FERC UPDATE

1
ISOGrid Planning
Presentation to CREPC October 1, 2002 Armando J.
Perez Director of Grid Planning California ISO
2
Presentation Contents

• Components of ISO Grid Expansion Plan
• General Planning Process
• Transmission Projects
• Generation Projects
• Policy and Coordination
• Transmission Cost Recovery

3
Special Focused Plans
New Generator Interconnection Plans
ISO Controlled Grid Plan
ISO Grid Plan Components
Reliability Must-Run Generation Studies
4
General Planning Process
Develop Study Plan Agree on Assumptions
5
Economic Reliability Benefits

• Almost All Projects have both Reliability and
  Economic Benefits and may be justified from
  either or both perspectives.
• Reliability Benefits - Primarily based on
  complying with Planning Standards resulting in
  fewer, shorter, and less widespread outages.
• Economic Benefits Reduction in the cost of
  power to ratepayers (access to lower cost
  resources and mitigation of market power).

6
Project Development Process

• Determine Project Need
• Determine Best Transmission Solution
• Conduct Competitive Solicitation
• Need methodology to compare projects with
  different time frames and benefits.
• Need a means for rate recovery of
  non-transmission expenses.
• Approve Best Project

7
Minimum Level of Reliability is Specified in
Planning Standards
8
Transmission Projects

• 255 Projects Approved Since ISO Formation
• 1.74 Billion
• 145 Already In-service
• Generator interconnections not included
• 60 Additional Projects Currently Under Study

9
Major Approved Projects
10
Generation Projects

• 225 Projects have been Followed by ISO
• 42 Projects On-line (6000 MW)
• 71 Projects in Planning, Permitting or
  Construction (26,000 MW)
• 112 Projects Cancelled or Placed on Hold (33,000
  MW)

11
Proposed New Generation
18 Projects
17 Projects
MW
8 Projects
25 Projects
3 Projects
Year
12
Policy and Coordination

• Policy In various forums, we develop standards,
  procedures, methodologies, requirements, new
  organizations, etc.
• Continental Level NERC FERC
• Western Interconnection Level WECC, CREPC SSG
• ISO Level Stakeholder Groups
• Coordination - Our planned changes will affect
  the entire interconnection and vice versa. All
  changes require some level of coordination.

13
Transmission Cost Recovery

• High Voltage Access Charge
• 200 kV and above
• Eventually Grid-wide
• 10 year transition period
• Grid-wide for new facilities
• Low Voltage Access Charge
• Below 200 kV
• Initially 3 TAC Areas (Northern, East Central,
  Southern)
• Wheeling Out Charge
• Offsets access charge

14
Questions ?