Vermont System Planning Committee

1. Vermont SystemPlanning Committee Meeting slides for March 11, 2008 1

2. 1.0 Agenda – March 11, 2008 1.0 Introductions, review of agenda 2.0 Approval of the minutes of the December 4, 2007, meeting 3.0 Standing subcommittee reports: 3.1 Procedures Subcommittee (David Mullett) 3.2 NTA Screening Subcommittee (Bruce Bentley) 3.3 Energy Efficiency & Forecasting Subcommittee (Riley Allen) 3.4 Generation Subcommittee (James Gibbons) 3.5 Transmission Subcommittee (Hantz Présumé) 3.6 Public Participation Subcommittee (Jenny Cole) 3.7 Technical Coordinating Subcommittee (Deena Frankel) 4.0 Project study group reports: 4.1 Coolidge connector Interim NTA Project Study Group (Bruce Bentley) 5.0 Administrative/Staff Report: 5.1 Orientation to the new VSPC SharePoint website (Deena Frankel) 5.2 Future meeting schedule (Cathy Miglorie) 5.3 Expense reimbursement (Cathy Miglorie) 6.0 Old business 7.0 New Business: 7.1 Gorge Area Reinforcement Outreach (Benjamin Marks) 7.2 Taft Corners (Scott Mallory) 7.3 Lyndonville (Ken Mason or Kim Moulton) 2

3. 2.0 Approval of the 12/4/07 minutes Minutes with amendments in Attachment 2.0.1 3

4. 3.1 Procedures Subcommittee Report • Rules of procedure, adopted at 12/07 meeting, must be submitted by 3/15/08 to PSB. (Rules as adopted, Attachment 3.1.1) • Rules as adopted include one conflict with actual practice as it is evolving: • Sec. I-J states:Chair.The VSPC shall, at its first meeting each year, elect from its voting members an individual to chair VSPC meetings. [added emphasis] • In practice, no chair has been elected and the group agreed at the last meeting to proceed with facilitation by a non-member. • Three possibilities: • Retain current language, elect a chair who will lead the meetings. • Retain current language, elect a chair, continue with current approach to facilitation. • Amend the rules of procedure to change the “shall” to “may.” • In light of weather and technological challenges of 12/07 meeting, checking in with VSPC to ensure there is no objection to submitting rule, as adopted, to PSB. 4

5. 3.1 Procedures Subcommittee Report, Cont’d. • Information protocol due to PSB by March 15, 2008. Seeking VSPC approval to request an extension from the PSB. (See ¶78 of MOU.) • Within nine months of Board approval of this MOU, the VSPC shall submit, as an informational filing to the Board, a proposed protocol regarding management of information subject to the exemptions at1 V.S.A. § 317(c), including but not limited to nondisclosure by the VSPC of information subject to federal Critical Energy Infrastructure Information regulations that is discussed or disclosed to the VSPC. • Procedures Subcommittee to schedule a meeting, inviting anyone with input into the Information Protocol, with intention of having a draft ready for the June VSPC meeting. 5

6. 3.1 Procedures Subcommittee – Charter Draft and modify as necessary the procedural rules and information management protocol of the VSPC. (No change from the charter as filed with the VSPC annual report.) 6

7. 3.2 NTA Screening Subcommittee Report The NTA Screening Tool Subcommittee has tentatively agreed to a transmission screening tool that is very streamlined compared to the original 6290 screening tool. Some additional work is necessary to fine tune the planning trajectory for energy efficiency, i.e., how much DSM can planners assume is available within the planning horizon to determine if an NTA solution should be examined in detail. 7

8. 3.2 NTA Screening Subcommittee – Charter Develop a preliminary screening tool by July 2008. (No change from charter submitted with VSPC Annual Report.) 8

9. 3.3 Energy Efficiency & Forecasting Subcommittee The committee has met twice, January 9 and January 17, and has addressed the following: • Draft letter to PSB regarding input on the scope of EEU activities under Paragraph 61 of the MOU. The letter was ultimately finalized with input of the full VSPC and submitted on February 1. • Confidence levels of EEU forecasts: Participants recommended that, in its DSM forecast due to be filed May 1, 2008, the EEU be allowed to characterize the confidence level of its forecast, rather than having the confidence levels directed by the Board or other stakeholders. • The subcommittee (together with Transmission) determined what sub-state load zones should be recommended for use in the EEU DSM forecast, and worked with the utilities to set a date by which sub-state customer information could be provided to the EEU. This information was included in the Paragraph 61 letter to the PSB. • Amendments were made to the charter (as shown in the next slide). • Status of customer information by load zone to the EEU? 9

10. 3.3 Energy Efficiency & Forecasting – Charter • Purpose and tasks – The Forecasting Subcommittee was created to provide the VSPC with technical guidelines for performing load forecasts, especially with regard to the incorporation of Demand Side Management and Demand Response programs. This subcommittee will specifically be responsible for the following:  • Provide guidelines for developing baseline forecasts (before Demand Side Management and Demand Response programs) of area-specific or statewide peak load; • Provide guidelines for integrating DSM, DR and other load management programs, into area-specific or statewide load forecasts; • Provide guidelines for determining what DSM and DR programs are appropriate to include in peak load forecasts; • Provide guidelines for characterizing the likelihood of projected peak loads (e.g., using 50/50 and 90/10 weather events); • Provide guidelines for assessing the risk and uncertainties associated with peak forecasts in the context of the decision to build or not build new transmission/distribution; • Identify appropriate complementary data sources, such as building permits/applications, sewer and water capital budgets that may inform the forecasts; • Identify appropriate methods for sharing information among VSPC subcommittees, Vermont utilities, state government and other entities, in regard to the relevant constrained areas, the relevant loads and the impacts of DSM and DR programs on the constrained areas; • Provide a summary of the differences in the various peak forecasts available for Vermont and its sub areas; • Provide guidelines for integrating non-transmission alternatives into peak load forecasts. • Provide specific recommendations to the Vermont Public Service Board as described in Paragraph 61 of the Board’s Memorandum of Understanding in Docket 7081. • Full charter in Attachment 3.3.1. 10

11. 3.4 Generation Subcommittee – Charter Developing generic generation costs and market revenue estimates related to potential generation resources to be utilized in the detailed Non-Transmission Alternative (NTA) Analyses. • Evaluating and updating these generic assumptions as appropriate. Developing criteria and standards to be used by VELCO and/or lead Distribution Utilities (DU’s) in the completion of Detailed NTA analyses to help guide the level of effort that should be exerted in evaluating specific generation alternatives within the detailed NTA analysis. • Developing and maintaining lists of viable generation options within each load zone identified by VELCO. • Identifying fuel, size, or other restrictions to generation development in specific regions of Vermont. • Developing and maintaining protocols for treatment of distributed generation resources such as Combined Heat & Power (CHP), solar, residential wind, etc. within NTA analyses Reviewing and assessing the reasonableness of the generation assumptions for new and existing resources in VELCO’s load flow model. • Evaluating treatment of existing generation to insure accurate outage rate estimates. • Providing guidance related to inclusion of future generation proposals. • Providing input into equivalence determinations. Acting as the entity that receives “open door” proposals within the VSPC, and provides VELCO and/or Lead DU’s with recommendations (based on the committee’s evaluation of technical, economic, feasibility, or other considerations) related to inclusion of such proposals in future long range transmission planning assumptions and detailed NTA Analyses. • Acting as a sounding board and clearing house for information related to detailed NTA generation analyses on specific projects when requested. • Receive presentations from lead DU’s on generation option analyses, and provide feedback on assumptions. • Provide information on potential or known generation options. 11

12. 3.5 Transmission Screening Subcommittee • Project priority list must be adopted by the VSPC and submitted to the PSB. (Draft, attachment 3.5.1) • ¶51 of MOU: Following the filing of a Plan under 30 V.S.A. § 218c(d), and given a proposal from the Affected Utilities, the VSPC will create a priority list concerning Reliability Deficiencies identified in the Plan, which list shall be promptly filed with the Board for its information along with any comments from VSPC participants. For each Reliability Deficiency included on the list, the filing shall at a minimum state: (a) the reason for the priority assigned to the deficiency; (b) if no likely Transmission solution has yet been identified, the date by which further analysis of Transmission solutions to the deficiency is proposed to be completed; (c) the date by which NTA analysis is proposed to be completed; and (d) the date by which a decision will be made concerning solution selection, implementation strategy, and cost allocation. 12

13. 3.5 Transmission Subcommittee – Charter The Transmission sub-committee shall be a standing committee of the VSPC tasked with overseeing the following actions: • Update electric system model, including load, generation, and system topology. • Advise the VSPC regarding transmission planning studies including • Assumptions regarding load, Generation, and system topology • Criteria that dictate how to evaluate system performance • Solutions to mitigate system concerns identified • Review and monitor system performance and other concerns that are not project specific, and recommend solution strategy as appropriate. • Advise the VSPC regarding preliminary and detailed analyses of non-transmission alternatives (NTA) that would defer or avoid a transmission solution in whole or in part (i.e., a hybrid NTA/transmission solution). • Advise the VSPC regarding the viability of NTAs as a solution to the reliability concern to be addressed. • Advise the VSPC regarding the parameters of an NTA that would meet criteria, and therefore postpone the transmission solution. • Advise the VSPC regarding the parameters of an NTA that would achieve Equivalence with the transmission solution. • Advise the VSPC regarding Affected Utilities. • Provide data for the preparation of the annual report. Full charter, Attachment 3.5.2 13

14. 3.6 Public Participation Subcommittee –Summary of 1st Quarter 2008 Work • The committee met on December 19, 2007, and February 20, 2008 • The following items were discussed: • Role of the Public Participation Subcommittee—doing vs. overseeing • Subcommittee Charter: Approved by subcommittee for VSPC ratification • Internal and external VSPC communication—review of draft of the VSPC web site • Alternatives to in-person subcommittee meetings—phone, WebEx, FacilitatePro • Subcommittee input on VSPC Annual Report and EEU scope issue • VSPC membership and attendance; recruiting alternates for VSPC public members • Committee members’ experiences with public involvement processes—what worked well and what could be improved. The subcommittee heard reports and updates on ongoing public engagement processes: • “Vermont’s Energy Future” • East Avenue/Gorge Area Reinforcement Outreach • Southern Loop Public Engagement • Community groups as resource for public engagement • Ways to notify and inform the public of the VSPC’s work • The next Public Participation Subcommittee meeting is scheduled for Wednesday, April 9 from noon to 2:00 p.m. 14

15. 3.6 Public Participation Subcommittee – Charter • The role of the VSPC Public Participation Subcommittee is to act in compliance with the Docket 7081 MOU as a resource in the development, implementation and evaluation of public involvement with the Vermont System Planning Committee (VSPC). The Subcommittee will provide its analysis and input to the full VSPC in all matters within the public participation arena. Specific roles include: • Consulting with VELCO in planning public involvement in the Long-Range Transmission Plan (Step 5). • Consulting with affected utilities (including VELCO) in public involvement in the project-specific Detailed NTA Analysis (Step 8) and Solution Selection (Step 9). • Monitoring VSPC-related public outreach to ensure it is designed and implemented consistent with the principles in ¶¶ 91-97. • Continually reviewing and evaluating experiences with public involvement on energy-related issues of the VSPC and other groups, and incorporating lessons learned. • Providing oversight of communications (website, media, etc.) regarding the work of the VSPC to ensure clarity, comprehensiveness and transparency of the VSPC process to two distinct target audiences: committee and subcommittee members (internal communication); and the public (external communication). As adopted by the Subcommittee 12/19/07 15

16. 3.7 Technical Coordinating Subcommittee Draft letter from VSPC to ISO-NE regarding regional treatment of NTAs, Attachment 3.7.1 Relevant statutory language from Act 61 of the 2005 General Assembly: Sec. 8.  ADVOCACY FOR REGIONAL ELECTRICITY RELIABILITY POLICY It shall be the policy of the state of Vermont, in negotiations and policy‑making at the New England Independent System Operator, in proceedings before the Federal Energy Regulatory Commission, and in all other relevant venues, to support an efficient reliability policy, as follows: (1)  When cost recovery is sought through regionwide regulated rates or uplift tariffs for power system reliability improvements, all available resources – transmission, strategic generation, targeted energy efficiency, and demand response resources – should be treated comparably in analysis, planning, and access to funding. (2)  A principal criterion for approving and selecting a solution should be whether it is the least-cost solution to a system need on a total cost basis. (3)  Ratepayers should not be required to pay for system upgrades in other states that do not meet these least-cost and resource-neutral standards. (4)  For reliability-related projects in Vermont, subject to the review of the public service board, regional financial support should be sought and made available for transmission and for distributed resource alternatives to transmission on a resource-neutral basis. (5)  The public service department, public service board, and attorney general shall advocate for these policies in negotiations and appropriate proceedings before the New England Independent System Operator, the New England Regional Transmission Operator, the Federal Energy Regulatory Commission, and all other appropriate regional and national forums.  This subdivision shall not be construed to compel litigation or to preclude settlements that represent a reasonable advance to these policies. (6)  In addressing reliability problems for the state’s electric system, Vermont retail electricity providers and transmission companies shall advocate for regional cost support for the least cost solution with equal consideration and treatment of all available resources, including transmission, strategic distributed generation, targeted energy efficiency, and demand response resources on a total cost basis.  This subdivision shall not be construed to compel litigation or to preclude settlements that represent a reasonable advance to these policies. 16

17. 3.7 Technical Coordinating – Charter The Technical Coordinating Subcommittee acts as a bridge among the various other subcommittees to explore crosscutting and overlapping issues that may come before the other subcommittees and the full committee. The Technical Coordinating Subcommittee can serve as a microcosm of the whole process; it can allow something short of having to convene the whole VSPC to get some guidance and direction on an issue. The overall charge to this group is to coordinate and ensure that the standing subcommittees and project study groups are working in a coordinated and positive way.  A secondary role for this subcommittee is to cover cross-cutting issues that are not neatly placed in one of the other subcommittees.  This subcommittee serves as an ad hoc filter for the work of other committees, assisting in framing issues for consideration by the VSPC. Specific tasks will include: • Provide guidance on all cross-cutting, detailed technical assumptions. • Help to set work priorities of the other subgroups to fit the needs of other subcommittees . • Serve as a bridge between the individual utilities and the subgroups on issues that affect more than one subgroup (so that tasks can be efficiently moved forward). • Review the assignments/responsibilities of the other standing subcommittees for overlap and/or gaps. • Frame for VSPC consideration issues of general concern such as equivalence and cost allocation . • Recommend additional subcommittees or project study groups. Full charter, Attachment 3.7.2 17

18. 3.7 Technical Coordinating Subcommittee • Proposal for VSPC to meet with and brief the Public Service Board and/or PSB staff. • VSPC approval for creation of the Coolidge Connector Interim Demand Response Project Study Group. • Proposed flow of projects through the VSPC process: • Projects screened out by NTA screening with concurrence of Transmission Subcommittee will come to TCSC for review of the screening and teeing up for briefing full VSPC. • For projects screened in for full NTA analysis, TCSC will facilitate opportunity for other subcommittees with an interest to participate in further review. 18

19. 4.0 Project Study Group Report • Coolidge Connector Interim NTA Project Study Group has met twice. • Reps of the following groups are participating: BED, CVPS, DPS, GMP, VEC, VELCO, VPPSA, VSPC public member & WEC. • Discussion is underway about project details, utility participation and cost allocation. A report from the group, and a request for VSPC action if needed, is expected to come to the June meeting of the VSPC. 19

20. 5.0 Administrative/Staff Report 20

21. 7.2 Taft Corners Phase II Project • Project Description and Need • Add 1 transformer (115-12.47 kV), buswork, 3 circuit breakers, and distribution switchgear/equipment within existing substation as per plans in ’03 docket 6839 • Needed to increase capacity of GMP & VEC distribution systems, and replace aged VEC equipment, to meet projected load growth in Williston area by summer ‘09 • Project and related distribution upgrades will improve system capacity and reliability for areas of: Williston, St. George, Shelburne, Technology Park in So. Burlington, & So. Burlington load south of I89 • Baseline condition in ’06 Long Range Plan 21

22. 7.2 Taft Corners Phase II Project • Area Specific Collaborative • 1/03 – 06 docket 6801 • Investigation of energy efficiency, load control, & distributed generation. Discussion that alternatives were not viable/economic, therefore proceeding with distribution upgrade • CPG request planned for 4/08 and construction in winter • Cost estimate being developed and NTA analysis updated • Requesting ISO-NE approvals • MOU exemption for NTA analysis and public outreach, to avoid delay and unnecessary expenses. Minimal impact to public given current substation screening • Notifying Town of Williston and CCRPC and posted info. on VELCO website 22