1. Increasing Access to the Grid NIPPC September 8, 2005 Brian Silverstein VP, Operations and Planning Bonneville Power Administration

2. 2 Increasing Access to the Grid Expand the Pie Increase Utilization Coordinated Planning

3. 3

4. 4 2001: Network Constraints

5. 5 Infrastructure Program To address the region’s transmission needs, BPA developed a transmission infrastructure program in 2001 to focus on: Maintaining reliable transmission service to population centers. Restoring or enhancing transfer capability across key paths. Providing margin so the system can be maintained. Evaluating and investing in non-wires alternatives.

6. 6 Infrastructure Accomplishments First major line construction in the Northwest since 1987. Invested more than $1 billion over four years. Two 500-kV lines completed, one under way. Modernized the nation's largest direct current terminal (Celilo Converter - 3100 MW). Several projects to upgrade local load service.

7. 7 M o n t a n a I d a h o O r e g o n W a s h i n g t o n Grand Coulee-Bell 500 KV Transmission Line Project April 2003-Dec 2004 Northern Idaho Reinforcement Schultz Series Capacitors March 2003-Nov 2004 Pearl Transformer Project Dec 2002-Dec 2003 Olympic Peninsula Reinforcement 1-5 Corridor Generation Addition Kangley-Echo Lake 500 KV Transmission Line Project July 2003-Dec 2003 Puget Sound Area 500/230 KV Transformer Schultz-Hanford Area 3 SW Washington NW Oregon Reinforcement Portland Area Reinforcement Swan Valley Goshen Rebuild Lower Valley Reinforcement Anderson Ranch Mountain Home Rebuild Southwest Oregon Coast Reinforcement Albany Eugene Rebuild Celilo Modernization Winter 2001-June 2004 West of Mcnary West of Slatt Raymond-Cos Status of BPA Infrastructure Additions Completed Underway Substation Project Completed BPA Transmission Lines Indian Reservation On Hold Proposed Substation Project Completed

8. 8 2005: Network Constraints

9. 9 Non Wires Solutions Potential Measures Demand response Energy efficiency Distributed generation Appropriately sited large generation Objectives Find least-cost solutions to transmission limitations Provide equivalent reliability to a transmission fix Benefits of transmission deferral Time value of money Option value of delaying costly investments

10. 10 Path Utilization Example

11. 11 Increase Utilization Flow-based ATC methodology Constraint Schedule Management New products and services Conditional firm Redispatch Better remarketing of unused rights Strategic use of nonfirm and short-term firm

12. 12 Transmission Buying Strategy for Wind Average Output Peak Output Sell When Not Needed Buy When Needed

13. 13 Integrated Planning Concept Objective: Achieve an adequate and least-cost plan in a functionally separated industry. Premise: Most commitments to long-term transmission, particularly those that require expansion, are tied to utility power purchase agreements. Concept: Establish a coordinated planning cycle that links individual utility resource planning with a region-wide transmission open season. Benefits: Improves our ability to develop transmission when needed. Provides for a regional adequacy assessment.

14. 14 Integrated Planning Concept Start/ Finish Resource Planning Transmission Planning Integrated Txm Plan Txm Commitments Txm Open Season Regional Adequacy Assessment IRP RFP Utility Resource Plan Locational Expansion Costs