CPUC Vision for Transmission Planning in the West

Dian M. Grueneich, CommissionerCalifornia Public Utilities Commission

Western Electricity Coordinating Council Annual MeetingApril 20, 2006

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Commissioner Dian M. GrueneichApril 20, 2006

Overview Major Transmission Development in California: Lots of Activity California Transmission Projects in Permitting Process Key CPUC Responsibilities Challenges Regional Transmission Siting Efforts Energy Action Plan GHG Performance Standard Renewable Potential in California Frontier Line Competitors??

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Commissioner Dian M. GrueneichApril 20, 2006

Major Transmission Development in California: Lots of Activity

Recently approved+filed+anticipated (CPUC) Over a dozen major transmission projects Would add transfer capability exceeding 8 GW Projected cost near $5 billion

Range of Objectives Maintain future reliability Economic – reduce supply and reliability cost Support energy policy objectives such as fuel

diversity and environmental benefits

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Commissioner Dian M. GrueneichApril 20, 2006

California Transmission Projects in Permitting Process

SCE’s Devers-Palo Verde 2 Increases import capacity from Arizona in LA Basin by 1,200 MW;

projected on-line date Summer 2009; estimated costs $600M SDG&E’s Sunrise Powerlink

Increases import capacity into San Diego Region on Southwest Powerlink (SWPL) by 1,000 MW; projected on-line date 2010; estimated cost $1-1.4B

SCE’s Tehachapi Region Projects Provides 700 MW of capacity from wind-rich resource area into LA

Basin; initial phases projected on-line date 2009; estimated cost $225M

Green Path (joint venture of LADWP, IID, & Citizens) Accesses renewables and increases transfer capacity into San

Diego and LA regions; projected on-line date 2010; non-jurisdictional project

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Commissioner Dian M. GrueneichApril 20, 2006

Key CPUC Responsibilities

Need determination Environmental siting (CEQA, NEPA) Cost recovery & allocation Coordination with generation development

and long-term procurement (e.g., RPS)

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Commissioner Dian M. GrueneichApril 20, 2006

Challenges

Siting Numerous approvals, rerouting tradeoffs Federal lands: Coordination with federal

agencies (EIS) Multi-state permitting Mixed CPUC jurisdictional and non-

jurisdictional project developers Interaction of projects: physically,

financially, and strategically CPUC is streamlining its permitting process

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Commissioner Dian M. GrueneichApril 20, 2006

Regional Transmission Siting Efforts

Regional planning efforts laudable but individual state permitting laws still valid

STEP transmission planning process resulted in both DPV2 & Sunrise projects, now under review in California

WECC effort to look at regional planning for economic transmission lines welcome as added technical input

In the west, do we have too many regional transmission planning entities?

WECC, STEP, RMATS, NTAC, SWAT, SSG-WI, CREPC, WGA, WIEB…

Regional efforts need to accommodate state objectives, including California loading order, energy efficiency as top priority, climate change policies, RPS requirements and goals

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Commissioner Dian M. GrueneichApril 20, 2006

Energy Action Plan

Energy Action Plan adopted by CPUC and CEC (May 2003)* Establishes a loading order of energy resource procurement

Energy efficiency and conservation Renewable generation Cleanest available fossil resources

Goal: Decrease per capita energy use and reduce toxic emissions and greenhouse gases through increased conservation, efficiency, and renewable resources. Balance cost impacts, resource diversity, and environmental responsibility

EAP II adopted by CPUC and CEC (October 2005) Builds on goals and explicitly calls for action on climate change

* The EAP can be found at http://www.cpuc.ca.gov/PUBLISHED/REPORT/28715.HTM

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Commissioner Dian M. GrueneichApril 20, 2006

GHG Performance Standard

CPUC adopted in October 2005.* CEC adopted into 2005 IEPR.

Requires IOU energy contracts and generation sources to meet or beat GHG emissions levels of a combined-cycle natural gas turbine for all long-term procurement activities

Coal-fired generation must include the capacity to capture and store carbon dioxide safely and inexpensively

Consideration of the GHG performance standard will be coordinated with implementation of the load based cap

* The GHG Performance Standard Policy Statement is posted at: http://www.cpuc.ca.gov/word_pdf/REPORT/50432.doc

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Commissioner Dian M. GrueneichApril 20, 2006

Renewable Potential in California

0

50,000

100,000

150,000

200,000

250,000

300,000

Technical ProductionPotential

Energy Delivered

GW

h

Small Hydro

Total Biomass

Geothermal

Solar PV

Wind

Solar Thermal

262,546 GWh

36,086 GWhRPS 20% by 2010: 50,260 GWh

Source: Renewable Resource Development Report, California Energy Commission, pp. C-2, C-12, November 2003;Implementing California’s Loading Order for Electricity Resources, Appendix A, Table 1, July 2005

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Commissioner Dian M. GrueneichApril 20, 2006

Frontier Line Competitors??

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Commissioner Dian M. GrueneichApril 20, 2006

Frontier Line Competitors??

TransWest Express Project