1. Modifications to Planning Charter
Dan Woodfin
Director, System Planning
06/18/2007

2. Planning Review Procedures
Planning Charter was written in 2003 to define procedures and responsibilities
Adjustment to procedures was made in 2004, but not incorporated into Charter document
RPG now has significant practical experience implementing these procedures
Some things work well
Some things don’t
Some issues aren’t currently addressed
PUCT has made achieving appropriate level of ERCOT review a requirement for transmission projects in CCN and rate case filings
RPG 06/18/2007

3. Goals of Modifications
Clarify/modify project tiers and review process associated with each tier
Implement Five-Year Plan process
Enhance usability of Charter document
RPG 06/18/2007

4. Define Four Tiers of Projects
RPG Review and Comment
ERCOT Independent Review
ERCOT BOD Endorsement
TIER 1
21 Day RPG Comment Period
28 Day Study Mode Period
(if needed)
90 Day ERCOT Independent Review
TAC Comment
ERCOT Board Endorsement
ERCOT Endorsement Letter
RPG Review and Comment
ERCOT Independent Review
TIER 2
21 Day RPG Comment Period
28 Day Study Mode Period
(if needed)
90 Day ERCOT Independent Review
ERCOT Endorsement Letter
RPG Review and Comment
TIER 3
21 Day RPG Comment Period
28 Day Study Mode Period
(if needed)
ERCOT Endorsement Letter
No ERCOT Review
TIER 4
RPG 06/18/2007

5. Categorization of Projects
Radial lines, repair equipment or add static reactive, add equipt that doesn’t change rating?
This Amount is open for discussion n
>$50M Capital Cost y
RPG Review and Comment
ERCOT Independent Review
ERCOT BOD Endorsement
TIER 1
Proposed
Project n
≥345 kV? y
345 CCN Required? y y
RPG Review and Comment
ERCOT Independent Review
TIER 2 n n
CCN Required? y n
RPG Review and Comment
TIER 3
This Amount is open for discussion y
No ERCOT Review
TIER 4
<$10M Capital Cost?
Unresolvable Study Mode or Congestion
Issues? n n y
RPG 06/18/2007

6. Categorization All projects over $50M go to BOD
345kV projects less than $50M also go to BOD if they need CCN
345kV projects less than $50M that do not need CCN do not go to BOD but get an EIR
138 and 69kV projects less than $50M that need CCN do not go to BOD but get an EIR
138 and 69kV projects less than $50M but greater than $10M and that do not need a CCN get an RPG review, but no EIR unless there are unresolved issues after the comment period and study mode
138 and 69kV projects that are less than $10M and do not need a CCN do not get ERCOT review
The implication of this is that a $49 million 138kV upgrade project could be endorsed after only the 21 day stakeholder comment. Is this a sufficient review, or does the $50 million criteria need to be lowered?
RPG 06/18/2007

7. Voltage level of project is based on highest rated-voltage element
Clarifications
Voltage level of project is based on highest rated-voltage element
Improvements that need to be undertaken together in order to achieve desired result should be bundled into single Project
ERCOT Staff can raise Tier of a project based on stakeholder comments, analysis and impacts
RPG 06/18/2007

8. Five Year Plan
Lists all projects that change existing topology, by year, including Tier 4 projects that do not require RPG review
Identifies projects to meet identified needs for reliability and economic criteria
Provides review similar to that required in RPG Review process for Tier 1 and Tier 2 (and Tier 3?) projects
Will use similar process to last year EXCEPT:
More two-way communication
More posting of intermediate cases and binding constraints
More focus on consensus decisions as to which projects are needed
TOs convince ERCOT or ERCOT convinces TOs – but we should strive for agreement
More on this process in separate presentation
RPG 06/18/2007

9. Charter Changes for Five Year Plan
Language to be added to Charter to explain Five-Year Plan development
Projects that are included in Five Year Plan receive expedited processing when they reach decision point and are submitted
RPG 06/18/2007

10. Expedited Review of 5-Yr Plan Projects
RPG Review and Comment
ERCOT Independent Review
ERCOT BOD Endorsement
TIER 1
TIER 2
TIER 3
21 Day RPG Comment Period
28 Day Study Mode Period
90 Day ERCOT Independent Review
TAC Comment
ERCOT Board Endorsement
ERCOT Endorsement Letter
21 Day RPG Comment Period
28 Day Study Mode Period
90 Day ERCOT Independent Review
ERCOT Endorsement Letter
Projects that were evaluated in the Five Year Plan development skip the 90 Day
ERCOT Independent Review
However, if comments show that significant changes have occurred since 5-Yr
plan was developed, or that there are relevant factors that were not considered
in the Five Year Plan analysis, additional study may be done.
21 Day RPG Comment Period
28 Day Study Mode Period
ERCOT Endorsement Letter
RPG 06/18/2007

11. Process for Expedited Review
Utility reaches “decision point” on project that is included in Five Year Plan
Utility submits limited project proposal:
Timing
Estimated Cost
“Parts List”
Stakeholder review (<21 days?) occurs but no EIR unless comments require it
RPG 06/18/2007

12. Special Categories of Reviews - 1
TO Criteria Projects
Some transmission owners submit projects based on internal planning criteria that are more stringent than NERC and ERCOT criteria
These projects will be reviewed in the appropriate Tier, except that projects normally falling in Tier 1 will be treated as Tier 2
ERCOT will not endorse these projects, but may concur that the project is the best way to meet the stated need, based on stakeholder comment and ERCOT Independent Review (if required)
RPG 06/18/2007

13. Special Categories of Reviews - 2
Projects “associated with” Generation Interconnections
There is currently a wide disparity between TOs as to what projects are considered to be “RPG-reviewable” projects and what projects are treated as “associated with generation interconnections”
Current charter says “generation interconnection lines” more than five miles in length will be reviewed by RPG
Proposals for clarifying which projects need open RPG review?
Generation Interconnection Procedure changes tentatively scheduled for discussion at next RPG
RPG 06/18/2007

14. Project Revisions
Significant changes to planned Tier 1 and Tier 2 projects that have already received an endorsement from ERCOT should be communicated to ERCOT for review:
Change of endpoint
Addition or change of networked intermediate station
Lower rating
Change in scope of project (e.g. double rather than single circuit)
A RPG comment period will be conducted if ERCOT determines that it is warranted. If comments are received, review will follow process for next lower project tier.
RPG 06/18/2007

15. Revisions to Charter Document
Changes necessary to include process changes described elsewhere in this presentation
Elimination of “textbook” section, references to specific models and any reliability criteria
Inclusion of economic planning criteria, as previously endorsed by TAC
RPG 06/18/2007

16. CEII Considerations
Descriptions for any contingencies that cause voltage collapse, instability or significant cascading should be redacted from project submissions and reviews. The non-redacted versions of these documents will be shared with ERCOT and transmission owner planning staffs via the new secure website
RPG 06/18/2007