AAPG 2011 Annual Convention & Exhibition April 10, 2011



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Generator Transmission Grid Interconnection Guidelines AAPG 2011 Annual Convention & Exhibition April 10, 2011 Hala Ballouz, B.Sc., M.Sc. TAMU, P.E. President, Electric Power Engineers, Inc. Partner & Director, Int l IGM VP & Board member TREIA Wind Coalition SPP Representative

In business since 1968 Offers consulting services to electric utilities and private generators, in particular renewable energy generators Specialize in: Transmission grid deliverability analysis Management of interconnection applications Congestion and curtailment analysis Project design/engineering/procurement Over 50 renewable generation clients Over 100 generation development assessments per year

Outline of Presentation 1) Grid Interconnection Basics 2) Regulatory 3) Application Process 4) Transmission Congestion 5) Transmission Injection & Export Study 6) Transmission Deliverability Studies

1-Grid Interconnection Basics Interconnection to the Transmission/ Distribution Grid is the first step in the process necessary for a generator to deliver/sell energy to load.

..1-Grid Interconnection Basics First three questions to determine guidelines for Interconnection Process: What is the Size of the Generator? Will the Generator Export of Power to the Market? Where is the Generator?

.. 1-Grid Interconnection Basics What is the Size of the Generator? Few kw behind the meter: Net-metering: SGIP: Generally <10-20 MW Small Generator Interconnection Procedure LGIP : Large Generation Interconnection Procedure

.. 1-Grid Interconnection Basics Will the Generator Export of Power to the Market? This determines whether transmission deliverability studies are needed, and in some cases transmission capacity reservation.

.. 1-Grid Interconnection Basics Where is the Generator? Determine the Interconnection Point and governing Utility/ISO/RTO

2-Regulatory National Electric Reliability Corporation (NERC) Federal Energy Regulatory Commission (FERC) Regional Transmission Operators (RTO) Balancing Authorities (BA) Independent System Operators (ISO) ERCOT is regulated by the Public Utility Commission of Texas (PUCT)

..2..2-Regulatory, National Overview

..2..2-Regulatory RTOs And major Transmission Operators

..2..2- Regulatory Summarizing Central US State Regional Transmission Organizations Grid Planning Texas ERCOT & SPP & SERC ERCOT & SPP Louisiana SPP & SERC SPP/ Entergy Oklahoma SPP SPP Kansas SPP SPP Nebraska SPP SPP South Dakota MRO & WECC MISO North Dakota MRO & WECC MISO Wyoming WECC PacifiCorp & Others Colorado WECC PSCO & Others New Mexico WECC & SPP SPP, PNM & Others PJM

3-Application Process Basics The Process constitutes a series of Studies performed by the ISO /Transmission Planner/Owner, and which results in an Interconnection Agreement (IA) An IA is generally a reservation of rights for transmission access under FERC rules where a queue list is maintained. NOT the case in ERCOT

..3-Application Process Basics o The application process, information submittals, and timelines vary between the different ISOs and with the individual Utilities. o For SGIP the process is a few months. o For LGIP the process is longer than 1 year, and several years in some processes.

..3-Application Process Basics Large Generation Interconnection Process (LGIP) Larger than 10-20 MW Cluster Study Process (e.g. CAISO, SPP) Cluster Study Process (e.g. CAISO, SPP) Single Study (Linear) Process (e.g. ERCOT)

.. 3-Application Process Single Study Process THERE IS ROOM FOR NEGOTIATION AND ALTERING STUDY RESULTS BY CONTINUOUS & CORRECT TECHNICAL DATA EXCHANGE Stage 1-Feasibility Establish Queue Position (if any) ERCOT: Security Screening SPP: Preliminary System Impact Submit Application +Fees Stage 2-Impact Meeting/ Negotiations Typical Time for this process varies For ERCOT: 240 to 850 days Additional Forms & Fees ERCOT: Full Interconnection SPP: Definitive System Impact Review Study Results/Negotiate Additional Forms & Fees Facilities Study Start Negotiations For Interconnection Agreement (IA) ERCOT, & several Other independent Transmission Providers Interconnection Agreement (IA)

.. 3-Application Process Cluster Study Process Generally a lengthy process Cluster a) Application Window opening 2-3 times a year b) Projects clustered into areas c) Studies rerun every time a generator withdraws until a final study is reached d) Upgrades are determined per area and cost allocated to participating generators. SPP SPP-- MISO

.. 3-Application Process Grid Application Data A number of project details need to be determined for the Interconnection Application Total project size, including number and specific manufacturer and model of turbines Proposed location of interconnection point Preliminary 1-line diagram of project interconnection facilities and power collection system. Layout map for project and interconnection point Demonstration of site land control

.. 3-Application Process Grid Application Costs LGIP Generally ~ $40,000 - $200,000 in ERCOT. >$200,000 in Cluster Systems Small Projects (<10/20 MW) Generally Less than $50,000 (Costs do not include transmission upgrades)

..3-Application Process Grid Application Timeline LGIP Generally ~ 2 years in ERCOT. >3years in Cluster Systems Small Projects (<10/20 MW) Generally a few months (Costs do not include transmission upgrades)

..3-Application Process ERCOT Total Plant Capacity, MW Screening Study Fee 10 to 74 $1,000 75 to 149 $2,000 150 to 249 $3,000 250 to 499 $4,000 500 or greater $5,000 Full System Impact Study Phase: Transmission Owner Dependent: Deposit of $50k to $100k may be phased

..3..3-Application Process ERCOT TASK Acknowledgement of Generation Interconnection Request Application Notification of Additional Information Needed to Complete Application Perform Security Screening Study (after application deemed complete) Decision to Pursue Full Interconnection Study (following issuance of Screening Study by ERCOT) Responsible Entity Time Required to Complete (Days) ERCOT 1 to 10 ERCOT 1 to 15 ERCOT 10 to 90 GE up to 180 ERCOT, TSP(s), GE up to 60 Develop Scope Agreement for Full Interconnection Study (following GE s notification to ERCOT of desire for Full Interconnection Study and remittance of appropriate fees) Perform Full Interconnection Study (following agreement on scope) Steady-State and Transfer Analysis System Protection Analysis (following Steady State Analysis) Dynamic and Transient Stability Analysis (following System 40 to 300 10 to 90 10 to 30 Protection Study) Facility Study Study Report Review and Acceptance (following issuance of Full Interconnection Study) Negotiate and Execute Interconnection Agreement (following acceptance of Full Interconnection Study) 10 to 90 10 to 90 TSP(s) ERCOT, TSP(s), GE 10 to 15 TSP and--ge 180

..3..3-Application Process MISO Initial Interconnection Submission: a non-refundable $5,000 fee a study deposit dependant upon the project capacity: (i)less than 6 MW, $10,000 (ii)less than or equal to 20 MW but greater than or equal to 6 MW $20,000 (iii)less than or equal to 50 MW but greater than 20 MW, $30,000 (iv)less than or equal to 500 MW but greater than 50 MW, $60,000 (v)less than 1000 MW but greater than 500 MW, $90,000 (vi)greater than or equal to 1000 MW, $120,000 a completed application Numerous additional requirements Interconnection Feasibility Study determines : System Planning and Analysis Phase or Definitive Planning Phase. Definitive Planning Phase everything must be received 10 days prior to the next scheduled Definitive Planning Phase start date Deposit - less than 6 MW, $40,000; less than or equal to 20 MW but greater than or equal to 6 MW, $100,000;??..and greater than or equal to 1000 MW, $520,000. Site Control or $100,000 deposit Numerous Additional Requirements Within 15 Business Days after execution of the GIA - reasonable evidence of Site Control or $250,000

..3..3-Application Process SPP Preliminary Interconnection System Impact Study Queue Deposit of: $40,000 for generation less than 100 MW $60,000 for generation greater than or equal to 100 MW and less than 800 MW $90,000 for generation greater than or equal to 800 MW Site Control, Application and Technical Data To enter SPP s Definitive Interconnection System Impact Study Queue (DISIS), a deposit is required in the amount shown below: $15,000 for generation less than or equal to 2 MW $50,000 for generation greater than 2 MW and less or equal to 20 MW $75,000 for generation greater than 20 MW and less than 75 MW $150,000 for generation greater than or equal to 75 MW Possible DISIS fee, if you do not have some additional required information (such as PPA for example) then you have to pay - Security of $2000/MW Interconnection Agreement: either reasonable evidence that continued site control or (B) posting of $ 250,000, non-refundable additional security, which shall be applied toward future construction costs.

4-Transmission Congestion Interconnection Applications Piling

..4-Transmission Congestion: why do we have a problem? Not enough Transmission Best Resources are located away from Best Resources are located away from load centers

..4..4-Transmission Congestion SOLUTIONS Build more transmission Distributed renewable resources More Firm resources -> Geothermal?! Energy Storage Establish Larger Interconnected Energy Markets

5-Transmission Injection & Export Analysis Critical Step in the Development of a Project Advisable to be performed before an interconnection application is submitted Aids developer in choosing feasible size and interconnection location of project Uncovers limitations the project will encounter Reference: PG&E

..5..5-Transmission Injection Analysis: Why do I need the Analysis? Fatal Flaw analysis Identifies best interconnection point for project Helps maximize size of project by: Highlighting economical upgrades and use of SPS that may increase project size Equips the developer to rightfully question application studies for best results North American Electric Reliability Council

..5..5-Transmission Injection Analysis Case Study example Reliability Council (and Utility) Feasibility Study Results limited project export potential to approximately: Correction of a modeling error in the rating of the transmission line by the owner s engineer resulted in an increase of export potential to approximately: Further Investigation by the owner s engineer indicated that upgrading the 138 kv transmission line to larger capacity consisted of simple and relatively inexpensive terminal equipment upgrade. This increased the export potential to approximately: Implementing a Special Protection Scheme (SPS) increased export potential to approximately: 85 MW 112 MW 180 MW 230 MW North American Electric Reliability Council

6-Power Deliverability Studies Transmission Service Requests Congestion & Curtailment Analysis Power Deliverability Simulations Locational Marginal Pricing ($) Future Presentation: Transmission Interconnection 602! North American Electric Reliability Council

QUESTIONS Hala Ballouz, President Electric Power Engineers, Inc. contact@epeconsulting.com