FERC 890 1 st Quarter Stakeholder Meeting for

FERC 890 1 st Quarter Stakeholder Meeting for Transmission Planning Denver, CO March 6, 2009 8: 30 a. m. – 11: 30 a. m. 1

WELCOME 2

PSCo Planning Process 3

Planning Process A. Calendar B. Methodology / Criterion C. Reporting D. Regulatory Interaction A. Colorado Rule 3206 B. CPCN’s with Colorado PUC 4

Planning Calendar 2009 Jan Feb Mar Apr 5 year capital budget studies May Jun Jul Aug Sep Oct 5 year budget approved Nov Dec 10 year plan completed SB 100 Biannual Filing SB 100 Studies SB 100, CPCN Filing CCPG Long Range Resource Plan West. Connect Generation Interconnect , Load Interconnect & Transmission Service Studies FERC 890 3/6/09 FERC 890 12/10/09 CCPG 8/19/098/20/09 CCPG 4/23/09 West. Connect Annual Meeting 1/14/09 CCPG 12/16/09 West. Connect Annual Stakeholder Meeting 8/20/09 5

Transmission Map 6

Planning Study Process Ø Ø Prepare Study Models Ø Utilize PSCo Base Case Preparation Process Ø Determine Appropriate WECC Base Cases as basis for Study Ø Verify Study Years, System Conditions, Demand Levels are appropriate Model projected transfers Ø Model appropriate regional loading Ø Include existing and planned facilities Ø Include Reactive Power resources as appropriate Studies Ø Ø Methodology Ø Ø Ø Include effects of existing and planned protective systems as appropriate Include effects of existing and planned control devices including load tap changers, switched shunt devices, and generation control as appropriate Include planned or maintenance outages of equipment Assess performance to meet TPL-001 (N-1) and TPL-002 (N-1) requirements Assess performance to meet TPL-003 (N-2) and TPL-004 (exploratory) as appropriate Develop Recommendations for System Upgrades 7

Methodology Ø Analyses Ø Powerflow (Static) Ø Dynamic (Transient and Voltage Stability) Ø Software Ø GE PSLF Ø Siemens/PTI PSS/E Ø Conditions Ø System Intact (N-0) Ø Single Contingencies (N-1) of All Regional Elements Ø Select N-2 Contingencies Ø Loading Ø Recent Load Forecasts Ø Generally Peak Summer Ø Sensitivities with Peak Winter and Lighter Loading 8

Methodology - Criteria Ø NERC Standards Ø Ø Table 1 TPL-001, 002, 003, 004 Ø TPL – (001 thru 004) – WECC – 1 – CR ─ System Performance Criteria Ø(Formerly NERC/WECC Criteria) Ø WECC Disturbance-Performance Table of Allowable Effects on Other Systems ØOther 9

Reporting – Annual 2009 Self Certification Forms NERC/WECC January Colorado Long Range Planning Group (10 year plan) CCPG January Study Program Survey WECC February Annual Progress Report WECC March 1 FERC 715 WECC/FERC March 10 State of the Interconnected System WECC April Rule 3206 CPUC April 30 Voltage Stability Summary WECC December CCPG (Voltage Coordination guidelines) CCPG December 10

Reporting - Postings Ø Tariff Studies Øhttp: //www. rmao. com/wtpp/PSCO_Studies. html Ø FERC 890 Information Øhttp: //www. oatioasis. com/psco/index. html Ø SB 07 -100 Øhttp: //www. rmao. com/wtpp/SB 100. html Ø High Plains Express Øhttp: //www. rmao. com/wtpp/HPX_Studies. html ØWest. Connect Øhttp: //www. westconnect. com/ Ø 11

FERC 890 Attachment R Update 12

2008 Filing Ø Responded October 15, 2008 Ø Full Filing: http: //www. xcelenergy. com/Site. Collection. Documents/docs/Xcel. Order 890 -Comp-Filing-Revision 1. pdf Ø Other Information on OASIS: Ø http: //www. oatioasis. com/psco/index. html, under FERC 890 Ø Including: Ø Contacts: } http: //www. oatioasis. com/PSCOdocs/PSCo_Att_R_Points_of_Contact 10172008. pdf Ø Hyperlink List: } http: //www. oatioasis. com/PSCOdocs/PSCo_Att_R_Hyperlinks 10172008. pdf Ø Attachment R (K) only: } http: //www. oatioasis. com/PSCOdocs/PSCo_Attachment_R_101508. pdf Ø Meeting Notices and Materials 13

PSCo 2008 -2009 studies 14

Transmission Planning Studies A. Near Term (Capital Budget) Studies B. Tariff Studies C. Senate Bill 07 -100 D. High Plains Express E. 10 -Year Plan 15

Annual Capital Budget Assessment Ø Conducted annually Ø Project recommendations developed from transmission reliability studies. Ø Generally divided into regions: Ø Denver/Boulder Ø Foothills Ø Western Colorado Ø Front Range (I-25 Corridor) 16

Planned Project Status ( 5 year plan) A. Comanche - Daniels Park 345 k. V Transmission B. C. D. E. Project Chambers 230/115 k. V Transmission intertie Project Sandown - Leetsdale 115 k. V Project Midway - Waterton 345 k. V Transmission Project Niwot / Gunbarrel 230 k. V Underground Line 17

Comanche - Daniels Park 345 k. V Transmission Project Sponsor PSCo Description 125 miles of double-circuit 345 k. V transmission line from the Comanche Substation, near Pueblo, CO, to the Daniels Park Substation, south of Denver, CO. Purpose Accommodate 750 MW of generation at the Comanche Station Schedule 2009 18

Comanche - Daniels Park 345 k. V Project Marcy Waterton Daniels Park Castle Rock Comanche – Daniels Park 345 k. V Project: Rebuild existing 230 k. V line to double - circuit 345 k. V capable transmission between Midway and Daniels Park. Both circuits operated at 230 k. V To Tarryall Palmer Lake Monument Kettle Creek Comanche – Daniels Park 345 k. V Project: 125 miles of 345 k. V double- circuit Transmission Line between Daniels Park and Comanche Fuller Cottonwood CSU Canon West RDNixon Midway Fountain Valley Portland West Station Aquila Hyde Park Airport Pueblo Boone LEGEND Burnt Mill Reader 115 k. V 230 k. V Lamar Comanche 345 k. V Substation Generation Unit 3: 750 MW ISD: May 2010 19

Chambers 230/115 k. V Transmission Intertie Project Sponsor PSCo Description A new Chambers Substation consisting of a 230/115 k. V transformer. Four miles of new 230 k. V double-circuit overhead transmission line interconnecting Tower, Chambers and Picadilly. One mile of 115 k. V transmission line interconnecting Havana, Chambers and Fitzsimmons Purpose Accommodates new generation added to the northeast Colorado area in the recent years. Links the outer 230 k. V transmission belt in the northeast metro vicinity to the 115 network Schedule 2010 20

Chambers 230/115 k. V Transmission Intertie Project 4 miles of doubel-circuit 230 k. V Transmission connecting Tower, Chambers and Picadilly 1 mile 115 k. V Transmission line Connecting Havana, Chambers and Fitzsimmons Chambers 230/115 k. V Transmission Intertie Project: A new Chambers substation, 230/115 k. V transformation interconnecting the outer 230 Transmission k. V to the 115 k. V network 21

Sandown - Leetsdale 115 k. V Transmission Project Sponsor PSCo Description 5 miles of new 115 k. V transmission between the existing Sandown and Leetsdale substations in Denver, CO Purpose Provides additional transmission to alleviate loading on the Denver-metro area transmission Schedule 2009 22

Sandown - Leetsdale 115 k. V Transmission Project 23

Midway - Waterton 345 k. V Transmission Project Sponsor PSCo Description 82 miles of 345 k. V transmission line between the Midway Substation, near Colorado Springs and the Waterton Substation, southwest of the Denver metro area Purpose Proposed in accordance with Senate Bill 07 -100 to facilitate potential generation resources in Energy Resource Zones 3, 4 and 5. Alleviates potential overloads on the Colorado Springs Utilities network Schedule 2011 24

Midway - Waterton 345 k. V Transmission Project Midway – Waterton 345 k. V Project: Add 345/230 k. V autotransformer and replace both 230/115 k. V autotransformers at Waterton Marcy Waterton Daniels Park To Tarryall Comanche – Daniels Park 345 k. V Project: Operated at 345 k. V. Midway – Waterton 345 k. V Project: Rebuild existing 230 k. V line to double-circuit 345 k. V-capable transmission between Daniels Park and Waterton. South circuit operates at 345 k. V. North circuit operates at 230 k. V. Fuller Midway – Waterton 345 k. V Project: Operate eastern circuit of double-circuit transmission at 345 k. V. Western circuit remains operated at 230 k. V. Midway – Waterton 345 k. V Project: Add 345/230 k. V autotransformer at Midway Boone Generation 230 k. V 345 k. V Comanche Generation Substation 25

Niwot / Gunbarrel 230 k. V Underground Line Sponsor PSCo Description Construct 2. 3 miles of 230 k. V Underground transmission line between the Niwot and Gunbarrel Substations. Install a new 230/13. 8 k. V transformer at Gunbarrel Substation Purpose Provide an additional delivery point for IBM load Schedule 2011 26

Niwot/Gunbarrel 230 k. V Underground Line New 230/13. 8 k. V Transformer Gunbarrel 13. 8 k. V Bus 230/13. 8 k. V Niwot 230 k. V Bus 13. 8 k. V Bus Existing system New 230 k. V Undergroun Line 230 k. V Bus 230/13. 8 k. V New 230/13. 8 k. V Transformer Existing 230 k. V Underground Line Leggett 230 k. V Niwot/Gunbarrel 230 k. V Underground Line Project: New 2. 3 miles of 230 k. V Line from Gunbarrel to Niwot Isabelle 230 k. V 27

FERC Generation Interconnection Process 28

Generation Interconnection Process FERC Orders 2003 and 2006 Ø Order 2003 for Large Generators Ø Greater than 20 MW Ø Large Generator Interconnection Process (LGIP) Ø Large Generator Interconnection Agent (LGIA) Ø Applies to all generation technologies Ø Order 2006 for Small Generators Ø Less than or equal to 20 MW Ø Small Generator Interconnection Process (SGIP) Ø Small Generator Interconnection Agent (SGIA) Ø Applies to all generation technologies 29

LGI Process Ø Feasibility Study Ø Ø Ø System Impact Study Ø Ø Ø $10, 000 deposit Preliminary determination of interconnection and delivery facilities Study Cost based on actual costs Feasibility schedule: 6 -9 months $50, 000 deposit Proof of Site Control required Transient stability of system is studied Study Cost based on actual costs SIS schedule: 9 -12 months Facilities Study Ø Ø Ø $100, 000 deposit Detailed engineering design and cost estimates Study cost based on actual costs Facilities Schedule: 2 -4 months Study results become the basis for the LGIA 30

Generation Interconnection Process PSCo Interconnection Queue Total Requests since 2003: Total MW: Requests by Generation Type: Ø Wind: Ø Solar Ø Coal: Ø Gas: Ø Biomass: 81 23, 970 52 10 6 12 1 31

Active FERC Generation Interconnection Studies (2006 -2009) Ø Arapahoe – 587 MW Ø Boone – 500 MW Wind Ø Fort St. Vrain – 300 MW Wind; 256 MW Combined Cycle Ø Green Valley – 400 MW Wind Ø Hartsel – 100 MW Solar Ø Walsenburg – 300 MW Wind Ø Comanche – 700 MW Wind Ø Keensburg – 250 MW Wind Ø Ault – 1600 MW Wind Ø Jackson Fuller – 601 MW Wind Ø Missile Site – 800 MW Wind; 270 MW Gas Ø Lamar – 2686 MW Wind Ø San Luis Valley – 150 MW Wind; 1730 MW Solar Ø Pawnee – 1170 MW Combined Cycle; 2820 MW Wind 32

Senate Bill 07– 100 Projects 33

Senate Bill 07 -100 Ø Upon recommendations by the 2006 Transmission Task Force on Reliable Electricity Infrastructure, the Sixty Sixth General Assembly passed Senate Bill 07 -100. Under SB 07 -100, PSCo must meet the following requirements: Ø Designate “Energy Resource Zones (ERZ)” Ø Develop plans for the construction or expansion of transmission facilities necessary to deliver electric power consistent with the timing of the development of beneficial energy resources located in or near such zones Ø Consider how transmission can be provided to encourage local ownership of renewable energy facilities Ø Submit proposed plans, designations, and applications for certificates of public convenience and necessity to the commission for simultaneous review 34

SB-100 Overall Transmission Plan Ault Ø 230 k. V Zone 1 345 k. V Pawnee Ø Cherokee Missile Site Daniels Park Smoky Hill Zone 2 Comanche Zone 4 Lamar Zone 3 Zone 5 Calumet Vilas 35

Proposed Senate Bill 100 Projects 36

Proposed SB 07 -100 Projects A. B. C. D. E. F. G. Pawnee – Smoky Hill 345 k. V Transmission Project San Luis – Calumet – Comanche 230/345 k. V Line Missile Site 345 k. V Switching Station Lamar – Front Range 345 k. V Transmission Project Pawnee – Daniels Park 345 k. V Line Ault – Cherokee 230 k. V Line Addition Lamar – Vilas 230/345 k. V Line 37

Pawnee - Smoky Hill 345 k. V Transmission Project Sponsor PSCo Description Build approximately 95 miles of 345 k. V transmission line from the Pawnee Substation to the Smoky Hill Substation Purpose Accommodates 500 MW of potential resource additions near Pawnee. Complies with Colorado Senate Bill 07 -100 requirements by achieving transmission access to Energy Resource Zone 1 Schedule 2013 Status CPCN approved by CPUC February 2009 38

San Luis - Calumet - Comanche 230/345 k. V Line Sponsor PSCo Description Build 95 miles of double-circuit 230 k. V transmission line from the San Luis Valley Substation to a new Calumet Substation, near Walsenburg, Colorado. From the Calumet Substation, construct 45 miles of double-circuit 345 k. V transmission line to the Comanche Substation. Joint project between PSCo and TSG&T Purpose • Accommodates interconnection of 600 -1000 MW of resources at or near the San Luis Valley Substation and/or the Calumet Substation • Long term solution for Energy Resource Zones 4 & 5 Schedule 2013 39

Missile Site 345 k. V Switching Station Sponsor PSCo Description A new 345 k. V switching station near Deer Trail, Colorado Purpose • Complies with Senate Bill 07 -100 as an injection point for potential energy resources in Energy Resource Zone 2 • Accommodates up to 200 -500 MW of new generation resources by intersecting the Pawnee - Smoky Hill 345 k. V transmission line 40

Lamar - Front Range 345 k. V Transmission Project Sponsor PSCo Description Construct 120 miles of 345 k. V transmission line from the Lamar Substation to the Comanche Substation, and 210 miles of 345 k. V transmission line from the Lamar Substation to the Missile Site Substation Purpose • A Colorado Senate Bill 07 -100 project designed to transport wind generation from the Baca County (Energy Zone 3) to the Denver Metro Area • Provides transfer capability of 800 – 1000 MW 41

Pawnee - Daniels Park 345 k. V Line Sponsor PSCo Description Build a 345 k. V transmission line from the Pawnee Substation to the Daniels Park Substation Purpose • Complies with SB 07 -100 to facilitate potential generation resources in Energy Zones 1 and 2 • Accommodates 300 -500 MW of resources interconnecting at or near the Pawnee Substation and/or the Missile Site Substation 42

Ault - Cherokee 230 k. V Line Addition Sponsor PSCo Description 85 miles of 230 k. V transmission line from the Ault Substation to the Cherokee Substation Purpose • Comply with the Colorado Senate Bill 07 -100 • Accommodates 300 – 600 MW of potential energy resources from Energy Resource Zone 1 • Increases TOT 7 transfer capability 43

Lamar - Vilas 230/345 k. V Line Sponsor PSCo Description 57 miles of 345/230 k. V transmission line) from PSCo’s Lamar Substation to Tri State Generation and Transmission Association’s Vilas Substation Purpose A Senate Bill 100 project designed to transport wind generation from Energy Resource Zone 3 44

Senate Bill 07 -100 Schedule Ø 2008 – 2009 Process Ø March 4, 2008: Kickoff Meeting Ø April – July 2008: Transmission Study Groups Ø November 24, 2008: Submit Transmission Plans Ø December 2008: Commission Workshop Ø February 27, 2009. CPCN approved for Pawnee to Smoky 345 k. V Ø 2009 CPCN Applications Ø October 31, 2009: Submit Biennial plan Ø http: //www. rmao. com/wtpp/SB 100. html 45

High Plains Express project 46

High Plains Express Initiative ØTwo 1, 280 mile long, 500 k. V, AC lines through WY, CO, NM, and AZ Ø 3, 500 – 4, 000 MW of transmission capacity ØCost approximately $5. 13 billion ØUtilizes Transmission Lines Proposed in the HPX Initiative 47

HPX Status ØMOU for Stage 2 Executed ØOrganizational Structure Defined ØExecutive Committee ØWork Groups: Commercial, Siting, Technical, Communication ØStage 2 Scheduled Completion in 2010 48

10 -Year Plan 5 Year Capital Budget for Transmission Asset Management FERC - Generation Interconnection Studies SB -100 Transmission Plans to Energy Resource Zones 10 Year Colorado Long Range Planning Group (CLRPG) Studies • High Plains Express (HPX) Initiative • Westconnect 10 year Plan Posted ( February 2009) • PSCo internal 10 year Plan will be posted April 2009 • • 49

Stakeholder Opportunity for comment into study scope for 10 year assessment 50

Regional (WECC) Update 51

Regional (WECC) Ø Planning Coordination Committee Ø Focus on Reliability Ø Technical Studies Subcommittee Ø System Review Work Group Ø Transmission Expansion Planning Policy Committee Ø Focus on Economic Assessments 52

53

Sub regional Update 54

CCPG ØForum for joint transmission planning ØRecognized WECC Sub-Region ØThree Open Meetings/Year ØApril, August, December (Joint with SWAT/Sierra) ØDenver TSGT Offices ØMultiple Subcommittee and Work Group meetings throughout the year ØOpen to All Interested Stakeholders ØMeeting Notices/Materials Posted at: www. westconnect. com 55

CCPG Activities ØLong Range (10 -Year) Planning ØNERC Compliance ØSenate Bill 100 ØSub-subregional Studies ØWECC Data Coordination ØRegional Project Participation ØCharter 56

Next ØNext CCPG meeting ØApril 23, 2009; Denver TSGT office ØNotices/Materials Posted at: www. westconnect. com ØContacts ØThomas Green Ø 303 -571 -7223 Øthomas. green@xcelenergy. com ØOr ØJared Griffiths (Co-chair) ØPhone 970 -461 -7603 ØEmail jgriffit@wapa. gov 57

CCPG Long Range Planning Group (CLRGPG) Assessment ØPurpose: } Develop 10 Year Transmission Plans (2018 Models) } Consider RPS & up to 30% Renewable } Re-evaluate the Eastern Plains Transmission Project Annual assessments include: ØAssessment } Load Flow Analysis } Four Scenarios 58

Long Range Scenarios A. Colorado resources suggested by Utility resource planners • Meets or exceeds Colorado’s Renewable Portfolio Standard • “Stressed” from South to North B. Displace some northern CO resource with WY • Injected into CO via the proposed Wyoming-Colorado Intertie Project • Stressed North to South C. Up To 5% of the capacity in Colorado’s Wind GDA’s D. 2000 MW from Colorado’s Central Solar Power GDA’s 59

Scaled Scenario C (Total 2917 MW new) 230 k. V 345 k. V 500 k. V 410 MW 165 MW 110 MW 55 MW 110 MW 630 MW Corner Point 650 MW 732 MW 55 MW 60

Scenario C – Topology Summary § Lamar area to: § Comanche 345/500 k. V (SB 100) § Big Sandy – Missile Site 345/500 k. V (SB 100) § Burlington 345/500 k. V § Burlington - Wray 230 k. V § Pawnee - Smoky Hill – Daniels Park 345 k. V (SB 100) § Ault – Cherokee 230 k. V (SB 100) 61

Subregional (West. Connect) CCPG, SWAT and SIERRA act as West. Connect technical planning work groups for West. Connect planning area • Coordinate Base Cases for use by all study participants • Define subregional study plans, provide study resources, and perform studies CCPG SIERRA Colorado Coordinated Planning Group New Area ? • Provide forum for coordination and peer review of planning studies and 10 -year plans SWAT Southwest Area Transmission 62

Status of West. Connect Subregional Planning Process Ø 2008 Planning Cycle posted on web site Ø 2013 & 2018 Adequacy Assessments( Posted) ØCoordinated with CCPG Ø 10 -Year Study Plan and Report (Posted) ØWorkshop in October ØReport in January ØCurrently preparing 2009 scope of work Ø Website Ø http: //www. westconnect. com/ 63

Transmission customers update loads, resources and demand responses 64

Study Request Review 65

http: //www. oatioasis. com/PSCOdocs/PSCO_Attachment_R_Econ_Study_Request-Form_10 Oct 08. pdf 66

Stakeholder Questions & Comments 67

4 th Quarter meeting Dec 10, 2009 68

Adjourn 69