1. Western Renewable Energy Zone (WREZ) Concept (as of 11/27/07)

2. Outline of Presentation How the Western Interconnection-wide REZ idea evolved Status of efforts to brainstorm a work plan Rough outline of the work plan Larson’s observations on: –Applicability of WREZ work to Action 4, 5, 10; –Connection with yesterday’s idea on Using 3Tier data to map and characterize NW wind areas Compare areas with transmission expansion plans

3. How Idea Evolved Several individual states undertaking analysis of renewable resources and transmission needed to move power to loads –Texas pioneering concept under name of Competitive Renewable Energy Zones (CREZ) –Colorado identifying zones as required by state law –California launched RETI –Arizona utilities contracted for study –Nevada Governor established committee –Sub-regional work such as the NW wind integration work September 28-29 WGA renewables/transmission summit in Ft. Collins –WREZ idea recommended as a next step Small team formed to explore feasibility of a WREZ project October 19 WGA meeting with DOE Ass’t Secretary Karsner and DOE Office of Electricity November 5 – briefing and review by WIEB/CREPC November 7 – briefing and review by WGA Staff Council November 7 to today – developing a rough work plan to be more broadly vetted

4. 1. Why do we need a Western REZ initiative? Supplement state-by-state assessments to provide a picture of potentially lower cost regional renewable generation alternatives Identification of WREZs will enable all parties to make more informed decisions about: –The cost of renewable power –Optimal transmission to move renewables –Potential partners in developing transmission –Where developers should site generation to access transmission and minimize environmental impacts

5. 2. What are the other benefits of a Western REZ initiative? WREZ process would lay factual foundation for interstate collaboration on: –Transmission and generation planning –Regulatory reviews of proposed transmission facilities –Cost allocation –Needs assessments

6. Outline of Rough Work Plan Phase 1 –Identify commercial potential, aggregate into zones, estimate bus bar price and delivered price of power Maximize consistency with state and sub-regional work –Ground truth data through a stakeholder process – complete 9/07 Phase 2 –Have sub-regional planning groups and WECC develop conceptual transmission plans to deliver power from highest ranking REZs Phase 3 –Report to Governors on remaining obstacles to transmission to move renewables –Investigate reasons for LSEs not procuring renewables Phase 4 –Identify institutional options for coordinated permitting and cost recovery

7. Organization of Effort Steering Committee (Govs, PUCs, CEOs of LSE, renewable generators and environmental groups) Technical Committee –Diverse geography, diverse organizations (states/provinces, generation developers, transmission developers, environmental groups, etc.) –Executive Committee for day-to-day management

8. Potential Organization of WREZ Effort Steering Committee (Govs, LSE CEOs, Env group CEOs) Technical Committee (Geographically and organizationally diverse) Executive Committee (to manage day-to- day activities) Work groups Project support staff WGA/WIEB secretariat Outreach coordinator/ facilitators National labs

9. Proposed Approach Zone development –Update resource assessment data (wind, solar, geothermal, biomass) –Input from stakeholders on promising resource areas (based on production value, exclusion areas, land ownership, etc) –Define preliminary zones –Develop supply cost curves Transmission corridor development –Develop crayon-level transmission corridors that connects zones and load centers –Input from stakeholders on promising transmission corridors (based on resources, exclusion areas, land, etc) –“Optimization” of transmission corridors to zones

10. Larson’s Observations (1) Connections to NWIAP items 4, 5, 10 –4. NTAC work on a methodology would be helpful and if completed by Sept 08 can provide a template for other areas –5. Columbia Grid and NTTG work on applying a methodology would be helpful. WREZs should be identified by 9/08 TEPPC 2007 modeling should be complete before 9/08 –10. NTAC/Columbia Grid/NTTG work on upgrades to deliver wind from MT This would be useful work

11. Larson’s Observations (2) 3Tier data to map/characterize NW wind resource areas and compare with transmission proposals –Seems to be exactly in line with WREZ game plan –Needs to be coordinated with WREZ work