Arizona Corporation Commission Power Plant & Transmission Siting Summary ACC Staff Presentation October 30, 20019

10/30/01 ACC Siting Summary 2 A.R.S. § B ACC Balance Test Adequacy Economics Reliability Public Interest Environment Ecology

10/30/01 ACC Siting Summary 3 House Bill 2040 Effective 8/9/01: Power Plants shall file a plan with the Commission 90 days prior to filing an application for a CEC Filed Power Plant plan is confidential All Plans filed with the Commission must now be accompanied by a power flow and stability analysis report showing the effect on the current Arizona transmission system

10/30/01 ACC Siting Summary 4 Generation Adequacy Determination Existing Loads with Reserve Margins Projected Loads with Reserve Margins Replace Older, Less Efficient Plants Competitive Margin Ancillary Services

10/30/01 ACC Siting Summary 5 Proposed Plants in Arizona

10/30/01 ACC Siting Summary 6 Water / Gas Usage All Filed Power Plants

New AZ Power Plants, Gas Supply Basins And Pipelines Approved Plants Pending Plants Future Plants

10/30/01 ACC Siting Summary 8 Source: Presentation to East of California parties by El Paso Natural Gas Company on April 26, 2001

10/30/01 ACC Siting Summary 10 Staff Proposed Measures of Adequacy & Security There should be sufficient transmission import capacity to reliably serve all loads in a utility’s service area without limiting access to more economical or less polluting remote generation New power plants must have sufficient interconnected transmission capacity to reliably deliver its full output without use of remedial action schemes or displacing apriori generation at the same interconnection for single contingency (N-1) outages

10/30/01 ACC Siting Summary 11 Arizona EHV Transmission San Juan Navajo Glen Canyon North Gila Palo Verde Silver King Kyrene Liberty South Saguaro Vail Greenlee Cholla Mohave Mead Four Corners Springerville McKinley Tortolita Phoenix Tucson Yuma Westwing Coronado Pinnacle Peak Transmission Import Constrained Areas

10/30/01 ACC Siting Summary 12 Comparison of Proposed Generation &Transmission

10/30/01 ACC Siting Summary 13 When is Enough ENOUGH? Water Resources Over Utilized Gas Supply or Delivery Capability Exceeded Transmission System Deliverability Exceeded Market Saturated

10/30/01 ACC Siting Summary 14 Questions ?