1. Regional Transmission Expansion Project Staff Council Briefing Tom Kaiserski (MT) Program Manager February 15, 2011 Governor’s Office of Economic Development John Chatburn (ID) Program Services Manager at Idaho Office of Energy Resources Chair, WGA Staff Council

2. Federal Energy Regulatory Commission Order 890 Requires public utility transmission providers to participate in open transmission planning processes at the local and regional level What is RTEP? Major North American Interconnections Analyze transmission requirements under a broad range of alternative energy futures and develop long-term, interconnection-wide transmission plans o Three regional efforts funded by a grant from the U.S. Department of Energy o $26 million awarded to Western Interconnection Effort (WGA and WECC) o 10-year plan due Sept 2011, 20-year plan due Sept 2013

3. What’s At Stake for Western Governors? The energy future of the West:  Shaping reliable electric generation and transmission to support economic development and growth in the Western United States Significant policy questions:  Related to electricity generation, air quality, wildlife, water resources, and project siting Governors’ support for the outcomes for $12 million effort:  WGA Staff must work with SAC to ensure that the final products merit support and reflect the goals of your governors

4. Transmission Planning Input (SPSC and WIEB) Air Quality (WRAP) Water (WGA and WSWC) Wildlife (WGWC) Future Generation (WGA) Goals of Regional Transmission Planning o Regional cooperation can lead to cheaper, more reliable electricity and more efficient management of our natural resources. o Governors have an opportunity to play a significant leadership role in shaping this project and to ensure that it delivers results for Western states. WECC Western Electricity Coordinating Council Topic B - Integrated Policy Input/Analysis Topic A – Technical Analysis WGA

5. State-Provincial Steering Committee (SPSC) 11 Governors’ appointees, 11 PUC Commissioners, 2 Canadian Province representatives plus WSWC and WGWC representatives SPSC role in regional transmission planning o Identify alternative electricity futures to be incorporated into the transmission scenarios (e.g., RPS) o Improve the utilization of the existing grid o Facilitate the integration of variable resources (e.g. wind, solar) Staffed by the Western Interstate Energy Board Air Quality (WRAP) Water (WGA and WSWC) Wildlife (WGWC) Future Generation (WGA) Transmission Planning Input RTEP

6. Sample SPSC Study Requests o High Electric Demand Case – What happens if loads increase 10% above base projections? o High Energy Efficiency – What happens if loads are adjusted to reflect implementation of the broadest range of energy efficiency and demand response resources? o Carbon Reduction – What carbon price would be needed to reduce carbon emissions by 17% by 2020 and 42% by 2030, relative to 2005 levels? o Advanced Technologies – What is the impact of breakthrough technologies such as innovations in storage technology, photovoltaic solar, nuclear energy, carbon capture and sequestration, DSM, and transmission technologies? o Alternative Conditions – How does the energy picture vary based on the amount of energy imported into California? o Plant retirements – What plants will be retired in the low carbon cases? o Making the existing grid more efficient – How do increased utilization of the existing grid and variable generation (e.g.wind, solar) impact energy generation and transmission?

7. Energy-Water Activities o Develop a state-by-state, west-wide water supply and demand assessment o Evaluate the impact of water availability or drought on the electric transmission and generation futures Air Quality (WRAP) Wildlife (WGWC) Future Generation (WGA) Water o Based on these impacts, provide input to decisions relating to the siting and technology for new generation in WECC transmission scenarios o Propose management practices or policies to facilitate compatible energy-water development. o Technical support provided by consortium of National Labs led by Sandia RTEP

8. Wildlife Activities o Ensure states develop GIS-based decision support systems (DSS) for wildlife information across political jurisdictions o Provide input into decisions relating to future generation assumptions, based on wildlife sensitivity information from state DSS tools. o Work with the National Renewable Energy Lab to produce spatial mapping that illustrates the overlap between high quality renewable resource zones and areas with crucial habitat for wildlife Air Quality (WRAP) Water (WGA and WSWC) Future Generation (WGA) Wildlife RTEP

9. Air Quality Activities o Identify impacts on future energy scenarios associated with new EPA standards for particulates and ozone o Identify potential impacts to coal-burning power plants and resulting plant closures or fuel-switches to natural gas Water (WGA and WSWC) Wildlife (WGWC) Future Generation (WGA) Air Quality RTEP

10. Siting Activities Continue Western Renewable Energy Zones (WREZ) Work  Work with utilities to identify those WREZ hubs in which they have the most interest  Identify policy and regulatory barriers in the development of interstate transmission  Evaluate siting issues, including federal lands issues  Complete cost allocation associated with the implementation of a respective transmission plan Air Quality (WRAP) Water (WGA and WSWC) Wildlife (WGWC) Future Generation RTEP

11. High-level Policy Questions o How do we ensure clean, cheap and reliable electricity delivery for Western citizens? o Should renewable energy standards, greenhouse gas emissions initiatives, and energy efficiency be used to drive the future generation and transmission mix? o How can policy balance siting of renewable energy facilities and transmission lines with protecting sensitive wildlife areas? o Should water use constrain the location or technology of new electricity generation?

12. Ensuring WGA Leadership o Ensure Governors are positioned to guide policy development on transmission planning, electric generation, air quality, water, and wildlife o Appoint member to the SPSC (see list of current representatives) to ensure a voice for western governors interests o Provide direction to WGA staff on work activities via lead governors