Reflects changes to incorporate Public Policy to meet FERC Order 1000 requirements 09-28-12 NWE Local Transmission Planning Cycle and Timeline Business Practice If there is any difference between this Business Practice and the Tariff (Attachment K 2.3.2), the Tariff is correct. Study Cycle: 8 Quarters Starting in January 2012 Sharing Study Result Q5 Data Collect Decision Reporting Year 2 Prior Cycle Results Data Collect, Goal & Scenario Base Case Develop Q3-6 Technical Study Economic Planning Study Year 1 Local Transmission Plan Sys Planning Cycle Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Interconnect & TSR Study Results Trans Svc & Interconnect Prior Year Results Receive Requests Prioritize & Begin Study Study Finish Study & Report Receive Requests Prioritize & Begin Study Study Finish Study & Report Timeline The typical timeline for NWE’s two-year planning process cycle is shown in the graphic. This timeline displays the approximate time dedicated to each of the planning steps and time when data (load forecast, generation, customer data, will be collected. The following outlines the quarterly process, including the data collection in Quarters 1 and 5. 1. LTP Sequence of Events: Transmission Provider shall use the following timeline in preparing its LTP. 1.1. Quarter 1: Data Collection, Goal and Scenario Definition 1.1.1 Each Transmission Customer taking service under Part II of the OATT, or which has an accepted reservation in the transmission queue to take service under Part II shall provide data as requested by the Transmission Provider. Transmission Provider will gather Network Customers’ projected loads and resources, and load growth expectations (based on annual updates and other information available to it); Transmission Provider’s projected LTP Study Cycle Data Collection Timeline 1 Reflects changes to incorporate Public Policy to meet FERC Order 1000 requirements 09-28-12 load growth and resource needs for its Eligible Customers; Pointto-Point Transmission Service customer’s projections for longterm (greater than 1 year) at each receipt and delivery point (based on information submitted by the customer to the Transmission Provider) including projections of rollover rights; and information from all Transmission Customers and the Transmission Provider on behalf of Native Load Customers concerning existing and planned demand resources and their impact on demand and peak demand. The Transmission Provider shall take into consideration, to the extent known or which may be obtained from its Transmission Customers and active queue requests, obligations that will either commence or terminate during the applicable study window. 1.1.2 Any stakeholder may submit data to be evaluated as part of the preparation of the draft Local Transmission Plan, and uncertainty and other scenarios including alternate solutions to the identified needs set out in prior Local Transmission Plans and Public Policy Objectives and transmission needs driven by Public Policy Objectives. In doing so, the stakeholder shall submit the data during Quarters 1 and 5. The URL for the Instructions for Submitting Alternative Solutions can be found under Section J in http://www.oatioasis.com/NWMT/NWMTdocs/Attachment_K_B usiness_Practice_Links.doc. 1.1.3 Transmission Provider, with input from stakeholders and interested parties, will define the LTP goal and define the uncertainty and other scenarios. 1.1.4 Transmission Provider will post on its OASIS website the basic methodology, criteria, process, its assumptions and databases that the Transmission Provider will use to prepare the Local Transmission Plan. Transmission Provider will also post on it OASIS website a list of transmission needs driven by Public LTP Study Cycle Data Collection Timeline 2 Reflects changes to incorporate Public Policy to meet FERC Order 1000 requirements 09-28-12 Policy Objectives that will be evaluated in the biennial transmission planning process and why other suggested transmission needs driven by Public Policy Objectives will not be evaluated. 1.1.5 Confidential data and information and Critical Energy Infrastructure Information will be protected as required. 1.2. Quarter 2-6: Technical Study 1.2.1 Quarter 2: Transmission Provider, with input from stakeholders and interested parties, will develop base cases that include load and resource data, Public Policy Requirements and transmission needs driven by Public Policy Requirements for the LTP, and Public Policy Objectives for the uncertainty and other scenarios. Customer load, Demand Resource, and generation data received from customers will be included as appropriate in the development of the base case. . 1.2.2 Quarter 5: Transmission Provider will coordinate the Economic Congestion Study results, and new generation interconnection resource study results into the LTP as appropriate. . Any stakeholder may submit comments, additional information about new or changed circumstances relating to loads, resources, transmission projects, Public Policy Objectives and transmission needs driven by Public Policy Objectives, or alternative solutions to be evaluated as part of the preparation of the draft transmission plan or submit identified changes to the data it provided in Quarter 1. The level of detail provided by the stakeholder should match the level of detail described in Quarter 1 above. 1.2.3 Quarter 2-6: Transmission Provider will conduct powerflow, transient stability studies, post transient power flow and other studies. 1.2.3.1 All stakeholder submissions, including Public Policy Objectives and transmission needs driven by Public LTP Study Cycle Data Collection Timeline 3 Reflects changes to incorporate Public Policy to meet FERC Order 1000 requirements 09-28-12 Policy Objectives, will be evaluated on a basis comparable to data and submissions required for planning the transmission system for both retail and wholesale customers, and solutions will be evaluated based on a comparison of their relative economics and ability to meet reliability criteria. 1.2.3.2 Transmission Provider will study the existing transmission system over the 15-year planning horizon and identify reliability concerns. 1.2.3.3 Transmission Provider will identify mitigation and analyze the transmission system with mitigation included. 1.2.3.4 Transmission Provider will collect information from the analysis to be used in Quarter 7 decisions. 1.2.4 Transmission Provider will consider transmission and nontransmission solutions, including transmission solutions driven by Public Policy Objectives, Demand Resource load adjustments, to mitigate for unacceptable reliability performance problems that do not meet planning criteria. 1.2.5 Transmission Provider will consider the results from Economic Congestion Studies completed during Quarters 1-4 of the current LCP study cycle or Economic Congestion Study results from studies completed during the prior year Economic Congestion Study cycle. 1.3. Quarter 7: Decision 1.3.1 Using data and information from the Technical Study, the Transmission Provider, with input from stakeholders and interested parties, will define its fifteen (15) year LTP. 1.3.2 All solutions, including solutions from stakeholders and transmission solutions for Public Policy Objectives, will be evaluated against each other based on a comparison of their relative economics and ability to meet reliability criteria. LTP Study Cycle Data Collection Timeline 4 Reflects changes to incorporate Public Policy to meet FERC Order 1000 requirements 1.4. 09-28-12 Quarter 8: Reporting and Coordination 1.4.1 Transmission Provider will report the LTP to stakeholders and submit the LTP to Regional and Interregional Planning entities and other Interconnection Wide Planning entities conducting similar studies. 1.4.2 Transmission Provider will communicate its LTP with owners and operators of the neighboring interconnected transmission systems. 1.4.3 Transmission Provider will post on its OASIS its final LTP report and all draft LTP reports. LTP Study Cycle Data Collection Timeline 5