Tres Amigas, LLC March 27, 2015 Tres Amigas 2015 Annual Report Summary Tres Amigas (TA) is developing the Phase I of the Tres Amigas Super Station (TASS) which will be an HVDC back to back connection between the Western Electric Coordinating Council (WECC) and the Southwest Power Pool (SPP) systems. The Phase I will consist of a 750MW back to back HVDC system utilizing voltage source converter (VSC) technology. Phase II is anticipated to provide an interconnection between the SPP and ERCOT interconnects. Successive phases may increase the TASS capacity between the interconnects. The Tres Amigas project was placed in the WECC portal on September 17, 2010. The Initial Progress Report for the project was submitted to the WECC on February 23, 2012, which initiated the Project Coordination Process and periodic updates have been provided. The Comprehensive Progress Report, submitted on April 6, 2013, provided an overall description of the Phase I Project, results of studies performed by PNM and status of the TASS. TASS more recently has been working with WestConnect, the overlying Regional Planning Area where it has presence with its interconnection to PNM, for inclusion in the WestConnect 2015 transmission plan. TASS continues to update the new WestConnect Portal as well as the WECC portal on its status. TASS The TASS will be constructed on property controlled by TA north of Clovis, NM. The site is large enough to allow significant expansion of the TASS as the regional transmission capacity is expanded. Figure 1 provides information about the site which is located approximately 20 miles north of Clovis, New Mexico. Page 1 Tres Amigas, LLC March 27, 2015 Figure 1 TASS Site Information TASS Site On the WECC side, the TASS will be connected to the Blackwater 345 kV substation via an approximately 22 mile single circuit 2-conductor bundle, 1272 kcmil single circuit 345kV transmission line. The Blackwater station is a 200MW back to back HVDC station owned by PNM. The TASS is proposed to connect to the existing 345 kV Tolk substation in the SPP electric grid via an approximately 56 mile, 2conductor bundle, 1272 kcmil 345kV transmission line. Each line is designed for a thermal rating of approximately 1600Mva. Figure 2 provides a one line of the proposed interconnections and the TASS. Page 2 Tres Amigas, LLC March 27, 2015 Figure 2 TASS Interconnection Points The HVDC portion of the TASS will be based on voltage source converter technology (VSC). VSC technology provides advantages over line-commutated HVDC systems in areas where significant voltage support is needed for higher levels of power transfer. TA will register as a Balancing Authority within WECC. There are no WECC defined Paths adjacent to the TASS. Studies TA requested a wires-to-wires interconnection with the SPP and PNM systems and began formal analysis in the spring of 2011. This request was for a zero flow interconnection and did not include a request for firm transmission service from any existing transmission owners within WECC or SPP. It was understood by the parties that as users of the TASS were identified, that these parties would be making transmission service requests based on their source and sink locations and on their needs. Study scopes for the Page 3 Tres Amigas, LLC March 27, 2015 System Impact Studies (SIS) (required as part of the Interconnection Agreement assessments) were developed with the SPP and PNM and formed the basis for the study results. The primary purpose of the SIS was to identify any reliability concerns associated with the interconnection of the TASS and support the approval process of the interconnection request with PNM and the SPS/SPP. Studies for inclusion in the SIS on the WECC side of the interconnection were performed by PNM. Studies for the SIS on the SPS/SPP side were performed by TA and coordinated with several affected parties, including the WECC, who, through this designation, has access to all analyses performed on the SPP side. The SIS, which includes the steady state, short circuit and dynamic stability studies with and without the project at various flow conditions, are complete for both sides of the TASS. PNM has posted its SIS to its OASIS. The SIS for the SPP side can be found on the SPP website, to which the WECC should have access to review. Facility Studies (FS) identifying the minimum required facilities for interconnection without power transfer have been completed by PNM for the Blackwater station. SPS has also completed a FS for the Tolk substation. Further design analysis is ongoing with PNM and SPS/SPP which upon its completion might expand identified equipment required to interconnect TASS. If necessary the FS and Interconnection Agreement (IA) will be amended to complete the interconnection process. The Interconnection Agreements (IA) with PNM, SPS and SPP have been approved by the FERC. Design of the TASS and associated transmission lines is currently underway. On February 4, 2014, Tres Amigas and Broadview Energy, LLC (Broadview) announced the execution of agreements that would facilitate the development and construction of up to 500 MW of wind generation in northeast New Mexico. This will enable Broadview Energy to deliver high-quality New Mexico wind power starting by year-end 2016 and also enables the project to utilize the additional services to be offered by Tres Amigas when Phase I becomes fully operational in2018. Modeling Data The HVDC back to back component of the TASS is based on voltage sourced converter technology. This technology was selected due to its improved operating characteristics which can be exploited when located in a part of the system where voltage support is needed for the anticipated power transfers through the HVDC station. The location of the TASS is in such an area with few large transmission lines, but with significant transmission system additions being planned. The VSC technology will be provided by Alstom. Page 4 Tres Amigas, LLC March 27, 2015 The TASS will be interconnected to the WECC and SPP systems as shown in Figure 2. The system components include: The 345kV lines between the TASS and Blackwater on the WECC side and between the TASS and Tolk on the SPP side. The VSC transformers and The VSCs and associated control systems. Appendix 1 includes the steady state information for modeling the TASS in a load flow model. The actual TASS back-to-back DC system would be modeled either as a load or generator as are the other back-to-back stations along the WECC interface with SPP. Block diagrams and other modeling data for dynamic modeling of the TASS VSCs can also be found in Appendix 1. The PSLF and PSS/E files for the models are provided electronically with this report for filing by WECC in the library of user models. Additional modeling is being performed in PSCAD as the VSC control system is developed to analyze design performance of the TASS relative to other HVDC controls in the area and other design verification studies. PNM and Xcel-SPS are working with TA on these studies. They are expected to be completed in 2016. TA will provide any necessary updates to the models accompanying this report as the more detailed design studies are developed for the TASS VSC controls. Analysis to Date The analysis of the TASS impacts to the PNM/WECC system was performed by PNM during the development of the SIS. The SIS report is posted for review by interested parties on the PNM OASIS. The TASS and its interconnection at the Blackwater station are located on the extreme east side of the PNM system at the end of the BA to Blackwater line, also referred to as the Eastern Interconnect Project (EIP). Major considerations for the SIS included: The TASS is located on the PNM system in parallel with the existing Blackwater HVDC back to back station. System flows with the Blackwater station at its maximum rating were considered. The TASS is located at the eastern end of the 223 mile EIP 345kV line. The flows along this line are significantly affected by the low surge impedance loading (SIL) of the line and require voltage support when flows exceed certain levels. Several wind farms are located along the EIP 345kV line. Their use of the line and their variable output can cause rapid adjustments in the amount of transmission capacity available for the TASS. Steady state and dynamic stability analysis was performed by PNM at a variety of flow levels and system configurations. The results of this analysis are summarized in the SIS prepared by PNM for the TASS, which is posted on the PNM OASIS. Interested parties can review the results of the analysis there. This analysis was developed in accordance with WECC Criteria and NERC Reliability Standards. Page 5 Tres Amigas, LLC March 27, 2015 The steady state analysis identified the following maximum flow limits considering certain system improvements. The flows are summarized in Table 1. Table 1 Maximum Flows with System Improvements The system improvements modeled in the SIS to support the 950MW level of transfer on an “as available” basis included: 250 MVA synchronous condenser to be located at the TASS 3-150MVAR switched static capacitor banks to be located at the Guadalupe 345kV station +/- 250 MVAR static VAR compensator to be located at the Guadalupe 345kV station Expand the Blackwater Station from a single breaker to a three breaker 345kV ring bus station Reconductor the EIP along the BA-Guadalupe section Replace the communication wave trap on the BB line The SIS also identified the maximum transfer in or out of the TASS absent the system improvements identified above other than expansion of the Blackwater switchyard. These maximum transfers are summarized in Table 2. Table 2 Maximum Flows without System Improvements Dynamic stability analysis indicated that a breaker failure contingency at the BA substation indicates a run back in the output of the TASS is needed in order for the system to remain stable after the fault is cleared. The contingency modeled involved a delayed clearing event that removed both lines to Rio Puerco. Page 6 Tres Amigas, LLC March 27, 2015 Due to the existing transmission system commitments and senior queued transmission requests, all of the flows from the TASS project were considered non-firm and “as available” in the PNM SIS. Additional transmission lines will be needed in the area to support firm transmission service. The “as available” transmission capacity will depend on several factors, such as the amount of wind energy being transported by the system and the transmission schedules through the Blackwater station. Although the 750MW rating of the TASS is established by its HVDC components, the actual flow level that can be scheduled through the TASS to remain in compliance with the NERC and WECC requirements is dependent on the system conditions at the time the schedule is requested and the actual system improvements made. Detailed steady state and dynamic stability results can be found in the Appendices of the SIS on the PNM OASIS. More detailed analysis will be performed using PSCAD to determine the actual system improvements needed along the EIP line for certain flows. The studies were initiated in January 2013 and are expected to extend through 2016. Path Rating Because the TASS has a fixed rating based on the capabilities of its HVDC system, TA does not consider it necessary to perform a path rating on the TASS. Also, the TASS does not influence the rating of any WECC defined Paths directly or indirectly, being at the far eastern end of the long, radial EIP transmission line. Due to the location of the TASS Project relative to defined WECC Paths, the TASS is not a subset of any defined Path and neither of the tests in Appendix D of the WECC Project Coordination and Path Rating Processes is applicable to the TASS project and its influence on a WECC Path. The TASS received a Waiver of Significant Project Status in 2013. Figure 3 provides the location of the TASS with respect to the nearest WECC defined Path, Path 48 (NNM Path). Page 7 Tres Amigas, LLC March 27, 2015 Figure 3 Location of TASS in Relation to WECC Defined Path 48 (NNM Path) Tres Amigas Super Station (TASS) Page 8 Tres Amigas, LLC March 27, 2015 Additional Studies The analysis of the TASS for the SIS was performed with generic models of the VSC since the actual control models were unavailable. Detailed design of the actual control system began in the first quarter of 2013 and will continue throughout the project. When the actual controls model is available, system studies will be performed in PSCAD to review in detail the potential for controls interaction between the TASS VSC, the Blackwater line commutated back to back station and the wind farm controllers. This analysis will also be performed to review the specific system improvements needed to provide certain levels of transfer along the EIP 345kV line. Schedule The following milestones are being scheduled for the TASS project: Facilities studies complete – April 2012 Interconnection agreements completed – January 2013 Construction started – Third quarter 2015 PSCAD and all other studies completed - Third quarter 2016 Broadview connection – Fourth quarter 2016 VSC Commercial operations – Fourth quarter 2018 Page 9 Tres Amigas, LLC March 27, 2015 APPENDIX 1 TASS MODELING DATA Page 10 Tres Amigas, LLC March 27, 2015 Tres Amigas Super Station Steady State Load Flow Data_January 2013 Bus BUS-NO NAME KV TP VSCHED BLACKWTR 345 1 1.05 1.0495 525549 TOLK 345 345 1 0.9885 13407 3AMIGAS2 345 1 13404 3AMIGAS 345 1 13405 3AMIGAS DC 399 13406 3AMIGS DC 399 13402 V-PU DEG ISLAND AREA 68.88 2 10 1.0218 -11.28 314 1.025 1.025 -10.85 1.05 1.05 69.05 2 1.05 1.0778 2 1.025 1.0531 ZONE ISOL_ST VMAX VMIN 134 0 0 0 526 900 0 1.1 0.9 314 526 900 0 1.1 0.9 2 526 900 0 1.1 0.9 75.57 2 526 900 0 1.1 0.9 -17.85 314 526 900 0 1.1 0.9 ST R-PU Transmission Line FROM FNAME FKV TO TNAME TKV CK SE X-PU B-PU MVA1 MVA2 MVA3 MVA4 13402 BLACKWTR 345 13404 3AMIGAS 345 1 1 1 0 0.0005 0 0 0 0 0 13407 3AMIGAS2 345 525549 TOLK 345 345 1 1 1 0.002127 0.027928 0.469952 0 0 0 0 X BMAG Transformer FROM FNAME FKV TO TNAME TKV CK S MVA R ALOSS TERT 13404 3AMIGAS 345 13405 3AMIGAS DC 399 1 1 825 0 0.157 0 0 0 13407 3AMIGAS2 345 13406 3AMIGS DC 399 1 1 825 0.0019 0.157 0 0 0 Transformer Tap FROM FNAME FKV 13404 3AMIGAS 345 13407 3AMIGAS2 230 TO 1340 5 1340 6 TNAME 3AMIGAS DC 3AMIGS DC TK V CK ST T TCULTA P ANGL P VMA X VMI N STEP P TMA X TMI N TAPF P TAPF S 399 1 1 1 1 0 0 0 0 0 0 1 1 399 1 1 1 1 0 0 0 0 0 0 1 1 Page 11