ATC Major Projects Update
Flora Flygt, Director of System Planning Franc Fennessy, Manager of Local Relations
Wisconsin Industrial Energy Group August 9, 2007
Madison, WI
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Access Initiative
Goal: Reduce delivered cost of energy to Wisconsin consumers by . . .
– reducing system congestion– improving access to additional energy sources
Solution: Add an additional 345 kV circuit to the existing 345 kV line (W4) between Rockdale SS (Dane) and Paddock SS (Rock)
Project estimated costs (2010):– Preferred route: $132.7 million– Alternate route: $210.8 million
3
Access: Net Present Value Benefits less Project Costs
(2010)
Paddock-Rockdale Analysis - NPV of Net Benefits (Costs)
($ Millions)
RobustEconomy
No NALX -COL
RobustEconom
yHigh
RetirementsHigh
EnvironmentalSlow
Growth
FuelSupply
Disruption
HighGrowth
Wisconsin
APC $341 $299 $574 $82 ($62) $575 $265
70% APC + 30% LLMP $529 $455 $950 $132 ($47) $956 $544
LLMP $968 $819 $1,826 $249 ($12) $1,843 $1,196
ATC CustomerBenefit $409 $356 $710 $104 ($56) $710 $365
APC = Adjusted Production Costs
LLMP = Load-weighted Locational Marginal Prices
4
Access: Net Present Value Benefits less Project Costs (2010)
Paddock-Rockdale Net Present Value ($Millions)
($500)
$0
$500
$1,000
$1,500
$2,000
APC 70% APC + 30% LLMP LLMP ATC Customer Benefit
Robust EconomyWithout
Add’l EHV
RobustEconomy
With Add’l EHV
High Retire
s
HighEnvironme
nt
Slow Growt
h
FuelSupply
Disruption
High Growth
Wisconsin
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Background
Dane County has experienced major economic growth in the last 25 years.
Three of Wisconsin’s top 5 fastest growing municipalities are in Dane County (Verona, Cottage Grove and Sun Prairie). (Includes municipalities with a population of 5,000 or more in 2005; data source: U.S. Census Bureau.)
Dane County’s electricity consumption is expected to continue to increase through year 2020.
System-reliability models indicate that new transmission lines will be needed in Dane County by 2008 and every few years thereafter to keep pace with this growing demand.
ATC proposed five projects to deal with this growth
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Public Outreach
Extensive outreach on all Dane County projects– Energy Initiative Study – supported a group
of stakeholders and traditional interveners in review of Dane County’s transmission needs
– Project communications, open houses– Ongoing consultation with regulatory
agencies– Extensive media relations– Polling– Advertising
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Dane County Transmission Projects
North Madison-Huiskamp – approval 7/12/07 Femrite-Sprecher – in service Fitchburg-Verona – application complete,
pending hearings Paddock-Rockdale – application complete,
hearings set Rockdale-West Middleton – routes
announced in August
9
North Madison-Huiskamp
Project(aka “Waunakee Project”)
Controversy early in project– 39 different parties, two intervenor groups– More than 100 public hearing witnesses– Calls for ‘independent’ study
Excerpts from PSCW oral discussion of decision:– “Ebert said this agenda item represents probably the
most pressing reliability challenge he has seen since becoming Chairman.”
– “Ebert said the [PSC] was formed 100 years ago and was created precisely to conduct that independent review.”
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Dane County 345 kV Project
Rockdale – West Middleton (Dane)– Resolves significant voltage and reliability
issues in Madison area– Final routes were announced on August 1;
PSCW filing in October 2007– Considerable public involvement effort to date.
Open houses this month– Underground options evaluated—will not be
recommended by ATC– In-Service: 2013
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Other 345 kV Projects
Arrowhead – Weston – On schedule & budget for June 2008
Gardner Park - Central Wisconsin– WPS Weston 4 generator interconnection– Early in construction; in-service 2009
Morgan – Werner West– System enhancement project in NE Wisconsin– Early in Construction; in-service
2009