Nebraska meeting November 19, 2007 Brian Parsons Brian_parsons@nrel.gov

1. Transmission and Wind Energy Nebraska meetingNovember 19, 2007 Brian Parsons Brian_parsons@nrel.gov

2. Wind Systems Integration at NREL National Wind Technology Center Systems Integration Team Bulk power focus (not Distributed Interconnection) Advising PUCs and the power industry as technical reviewers to integration studies Participate in regional transmission, integration studies Data resource and methods development

3. Transmission is an issue for all new generation • RTO frameworks evolving • Issues • Cost allocation: • projects vs. network • Reliability vs. economy • Cost recovery • Siting and permitting • Development timing: chicken and egg problem

4. Transmission and Wind If you love wind, you have to at least like transmission Wind is location constrained – good wind not necessarily close to existing transmission Issues: Build transmission if generator requests, but wind can’t get financing unless transmission exists Wind build times shorter than transmission but wind projects smaller than transmission Long-term wind buildout: single larger line more cost-effective than several smaller lines Transmission is a public good These issues have been ‘solved’ in Texas with CREZ process

5. Renewable Energy Zones/Build Transmission First Initiated by Texas Competitive Renewable Energy Zones Colorado Energy Resource Zones California Renewable Energy Transmission Initiative Southwest Area Transmission Renewable Energy Task Force (Arizona, New Mexico, Southern Nevada, Southeastern California) Broader regional study proposed for Western Governor’s Association

6. Large Transmission Investments Have Very Small Retail Bill Impacts Total $65.75 Total $66.62 Transmission 6% Impact from $12.6 billion increase (20%) in Transmission Infrastructure Generation 74% Distribution 20% Source: FERC Average Monthly Retail Bill $ / 1,000 kWhs

7. Balancing Authority Cooperation • Northern Tier Transmission Group: Area Control Error (ACE) sharing agreement • WestConnect: virtual balancing area consolidation study and transmission rate de-pancaking experiment NTTG WestConnect

8. FERC 890 Ruling – Impacts for Wind Integration • Eliminates Imbalance penalties for wind and solar • Establishes conditional firm as part of the OATT in non-Independent System Operator areas • 2 year contract term limits value • Transmission provider must define and quantify periods of potential curtailment, possible basis includes system conditions, or hours of month • Conditional firm concepts and products under development by grid entities • Requires consistency, standards, and transparency of ATC calculations • Makes regional planning mandatory

9. FERC Grid Code and WECC • FERC final order 661/661a • Issued 12/05 • Allows regional variation • Low Voltage Ride Through • Phased in standard • WECC now considering zero voltage for 9 cycles, with recovery slope, and is adding a High Voltage standard • VAR control: +/- 95% if grid study shows a need • SCADA req. defined Code specifics are still evolving, but largely mitigate stability issues

10. Vision: 20% of electric energy from Wind • Over 300 GW of new wind plants, 7+ GW in Kansas • Existing transmission system is inadequate • Conceptual 765 kV EHV overlay examined by AEP • $60 billion over 20 yrs • 19,000 mi of line • Delivers additional 200-400 GW • Current transmission investment $7 billion/yr and growing • No fundamental technical barriers to the integration of 20% wind, but • There needs to be a continuing evolution of transmission planning and system operation policy and market development

11. Forums • UWIG: Nebraska utilities are members, but engineers are not active www.uwig.org • AWEA Transmission and Turbine O&M groups • DOE/NREL Wind Powering America Program state activities • National Wind Coordinating Collaborative • South Dakota meeting, November 29-30, Sioux Falls

12. Eastern Wind Integration Study