Renewable Energy Transmission Initiative RETI

1.  Renewable Energy Transmission Initiative (RETI)

2. RETI Stakeholder Driven Collaborative Planning Process Identify and Rank Competitive Renewable Energy Zones (CREZ) Transmission Plans to Access CREZ Include California & Adjacent Lands Inform Renewable Generation & Transmission Line Permitting & Planning CPUC, POU, & Federal Transmission Permitting CPUC Procurement re IOU Renewable Contracts CEC Transmission Corridor Designation CAISO Transmission Plan & Queue Reform CEC, Local & Federal Renewable Generation Permitting STAKEHOLDER COLLABORATIVE- Commitment to open, inclusive, & transparent process, on an expedited schedule. IDENTIFY AND RANK- Relative Ratepayer Benefits and Environmental Impacts associated with different Renewable Development options. INFORM- Establish a Rigorous Analytical Basis to Inform Regulatory and Planning Processes. Queue ensures open access�. However, queue does not address Developable Potential, Cost Effectiveness, Best Value for Ratepayers, and least amount of Environmental Impacts. Also does not address what the best combination of generation and transmission should be. RETI will answer these questions, Not binding on any party but will be influential. Inspired by SCE Advice Letter (approved as modified by CPUC Res. E-4052) and two CEC PIER contracts- similar scope/issues STAKEHOLDER COLLABORATIVE- Commitment to open, inclusive, & transparent process, on an expedited schedule. IDENTIFY AND RANK- Relative Ratepayer Benefits and Environmental Impacts associated with different Renewable Development options. INFORM- Establish a Rigorous Analytical Basis to Inform Regulatory and Planning Processes. Queue ensures open access�. However, queue does not address Developable Potential, Cost Effectiveness, Best Value for Ratepayers, and least amount of Environmental Impacts. Also does not address what the best combination of generation and transmission should be. RETI will answer these questions, Not binding on any party but will be influential. Inspired by SCE Advice Letter (approved as modified by CPUC Res. E-4052) and two CEC PIER contracts- similar scope/issues

3. RETI Organizational Structure Coordinating Committee Stakeholder Steering Committee Plenary Stakeholder Group (Public)

4. RETI Coordinating Committee Dian Grueneich, CPUC Commissioner Traci Bone Jeffrey Byron, CEC Commissioner Chuck Najarian Yakout Mansour, CAISO President and CEO Robin Smutny-Jones Southern California Public Power Authority Northern California Power Agency Sacramento Municipal Utility District

5. RETI Stakeholder Steering Committee Primary Working Group Key Stakeholder Representatives 28 Members- Transmission Owners and Generators Electric Utilities Environmental and Public Interest Groups Federal, State, and Local Permitting Agencies Military Each SSC member represents their class of stakeholders- keeps them informed brings their issues & interests to the table Military Base Operations can conflict with renewable development. Present in renewable areas of CA. Need to Account for their Concerns: Radar, Flight Paths ALSO INTERESTED IN PROMOTING RENEWABLES: Edwards Airforce Base 2000 Acre Solar RFP Issued Needs Transmission Infrastructure Each SSC member represents their class of stakeholders- keeps them informed brings their issues & interests to the table Military Base Operations can conflict with renewable development. Present in renewable areas of CA. Need to Account for their Concerns: Radar, Flight Paths ALSO INTERESTED IN PROMOTING RENEWABLES: Edwards Airforce Base 2000 Acre Solar RFP Issued Needs Transmission Infrastructure

6. RETI Plenary Stakeholder Group All Stakeholders and the Public Review Steering Committee Work Provide Feedback

7. RETI Structure CPUC and CEC Contractors also support SSC.CPUC and CEC Contractors also support SSC.

8. Contractor Support CEC PIER Funded CEERT Contract RETI Coordinator Expanding and Dynamic CPUC Funded Black & Veatch Contract Prepare Phase 1 Reports Under Direction of SSC

9. RETI Scope of Work Phase 1 (8/31/09 completion target) Identification and Ranking of CREZs Phase 1A: Criteria, Assumptions & Methodology Phase 1B: CREZ Identification and Ranking Phase 2 (3/09 completion target) Refinement of CREZs for Priority Zones Development of Conceptual Transmission Plans Phase 3 (2010 completion target) Detailed Transmission Plans of Service CREZ : �A Competitive Renewable Energy Zone is defined as an aggregation of renewable projects that, when combined, have improved economics. A CREZ must have the following attributes: � Multiple renewable generating projects that share a common transmission interconnection point; � Projects with similar development time frames; and � When combined, have improved economics over individual projects.� CREZ : �A Competitive Renewable Energy Zone is defined as an aggregation of renewable projects that, when combined, have improved economics. A CREZ must have the following attributes: � Multiple renewable generating projects that share a common transmission interconnection point; � Projects with similar development time frames; and � When combined, have improved economics over individual projects.�

10. RETI Scope of Work Phase 1: Identification & Ranking of CREZs Assess developable renewable resources Develop CREZ Selection Criteria (Phase 1A) Develop Study Assumptions/Methodology (1A) Integrate Environmental Factors (1A & 1B) Identify CREZs (1B) Create short-list of top-priority CREZs (1B) CREZ Identification & Characterization: Two or more Multiple Renewable Projects Aggregated to Create CREZs. Lead to Formation in Common Areas. �A fundamental criterion for a CREZ or sub-CREZ is that it must have improved economics over individual projects included in the CREZ. If adding a project to a CREZ (or sub-CREZ) worsens the economics for either the project added or the projects that are already in the CREZ, the project will not be included in the CREZ.� So�. Transmission Requirements Economics Timing: Short, mid, & long-term Working Group/BV Developed Assumptions: Current generation and transmission system assumptions---- �Base case� assumptions: Existing Renewable Resources, permitted, interconnection agreements (6500 MW renew CA = 11%) Lowest generation capacity specified in PPA CA ISO approved Transmission, existing, under construction Queue: considered as indication of commercial interest in general area, interconnection points Cost and Performance assumptions: Capacity factors, capital costs, heat rates, fixed O&M, Variable O&M, Fuel Costs, Levelized Costs Financing Assumptions (life expectancy 20 yrs, depreciation schedule, dept equity, terms, etc = capital cost component Financing incentives- tax deductions, credits, excellerated depreciation Renewable demand (20% w/flexible compliance 2013 and longer term RPS 33%) CREZ Identification & Characterization: Two or more Multiple Renewable Projects Aggregated to Create CREZs. Lead to Formation in Common Areas. �A fundamental criterion for a CREZ or sub-CREZ is that it must have improved economics over individual projects included in the CREZ. If adding a project to a CREZ (or sub-CREZ) worsens the economics for either the project added or the projects that are already in the CREZ, the project will not be included in the CREZ.� So�. Transmission Requirements Economics Timing: Short, mid, & long-term Working Group/BV Developed Assumptions: Current generation and transmission system assumptions---- �Base case� assumptions: Existing Renewable Resources, permitted, interconnection agreements (6500 MW renew CA = 11%) Lowest generation capacity specified in PPA CA ISO approved Transmission, existing, under construction Queue: considered as indication of commercial interest in general area, interconnection points Cost and Performance assumptions: Capacity factors, capital costs, heat rates, fixed O&M, Variable O&M, Fuel Costs, Levelized Costs Financing Assumptions (life expectancy 20 yrs, depreciation schedule, dept equity, terms, etc = capital cost component Financing incentives- tax deductions, credits, excellerated depreciation Renewable demand (20% w/flexible compliance 2013 and longer term RPS 33%)

11. RETI Phase 1 Methodology CREZ Criteria: �Technical and economic characteristics of CREZs reflect the projects that comprise that CREZ. With the exception of transmission cost, the economic characteristics of a CREZ (or sub-CREZ) will simply be the sum or weighted average of the constituent project characteristics. These economic characteristics include: � Capacity (MW)� Generation (GWh/yr)� Capacity factor� Development time-frame � Capital cost� Operating and maintenance costs� Fuel costs (if applicable) � Resource valuation (generation, transmission, energy, capacity) Each CREZ will then be assigned an economic ranking cost, analogous to the ranking cost assigned to each project , and the CREZs will be ranked in comparison to each other and to any individual, stand-alone projects. CREZ Criteria: �Technical and economic characteristics of CREZs reflect the projects that comprise that CREZ. With the exception of transmission cost, the economic characteristics of a CREZ (or sub-CREZ) will simply be the sum or weighted average of the constituent project characteristics. These economic characteristics include: � Capacity (MW)� Generation (GWh/yr)� Capacity factor� Development time-frame � Capital cost� Operating and maintenance costs� Fuel costs (if applicable) � Resource valuation (generation, transmission, energy, capacity) Each CREZ will then be assigned an economic ranking cost, analogous to the ranking cost assigned to each project , and the CREZs will be ranked in comparison to each other and to any individual, stand-alone projects.

12. RETI Scope of Work Phase 2: Develop Conceptual Transmission Plans Expand/Refine CREZ Analysis Siting/Environmental Constraints Renewable Resource Mix Scenarios This is where we see synergy with Corridor Designation Program. Play leading role re corridor analysis. Spin-off Corridor Designation Applications.This is where we see synergy with Corridor Designation Program. Play leading role re corridor analysis. Spin-off Corridor Designation Applications.

13. RETI Scope of Work Phase 3: Detailed Transmission Plans of Service CAISO & POU CAISO Driven Timing linked to 2010 CAISO Transmission PlanCAISO Driven Timing linked to 2010 CAISO Transmission Plan

14. RETI Informs key agency renewable processes. Facilitates Coordination among these key agency processes. CPUC new rulemaking re how CPCN application process will use RETI (08-03-009 & 08-03-010) CAISO: Consider phase 1 results in developing their 2009 Grid Plan. CEC: Phase 2 results will be used in developing 2009 IEPR and SP. The California ISO is a not-for-profit public-benefit corporation charged with operating the majority of California�s high-voltage wholesale power grid. Informs key agency renewable processes. Facilitates Coordination among these key agency processes. CPUC new rulemaking re how CPCN application process will use RETI (08-03-009 & 08-03-010) CAISO: Consider phase 1 results in developing their 2009 Grid Plan. CEC: Phase 2 results will be used in developing 2009 IEPR and SP. The California ISO is a not-for-profit public-benefit corporation charged with operating the majority of California�s high-voltage wholesale power grid.

15. RETI Committee Meetings September 20, 2007- Public kick-off meeting October 29, 2007- SSC Meeting December 17, 2007- SSC Meeting January 22, 2008- SSC & Plenary Meetings February 6, 2008- CC Meeting with Generators February 27, 2008- SSC Meeting March 19, 2008- SSC Meeting March 26, 2008- Plenary Meeting April 16, 2008- SSC Meeting May 21, 2008- SSC & Plenary Meetings June 18, 2008- SSC Meeting July 16, 2008- SSC Meeting [and Plenary?] August 20, 2008- SSC Meeting [and Plenary?]

16. May 21 PSG Meeting Agenda Opening Remarks Commissioners Grueneich and Byron Update on Phase 1A (BV) Status of Phase 1B Work (BV) EWG Status Report (Sierra Club, NRDC) Q and A

17. May 21 SSC Meeting Agenda Adoption of Phase 1A Final Report Discussion of Phase 1B Work Activities EWG Coordination with BV Role of PACT in EWG Work BV Data Needs Consideration of SSC Chair & Co-Chair Roles and Responsibilities

18. RETI Schedule March 2008- Environmental Work Group Formed March 14, 2008- Draft CREZ Assumptions & Methodology Report Issued April 12, 2008- Draft Final CREZ A/M Report Issued April 16, 2008- SSC Accepted Draft Final CREZ A/M Report and and Approved Initiation of Phase 1B Work April 24, 2008- Deadline for Additional Comments to A/M Report May 8, 2008- Deadline to Post Final A/M Report May 21, 2008- SSC to Consider Adopting Final A/M Report August 31, 2008- Phase 1 Ranking CREZ Report Completed March, 2009- Estimated Completion of Phase 2 2010- CAISO Transmission Plan Integrates RETI

19. RETI Information How to register & RETI website: www.energy.ca.gov/reti List Server Enter email address MISSION STATEMENT PARTICIPANTS UPCOMMING EVENTSMISSION STATEMENT PARTICIPANTS UPCOMMING EVENTS