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Transmission Project Updates and Cost Estimate Changes

This update provides information on priority transmission projects, including commitments received, routing changes, environmental concerns, cost estimate changes, and proposed novation. The update also highlights project updates for various transmission owners.

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Transmission Project Updates and Cost Estimate Changes

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  1. Priority Project Update Bruce Rew Vice President, Engineering

  2. Priority Project Overview • Commitments to Construct have been received from all Transmission Owners • Westar Energy, Mid-Kansas Electric Co., and Sunflower Electric Power Corp. propose Novation to Prairie Wind and ITC Great Plains • Routing changes surrounding Medicine Lodge • Environmental/ Right-of Way issues • Cost Estimate changes • Multiple causes, including re-routing, reactive support, and refining project scope within shared projects

  3. Nebraska City - Maryville - Sibley • KCPL GMO and OPPD Project Updates • Added reactive support to updated project estimates • Addition of reactive support has caused increase in cost for both KCPL GMO and OPPD • KCPL GMO forecasted contingency for higher labor, material, equipment costs • Estimates are preliminary due to limited design work, siting and procurement activities • OPPD has refined project scope and updated project estimates • Uncertainty of line route and river crossing/ROW issues increases cost estimate

  4. Hitchland - Woodward • OGE and SPS Project Updates • SPS and OGE divided construction at approximately 30 miles for SPS, 90 miles for OGE • Original OGE estimate contained total 120 miles of project • SPS estimate lower than original OGE estimate for their 30 mile section • SPS estimates are preliminary • Limited experience in double circuit 345kV construction

  5. Woodward - Comanche County/Medicine Lodge • MKEC and OGE Project Updates • Routing Changes due to environmental concerns • Woodward line proposed to terminate at Medicine Lodge instead of Comanche County • Line to move eastward and increase by approximately 40 miles • Additional line length causes significant cost increase • Proposed Novation of portions of project to Prairie Wind and ITC Great Plains • Prairie Wind will be involved in line construction, ITC Great Plains for substation

  6. Spearville - Comanche County - Medicine Lodge - Wichita • MKEC, SUNC, and WR Project Updates • Proposed Novation of portions of project to ITC Great Plains and Prairie Wind • Added reactive support to project estimates • ITC GP Substation costs increased with new reactive compensation • ITC GP still optimizing studies • Routing changes for new substation in Wichita • Prairie Wind estimates additional 5 miles of line to substation • Increased cost for additional line and substation

  7. Priority Projects Unchanged • NW Texarkana – Valliant • No changes proposed by AEP • Tulsa Reactor • No changes proposed by AEP

  8. Project Cost Summary

  9. Updated B/C Ratio • Original cumulative B/C = 1.78 • Based on new cost estimates, Cumulative B/C = 1.58

  10. Transmission Owner Cost Changes

  11. Bruce RewVice President, Engineering501-614-3214brew@spp.org

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