FINAL REPORT Western Planning Regions and Transmission Planning Coordination April 15, 2015 Heidi Pacini, Kiran Kumaraswamy, Ken Collison © 2015 ICF Resources, LLC. All Rights Reserved This document was produced by ICF Resources, LLC (ICF) in accordance with an agreement with the Western Interstate Energy Board (Client). Client’s use of this report is subject to the terms of that agreement. IMPORTANT NOTICE: REVIEW OR USE OF THIS REPORT BY ANY PARTY OTHER THAN THE CLIENT CONSTITUTES ACCEPTANCE OF THE FOLLOWING TERMS. Read these terms carefully. They constitute a binding agreement between you and ICF Resources, LLC (“ICF”). By your review or use of the report, you hereby agree to the following terms. This report and information and statements herein are based in whole or in part on information obtained from various sources. ICF makes no assurances as to the accuracy of any such information or any conclusions based thereon. 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The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof." 2 Table of Contents Table of Contents Executive Summary ....................................................................................................................................... 7 Introduction: Transmission Planning History and Evolution ...................................................................... 13 Transmission Planning in the Western Interconnection ......................................................................... 14 Report Outline ........................................................................................................................................ 16 Chapter 1: WestConnect ............................................................................................................................. 18 1.1 Regional Transmission Planning ........................................................................................................ 18 1.1.1 Planning Footprint ..................................................................................................................... 18 1.1.2 Order 890 Annual Ten-Year Transmission Plan ......................................................................... 20 1.2 WestConnect Order 1000 Regional Planning .................................................................................... 21 1.2.1 Planning Management Committee Structure ............................................................................ 22 1.2.2 PMC Membership Sectors.......................................................................................................... 23 1.2.3 Funding for Regional Planning Activities.................................................................................... 24 1.2.4 Order 1000 Regional Planning Process Overview ...................................................................... 25 1.2.5 Sources of Planning Data and Assumptions ............................................................................... 26 1.2.6 Scenario Analysis ........................................................................................................................ 28 1.2.7 Consideration of Public Policies ................................................................................................. 28 1.2.8 Project Submittal and Evaluation Process ................................................................................. 29 1.2.8 WestConnect 2015 Study Plan ................................................................................................... 30 1.2.9 WestConnect SPG Activities ....................................................................................................... 32 1.3 Planning Coordination ...................................................................................................................... 33 1.4 Stakeholder Process .......................................................................................................................... 33 Links to Key Documents .......................................................................................................................... 34 Chapter 2: Northern Tier Transmission Group ........................................................................................... 35 2.1 Planning Footprint ............................................................................................................................ 35 2.2 Standing Committees and Membership ........................................................................................... 36 2.2.1 Steering Committee ................................................................................................................... 37 2.2.2 Planning Committee................................................................................................................... 37 2.2.3 Cost Allocation Committee ........................................................................................................ 38 3 Table of Contents 2.2.4 Transmission Use Committee .................................................................................................... 38 2.3 Funding for Regional Planning Activities .......................................................................................... 40 2.4 Order 890 Regional Transmission Planning ...................................................................................... 40 2.5 NTTG Order 1000 Regional Transmission Planning .......................................................................... 41 2.5.1 Planning Process Overview ........................................................................................................ 41 2.5.2 Sources of Planning Data and Assumptions ............................................................................... 42 2.5.3 Initial Regional Transmission Plan .............................................................................................. 43 2.5.4 Project Submittals ...................................................................................................................... 43 2.5.5 Regional Plan Analysis ................................................................................................................ 44 2.5.6 2014-2015 Biennial Planning Cycle ............................................................................................ 46 2.6 Planning Coordination ...................................................................................................................... 48 2.7 Stakeholder Process .......................................................................................................................... 49 2.8 Links to Key Documents .................................................................................................................... 49 Chapter 3: California Independent System Operator ................................................................................. 50 3.1 Planning Footprint ............................................................................................................................ 51 3.2 Governance and Funding .................................................................................................................. 53 3.3 Regional Transmission Planning ........................................................................................................ 53 3.4 CAISO Order 1000 Regional Transmission Planning ......................................................................... 54 3.4.1 Planning Process Overview ........................................................................................................ 55 3.4.2 Sources of Planning Data and Assumptions ............................................................................... 57 3.4.3 Transmission Plan Analysis ........................................................................................................ 57 3.4.4 Request Window ........................................................................................................................ 62 3.4.5 Selecting Transmission Solutions for Inclusion in the Transmission Plan .................................. 62 3.4.6 Draft 2015-2016