Pre-Qualification Submittal for Designated Transmission Entity Status Submitted to PJM September 5, 2013

Transcription

1 Pre-Qualification Submittal for Designated Transmission Entity Status Submitted to PJM September 5, 2013

2 1. Name and address of the entity including a point of contact Duke Energy Energy Center 526 South Church Street Charlotte, NC Sam Waters General Manager Transmission Planning (office) (cell) 2. Technical and engineering qualifications of the entity or its affiliate, partner, or parent company Duke Energy Corporation is a Fortune 250 company with over $100 billion in assets and is the largest electric power holding company in the United States, supplying and delivering energy to approximately 7.2 million electric retail customers in a service territory covering 104,000 square miles located in six states in the Southeast and Midwest, representing a population of approximately 22 million people. ). Duke Energy owns and operates an extensive network of more than 36,000 miles of high-voltage power lines and substations and 57,700 megawatts of generating capacity from a diverse mix of coal, nuclear, natural gas, oil, and renewable resources Duke Energy has over 106 years of experience in siting, designing, constructing, operating and maintaining transmission systems across six states (North Carolina, South Carolina, Indiana, Kentucky, Ohio, and Florida). 3. Demonstrated experience of the entity or its affiliate, partner, or parent company to develop, construct, maintain, and operate transmission facilities. Including a list or other evidence of transmission facilities previously developed regarding construction, maintenance, or operation of transmission facilities both inside and outside of the PJM Region. As mentioned above in item 2 Duke Energy has over 106 years of experience in siting, designing, constructing, operating and maintaining transmission systems across six states (North Carolina, South Carolina, Indiana, Kentucky, Ohio, and Florida). Duke Energy owns and operates an extensive network of more than 36,000 miles of high-voltage power lines and substations. This network ensures a continuous, reliable flow of electricity from generating stations to our customers and neighboring utilities. Duke Energy s transmission system consists of a diverse set of voltage grades ranging from 525 kv to under 44 kv. Over the period 2003 through 2012, Duke Energy s regulated utility operations have completed more than 180 transmission projects, representing a total investment of more than $1.3 billion across six states. The new projects include new transmission lines, rebuilding/upgrading existing lines, overhead and underground transmission, and associated addition and modification of substations.

3 Over the next ten years, the Duke regulated utility operations have approximately 500 transmission projects planned totaling more than $3 billion. To build new lines or rebuild existing lines, the company uses a comprehensive siting process to determine potential route corridors for electric transmission projects, and ultimately, to select the transmission line route. Taking into account pole replacements, line upgrades, and new infrastructure, the company completes more than 50 transmission-related projects each year. Currently, Duke Energy has transmission projects under way in five of its six regulated service territories. Below is a list of example of projects for Duke Energy, listed by various stages of development, construction or completion. The projects shaded in red are PJM region projects. Stage State Project name Description Completed NC Kerwin Circle 100kV Tap Line A new 100-kilovolt (100kV) transmission line Completed NC Swain Tie Station and Transmission Lines Completed NC Pleasant Garden Asheboro A new tie station and new transmission lines in western North Carolina to power the growth in commercial and residential development, including the current expansion of Harrah s Cherokee Casino and Hotel. Construction of a new 230 kv tie between Dyke Carolinas and Duke Progress Completed NC Jacksonville SVC Addition of an SVC for voltage support Completed NC Lee-Clinton 28 miles of new 230 kv line Completed NC Capr Fear River Crossing Completed NC Caterpillar 100kV Tap Line Completed NC Apex - RTP Transmission Project Completed NC Asheville - Enka Transmission Line Project Installation of 230 kv cable under the Cape Fear River, connecting Brunswick nuclear plant to Castle Hayne substation A new 100-kilovolt (100kV) transmission line to support the new Caterpillar manufacturing facility. A series of new 230-kilovolt (230kV) transmission lines and system upgrades. Upgrading the existing 115-kilovolt (115kV) transmission line to a 230kV line, and construction of a new 115kV line in Buncombe County, N.C.

4 Completed NC Goldsboro - Lee Transmission Project Completed NC Greenville - Kinston Transmission Project Completed OH Whittier Substation 138kV Tap Line Expanding and upgrading an existing 115-kilovolt (115kV) transmission line serving the Goldsboro, Wayne County and Seymour Johnson Air Force Base areas. Building a 25-mile, 230-kilovolt (230kV) transmission line A new 138,000-volt (138kV) transmission line to connect a new substation to the existing 138kV transmission line network. Completed IN Hamilton County 69kV Substation and Transmission Line An upgraded 69-kilovolt (69kV) transmission line and new substation for the Carmel and Fishers communities in Indiana Completed IN Floyd County - Edwardsville Substation Completed FL 51st Street to Central Plaza Completed FL Apalachicola Area Improvements Completed FL Brooksville West to Tangerine A new electric substation in Georgetown Township, Floyd County, Indiana to be known as the Edwardsville substation. It will connect to an overhead Duke Energy 138-kilovolt (138kV) electric line which crosses the land and has been in place since A new 115-kilovolt (115kV) transmission line in St. Petersburg Upgrades to an existing transmission line in Gulf and Franklin counties in the Florida Panhandle. A new 115-kilovolt (115kV) transmission link in Brooksville. The 115kV double circuit line will be built on single concrete or steel poles, within existing easements Completed FL Kathleen to Zephyrhills North Completed FL Largo to East Clearwater Completed FL Perry North Tap to Boyd Tap Completed FL Morgan Road Tower and Facility A new 230-kilovolt (230kV) transmission line A pole replacement project in Clearwate. Pole replacements and transmission line upgrades. The 6.02 milelong project is a rebuild of a 69-kilovolt (69kV) line and will replace approximately 40 wooden transmission structures with new concrete poles inside existing easements. An upgrade of the telecommunication system in this area.

5 OH Todhunter - Trenton Rebuild 5 miles of 138-kilovolt transmission line OH Fairfax to Senco Rebuild 4.6 miles of 69-kilovolt transmission line OH Meldahl Dam generator interconnection substation Duke provided 345-kilovolt transmission interconnection for a new Hydro generation facility OH Miami Fort Substation Replace 345-kilovolt SF6 gas insulated bus section Completed OH Rochelle Substation expansion Expand Substation to provide 138-kilovolt service to University of Cincinnati OH Ebenezer to Neuman Reconfigure 69-kilovolt circuit from radial to loop OH West End substation Install a 138-kilovolt bus tie circuit breaker OH Willey capacitor Install 138-kilovolt 22 Mvar Capacitor OH Fairfield Substation Convert Fairfield to a 138- kilovolt ring bus OH Terminal Substation Replace over-dutied 138-kilovolt circuit breakers OH Redbank Substation Convert Redbank to a 345-kilovolt ring bus OH Todhunter Substation Reconfigure 345-kilovolt ring bus OH Red Bank Substation Install 0.5% reactor in the Red Bank-Oakley 138-kilovolt circuit OH Summerside Substation Convert Summerside to a 138- kilovolt ring bus OH Tobasco Substation Convert Tobasco to a 138- kilovolt ring bus

6 OH Oakley Subtation Replace over-dutied 138-kilovolt circuit breakers OH Miami Fort Substation Replace over-dutied 138-kilovolt circuit breakers OH Charles Substation Replace over-dutied 138-kilovolt circuit breakers OH Todhunter Substation Replace over-dutied 138-kilovolt circuit breakers NC Wommack-Kinston Dupont Reconductor 20 miles of 230 kv line NC Lilesville-Rockingham Construction of a new 230 kv line 4. Previous record of the entity or its affiliate, partner, or parent company to adhere to standardized construction, maintenance and operating practices Duke Energy has extensive experience adhering to standardized construction, maintenance and operating practices. Duke Energy has maintained and continues to maintain compliance with OSHA rules and regulations. Duke Energy has designed and maintained its facilities to comply with the National Electric Safety Code. Duke Energy includes applicable IEEE and ANSI standards in its design, maintenance, and operation practices. Duke Energy s regulated utility operations transmission construction, maintenance and operating practices are subject to NERC and regional standards, as well as state and local regulation. The Duke operating companies currently are subject to oversight by ReliabilityFirst, SERC Reliability Corporation and the Florida Reliability Coordinating Council, as appropriate to their regions. The Duke companies have been periodically audited for standards compliance by their respective Regional Reliability Organizations. In addition, Duke Energy has a corporate compliance organization that provides internal direction and oversight, establishing a corporate culture that encourages self reporting of potential discrepancies and adherence to mitigation plans, as required. Duke Energy has demonstrated a consistently high level of compliance with NERC standards including the establishment of standardized planning and maintenance practices.

7 5. Capability of the entity or its affiliate, partner, or parent company to adhere to standardized construction, maintenance and operating practices Duke Energy has extensive experience adhering to standardized construction, maintenance and operating practices. Duke Energy s staff is familiar with standardized practices and incorporates these into its design, construction, maintenance, and operations activities. Duke Energy has a Safety Department that conducts frequent safety meetings, monitors Duke Energy adherence to safety rules and regulations, and ensures Duke Energy is implementing best practices in the area of safety. Duke Energy also has a Compliance Department that oversees Duke Energy s NERC compliance program to ensure that Duke Energy is fully compliant with all applicable NERC Standards and requirements. Duke Energy strongly encourages and in many cases requires staff members to gain certifications that require familiarity with many industry standards. For instance, Duke Energy encourages and/or requires engineering staff to become licensed Professional Engineers. As discussed above Duke Energy staff members are familiar with applicable standardized practices and maintain adherence to these in design, construction, maintenance, and operations activities. 6. Financial statements of the entity or its affiliate, partner, or parent company. Please provide the most recent fiscal quarter, as well as the most recent three fiscal years, or the period of existence of the entity, if shorter, or such other evidence demonstrating an entity s current and expected financial capability acceptable to the Office of the Interconnection Annual Reports: Current and historic Duke Energy annual reports and other financial information can be obtained from the following website: FERC Form 1 Filings: Current and historic Duke Energy FERC Form 1 filings can be obtained from the following website: FERC: Documents & Filing - forms - Form 1 - Data (Current and Historical) 7. Commitment by the entity to execute the Consolidated Transmission Owners Agreement, if the entity becomes a Designated Entity. Duke Energy is an existing signatory to the Consolidated Transmission Owners Agreement.

8 8. Evidence demonstrating the ability of the entity to address and timely remedy failure of facilities. Duke Energy is prepared to address all emergencies and equipment failures on the high voltage transmission system utilizing a variety of solutions depending on the circumstances associated with any particular situation. Duke energy employees, contractors and suppliers are responsive on a day a year basis and are ready to address all system emergencies that occur. Duke energy has a robust storm response plan, and all employees are expected to fill second roles during system emergencies with the goal of restoring the transmission system to normal as soon as possible. Planning for potential large scale storms and emergencies begins as soon as the weather forecast indicates the potential for an incident. Duke Energy s internal work force will perform initial response, damage assessment, isolation of impacted facilities and development of corrective action plans in response to an emergency situation. Duke Energy will execute repairs in the field with a combination of its internal work force supported by external contract resources as necessary to respond to each emergency situation that arises. Duke Energy also employs on a regular and ongoing basis a significant number of qualified construction contract companies across Duke Energy that, while they are conducting scheduled construction and maintenance work, are fully prepared to respond immediately to small, medium and large scale emergencies on the system. Among those companies providing support are traditional line construction contractors and specialty services such as helicopter inspection and damage survey, energized bare hand/hot stick services, specialty heavy construction equipment vendors, bridge/matting suppliers, rigging/hauling contractors and cable and termination services. Duke Energy has immediate access to all of these services when they become necessary. Due to Duke Energy s large geographic area, the affiliate companies can share resources and material between the companies when necessary. This allows one company that is not impacted greatly by a storm or disaster to send personnel to the affiliate company that is impacted the most, thus speeding restoration. Duke Energy also maintains a sufficient stock of standard material across the territory and vendor agreements are in place to be able to support emergency restoration requirements. Duke Energy utilizes existing stock and specially designed spare parts and equipment to make permanent repairs and, as necessary, to make temporary repairs if circumstances require in order to accelerate restoration. Duke Energy is engaged with industry associations (Edison Electric Institute, Southeastern Electric Exchange, Great Lakes Mutual Assistance Group and Midwest Mutual Assistance group) that facilitate and allow for resource and material sharing during extraordinary situations such as regional or national emergencies. For example, in the case of Midwest Mutual Assistance group, Duke Energy works with other utility members to ensure that qualified labor, equipment and material can be rapidly deployed on a scalable response level in the event of an emergency. Duke Energy s participation in Midwest Mutual Assistance group also provides a forum to discuss relevant industry related topics to continue to improve performance. For several decades, Duke Energy have successfully responded to transmission system emergencies on numerous occasions ranging from miscellaneous hardware replacements to full structure replacements to multiple structure replacements. System damage can be caused by vehicles, storms, vandalism or material failure.

9 9. Description of the experience of the entity in acquiring rights of way Duke Energy has a substantial full-time internal staff dedicated to researching, procuring, and further managing company real property assets, which include fee owned properties, transmission and distribution rights-of-way and other miscellaneous excess properties. This group has personnel throughout the Duke Energy service areas with numerous right-of-way acquisition efforts underway at all times. Presently, Duke Energy has hundreds of millions of dollars in planned transmission underway for 2013 for which the necessary right-of-way have been or are being acquired. This follows an additional several hundred million dollars in transmission completed in 2012 for which substantial rights-of-way acquisition also was required. This group works very closely with Duke Energy s Planning, Engineering, Environmental Services and Governmental Affairs departments to either verify existing rights-of-way or acquire new rights-of-way and real property interests necessary to advance pending projects, as well as sustain, modify and improve existing facilities. In addition, Duke Energy has the ability to exercise eminent domain in the states served by Duke Energy. The Duke Energy right-of-way group has considerable experience working within the eminent domain construct to timely effect construction of transmission projects.