Panhandle CREZs and Transmission Plans

1
(No Transcript)
2
Panhandle CREZs and Transmission Plans

• SPP 4500/2700 Plan Leverages Existing 69 to 345
  kV SPP Infrastructure Approved Expansion Plans
• Collects 4,500 MW nameplate capacity from best
  Texas CREZs
• Delivers 3,150MW with 2,700 MW into ERCOT North
  via HVDC ties to three strong 345 kV ERCOT nodes

3
Another SPP CREZ Alternative

• Comparable to Panhandle Loop Project in terms of
  wind development in Panhandle CREZs, e.g., 4,200
  MW vs. 4,500 MW.
• Builds upon SPP 4,500 MW conceptual plan but is
  modified to deliver significant amounts into
  ERCOT via 3 large HVDC stations into ERCOT at
  Bowman (1,200 MW), W Denton (1,200 MW) and
  Pittsburg/Kiowa (300 MW).
• Does not capitalize on all of the latent capacity
  in the existing Kiowa outlet lines or planned
  Hugo 2 generator 400 MW HVDC and associated 345
  kV outlet into SPP and ERCOT

4
SPP 4500/2700 Plan

• Collects 4,500 MW of nameplate wind farm capacity
  in best Texas Panhandle CREZs
• Delivers 3,150 MW of wind energy out of the
  Panhandle with 2,700 MW into ERCOT North via
  double circuit 345 kV lines interconnected at
  existing SPP Lawton Eastside, Sunnyside and
  Pittsburg 345 kV substations

5
SPP 4500/2700 Plan 1.13B

• Direct costs associated with new DC ties 820M
• Draper Sunnyside 345 kV - 60M
• DC ties - 540M (2,700 MW _at_ 200k/MW)
• Lawton Eastside Bowman 345 kV double circuit -
  100M
• Sunnyside W. Denton 345 kV double circuit -
  120M
• Advancements/Other Upgrades (86 or 2700/3150
  Prorata share) 310M
• Mooreland Wichita 345 kV - 100M
• Mooreland Northwest 345 kV - 80M
• Briscoe Co Lawton Eastside 345 kV - 130M

6
Cost Estimates Notes

•  
• Values are preliminary and conservative.
• 1.3M double circuit 345 kV line cost/mile based
  on ERCOT's study Table 4, Page 23.
• None of the above figures include any costs for
  added Var support or reactive compensation on the
  lines.

7
Conclusions

• SPP 4500/2700 Plan is an alternative that
  warrants serious consideration in the PUCT CREZ
  proceedings. This plan does not take advantage
  of all of the existing latent capacity in
  existing infrastructure between SPP and ERCOT,
  e.g, Kiowa 345 kV lines are rated in excess of
  2,000 MVA.
• The SPP 4500/2700 Plan leverages existing and
  planned infrastructure to provide efficient
  delivers across SPP into 3 strong 345 kV nodes in
  ERCOT North which does not require any
  significant ERCOT expansion, unlike the Panhandle
  Loop Project.
• With the SPP 4500/2700 Plan and additional HVDC
  ties associated with Entergy QPR, Hugo 2, and W
  Texas reliability/economic opportunities, HVDC
  interconnection capacity between SPP and ERCOT
  could increase from 800 MVA to almost 5,000 MVA.
• Regardless of CREZ developments, significant
  amounts of HVDC ties may be economically
  justified between SPP in Oklahoma and ERCOT North
  given current LMPs. As a result of the SPP
  4500/2700 Plan, ERCOT North congestion costs are
  expected drop significantly, thereby reducing
  ERCOT customer bills by 100-200 million per
  year.

8
Panhandle Loop Project

• Proposed 1.5B 800 mile high capacity 345 kV
  double circuit E-Plan to accommodate 4,200 MW
  of Panhandle CREZs and access to 3,800 MW of
  existing and potential cogenerators and other
  fossil-fueled resources in SPP to ERCOT.
• Appears to interconnect with the ERCOT system at
  existing Oklaunion and Morgan Creek substations,
  plus an new substation in Haskell County.
• Significant improvements internal to ERCOT are
  needed to provide deliverability for the
  Panhandle Loop Project to ERCOT loads. Electric
  Transmission Texas is proposing a 2 phase 345 kV
  3.2B transmission expansion to integrate W Texas
  and Panhandle into the ERCOT network.

9
Transmission Maps

• Maps only show networked 69 kV facilities in
  SPP and 345 kV in ERCOT.
• Maps are incomplete with regards to existing
  transmission infrastructure in SPP. Extensive
  radial 69 and 115 kV lines in SPP Panhandle are
  not shown Texas
• Existing 345 kV in ERCOT are lightened.
• Maps are intended to show the extensive existing
  infrastructure in SPP which can effectively and
  efficiently be used as a collector system for
  CREZ developments in the Panhandle.
• Maps show CREZ 4500/2700 Plan compared to the
  Panhandle Loop Project and Electric Transmission
  Texas proposed 345 kV expansion plans.

10
Panhandle Loop Project ETTs Phase I II
11
SPP Infrastructure CREZ 4500/2700 Plan
12
Panhandle CREZs and 345 kV Options
13
SPP Expansion Plans

• SPPs approved expansion plans include the
  western half of the X Plan is needed to address
  reliability needs in the Panhandle.
• Capacity of the X Plan can effectively be
  double counted given potential CREZ deliveries
  out of the Panhandle.
• Transmission expansion in SPP, in general, and
  OK, in particular, is much easier than that in
  Texas

14
ERCOT and CREZs in the News

• RESTRUCTURING TODAY March 13, 2007
• Lead Story Headline Barry Smitherman warns
  marketers in Texas
• At KEMA meeting last week in San Antonio, FERC
  Commissioner Smitherman warned Texans against
  market power abuses and stated that If you do
  it, well come down on you like a ton of bricks.
  The article continues with He defined predatory
  pricing as the ability to control prices or to
  exclude competition.
• Page 1 Headline 2 New transmission for wind to
  save Texans 10 billion
• BP, Shell and Goldman Sachs lined up to invest in
  CREZs. Susan Sloan of AWEA Texas Operations says
  that The competitive energy market in Texas lets
  developers build a large wind farm and easily
  find buyers for the power. Article concludes
  with a Sloan quote that An ERCOT study found
  investing 1 billion in new transmission for wind
  power would clear the path for 6 billion worth
  of new wind generation. Once that capacity is
  built, Texans would save 10 billion in fuel
  costs and cut 100 million tons of greenhouse gas
  emissions.
• Page 2 Headline PUC finds TXU may have abused
  market power in 2005
• Page 2 Headline Barton fears TXU buyout may mess
  with Texas
• ERCOT isnt under FERCs jurisdiction now since
  its doesnt buy power from other states and
  its located within Texas -- but Barton believes
  that needs to change. The article continues
  with a quote from Rep Joe Barton (R-TX) regarding
  the TXU buyout stating that ERCOTs independence
  is being used as a weapon against ratepayers.

15
SaskPower(pending)
16
Texans like things big, right?

• Bigger is Better - SPP provides access to the
  500,000 MW Eastern Interconnection via extensive
  AC interconnections, as well as the 200,000 WECC
  system via DC ties.
• SPP is performing an EHV Overlay Study now to
  develop a blueprint for the long range (2030)
  transmission system in and around SPP which will
  likely include extensive 500 and 765 kV
  transmission expansion to support major wind
  development in the TX, NM, OK and KS region for
  national renewable portfolio standards, etc.

17
February 24, 2007 Wind Event is Key

• Aggressive wind development in ERCOT needs to
  consider implications given wind event which
  occurred in ERCOT on February 24th. Strong winds
  caused wind generation levels to drop from 2200
  MW to 500 MW in a time period of 90 minutes.
  Performance characteristics of different machines
  were noteworthy. Similar affects, albeit
  significantly less, were seen within SPP given
  the larger geopraphic diversity of wind farms in
  SPP. No impact seen on SPP wind farms in KS.
• ERCOT is big, but SPP provides access to the
  Eastern Interconnection which is a significantly
  larger system and market compared to ERCOT. SPP
  in conjunction with the Entergy ICT provides
  transmission planning and OATT administration
  services for the non-ERCOT sections of Texas in
  the 500,000MW Eastern Interconnection. SPP also
  provides access to the WECC via 3 DC ties now.
• Proposed new DC ties from SPP to ERCOT buffer
  ERCOTs system and customers from intermittent
  nature of wind resources and allows dynamic
  scheduling capabilities to improve performance of
  existing ERCOT system.

18
Next Steps

• SPP will file testimony to support CREZ 4500/2700
  Plan at the PUCT in the next couple weeks.
• SPP is considering alternatives regarding
  injection points into ERCOT North shown in the
  CREZ 4500/2700 Plan to better integrate with
  ETTs 345 kV project between Valley Spring
  Oklaunion which would be designed/built for 765
  kV operation.
• Absent a special agreement, SPP must follow its
  OATT with regards to the provision of
  transmission service and system expansion.

19
Jay CasparyDirector, Engineering501-614-3220jca
spary_at_spp.org
Questions?