Arizona Renewable Transmission Task Force BTA Response

1. Arizona Renewable Transmission Task ForceBTA Response Chairman of SWAT RTTF Peter Krzykos ACC Meeting Oct23. 2008

2. BTA Order Decision No.69389 “IT IS FURTHER ORDERED that in the next BTA, Commission regulated electric utilities, in consultation with the stakeholders, should prepare an assessment of ATC for renewable energy and prepare a plan, including a description of the location, amount and transmission needs of renewable resources in Arizona, to bring available renewable resources to load.”

3. SWAT RTTF Phase #1Integration of Renewable Resources into Arizona Transmission NetworkBTA Response • Three Parts to the BTA Response • Assessment of ATC in Arizona • Assessment of maximum potential of renewable resources in Arizona • Develop potential transmission configuration to deliver the renewable resources in Arizona • To comply with FERC 890 order it was decided to use the Southwest Area Transmission (SWAT) open stakeholder process to address BTA Order • Renewable Transmission Task Force (RTTF) was formed as a subcommittee of SWAT.

4. SWAT RTTF Phase #1AZ BTA Order Response Task Force Meetings • Task force had two open stakeholders meetings( October 8th and November 16th 2007) • List of attendees: • Arizona Corporation Commission • Utilities • Arizona Public Service • Salt River Project • Tucson Electric Power • Southwest Transmission Corporative • Southern California Edison • Developers (Renewable Energy Companies) • Skyfuel • BP Alternative Energy • Foresight Wind • West Wind Wires • Ausra • Solar Mission • Interwest Energy Alliance • Other Stakeholders • National Renewable Energy Laboratory (NREL) Consulting Groups • Genesee Consulting • PDS Consulting • K R Saline • Stanley Group • WSES Consulting • 20-30 people were at each meeting • Stakeholders and utilities participated in development of a resource map, transmission map, and assess the ATC in Arizona in an open forum to address the BTA

5. SWAT RTTFPart 1 -ATC Assessment • This information was developed during stakeholder workshops held October 8th and November 16th 2007 and includes utility (APS, SRP, SWTC, and TEP) ACC staff and stakeholder input. • Available Transfer Capability (ATC) has been gathered for each utility in Arizona as of June 2007 • ATC is a dynamic number that can change from day to day and reflects current market condition

6. Arizona EHV Transmission ATC (as of June 2007) 356 Shiprock Navajo Glen Four Corners Canyon McCullough 0 0 Marketplace 0 Mead Moenkopi 556 125 Coronado Eldorado Cholla 0 Preacher 372 Canyon 75 Springerville 102 Pinnacle Westwing Peak Palo Phoenix Verde 0 Devers 230 kV Rudd Browning 0 System Silver 787 Liberty King Kyrene Imperial Saguaro Valley Greenlee North Gila Tortolito Transmission Line Voltage Level 500 kV 345 kV ATC in MW 0 Tucson 138 kV System 0 South Vail

7. SWAT RTTFPart 2 - Resource Projection • The renewable resource map was developed during workshop meetings on Oct 8th and Nov 16th 2007 • A renewable resource map displaying areas where resources development potentially could occur and was developed with input from three specific areas • The Arizona Renewable Energy Assessment recently prepared for APS, SRP and TEP by Black and Veatch (2007) • The queue for renewable resource in Arizona requesting potential interconnection (as of October 15th 2007) • Stakeholder/developer input on prospective development opportunities. • The # of MW display on the map is the highest out of the three inputs.

8. 13 1 Solar CSP/Yuma – 800MW 2 Solar CSP/Stoval – 1,900MW 3 Solar CSP/Phoenix – 800MW 5 4 Solar CSP/Tucson – 800MW 6 Flagstaff 5 Wind/Project KS – 18MW 7 8 6 Wind/Project RS – 140MW 9 11 7 Wind/Project BR – 158MW 10 8 Wind/Project CV – 597MW Wind/Project BH – 46MW 9 Phoenix 10 Wind/Project GP – 31MW 3 11 11 Biomass/Biogas – 60MW (22 sites) 2 12 Geothermal/Clifton – 35MW 12 1 4 13 Hydro – 82MW (7 sites, 90% @ GC) Tucson Black & Veatch SummaryProjected Resource Locations September 21st 2007

9. B & V Summary Filters • Solar Thermal • Equipment availability/supply chain • Engineering support • Project economics • Proximity to adequate transmission • Land availability/terrain slope/proximity to sensitive areas • Wind • Equipment availability/supply chain • Wind Class/Capacity factor • Project economics • Proximity to adequate transmission • Proximity to environmental sensitive areas

10. Arizona Renewable Resource Queue

11. Arizona Renewable Resource Queue As of 10/15/2007

12. SWAT RTTFPart 2 - Resource Projection • The map is intended to provide an overview of the potential, renewable resources withinArizona, which include wind, solar, biomass, hydro and/or geothermal and identifies those resources as clusters. • Since both geothermal and biomass/biogas opportunities are small relative to both solar and wind opportunities, they have been included within the total which is described as generally wind and solar clusters.

13. Potential Arizona Renewable Resources

14. Quality of Wind Resources In Arizona *Developed by DOE and NREL • At 50m elevation, Class 4 or higher is typically used for utility scale wind generation (NREL). • At 80m elevation, Class 3 areas could have higher wind power class because of possible wind shear (NREL) • Arizona has predominately Class 3 or lower wind resources Taken Directly from the United States Department of Energy website: http://www.eere.energy.gov/windandhydro/windpoweringamerica/maps_template.asp?stateab=az

15. Quality of Solar Resources In Arizona • Potentially sensitive environmental lands, major urban areas, water features, and areas with slope >1% were excluded to identify those areas with the greatest potential for development. (NREL) Taken Directly from NREL website: http://www.nrel.gov/csp/images/1pct_csp_az.jpg

16. SWAT RTTFPart 3 - Transmission System • During the October 8th and November 16th 2007 meetings, transmission alternatives for bringing the renewable energy resources to load were developed. • Final transmission configuration represents the potential transmission lines that would be necessary if all of the renewable resources were to be developed in Arizona.

17. Development of Final Transmission Configuration • In open stakeholder process threeengineering groups were formed to brainstorm possible future transmission scenarios in the Arizona • Each of the three groups independently created a transmission map • A final transmission configuration was approved in SWAT stakeholder meetings

18. SWAT RTTFPart 3 - Transmission System • Included in the map are: • existing transmission lines • APS, SRP and TEP 10 year plans • other WECC Projects in Phase II or Phase III of rating process • potential transmission lines to integrate renewable resources

19. Potential Configuration for Transmission to Serve All Available Renewable Resources in Arizona

20. Potential renewable transmission routes

21. Estimated Construction Costs

22. SWAT RTTFPhase #2 – Evaluation and Integration of Renewable Resources of Southwest into Transmission Network • Workshop Meetings held on April 7th and May 19th 2008 • Renewable resource projection development • Potential transmission additions are in development for the entire SWAT area • Renewable Taskforce has been extended to the entire SWAT area and includes Arizona, New Mexico, Nevada and Eastern California • Power flow studies will be developed based on the transmission alternatives

23. SWAT Footprint One of the WestConnect Sub-Regional Planning Groups http://www.westconnect.com SWAT SouthwestAreaTransmission

24. Western Transmission Planning Today WECC (PCC & TEPPC) NWPP Area WGA & CREPC NTAC Col.Grid NTTG West Connect SSPG CCPG WIA PSPA CAISO RETI SWAT LADWP CEDA Others RETA FERC Transmission Barriers Conference 10/14/08 24

25. Potential Resource Location

26. Arizona Renewable Transmission Task ForceBTA Response Chairman of SWAT RTTF Peter Krzykos BTA Workshop May 22-23 2008