1. March 26, 2014 Transmission Coordination and Planning Committee 2014 Q1 Stakeholder Meeting

2. Introductions Background Transmission Planning Process 2014 TCPC Study Scope Stakeholder Input and Questions Agenda 3/26/2014 2

3. Energy Delivery 101 3 3/26/2014

4. Meeting Objectives Plan the expansion of the transmission system to ensure reliable, efficient delivery of energy to customers at a reasonable cost. Develop and coordinate plans with interested stakeholders at the local, state, and regional level to identify and address concerns in the early stages of project development. Ensure openness and transparency while addressing applicable regulatory requirements. 4 3/26/2014

5. Transmission Planning 5 3/26/2014

6. What is Transmission Planning? The process of evaluating the transmission system to identify transmission facilities required to deliver existing and future generating resources to existing and future customer loads while balancing reliability, societal impact and cost. 3/26/2014 6

7. Types of Planning Studies System Interconnection Requests o Generator, Load or Transmission Interconnection Feasibility Study System Impact Study Facilities Study Transmission Service Study Reliability Study Economic Study 7 3/26/2014

8. Transmission Planning Process Major factors in the process: Future planning periods (5, 10, 20+ years) Load forecasts (existing + future growth scenarios) Generation output (serve local load vs. off-system sales) Generation types (thermal, hydro, wind, solar, etc.) Planned projects (local and regional) System disturbances (consider all relevant outages) Reliability criteria (the measuring stick for adequate transmission system performance) Transmission system commitments (capacity availability) Local, state, and federal regulatory requirements 8 3/26/2014

9. 9 Transmission Planning Groups Transmission Coordination & Planning Committee (local ) o http://www.oasis.oati.com/CLPT/index.html http://www.oasis.oati.com/CLPT/index.html o Select “Transmission Planning” folder Colorado Coordinated Planning Group (sub-regional) o www.westconnect.com/planning_ccpg.php WestConnect (regional) o www.westconnect.com/planning.php 3/26/2014

10. Transmission Planning Process 10 3/26/2014

11. Multi-Year Transmission Plan PROJECTESTIMATED ISD STATUS South Cheyenne 115 kV Substation2014Planned North Range 115 kV Substation2013In-Service North Range 115 kV Transmission Line2013In-Service Corlett-South Cheyenne 115 kV Line2014Planned Swan Ranch 115 kV Substation2014Planned North Range-Swan Ranch-South Cheyenne 115 kV Circuit 2014Planned Cheyenne Prairie Generation Interconnection2014Planned Data Center 115 kV Substation and Transmission2015Planned Second South Cheyenne 230/115 kV Transformer2015Planned 11 3/26/2014

12. CLFP Transmission Plan 12 3/26/2014

13. 2014 Study Scope: 5 and 10-Year Scenarios 2019 Heavy Winter Load o Power flow, transient stability, voltage stability 2019 Light Winter Load o High Renewable Generation Output o Power flow, transient stability, voltage stability 2025 Heavy Summer Load o Power flow (transient stability as needed) 10-year off-peak case undecided at this time 13 3/26/2014

14. Data Collection Requested data due: Friday April 11, 2014 Peak and Off-Peak Load Data by POD o Monthly demand data for study years is critical o Monthly demand for 10 year planning horizon is preferred Resource Data o Demand requirement + reserves Reservation Data o Forecasted monthly transfer values on a per path basis, including rollover rights 14 3/26/2014

15. Requesting Scenarios and Alternatives Use CCPG Request Form at any time Ensures all stakeholder suggestions are considered Form will be submitted to CCPG and directed to the appropriate group All requests will be acknowledged and responded to www.westconnect.com/filestorage/ccpg_request_for m.xls 15 3/26/2014

16. Next Meetings Q2 Meeting: May 15, 2014 2:30-3:30 p.m. o Review stakeholder comments following Q1 meeting, submitted data, planned project status, other regional planning updates Q3 Meeting: August 21, 2014 9:30-11:00 a.m. o Review stakeholder comments following Q2 meeting, study results, identified solutions and alternatives, planned project status, other regional planning updates Q4 Meeting: November 20, 2014 9:30-11:00 a.m. o Review final comments to draft LTP report, preferred project alternatives, planned project status, other regional planning updates Additional stakeholder discussions may be held as necessary 16 3/26/2014

17. Wes Wingen, PE Manager of Transmission Planning wes.wingen@blackhillscorp.com (605) 721-2268 Dan Baye Transmission Planning Engineer daniel.baye@blackhillscorp.com (605) 721-2471 Questions? 3/26/2014 17

18. List of Acronyms CCPG = Colorado Coordinated Planning Group CPCN= Certificate of Public Convenience and Necessity FERC = Federal Energy Regulatory Commission KV = Kilovolt (1,000 volts) LTP = Local Transmission Plan MW = Megawatts (millions of watts) NERC = North American Electric Regulatory Corporation OASIS = Open Access Same-time Information System POD = Point of Delivery TCPC = Transmission Coordination & Planning Committee WECC = Western Electricity Coordinating Council 18 3/26/2014