Special%20Open%20Meeting%20of%20the%20Arizona%20Corporation%20Commission%202005%20Summer%20Assessment

1
SpecialOpen Meeting of the Arizona Corporation
Commission2005 Summer Assessment

• March 18, 2005
• Arizona Public Service Company
• Steve Wheeler Executive Vice President
• Jan H. Bennett Vice President, Customer Service
• Cary B. Deise Director, Transmission Operations
  and Planning

2
Overview

• Westwing Update
• Load/Resources Adequacy
• Transmission Adequacy
• Planned Maintenance Activities
• Contingency Planning
• Coordination/Training
• Future Plans
• Conclusions

3

• Westwing Update
• Jan Bennett

4
Original Schedule

• One transformer scheduled to arrive each week
  starting March 30th
• T-1 bank scheduled to be back in service before
  summer peak
• Replacement of BPA unit scheduled to follow T-1
  installation
• Replacement of spare to follow BPA replacement

5
Issue Identified

• The schedule has been revised
• First two of seven transformers did not pass
  initial testing
• Corrections required before units could be
  shipped
• Manufacturer was on schedule prior to the initial
  test results
• Continuing to work with manufacturer on revised
  schedule

6
Revised Schedule

• Mid-June BPA replacement unit commissioned
• Mid-July The T-1 Bank commissioned
• By year-end The original two transformers
  in the T-4 Bank and the spare unit will be
  in service - Removed units will
  become spares - Sale pending on BPA unit

7
The Issue

• Gassing occurred during testing that indicates a
  hot spot
• Results are similar for both units
• Unit One has been un-tanked
• All connections inspected
• All internal components inspected
• Tanks shunts removed
• Problem has been identified and corrections are
  being made to all units
• Consultation with Jim Templeton on test
  procedures and corrective action

8
The Issue
9
Actions Taken

• APS and SRP sent technical teams to Canada to
  work with ABB
• Notified all owners
• Consulted with independent experts on the issue
• Made ABB aware of the critical need for this
  equipment

10
Next Steps

• Corrections will be made first to units one and
  five
• Unit one has been un-tanked
• Unit five is yet to be tanked
• Allows for quickest delivery of one unit to
  replace BPA unit

11
Summary

• With the replacement of the BPA transformer we
  will have adequate capacity to meet our load
  under expected conditions
• Full capacity and redundancy will be restored
  with the installation of the new T-1 bank
• The problem has been identified and corrections
  are being made
• We do not anticipate any voluntary or involuntary
  curtailment of customer load this summer
• ABB is working diligently to remedy the problem

12

• Summer Preparedness
• Cary Deise

13
Valley Maximum Load Serving Capability
Westwing Update
12,000
11,000
10,000
MW
9,000
8,000
7,000
6,000
14
APS Peak Load Forecast
Loads/Resources Adequacy
6954 MW
6402 MW
Adding 160 APS customers every day
2005 Forecast
2004 Actual
Phoenix is the second fastest-growing
metropolitan area in U.S.
15
Fuel
Loads/Resources Adequacy

• Nuclear
• Full requirements under contract.
• Coal
• Cholla
• Current inventory and contract commitments
  provide adequate coal for the projected 2005
  burn.
• 43 days of inventory on the ground.

16
Fuel, continued
Loads/Resources Adequacy

• Coal (cont.)
• Four Corners
• Mine mouth plant with full supply contract in
  effect.
• 30 days of inventory on the ground by May.
• Gas
• 85 of supply is under contract
• Firm transportation contracts with EPNG in
  effect.
• Fuel oil back-up at the Yucca, West Phoenix and
  Saguaro Plants.

17
APS Resources Existing Generation
Loads/Resources Adequacy
Fuel Type Capacity - MW
Nuclear 1107
Coal 1725
Gas 1054
Oil 70
Other 5
Total 3961
18
Resources Existing PWEC/Other
Loads/Resources Adequacy
APS Committed Capacity MW
Redhawk 1020
Saguaro 76
West Phoenix 640
Sundance 325
Total 2061
Plant
19
Resources
Loads/Resources Adequacy

• Generation 2005 (MW)
• Existing Generation 3961
  PWEC/Other 2061
• Subtotal 6022
• Long-term Contracts
• Pacificorp Exchange 480
• SRP 364
• Subtotal 844
• Market Contracts 900
• Total Resources 7766

20
APS System Load and Resources
Loads/Resources Adequacy
812 MW
21
Substation Transformers
Transmission Adequacy

• NEW Xfmr Banks
• 69/12kV 15
• 115/69kV 1
• 230/69kV 1
• 500/69kV 1
• UPGRADED
• 69/12kV 8
• 230/69kV 5
• 345/230kV 1
• Total 32

22
Transmission Lines
Transmission Adequacy

• Line Sections
• New
• 69kV 4
• Upgraded
• 69kV 9

23
Transmission Adequacy
APS EHV SystemTransmission Capacity less
wheeling obligations
Navajo
Four
315 MW
Corners
782 MW
Mead
559 MW
Moenkopi
1175 MW
236 MW
Cholla
Yavapai
615 MW
1683 MW
Transmission Capacity
Generation Capacity
500kV
345kV
Pinnacle
Westwing
Peak
Rudd
2380 MW
Palo Verde
Kyrene
1107 MW
Jojoba
Saguaro
140 MW
Gila
310 MW
River
N.Gila
24
Transmission Adequacy
APS EHV System
25
Yuma Maximum Load Serving Capability
Transmission Adequacy
435 MW
450
60 MW
60 MW
400
375 MW
375 MW Forecasted Peak
350
2004 Peak 347 MW
300
MW
Generation Transmission
250
200
150
100
2004
2005
26
Planned Maintenance
Generation

• APS Planned Maintenance Scheduled to be completed
  by May 31
• Palo Verde 2 3
• Cholla 2
• Navajo 1
• Four Corners 1 and 5
• W. Phoenix Combined Cycle 1 3 and CT 1 2
• Saguaro Steam 1 2 and CT 1 2
• Yucca CT 1-4
• Ocotillo Steam 1 2 and CT 1 2
• Douglas CT

27
Transmission
Planned Maintenance

• Key lines/substations on schedule
• Special emphasis on critical transformers
• Tree trimming in northern area due to damage from
  snow storms

28

• Contingency Planning
• Jan Bennett

29
Contingency Planning
Contingency Planning

• Updated Load Curtailment Plans will be filed with
  ACC by June 1, 2005
• Essential
• Critical
• Major-use customers/other with notice
• Other
• EMS Load Shedding program annual update by May
  16, 2005
• Coordination with emergency organizations

30
Emergency Equipment
Contingency Planning

• Mobile 69/12kV Transformers
• Emergency Towers
• Two Lindsey towers

Location Xfmrs
Phoenix 4
Flagstaff 2
Yuma 1
Total 7
31

• Training Drills
• Cary Deise

32
Training Drills
Coordination / Training

• Regional Black Start Drill March
• Usage of Load Curtailment tools April
• Summer Studies May
• Transmission Path Operations May
• Emergency Operations March-June
• Power Simulator
• NERC policies addressing March-June
• emergency operations
• DOE simulator training March-Oct.

33
EHV Transmission
Future Plans
34
West Valley 230kV
Future Plans
35
East Valley 230kV
Future Plans
TO
RACEWAY
2
0
0
9
(
T
S
B
R
D
P
)
NE3
2010
J/O
(SRP)
(
S
R
P
)
345KV
Substation locations and line routings depict an
electrical connection only and
do
not
reflect any assumed physical locations or
routing.
36

• Conclusions
• Steve Wheeler

37
Conclusions

• Adequate resources to meet load and reserve
  requirements
• Sufficient transmission to import remote
  generation and purchases
• Plans in-place to respond to extreme conditions
• Coordination/training has been established with
  various State and local agencies
• Anticipate meeting customers needs