ITC Midwest Partners in Business

ITC Midwest Partners in Business

May 7, 2009Iowa State University

Scheman Building

Welcome!Welcome!

Mike DabneyManager – Stakeholder Relations

ITC Midwest

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Facility and Meeting AccommodationsFacility and Meeting Accommodations

Registration for meeting: Sign in….Win a PRIZE

Rest Room Locations:

Cell Phone – on stun or vibrate

Lunch – Menu

Partners in Business: Web Site Located at www.itctransco.com

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ITC Midwest ManagementITC Midwest Management

Manager OverviewDoug Collins-Executive Director

Jeff Eddy, Manager – Planning

Ken Cackoski, Manager – Design Engineering

Dwayne Boelter, Manager – Project Engineering

Terry Gucciardo, Manager – Asset Care

Lisa Stump/Dave Grover, Manager – Regulatory Strategy

Dick Coeur, General Manager – Community and Customer Relations

Tom Petersen, Director – Communications

Mike Dabney, Manager-Stakeholder Relations

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Project timing and overviewsProject timing and overviews

While the following slides identify general timetables for line and substation construction projects, several factors could impact the company’s ability to complete projects according to those timetables.

Those factors include, but are not limited to, regulatory approvals, access to construction resources, availability of materials, and even weather.

The dates and schedules identified in these slides represent our best estimates for projects to be initiated and completed, but please understand that many factors could alter those schedules.

Green Power ExpressGreen Power Express

Doug CollinsExecutive Director

ITC Midwest

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Green Power ExpressGreen Power Express

Population Centers

Green Power Express

Potential Future Collector System

• 3,000 miles 765 kV

• 10-12 GW transfer capacity to support approximately 20 GW of new wind generation

• Crosses 7 states, 20 utility service territories, 2 RTOs and non RTO areas

• Expected cost of $10-12 billion

Why GPE and Why Now?Why GPE and Why Now?

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President Obama’s VisionPresident Obama’s Vision

“One of… the most important infrastructure projects that we need is a whole new electricity grid. … if we’re going to be serious about renewable energy, I want to be able to get wind power from North Dakota to population centers, like Chicago.”

Source: Transcript from appearance on Rachael Maddow Show of October 28, 2008: http://www.msnbc.msn.com/id/27464980/.

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Timing of Filing - Why GPE Now?Timing of Filing - Why GPE Now?

Over a year of internal study prior to filing— Submitted to MTEP; to be studied in RGOS in compliance with

Order 890— Discussions with developers and stakeholders ongoingInitiated by federal policy discussions— Private capital is available for major transmission investmentFinancial disclosure and competitive considerationsRegional planning initiatives (UMTDI, RGOS, JCSP, CARP/RECB)— ITC supports these efforts— Timing concerns— Studies do not build transmissionState of current project evaluation and cost allocation criteria— Not conducive to regional project to move renewable sources

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Facilitates the movement of large amounts of high efficiency wind throughout the footprintReduces carbon emissions by approximately 37 million metric tons annually, equivalent to seven to ten 600 MW coal plants or nine to twelve million automobilesLargely resolves Midwest ISO generation interconnection queue issues for regionEfficient use of landAddresses concerns with system congestion as wind comes onlineIncreases electric reliability

Green Power Express BenefitsGreen Power Express Benefits

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Benefits: Competitive Fuel PricesBenefits: Competitive Fuel Prices

Source: The Brattle Group

Levelized All-In Costs for New Capacity in MAPP(Excluding Firming, Storage, and Transmission Costs)

$525

$0

$25

$50

$75

$100

$125

$150

$175

$475

$500$501.7

$145.3

$162.5

$98.3 $84.6

$87.5

$66.7$82.4$76.8$72.8

$98.6 $71.2

$50.4

Biomass CC Adv. CC Conv. Coal CT Adv. CT Conv. CoalSeq.

Nuclear PV Wind(32% c.f.)

Wind(42% c.f.)

2008

$/M

Wh

CO2 Cost

Fuel Costs

VOM

FOM

Capital Costs

Total with PTC

Non-dispatchable - may need additional storage and firming

Dispatchable - no firming required

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765 kV provides greatest capacity increases with least land consumption— One 765 kV facility can carry as

much power as six 345 kV lines— Reduced right-of-way lowers cost as

well as impacts to consumers and environment

Supports competitive markets, reliability, and renewable energy development

Power carried greater distances and facilitates renewable resources market

Availability is greater than 99% of the time

“On-ramps” and “off-ramps” provide for easy generation connections and future transmission integration

Why 765kV instead of 345kV?Why 765kV instead of 345kV?

VS

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DC is a good technology for certain applications, namely point to point without off ramps— GPE has a number of pick-up and drop-

off points for power along the pathDC does not allow for easy redirection of power in the case of a line outage— Could make system vulnerable from a

reliability standpoint if used as a first step— May require a significant system belowDC overlays may be required in the Eastern Interconnect once a robust backbone system exists to accommodate renewable development

Why Not DC for GPE?Why Not DC for GPE?

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State/Federal Rules and Contractual Rights

Underlying system planning— ITC will support incumbent to

address planning concerns and submit to RTO

— Substation location and other planning items

— Strong backbone to build on to support future development on local utility system

Local Siting Issues— Local color on approaches to siting,

including location

Partnership Structure— Must be developed in a way that

maintains independence

Working with Local UtilitiesWorking with Local Utilities

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Lack of Federal Policy Direction— Federal RPS— CO2 Policy— FERC role in siting

Planning Processes— Regional approaches

(UMTDI, RGOS, JCSP— Timing— RTO metrics

Cost Allocation— RECBTF— CARP/OMS— Current Structures

What Else Has to be Addressed? What Else Has to be Addressed?

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FERC Order on GPE – April 10, 2009FERC Order on GPE – April 10, 2009

Approved the following incentives as in line with the project risks:

— Regulatory assetApproved effective April 11, 2009 and January 1 each year for subsequent year205 filing required to show prudence and just and reasonableness

— CWIPCompliance filing for authorization to include in rates required at least 60 days prior to requested effective date

— Abandoned plantMust file future 205 to show costs are just and reasonable and identify the cost allocation method that will be applied

— Hypothetical capital structure

60 percent equity and 40 percent debt until any portion of the project is placed in service

ROE - approved total ROE of 12.38%, which includes 100 points for independence, 10 points for scope of project, and 50 points for RTO participation which is effective when entity becomes an RTO member and places project under RTO operational control

Formula rate and protocols – set for hearing and subject of ongoing settlement discussions

Requires filings on partnership structure as development occurs to ensure independence is maintained

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Green Power Express ActivitiesGreen Power Express Activities

Future activities include the following:— Negotiations with potential partners and gathering of input from

incumbent utilities and stakeholders— Participation in MISO regional planning studies— Implementation of a multi-regional cost allocation mechanism— Routing studies, EIS, and preliminary engineering— Application for transmission line siting in accordance with existing state

protocols— Detailed design of the first phase of the project, including right-of-way

acquisition and ordering of long-lead items— Construction

• Phase 1 can be placed in service in as little as 2 to 3 years from when construction begins

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The GPE is a project conceived by ITC to reach the wind-rich areas of the upper Midwest with extra-high voltage transmission — The GPE aligns with the development of renewable resources— The GPE supports a national energy vision for the development of

renewable resourcesGPE integrates with other Regional planning processes and visions:— MISO Planning processes (e.g., MTEP)— National green energy vision — Joint Coordinated System Plan (JCSP) transmission overlay for a

20% Renewable Energy Standard— Upper Midwest Transmission Development Initiative in the states of

ND, SD, MN, WI, IAITC intends to add local partners on the GPE to bring the project to fruitionITC is uniquely positioned, independent, and qualified to see this project built, without government money

Green Power Express SummaryGreen Power Express Summary

Francie BrownDirector – State Governmental Affairs

ITC

Federal and State Legislative Update

Federal and State Legislative Update

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Status of Federal Transmission LegislationStatus of Federal Transmission Legislation

Transmission “just a part of the picture”Democratic leaders (especially in House) want to address transmission upgrades, nationwide renewable energy standards (RES), and climate change together in one large bill. While others (including Sen. Bingaman) want to deal with transmission alone, the “omnibus energy bill” approach appears likely to win out.

Several bills - which one will win out?Currently, three major bills (sponsored by Congressional leaders) control the debate. Two (the lead House bill, and Sen. Reid’s bill in the Senate) couple transmission with RES and climate change, but moderate Democrats’ opposition may prevent those measures from succeeding. Only time will tell which proposal wins the day, if any.

What’s the timeline?Democratic leadership and the White House have said they want to pass major energy legislation (including transmission) by the end of 2009. Committee activity is expected to be completed by the end of May. Most of the bills would not require any interconnection-wide plans to be developed for a year after enactment.

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Key Issues for ITCKey Issues for ITC

Planning for National Transmission ProjectsITC supports using existing planning processes and structures to assist in development of an interconnection-wide planning process. In order to plan for remote resources that are distant from load, the existing planning footprints are inadequate. The process must be open, transparent, and mandatory. All transmission owners must participate in the process.

Siting AuthorityITC believes that the states are best situated to determine where transmission facilities should be located. However, for large, multi-state projects, designed to meet national energy and environmental goals, the determination of whether such projects are needed

should be a federal decision.

Cost AllocationThe cost associated with extra high-voltage projects with broad regional benefits should be spread as broadly as possible, preferably interconnection-wide. Feeder lines that bring renewable resources into the EHV overlay should also be broadly allocated.

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Key Legislation – Waxman-MarkeyKey Legislation – Waxman-Markey

Lead House Bill – American Clean Energy and Security Act (Waxman-Markey)

Planning: FERC would adopt transmission planning principles within a year— Principles must take into account “all significant demand-side and supply-

side options”— Regional planning entities must submit plans to FERC within 18 months of

release— FERC must review for Waxman-Markey compliance; resolve any disputes— But – no authority for a meaningful interconnection-wide planning processSiting: Waxman-Markey does not address siting or certificationCosts: Waxman-Markey does not address cost allocation or funding

Takeaway – The bill does very little to promote transmission development, ITC is advocating amendments to the bill and focusing on the Senate that deals more comprehensively with transmission reforms Blue Dog Democrats (moderates) have expressed desire to amp up transmission requirements when House Energy & Commerce Committeeconsiders amendments

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Key Legislation – Reid Bill (S. 539)Key Legislation – Reid Bill (S. 539)

Senate Bill #1 – Clean Renewable Energy and Economic Development Act (Reid bill, S. 539)

Planning: Designated regional planners to design interconnection-wide plans— FERC-designated entities must adopt interconnection-wide green transmission grid

project plans within one year of FERC designation— FERC does not have approval or review authority over regional plans, but can

enforce default plans on states that do not participate in their interconnection-wide plan

Siting: FERC can issue siting permits after consultation with states— FERC still serves as backstop authority; developers can only go to FERC for

certificate if they fail “to make reasonable progress” in siting facility under state/regional plan

Costs: Regional planners to design allocation method; FERC approval required— States and/or planning entities can collect “prudently-incurred” costs— Funds collected in surcharge on load serving entities not greater than $80mil/yr

Takeaway – ITC supports many elements of the bill. But, ITC does not believe that regional entities will be able to resolve the cost allocation impasse – as has been the case to date.

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Key Legislation – Bingaman DraftKey Legislation – Bingaman Draft

Senate Bill #2 – Senate Energy and Natural Resources Draft (Bingaman Draft)Planning: FERC and regional entities to share authority for developing plans— FERC must coordinate development of interconnection-wide plans that promote

policy goals, to be published in a rule within one year of enactment— FERC can defer planning to interconnection-wide entity, but FERC must review and

approve regional plans and can modify once submitted— FERC may enforce default plans on interconnections if no regional entity develops

planSiting: FERC to receive boosted backstop authority for high priority projects— States have one year from time regional proposal is filed to site high priority projects— FERC automatically obtains jurisdiction to site if states fail to complete siting within a

yearCosts: FERC to establish allocation methods by rule— Methods must be “just and reasonable,” but no further detail in draft— FERC may allocate costs across a region if found beneficial for region by FERCTakeaway – ITC supports the most recent Bingaman draft, but feels it should be more explicit as to FERC’s role in integrating regional plans and Congress should providemore guidance to FERC for the cost allocation rulemaking

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Other Legislation Other Legislation

National Energy Security Act of 2009 (Dorgan Bill, S. 774)— Addresses transmission in coordination with RES and increased domestic oil

production— Requires FERC review and approval of interconnection-wide plans developed by

designated regional authorities; plan must be updated every two years— FERC has primary and exclusive citing authority for extra high voltage line projects— Regional entities will set cost allocation plans (with FERC approval)

SMART Energy Act of 2009 (Nelson bill, S. 807)— FERC has exclusive jurisdiction over planning, permitting, siting and construction

decisions necessary for national transmission projects— FERC must submit plans to Congress within one year, then begin work within 18

months— FERC receives backstop siting authority for all secondary connections— Transmission project sponsors can collect payment and recover costs of

incremental transmission capacity for renewable electricity sources if plan is approved by FERC

Takeaway – ITC’s position is most closely reflected in the Dorgan bill.

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State Legislative ReportState Legislative Report

ITC Midwest states— Iowa — Minnesota — Illinois — Missouri

Advocacy with State Legislature, Governor’s office, and State Agencies

Issue monitoring and advocacy: — Energy, ROW, transmission siting, jobs, economic development,

franchise provisions, regulatory reform, job training, taxes, and provisions dealing with federal stimulus $ through ARRA

Advocacy for Green Power Express in all states

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Iowa Iowa Legislature adjourned Sunday, April 26, 2009 at 5:00 a.m.

Budget issues took center stage – resolution of a $1.4 B hole

Senate File 279 adopted and signed by the Governor Culver— Provides utilities with an abbreviated process for upgrading 34.5 kV

lines to 69 kV;— Franchised and non-franchised lines;— Rules process and waiver process included in legislation;— Worked with Coops, Farm Bureau, and the IUB on acceptable

language; — Governor Culver signed the bill on April 17, 2009

Federal stimulus $ in ARRA— Opportunities for Smart Grid projects;— 50/50 Matching grants for Smart Grid projects;— Availability of funds for worker training activities

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Minnesota Minnesota

Legislature scheduled to adjourn May 18, 2009

Budget – projected budget deficit of $4.6 Billion — Revenues down 13% from forecasts — Combination of cuts and delays if no new revenues are identified

Senate File 526 introduced by Senator Prettner-Solon— Requires annual legislative report on adequacy of electric

transmission infrastructure over the next 15 years— Report to identify barriers to meeting transmission needs; legislative

recommendations

Senate File 550/House File 867— Omnibus Energy Bill — Addresses myriad of issues all relating to renewable energy — Definitions of Large and Small Wind Energy Conversion Systems— Bill does not have Senate transmission study language

30

Illinois and MissouriIllinois and Missouri

Illinois Legislature scheduled to adjourn May 31st.

Budget deficit of $ 11.6 Billion— Deploy federal stimulus $— Increase personal income taxes from 3% to 4.5% — Program cuts, other savings, other fee increases

Attorney General meeting with utilities and consumer groups— April 16th to discuss legislation on: uncollectibles, exemptions for

large industrial customers, energy efficiency for natural gas customers, ability of the AG to present oral argument on proposed rate increases.

Missouri Legislature scheduled to adjourn May 15th

Missouri to use federal stimulus $ to reduce income tax rate from 6% to 5.5%

Federal Regulatory UpdateFederal Regulatory Update

Tom Wrenbeck

Director – Regulatory Strategy

ITC

32

FERC rejected MISO’s Proposed “Market Coordination Services” under Module F part III of the Tariff. — This proposal suggested these services be offered to non RTO

members as “A Trial Membership to MISO.”

The ITC Companies filed jointly with AEP in protest of the cross border economic project cost allocation methodology proposed by MISO and PJM.

The ITC Companies, along with Great River Energy and Xcel Energy, filed a Schedule 26 true up methodology. This mechanism allows for a true up by project, by independent pricing zones.

AEP has filed a petition for review of FERC’s rehearing decision on the rate design for the PJM/MISO region with the 7th Court of Appeals. — The ITC Companies filed to be a party in the case.

Regulatory UpdateRegulatory Update

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FERC dismissed IPL’s Section 206 complaint against ITC Midwest.

FERC approved all of the requested incentives (abandoned plant, CWIP in rate base, regulatory asset, ROE adders, and hypothetical capital structure) for the Green Power Express Project. The requested formula rate and protocols are set for hearing.

The ITC Companies filed FERC Form 1’s on April 16, 2009.

There will be a meeting explaining the 2008 Attachment O true up calculation on June 10, 2009 in Ames, Iowa. Details of the meeting will be sent out soon.

Regulatory UpdateRegulatory Update

Iowa Regulatory UpdateIowa Regulatory Update

Lisa StumpManager – Regulatory Affairs-Iowa

ITC Midwest

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ITC MidwestRegulatory Group and ContactsITC MidwestRegulatory Group and Contacts

Lisa Stump – Manager100 East Grand Ave., Suite 230Des Moines, Iowa 50309(515) 282-5300, Ext. 460lstump@itctransco.com

Terry Erickson – Regulatory Associate100 East Grand Ave., Suite 230Des Moines, Iowa 50309(515) 282-5300, Ext. 466terickson@itctransco.com

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Iowa Regulatory (Progress)Iowa Regulatory (Progress)

Opened Des Moines office

Developed detailed procedures for:Outage reporting

Compliance reporting

Accident reporting

Addressing probable violations found during Utilities Board inspections

Franchising

Working towards acquiring franchises to allow construction of projects needed to meet customer, reliability and regulatory commitments

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Franchising 101Franchising 101

Existing Franchises require extension after five yearsNew franchises are needed when constructing a 69kV or higher voltage line outside of city limits or on property not owned by the utility or end-use customerAmended franchises are needed when upgrading the voltage on existing franchised linesPublic information meetings are required when requiring additional interests in private real estate of a mile or moreA hearing is required if any objection is on file at the Utilities BoardTypical Timeframes for Regulatory Approvals:

Extensions (No Objections) – 4 to 6 monthsAmendments (No Objections or Public Information Meeting) – 4 to 6 monthsNew and Amendments Requiring Public Information Meetings – 6 to 12 monthsAny Petition with an Objection on File at Utilities Board – 12 months

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Projects Requiring Franchise WorkProjects Requiring Franchise Work

Network Upgrades/Interconnections for Wind Development

Franchise Extensions (7 granted and 1petition pending)

Reliability Driven Projects

Salem-Hazleton 345kV Project

34.5kV to 69kV Upgrades

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Network Upgrades/Interconnections for Wind DevelopmentNetwork Upgrades/Interconnections for Wind Development

A new franchise is not needed if interconnection is made on property owned by ITC Midwest or the developerAn amended or new franchise is not needed if interconnection is made by relocating an existing line where less than a mile of new ROW is requiredFranchising work related to interconnections:

— Three public information meetings held— Three Petitions filed with three franchises granted— Future Petitions – Easement acquisition ongoing on three

petitions for network upgrades to enable future wind development in Boone, Story and Marshall counties

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Reliability-Driven ProjectsReliability-Driven Projects

Marshalltown to Stoney Pt. Voltage upgrade and rebuild— Four public information meetings held (Marshall,

Tama, Benton and Linn)— Two petitions filed and two franchises granted

(Marshall and Tama Counties)— Remaining counties – Easement acquisition phase

Grand Mound – Public info. meeting heldLehigh Relocate – Franchise granted and construction completeRose Hollow – Franchise granted and construction ongoing

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34.5kV to 69kV Upgrade Projects34.5kV to 69kV Upgrade ProjectsUpgrade driven by reliability and development concernsProgress:

Construction Completed: Tama to Toledo (also a highway move)

Franchises granted:— North Grand Jct. to Paton REC Tap (one county)

Petitions pending regulatory approval:— Boone to Jewell (two counties)— Eldora Area Upgrades (three counties)— Monticello-Amber & East Lovell REC Tap (one county)— West Branch to West Liberty (three counties)

Work Ongoing or Public Information Meetings Scheduled— Fairfax to Williamsburg (three counties)— Wyoming to Massillon (two counties)— Andrew Sub. Tap and Monmouth (one county)— Anita Area Upgrades (five counties)— Dyersville West

Utilities Board legislation passed and enacted

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Franchise LegislationFranchise Legislation

ITC Midwest worked with the Utilities Board to pass legislation designed to expedite the franchising process for 34.5kV to 69kV upgrade projects where substantial new ROW is not needed.

SF 279 was passed and signed by the Governor in April. It is currently in effect.

Under new process, public information meetings and public notice will not be necessary for qualifying projects.

Next Step: Utilities Board Rulemaking

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Salem-Hazleton ProjectSalem-Hazleton Project

Regulatory commitment to build Salem-Hazleton Project by December 31, 2011Regulatory Progress:

Noticed over 1,000 landowners for four public information meetings held in early 2009— Dubuque and Jackson

Counties: 2/10/2009— Delaware and Buchanan

Counties: 2/9/2009Currently acquiring easementsOngoing communications effort with landownersLandowner objections only filed in Dubuque County where new line is being built on new ROW

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Goals of Iowa RegulatoryGoals of Iowa Regulatory

100% compliance with Utilities Board rules and regulations

Participate in all relevant rulemakings and inquiries

Mange the regulatory process to:

— Meet commitments made during transaction approval proceedings

— Meet the needs and schedules of new generation wanting to interconnect to the ITC Midwest system

Develop or improve relationships with state, county, municipal and industry leaders

Meet customer expectations (both internal & external)

Bob MulqueenPolicy Director for the State of Iowa

Office of Energy Independence

Iowa Renewable ProgramIowa Renewable Program

LunchLunch

Dr. Elwynn TaylorIowa State University

2009 Summer Weather Forecast2009 Summer Weather Forecast

Dede SubaktiManager West Regional Operations Engineering

Midwest Independent Transmission System Operator (MISO)

MISO Wind IntegrationMISO Wind Integration

Managing Wind Energy:From Interconnection Planning to

Real Time Operations

An Integrated Approach to Ensure Energy and Transmission Capacity

Michael McMullen Kris Ruud Dede Subakti

Who We Are• Independent, non-profit organization

responsible for maintaining reliable transmission of power in 15 states and one Canadian province

• First Regional Transmission Organization (RTO) approved by the Federal Energy Regulatory Commission (FERC)

Our Role• Midwest ISO is a service company that provides

reliability to the electric grid

• Midwest ISO administers the market for electricity producers and users on a wholesale level

• Midwest ISO does not generate or buy electricity

Agenda• Introduction – Wind Energy Growth

• Challenges in the Generation Interconnection

Process

• Transition From LGIA to Real Time Operations

• Challenges in Real Time Operations

• MISO Centralized Wind Forecasting

• Other New Initiatives within Midwest ISO for

Integration of Wind Energy

Introduction – Wind Energy Growth

The map shows the annual average wind power estimates across the US at 50 meters above the surface

Introduction – Wind Energy Growth

0

1000

2000

3000

4000

5000

6000

7000

In Facilities Study Phase SIS/DPP Total

2005 2006 2007 2008 2009

Projects still in Queue: Approximately 685 MW with executed Generator Interconnection Agreement (GIA) and planned in-service date in 2009. Nearly 6000 MW still in

queue with requested in-service date prior to 2010

High Level Process of Integrating Wind Energy

IA being signed

CommercializationGI Process ConstructionApplication

Generation Interconnection Process

Challenges in the Old Generation Interconnection Process

• Process driven by the Queue Order (i.e. first in first served)• Queue position being significantly valuable• Having a relatively lower cost of entry into the queue• Inordinately high amount of interconnection requests against a highly

constrained transmission system• High attrition driven primarily by the apparent oversupply of requests,

and resultant rework, delays and uncertainty for subsequently queued projects

• No cost/penalty for suspension, resulting in large number of projects being suspended

– adverse impacts on timelines and uncertainty for later queued generators dependent on the transmission upgrades of the suspended generators.

Old GI Studies Compared toNew GI Studies*

* This page illustrates comparison of studies’ procedural differences; differences in milestones, deposits, and paths through the phases are not shown.

Feasibility Feasibility Feasibility System Impact System Impact System Impact

ThermalThermalShort CircuitShort CircuitStabilityStability

OldPhases

Facility Facility Facility IA/FCAIA/FCAIA/FCA

System Impact Study

System Impact Study

Facility Study

Facility Study

Feasibility Study

Feasibility Study

Interconn. AgreementInterconn. Agreement

Translates to

Translates Translates toto

ApplicationReview

ApplicationApplicationReviewReview

Pre-QueuePre-Queue Systems Planning &

Analysis

Systems Planning &

Analysis

Definitive PlanningDefinitive PlanningDefinitive Planning

Facility Study

Facility Study

Contour Map

Contour Map

Application validation

Feasibility Study

SIS (Review, Study, or Restudy)

SIS (Review, Study, or Restudy)

ThermalShort CircuitStability

New (current)Phases

ThermalShort CircuitStability

Interconn. AgreementInterconn. AgreementSystem

Impact Study (SIS)

System Impact

Study (SIS)Relationship buildingCustomer discussionPre-entry review

Facilities Construction Agreement

Facilities Construction Agreement

Facilities Construction Agreement

Facilities Construction Agreement

New phaseNew phaseNew phase Replaced by

Replaced Replaced byby

Translates to

Translates Translates toto

59

GI Study Milestones & Deposits

$440,000$90,000$5,000

501 - 999 MW

$360,000$60,000$5,000

201 - 500 MW

$260,000$60,000$5,000

101 - 200 MW

$210,000$60,000$5,000

51 - 100 MW

$150,000$30,000$5,000

21 - 50 MW

$100,000$20,000$5,000

7 - 20 MW

$40,000$10,000$5,000

<6 MWRef Description/Rationale Refund 1000+ MW

D1 Application Fee/Fund FeS* No $5,000D2 Fund System Impact Study Yes $120,000D3 Fund Definitive Planning Partial $520,000

ApplicationReview

ApplicationReview

Pre-QueuePre-Queue System Planning & Analysis

(SPA)

System Planning & Analysis

(SPA)

Definitive Planning

Definitive Definitive PlanningPlanning

M3M3

Milestones

IA

Facilities Study

Facilities Study

Contour Map

Contour Map

SPA Review (SIS)

SPA Review (SIS)

System Impact

Study (SIS)

System Impact

Study (SIS)

RPGIPs(future)

RPGIPs(future)

Process EducationProcess

Education

Ad HocSessionAd HocSession

Application Validation

Application Validation

Feasibility Study

Feasibility Study

M1M1

Application SubmissionApplication Submission

IA / FCA NegotiationIA / FCA

Negotiation

Milestones Milestones

M2M2

1. Constrained transmission

1. Constrained transmission

2. Transmission available2. Transmission availableD2

D3

D1

Sample Contour Map

Gives an idea of relative incremental injection capability

Introduction – Wind Energy Growth

The map shows the annual average wind power estimates across the US at 50 meters above the surface

After Interconnection Agreement is Signed – During Construction

Transition From LGIA to Real Time Operations

• Operating Guide for the new facility that shows the impacts of wind

– This often needs 2 months especially when

it needs agreement from multiple TOs• Asset Registration – For Online tools

– Needs to be aligned with Model Update schedules:

• Quarterly model updates timing requirement vs. Wind Farm project timeline

e.g.: Wind Farm that needs to test by Aug 1, 2009 will need to be registered and

submit network model data by March 15, 2009 (for June 1, 2009 model)

– Additional data for Wind Forecast needs to be submitted 30 days prior to

commercialization.

• Latitude, Longitude, Hub Height, and Turbine Type

• MOD Registration – For Offline tools– Data needs to be submitted by the 15th of the month prior to commercialization.

Proposed Process – High Level View

Project Time Line will need to be continuously communicated between IC, TO, TOP and MISO

Operating Studies• More often than not, a number of system topology

changes have occurred since the interconnection planning study was performed. These may include, but are not limited to, suspension or withdrawal of prior-queued generation and their associated transmission upgrade.

• In addition, often wind facilities come online before the needed upgrades in the transmission network are completed.– Some Customers would like operating guide– Some Customers would like to have SPS– Customers might choose to have Temporary IA

Operating Studies• Sensitivity studies are also performed to look for

potential issues with different energy transfer bias with different regional wind output level. A minimum of four scenarios are accounted in the sensitivity study. These are done for system intact and prior outage condition– Minimum load with 100% regional wind output– Minimum load with 20% regional wind output– Peak load with 100% regional wind output– Peak load with 20% regional wind output

• Any potential transmission congestion is documented in the Operating Guide

Operating Guides• Curtailment Process for Transmission Congestion:

– If it is not yet commercial, test energy will be curtailed first prior to LMP Binding Procedure/TLR

– If it is local and not impacted by any other generators:

• Manual curtailment of wind on a pro-rata basis respecting their Transmission Service priority

– If it is regional and it can be impacted or solved by other generators:

• Use TLR/Binding Process first• If SOL is approaching and/or LMP/TLR is not providing enough

relief, then:– Manual curtailment of wind on a pro-rata basis respecting their

Transmission Service priority

Commercialization and Operation

Challenges in Real Time Operations

• Impact of Wind Energy on Congestion

Management

• Impact of Wind Energy on Generation Commitment

Wind Farms in The Midwest

Impact of Wind Energy in Generation Commitment and Ramp

• Between June – Nov 2008, the Midwest ISO wind output peaked at 2779 MW. – The max 15 min change observed was

+ 325.9 MW and – 623 MW. – The max 60 min change observed was +622.5 MW and -

700.5 MW • Between Dec 2008 – Feb 2009, the Midwest ISO

wind output peaked at 3730 MW. – The max 15 min change observed was

+ 356.3 MW and – 390.2 MW. – The max 60 min change observed was +959.5 MW and -

711.4 MW

Wind Energy Ramp June-Nov

-500 -400 -300 -200 -100 0 100 200 300 400 500

15 min change 60 min changeSix Sigma Bound for 15 min change Six Sigma Bound for 60 min change

Wind Energy Ramp Dec-Feb

-500 -400 -300 -200 -100 0 100 200 300 400 500

MW Change

15 min change 60 min changeSix Sigma Bound for 15 min change Six Sigma Bound for 60 min change

Wind Energy Ramp June-Nov

0%

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Impact of Wind Energy in Generation Commitment

• MISO performs Economic Dispatch every 5 minutes

• Changes of wind ramp in 5 minutes are not significant yet

• MISO allows intra-hour scheduling. Wind ramp in 15 minutes are not significant yet

MISO Centralized Wind Forecasting

Wind & Wind Forecasting

• There is ~4500 MW of wind generation installed in the MISO Market footprint– Central Region – 100+ MW– East Region – 700+ MW– West Region – 3500+ MW

• Additional 1500-2000 MW in the rest of the Reliability Footprint (MEC, DPC, MHEB, WAPA)

MISO Wind Forecasting• Midwest ISO evaluated proposals for a

centralized forecasting system early 2008– Approximately 2500 MW of wind in service at the time

– Started training the forecasting tool in May 2008

– Forecasts started in June 2008

– As forecast have become more mature, additional uses in Control Center and integrated into tools

MISO Wind Forecasting

• Data needed for accurate wind power forecasts– Latitude and Longitude of wind farm*

– Turbine type, turbine hub height*

– Real Time MW values*

– Availability of turbines at each site

* Currently in use at Midwest ISO

MISO Wind Forecasting• Energy & Meteo providing wind forecasting

services

• Forecasts at the CpNode level, Zones, Regions and MISO Market total

• Currently doing hourly forecasts for 7 days updated hourly at each CpNode and aggregated to Zones, Regions, and MISO Market totals

MISO Wind ForecastingTotal Market Footprint

Regional level

Zones

CpNode level

Wind Forecasting and Numerical Weather Predictions - NWP

• Numerical weather prediction uses current weather conditions as input into mathematical models of the atmosphere to predict the weather. Use of model ensemble forecasts helps to define the forecast uncertainty and extend weather forecasting farther into the future than would otherwise be possible. (From Wikipedia)

• Midwest ISO uses a multiple NWP forecasting model

Wind Forecasting and Numerical Weather Predictions - NWP

Wind Forecasting - AccuracyM

ean

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olut

e E

rror

(%)

Integrating Wind Forecasting into Market Operation

• Current Market Rules– Intermittent Resource

• Can Offer an amount up to the Maximum output into the Day Ahead Market

• Cannot offer in the Real-Time Market, does not set price• Not subject to deviation uplift charges (if Real Time amounts different

from Day Ahead cleared amounts)*– Tariff says each Market Participant has to submit a Day Ahead

Intermittent Resource forecast• Set up Business Practice Manual and Portal site for this submission –

began May 1, 2009• Will be used in Forward and Intra Day Reliability Assessments

Integrating Wind Forecasting into Market Operation

• Current Market Uses– Wind forecast used in Transmission Outage Coordination

• Example – With the West Region wind forecast being low for the next day, the outage of (xxx line) has been delayed until Thursday due to transmission constraints (otherwise would have to commit extra Combustion Turbines)

– Wind Impact Tool• Automated tool that shows impact of wind increases and decreases on

Flowgates

– Currently uses a delta equal to the largest hourly increase and decrease over the last 24 hours

– Will also work with the wind forecast change for the next hour

Integrating Wind Forecasting into Market Operation

• Current Market Uses– Wind forecast used in Transmission Security Planning

• Wind forecast used to model wind generation for next day peak load analysis

– Accuracy of wind resources affect overall accuracy of the analysis

– Forward and Intra Day Reliability Assessments• Forecast used to help determine reliability unit commitment for next

day and real time

– Many cases of not starting a conventional generator because wind forecast shows adequate wind to keep transmission constraints manageable

– Currently a manual process, but is being automated into various operator tools

Other New Initiatives

New Initiatives

• Interconnection Queue Process Reform

• Regional Generation Outlet Study

• Wind Impact Tool

• Reviewing Tariff/Market Design with regard to

Intermittent Resources

• Wind Integration Workshops

New GIA Process Highlights• Transition from a “first-in, first-served” approach to

“first-ready, first-served” as demonstrated through the achievement of specific milestones

• Creation of: – a Pre-Queue phase in the process

– a “fast-lane” for projects in less-constrained areas

• Up front deposit for all studies based on project size

• Elimination of the ability to suspend projects for economic reasons

Regional Generation Outlet Study(RGOS)

• Regional transmission plans that would facilitate the integration of wind in Midwest ISO footprint

• The first RGOS focuses on only Illinois, Iowa, Minnesota, and Wisconsin. These RPS mandates generally are for the timeframe of 2010 to 2020 and later.

• Studies have shown that the existing and planned transmission system will likely not be able to deliver the energy/capacity required by the state mandates for 2013 and beyond.

• These transmission plans will eventually be fed into the Midwest ISO Transmission Expansion Planning (MTEP) process

Wind Impact Tool

2 Different scenarios are run:

Max Wind Increase and Max Wind Decrease (based on the last 24 hour wind trend)

(click button to see detail results)

Results are sorted by its impact on FG.

If there is 95% overload, it will be at the top

Review of Tariff/Market Design

• Several internal and external groups are investigating potential enhancements to Market Design to better accommodate the growth of Wind Generation

• Any changes will be fully vetted through stakeholder process

Wind Integration Workshops

• First Workshop held March 24th

• Next Workshop scheduled for June 10th

• Materials posted on www.midwestmarket.org

Summary• Challenges in the Generation Interconnection

Process

• Transition From LGIA to Real Time Operations

• Challenges in Real Time Operations

• New Initiatives within Midwest ISO for Integration

of Wind Energy

For More Information• Kris Ruud• Technical Manager• Operations Resource Integration• kruud@midwestiso.org

• Dede Subakti• Manager• West Regional Operations Engineering• dsubakti@midwestiso.org

BreakBreak

Summer ReadinessSummer Readiness

Elizabeth HowellVice President – Operations

ITC

103

Operational TransitionOperational Transition

ITC assumed operational control of the ITC Midwest 69kv and above transmission system from ATC on December 15, 2008Operations are directed from ITC’s Operations Control Room in Novi, MichiganUnder the Transition Service Agreement, Alliant Energy continues to operate the 34.5kV system from the DDC in Cedar Rapids

104

2009 Weather Forecast2009 Weather Forecast

Anticipating a warmer summer than last year— Summer will be warmer and drier than normal (on average)— Hottest periods in early June, July with a cooler August

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Temps Versus PeaksTemps Versus Peaks

Range of Average Hourly Temps on Days of ITC Midwest Monthly Peaks, 2002-2008

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108

2009 Load Forecast2009 Load Forecast

2008 summer peak loads were lower than the prior several years

Based on forecast weather and load performance YTD, expecting higher loads this summer than last, but not too significant

ITC Midwest Peak LoadITC Midwest Peak Load

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109

Summer Assessment SummarySummer Assessment Summary

ITC Operations Engineering conducted power flow studies based on various assumptions for the summer and identified possible thermal and voltage violations for system normal and for single contingencies

Developed mitigation plans for all possible violations, including system reconfiguration, generation re-dispatch, and load shedding

Mitigation plans are being coordinated with Midwest ISO, Alliant Energy, and other third parties as appropriate

110

Operational State of the SystemOperational State of the System

Prairie Creek and Sixth Street substations were severely damaged, resulting in a loss of generation, breaking up of the 115kV network, and the loss of the 115/34.5kV sources into the Cedar Rapids metropolitan area

June 2008 Flood

111

Operational State of the SystemOperational State of the System

By July 4, 2008 the following restoration had occurred:— The 115kV stations at Prairie Creek and Sixth Street were

partially restored in order to reconnect the 115kV network — Two 115kV capacitors were installed to provide voltage support

to the area— The 345/161kV transformer at Duane Arnold Energy Center

was reconfigured to help support voltages in the Cedar Rapids area

— Two new 34.5kV sources were added to serve load— Distributed generation was made available to Alliant Energy to

help serve load in the area

Mild temperatures, slow load recovery and repairs/investments resulted in reliable transmission throughout summer 2008 in the Cedar Rapids area

112

Operational State of the SystemOperational State of the System

The 34.5kV source at Sixth Street station was restored and the 34.5kV source at Beverly station was made permanent to provide permanent sources to the area

Jumpers on several 115 kV lines in the area will be upgraded to increase system capacity

Post-Flood Preparations for Summer 2009

113

Operational State of the SystemOperational State of the System

Prairie Creek units are expected to be in service to serve load and support voltages in the Cedar Rapids area

MidAmerican’s Coralville units (also damaged during the flood) are expected to be in service, which will further help to support the area

Mitigation plans will be developed between ITC Midwest and Alliant Energy if anticipated generation is not restored by summer

114

Operational ChallengesOperational Challenges

If anticipated Cedar Rapids generation isn’t available by summer, we may experience voltage problems— If Duane Arnold generation is lost, load shedding would

be the only solution

If certain contingencies occur, equipment overloads will need to be managed

115

Operational ChallengesOperational Challenges

Storm Season— Responding to equipment damage or operations

resulting from severe weather

116

Summer 2009 Major ProjectsSummer 2009 Major Projects

Dysart-Vinton 161kV rebuild is continuing through summer 2009 as part of the entire Duane Arnold-Vinton-Dysart-Washburn path reconstruction to dramatically reduce congestion through Iowa

In-service date for entire rebuild December 2009

117

Summer 2009 Major ProjectsSummer 2009 Major Projects

Upgrades on the Adams-Barton 161kV line to accommodate Barton Wind Farm will occur during the summer

118

Completed ProjectsCompleted Projects

Since acquiring the system, ITC Midwest has already completed projects to improve operations and reliability

Re-conductoring of 161kV Dysart-Washburn line

Multiple breaker replacements across the ITC Midwest system due to age and condition

119

Summer PreparationsSummer Preparations

Summer readiness equipment inspections:— Performing functionality

testing of transformer Load Tap Changers (LTCs) to ensure reliable operation

— Aerial inspection of lines

120

Summer PreparationsSummer Preparations

Vegetation management— Enhanced vegetation

management program

— High priority for outage reduction on 34.5 and 69kV

— Significant hot-spotting completed during third, fourth and first quarters

121

Summer PreparationsSummer Preparations

Issued generator voltage schedules for all large generators, including wind farms, to conform to NERC Standard VAR-001— This will help ITC to better control system voltages, especially

during high summer loads

Conservative operations policy— Will follow MISO’s business practices for conservative

operations, including limiting work at critical sites on high load days

— ITC restricts maintenance and construction work on power plant mats and on critical transmission assets during high load periods

— On critical days, all non-emergency work will be stopped

Questions?Questions?

Jon JippingChief Operating Officer

ITC

Smart Grid at ITCSmart Grid at ITC

124

Table of ContentsTable of Contents

Smart Grid Defined and The Smart Grid PromiseThe ITC ApproachCommunications NetworkReal-time Monitoring and ControlEvent AnalysisConclusion

Smart Grid Defined/The Smart Grid Promise

Smart Grid Defined/The Smart Grid Promise

126

The Smart Grid DefinedThe Smart Grid Defined

A precise definition of the Smart Grid remains elusive…

Common themes:EfficiencyDemand responseConsumer savingsReduced emissions

TechnologyTwo-way communicationAdvanced sensorsDistributed computing

ReliabilityInterconnectivityRenewable integrationDistributed generation

IEEE: “The term ‘Smart Grid’ represents a vision for a digital upgrade of distribution and transmission grids both to optimize current operations and to open up new markets for alternative energy production.”

Wikipedia: “A Smart Grid delivers electricity from suppliers to consumers using digital technology to save energy, reduce cost, and increase reliability.”

FERC: “Grid advancements will apply digital technologies to the grid and enable real-time coordination of information from both generating plants and demand-side resources.”

DOE: “A smarter grid applies technologies, tools, and techniques available now to bring knowledge to power –knowledge capable of making the grid work far more efficiently…”

GE: “The Smart Grid is in essence the marriage of information technology and process-automation technology with our existing electrical networks.”

127

The Smart Grid Defined (Cont’d)The Smart Grid Defined (Cont’d)The Smart Grid is the convergence between electrical and new “intelligence” infrastructure.

Two-way flow of electricity and information that strengthens reliability and resource management

Data, control, and automation providing increased efficiencies, responsiveness, flexibility, and resiliency

“Time-based” decisions and transactions between energy suppliers, buyers, and markets

Market-side resources operating with traditional supply-side resources as a “portfolio”

Sustainability—environmental compliance and resource stewardship benefits

Convergence

Smart grid transforms the electric industry model from a “centralized, producer-controlled energy grid” to a more “distributed, customer interactive energy network”

– DOE, “The Smart Grid: An Introduction ... ,” 2008

128

The Smart Grid PromiseThe Smart Grid Promise

*Source: Department of Energy: “The Smart Grid – An Intro”

Vision of a Vision of a Future with a Future with a Smart GridSmart Grid

Descriptions of the Smart Grid paint a grand picture of the future.*

EfficientEfficient

AccommodatingAccommodating

MotivatingMotivating

OpportunisticOpportunistic

QualityQuality--focusedfocused

ResilientResilient

““GreenGreen””

IntelligentIntelligent

129

The Smart Grid Promise (Cont’d)The Smart Grid Promise (Cont’d)Several hurdles must be overcome to reach this future.

Technology— Many of the technologies needed to reach the full promise of the Smart Grid are only in the early

stages of development or are not yet commercialized

Policy— The FERC has issued a preliminary policy, but various stakeholders need to weigh in — States’ utility commissions will make the decisions about what is appropriate at the retail level

Interconnectivity and standardization— Various devices and protocols are currently being developed; ensuring interoperability across

devices will be key

Rate recovery— Depending on the type of entity, FERC, state regulators, or both will determine the degree to

which investments in Smart Grid technologies are recoverable

Technology is not a panacea for aging infrastructure (i.e., the Smart Grid does not replace the “real grid”)

The real grid is the hard assets that make up the traditional infrastructure (i.e., wires, substations).

The Smart Grid is the application of advanced technologies that enhance the operation of the real grid

The ITC ApproachThe ITC Approach

131

ITC Smart Grid StrategyITC Smart Grid Strategy

The ITC strategy is to continue to actively invest in new technology such that it:

Adds value for our investors and our customers – ensure the business case makes sense—benefits outweigh the costs and assets are used and useful

Improves reliability of our service – upgrade transmission assets with more effective monitoring and control technology

Retains flexibility for the future – retain maximum degrees of freedom—technologies employed are flexible enough to accommodate innovation over time

Enables a smarter future – deploy Smart Grid alternatives in transmission to serve as an enabler for generation and distribution Smart Grid applications

Smart Grid is What We Do

132

Three fundamental areas that ITC views as aligned with Smart Grid for transmission today:

1. Communications Network: a robust communication network is fundamental to Smart Grid deploymentSystem requires a secure broadband logical network

2. Real-time Monitoring and Control: Sensors and intelligent devices enhance real-time observation and rapid analysis and response to system disturbances

Substation security enhancements Transmission asset health monitoring

3. Event Analysis: Enhanced monitoring and data analytics provide robust analysis of system eventsAdvanced system fault monitoringData analysisGPS time-stamped data

Fundamental Areas for ImplementationFundamental Areas for Implementation

Enhanced event analysis— Accurate response to events— Identification of corrective actions

Increased reliability— Fewer interruptions to business— Improved customer satisfaction

Customers benefit; the use of select Smart Grid technologies provides ITC customers with

133

Transmission Smart GridTransmission Smart GridWidely distributed assets via a digital, private, broadband communication network.

Engineering

OperationsControlRoom

SUBSTATION (typ.)NOVI HEADQUARTERS

NetworkCommunication

FaultEvent

Recorder

Transformer

Asset Health Monitoring

System (i.e. T-Medic) Breaker

LocalNetwork

SCADAData

Signals

Dispatch Work Crew

Eng’gDataSignals

ControlSignal

GPS TimeSynch Data

ControlSignal

Time Stamped SCADA Data

Eng’gDataSignal

IntelligentRelayDevice

Relay Trip Signal

Communications NetworkCommunications Network

135

Communications Network –IntroductionCommunications Network –IntroductionA robust telecom network is required to support the increased data transmission needs of Smart Grid technologies

Communication System:— Today, communications is provided over a variety of technologies

Microwave, radio and analog phone linesThese are low speed, non-networked point-to-point lines

Ideal Network and Communication Features:— An IP-based, networked communications for speed, bandwidth, reliability, and

security— Open-industry protocols and standards provide the fundamental building blocks for

interoperabilityCybersecurity:— The network bandwidth and reliability enable cyber and physical security features at

substations that were not possible with the previous telecom infrastructure

Communications is critical for understanding system status and responding quickly to system disturbances

136

Network Features and CybersecurityNetwork Features and Cybersecurity•

The network provides redundancy with no single point of failureUses off-the-shelf hardware that can be scaled or upgraded as technology advances

Schematic representation of a logical communication network; packets of data can be routed through many potential paths ensuring reliability as well as mitigation of network congestion

OCRTMS

RouterMARS

Novi SONET Ring

AT&T 

FRAME RELAY      NETWORK / AVPN

Substation(typical)

Router

RTU

OCRTMS

RouterMARS

Substation(typical)

RTU

Ann Arbor SONET Ring

Conceptualization of layers of security on

ITC data traffic

Cybersecurity is achieved at the ends

System fully meets FERC cybersecurity standards

State of the art technology is employed to centrally monitor substations, providing detection and mitigation of cyber-threats

Real Time Monitoring and ControlReal Time Monitoring and Control

138

Real-Time Monitoring and Control –IntroductionReal-Time Monitoring and Control –IntroductionSmart Grid technologies provide enhanced monitoring and control capabilities

Real-Time Monitoring and Control:— A system based on information technology has been developed to monitor and

control equipment in the field from a central locationGrid Intelligence:— Data are provided in real time to the Operations Control Room (OCR), enabling

Transmission System Coordinators (TSC) to see what is happening on the grid— Applications provide graphical representations of system conditions— Analysis programs constantly search for potential overloads and voltage issuesCritical Equipment Monitoring:— Intelligent electronic devices (IEDs) are capable of self-diagnosis— Provides real-time data on the status (i.e., temperature, oil analysis, etc.) of key

pieces of equipment — Analysis programs process the collected data to trend changes and anomalies

that may indicate problems in specific pieces of equipment

Real-time monitoring is at the very core of operating a Transmission system

139

Grid IntelligenceGrid IntelligenceField intelligence enhances system operations

New/enhanced remote terminal units (RTUs) and intelligent electronic devices (IEDs) provide SCADA data to the Transmission Management System (TMS)

Dynamic displays improve trackingDisplays are configured to provide Transmission System Coordinators (TSCs) with information related to system integrity with regard to established operating limits

Advanced tools help mitigate instability and secure system integrity

State Estimator — Approximates system status— Runs once per minute – leading in the

industryContingency Analysis — Tests system integrity by simulating failure

of individual grid components— Provides results of contingencies and their

impact, in order of severity for both voltage and thermal limits

These analytical tools alert TSCs to system instabilities that might otherwise go unobserved

140

Critical Equipment MonitoringCritical Equipment Monitoring

Relays and other IEDs are utilized in the field— Where once only general status alarms

were provided to Transmission System Coordinators, IEDs allow intelligence to be distributed beyond the Control Room and RTU and into the device itself

— IEDs are able to self diagnose their condition and report back to the Control Room, virtually eliminating the need for field calibration and inspection to ensure the device will operate reliably when needed

The Transformer Monitoring Project (T-Medic) provides protection for transformers by analyzing system conditions and sending alerts to ITC subject-matter experts for further analysis— Dissolved gas in oil analysis— Power factor bushing monitor— Full range of temperature monitoring— Current monitoring of fans and pumps— Active cooling control as primary control

system— Traditional fan and pump (as back-up)

Intelligent electronic devices (IEDs) and online monitoring of equipment make it possible to take preventive measures based on changes in key indicators.

Event AnalysisEvent Analysis

142

Event AnalysisEvent Analysis

Digital support for event analysis:— With deployment of a networked communication platform, devices in the

substations now have IP addresses and are accessible via the network enabling faster, more accurate, and more reliable analysis

— RTUs are supplemented by microprocessor relays with digital fault recording capabilities

— GPS clocks in its substations to provide a common time stamp that enables sequence of events analysis across multiple locations on the grid

Analytics capability:— In order to realize the full benefits of ITC’s Smart Grid investments, the

organization’s analytics capabilities needed to evolve

In addition to enhanced real-time monitoring and control, Smart Grid technologies facilitate analysis of system events after they take place.

143

Smart Grid Means a New Way of WorkingSmart Grid Means a New Way of Working

ITC continues to develop complementary organizational capabilities.

The use of Smart Grid technologies requires skill sets not traditionally found in electric utilities— An understanding of telecom networks— The ability to use advanced data analysis tools

These capabilities enable ITC to— Accurately and reliably collect data— Make decisions quickly and with confidence— Send the right people with the right tools to the right location

Smart Grid technologies have implications for the work force— Utility engineers are now required to understand the complex analysis tools and

networks that have evolved over the past 20 years— As the utility workforce ages, the need for these skills presents an opportunity to

attract and retain new engineering graduates interested in the advanced applications being implemented

— The focus on cyber security, common protocols, and interconnectivity across systems will only increase these requirements in the years to come

ConclusionConclusion

145

In SummaryIn Summary

ITC and the transmission system in general have been early adaptors of Smart Grid

Network communications capability is key to the deployment of Smart Grid technologies

ITC will continue to upgrade the transmission system with appropriate Smart Grid technologies as their value to the operation of the grid is proven

This approach ensures that ITC will retain interoperability with various Smart Grid applications as they are deployed

There is a place for Smart Grid concepts, but it will not replace needed investments and upgrades in the “Real Grid”

The benefit for ITC customers is a more robust and reliable grid with fewer service interruptions and faster

restoration when they do occur

146

THANK YOU for YOUR DAY!!!!!THANK YOU for YOUR DAY!!!!!

ITC Midwest Appreciates your time and effort to participate with today’s Partners in Business meeting:

Please take a few minutes to complete our evaluation to help us meet your expectations next year!!!!!!

For copies of today’s ITC presentations please visit our Oasis web-site at: http://oasis.midwestiso.org/oasis/ITCM

Mike Dabney Keith Eylermdabney@itctransco.com keyler@itctransco.com

www.itctransco.com

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