COMMON USE SYSTEM TRANSMISSION COORDINATION & PLANNING COMMITTEE Q1 MEETING February 16, 2011 Black Hills Power Service Center Rapid City, SD TCPC Meeting Policies • FERC Standards of Conduct • Anti-Trust Policy • Confidentiality 2 BHP Transmission Planning Department Updates • Transmission System Additions – Pumpkin Buttes-Windstar 230 kV line in-service (2010) – Dryfork Plant commercial operation (June 2011) – RC South 230 kV 100 MVAR capacitor online (2010) – Second Osage 69 kV 10 MVAR capacitor online (2010) and Osage plant operations suspended Refer to BHBE OASIS for more information 3 BHP Transmission Planning Department Updates • Transmission System Additions cont…. – Wyodak 230:69 kV 100 MVA XFMR replaced existing 70 MVA unit (2010) – Lange 230:69 kV 100 MVA transformer replaced with a 150 MVA unit (2010) – Whitewood-Sturgis 69 kV line rebuilt – Sturgis-Lange 69 kV line rebuilt – Edgemont-Westhill 69 kV line rebuilt (2010) Refer to BHBE OASIS for more information 4 BHP Transmission Planning Department Updates • Generator Interconnection Requests – BHBE-G7: 200 MW wind NR/ER at Pumpkin Buttes 230kV sub, LGIA executed, construction suspended – BHBE-G8: 50 MW wind NR/ER on Lange-Lookout 230kV line, LGIA tendered for execution – BHBE-G9: 250 MW wind NR on Wyodak-Osage 230kV line, SIS complete, FSA tendered – BHBE-G10: 210 MW wind ER on SRC-Westhill 230 kV line, withdrawn Refer to BHBE OASIS for more information 5 2010 LTP Results & Recommendations – At least 5 MVAR additional capacitive voltage support at Osage 69 kV recommended prior to 2021. – LTP recommended commissioning second existing Belle Creek 69 kV capacitor. Dynamic voltage support scheduled for 2012 in-service date. – Modification of Minimum Allowable Frequency Criterion for Wyodak area suggested (Apply Cat. C outage criteria to Cat. B outages). Further analysis is needed prior to implementation. 6 BHC Transmission Planning Department Updates • BHP 10 Year Transmission Plan (230 kV) – – – – 7 Minnekhata 230:69 kV substation (2011) St. Onge 230:69 kV substation (2014) Teckla-Osage 230 kV line (2014) Osage-Lange 230 kV line (2015) TCPC Overview • FERC Order 890 – 9 Principles – – – – – – – – – 8 Coordination Openness Transparency Information Exchange Comparability Dispute Resolution Regional Participation Economic Planning Studies Cost Allocation for New Projects Local Transmission Plan (LTP) Study Cycle Quarter Planning Steps Data Collection TCPC Meetings Q4 Study Scope, Data Collection & Scenario Development Open X Optional Q1 X Technical Study Q2 X Closed Q3 9 Decision & Reporting X LTP Study Process Data Collection, Study Scope and Scenario Development Load and Resource Forecast, Point-to-Point Projections, Demand Resources Identify Study Objective, Define Assumptions, Develop Study Scope and Scenarios TCPC / NOC Input TCPC = Transmission Coordination and Planning Committee NOC = Network Operating Committee As Requested/Needed WECC and/or SubRegional Entities Technical Study Develop Base Cases and Perform Simulations Identify Mitigation or Solutions to Reliability Criteria Violations Analyze Results and Identify Reliability Criteria Violations YES Another Scenario? Re-Run Simulations with Solutions TCPC / NOC Input NO Document Solutions, ID Advantages or Disadvantages to Each Solution YES Reliability Criteria Met? Analyze Results and ID Reliability Problems Sub-Regional Review, WECC Project Review Process NO Decision And Reporting Identify Best Solution a.Selection Criteria b.Advantages/Disadvantages Prioritize Into Company Business and Strategic Plan 10 Construction and Rate Base Support Trans. Planning & Coordination Committee / TP Publish Report TCPC / NOC Input Timing of Other Public Input Determined by TCPC / NOC TCPC / NOC Input Sub-Regional Review, WECC Project Review Process LTP Study Scope • 2016 (near term) and 2018/2022 (far term) • Analyze peak and off-peak scenarios – Power Flow – Transient Stability • Use NERC/WECC planning criteria • Evaluate N-0, N-1, N-2 and N-1-1 scenarios (Category A-C) • Worst-case bus outages also evaluated (Category D) • Validate committed projects/recommend additional solutions 11 COMMON USE SYSTEM BLACK HILLS / BASIN ELECTRIC / POWDER RIVER MONTANA WYOMING TONGUE RIVER LOOKOUT SHERIDAN DRYFORK CARR DRAW WYODAK HUGHES BUFFALO BARBER CREEK PUMPKIN BUTTES WYGEN1 WYGEN2 WYGEN3 DONKEY CREEK ST ONGE (2014) YELLOW CREEK OSAGE LANGE 2015 RENO SOUTH RAPID CITY DC TIE 2014 TECKLA MINNEKHATA (2011) WESTHILL ANTELOPE S DAKOTA YELLOWCAKE LATIGO CASPER NEBRASKA WINDSTAR 230 KV (EXISTING) 230 KV (FUTURE) SUBSTATION GENERATOR DAVE JOHNSTON SPENCE M. MILE STEGALL 12 CUS BEPW PAC WAPA 2016 Baseline Cases • 2016 Heavy Summer (peak) –Starting Case: WECC 16hs2a1p.sav • 2016 Light Winter (off-peak) –Starting Case: WECC 16hw2a1p.sav 13 2018 / 2022 Baseline Cases • 2022 Heavy Summer (peak) –Starting Case: WECC 21hs1a1p.sav • 2018 Light Winter (off-peak) –Starting Case: WECC 18hw1sa1p.sav 14 Major BHBE Baseline Case Projects/Additions: • Minnekhata 230:69 kV substation (all scenarios) • St. Onge 230:69 kV substation (all scenarios) • Teckla-Osage 230 kV line (all scenarios) • Osage-Lange 230 kV line (all scenarios) 15 Major External Baseline Case Projects/Additions: • Energy Gateway Transmission Project • Arrow Transmission Project (tentatively) 16 Data Collection • Data request returned by Friday March 18, 2011 • Peak and Off-Peak Load Data by POD – Monthly demand data for study years is critical – Monthly demand for 10 year planning horizon is preferred • Resource Data – should equal the sum of your load and reserves • Reservation Data – Forecasted monthly transfer values on a per path basis • Scenario Suggestions – Significant modifications to the base case to be evaluated in uncertainty scenarios. – Suggestions will be considered and discussed during the Q2 TCPC meeting. Q2 Meeting Date/Time: May 2011, TBD 17 Questions 18 Comments / Suggestions Wes Wingen wes.wingen@blackhillscorp.com (605) 721-2268 Eric Egge eric.egge@blackhillscorp.com (605) 721-2646 19