Generator Interconnection Facility Study Report Richmond County, NC – 282 MW 12/01/2007 Queue #90 February 22, 2005 (Final) Progress Energy Carolinas, Inc. Transmission Department System Planning & Operations Department Generator Interconnection Facilities Study Report: Richmond County, NC – 282 MW, 12/01/2007,Queue #90 Introduction The purpose of this Generator Interconnection Facility Study (GIFS) is to identify solutions that resolve power flow, stability, and short circuit impacts identified in the Generator Interconnection Impact Study (GIIS) and to determine the necessary facilities to interconnect a new generating plant to the PEC Transmission System. This report also provides refined estimates of the cost and in-service schedules for these items. A Generator Interconnection Impact Study Agreement was executed on June 8, 2004 to study the new generation facility described in Table 1. The GIIS was dated August 17, 2004 and identified the need for this GIFS. The Generator Interconnection Facilities Study Agreement was executed and dated September 16, 2004. On September 17, 2004 the Customer modified the facility output from 338 MW in the impact study to 282 MW for this facility study. The Draft Facility Study was dated December 3, 2004. The Interconnection Customer executed an E&P Agreement with PEC dated December 8, 2004. The Interconnection Customer provided comments to the Draft Facility Study on January 11, 2005. Responses to these comments are attached. Table 1: Request PEC Generator Interconnection Queue No. Queue #90 MW In-Service Date 282 12/01/07 County Facility Richmond County, NC PEC Richmond 500 kV Substation, 230kV Yard Facility Study Methodology The analysis utilizes PSS/E and ASPEN software packages. Solutions are determined to resolve transmission system impacts due to power flow, stability, and short circuit problems. A schedule of work is determined to implement the necessary upgrades to the PEC Transmission System in order to attempt to meet the Customer’s requested in-service date. For solutions that are already in PEC’s future expansion plans but scheduled at a later target date, accelerations to those projects are accommodated if possible. If the requested inservice date cannot be met, the earliest in-service date is provided. Additionally, for situations where it may be necessary to begin construction activities prior to the execution of a Generator Interconnection Agreement, PEC and the Interconnection Customer may execute an Engineering & Procurement (E&P) Agreement that authorizes PEC to begin engineering and procurement of long lead-time items necessary for the establishment of the interconnection in order to advance the implementation of the interconnection request. Finally, fully loaded cost estimates are determined for the necessary upgrades. Affected Systems The proposed generation at Richmond County is to be interconnected to PEC at the existing PEC Richmond 500 kV Substation in the 230 kV yard. Since this is in close proximity to PEC’s interconnection with Duke Energy, Duke Energy has been identified as Progress Energy Carolinas February 22, 2005(Final) Transmission System Planning & Operations - Page 2 of 7 - Generator Interconnection Facilities Study Report: Richmond County, NC – 282 MW, 12/01/2007,Queue #90 an Affected System for this request and the Customer’s interconnection data was shared with Duke Energy. Cost estimates on Affected Systems are not included in this report. It is the Customer’s responsibility to contact Duke Energy to obtain the impacts and associated costs due to this request. Facility Study Results There are no changes to the solutions initially presented in the Customer’s impact study. This takes in to account the Customer’s change to the facility output. PEC identified existing projects in its future plans that resolve some identified transmission system impacts in the GIIS. There are no changes to those results in this study. The following costs are fully loaded estimates of the solutions previously provided and do not include gross-up tax. At the Customer’s request, the In order to meet the Customer’s request for a June 1, 2007 date for the facility’s first synchronization/testing, it will be necessary for the Customer and PEC to execute an E&P Agreement by 01/01/2005. This will allow PEC to begin the engineering and procurement and construction necessary to meet the Customer’s schedule request. [The first synchronization/testing date was changed from March 1, 2007 to June 1, 2007 at the Interconnection Customer’s request. This change did not alleviate the need for the E&P Agreement.] Coordination between the Customer and PEC Transmission will be required during the design, installation and both initial and on-going periodic calibration/testing of the Customer’s out-of-step tripping scheme to ensure reliability and coordination with PEC’s other protection systems. Note that this includes one PEC tie line with Duke Energy (the Richmond-Newport 500 kV Line). Power system stabilizers (PSS) will be necessary on each of the generating units as discussed in the GIIS. Coordination between the Customer and PEC Transmission will be required during the design and testing phases of the PSS installation. Richmond 230 kV Substation Substation and Protection Work: Installation of three 230 kV/3000A/63kA gas circuit breakers, bus modifications, out-of-step relays and other protection, new Rockingham line termination and new generator terminations ($1,904,345). Also includes line work associated with re-termination of the existing Richmond-Rockingham 230 kV line. ($465,605). Cost: $2,369,950 Rockingham 230 kV Substation Substation and protection work: Installation of two 230 kV/3000A/63kA gas circuit breakers, new bays, new Richmond line terminations address out-of-step relays and other protection, replace five circuit breakers with 3000A/63kA capability due to short circuit issues. Cost: $2,481,419 Progress Energy Carolinas February 22, 2005(Final) Transmission System Planning & Operations - Page 3 of 7 - Generator Interconnection Facilities Study Report: Richmond County, NC – 282 MW, 12/01/2007,Queue #90 New Richmond – Rockingham 230 kV West Line Line Work: Clearing approximately 95 acres of existing right-of-way, construction of approximately 7.8 miles of new 230 kV transmission using steel H-frame with bundled 1590 ACSR conductor with one 7/16” EHS steel OHGW and one 30 fiber OPGW, . Cost: $7,602,370 Richmond County Plant 230 kV Substation Protection Work: Modify existing relays to address need for out-of-step protection. Cost: $36,130 Raeford 230 kV Substation Protection Work: New equipment and work associated with need for out-of-step protection. Cost: $193,970 Laurinburg 230 kV Substation Protection Work: New equipment and work associated with need for out-of-step protection. Cost: $122,945 Cumberland 230 kV Substation Protection Work: Modify existing relays to address need for out-of-step protection. Cost: $37,226 Metering A monthly fee for the purchase, installation, operation, testing, and maintenance of the necessary metering equipment and remote terminal unit associated with metering the Customer’s generation at the Point of Interconnection is estimated to be $3,000/month. Schedule for Richmond County Site (Q#90) Start PEC Survey of Substation & Line Engineering Start Engineering Rich-Rock West 230 kV Line Start Engineering Rich-Rock East Start Engineering Rockingham 230 Substation equipment Place CB Order Begin Delivery Start Construction Back-feed (substation) 1st generator synchronization (stability)1 Commercial Operation Date 02/01/2005 01/01/2005 02/01/2005 08/01/2005 01/10/2005 04/14/2006 08/28/2006 03/01/2007 06/01/2007 12/01/2007 1 The Interconnection Customer must coordinate their generator testing schedule with PEC’s Energy Control Center. Approval of the Interconnection Customer’s generator testing will be subject to system conditions. Progress Energy Carolinas February 22, 2005(Final) Transmission System Planning & Operations - Page 4 of 7 - Generator Interconnection Facilities Study Report: Richmond County, NC – 282 MW, 12/01/2007,Queue #90 Summary In order to meet the Customer’s request for a June 1, 2007 date for the facility’s first synchronization/testing, it will be necessary for the Customer and PEC to execute an E&P Agreement by 01/01/2005. This will allow PEC to begin the engineering and procurement and construction necessary to meet the Customer’s requested schedule. [The first synchronization/testing date was changed from March 1, 2007 to June 1, 2007 at the Interconnection Customer’s request. This change did not alleviate the need for the E&P Agreement.] With the exception of metering equipment, PEC assumes that its interconnection costs described above would be classified as Network Upgrades, therefore, the Customer’s payments are eligible for PEC transmission credits for PEC transmission service associated with the output from the generation facility. Summary of cost estimates for interconnection are: Network Upgrades: $12,844,010 Metering: $3,000/Month Progress Energy Carolinas February 22, 2005(Final) Transmission System Planning & Operations - Page 5 of 7 - Generator Interconnection Facilities Study Report: Richmond County, NC – 282 MW, 12/01/2007,Queue #90 Progress Energy Carolinas February 22, 2005(Final) Transmission System Planning & Operations - Page 6 of 7 - Generator Interconnection Facilities Study Report: Richmond County, NC – 282 MW, 12/01/2007,Queue #90 List of Customer’s Comments on the Draft Generation Interconnection Facility Study Report For Queue #90 Richmond County Page 2, Facility Study Methodology Section Please explain what “fully loaded cost estimates” are. PEC Answer: Fully loaded is a phrase utilized at PEC to indicate a cost includes company overheads (i.e., cost of benefits, cost of infrastructure, etc). Page 2, Affected Systems Section Please confirm that in addition to providing data to Duke Energy, Progress Energy will exchange data (including study analyses and assumptions used) and coordinate with Duke Energy any work affecting both systems as a result of the Customer’s interconnection. This coordination should be on the same level as if the interconnecting generation were being installed by its own energy affiliates. PEC Answer: PEC will provide Duke Energy this report and will continue to keep Duke Energy aware of the status of this new interconnection and will ask Duke Energy to keep PEC aware of the requirements they have placed on this request. Page 3, Facility Study Results Section (Richmond 230 kV Substation) Please explain whether the $465,605 estimate for removal of existing line facilities for rearrangement includes removal of the portion of line that the Customer would be interested in purchasing from Progress. PEC Answer: The $465, 605 reported in the draft report is the cost associated with the rerouting/re-termination of the existing Richmond – Rockingham 230 kV East line from its existing bay to a new bay. As a result, this cost includes both removal costs as well as some installation costs for the re-termination. At the Customer’s request, PEC is developing a sale cost for the facilities referred to in the question located at Richmond 230 kV Substation, that PEC otherwise will remove. Page 4, Schedule for Richmond County Site Please verify that the schedule reflects the changes made subsequent to issuing the Draft Generation Interconnection Facilities Study Report. PEC Answer: Yes. Schedule changes have been made to the report. Progress Energy Carolinas February 22, 2005(Final) Transmission System Planning & Operations - Page 7 of 7 -