Supplemental Response No. 1 Request No. LCRA1-GMT1 Page 1 of 3 RELIANT ENERGY HL&P DOCKET NO. 22355 LOWER COLORADO RIVER AUTHORITY Q. (a) (b) (c) Will any of the projects requiring capital expenditures that you discuss in your testimony and present on Pages 3421-3423 of the UCOS Filing (“UCOS”) require a certificate of convenience and necessity (CCN)? If the answer to (a) is yes, please identify each project and discuss the stage each is at in terms of acquiring a CCN. For any projects that will require a CCN. (1) Do you anticipate a determination on the application prior to the issuance of a Final Order in this proceeding? (2) Do you anticipate being granted a CCN after the issuance of a Final Order in this proceeding? If yes and the application is later denied, how will you treat the projected cost of the project if those costs had been previously approved in this proceeding? A. (b) A CCN will be required in order to interconnect Merchant Plant 5. HL&P expects to file this application in the first quarter of 2001. HL&P has altered some of its transmission system plans and is no longer preparing a CCN application for a new Greens Bayou – White Oak 345 KV circuit. The change in HL&P’s transmission plans are the result of several developments as HL&P has progressed with its transmission system design efforts: (1) As indicated in HL&P’s response to SA2-3, HL&P has determined that the King – North Belt corridor circuits can be upgraded from 906 MVA to approximately 2,900 MVA, instead of the originally planned 1,960 MVA. The upgrade will be accomplished by using a new technology, high capacity conductors, that has not been previously applied at 345 KV by HL&P or any other ERCOT transmission provider. The circuits will initially be limited to 2,390 MVA by 4000 A substation equipment, but HL&P has further determined that it can procure 5000 A 345 KV equipment if necessary to upgrade the circuit to the conductor rating of approximately 2,900 MVA. This project is expected to be completed before the 2002 summer peak. (2) As also indicated in HL&P’s response to SA2-3, HL&P is currently upgrading the Cedar Bayou – King circuits from 878 and Supplemental Response No. 1 Request No. LCRA1-GMT1 Page 2 of 3 RELIANT ENERGY HL&P DOCKET NO. 22355 LOWER COLORADO RIVER AUTHORITY 906 MVA to approximately 2,500 MVA, instead of the originally planned increase to 1,088 MVA. This upgrade, now under construction, will also be accomplished using high capacity conductors, with completion expected before the 2002 summer peak. (3) HL&P now expects to interconnect two additional plants to its transmission system by the end of 2002, raising the total number of new plants (in addition to already completed Tenaska Frontier and Calpine Pasadena II plants) from six to eight. Also, the capacity of one of the six new plants originally identified in HL&P’s rate filing has increased from 1,100 MW to 1,650 MW. (4) Considering the changes above, HL&P has determined that there are three reasonable alternatives for interconnecting one of the new plants that were not included in HL&P’s original rate filing. Two of the three alternatives involve connecting the new plant substation by a new double 345 KV circuit to Merchant Plant 4, plus building either (a) a new Greens Bayou – White Oak 345 KV circuit, or (b) a third King – North Belt circuit. A third alternative involves looping the Cedar Bayou – P. H. Robinson 345 KV circuit into the new substation, which requires upgrading the Cedar Bayou – P. H. Robinson – Oasis substation corridor, but avoids the need for a New Greens Bayou – White Oak or third King – North Belt 345 KV circuit. All three alternatives are close in terms of overall cost, but the third alternative is a little lower in overall cost than the other two alternatives and will not require a CCN application. For this reason, HL&P is currently planning to pursue the third alternative. The details of this analysis are contained in a revised interconnection study for the associated new generating plant. The interconnection study contains Highly Sensitive Protected Information and will be provided pursuant to the Protective Order in this docket. Please contact Bunny Browning at (713) 207-5566 to make an appointment to review this material. Supplemental Response No. 1 Request No. LCRA1-GMT1 Page 3 of 3 RELIANT ENERGY HL&P DOCKET NO. 22355 LOWER COLORADO RIVER AUTHORITY (c) As indicated in the supplemental response to (b), HL&P is no longer planning to file a CCN application for a new Greens Bayou – White Oak 345 KV circuit at this time. Attachments: None Sponsor: John C. Houston