ColumbiaGrid

Update for the

Washington Utilities and

Transportation Commission

S E P T E M B E R 4 , 2 0 1 9

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Why Are We Here Today?

ColumbiaGrid’s State Regulatory Agencies

Collaborative Involvement Policy

GOAL: To foster the collaborative involvement of

States, including agencies responsible for facility

siting, utility regulation, and general electricity

policy in the ColumbiaGrid planning and policy

process.

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Corporate Overview

Corporate Financial Performance

Reliability Transmission Expansion

Planning

Order 1000 Activities

Interregional Activities

Looking Ahead

Agenda

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ColumbiaGrid is a non-profit membership corporation (501

(c)(6)) with an independent Board of Directors, Officers, and

staff; the corporation is not under jurisdiction of FERC,

NERC, WECC, or State PUCs.

Member-Driven: Members control Bylaws; Members select

Directors; Members negotiate and approve Functional

Agreements; Members and PEFA Parties determine

maximum funding limits

Corporation: Directors, Officers, and Staff – administer the

Bylaws; set and perform to budgets; manage the

corporation’s operations; administer contracts; deliver

benefits / services; enhance benefits by improving existing

services; innovate and develop new services

Governance

Avista Corporation

Bonneville Power Administration

Chelan County PUD

Douglas County PUD*

Grant County PUD

Puget Sound Energy

Seattle City Light

Snohomish County PUD

Tacoma Power

[ColumbiaGrid is also the Area Coordinator for

NERC/WECC Region 40, which includes

PacifiCorp West and Portland General Electric]

* Non-Member PEFA Planning Participants

Members and Planning Participants

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Members and Planning Participants

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Key Dates

March 31, 2006 – ColumbiaGrid incorporated

January 17, 2007 - Planning and Expansion Functional Agreement (“PEFA”)

- Covers FERC ORDER 890 requirements

June 1, 2015 – Received FERC approval of Order 1000 Interregional planning

May 12, 2016 – Received FERC approval of Order 1000 regional planning

December 2018 – Planning Parties all gave notices of intent to withdraw from PEFA

December 31, 2020 – PEFA withdrawal period ends and PEFA expires

December 31, 2020 – Expiration of ColumbiaGrid’s Funding Agreement

December 31, 2020 – Potential Dissolution of ColumbiaGrid Corporation

Members

Directors

President

VP Planning

Principal Engineer

VPDevelopment

OASIS Admin.

Prod.Cost Engineer

Analyst

Corp Sec/Treas.

Accountant

Admin 1

Admin 2

Facilitator

Members

Directors

President

Sr. Planning Sr. Planning Sr. Planning Sr. Planning Sr. Planning Sr. Planning Sr. Prod. CostEngineer Engineer Engineer Engineer Engineer Engineer Engineer

VP/ Sec-Treas.

Sr. Accountant

2012 2019

ColumbiaGrid - Organization Chart

Efficiency / Focus

14 Employees + 1 Facilitator 7 Employees

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8

Expenses

Forecasted as of PE 7/31/19

Core

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

2012 2018 2019

Tota

l An

nu

al F

un

de

r C

ost

s

OASIS

PEFA

Corp.

$4.1 M

$2.5 M$2.36 M

$1.6 M Decrease

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Expenses

Expenses have steadily declined, since peaking in 2012, due to a

streamlined and focused mission and vision, organizational efficiency, and

greater regulatory stability. Current year expenses are forecasted at

$2.36M, which would be the lowest in the company’s 13-year history.

Expenses

Core: 2012 2018 2019

Corp. 1,408,173 699,051 633,864

PEFA 2,389,601 1,792,590 1,722,622

Non-Core:

OASIS 294,432 - -

VTL - - -

SOA - - -

Total 4,092,206$ 2,491,641$ 2,356,486$

Forecasted as of

PE 7-31-19

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Planning Mission: Ensure Regional Grid Reliability via Independent, Centralized,

Collaborative Grid Expansion Planning:

Biennial Planning Cycle:

Single-System View; Reliability Focus; Orders 890 and 1000 compliance

Annual Independent System Assessments:

Statement of Needs - Identify Problem Areas or ‘Needs’

Sensitivity Analyses – Hone ‘Needs;’ View/Analyze Need from Multiple Perspectives

Study Teams – Develop Plans to Mitigate ‘Needs’ and any Adverse Impacts on Affected

Systems; Compare Possible Mitigations

ORDER 1000 Agreement – regulatory overlay to meet requirements of ORDER 1000

Special Studies – analyze ‘what ifs,’ policy issues, related regulations, etc.

Grid Expansion Planning

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The 2019 BTEP was issued in

February 2019, after receiving

Board approval

$870M, 39 projects, new

transmission investment in

ColumbiaGrid planning region in the

10-year horizon (significant

reduction from 2017 BTEP due to

termination of I-5 Corridor Project)

Summary of key findings; 10-year

mitigation plan; and updates of

planning activities in 2017-2018

The next BTEP will be issued prior

to December 2020 via an

accelerated biennial planning

cycle

Biennial Transmission Expansion Plan (BTEP)

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2019 BTEP Studies and Activities

Special Study

Special StudySpecial Study

PEFA

PEFA

PEFA

PEFA

PEFA

PEFA

Separate Functional Agreement

Order 1000 Functional Agreement

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Billed Costs DOWN / Services UPCosts Billed to Funders

Past Functions or Services =

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Biennial Planning Process

Draft 2017 System Assessment

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https://www.columbiagrid.org/basecases-results-overview.cfm

Order 1000 Statement of Needs – None

Planning and Expansion Functional Agreement (“PEFA”), Order 890, Statement of Needs:

Centralia Area / Olympic Peninsula Area (recurring): possible voltage stability issues.

Othello Area (recurring): possible overloads on Avista owned facilities between Othello and Taunton.

Puget Sound Area (recurring): possible overloads. Puget Sound Area Study Team.

Spokane Area (recurring): possible overloads. Bonneville and Avista have been working together to address. No study team is planned.

Quincy (Mid-Columbia) Area (recurring): possible overloads. Quincy Area Study Team.

North Oregon Coast Area (new): possible overloads in PacifiCorp’s and Bonneville’s service territories. Increases in the 2019 System Assessment’s load projections have caused these issues to return. Only one ColumbiaGrid Planning Party involved, no study team is proposed.

DRAFT - 2019 System Assessment

Draft 2017 System Assessment

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DRAFT - 2019 System Assessment

Forecasted (Studied) Regional Load Comparisons

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DRAFT 2019 System Assessment

Quincy Study Team (New in 2018)

Addresses impacts from higher load forecast in the Middle and Lower Columbia Area

Participants: Grant PUD, Chelan PUD, Douglas PUD, BPA, PSE

* Source of base map: S&P Global Market Intelligence Inc.

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No Potential Needs driven by reliability issues, economic considerations, or Public

Policy requirements in ColumbiaGrid’s Order 1000 Region (Avista and PSE).

No suggestions of Order 1000 Potential Needs submitted by stakeholders or interested

persons into the ColumbiaGrid regional planning process during the 2019 submission

window.

Six proposed interregional transmission projects (ITPs) were submitted for joint

evaluation to various combinations of the Western Planning Regions (i.e. CAISO,

ColumbiaGrid, NTTG, or West Connect) during the 2018 submission window.

ColumbiaGrid is not a Relevant Planning Region for any of the six proposed ITPs and

did not receive any proposed ITP submittals directly into its regional planning process.

No Order 1000 Projects were subject to re-evaluation from the 2019 Biennial

Transmission Expansion Plan (2019 BTEP) within the scope of the annual System

Assessment since there were no Order 1000 Projects included in the 2019 BTEP.

Draft Needs - Order 1000 Functional Agreement

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ColumbiaGrid participates in various types of Western Interconnection coordination:

1) Order 1000 and Order 890 interregional coordination:

CAISO, NTTG, WestConnect

Share information, findings, Interregional Transmission Projects

2) WECC activities:

Base case development

Anchor Dataset

ColumbiaGrid is the Area 40 Coordinator:

Includes all of the Planning Parties plus PacifiCorp West and Portland General Electric

• 3) NorthernGrid transition – potential activities through 2020

Western Interconnection Planning Coordination

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Looking Ahead

October 1, 2019 – Expected Notices of Withdrawal from Order 1000 Functional Agreement by Avista and PSE (90-day notice required)

Fall 2019 – Expected Execution of a Letter Agreement among ColumbiaGrid’s Planning Parties to Waive their Rights to Rescind PEFA Withdrawal Notices to be Coincident with the Effective Date of NorthernGrid

January 1, 2020 – Expected Launch (Effective Date) of NorthernGrid

January 1, 2020 – NorthernGrid assume Order 1000 Planning activities and responsibilities for Avista and PSE (and all FERC-jurisdictional NorthernGrid Planning Parties)

January through December 2020 – ColumbiaGrid Potential Winddown Activities; Coordination and Transfer of Data, etc. with/to NorthernGrid

Summer 2020 – Completion of the 2020 System Assessment

November 2020 – Completion of 2020 BTEP (PEFA activities only, No Order 1000 functions)

PAT R I C K D AM I A N O

P R E S I D E N T & C E O , C O L U M B I AG R I D

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