CAPX2050 Transmission Vision Study Overview Webinar

Hosted by the MRO RAC July 14, 2020 MRO Advisory Council Structure

MRO Members

MRO Board of Directors

President and Board CEO Committees

Governance and Personnel Organizational Group Finance and Audit MRO Staff Committee Oversight Committee Committee

CMEP Advisory Security Advisory Reliability Council Council Advisory Council

Security Advisory NERC Standards Council Threat Special Protection System Review Forum Forum Working Group

Subject Matter Expert Subgroup Teams

2 What is the Reliability Advisory Council?

The MRO Reliability Advisory Council was established to provide advice and council to the MRO Board, staff, and members on risks to the regional bulk power system, as well as increase outreach and awareness in key risk areas.

3 Reliability Advisory Council Charter

The Reliability Advisory Council Charter Key objectives and responsibilities • Identify and carry out activities that support MRO Strategic Plan. • Support the preparation of special assessments and seasonal readiness plans by regional Reliability Coordinators. • Review significant BES events in the MRO region and identify lessons learned to share more widely with industry. • Conduct outreach and awareness to increase reliability and decrease risk to the reliable and secure operations of the BES.

4 Reliability Advisory Council

Member Company Allen Klassen Westar Energy, an Evergy Company Antoine Lucas Southwest Power Pool Binod Shrestha Saskatchewan Power Corporation C.J. Brown Southwest Power Pool Dallas Rowley Oklahoma Gas and Electric Dean Schiro Northern States Power, d/b/a XCEL Energy Dick Pursley Great River Energy Dwayne Stradford American Gayle Nansel Western Area Power Administration Jason Weiers Otter Tail Power Company John Stephens City Utilities of Springfield, Missouri Durgesh Manjure MISO Nandaka Jayasekara Manitoba Hydro Nick Giffin American Transmission Company Ron Gunderson Nebraska Public Power District

5 MRO RAC Upcoming Events

PRS High Impact Misoperations Webinar July 21, 2020 MRO RAC Quarter 3 Meeting on August 25, 2020 MRO Reliability Conference on August 26, 2020 Presenters

Matt Ellis, Regional Transmission Program Manager, Great River Energy Mr. Ellis serves as co-executive director of the CapX2020 initiative, leading Great River Energy and its nine partners. Matt has been employed by Great River Energy since 2020, and worked for MISO for 13 years prior, most recently as the Director of Resource Adequacy & Coordination.

Andrew Siebenaler, Manager, Regional Transmission Planning & Analytics, Xcel Energy Mr. Siebanaler serves as co-executive director of the CapX2020 initiative as well as overseeing participation of Xcel energy’s transmission planning. Drew has been employed by Xcel since 2015, and prior to that worked as a transmission planning engineer at the Midcontinent Area Power Pool (MAPP). CapX2020 Update CapX2020 Transmission Expansion CapX2050 Transmission Vision Study Overview Dan Kline Co-Executive Director, CapX2020 Director, Strategic Transmission Initiatives, Xcel Energy

May 20, 2015 Contents

• CapX2020

• Why the CapX2050 Transmission Vision Report

• Key Takeaways

• What’s Next?

9 The CapX2020 Utilities

• Diverse group: cooperatives, municipals, investor-owned

• Many experienced developers with financial strength

• Load-serving entities

• Aligned: Committed to customer needs and affordability

• National leaders in using

• Industry leaders in reliability

10 CapX2020 Transmission Expansion 2004-2017

• CapX2020 is a joint initiative to upgrade and expand the electric grid to ensure continued reliable service for customers ― 10 utilities ― Four states • Over 800 miles of transmission completed strengthening the transmission grid ― Increased reliability ― State Renewable Energy Standards ― New generation outlet ― Regional transmission support

11 Purpose of the Report

To highlight the challenges transmission planners and operators may face as energy production evolves to rely more on non-dispatchable resources

What is discussed: 1. What will energy production on a future system look like, and can we meet customer demand in all hours of the year? 2. As existing resources are retired or replaced, what attributes of those resource need to be retained for a reliable system? 3. With increased reliance on non-synchronous resources, how does system controls and operations need to evolve?

What is not discussed: 1. Any system improvements that may mask potential issues 2. Specific projects, resource expansions or costs associated to mitigate potential issues Important Definitions

Dispatchable Resources Non-dispatchable Resources Generation resources that may be called Intermittently operating resources whose upon with short notice to meet output cannot generally be controlled immediate customer needs. Utility when operating. In particular this refers operators depend on these resources’ to wind and solar facilities without ability to ramp up or ramp down their . Due to their variability, energy output as needed by the system. real-time operators cannot depend on the desired amount of energy at a specific time.

Ancillary Services For the purposes of the report, grid attributes outside of the production and delivery of real power are collectively referred to as ‘ancillary services.’ They are the collection of attributes that support a reliable grid by helping maintain system strength, stability, and reliability.

13 Key Findings

Finding #1 Dispatchable resources support the electric grid in ways that non- dispatchable resources presently cannot and therefore, some dispatchable resources will be necessary.

I. Location, flexibility and incentives will be key to ensuring sufficient services are available when and where they are needed. II. Developing methods to break down the attributes of a reliable system into its basic building blocks will be essential to future system planning.

14 Key Findings

Finding #1

The roles of inertia and system response are prime examples of attributes that need greater consideration in long term system planning and are lost as dispatchable resources are

retired. *Credit: Thomas Overbye, Texas A&M University

15 Key Findings

Finding #2 The ability for system operators to meet real-time operational demands will be more challenging and therefore, we will need to develop new tools and operating procedures to address the challenges.

I. More reliance on non-dispatchable generation requires new and innovative methods for maintaining operational control of the grid. II. Higher penetrations of non-dispatchable resources will increase complexity of operations through greater frequency of large, intra-day swings in regional power flows.

16 Key Findings

Finding #2 The combination of increased volatility and decreased system strength lead to more complexity in system operations.

17 Key Findings

Finding #3 More transmission system infrastructure will be needed in the upper Midwest to accommodate the transition of resources.

I. A more robust transmission system can help alleviate some of the issues resulting from retirement of existing dispatchable resources. II. Additional transmission capacity accessing the best resource locations can be more cost effective than utilizing lower- quality resource locations. III. Capture weather driven diversity from remotely-sited, non- dispatchable resources.

18 Key Findings

Siting of non-dispatchable resources have generally taken advantage of the most cost effective locations.

New non-dispatchable resources will need to weigh the costs of reduced output against that of transmission expansion.

19 Key Findings

Finding #4 Non-dispatchable resources alone will be incapable of meeting all consumer energy requirements at all times and therefore, we will need to understand and promote a future electric grid that can continue to meet consumer energy requirements safely, reliably and affordably.

I. Historical market data shows multiple instances of insufficient, zero, or negative energy production for multiple consecutive hours. II. Advanced dispatchable technologies and long term energy storage will be needed to ensure the reliable delivery of energy to meet customer demand. 20 Key Findings

Simply increasing the amount of non-dispatchable resources will be insufficient to meet customer demand every hour.

21 What’s next?

This initial phase lays groundwork for more in-depth study.

• CapX2020 will continue working to incorporate these findings into planning processes and support continued efforts to ensure safe, reliable, affordable energy for any future resource mix. • Input on most beneficial role for CapX2020 is welcome! Questions?

“…identifying the critical elements necessary for continued safe, reliable and affordable electric grid operation as well as the long-term policies and procedures needed to transition to a future with more non-dispatchable generation resources.” MRO RAC Upcoming Events

PRS High Impact Misoperations Webinar July 21, 2020 MRO RAC Quarter 3 Meeting on August 25, 2020 MRO Reliability Conference on August 26, 2020