WECC 2012 Annual Progress Report Submitted by Centennial West Clean Line LLC ISSUED: March 1, 2012 PROJECT NUMBER: 2012-CW001 PROJECT CONTACT: Mark Etherton, P.E. EMAIL: Mark.Etherton@POWERENG.COM PHONE: 480-838-1427 POWER ENGINEERS, INC. 3231 SOUTH COUNTRY CLUB WAY SUITE 103 TEMPE, AZ85282 0 Table of Contents I. Introduction-------------------------------------------------------------------------- 1 II. Project Description ------------------------------------------------------------------ 2 III. Plan of Service ----------------------------------------------------------------------- 2 IV Project’s Current Status------------------------------------------------------------- 3 V. Planned Project In-Service Date -------------------------------------------------- 3 VI. Centennial West Transmission Configuration----------------------------------- 4 VII. California-Arizona-New Mexico EHV System---------------------------------- 5 List of Figures Figure 1: Centennial West Clean Line HVDC Transmission Project One-Line Diagram Figure 2: California – Arizona - New Mexico Regional EHV Transmission Map i Centennial West Clean Line HVDC Project WECC 2012 Annual Progress Report I. INTRODUCTION The Centennial West Clean Line HVDC Transmission Project (“Project”) is a proposed 3,500MW approximately 900 mile, ±600kV, multi-terminal HVDC transmission project between northeastern New Mexico, north-central Arizona, and southern California. The proposed inservice date of the Project is Q1 2018. The sponsor of the Project is Centennial West Clean Line LLC (“Project Sponsor”) and is a subsidiary of Clean Line Energy Partners LLC with headquarters in Houston, Texas. The proposed routing and terminations between north eastern New Mexico, north-central Arizona, and southern California will be determined over the course of the permitting and will be detailed as part of the Comprehensive Progress Report. The project provides opportunities for the potential to remove constraints at the Four Corners area, the northern portion of the West of River system and south of Eldorado and Lugo as well as counter flow to expected heavy transfers from north of Lugo. Additionally, it will also allow renewable generation to be transferred from New Mexico and Arizona into southern California without aggravating or creating additional constraints on the existing transmission systems across WECC. Exhibit 1 illustrates the Project study area and additional specifications. Exhibit 1: Centennial West Clean Line HVDC Project Study Area 1 While the HVDC technology is still under review, the Voltage Source Converter (“VSC”) technology will provide the Project greater flexibility due to the limitations of short circuit availability in northeastern New Mexico. The proposed interconnection in AZ is under review and may or may not include a tie to the existing AC system. The proposed termination in the southern California load pocket is the Lugo 500kV substation. The final Phase 1 Comprehensive Progress Report, expected to be completed by Q2 2012, will detail the proposed terminations. On September 16, 2011, Centennial West Clean Line submitted a notification letter to the WECC Planning Coordination Committee (PCC) and Technical Studies Subcommittee (TSS) formally initiating the regional planning project review process for Centennial West. To achieve Phase 1 status per the WECC Three Phase Path Rating Process, a Regional Planning Compliance Report was submitted to PCC and TSS on September 11, 2011. On November 14, 2011, PCC accepted the Centennial West Clean Line regional planning compliance report as complete. In compliance with the WECC Procedure for Project Rating, a Comprehensive Progress Report (CPR) will be prepared in August, 2012 and submitted to the WECC for approval according to the WECC Path Rating Process. II. PROJECT DESCRIPTION The Centennial West Clean Line HVDC transmission project is currently envisioned to be comprised of three VSC converters of +/- 600 kV (DC) and an approximately 900 mile transmission line from the proposed converter station in renewable resource energy zone(s) in northeastern New Mexico (referred in this report as “Centennial West NM”). A second converter station in Arizona (referred in this report as “Centennial West AZ” and potentially located near the existing Peacock 345 kV substation in northwestern Arizona operated by Western Power Administration (WAPA)) will operate to interconnect additional solar resources to the Project. Finally, the proposed converter station in southern California (referred to in this report as “Centennial West CA”) will be located near the Lugo 500kV substation in SCE. . III. PLAN OF SERVICE A detailed conceptual plan of service for Centennial West is provided below: Rectifier station (approx. 3850 MW capacity) - Centennial West NM Rectifier station (approx. 505 MW capacity) potentially near Peacock 345kV substation – Centennial West AZ Inverter station (approx. 3500 MW capacity) near Lugo Substation – Centennial West CA 2 One new +/- 600 kV DC line from Centennial West NM to Centennial West CA through Centennial West AZ (approx. 900 miles) Fixed and dynamic reactive devices to be determined. IV. PROJECT’S CURRENT STATUS Centennial West is continuing to pursue completion of the WECC 3-phase rating process by the end of 2013. Currently, the Phase 1 Rating Study is in progress and a comprehensive progress report is expected to complete by the end of August 2012. It is anticipated that the simultaneous and sensitivity studies will be completed and the Project will obtain Phase 3 status by the end 2013. The Project is seeking the necessary transmission project corridor through review of potential alternative routes. In addition, the Project team is also working on the CAISO interconnection study process for a March, 2012 submittal. V. PLANNED PROJECT IN-SERVICE DATE Centennial West is anticipated to be in commercial service by the first quarter of 2018. 3 VI. CENTENNIAL WEST HVDC CONFIGURATION The Centennial West HVDC Transmission Project One-Line Diagram is depicted in Figure 1. Figure 1: Conceptual Centennial West Clean Line VSC Transmission Project New Mexico Wind Collector System* Southern California AC System*** AZ Solar Collector System ** * New Mexico Collector System: Consisting of four wind hubs connecting to the NM converter station which will be rated at 3,850 MW. The gross generation output is distributed as follows: Wind Hub1: 1,000 MW Wind Hub2: 1,000 MW Wind Hub3: 1,200 MW Wind Hub 4: 1,000 MW Note that this includes overbuild to account for collector system, converter station, and DC line losses as well as additional resources to enhance the utilization rate of the DC line to not less than 50%. ** Interconnection Tap with AZ EHV System: An additional intermediate interconnection will be located in AZ for collection of solar energy and may have an AC tie with the Peacock 345kV substation. Solar Hub: 500MW 4 *** Southern California AC Support System: The proposed DC converter interconnecting to the existing Lugo 500kV substation by tapping the Lugo-Mira Loma and Lugo-Rancho Vista 500kV lines. VII. ARIZONA-NEW MEXICO-CALIFORNIA SYSTEM Figure 2, below, provides a geographical and electrical overview of the Extra High Voltage (EHV) transmission system for California, Arizona and New Mexico. The Centennial West Clean Line Transmission Project is generically identified on the map as a dashed orange line. Figure 2: California-Arizona-New Mexico Regional EHV Transmission Map with Centennial West 5