RENEWABLE ENERGY IN TEXAS Jess Totten Public Utility

RENEWABLE ENERGY IN TEXAS Jess Totten Public Utility Commission of Texas 1

GOAL FOR NEW RENEWABLE CAPACITY Statutory goal adopted in 1999, revised in 2005 Year Goal Actual Non-Wind 2003 400 990 45 2005 850 1190 45 2007 1400 3100 77 Today 2392 ~10, 070 158 2015 5880 2

POLICIES SUPPORTING RENEWABLE ENERGY DEVELOPMENT Tax credits and other federal income tax benefits Competitive wholesale market with prices dominated by natural gas Texas renewable portfolio standard Standard enforced through tradable Renewable Energy Credits (RECs) Texas transmission policy has favored competition among generators Transmission built to interconnect new generators and relieve constraints Regional rate does not disadvantage remote generators 3

COMPETITIVE RENEWABLE ENERGY ZONES Texas Legislature in 2005 directed PUC to accelerate renewable energy development Designate zones for renewable energy development Develop transmission plan PUC CREZ actions Designated zones; approved transmission plan 2008 Designated utilities to build and operate transmission facilities 2009 Utility actions Routing and environmental studies Transmission licensing applications Engineering, acquisition of materials and ROW, construction 4

RENEWABLE ENERGY ZONES Wind Zone MW Panhandle A 3, 191 Panhandle B 2, 393 Mc. Camey 1, 859 Central 3, 047 Central West 1, 063 Total* 18, 456 * Assumes 6, 903 MW of existing wind capacity • 1, 705 miles of new 345 -k. V double circuits • 453 miles of new 345 -k. V single circuit • 371 miles of 345 -k. V rebuild & upgrade • $4. 9 Billion 5

September 10, 2008 6

PROGRESS OF CREZ TRANSMISSION Some projects did not require licensing, and utilities are proceeding with projects About 40 projects require PUC licensing Consideration of environmental issues, conflicting land uses About a dozen projects have been approved; one has been denied Significant participation in cases by landowners and local government officials Projects expected to be completed over next three years Original cost estimate of $4. 9 billion 7

FOR MORE INFORMATION PUC Rules www. puc. state. tx. us/rules/subrules/electric/index. cfm Renewable Program information www. texasrenewables. com CREZ Information http: //www. texascrezprojects. com/default. aspx 8