Transmission Planning at the California ISO September 10

Transmission Planning at the California ISO September 10, 2015

ISO’s annual transmission planning process relies on state policy and state agency input and aligns assumptions January 2015 April 2015 Phase 1 – Develop detailed study plan State and federal policy CEC - Demand forecasts CPUC - Resource forecasts and common assumptions with procurement processes Other issues or concerns March 2016 Phase 2 - Sequential technical studies • Reliability analysis • Renewable (policydriven) analysis • Economic analysis Phase 3 Procurement Publish comprehensive transmission plan with recommended projects ISO Board approves transmission plan Page 2

Transmission planning is coordinated with state processes: CEC & 1 CPUC Create demand forecast & assess resource needs CAISO 2 Creates transmission plan CPUC 3 Creates procurement plan Final plan 4 authorizes procurement Results feed into next biennial cycle IOUs

ISO transmission approvals over last 5 years – over 30 projects/yr until pace slowed in 2014 -2015 Capital Cost in $ millions $3, 000 Delaney-Colorado River and Harry Allen -Eldorado $2, 500 $2, 000 Economic $1, 500 Policy Reliability $1, 000 $500 $0 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 Transmission Plan Slide 4

First cycle of CAISO’s biennial FERC Order 1000 interregional planning process begins 2016 • Four planning regions coordinate evaluation, selection, and allocation of costs of proposed interregional transmission projects (CAISO, Columbia Grid, Northern Tier, and West Connect) Dec 2015 Jan 2016 Stakeholder Meeting 1 Stakeholder Meeting 2 Stakeholder Meeting 3 Mar Sept Nov Mar 2016 Stakeholder Meeting 4 Jan 2017 Feb Oct 2017 Mar 2017 Phase 3 Phase 1 Development of ISO unified planning assumptions and study plan Phase 2 Technical Studies and Board Approval Receive proposals to build identified policy and economic transmission projects Study Plan Addendum Interregional Coordination Stakeholder Meeting Project Conduct Submissions Screening Due Mar 31 Process Preliminary Assessment Move to the next planning cycle Viable? Inform other Relevant Regions and Stop Assessment Page 5

The CAISO transmission planning process is wellpositioned to play a key role in RETI 2. 0 • Past coordination on renewable generation development has been effective in identifying transmission needs for 33% RPS • Further coordination is in place for load forecasting and forecasting of preferred resources • Alignment has evolved and improved between the CAISO, CPUC and CEC processes Page 6