CATS April 22, 2002 SSGWI TPG Portland, Oregon

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Central Arizona Transmission Study
CATS
April 22, 2002forSSG WI TPGPortland, Oregon
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Central Arizona Transmission System(CATS) Study
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Study Background

• Jan 2000 ACC Power Plant and Transmission Line
  Siting Committee Workshop on the Present and
  Future Electric Transmission Needs for the
  State
• March 2000 AZ utilities meet and discuss
  concept of regional transmission study
• June 2000 Kickoff CATS meeting
• July 2001 CATS Phase I completed
• August 2001 CATS Phase 2 initiated

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Background
The Central Arizona Transmission System(CATS)
Study is a collaborative regionalstudy conducted
to address energy deliveryand increasing energy
demands for CentralArizona in an environment of
deregulationand emerging electric utility
competition. The purpose of this coordinated
approachis to develop a high level transmission
planfor Central Arizona that maximizes
regionalbenefits, while making efficient use of
theexisting transmission system.
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Study Participants

• NRG
• Southwestern Power Group
• Citizens Utilities
• PPL
• Allegheny Energy supply
• AES
• Pinnacle West Energy
• Mountain County Co Generation
• Trans - Elect
• Panda Energy
• Teco Energy
• PDE
• Duke Energy Trading
• ED 3 MSIDD

• Arizona Corp. Commission
• APS
• TEP
• SRP
• AEPCO
• WAPA
• PNM
• Reliant Energy
• Williams Energy Mkfg Trading
• Industrial Power Tech.
• Arizona Power Authority
• Power Up Corp.
• Desert Energy

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Central Arizona Transmission System(CATS)
Participants Objectives

• Improve the use of the existing
  transmissionsystem for future load growth in
  Phoenix,central Arizona and southern Arizona.
• Increase the power transfer import level intothe
  Phoenix area.
• Increase the power transfer import level intothe
  Tucson area.
• Increase the power transfer capability
  betweenthe Phoenix and Tucson areas.
• Encourage future generation additions south
  ofPhoenix and north of Tucson.
• Provide additional transmission capacity toand
  from the Palo Verde hub

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Arizona Generation Projects
Commercial
2,000MW
Under Construction
6,900MW
Hopi
Kingman
Flagstaff
BullheadCity
Griffith
Springerville
SouthPoint
Payson
Red Hawk
Harquahala
Kyrene
Phoenix
Santan
WestPhoenix
Mesquite
La Paz
ArlingtonValley
Sundance
Gila River
CasaGrande
GilaBend
Gila Bend
Yuma
DesertBasin
Not Approved or Withdrawn 5100MW Big
Sandy Montezuma Signal Peak Toltec
Wellton-Mohawk
Saguaro 3
Bowie
Tucson
Vail
Maestros
Basis Status as of April 2002
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CATS Study Challenges

• Study work a. Non traditional study - future
  generation and use of system not known b.
  Transmission plans are dependent on resource
  plans c. Who will do the work?
• Who should be a study participant?
• How will results be implemented?
• Develop incentives to build new transmission

Continued
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CATS Study Challenges

• Business rules are changing a. FERC rule
  making b. Economy c. Enron / Anderson
• Key decision factors not known a. Who approves
  the plan b. Funding c. Approval to construct
• Work within existing organization and paradigms

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Study Philosophy

• Process a. Open to all interested stake
  holders b. Keep study manageable c. Work from
  common study plan data base d. Evaluate all
  reasonable alternatives e. Conduct a high
  level scoping study
• State regulators part of process
• Facilitate transmission development
• Interested participants develop justify the
  partof the vision or plan that brings value to
  them

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Study Goals

• Serve future customers in Central Arizona
• Make more efficient use of existingtransmission
  system
• Develop long term transmission plan
  thatstretches limits
• Facilitate development of transmission
• Encourage generator development thatsupports
  transmission

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Study Methodology

• Develop study objectives goals
• Develop study options / alternatives
• Prepare study plan
• Build benchmark base case
• Stress different parts of the system and
  different optionsor alternatives for multiple
  generation scenarios
• Group problems and solutions
• Create set of reasonable system expansion options
• Create high level vision or plan
• Continue to refine alternatives
• Create and implement expansion strategy

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Central Arizona Transmission System(CATS) Study
Areas
San Juan
Glen Canyon
Navajo
Four Corners
Mead
McKinley
Mohave
Cholla
Coronado
Westwing
PaloVerde
Pinnacle Peak
Springerville
Silver King
Kyrene
Liberty
Phase II
North Gila
Saguaro
Phase I
Greenlee
Tortolita
South
Vail
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Central Arizona Transmission System(CATS)
Generation Areas
San Juan
Glen Canyon
Navajo
Four Corners
Mead
McKinley
Mohave
Cholla
Coronado
Westwing
PaloVerde
Pinnacle Peak
Springerville
GEN C1
Silver King
GEN A
Kyrene
Liberty
GEN B
North Gila
Saguaro
Greenlee
Tortolita
South
Vail
GEN C2
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Central Arizona Long Term Vision
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Implementation ofCATS Status
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Winchester Substation
Winchester
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Palo Verde Southeast Valley Project
Palo Verde
SoutheastValley
500kV
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Mobile Substation
Palo Verde
SoutheastValley
500kV
Mobile
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Increase Capacity to Tucson
Connect new 500kVline to Winchester
Saguaro
Connect new 500kVline to Saguaro
Winchester
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CATS Benefits

• Not practical to do alone
• Forum for open exchange of needs, ideasand
  concepts
• One place where generation developers
  andtransmission planners can communicate
• Positive contribution by all participants
• Synergy from working together developeda
  better plan
• Common vision for future development
  oftransmission system in Central Arizona
• Customer get best of the all worlds
• Supply
• Reliability
• Lower environmental impact

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Conclusion

• It works
• Only evaluate what folks want to study
• No idea turned down
• Provides a valuable way for non-utility
  stakeholders to be involved in the development
  of thetransmission system
• Provided framework vision for the future
• Projects that meet individual needs are
  fundedand move forward
• One of few ways for all parties to
  communicate-crosses over the wall
• State Commissions contribute by providing
  inputand receiving valuable information
• Builds consensus and developed a better plan

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Question ?
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(No Transcript)
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Palo Verde to Southeast Valley ProjectAn
Overview
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Project Description
As a result of the CATS Study, SRP is proposing
anew high voltage power line project that will
include

• A 500-kilovolt (kV) power line from the Palo
  VerdeHub (Hassayampa Switchyard), located west
  of Phoenix, to the southeastern edge of the
  Valley (northern Pinal County)
• A 500/230 kV substation at a to-be-determined
  site in the southeastern edge of the Valley
  (northern Pinal County)
• A double-circuit 230-kV power line from the new
  500/230 kV substation to the Browning Substation

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Project Benefits

• Serves growth and power needs of CentralArizona
  residents and businesses
• Increases regions power import capabilityand
  improves transmission system reliability
• Accommodates existing or planned electricsupply
  and delivery facilities
• Facilitates opportunities to connect with new
  power sources

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BOB/PV-SEV Project Objectives

• Serve growth in SRPs Southeast Area
• Serve growth in Central Arizona
• Increase the Valley import capability
• Accommodate planned resource options
• Facilitate opportunities for others
  tointerconnect new resources

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Planning Hierarchy
Information (Plans) Coordination
WECC PLANNING
Criteria
WestConnect Planning
Criteria
Arizona Planning (Optional)
Criteria
SRP Planning
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Planning Hierarchy
Plans to meet the needs for the West Region St
ate Local
WECC
WestConnect
State of Arizona (Optional)
SRP Planning