California Energy Commission Renewable Energy Transmission Initiative (RETI) Part I Jeffrey D. Byron California Energy Commission Energy Action Plan (EAP) Meeting December 11, 2007

California Energy Commission Presentation Overview Motivation: Renewable Energy Growth Long Term Transmission Vision Possible Future Transmission Renewable Energy Transmission Initiative Integrated Plan 2

California Energy Commission Motivation: Projected RPS Needs Data Sources: 2004, CEC Electricity Report which includes all renewables in the State, not just IOUs; 2010 and 2020, PIER Renewables Projections. GAP Total: 29,000 GWh (11% Renewables) 2010 Tot:  59,000 GWh (20% RPS) 2020 Tot:  99,000 GWh (33% RPS, CSI, BI) 3

California Energy Commission INJECTION LOCATIONS Geothermal High Wind Distributed Biomass Solar CSP Solar PV 2010 Scenario 20% renewable generation Portfolio mix of resources 3000 MW of wind at Tehachapi Addition of 7,319 MW 29,000 GWh to 2006 baseline 4

California Energy Commission 2020 Scenario 33% renewable generation Portfolio mix of resources Addition of 19,157 MW 69,852 GWh to 2006 baseline 5

California Energy Commission Reliably Serve Load Minimize Cost to Customers Reduce Congestion Maintain Environmental Responsibility Connect Renewable Resources 6

California Energy Commission WECC Potential Renewables Alberta mixed Renewables B.C. Wind and Small Hydro Geysers Geothermal Mojave Solar Montana Wind N.E. California, Oregon, Nevada Geothermal and Wind Pacific NW Wind Salton Sea Geothermal Solano County Wind Tehachapi Wind Wyoming Wind Mixed Renewables Wind Solar Wind Geo Wind Small Hydro 7

California Energy Commission Wind Geo Wind Solar Wind Solar Wind Biomass Solar/PV Potential Future Transmission Corridors in California 8

Dian M. Grueneich California Public Utilities Commission Energy Action Plan (EAP) Meeting December 11, 2007 Renewable Energy Transmission Initiative (RETI) Part II 9 California Public Utilities Commission

RETI History  Inspired by SCE Advice Letter (approved as modified by CPUC Res. E-4052) and two CEC PIER contracts, all looking at the same issues  1st of its kind statewide collaborative study effort  Includes IOUs, POUs, CPUC, CEC, CAISO, renewable developers, federal land use agencies, environmental organizations, neighboring state commissions, and other interested parties  Commitment to open, inclusive, transparent process on an expedited schedule 10 California Public Utilities Commission

RETI Objectives  Provide a common forum for Commissions, utilities, and developers to examine the location and timing of new generation/transmission projects  Provide a common perspective for evaluating different technologies competing for limited system resources  Develop tools and analysis methods to evaluate renewables  Support and cooperate with current transmission planning efforts  Statewide integrated transmission planning options to meet policy objectives 11

RETI Organization: Members California Public Utilities Commission Coordinating Committee –Public Utilities Commission –Energy Commission –California ISO –POUs (SCAPPA, SMUD, & NCPA delegates) Stakeholder Steering Committee –PUC, CEC, ISO, & POUs –Transmission Providers –Load Serving Entities –Generators –Environmental and Consumers Organizations –Permitting Agencies (Federal, State, Local) –Military Plenary Group –All Interested Stakeholders 12

RETI Organization: Roles Coordinating Committee –Oversees the overall RETI process –Ensures development of needed information –Keeps the process on schedule Stakeholder Steering Committee –Primary working group –Key stakeholder representatives –29 Members Plenary Stakeholder Group –Reviews Steering Committee work –Provides feedback –All stakeholders and the public 13 California Public Utilities Commission

Phase I of RETI will, in 8 months (August 2008): Identify renewable-rich resource areas in California and along its border Confirm developable/commercial potential of competitive renewable energy zones (CREZs) through engineering review, i.e. slope, road access, obvious environmental barriers, etc. Analyze the costs to develop each area, including: Generation Transmission Capacity value Grid integration costs Least cost/best fit principles RETI Scope of Work 14 California Public Utilities Commission

RETI Scope of Work Most important aspects of Phase I: We aren’t reinventing the wheel – we’re pulling together and building on pre-existing work Focus on actual commercial potential – not another high level view Consistent assumptions applied across the region Stakeholders drive the process by validating the work of an independent consultant through consensus input Goal is to rank CREZs through stakeholder consensus to reflect commercial potential, economics, and hard to quantify environmental, technological, and other concerns 15 California Public Utilities Commission

 Phase II - Transmission owners and other interested parties will develop high level transmission pathways for the highest ranking CREZs using existing transmission planning organizations/institutions  Phase III – Goal is to use existing transmission planning institutions to collaboratively design transmission plans of service that will result in applications to construct new RPS transmission infrastructure 16 California Public Utilities Commission RETI Scope of Work

RETI Relationships 17 California Public Utilities Commission

Steering & Plenary Committee Meetings (9/20/07) “Kick-off” meetings to establish RETI process Steering Committee Meeting (10/29/07) Questioned what stakeholders need from RETI Established Sub-Committee to develop CREZ selection/prioritization criteria Next Steering Committee Meeting (12/17/07) Consider proposed CREZ criteria Discuss capacity and energy valuation factors Address what stakeholders need from RETI RETI Events 18 California Public Utilities Commission

RETI Information Mission Statement, meeting minutes, and other materials available on the CEC’s website at: 19 California Public Utilities Commission