1. Beyond Capacity Distributed Resources and BPA Non-Wires Initiatives September 28, 2016

2. BPA Overview
BPA is part of the U.S. DOE, but it is self-funded and covers all of its costs by selling products and services.
Congress created BPA in 1937 to market federally generated power in the Pacific Northwest and to build the electric transmission system to deliver that power. There are 142 public power customers today.
BPA markets the largest supply of low cost, carbon free energy in the nation. 31 federal dams. Hydro generation: 8,491aMW, 22,000MW capacity
BPA operates and maintains the largest electric transmission system in the Northwest.
Welcome: Audience, Background, Time, Tone, Q&A
Handouts: Approach, Framework, 1-pager
For demand response programs, important that BPA as a wholesaler partners with its customer utilities to access end loads.
For demand response programs, BPA as a wholesaler partners with its customer utilities that serve the end load.

3. The BPA High Voltage Transmission System
BPA operates ~3/4 of the high voltage transmission in the Pacific Northwest service territory, about 15,000 miles.
BPA serves 490 transmission customers.
BPA transmission system has flowgates including the N-S path South of the Allston (SOA) substation.
Note: red lines represent flowgates
Flowgates are groups of transmission lines where flows across the regional system are most constrained. Some of these lines are owned by BPA and others are owned by other parties.
Transmission lines have increased in cost and time to build.

4. Significant Locational Value in the Placement of DR for Non-Wires
BPA is adjusting transmission planning process to include assessment of non-wires options.
Most notable application to date is for SOA flowgate.
Each MW of DR would translate to <1MW of flow relief.
Map depicts locational effectiveness of resources.

5. In 2016, BPA Tests the Market with a South of Allston Non-Wires Demonstration
All Sources Request For Offers (RFO) including Demand Response - April 2016
5 year demonstration with initial 2 year acquisition
Up to 250 MW. Maximum deployment 40 hours, July-Sept.
Day-ahead and 90 minute products.
Significant demand-side interest including DR, Dispatchable Voltage Regulation and battery storage

6. Observations on the DER Non-Wires Opportunity
This is a new discipline for traditional transmission planning and operations - there are still a limited number of case studies nationally.
The Business Case for non-wires can be compelling; best when incremental capacity need low and wires solutions costly.
DR can be competitive with traditional gen resources, and at a minimum increase the non-wires bidder pool.
Battery storage technology is advancing and costs are expected to be more affordable in the near future. Opportunity is in finding multiple value streams especially with longer contract terms.
Consistent need likely to grow regional availability and supply.

7. For more information, contact: Paul Garrett pdgarrett@bpa.gov
Tom Brim 7