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2011-01-13 SPP Filing of 2010 STEP 07 BEFORE THE NEW MEXICO PUBLIC REGULATION COMMISSION IN THE MATTER OF AN INVESTIGATION ) INTO THE PRUDENCE OF SOUTHWESTERN ) PUBLIC SERVICE COMPANY’S ) PARTICIPATION IN THE SOUTHWEST ) POWER POOL REGIONAL TRANSMISSION ) Case No. 07-00390-UT ORGANIZATION ) ) SOUTHWESTERN PUBLIC SERVICE COMPANY, ) ) Respondent. ) SOUTHWEST POWER POOL INC.’S FILING OF THE 2010 SPP TRANSMISSION EXPANSION PLAN REPORT IN ACCORDANCE WITH SECTION 15 OF THE UNCONTESTED STIPULATION Southwest Power Pool, Inc. (“SPP”), by and through its attorneys, hereby submits a draft of the 2010 SPP Transmission Expansion Plan Report (“STEP Report”), dated January 4, 2011, in accordance with Section 15 of the Uncontested Stipulation (“Stipulation”), dated September 17, 2009 and approved by Final Order Approving Certification of Stipulation issued by the New Mexico Public Regulation Commission (“Commission”) on February 2, 2010. In support thereof, SPP states as follows: 1. Section 15 of the Stipulation requires that “[p]rior to SPP’s Board of Directors’ consideration and vote on SPP’s annual Transmission Expansion Plan (STEP), any Balanced Portfolio proposals or any other similar regional multi-project transmission proposal, SPP will provide the transmission plans to the Commission or its Staff and, upon request, will meet either in person or via teleconference with the Commission or its Staff and other interested parties to discuss the plans.” 2. The STEP Report summarizes 2010 activities that impact future development of the SPP transmission grid. Seven distinct areas of transmission planning are discussed in this report, each of which are critical to meeting mandates of either the 2010 SPP Strategic Plan or the nine planning principles in FERC Order 890. 3. A draft of the STEP Report in the form presented and discussed at the Markets and Operations Policy Committee (“MOPC”) meeting on January 11, 2011, is attached hereto as Exhibit A and may be accessed on SPP’s website within the MOPC Agenda and Background Materials posted at: http://www.spp.org/section.asp?group=321&pageID=27. 4. The SPP Board of Directors (“SPP Board”) is scheduled to meet on January 25, 2011, and SPP anticipates that the SPP Board will consider and vote on the STEP Report at that time. The final version of the STEP Report to be considered by the SPP Board will be included with the SPP Board meeting materials, which will be posted approximately a week in advance of the January 25, 2010 SPP Board meeting on SPP’s website at: http://www.spp.org/section.asp?group=113&pageID=27. Respectfully submitted, ATTORNEY FOR SOUTHWEST POWER POOL, INC. KANTER & GRUBESIC, P.A. John T.L. Grubesic Post Office Box 25483 Albuquerque, New Mexico 87125-0483 (505) 247-1541 Page 2 of 6 Exhibit A 2010 SPP Transmission Expansion Plan Draft Report January 4, 2011 Page 3 of 6 2010 SPP T E P A Report of the SPP Regional Transmission Organization Table of Contents 1. Executive Summary .......................................................................................................................................... 2 1.1 What is the 2010 SPP Transmission Expansion Plan? .............................................................................. 2 1.2 Summary of 2011-2021 Network Upgrades ................................................................................................ 4 2. Integrated Transmission Planning ................................................................................................................ 10 2.1 Priority Projects ......................................................................................................................................... 10 2.2 Integrated Transmission Plan ....................................................................................................................10 3. RTO Regional Reliability Assessment 2011 – 2021 ..................................................................................... 12 3.1 RTO Regional Reliability Assessment 2011 – 2021 Scope ...................................................................... 13 3.2 Load Forecast ............................................................................................................................................ 17 3.3 Stakeholder Process and Forums ............................................................................................................. 21 3.4 RTO Regional Reliability Results .............................................................................................................. 22 3.5 Loss of Load Expectation Analysis............................................................................................................ 30 4. Tariff Studies ................................................................................................................................................... 33 4.1 Transmission Service 2010 Overview ....................................................................................................... 33 4.2 Generation Interconnection 2010 Overview .............................................................................................. 33 4.3 Area Generation Connection Task Force 2010 Overview ........................................................................34 4.4 Tariff Attachments AQ and AR .................................................................................................................. 34 5. Sub-regional (Local Area) Planning .............................................................................................................. 37 5.1 Stakeholders Process and Forums ........................................................................................................... 37 5.2 2010 Sub-regional Meetings ..................................................................................................................... 38 5.3 2010 SPP Exxon-Mobil and TransCanada Load Study ............................................................................ 39 6. 2010 Transmission Congestion and Top Flowgates ................................................................................... 41 6.1 SPP 2010 Transmission Congestion......................................................................................................... 41 6.2 SPP Top Ten Flowgates ........................................................................................................................... 42 7. Interregional Coordination ............................................................................................................................. 54 7.1 SPP RTO and Entergy ICT ....................................................................................................................... 54 7.2 AECI Interaction ........................................................................................................................................ 55 7.3 ITP Interaction ........................................................................................................................................... 57 7.4 MISO Cross Border Study Interaction ....................................................................................................... 57 7.5 WAPA- Basin Electric Interaction .............................................................................................................. 57 7.6 Eastern Interconnection Planning Collaborative ....................................................................................... 58 8. Project Tracking .............................................................................................................................................. 60 8.1 NTC Letters Issued in 2010 .......................................................................................................................60 8.2 Projects Completed in 2010 ...................................................................................................................... 60 Appendix A: Complete List of Network Upgrades Appendix B: Reliability Network Upgrades Recommended for Notification to Construct Appendix C: Network Upgrade Diagrams Appendix D: AECI-SPP JCSP Network Upgrades Priority Projects and Integrated Transmission Planning 1 1. Executive Summary 1.1 What is the 2010 SPP Transmission Expansion Plan? The 2010 Southwest Power Pool, Inc. (SPP) Transmission Expansion Plan (STEP) summarizes 2010 activities that impact future development of the SPP transmission grid. Seven distinct areas of transmission planning are discussed in this paper, each of which are critical to meeting mandates of either the 2010 SPP Strategic Plan1 or the nine planning principles in FERC Order 890. As a Regional Transmission Organization (RTO) of the Federal Energy Regulatory Commission (FERC), SPP must meet requirements of FERC and the SPP Open Access Transmission Tariff (OATT or Tariff). 1. Regional reliability assessment (2011-2021): This assessment, which was developed with extensive stakeholder review and input, identifies foundational reliability projects needed in the next ten years for the SPP region, and finds upgrades to address possible problems in both normal and contingency conditions. The assessment identifies approximately $2 billion in reliability projects, a reduction of approximately $700 million from 2009 reliability project totals. All upgrades included in the 2010 STEP total $5.1 billion. Projects included for the 10-year window are those needed for local and regional reliability, the Balanced Portfolio (approved in
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