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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. Panhandle CREZs and Transmission Plans.
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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 Panhandle CREZs and Transmission Plans
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
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
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 @ $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
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.
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.
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.
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.
SPP Expansion Plans • SPP’s 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
ERCOT and CREZs in the News • RESTRUCTURING TODAY March 13, 2007 • Lead Story HeadlineBarry 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, we’ll 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 2New 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 HeadlinePUC finds TXU may have abused market power in 2005 • Page 2 HeadlineBarton fears TXU buyout may mess with Texas • “ERCOT isn’t under FERC’s jurisdiction now since it’s doesn’t 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 ERCOT’s independence is being “used as a weapon against ratepayers”.
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.
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 ERCOT’s system and customers from intermittent nature of wind resources and allows dynamic scheduling capabilities to improve performance of existing ERCOT system.
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 ETT’s 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.
Questions? Jay CasparyDirector, Engineering501-614-3220jcaspary@spp.org