JOINT PLANNING AGREEMENT ANNUAL MEETING JULY 15, 2009 I. II. Welcome / Introductions (J. Johnston) Federal Power Program Updates a. Remarketing (M. Simonton) b. O&M Contracts (B. Young) c. FTS Conversions to OATT (B. Young) III. Large Generator Interconnection Requests (G4400/TBU) IV. DSW 10-Year Capital Program (C. Lyles) V. BREAK (15 MIN) VI. Construction Update (D. Byron) VII. T-Lines & Substations Update (S. Spencer) VIII. Protection & Communications Update (D. Radosevich) IX. Outage Coordination (L. Edwards) X. Closing Remarks REMARKETING M. SIMONTON BCP Post 2017 Remarketing • Boulder Canyon Project (BCP) electric service contracts due to expire in 2017 • Western to conduct a public process to consider remarketing aspects and disposition of BCP power post 2017 • Anticipate initial Federal Register Notice announcing remarketing effort and begin the public input process in the fall 2009 BCP Post 2017 Remarketing • Pertinent info shall be posted to: http://www.wapa.gov/dsw/pwrmkt/BCP%20Remarketing/BCP%2 0Remarketing.htm POC’s: Mike Simonton Remarketing Specialist Phone: (602) 605-2675 Simonton@wapa.gov Deborah Emler Assistant Regional Manager for Federal Power Programs Phone: (602) 605-2555 Emler@wapa.gov QUESTIONS O&M CONTRACTS – BRIAN YOUNG FTS CONVERSONS TO OATT – BRIAN YOUNG QUESTIONS LARGE GENERATOR INTERCONNECTION REQUESTS – JOSH JOHNSTON Types of Generation Interconnection Requests Solar – 5 (975 MW) Wind – 4 (1365.1 MW) Geothermal - 1 (250 MW) Gas – 1 (575 MW) Generation Interconnection Requests by County Arizona Maricopa County -1 (Solar - 250 MW) Yuma County – 1 (Gas - 575 MW) Coconino County – 1 (Wind - 500 MW) Mohave County – 3 (Wind - 500 MW, Geothermal 250 MW, Solar – 340 MW ) La Paz County – 2 (Solar - 385 MW) Generation Interconnection Requests by State California Imperial County – 1 (Wind - 65.1 MW) Nevada Clark County – 1 (Wind - 300 MW) QUESTIONS DSW 10-YEAR CAPITAL PROGRAM – CHRIS LYLES What is the 10-Year Capital Program? • Western’s project planning tool used to budget and schedule Construction and Maintenance projects. • Construction projects are funded through appropriations and solely dependent on Congressional allocations. • Maintenance Projects—Repairs, Replacements, Additions, and Deletions (RRAD’s) planned 3 years out • Construction Projects—New capital construction planned 10 years out. Purpose of Having a 10-Year Capital Program • Clearly describe challenges, goals, strategies, and accomplishments to Western’s customers. • Improve the communication and provide transparency between Western and it’s customers. • Provide a mechanism and forum for customer collaboration. • Improve/maintain the reliability of the transmission system. Primary Focus Areas of 10YCP • • • • 161-kV Wood Pole System South of Parker 115-kV Wood Pole System South of Phoenix Transformer Replacements in Critical Areas Spare Transformer Program 161-kV Turning Structure on BLY-PAD (Approx. 60-Yrs. Old Severely Weathered and Broken 161kV Cross Arm at Parker Dam Summer 2008 Ok, let’s use 1-866-228-5702 code 687162#. I’ll send calendar notice as well. Temporary Repair made to 161kV Structure Summer 2008 MRN-SGR Pole Replacement June 2009 9’ of wood originally in the ground when installed. Only 4’ pulled out when extracted during replacement 115-kV Cross Arm Completely weathered and deteriorated after 60 years of exposure to the Arizona environment. Replace Transformers in Critical Areas Parker unit in need of gasket repair – April 2009 Spare Transformer Program 20-year old 345/230 Transformer Failure at Shiprock in 2008 QUESTIONS CONSTRUCTION UPDATE – DON BYRON WESTERN SOUTH OF PHOENIX COMPLETED PROJECTS Empire Tap Substation SaguaroTucson Pole Replacement Valley Farms Upgrade WESTERN LOWER COLORADO RIVER Davis Substation 69-kV Yard – two phase project: Phase 1 – Site preparation – project completed Phase 2 – Substation construction – anticipate awarding a contract by the end of the fiscal year. Davis Transformer Assembly – contract awarded Davis Substation 230-kV Yard – conversion to DoubleBreaker Double-Bus – started design activities. Parker-Planet Tap Transmission Line – reconstruction of the transmission line continues. Scheduled to be completed in January 2010. Topock Transformer Addition – anticipate awarding a contract by the end of the fiscal year. WESTERN LOWER COLORADO RIVER Bouse Substation – started Environmental and Realty activities. Davis-Kingman Tap Transmission Line Rebuild – started Environmental and Realty activities Gila-Yuma Tap Transmission Line Rebuild – purchase steel poles. Award a construction contract for installation in FY10. Parker Substation Stage 7 – project completed. Parker 69-kV Substation – project completed. WESTERN OTHER CONSTRUCTION Basic Substation Soil Clean-up Phase 1 – project completed. Basic Substation Soil Clean-up Phase 2 – anticipate awarding a contract in early FY10. Pinnacle Peak Station Service – project completed. Pinnacle Peak Transformer Replacement – new transformer ordered in June 2009. QUESTIONS T-LINES & SUBSTATION UPDATE STAN SPENCER Transmission Lines and Substation Maintenance Division Replacement, Retirement, Addition Program (RRADs) Project Executing Process Transmission Lines and Substation Maintenance Division is evaluating the Transmission System. The Asset studies prepared are categorizing the equipment by age, reliability, safety, and maintenance cost. o Asset Studies were done on the following pieces of equipment Circuit Breakers Batteries Transformers Instrument Transformers Switches (MOI, MOD, and Manual) Programmable Logic Controllers (PLCs) Transmission Lines (Wood Pole Replacement Program) Other Projects o The division has prepared a five year plan. A Facility Development Document has been drafted and is being used to incorporate each project into the Ten-Year Plan and budgeting process. o The following charts are samples of the projects identified in the Ten Year Plan. CIRCUIT BREAKER REPLACEMENT PROGRAM Central Arizona Project At the customer’s request, Western is replacing all Oil Circuit Breakers that feed the customer’s loads in the transmission system. o Liberty 2382 o ED2 1562 Colorado River Storage Project Fault Studies were done by Operations. These breakers were identified as being underrated. This is a safety & reliability concern which has been brought up to the CREDA customers. o Glen Canyon 4032 o Pinnacle Peak 3482, 3682 BATTERY REPLACEMENT PROGRAM The age of the equipment and test results show an increased potential for failure. As the cells age, the average measured impedance will gradually increase indicating progressive deterioration of the cell’s internal components. Parker Davis Project o Amargosa o Blythe o Pinnacle Peak Central Arizona Project o Hassayampa Tap Casa Grande Spookhill Transformer Replacement Program & Instrument Transformer Replacement Program G5200 has drafted a Preliminary Asset Study categorizing the transformers based on age, reliability, safety, and maintenance costs. Instrument Transformers are being replaced on an as needed basis The Transformer at Parker Dam is leaking and could become an environmental issue since it is near the Colorado river. The oil will be removed from the transformer and receive new gaskets and oil process: o Parker Davis 161/69kV Parker Dam Transformer SWITCH REPLACEMENT PROGRAM Parker Davis Project o Boulder Tap Disconnect Switches 181 & 281 These switches are difficult to operate. They are deteriorated and have become a safety and reliability concern. o Saguaro 1511 & 1513 APS has identified these switches for replacement due to age, operational issues and having a higher risk for potential Hot Spots. APS Operates and maintains the Saguaro Substation and Western is financially responsible for equipment identified in the exhibit for SGR substation and contractually obligated to fund this project. Colorado River Storage Project o Pinnacle Peak 2681 This switch is in operable. The motor has failed. The whole switch requires to be replaced. Programmable Logic Controllers Replacement Program Colorado River Storage Project PLC is the Programmable Logic Controller for the series capacitors. They are the devices that control the protection schemes for the each of the series capacitors. The Programmable Logic Controllers over the last three years had been failing intermittently sometimes bypassing the series cap bank and diminishing the system reliability and Mega watt capacities. These parts are becoming harder to acquire and are not always functioning properly as they are intergraded into the system. By upgrading to a new series PLC, replacing the PLCs will give Western greater system reliability and stability. The upgrade in PLC will reduce the maintenance costs and allow any future upgrades to be made easier and at less cost. o Pinnacle Peak o Kayenta If the PLC had not been replaced, the impact to Western would have been the loss of Megawatt capacity on the 230-kV transmission system. The transmission line would have been de-rated. At Kayenta the transfer capability is 400MW bi-directionally (at the bus) with the Series Capacitors in service. If the Series Capacitors where to be placed off-line because the protection scheme failed, the transfer capability would be reduced by 25 percent (300 MW down). o Flagstaff Kayenta Kayenta Other Replacement Projects Parker Davis Project ◦ Alternate Station Service Feed for MCI At present Harris Substation is providing Station Service to MCI. This option will no longer exist. DSW will have to install two Potential Transformers as primary & backup station service. ◦ Reactors for Liberty Substation The system has changed over the last decade , several failures have occurred, and we have repaired and reinstalled them. The reactors are used to reduce the circuit current levels, limit line-to-ground fault currents, in-rush current/over voltages, reduce induced/secondary currents in parallel, and compensate for capacitive voltages. Transmission Lines (Wood Pole Replacement Program) DSW has Pole Testing Contract. If the poles fail, they are red flagged. 10% of poles have been failing. Parker Davis Project o Coolidge-Oracle 115kV T-Line o Saguaro-Oracle 115kV T-Line o Casa Grande-Empire 115kV T-Line o Tucson-Apache 115kV T-Line o Empire-ED5 115kV T-Line o ED5-Saguaro 115kV T-Line o Coolidge-ED2 #1 115kV T-Line Coolidge-Oracle 115kV T-Line Empire-ED5 115kV T-Line QUESTIONS PROTECTION & COMMUNICATIONS UPDATE – DAVID RADOSEVICH Protection and Communications Update • Discussion on Communications • Discussion on Protection • Reliability Centered Maintenance Discussion (RCM) QUESTIONS WALC OUTAGE COORDINATION – LARRY EDWARDS WALC Outage Statistics • 2008 – 2161 Switching Requests • 641 Clearances • 109 Interconnected System Clearances • 2009 (As of 6/16/09) – 1285 Switching Requests • 217 Clearances • 100 Interconnected System Clearances WALC Outage Statistics • 2008 – Average Time (Request to Outage) • 8.36 Days • .99 Days for Emergencies • 2009 (As of 6/01/09) – Average Time (Request to Outage) • 12.87 Days • .91 Days for Emergencies Types of Outages • Outages fall into two categories: – Normal • Scheduled Near Term (unplanned/unscheduled) • Scheduled Long Term – Emergency (unplanned/unscheduled) • Hazardous/Life Threatening /Customer Outage • A system condition that is hazardous to the public, Western employees, or the Federal power/water system WALC Outage Procedures • WALC Power System Operations has three procedures governing Outage Coordination – Power System Switching Procedure (Power System Operations Manual “PSOM Chapter 1”) – Scheduling and Coordinating Outages (Standard Operating Procedure “SOP-570”) – Day Ahead Guidelines for Assessment of Outages by System Operator (Standard Operating Procedure SOP-2101) WALC Outage Procedures • Impacts beyond WALC – Outage request is reviewed for impact on the reliability of Western Interconnection – Outage request is reviewed for impact to WALC customers – Outage information posted on OASIS WALC Outage Procedures • Outage Communication – Outage requests are accepted via: • SONIC- WALC’s Outage and switching Application • Email • Fax • Phone-with written documentation – Outage Approval/Denial communicated via: • SONIC- WALC’s Outage and switching Application • Email • Fax • Phone-with written documentation New for 2009 • DSW Power System Outage Coordination Policy – Outage Coordination Policy signed and put in effect on 4-8-2009 (DSW-Internal) – Policy put into effect a 10 Business Day scheduling window for requested outages on the Bulk Electric System equipment 100-kV and above. – 10 Day window allows for the required system impact studies and mandated NERC coordination to occur between DSW and it’s adjacent TOP’s and BA’s • Power System equipment below 100-kV still subject to the 3 business day window New for 2009 (continued) • Arizona Outage Coordination Committee formed • APS-SRP-SWTC-TEP-WALC are participants • Purpose: A pilot program to build an efficient process that develops a long range outage plan to meet the needs of the LRCC and the five initial Arizona committee members, APS, SRP, SWTC, TEP and WALC. The process should identify potential conflicts and provide a forum to negotiate and resolve outage schedule conflicts without unnecessary burden and in advance of the Reliability Coordinator’s Day Ahead requirements. The positive outcome will be an Arizona outage schedule consistently approved by the LRCC.