ELECTRIC INFRASTRUCTURE: BALANCING COMPETING INTERESTS Tehachapi Renewable Transmission Project (TRTP) May 2013 DELIVERING MORE RENEWABLE POWER SCE is expanding and upgrading its transmission and distribution networks to: Meet the region’s growing demand for electricity Improve grid performance Meet California’s ambitious renewable power goals Renewable resources such as wind and solar are located far from the populated areas where customers can put that power to use Building new or upgrading existing high voltage transmission lines makes it possible to transport power from its generation source over long distances to where most Californians live and work THE PLAYING FIELD B U I L D ING IN F R A STRUC TU RE M EA N S BA L A N CING CO M PETING I N TE R ESTS… VARIOUS INTERESTS AFFORDABLE ENERGY SAFETY, RELIABILITY PUBLIC POLICY, RENEWABLES 3 TEHACHAPI RENEWABLE TRANSMISSION PROJECT (TRTP) The nation’s largest transmission project devoted primarily to renewable energy Total project length: 250 circuit miles of infrastructure (spanning 173 miles) across 20 communities in 3 counties; nearly all in existing utility right-of-way corridor Overall project cost: $2.1 billion New capacity: Enough renewable energy capacity to power approximately 3 million homes (4,500 megawatts) CPUC approved the overhead project in 2009 with completion targeted for late 2015 TRTP Segments 1-3 (shown as green lines) were approved in March 2007 and are complete 4 CURRENT STATE TRTP: $2.1 billion project spanning 20 communities to import up to 4,500 MW of renewable power to the Southern California basin 2009 2011 NOW 2015 CPUC approves overhead construction after extensive engineering and environmental analysis Construction begins and Chino Hills portion later halted by CPUC CPUC directs SCE to explore undergrounding Complete project to meet state renewable mandate 12 of 18 transmission structures complete in Chino Hills CONSTRUCTION ON OTHER TRTP SEGMENTS CONTINUES 5 OVERHEAD IS THE BEST OPTION Most effective route for transmitting 500 kilovolts to import up to 4,500 MW of renewable power over distance Least enviro nmental impact Most cost-effective: extra $400m-$7 00m to underground 3 miles is less than 2% of overall project $400m - $700m is approximately 25% - 33% of total project budget Constructio n method Overhead proven reliable over time Underground of 500 kilovolt transmission is first in US 6 OVERHEAD/UNDERGROUND COMPARISON Tehachapi (Chino Hills) Supports state’s renewable energy goals Environmentally sensitive Underground YES YES – But potential schedule delays YES - Best use of financial resources NO 75% complete TRTP EIRs completed/approved - Two transition stations and extensive construction Unknown artifacts underground - $400m-$700m additional costs Paid by all CAISO ratepayers (SCE, SDG&E, PG&E) YES Safe construction method NO YES Quick restoration time if outage FIRST IN US (500 kilovolt) YES - Benefit to all ratepayers Overhead NO Easy to identify problem overhead Hours/days to restore YES - Hard to identify problem underground Weeks/months to restore NO 7 ORGANIZATIONS OPPOSING IMPACTS OF UNDERGROUND OPTION Partial list, to date, of individuals and organizations urging the CPUC to oppose the underground consideration: Assemblymember Steve Bradford State Senator Alex Padilla Board of Equalization Vice Chair Michelle Steel County of Kern Ventura County Econ. Dev. Agency City of Whittier City of Pico Rivera American Assoc. of Blacks in Energy CA Manufacturers & Technology Assoc. Congress of CA Seniors CA Asian Pacific Chamber of Commerce Numerous other chambers of commerce throughout CA In Orange County… Huntington Beach Chamber of Commerce Fullerton Chamber of Commerce Cypress Chamber of Commerce Seal Beach Chamber of Commerce Orange Chamber of Commerce Placentia Chamber of Commerce Orange County Black Chamber of Commerce Orange County Hispanic Chamber of Commerce STATEWIDE ISSUE Potential cost impacts Precedence for an undergrounding project like this Bad public policy of a state agency reversing an earlier decision QUESTIONS?