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April 22, 2002 for SSG – WI TPG Portland, Oregon

Central Arizona Transmission Study. CATS. April 22, 2002 for SSG – WI TPG Portland, Oregon. Central Arizona Transmission System (CATS) Study. Study Background.

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April 22, 2002 for SSG – WI TPG Portland, Oregon

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  1. Central Arizona Transmission Study CATS April 22, 2002forSSG – WI TPGPortland, Oregon

  2. Central Arizona Transmission System(CATS) Study

  3. Study Background • Jan 2000 ACC Power Plant and Transmission Line Siting Committee – Workshop on the Present and Future Electric Transmission Needs for the State • March 2000 AZ utilities meet and discuss concept of regional transmission study • June 2000 Kickoff CATS meeting • July 2001 CATS Phase I completed • August 2001 CATS Phase 2 initiated

  4. Background The Central Arizona Transmission System(CATS) Study is a collaborative regionalstudy conducted to address energy deliveryand increasing energy demands for CentralArizona in an environment of deregulationand emerging electric utility competition. The purpose of this coordinated approachis to develop a high level transmission planfor Central Arizona that maximizes regionalbenefits, while making efficient use of theexisting transmission system.

  5. Study Participants • Arizona Corp. Commission • APS • TEP • SRP • AEPCO • WAPA • PNM • Reliant Energy • Williams Energy Mkfg &Trading • Industrial Power Tech. • Arizona Power Authority • Power Up Corp. • Desert Energy • NRG • Southwestern Power Group • Citizens Utilities • PPL • Allegheny Energy supply • AES • Pinnacle West Energy • Mountain County Co Generation • Trans - Elect • Panda Energy • Teco Energy • PDE • Duke Energy & Trading • ED #3 & MSIDD

  6. Central Arizona Transmission System(CATS) Participants Objectives • Improve the use of the existing transmissionsystem for future load growth in Phoenix,central Arizona and southern Arizona. • Increase the power transfer import level intothe Phoenix area. • Increase the power transfer import level intothe Tucson area. • Increase the power transfer capability betweenthe Phoenix and Tucson areas. • Encourage future generation additions south ofPhoenix and north of Tucson. • Provide additional transmission capacity toand from the Palo Verde hub

  7. Approved 5,350MW Announced 2,900MW Total 17,150MW Arizona Generation Projects Commercial 2,000MW Under Construction 6,900MW Hopi Kingman Flagstaff BullheadCity Griffith Springerville SouthPoint Payson Red Hawk Harquahala Kyrene Phoenix WestPhoenix Santan Mesquite La Paz ArlingtonValley Sundance Gila River CasaGrande GilaBend Gila Bend Yuma DesertBasin Not Approved or Withdrawn – 5100MW Big Sandy Montezuma Signal Peak Toltec Wellton-Mohawk Saguaro 3 Bowie Tucson Vail Maestros Basis – Status as of April 2002

  8. CATS Study Challenges • Study worka. Non traditional study - future generation and use of system not known b. Transmission plans are dependent on resource plans c. Who will do the work? • Who should be a study participant? • How will results be implemented? • Develop incentives to build new transmission Continued…

  9. CATS Study Challenges • Business rules are changinga. FERC rule making b. Economy c. Enron / Anderson • Key decision factors not knowna. Who approves the plan b. Funding c. Approval to construct • Work within existing organization and paradigms

  10. Study Philosophy • Processa. Open to all interested stake holders b. Keep study manageable c. Work from common study plan & data base d. Evaluate all reasonable alternatives e. Conduct a high level scoping study • State regulators part of process • Facilitate transmission development • Interested participants develop & justify the partof the vision or plan that brings value to them

  11. Study Goals • Serve future customers in Central Arizona • Make more efficient use of existingtransmission system • Develop long term transmission plan thatstretches limits • Facilitate development of transmission • Encourage generator development thatsupports transmission

  12. Study Methodology • Develop study objectives & goals • Develop study options / alternatives • Prepare study plan • Build & benchmark base case • Stress different parts of the system and different optionsor alternatives for multiple generation scenarios • Group problems and solutions • Create set of reasonable system expansion options • Create high level vision or plan • Continue to refine alternatives • Create and implement expansion strategy

  13. Phoenix Yuma Tucson Central Arizona Transmission System(CATS) Study Areas San Juan Glen Canyon Navajo Four Corners Mead McKinley Mohave Cholla Coronado Westwing PaloVerde Pinnacle Peak Springerville Silver King Kyrene Liberty Phase II North Gila Saguaro Phase I Greenlee Tortolita South Vail

  14. Phoenix Yuma Tucson Central Arizona Transmission System(CATS) Generation Areas San Juan Glen Canyon Navajo Four Corners Mead McKinley Mohave Cholla Coronado Westwing PaloVerde Pinnacle Peak Springerville GEN C1 Silver King GEN A Kyrene Liberty GEN B North Gila Saguaro Greenlee Tortolita South Vail GEN C2

  15. Central Arizona Long Term Vision

  16. Implementation ofCATS Status

  17. Winchester Substation Winchester

  18. Palo Verde Southeast Valley Project Palo Verde SoutheastValley 500kV

  19. Mobile Substation Palo Verde SoutheastValley 500kV Mobile

  20. Increase Capacity to Tucson Connect new 500kVline to Winchester Saguaro Connect new 500kVline to Saguaro Winchester

  21. CATS Benefits • Not practical to do alone • Forum for open exchange of needs, ideasand concepts • One place where generation developers andtransmission planners can communicate • Positive contribution by all participants • Synergy from working together – developeda better plan • Common vision for future development oftransmission system in Central Arizona • Customer get best of the all worlds • Supply • Reliability • Lower environmental impact

  22. Conclusion • It works • Only evaluate what folks want to study • No idea turned down • Provides a valuable way for non-utility stakeholders to be involved in the development of thetransmission system • Provided framework & vision for the future • Projects that meet individual needs are fundedand move forward • One of few ways for all parties to communicate-crosses over the wall • State Commissions contribute by providing inputand receiving valuable information • Builds consensus and developed a better plan

  23. Question ?

  24. Palo Verde to Southeast Valley ProjectAn Overview

  25. Project Description As a result of the CATS Study, SRP is proposing anew high voltage power line project that will include: • A 500-kilovolt (kV) power line from the Palo VerdeHub (Hassayampa Switchyard), located west of Phoenix, to the southeastern edge of the Valley (northern Pinal County) • A 500/230 kV substation at a to-be-determined site in the southeastern edge of the Valley (northern Pinal County) • A double-circuit 230-kV power line from the new 500/230 kV substation to the Browning Substation

  26. Project Benefits • Serves growth and power needs of CentralArizona residents and businesses • Increases region’s power import capabilityand improves transmission system reliability • Accommodates existing or planned electricsupply and delivery facilities • Facilitates opportunities to connect with new power sources

  27. BOB/PV-SEV Project Objectives • Serve growth in SRP’s Southeast Area • Serve growth in Central Arizona • Increase the Valley import capability • Accommodate planned resource options • Facilitate opportunities for others tointerconnect new resources

  28. Planning Hierarchy Information (Plans) Coordination WECC PLANNING Criteria WestConnect Planning Criteria Arizona Planning (Optional) Criteria SRP Planning

  29. Planning Hierarchy Plans to meet the needs for the: West Region State Local WECC WestConnect State of Arizona (Optional) SRP Planning

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