Increasing Access to the Grid

NIPPCSeptember 8, 2005

Brian SilversteinBrian SilversteinVP, Operations and PlanningVP, Operations and PlanningBonneville Power AdministrationBonneville Power Administration

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Increasing Access to the Grid

Expand the Pie

Increase Utilization

Coordinated Planning

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2001: Network Constraints

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Infrastructure Program

To address the region’s transmission needs, BPA developed a transmission infrastructure program in 2001 to focus on: Maintaining reliable transmission service to

population centers. Restoring or enhancing transfer capability across

key paths. Providing margin so the system can be

maintained. Evaluating and investing in non-wires alternatives.

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Infrastructure Accomplishments

First major line construction in the Northwest since 1987.

Invested more than $1 billion over four years. Two 500-kV lines completed, one under way. Modernized the nation's largest direct current

terminal (Celilo Converter - 3100 MW). Several projects to upgrade local load service.

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M o n t a n a

I d a h oO r e g o n

W a s h i n g t o nGrand Coulee-Bell 500 KVTransmission Line ProjectApril 2003-Dec 2004

Northern IdahoReinforcement

Schultz Series CapacitorsMarch 2003-Nov 2004

PearlTransformer

ProjectDec 2002-Dec 2003

OlympicPeninsula

Reinforcement

1-5 CorridorGeneration Addition

Kangley-Echo Lake 500 KVTransmission Line ProjectJuly 2003-Dec 2003

Puget Sound Area500/230 KV

Transformer

Schultz-Hanford Area

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SW WashingtonNW Oregon Reinforcement Portland Area

Reinforcement

Swan ValleyGoshen Rebuild

Lower ValleyReinforcement

Anderson RanchMountain Home RebuildSouthwest Oregon

Coast Reinforcement

AlbanyEugeneRebuild

Celilo ModernizationWinter 2001-June 2004

West of McnaryWest of Slatt

Raymond-Cos

Status of BPA Infrastructure Additions

CompletedUnderwaySubstationProject Completed

BPATransmission Lines

IndianReservation

On HoldProposedSubstationProject Completed

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2005: Network Constraints

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Non Wires Solutions

Potential Measures Demand response Energy efficiency Distributed generation Appropriately sited large generation

Objectives Find least-cost solutions to transmission limitations Provide equivalent reliability to a transmission fix Benefits of transmission deferral

Time value of money Option value of delaying costly investments

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Path Utilization Example

Cumulative Frequency Distribution2001- 2005 Jul-Oct Heavy Load Hours Only

West of McNary

0

500

1000

1500

2000

2500

0% 20% 40% 60% 80% 100%

PERCENT OF TIME LOADINGS AT OR ABOVE MW VALUE

MW

Jul-Oct

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Increase Utilization

Flow-based ATC methodology Constraint Schedule Management New products and services

Conditional firm Redispatch

Better remarketing of unused rights Strategic use of nonfirm and short-term firm

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Transmission Buying Strategy for Wind

0

25

50

75

100

Traditional Strategic

MW

Nonfirm

ST Firm

LT Firm

Average Output

Peak Output

Sel

l W

hen

No

t N

eede

d

Bu

y W

hen

Nee

ded

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Integrated Planning Concept

Objective: Achieve an adequate and least-cost plan in a functionally separated industry.

Premise: Most commitments to long-term transmission, particularly those that require expansion, are tied to utility power purchase agreements.

Concept: Establish a coordinated planning cycle that links individual utility resource planning with a region-wide transmission open season.

Benefits: Improves our ability to develop transmission when needed. Provides for a regional adequacy assessment.

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Integrated Planning Concept

Start/Finish

ResourcePlanning

TransmissionPlanning

Integrated Txm Plan

TxmCommitments

TxmOpen

Season

RegionalAdequacy

Assessment

IRP

RFP

Utility Resource

Plan

Locational E

xpansion Costs