 2007 Transmission Projects and Path Rating Increases Under Consideration Palo Verde–Devers II Green Path Project IV-San Felipe Indian Hills - Upland Sunrise Powerlink En-ti (Ely-Harry Allen) Harry Allen- Robinson Summit Montana Alberta Tie Line Frontier Project Northern Lights West Coast Cable BC- Northern California Transmission Juan de Fuca Cable Path 66 Path 26 Path 75 Path 54 Path 27 Paths 46 & 49 White Pine-Midpoint Path 36 Lake Elsinore Advanced PSP Trans-West Express Project Navajo Transmission Project Segment 1 Miracle Mile-Ault SunZia High Plain Express Colorado-New Mexico Interconnection Project TOT3 Expansion Project Eastern Plains Mountain States PacifiCorp Xsm Source: Robert Jenkins, June 2007

Page 4 PCC Meeting October 25, 2007 WECC Regional Planning Process Sequence StagesNeedsFormation Technical Studies LicensingConstruction Screening Studies SynchronizedStudyPlan ProjectPlanningReview Project Path Rating Review ProgressReports Regional Planning Guidelines Assessment Regional Planning Guidelines Assessment Phase 1 Phase 1 Proposed Rating Phase 2 Phase 2 Planned Rating Phase 3 Phase 3 Accepted Rating Annual Reports Required Throughout Planning Process Annual Reports Required Throughout Planning Process Column Heading Notes: Needs = Examination of potential long-term transmission needs. Formation = Development of proposals of specific project proposals by sponsors. Technical Studies = Power flow and dynamic stability studies. Licensing = Project sponsor activities to obtain rights-of-way, certificates of purpose and necessity, etc. Construction= Building of foundations, towers, conductor, substations, etc. Presented by Steve Walton at FERC Order 890 Technical Conference on Attachment K in Denver on October 23, 2007

Page 5 PCC Meeting October 25, 2007 January 17, 2006 White Paper Communication links should also be formed between TEPPC and L&R Subcommittee to avoid possible duplication of effort and to avoid divergent models and assumptions. TEPPC should focus on economic screening studies for resource and transmission expansion alternatives that have broad, regional implications. PCC should address issues from project inception to in-service.

Page 6 PCC Meeting October 25, 2007 January 17, 2006 White Paper Consideration should be given to integrating the TEPPC process and WECC current regional planning process. This would involve moving the oversight of the Regional Planning Project Review phase of the PCC process over to TEPPC to avoid duplication.

Page 7 PCC Meeting October 25, 2007 Provide guidance and leadership to the expansion planning process and ensure that the process is conducted in an open stakeholder forum, is impartial, transparent, properly executed and well communicated. Ensure that appropriate regional experts and stakeholders participate in the expansion planning process. Identify, develop and seek consensus on a process for high-level coordination of economic transmission expansion planning in the West, and successfully implement this process. TEPPC Function 2 Objectives

Page 8 PCC Meeting October 25, 2007 Ensure development and maintenance of a catalog of potential transmission projects that span multiple states, provinces or sub-regions in the Western Interconnection that may be, on a screening study basis, economically viable and may merit further consideration by sub-regional groups, policy makers and the WECC members. Ensure the analysis of demand-side resources and other non-wires solutions to congestion problems is represented along with the analysis of transmission solutions. TEPPC Function 3 Objectives

Page 9 PCC Meeting October 25, 2007 PCC Regional Planning Guidelines 1. Take multiple project needs and plans into account, including identified utilities' and nonutilities future needs, environmental and other stakeholder interests; 2. Cooperate with others to look beyond specific end points of the sponsors' project to identify broader regional and subregional needs or opportunities; 3. Address the efficient use of transmission corridors (e.g., rights-of- ways, new projects, optimal line voltage, upgrades, etc.); 4. Identify and show how the project improves efficient use of, or impacts existing and planned resources of the region (e.g., benefits and impacts, transmission constraint mitigation); 5. Cooperate with Regional Planning Review Group members in determining the benefits and impacts due to the project; 6. Identify transmission physical and operational constraints resulting from the project or that are removed by the project;

Page 10 PCC Meeting October 25, 2007 PCC Regional Planning Guidelines 7. Coordinate project plans with and seek input from all interested members, subregional planning groups, power pools, and region-wide planning group(s); 8. Coordinate project plans with and seek input from other stakeholders including utilities, independent power producers, environmental and land use groups, regulators, and other stakeholders that may have an interest; 9. Review the possibility of using the existing system, upgrades or reasonable alternatives to the project to meet the need (including non-transmission alternatives where appropriate); 10. Indicate that the sponsors evaluation of the project has takent into account costs and benefits of the project compared with reasonable alternatives; 11. Coordinate with potentially parallel or competing projects and consolidate projects where practicable.

Page 11 PCC Meeting October 25, 2007 Identify coordination and handoff issues between TEPPC and PCC. Modify the document to include the TEPPC role so the process describes a single integrated process of Regional Planning including sub-regional planning activity. Ensure that the Regional Planning Guidelines are followed and review is completed in a timely manner. Evaluate whether the Project Planning Review activity would fit better under TEPPCs administration or whether it should remain with PCC. This will be addressed in the Strategic Planning process. Modify the existing Regional Planning document (Project Planning Review) to include the TEPPC role RECOMMENDATION