TRANSMISSION INFRASTRUCTURE IMPROVEMENTS Current Projects

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TRANSMISSIONINFRASTRUCTURE IMPROVEMENTS
Current Projects
Steve WheelerExecutive Vice PresidentArizona
Public Service Company
The Center for the New WestThe Sun Valley
Energy Roundtables 2006November 30 December
1, 2006
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About APS
A subsidiary of Pinnacle West Capital Corporation

• Largest electric utility in Arizona
• Second fastest growing utility in country
• Peak Control Area load over 7700 MW
• Over 1 million customers
• 1 billion Ten-Year In-state transmission
  expansion plan

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Transmission East vs. West
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Increasing Transmission Capability

• OPTIONS
• Upgrade existing system
• New conductor technologies
• New facilities
• Advanced technologies for control
• Integrated resource planning

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Use of New Conductor Technology

• Re-conductor West Phoenix-Lincoln Street 230kV
  line
• 3M Aluminum Conductor Composite Reinforced (ACCR)

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Palo Verde Hub TS5 Raceway Pinnacle Peak
500kV Project

• New 500 kV system connecting SW Phoenix to NE
  Phoenix
• Add 1500 MW import capability to Phoenix Area
• Provide additional export capability for
  generation at Palo Verde Hub
• Provide voltage support for NE Phoenix Area
• 0.6B for 110 miles of line and substation
  equipment

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Palo Verde Hub to Yuma 500kV

• Provide 2nd 500kV source from Palo Verde Hub to
  Yuma
• Provide transmission import capability to serve
  rapid load growth in theYuma Area
• Provide additional export capability for
  generation at the Palo Verde Hub
• In service date 2012
• Permitting work underway
• 300M cost estimate for 115 mile line and
  substation equipment

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Conceptual TransWest Express ProjectDC Option
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TransWest Express Project Summary

• Driven from LSE need
• Enables renewable wind and advanced clean coal
  technologies
• Open stakeholder process
• Transmission and permitting feasibility analysis
  essentially complete
• Coordinating with Frontier activities

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TransWest Express Project Timeline

• 2006 Phase 1 feasibility study
• 2007-2011 Phase 2 permitting
• 2012-2015 Phase 3 construction
• 2015 Phase 4 commercial operation

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Feasibility Study Conclusions

• Technically feasible
• Economics indicate DC or AC/DChybrid
  alternatives
• Multiple routes viable with minimal impact on
  sensitive environmental areas
• Existing plans for AZ-CA expansion provide
  increase transfer capability in excess of 3000MW

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TransWest ExpressCurrent Status

• Phase 2 Agreement in negotiation
• Participants
• APS
• SRP
• SCE
• TEP
• National Grid
• Wyoming Infrastructure Authority

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Phase 2 Work Plan

• Five year schedule 2007- 2011
• Estimated cost of approximately 115M
• Engineering and design
• Routing
• Permitting and approvals
• Outreach and coordination
• Options on right of way

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Coordination with Frontier Line Activities

• APS participant in Frontier Line feasibility
  study
• TransWest Express one of transmission options in
  Frontier study
• Frontier economic analysis will include TransWest
  Express
• Possible participation in TransWest Express by
  Southern California load serving entities

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Increasing Transmission CapabilityKey
Considerations

• Resource needs
• Renewable requirements
• Resource diversity
• Financial considerations
• Business model
• Siting feasibility
• EPACT provisions
• FERC initiatives

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Coordination of Generationand Transmission

• Cant invest in one without assuranceof the
  other
• Timing issues
• Permitting
• Construction
• FERC Standards of Conduct
• IRPs
• Regional transmission planning activities

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Conclusion

• Transmission expansion remains a daunting
  exercise in engineering, siting, technology,
  economics, and public policy
• Coordinated planning and cooperation at all
  levels is essential
• A stout heart is required