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HomeMy WebLinkAbout20180529Admitted Exhibit 72.pdfRMP Cross Exhibit PAc1FicORP-2017 IRP CHAPTER 4-TRANSMISSION O CHAPTER 4 -TRANSMISSION CHAPTER HIGHLIGHTS PacifiCorp is obligated to plan for and meet its customers'future needs,despite uncertainties surrounding environmental and emissions regulations and potential new renewable resource requirements.Regardless of future policy direction,PacifiCorp's planned transmission projects are well aligned to respond to a change in policy direction and comply with increasing reliability requirements,while providing sufficient flexibility to ensuæ resources can cost-effectively and reliably meet customer demand. Given the long periods of time necessary to site,permit and construct major new transmission lines,these projects need to be planned in advance. PacifiCorp's transmission planning and benefits evaluation efforts adhere to regulatory and compliance requirements and respond to commission and stakeholder requests for a robust evaluation process and clear criteria for evaluating transmission additions. PacifiCorp requests acknowledgment of its plan to construct the Wallula to McNary portion of the Walla Walla to McNarytransmission project (Energy Gateway Segment A) based on customer need and associated regulatory requirements.PacifiCorp requests àcknowledgement of its plan to construct the Aeolus to Bridger/Anticline portion of Gateway West (Energy Gateway Sub-Segment D2)based on customer benefits and the inclusion ofthis segment in the 2017 PacifiCorp IRP preferred portfolio. While construction of the balance of future Energy Gateway segments (i.e.,Gateway O West,Gateway South,and Boardman to Hemingway)is beyond the scope of acknowledgement for this IRP,these segments continue to offer benefits under multiple future resource scenarios.Thus,continued permitting of these segments is warranted to ensure the Company is well positioned to advancethese projects as required. PacifiCorp's bulk transmission network is designed to reliably transport electric energy from generation resources (owned generation or market purchases)to various load centers.There are numerous benefits associated with a robust transmission network: 1.Reliable delivery of energy to continuously changing customer demands under a wide variety of system operating conditions. 2.Ability to meet aggregate electrical demand and customers'energy requirements at all times,taking into account scheduledoutages and the ability to maintain reliability during unscheduledoutages. 3.Economic exchange of electric power between PacifiCorp and third-party systems and electric utility industry participants. 4.Development of economically feasible generation resources in areas where it is best suited. 5.Access to diverse energy resource areas to support customer needs. 6.Protection against extreme market conditions where limited transmission constrains energy supply. 7.Ability to meet obligations and requirements of PacifiCorp's Open Access Transmission Tariff (OATT). 8.Increased capability and capacity to access energy supply markets. 57 RMP Cross Exhibit PACIFICORP-2017 IRP CHAPTER 4 -TRANSMISSION O PacifiCorp's transmission network is a critical component of the IRP process and is highly integratedwith other transmission providers in the western United States.It has a long history of reliable service in meeting the bulk transmission needs of the region.Its purpose will become more critical in the future as energy resources become more dynamic and customer demand continues to grow. Regulatory Requirements Open Access Transmission Tariff Consistent with the requirements of its OATT,approved by the Federal Energy Regulatory Commission (FERC),PacifiCorp plans and builds its transmission system based on two customer-type agreements-network customer or point-to-point transmission service.For the network customers,PacifiCorp uses customer ten-year load and resource (L&R)forecasts,as well as network transmission service requests.Each year,the Company solicits L&R data from each of its network customers to determine future load and resource requirements for all transmission network customers.These customers include PacifiCorp Energy Supply Management (ESM)(which serves PacifiCorp's retail customers and comprises the bulk of the Company's transmission network customer needs),Utah Associated Municipal Power Systems, Utah Municipal Power Agency,Deseret Power Electric Cooperative (including Moon Lake Electric Association),Bonneville Power Administration,Basin Electric Power Cooperative, Black Hills Power,Tri-State Generation &Transmission,the United States Department of the Interior Bureau of Reclamation,and the Western Area Power Administration. The Company uses its customers'L&R forecasts and best available information,including transmission service requests,to determine project need and investment timing.If customer L&R forecasts change significantly,PacifiCorp may consider alternative deployment scenarios or schedules for its project investment,as appropriate.In accordance with FERC guidelines,the Company is able to reserve transmission network capacity based on these data.PacifiCorp's experience,however,is that the lengthy planning,permitting and construction timeline required for significant transmission investments,as well as the typical.useful life of these facilities,is well beyond the 10-year timeframe of L&R forecasts.'A 20-year planning horizon and ability to reserve transmission capacity to meet existing and forecasted need over that timeframe is more consistent with the time required to plan for and build large-scale transmission projects,and PacifiCorp supports clear regulatory acknowledgement of this reality and corresponding policy guidance. For point-to-point transmission service,the OATT requires the Company to accommodate the service on existing transmission infrastructure using existing capacity or build transmission system infrastructure as required to provide the service.The required action is determined with each point-to-point transmission service request through FERC-approved study processes that identify the transmission need. 'For example,PacifiCorp's application to begin the Environmental Impact Statement (EIS)process for the Gateway West segment of its Energy Gateway Transmission Expansion Project was filed with the Bureau of Land Management (BLM)in 2007.A partial Record of Decision was received in late April 2013,and a supplemental Record of Decision was received in January 20 17. 58 RMP Cross Exhibit PACIFICORP-2017 IRP CHAPTER 4-TRANSMISSloN O Reliability Standards PacifiCorp is required to meet mandatory FERC,North American Electric Reliability Corporation (NERC),and Western Electricity Coordinating Council (WECC)reliability standards and planning requirements.PacifiCorp's transmission system operations also responds to requests issued by Peak Reliability as the NERC Reliability Coordinator.The Company conducts annual system assessments to confirm minimum levels of system performance during a wide range of operating conditions,from serving loads with all system elements in service to extreme conditions where portions of the system are out of service.Factored into these assessments are load growth forecasts,operating history,seasonal performance,resource additions or removals,new transmission asset additions,and the largest transmission and generation contingencies.Based on these analyses,PacifiCorp identifies any potential system deficiencies and determines the infrastructure improvements needed to reliably meet customer loads.NERC planning standards define reliability of the interconnected bulk electric system in terms of adequacy and security.Adequacy is the electric system's ability to meet aggregate electrical demand for customers at all times.Security is the electric system's ability to withstand sudden disturbances or unanticipated loss of system elements.Increasing transmission capacity often requires redundant facilities in order to meet NERC reliability criteria. This chapter provides: Justification supporting acknowledgement of the Company's plan to construct the Wallula to McNary and Aeolus to Bridger/Anticlinetransmission projects. Support for the Company's plan to continue permitting Gateway South and the balance of O Gateway West; Key background information on the evolution of the Energy Gateway Transmission Expansion Plan;and An overview of the Company's investments in recent short-term system improvements that have improved reliability,helped to maximize efficient use of the existing system, and enabled the Company to defer the need for larger scale infrastructure investment. Requestfor Actulowledgementof Wallula to McNary The Wallula to McNary transmission project is required to satisfy PacifiCorp's federal regulatory obligations to its transmission customers under its OATT.Specifically obligations include an active transmission service agreement with a transmission customer where service is contingent upon completion of the project.The project consists of a 30-mile,230 kilovolt (kV)transmission line between Wallula,Washington,and McNary,Oregon,and represents a portion of the Walla Walla,Washington,to McNary Energy Gateway transmission project (Segment A).Since 2008, the Company has worked with stakeholders to permit the transmission project.In 2009,the Company decided to move forward with building the Wallula-to-McNary portion of the transmission line and delay development of the Wallula-to-Walla-Walla portion based on continuing evaluation of evolving regional transmission and resource plans.In 2011,PacifiCorp obtained a certificate of public convenience and necessity from the Public Utility Commission of Oregon.In 2014,transmission customers determined a continued need for the Wallula to McNary transmission line,which prompted the Company to restart permitting and rights-of-way acquisition activities.In addition,federal,county and local public outreach activities were reinitiated in 2015.The project is estimated to be placed into service in 2017-2018,subject to O completion of permitting,rights-of-way acquisition,and interconnection to the McNary substation.To meet its obligation to transmission customers under the OATT,the Company requests acknowledgement of the Wallula to McNary transmission project in the 2017 IRP. 59 RMP Cross Exhibit PACIFICORP-20l7 IRP CHAPTER 4 -TRANSMISSION O Factors Supporting Acknowledgement The key driver supporting PacifiCorp's request for acknowledgement of the Wallula to McNary transmission project is meeting its obligations to its transmission customers consistent with its OATT.Without the transmission line,there is no available capacity to serve transmission customers on the existing Wallula to McNary transmission line.This new line will enable the Company to meet its obligation to serve transmission customers under the OATT and an executed transmission service agreement,and improve reliability in the area by providing a second connection between Wallula and McNary and a possible future connection between Walla Walla and Wallula (see "Plan to Continue -Wallula to McNary"section below).The transmission line will support future resource growth,including access to renewable energy,and transmission needs. Currently there are only two megawatts posted for available transfer capacity on the existing line between Wallula and McNary,which is insufficient to satisfy the request for service that drives the need for the project.By contrast,there was sufficient capacity associated with the new line that was already in the permitting stage between Wallula and McNary that could be used for the requested transmission service.Based on this information,it was determined that no new studies were required to grant the transmission service request.The maximum transfer capability of the upgraded Wallula to McNary path will be determined by completion of studies in concurrence with the Western Electricity Coordination Commission Project Coordination,Path Rating and Progress Report Processes guideline. The rate offered by PacifiCorp to the transmission customer was a rolled-in or embedded rate. Under FERC precedent,transmission rates are designed using an embedded cost approach, which is the rolled-in embedded cost for the system as expanded.Embedded cost rates are justified for transmission facilities that are part of the transmission network,such as the facilities that will be installed as part of the Wallula to McNaryproject.Under FERC transmission pricing policy and precedent,network transmission facilities enjoy a presumption of rolled-in rate treatment so long as any degree of network integration or benefit is shown,and that benefit need not be large to be significant.PacifiCorp's OATT contains additional guidance on cost assignment.In section 1.27,"Network Upgrades"are defined as "Modifications or additions to transmission-related facilities that are integrated with and support the Transmission Provider's overall Transmission System for the general benefit of all users of such Transmission System." Network Upgrade costs are typically shared by all network customers.The network concept is supportedby projected use of the new line by area network customers in an outage condition of the existing line. Reliability benefits correspond to the fact that with only a single line between Wallula and McNary,line outages,either planned or unplanned,cause disruption of service to customers. This disruption can result in loss of service under existing contracts or reduced reliability for customers served from the Wallula substation.The second line provides service reliability in a single line outage condition.Additionally,the new line will provide lightning protection, allowing continued operation of the line if there is a lightning strike,whereasthe existing line is not protected.In the past,customer service has been disrupted due to line outages caused by lightningstrikes on the existing line.Constructing a second 230 kV line betweenthe Wallula and McNary substations will provide additional flexibility and added reliability to customers served in the area and is required to comply with PacifiCorp's OATT and Federal Power Act obligations.With the new line in place,outages on either the new or existing line can occur 60 RMP Cross Exhibit PACIFICORP-20 17 IRP CHAPTER 4 -TRANSMISSION without interruption of customer service,thus providing added reliability of service.The Walla Walla to McNary transmission project alleviates a constrained transmission path used to move resources into and out of the Walla Walla and Wallula areas.At this time,only the Wallula to McNary transmission line segment is being constructed to meet a customer request for point-to- point service under PacifiCorp's OATT.The segment between Walla Walla and Wallula will be completed when there is a transmission customer need. The below sections of the OATT outline the FERC requirements associated with providing transmission service as requested.These requirements mandatecompletion of the project. OATT section 28.2:As a Transmission Provider,PacifiCorp is obligated to "plan, construct,operate and maintain its Transmission System in accordance with Good Utility Practice and its planning obligations in Attachment K in order to provide the Network Customer with Network Integration Transmission Service over the Transmission Provider's Transmission System." OATT section 15.4:"If the Transmission Provider determinesthat it cannot accommodatea Completed Application for Firm Point-To-Point Transmission Service because of insufficient capability on its Transmission System,the Transmission Provider will use due diligence to expand or modify its Transmission System to provide the requestedFirm Transmission Service consistent with its planning obligations in Attachment K...." O These sections of the OATT require the transmission provided to perform transmission system upgrades as required to serve customer need driven either from network or point-to-point transmission service requests.The network needs are generatedfrom the outcome of the yearly network L&R planning study that shows projected load growth and required system changes to meet this growth.The point-to-pointneeds are driven by specific point-to-point requests where system changes are required to meet the requested service. Plan to Continue-Wallula to McNary The Wallula to McNary transmission project will offer benefits under multiple,future resource scenarios.In addition,as part of its asset exchange agreementwith Idaho Power Company,there is an option for Idaho Power to partner with PacifiCorp to construct the remaining Walla Walla to Wallula portion of the transmission line.2 To ensure the Company is well positioned to advance the projects as required to meet customer need,PaciflCorp believes it is prudent to finalize permitting,acquire rights-of-way,and construct the Wallula to McNary segment of the Walla Walla to McNarytransmission project. Requestfor Acknowledgementof Aeolus to ßridger/Anticline The 2017 PacifiCorp IRP preferred portfolio includes the Aeolus to Bridger/Anticline transmission segment (Energy Gateway West,Sub-SegmentD2).This segment is included in the preferred portfolio as a component of the least-cost,least-risk strategy for existing and future capacity delivery.The Aeolus to Bridger/Anticlinetransmission line relieves existing congestion 2 FERC Docket Nos.ECl5-54 and ER15-680. 61 RMP Cross Exhibit PAclFICORP-2017 IRP CHAPTER 4 -TRANSMISSION and facilitates the addition of new wind resources in Wyoming that can take full advantageof the federal production tax credits (PTCs)and maximize customer benefits. The 500 kV transmission segment extends 140 miles betweenthe planned Aeolus substation near Medicine Bow,Wyoming,and the new annex substation (Bridger/Anticline)that is located near the existing Bridger substation in western Wyoming.This transmission segment represents a portion of the Windstar to Populus transmission project (Segment D),which is part of Energy Gateway West.The Company,with stakeholder involvement,has pursued permitting of the Energy Gateway West transmission project since 2008.On April 26,2013 the BLM released its final Environmental Impact Statement (EIS).The Record of Decision was released on November 14,2013,which provided a right-of-way grant for the federal properties.This transmission segment was part of four Energy Gateway scenarios analyzed in the IRP and was ultimately chosen to be included in the 2017 IRP preferred portfolio.Based on the IRP analysis,the Aeolus to Bridger/Anticline transmission segment would be placed into service by the end of 2020, subject to completion of local permitting and private rights-of-way acquisitions.To align development of the Aeolus to Bridger/Anticline transmission segment with additional wind projects that will further decarbonize PacifiCorp's portfolio and qualify for the full value of PTCs by year-end 2020,thereby maximizing customer benefits,the Company requests acknowledgment in this IRP of the Aeolus to Bridger/Anticlinetransmission segment. Factors SupportíngAcknowledgement Acknowledgment of the Aeolus to Bridger/Anticlinetransmission segment is supported by the extensive analysis and demonstrated customer benefits that led to the inclusion of the transmission line in the 2017 IRP preferred portfolio.This transmission segment will allow PacifiCorp to implement system improvements,relieve existing congestion,and add incremental Wyoming wind resources to support customer needs and deliver benefits to customers in the most cost-efTectiveway.Timing of construction is driven by the phase-out schedule of federal PTCs,particularly the 2020 in-service requirements for 100 percent PTC eligibility.In addition to supporting renewable resource additions in PacifiCorp's generation portfolio,qualifying them for full value of the PTCs,the new transmission segment will increase transfer capability out of eastern Wyoming and alleviate voltage issues. PacifiCorp's transmission system in eastern Wyoming is operating at capacity,specifically the known WECC path #37 TOT 4A,which limits transfer of resources from eastern Wyoming.The TOT 4A cut plane is a WECC-defined path in southeastern Wyoming consisting of three 230 kV transmission lines.The Aeolus to Bridger/Anticlinetransmission segment increases the transfer capability from east to west across Wyoming by 750 MW.The WECC-rated path #37 TOT 4A from the rating path catalog has a non-simultaneous rating of 1,025 MW.However,the interaction with WECC path #38,TOT 4B,limits the transfer capability of TOT 4A in real-time operations.TOT 4A is currently identified as a constrained path in the mainly 230 kV transmission system in eastern Wyoming.To relieve existing congestion and add resources in eastern Wyoming,new transmission is required to increase transfer capability out of eastern Wyoming. Completion of the new transmission segment will allow the addition of up to 1,270 MWs of additional wind resources (depending on re-dispatch)added to the system east of the TOT 4A cut plane.PacifiCorp's preferred portfolio includes 1,100 MW of new wind resources,which reflects a least-cost,least risk mix when the anticipated economic re-dispatch of resources in the area is considered.Importantly,the transmission project includes critical voltage support,which is the 62 RMP Cross Exhibit PAciviCORP-2017 IRP CHAPTER 4 -TRANSMISSION system limitation in the area.The new transmission capacity,voltage support,generation re- dispatch,and a generator tripping scheme will allow for a disproportionate amount of wind generation to be integrated into the system.The 230 kV transmission system today east of the TOT 4A cut plane is operating at the limits of the system and has fully exhausted the ability to interconnect additional resources behind the cut plane.The addition of this new transmission segment has the potential to provide a path for projects sited east of the TOT 4A interconnected at or near Aeolus Substation. Voltage control issues under certain operating conditions have been identified on the transmission system in southeastern Wyoming,with additions of wind resources in the area exacerbating the issue.An identified solution to the voltage control issues is the addition of transmission lines in the area.The transmission system in the area will benefit with the addition of the new transmission segment by reducing voltage issues behind the TOT 4A cut plane that currently restrict the addition of new resources interconnected behind the cut plane. Other customer benefits of the new transmission segment include increased reliability of the transmission system,congestion relief,reduction of capacity and energy losses on the transmission system,and greater flexibilitymanaging existing generation resources.Reliability will be augmented with the addition of the new transmission segment,which will provide support to the underlying 230 kV system during outages.Most of these outages result in a deration of TOT 4A transfer capacity and some outage scenarios require significant generation curtailment.The new 500 kV transmission segment will significantly reduce,if not eliminate, many of the impacts caused by the 230 kV outages.Increased energy imbalance market (EIM) and transmission wheeling opportunities under the OATT will also result from the additional system capacity.Capacity and energy losses on the transmission system are reduced with the new transmission segment,which has the potential to provide significant monetary savings over time. GatewayWest -Continued Permitting In addition to the Windstar to Populus line (Energy Gateway Segment D),the Gateway West transmission project also includes the Populus to Hemingway transmission segment (Energy Gateway Segment E).In a future IRP,the Company will support a request for acknowledgement to construct the balance of Gateway West with a cost-benefit analysis for the project.While the Company is not requesting acknowledgement in this IRP of a plan to construct these segments at this time,the Company will continue to permit the projects. Windstar to Populus(Segment D) The Windstar to Populus transmission project consists of three key sections: Dl-A single-circuit 230 kV line that will run Figure 4.1 -Segment D approximately 75 miles between the existing Windstar substation in eastern Wyoming and the ^YwsgyWYOM I NG planned Aeolus substation near Medicine Bow, Wyoming;ewindnr D2-A single-circuit 500 kV line running approximately 140 miles from the planned ' 63 RMP Cross Exhibit _- PAcrEiCORP-2017IRP CHAPTER4-TRANSMISSloN OAeolussubstationtoanewannexsubstation(Anticline)near the existing Bridger substation in western Wyoming;and D3-A single-circuit 500 kV line running approximately 200 miles between the new annex substation (Anticline)and the recently constructed Populus substation in southeast Idaho. Populusto Hemingway(Segment E) Figure 4.2 -Segment E The Populus to Hemingway transmission project consists N D A Ho of two single-circuit 500 kV lines that run approximately M.Inwa 500 miles between the Populus substation in eastern Idaho to the Hemingway substation in western Idaho. Midpoint Borah The Gateway West project would enable the Company to more efficiently dispatch system resources,improve performance of the transmission system (i.e.,reduce line losses),improve reliability,and enable access to a diverse range of new resource alternatives over the long term. Under the National Environmental Policy Act,the BLM has completed the EIS for the Gateway West project.The BLM released its fmal EIS on April 26,2013,followed by the Record of Decision on November 14,2013,providing a right-of-way grant for all of Segment D and most of Segment E of the project.The Agency chose to defer its decision on the western-most portion of Segment E of the project located in Idaho in order to perform additional review of the Morley Nelson Snake River Birds of Prey Conservation Area.Specifically,the sections of Gateway West that were deferred for a later Record of Decision include the sections of Segment E from Midpoint to Hemingway and Cedar Hill to Hemingway.A Record of Decision for these final sections of Segment E was issued on January 19,2017. GatewaySouth -Continued Permitting As part of PacifiCorp's Energy Gateway Transmission Figure 4.3 -Segment F Expansion,the Company is planning to build a high-PµA.. voltage transmission line,known as Gateway South (Segment F),which extends approximately 400 miles from the planned Aeolus substation in southeastern 6 Wyoming into the Clover substation near Mona,Utah. The BLM published its Notice of Intent in the Federal Mona Register in April 2011,followed by public scoping col &A meetings throughout the project area.Comments on this project from agencies and other interested stakeholderswere considered as the BLM developed the draft EIS,which was issued in February 2014.A final EIS was released May 2016 and the Record of Decision was signed December 13,2016. Plan to Continue Permitting -GatewayWest and GatewaySouth The Gateway West and Gateway South transmission projects continue to offer benefits under multiple,future resource scenarios.To ensure the Company is well positioned to advancethe 64 RMP Cross Exhibit PACIFICORP-2017 IRP CHAPTER 4 -TRANSMISSION projects,it is prudent for PacifiCorp to continue to permit the balance of Gateway West and Gateway South transmission projects.The Records of Decision and rights-of-way grants contain many conditions and stipulations that must be met and accepted before a project can move to construction.PacifiCorp will continue the work necessary to meet these requirements and will continue to meet regularly with the Bureau of Land Management to review progress. Energy GatewayTransmission ExpansionPlan Introduction Given the long periods of time necessary to successfully site,permit and construct major new transmission lines,these projects need to be planned well in advance.The Energy Gateway Transmission Expansion Plan is the result of several robust local and regional transmission planning efforts that are ongoing and have been conducted multiple times over a period of several years.The purpose of this section is to provide important background information on the transmission planning efforts that led to PacifiCorp's proposal of the Energy Gateway Transmission Expansion Plan. Background Until PacifiCorp's announcement of Energy Gateway in 2007,its transmission planning efforts traditionally centered on the generation additions identified in the IRP.With timelines of seven O to ten years or more required to site,permit,and build transmission,this traditional planning approachwas proven problematic,leading to a perpetual state of transmission planning and new transmission capacity not being available in time to be viable transmission resource options for meeting customer need.The existing transmission system has been at capacity for several years, and new capability is necessary to enablenew resource development. The Energy Gateway Transmission Expansion Plan,formally announced in May 2007,has origins in numerous local and regional transmission planning efforts discussed further below. Energy Gateway was designed to ensure a reliable,adequate system capable of meeting current and future customer needs.Importantly,given the changing resource picture,its design supports multiple future resource scenarios by connecting resource-rich areas and major load centers across PacifiCorp's multi-state service area.In addition,the ability to use these resource-rich areas helps position PacifiCorp to meet current state renewable portfolio requirements.Please refer to the regional maps of wind,solar,biomass,and geothermal potential available on PacifiCorp's Energy Gateway project website to see an overlay of the Energy Gateway project and renewable resource potential.3 Energy Gateway has since been included in all relevant local, regional and interconnection-wide transmission studies. Planning Initiatives Energy Gateway is the result of robust local and regional transmission planning efforts. PacifiCorp has participated in numerous transmission planning initiatives,both leading up to and since Energy Gateway's announcement.Stakeholder involvement has played an important role in each of these initiatives,including participation from state and federal regulators,government 'http://www.pacificorp.com/tran/tpleg html 65 RMP Cross Exhibit PACIFICORP-2017IRP CHAPTER4-TRANSMISSION agencies,private and public energy providers,independent developers,consumer advocates, renewable energy groups,policy think tanks,environmental groups,and elected officials.These studies have shown a critical need to alleviate transmission congestion and move constrained energyresources to regional load centers throughout the west,and include: Northwest Transmission Assessment Committee (NTAC) The NTAC was the sub-regional transmission planning group representing the Northwest region,preceding Northern Tier Transmission Group and ColumbiaGrid.The NTAC developed long term transmission options for resources located within the provinces of British Columbia and Alberta,and the states of Montana,Washington and Oregon to serve Pacific Northwest loads and northern California. Rocky Mountain Area Transmission Study Recommendedtransmission expansions "The analyses presented in thisoverlapsignificantlywithEnergyGatewayReportsuggestthatwell-configuration,including:considered transmission o Bridger system expansion similar to upgrades capable of giving LSEs Gateway West greateraccess to lower cost o Southeast Idaho to southwestUtah generationand enhancing fuel a diversity,are cost-effectiveforexpansionakintoGatewayCentralconsumersunderavanetyofandSigurdtoRedButtereasonableassumptionsaboutoImprovedeast-west connectivity natural gas prices.similar to Energy Gateway Segment H alternatives Western Governors'Association Transmission Task Force Report Examined the transmissionneeded to deliver the largely remote generation "The Task For ce observes that resources contemplatedby the Clean and transmission invesonents Diversified Energy Advisory Committee,typicany continue to provide value even as networkThiseffortbuiltuonthetransmissionconditionschange.For example,previously modeled by the Seams Steering transmission originally built toGroup-Western Interconnection,and the site of a now obsolete included transmission necessary to support a power plant continues to be range of resource scenarios,including high used since a new power plant is efficiency,high renewablesand high coal often constructed at the same scenarios.Again,for PacifiCorp's system,location the transmission expansion that supported these scenarios closely resembled Energy Gateway's configuration. Western Regional Transmission Expansion Partnership (WRTEP) The WRTEP was a group of six utilities working with four western governors'offices to evaluate the proposed Frontier Transmission Line.The Frontier Line was proposed to connect California and Nevada to Wyoming's Powder River Basin through Utah.The utilities involved were PacifiCorp,Nevada Power,Pacific Gas &Electric,San Diego Gas &Electric,Southern California Edison,and Sierra Pacific Power. Northern Tier Transmission Group (NTTG)Transmission Planning Reports : 66 RMP Cross Exhibit PACIFICORP-2017 IRP CHAPTER4-TRANSMISSION In the 2016-2017 NTTG Draft Regional Transmission Plan,Energy Gateway (both 'Wfter analy:ing the steady-state performanceof stresseriGatewayWestandGatewaySouthandconditionedcases,a rigorousGatewayWest)were listed as necessary for conttngency analysisacceptablesystemperformance.The study cornmenced-then.NEG also establishedthat the amount of new Technical cornmittee Wyoming wind that is added over time 'determined additional facilities impacts the transmission system reliability would be needed to meet the west of Wyoming.Additionally three reh ability entena...' interregional projects were included in the study (SWIP North,Cross Tie and TransWest Express),which showedthat all three projects relied on Energy Gateway to attain their full transfer capability rating. WECC/Transmission Expansion Policy and Planning Committee (TEPPC)Annual Reports and Western Interconnection Transmission Path Utilization Studies "Path 19 [Bridger]is the most These analyses measure the historical use of heavily loaded WECC path in the transmission paths in the west to provide study ...Usage on this path is currently of interest due to theinsightintowherecongestionisoccurringandhighnumberofrequestsforassessthecostofthatcongestion.The Energy transmission service to moveGatewaysegmentshavebeenincludedintherenewablepowertotheWest analyses that support these studies,alleviating from the wyoming area, several points of significant congestion on the system, O includingPath 19 (Bridger West)and Path 20 (Path C). Energy GatewayConfiguration To address constraints identified on PacifiCorp's system,as well as meeting system reliability requirements discussed further below,the recommended bulk electric transmission additions took on a consistent footprint,which is now known as Energy Gateway.This expansion plan establishes a triangle of reliability that spans Utah,Idaho and Wyoming with paths extending into Oregon and Washington,and contemplates logical resource locations for the long term based on environmental constraints,economic generation resources,and federal and state energy policies. Since Energy Gateway's announcement,this series of projects has continued to be vetted through multiple public transmission planning forums at the local,regional and interconnection-wide levels.In accordancewith the local planning requirements in PacifiCorp's OATT,Attachment K, the Company has conducted numerous public meetings on Energy Gateway and transmission planning in general.Meeting notices and materials are posted publicly on PacifiCorp's Attachment K Open Access Same-time Information System (OASIS)site.PacifiCorp is also a member of NTTG and WECC's TEPPC. These groups continually evaluate PacifiCorp's transmission plan in their efforts to develop and refine the optimal regional and interconnection-wide plans.Please refer to PacifiCorp's OASIS site for information and materials related to these public processes.4 4 Ì1ÍÍP:ÍWWW.ORÍÏORSÎS.com/ppwlindex.html 67 RMP Cross Exhibit PACIFICORP-2017 IRP CHAPTER 4 -TRANSMISSION O Additionally,an extensive 18-month stakeholder process on Gateway West and Gateway South was conducted.This stakeholder process was conducted in accordance with WECC Regional Planning Project Review guidelines and FERC OATT planning principles,and was used to establish need,assess benefits to the region,vet alternatives and eliminate duplication of projects.Meeting materials and related reports can be found on PacifiCorp's Energy Gateway OASIS site. Energy Gateway'sContinued Evolution The Energy Gateway Transmission Expansion Plan is the result of years of ongoing local and regional transmission planning efforts with significant customer and stakeholder involvement. Since its announcement in May 2007,Energy Gateway's scope and scale have continued to evolve to meet the future needs of PacifiCorp customers and the requirements of mandatory transmission planning standards and criteria.Additionally,PacifiCorp has improved its ability to meet near-term customer needs through a limited number of smaller-scale investments that maximize efficient use of the current system and help defer,to some degree,the need for larger capital investments like Energy Gateway (see the following section on Efforts to Maximize Existing System Capability).The IRP process,as compared to transmission planning,is a frequently changing resource planning process that does not always support the longer-term development needs of transmission,or the ability to implement transmission in time to meet customer need.Together,however,the IRP and transmission planning processes complement each other by helping PacifiCorp optimize the timing of its transmission and resource investments for meeting customer needs. While the core principles for Energy Gateway's design have not changed,the project configuration and timing continue to be reviewed and modified to coincide with the latest mandatory transmission system reliability standards and performance requirements,annual system reliability assessments,input from several years of federal and state permitting processes, and changes in generation resource planning and our customers'forecasteddemand for energy. As originally announced in May 2007,Energy Gateway consisted of a combination of single- and double-circuit 230 kV,345 kV and 500 kV lines connecting Wyoming,Idaho,Utah,Oregon and Nevada.In response to regulatory and industry input regarding potential regional benefits of "upsizing"the project capacity (for example,maximized use of energy corridors,reduced environmental impacts and improved economies of scale),the Company included in its original plan the potential for doubling the project's capacity to accommodate third-party and equity partnership interests.During late 2007 and early 2008,PacifiCorp received in excess of 6,000 MW of requests for incremental transmission service across the Energy Gateway footprint, which supported the upsized configuration.The Company identified the costs required for this upsized system and offered transmission service contracts to queue customers.These customers, however,were unable to commit due to the upfront costs and lack of firm contracts with customers to take delivery of future generation,and withdrew their requests.In parallel, PacifiCorp pursued several potential partnerships with other transmission developers and entities with transmission proposals in the Intermountain Region.Due to the significant upfront costs inherent in transmission investments,firm partnership commitments also failed to materialize, leading PacifiCorp to pursue the current configuration with the intent of only developing system capacity sufficient to meet the long-term needs of its customers. 68 RMP Cross Exhibit PACIFICORP-2017 IRP CHAPTER ¢-TRANSMISSION In 2010,the Company entered into memorandums of understanding to explore potential joint- development opportunities with Idaho Power Company on its Boardman to Hemingway project and with Portland General Electric Company (PGE)on its Cascade Crossing project.One of the key purposes of Energy Gateway is to better integrate PacifiCorp's east and west balancing authority areas,and Gateway Segment H from western Idaho into southern Oregon was originally proposed to satisfy this need.However,recognizing the potential mutual benefits and value for customers of jointly developing transmission,PacifiCorp has pursued these potential partnership opþortunities as a potential lower-cost alternative. In 2011,the Company announced the indefinite postponement of the 500 kV Gateway South segment between the Mona substation in central Utah and Crystal substation in Nevada.This extension of Gateway South,like the double-circuit configuration discussed above,was a component of the upsized system to address regional needs if supported by queue customers or partnerships.However,despite significant third-party interest in the Gateway South segment to Nevada,there was a lack of financial commitment needed to support the upsized configuration. In 2012,the Company determined that one new 230 kV line between the Windstar and Aeolus substations and a rebuild of the existing 230 kV line were feasible,and that the second new proposed 230 kV line and proposed 500 kV line planned between Windstar and Aeolus would be eliminated.This decision resulted from the Company's ongoing focus on meeting customer needs,taking stakeholder feedback and land-use limitations into consideration,and finding the best balance between cost and risk for customers.In January 2012,the Company signed the Boardman to Hemingway Permitting Agreement with Idaho Power Company and the Bonneville O Power Administration (BPA)that provides for the Company's participation through the permitting phase of the project.The Boardman to Hemingway project was pursued as an alternative to PacifiCorp's originally proposed transmission segment from eastern Idaho into southern Oregon (Hemingway to Captain Jack).Idaho Power leads the permitting efforts on the Boardman to Hemingway project,and PacifiCorp continues to support these activities under the conditions of the Boardman to Hemingway Transmission Project Joint Permit Funding Agreement.The proposed line provides additional connectivity between PacifiCorp's west and east balancing authority areas and supports the full projected line rating for the Gateway projects at full build out.PacifiCorp plans to continue forward in support of the project under the Permit Funding agreement and will assess next steps post-permitting based on customer need and possible benefits. In January 2013,PacifiCorp began discussions with PGE regarding changes to its Cascade Crossing transmission project and potential opportunities for joint development or firm capacity rights on PacifiCorp's Oregon system.The Company further notes that it had a memorandum of understanding with PGE for the development of Cascade Crossing that terminated by its own terms.PacifiCorp had continued to evaluate potential partnership opportunities with PGE once it announced its intention to pursue Cascade Crossing with BPA.However,because PGE decided to end discussions with BPA and instead pursue other options,PacifiCorp is not actively pursuing this opportunity.PacifiCorp continues to look to partner with third parties on transmission development as opportunities arise. In May 2013,PaciflCorp completed the Mona to Oguirrh project.In November 2013,the Bureau of Land Management issued a partial Record of Decision providing a right-of-way grant for all of Segment D and most of Segment E of Energy Gateway.The agency chose to defer its decision on the western-most portion of Segment E of the project located in Idaho in order to perform additional review of the Morley Nelson Snake River Birds of Prey Conservation Area. 69 RMP Cross Exhibit _. PACIFICORP-2017IRP CHAPTER4--TRANSMISSION Specifically,the sections of Gateway West that were deferred for a later Record of Decision include the sections of Segment E from Midpoint to Hemingway and Cedar Hill to Hemingway. In May 2015,the Sigurd to Red Butte project was completed and placed in-service. In December 2016,the Bureau of Land Management issued its Record of Decision and right-of- way grant for the Gateway South project. In January 2017,the Bureau of Land Management issued its Record of Decision and right-of- way grant,previously deferred as part of the November 2013 partial Record of Decision,for the sections of Segment E from Midpoint to Hemingway and Cedar Hill to Hemingway. PacifiCorp evaluated four Energy Gateway scenarios in this 20l7 IRP: Energy Gateway 1:Segment D Windstar to Aeolus 230 kV (one new line and one re-built line)and Aeolus to Bridger/Anticline500 kV line; Energy Gateway 2:Segment F Windstar to Aeolus 230 kV (one new line and one re-built line)and Aeolus to Mona/Clover 500 kV line; Energy Gateway 3:Segments D &F Windstar to Aeolus 230 kV (one new line and one re-built line)and Aeolus to Bridger/Anticline,Bridger/Anticlineto Populus and Aeolus to Mona/Clover 500 kV lines;and Energy Gateway 4:Segment D2 Aeolus to Bridger/Anticline500 kV line. This analysis demonstrates that Energy Gateway 4 (Aeolus to Bridger/Anticline)showed potential to align development of this new transmission line with new PTC-eligible wind resources and provide value for PaciflCorp customers.PacifiCorp refined its analysis during the IRP process,to understand how the most current assumptions would influence potential customer benefits associated with this new transmission line.The refined analysis shows that the Energy Gateway 4 scenario,Aeolus to Bridger/Anticline,in conjunction with new wind additions and PTCs,is the most cost-effective Energy Gateway transmission segment,providing the most benefit to customers.Energy Gateway 4 is therefore a component of the 2017 IRP preferred portfolio. Finally,the timing of segments is regularly assessed and adjusted.While permitting delays have played a significant role in the adjusted timing of some segments (e.g.,Gateway West,Gateway South,and Boardman to Hemingway),PacifiCorp has been proactive in deferring in-service dates as needed due to permitting schedules,moderated load growth,changing customer needs, and system reliability improvements. PacifiCorp will continue to adjust the timing and configuration of its proposed transmission investments based on its ongoing assessment of the system's ability to meet customer needs and its compliance with mandatory reliability standards. O 70 RMP Cross Exhibit PAclFICORP--2017]RP CHAPTER4-TRANSMISSION O Figure 4.4 -Energy Gateway Transmission Expansion Plan WASHINGTON .MONTANA McNary Wanula OgFGON IDAHO captainJacks Borab gwindaar Cedar NNI An D2D3 CALIFORNIA NEVADA ou F COLOR A DO6PacifiCorpretailservicearea New transmission lines:UT A H -500 kV minimum voltage Red Buus -345 kV minimum voltage -230 kV minimum voltage e Existing substation O New substation ARIZONA NEW MEXICO This map is for general reference only and reflects current plans lt may not reflect the final routes,construction sequence or exact line configuration. Approximate Segment &Name Description Mileage Status and Scheduled In-Service (A)230 kV,single circuit 30 mi Status:local permitting completed Wallula-McNary Scheduled in-service:2018 is sponsor driven 345 kV,double circuit 135 mi Status:completed Populus-Terminal Placed in-service:November 2010 (C)500 kV single circuit 100 mi Status:completed Mona-Oquirrh 345 k,V double circuit Placed in-service:May 2013 Status:rights-of-way acquisition underwayOguirrh-Terminal 345 kV double circuit 14 mi Scheduled in-service:2021 New 230 kV single circuit(Dl)Re-built 230 kV single 75 mi Status:permitting underway Windstar-Aeolus Scheduled in-service:2019-2024circuit A us-500 kV single circuit 140 mi Status:permitting underway Bridger/Anticline Scheduled in-service:2020 Bridge A3nticline- 500 kV single circuit 200 mi Status:permitting underway Populus Scheduled in-service:2020-2024 (E)Status:permitting underway .500 kV single circuit 500 miOPopulus-Hemmgway Scheduled in-service:2020-2024 (F)500 kV single circuit 400 mi Status:permitting underway 71 RMP Cross Exhibit PACIFICORP-2017 IRP CHAPTER 4 -TRANSMISSION Approximate Segment &Name Description Mileage Status and Scheduled In-Service Aeolus-Mona Scheduled in-service:2020-2024 (G).Status:construction began May 2013345kVsinglecircuit170miSigurd-Red Butte Placed in-service:May 20l5 (H)Status:pursuing joint-development and/or firm Boardman-500 kV single circuit 500 mi capacity opportunities with project sponsors Hemingway Scheduled in-service:sponsor driven Efforts to Maximize Existing System Capability In addition to investing in the Energy Gateway transmission projects,PacifiCorp continues to make other system improvements that have helped maximize efficient use of the existing transmission system and defer the need for larger-scale,longer-term infrastructure investment. Despite limited new transmission capacity being added to the system over the last 20 to 30 years, PacifiCorp has maintained system reliability and maximized system efficiency through other smaller-scale,incremental projects. System-wide,the Company has instituted more than 155 grid operating procedures and 17 special protection schemes to maximize the existing system capability whilemanaging system risk.In addition,PacifiCorp has been an active participant in the EIM since November 2014.The EIM provides for more efficient dispatch of participating resources in real-time through an automated system that dispatches generation across the EIM footprint,which currently includes the PacifiCorp east and west balancing authority areas,the NV Energy,Puget Sound Energy, Arizona Public Service balancing authority areas,and the CAISO balancing authority area (collectively,EIM Area)for use as short-term balancing resources to ensure energy supply matches demand.Entities scheduled to join the EIM include PGE (October 2017),Idaho Power Company (April 2018),Seattle City Light (April 2019),and the Balancing Authority of Northern California (April 2019).By broadening the pool of lower-cost resources that can be accessed to balance systems,reliability is enhanced and system costs are reduced across the entire EIM Area. In addition,the automated system is able to identify and use available transmission capacity to transfer the dispatched resources,enabling more efficient use of the available transmission system. Transmission System ImprovementsPlaced In-Service Since the 2015 IRP Constructed the new Standpipe substation and installed a synchronous condenserlocated in Wyoming. Installed an additional 230/115 kV 250 MVA transformer at Casper substation located in Wyoming. Installed shunt capacitors at Fry substation located in Oregon. Installed a load-shedding scheme at Grass Creek and Thermopolis substations located in Wyoming. Installed a phase-shifting transformer and series reactor at Upalco substation located in Utah. Installed an additional 230/115 kV 250 MVA transformer and 230 kV ring bus at Union Gap substation located in Washington. Expanded the 230 kV ring bus at PomonaHeights substation located in Washington. Installed new relays on the Rigby to Sugarmill 161 kV line located in Idaho. 72 RMP Cross Exhibit PACIFICORP-2017 IRP CHAPTER 4-TRANSMlSSION Installed new relays on the Rigby to Jefferson 161 kV line located in Idaho. Installed a phase-shifting transformer at Pinto substation located in Utah. Constructed the new Whetstone substation located in Oregon. Constructed a 10-mile,46 kV line from the Holden substation tap to the Flowell-Robison line located in Utah. Converted the Highland substation to 138 kV located in Utah. Installed a 138/46kV transformer at Snyderville substation located in Utah. Planned Transmission System Improvements Replace the existing l 15/69 kV transformer at Weed substation with a 50 MVA LTC unit located in California. Replace 500 kV line relays at several500 kV substations located in Oregon. Energize one circuit of the 230kV Ben Lomond to Parrish line as a three-terminal 138kV line from Ben Lomond to Syracuse and Parrish located in Utah. Install a new remedial action scheme (RAS)in the Goshen/Rigby area located in Idaho. Reconstruct the Goshen-Jefferson 161kV line located in Idaho. Energize Red Butte-St.George 345 kV line at 138 kV located in Utah. Install a new bay with a breaker and half scheme at Spanish Fork substation located in Utah. Install a second 700 MVA 345/138 kV transformer at Syracuse substation located in Utah. O Install backup bus differential relays at various substations located in Utah and Wyoming. Replace breakers identified as over-dutied with higher-capability breakers in various substations located in Utah,Wyoming,and Idaho. Replace an existing oil breaker at the Treasureton 138 kV substation with a SF6 breaker and add a circuit switcher in series with the breaker located in Utah. Replace conductor on the Moxee-Hopland section of the Moxee-Union Gap l15 kV line located in Washington. Construct two new 500-230 kV substations,Snow Goose and Sams Valley,located in Oregon. Rebuild the 230 kV portion of the Troutdale substation,located in Oregon,into a six breaker ring bus configuration. Rebuild the l 15 kV main and transfer bus into a breaker and half scheme at the Union Gap substation in Washington. Construct a 138 kV line from Croydon substation to Silver Creek substation located in Utah. Replace conductor between Hazelwood and BPA Albany and construct a new 115 kV ring bus at Hazelwood substation located in Oregon. Replace the 25 MVA 115 kV-69 kV transformer at Dry Gulch with a 50 MVA transformer located in Washington. Convert portions of Portland,Oregon area transmission network to 115 kV from 57 kV and 69 kV. Install an additional 115 kV-69 kV transformer at Yreka substation located in California. Install a new 230 kV-115 kV transformer at Ponderosasubstation and a new seven-mile 115 kV transmission line between Ponderosaand Baldwin substations located in Oregon. 73 RMP Cross Exhibit PACIFICORP-2017IRP CHAPTER4-TRANSMISSION OTheseinvestmentshelpmaximizetheexistingsystem's capability,improve the Company's ability to serve growing customer loads,improve reliability,increase transfer capacity across WECC Paths,reduce the risk of voltage collapse and maintain compliance with NERC and WECC reliability standards. e e 74