Western RenewableEnergy Zone Project

October 29, 2009

John SavageOregon Public Utility Commission

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OUTLINE

Background

Current Status

Next Steps

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Western Governors Association Initiative- Identify and map renewable resource-

rich areas

- Build transmission to ship electricity from renewable zones to load centers.

“Unprecedented challenges face the West in meeting the growing demand for electricity while achieving local and global environmental goals. The WREZ Project will help us tap our vast renewable resources and develop transmission that considers communities, environmental impacts and costs.”

Utah Governor Jon Huntsman

WGA Chairman

WREZ at a Glance

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Genesis of Project

Offshoot of Western Governors’ Clean and Diversified Energy Initiative (2006) Goal of developing 30,000 megawatts of clean energy

by 2015 Advisory committee identified lack of transmission as

key obstacle and made recommendations for reform September 2007: Western Governors’ Summit on

Transmission and Renewables identified WREZ project as a next step

December 2007: Governors submit proposal to U.S. Department of Energy Secretary Bodman to fund WREZ project

May 28 and 29, 2008: Kick-off meeting in Salt Lake City

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WREZ Phases

Phase 1 and Phase 2 Identify developable renewable energy zones

Develop renewable resource supply curves for each zone

Develop model to estimate delivered price of power from renewable energy zones to load centers

Develop conceptual transmission plans

Phase 3 and Phase 4 Foster coordinated renewable resource acquisition

Facilitate interstate transmission for renewables

WREZ Phase 1 Report

In June 2009, the Western Governors issued WREZ Phase 1 Report

Report identified 54 renewable resource hubs Sites have high quality and developable resource

Sites have at least 1,500 megawatts of renewable resource capacity within 100 miles

Hubs have the potential to generate: 95,000 megawatts of wind

87,000 megawatts of solar

17,000 megawatts if hydro, geothermal and biomass

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WREZ ‘Hubs”

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Major Transmission Proposals and

WREZ Hubs

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Transmission Planning Request

Case 1. Transmission needed to move power from preferred renewable energy zones to load centers:

▪ 10 year analysis

▪ Meet renewable portfolio standard targets throughout the west

Case 2. Transmission needed to move power from preferred zones to loads: 20 year analysis

▪ 33% Renewable Portfolio Standard Target

▪ 50% reduction in CO² emissions

Case 3. Case 1 with higher renewable resource penetration and 25 to 40 % CO² emission reductions

Case 4. Superhighway Network Overlay

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WREZ Generation and Transmission Model

WREZ Model is used to estimate the delivered price of power from a hub to a load center Model and data-base made public in June

Excel – based

User can change assumptions

Model being refined to include resource supply curves from all REZs for each load center

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Next Steps

Western Governor’s Topic B proposal to U.S. Department of Energy asked for funding to complete WREZ Phase 3 and Phase 4

Phase 3 tasks: Procure resource from hubs

Identify zones of interest to multiple utilities

Seek collaboration among those utilities and their PUCs to develop common procurement schedules for projects in preferred zones

Aim is to create a critical mass that would justify new transmission to preferred zones

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Next Steps (cont’d)

Phase 4 tasks: Facilitate coordinated siting and foster interstate discussions on cost allocation Produce and analyze case studies of transmission

siting

Develop regional response to proposed federal actions related to transmission siting

Organize regional forums on improvements in siting practices

Identify cost allocation options and facilitate a stakeholder process that leads to an interconnection-wide policy on cost allocation

Encourage cost allocation negotiations on specific projects

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