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101
Integrated Resource Plan Public Advisory Group Meeting 3 – July 6, 2017 Operational Considerations, System Operations, Existing Conventional Resources, Transmission and Distribution

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Page 1: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Integrated Resource Plan Public Advisory Group

Meeting 3 ndash July 6 2017

Operational ConsiderationsSystem Operations Existing Conventional ResourcesTransmission and Distribution

bull Welcome and Introduction bull Public Advisory Process and Meeting Schedule bull Operational ConsiderationsRequirements for Future Resources

ndash Assessment of need for additional resourcesbull System Operations Import Limits and Balancing bull Existing Conventional Resources and System Generation

Retirement Plan and Processbull Transmission amp Distribution Systems Overview and Projects bull Discussion

Meeting Agenda

2 EPE Proprietary Material

bull Maritza Perez NM IRP Case Managerbull Omar Gallegos Director of Resource Planning and Managementbull Dave Hawkins VP - System Operations Resource Planning amp

Managementbull Andy Ramirez VP - Power Generationbull Clay Doyle VP - Transmission amp Distribution and System Planningbull Myra Segal Facilitator

Welcome and IntroductionPresenters for this Meeting

3 EPE Proprietary Material

bull Fire Escape Routes

bull Please sign in You will be added to our PAG distribution listndash Skype participants can email NMIRPepelectriccom

bull Facilities

bull Recording of Meetings

bull Terms Glossary

Safety and Basics

4 EPE Proprietary Material

Certain matters discussed in this Integrated Resource Plan (IRP) public advisory group presentation other than statements of historical information are forward-looking statements made pursuant to the safe harbor provisions of the Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended Such statements are subject to a variety of risks uncertainties and other factors most of which are beyond El Paso Electric Companys (EPE or the Company) control and many of which could have a significant impact on the Companys operations results of operations and financial condition and could cause actual results to differ materially from those anticipated Additional information concerning factors that could cause actual results to differ materially from those expressed in forward-looking statements is contained in EPEs most recently filed periodic reports Any such forward-looking statement is qualified by reference to these risks and factors EPE cautions that these risks and factors are not exclusive

Management cautions against putting undue reliance on forward-looking statements or projecting any future assumptions based on such statements Forward-looking statements speak only as of the date of this IRP public advisory group presentation and EPE does not undertake to update any forward-looking statement contained herein except to the extent the events or circumstances constitute material changes in this IRP that are required to be reported to the New Mexico Public Regulation Commission (NMPRC or Commission) pursuant to its IRP Rule 1773 New Mexico Administrative Code

Safe Harbor Statement

5 EPE Proprietary Material

bull Meetings will follow the agenda bull Questions

ndash Public advisory group may ask clarifying questions during presentationndash Questions that require a longer explanation will be answered at the end of

the presentationndash Skype attendees may type in a question in instant message box

bull Discussion will followndash Facilitator will assist during discussionndash All public input and requests submitted in writing will be responded to in

writingbull Keep communications respectful and to the point

Ground RulesMeeting Rules and Guidelines

Joint Stipulation Case No 15-00241-UT6 EPE Proprietary Material

Updated Schedule ndash Public Advisory Group Meetings

Moved DG presentation to 8317

7 EPE Proprietary Material

See full size schedule at end of packet

Moved Renewable Portfolio Standard Impacts to 972017

Integrated Resource PlanPublic Advisory Process

8 EPE Proprietary Material

bull The purpose of the public advisory process is to receive public input and solicit public commentary concerning resource planning and related resource acquisition issues

bull - NM Rule 17739 (H)

bull Meeting Schedules and Agendasndash Participants may add their own presentations to the

agendas for the January and February meetings

Integrated Resource Plan

Operational ConsiderationsRequirements for Future Resourcesand Assessment of need for Additional Resources

Omar GallegosDirector of Resource Planning and Management

9 EPE Proprietary Material

bull System operational behaviorbull Import limitationsbull Contingency reserves and reserve marginbull Variability of intermittent renewable resourcesbull Generation dispatch and baseload generationbull Age of retirement resources

Resource Planning Considerations forOperational Reliability

10 EPE Proprietary Material

11 EPE Proprietary Material

bull Bulk Electric System flows across tie-lines dictated by load draw and physics

bull As load varies imports change almost immediately and then local generation adjusts to reset balance

bull Need to maintain imports within transmission limitations

bull Example of transmission line overloading resulting in a blackout

Operational ReliabilitySystem Operational Dynamic Behavior

EP

E L

oad

Loca

l Gen

Impo

rts Res

12 EPE Proprietary Material

bull System model for Capacity Expansion analysis

bull Limitations on purchased power and sales

Operational ReliabilityModelling of Transmission Import Limitations

13 EPE Proprietary Material

bull Cover unexpected loss of generator resource

bull Cover unexpected loss of transmission line (n-1)

bull Cover load growth over forecast

Operational ReliabilityImportance of Reserve Requirements

EP

E L

oad

Loca

l Gen

Impo

rts Res

14 EPE Proprietary Material

bull Need to consider how to mitigate if penetration of renewables increasesbull There are options need to be conscious of intermittency

Operational ReliabilityImpacts of Intermittent Generation Resources

15 EPE Proprietary Material

Operational ReliabilityDispatch Characteristics and Dispatch Order

bull Dispatch order

bull Resource dispatch ability

bull Resource ability for daily cycling

bull Safety Personnel safety working in proximity to high pressure systems

bull Reliability Availability and risk of catastrophic failure

bull Cost Effectiveness Unit characteristics and resulting operating cost Including consideration for any investment required for life extensions

Generation Unit AgeOperational Reliability

EPE Proprietary Material16

Questions

17 EPE Proprietary Material

Integrated Resource PlanSystem Operations ndash Reliability Import Limits

and Balancing

Dave HawkinsVice President - System Operations Resource

Planning amp Management

18 EPE Proprietary Material

bull I most cost effective resource portfolio means those supply-side resources and demand-side resources that minimize the net present value of revenue requirements proposed by the utility to meet electric system demand during the planning period consistent with reliability and risk considerations

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17737 - Definitions

19 EPE Proprietary Material

bull (6) amount of capacity obtained or to be obtained through existing purchased power contracts or agreements relied upon by the utility including the fuel type if known and contract duration

bull (8) amount of capacity and if applicable energy provided annually to the utility pursuant to wheeling agreements and the duration of such wheeling agreements

bull (10) reserve margin and reserve reliability requirements (eg FERC power pool etc) with which the utility must comply and the methodology used to calculate its reserve margin

20 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

bull (1) To identify the most cost-effective resource portfolio utilities shall evaluate all feasible supply and demand-side resource options on a consistent and comparable basis and take into consideration risk and uncertainty (including but not limited to financial competitive reliability operational fuel supply price volatility and anticipated environmental regulation) The utility shall evaluate the cost of each resource through its projected life with a life-cycle or similar analysis The utility shall also consider and describe ways to mitigate ratepayer risk

bull (2) Each electric utility shall provide a summary of how the following factors were considered in or affected the development of resource portfoliosndash (d) fuel diversityndash (e) susceptibility to fuel interdependenciesndash (g) system reliability and planning reserve margin requirements

17739(G) ndash Integrated Resource Plans for Electric Utilities

21 EPE Proprietary Material

22 EPE Proprietary Material

System Operations Resource Planning amp Management

Sales ------Interchange----- Purchases

Load + Losses Power Generated

Demand SupplyFrequency

Decrease Increase

60- +

bull Federal Energy Regulation Commission (FERC)bull North American Electric Reliability Corporation

(NERC)

Regulatory Authorities

23 EPE Proprietary Material

Reliability Of The Bulk Power System

24 EPE Proprietary Material

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 2: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

bull Welcome and Introduction bull Public Advisory Process and Meeting Schedule bull Operational ConsiderationsRequirements for Future Resources

ndash Assessment of need for additional resourcesbull System Operations Import Limits and Balancing bull Existing Conventional Resources and System Generation

Retirement Plan and Processbull Transmission amp Distribution Systems Overview and Projects bull Discussion

Meeting Agenda

2 EPE Proprietary Material

bull Maritza Perez NM IRP Case Managerbull Omar Gallegos Director of Resource Planning and Managementbull Dave Hawkins VP - System Operations Resource Planning amp

Managementbull Andy Ramirez VP - Power Generationbull Clay Doyle VP - Transmission amp Distribution and System Planningbull Myra Segal Facilitator

Welcome and IntroductionPresenters for this Meeting

3 EPE Proprietary Material

bull Fire Escape Routes

bull Please sign in You will be added to our PAG distribution listndash Skype participants can email NMIRPepelectriccom

bull Facilities

bull Recording of Meetings

bull Terms Glossary

Safety and Basics

4 EPE Proprietary Material

Certain matters discussed in this Integrated Resource Plan (IRP) public advisory group presentation other than statements of historical information are forward-looking statements made pursuant to the safe harbor provisions of the Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended Such statements are subject to a variety of risks uncertainties and other factors most of which are beyond El Paso Electric Companys (EPE or the Company) control and many of which could have a significant impact on the Companys operations results of operations and financial condition and could cause actual results to differ materially from those anticipated Additional information concerning factors that could cause actual results to differ materially from those expressed in forward-looking statements is contained in EPEs most recently filed periodic reports Any such forward-looking statement is qualified by reference to these risks and factors EPE cautions that these risks and factors are not exclusive

Management cautions against putting undue reliance on forward-looking statements or projecting any future assumptions based on such statements Forward-looking statements speak only as of the date of this IRP public advisory group presentation and EPE does not undertake to update any forward-looking statement contained herein except to the extent the events or circumstances constitute material changes in this IRP that are required to be reported to the New Mexico Public Regulation Commission (NMPRC or Commission) pursuant to its IRP Rule 1773 New Mexico Administrative Code

Safe Harbor Statement

5 EPE Proprietary Material

bull Meetings will follow the agenda bull Questions

ndash Public advisory group may ask clarifying questions during presentationndash Questions that require a longer explanation will be answered at the end of

the presentationndash Skype attendees may type in a question in instant message box

bull Discussion will followndash Facilitator will assist during discussionndash All public input and requests submitted in writing will be responded to in

writingbull Keep communications respectful and to the point

Ground RulesMeeting Rules and Guidelines

Joint Stipulation Case No 15-00241-UT6 EPE Proprietary Material

Updated Schedule ndash Public Advisory Group Meetings

Moved DG presentation to 8317

7 EPE Proprietary Material

See full size schedule at end of packet

Moved Renewable Portfolio Standard Impacts to 972017

Integrated Resource PlanPublic Advisory Process

8 EPE Proprietary Material

bull The purpose of the public advisory process is to receive public input and solicit public commentary concerning resource planning and related resource acquisition issues

bull - NM Rule 17739 (H)

bull Meeting Schedules and Agendasndash Participants may add their own presentations to the

agendas for the January and February meetings

Integrated Resource Plan

Operational ConsiderationsRequirements for Future Resourcesand Assessment of need for Additional Resources

Omar GallegosDirector of Resource Planning and Management

9 EPE Proprietary Material

bull System operational behaviorbull Import limitationsbull Contingency reserves and reserve marginbull Variability of intermittent renewable resourcesbull Generation dispatch and baseload generationbull Age of retirement resources

Resource Planning Considerations forOperational Reliability

10 EPE Proprietary Material

11 EPE Proprietary Material

bull Bulk Electric System flows across tie-lines dictated by load draw and physics

bull As load varies imports change almost immediately and then local generation adjusts to reset balance

bull Need to maintain imports within transmission limitations

bull Example of transmission line overloading resulting in a blackout

Operational ReliabilitySystem Operational Dynamic Behavior

EP

E L

oad

Loca

l Gen

Impo

rts Res

12 EPE Proprietary Material

bull System model for Capacity Expansion analysis

bull Limitations on purchased power and sales

Operational ReliabilityModelling of Transmission Import Limitations

13 EPE Proprietary Material

bull Cover unexpected loss of generator resource

bull Cover unexpected loss of transmission line (n-1)

bull Cover load growth over forecast

Operational ReliabilityImportance of Reserve Requirements

EP

E L

oad

Loca

l Gen

Impo

rts Res

14 EPE Proprietary Material

bull Need to consider how to mitigate if penetration of renewables increasesbull There are options need to be conscious of intermittency

Operational ReliabilityImpacts of Intermittent Generation Resources

15 EPE Proprietary Material

Operational ReliabilityDispatch Characteristics and Dispatch Order

bull Dispatch order

bull Resource dispatch ability

bull Resource ability for daily cycling

bull Safety Personnel safety working in proximity to high pressure systems

bull Reliability Availability and risk of catastrophic failure

bull Cost Effectiveness Unit characteristics and resulting operating cost Including consideration for any investment required for life extensions

Generation Unit AgeOperational Reliability

EPE Proprietary Material16

Questions

17 EPE Proprietary Material

Integrated Resource PlanSystem Operations ndash Reliability Import Limits

and Balancing

Dave HawkinsVice President - System Operations Resource

Planning amp Management

18 EPE Proprietary Material

bull I most cost effective resource portfolio means those supply-side resources and demand-side resources that minimize the net present value of revenue requirements proposed by the utility to meet electric system demand during the planning period consistent with reliability and risk considerations

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17737 - Definitions

19 EPE Proprietary Material

bull (6) amount of capacity obtained or to be obtained through existing purchased power contracts or agreements relied upon by the utility including the fuel type if known and contract duration

bull (8) amount of capacity and if applicable energy provided annually to the utility pursuant to wheeling agreements and the duration of such wheeling agreements

bull (10) reserve margin and reserve reliability requirements (eg FERC power pool etc) with which the utility must comply and the methodology used to calculate its reserve margin

20 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

bull (1) To identify the most cost-effective resource portfolio utilities shall evaluate all feasible supply and demand-side resource options on a consistent and comparable basis and take into consideration risk and uncertainty (including but not limited to financial competitive reliability operational fuel supply price volatility and anticipated environmental regulation) The utility shall evaluate the cost of each resource through its projected life with a life-cycle or similar analysis The utility shall also consider and describe ways to mitigate ratepayer risk

bull (2) Each electric utility shall provide a summary of how the following factors were considered in or affected the development of resource portfoliosndash (d) fuel diversityndash (e) susceptibility to fuel interdependenciesndash (g) system reliability and planning reserve margin requirements

17739(G) ndash Integrated Resource Plans for Electric Utilities

21 EPE Proprietary Material

22 EPE Proprietary Material

System Operations Resource Planning amp Management

Sales ------Interchange----- Purchases

Load + Losses Power Generated

Demand SupplyFrequency

Decrease Increase

60- +

bull Federal Energy Regulation Commission (FERC)bull North American Electric Reliability Corporation

(NERC)

Regulatory Authorities

23 EPE Proprietary Material

Reliability Of The Bulk Power System

24 EPE Proprietary Material

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 3: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

bull Maritza Perez NM IRP Case Managerbull Omar Gallegos Director of Resource Planning and Managementbull Dave Hawkins VP - System Operations Resource Planning amp

Managementbull Andy Ramirez VP - Power Generationbull Clay Doyle VP - Transmission amp Distribution and System Planningbull Myra Segal Facilitator

Welcome and IntroductionPresenters for this Meeting

3 EPE Proprietary Material

bull Fire Escape Routes

bull Please sign in You will be added to our PAG distribution listndash Skype participants can email NMIRPepelectriccom

bull Facilities

bull Recording of Meetings

bull Terms Glossary

Safety and Basics

4 EPE Proprietary Material

Certain matters discussed in this Integrated Resource Plan (IRP) public advisory group presentation other than statements of historical information are forward-looking statements made pursuant to the safe harbor provisions of the Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended Such statements are subject to a variety of risks uncertainties and other factors most of which are beyond El Paso Electric Companys (EPE or the Company) control and many of which could have a significant impact on the Companys operations results of operations and financial condition and could cause actual results to differ materially from those anticipated Additional information concerning factors that could cause actual results to differ materially from those expressed in forward-looking statements is contained in EPEs most recently filed periodic reports Any such forward-looking statement is qualified by reference to these risks and factors EPE cautions that these risks and factors are not exclusive

Management cautions against putting undue reliance on forward-looking statements or projecting any future assumptions based on such statements Forward-looking statements speak only as of the date of this IRP public advisory group presentation and EPE does not undertake to update any forward-looking statement contained herein except to the extent the events or circumstances constitute material changes in this IRP that are required to be reported to the New Mexico Public Regulation Commission (NMPRC or Commission) pursuant to its IRP Rule 1773 New Mexico Administrative Code

Safe Harbor Statement

5 EPE Proprietary Material

bull Meetings will follow the agenda bull Questions

ndash Public advisory group may ask clarifying questions during presentationndash Questions that require a longer explanation will be answered at the end of

the presentationndash Skype attendees may type in a question in instant message box

bull Discussion will followndash Facilitator will assist during discussionndash All public input and requests submitted in writing will be responded to in

writingbull Keep communications respectful and to the point

Ground RulesMeeting Rules and Guidelines

Joint Stipulation Case No 15-00241-UT6 EPE Proprietary Material

Updated Schedule ndash Public Advisory Group Meetings

Moved DG presentation to 8317

7 EPE Proprietary Material

See full size schedule at end of packet

Moved Renewable Portfolio Standard Impacts to 972017

Integrated Resource PlanPublic Advisory Process

8 EPE Proprietary Material

bull The purpose of the public advisory process is to receive public input and solicit public commentary concerning resource planning and related resource acquisition issues

bull - NM Rule 17739 (H)

bull Meeting Schedules and Agendasndash Participants may add their own presentations to the

agendas for the January and February meetings

Integrated Resource Plan

Operational ConsiderationsRequirements for Future Resourcesand Assessment of need for Additional Resources

Omar GallegosDirector of Resource Planning and Management

9 EPE Proprietary Material

bull System operational behaviorbull Import limitationsbull Contingency reserves and reserve marginbull Variability of intermittent renewable resourcesbull Generation dispatch and baseload generationbull Age of retirement resources

Resource Planning Considerations forOperational Reliability

10 EPE Proprietary Material

11 EPE Proprietary Material

bull Bulk Electric System flows across tie-lines dictated by load draw and physics

bull As load varies imports change almost immediately and then local generation adjusts to reset balance

bull Need to maintain imports within transmission limitations

bull Example of transmission line overloading resulting in a blackout

Operational ReliabilitySystem Operational Dynamic Behavior

EP

E L

oad

Loca

l Gen

Impo

rts Res

12 EPE Proprietary Material

bull System model for Capacity Expansion analysis

bull Limitations on purchased power and sales

Operational ReliabilityModelling of Transmission Import Limitations

13 EPE Proprietary Material

bull Cover unexpected loss of generator resource

bull Cover unexpected loss of transmission line (n-1)

bull Cover load growth over forecast

Operational ReliabilityImportance of Reserve Requirements

EP

E L

oad

Loca

l Gen

Impo

rts Res

14 EPE Proprietary Material

bull Need to consider how to mitigate if penetration of renewables increasesbull There are options need to be conscious of intermittency

Operational ReliabilityImpacts of Intermittent Generation Resources

15 EPE Proprietary Material

Operational ReliabilityDispatch Characteristics and Dispatch Order

bull Dispatch order

bull Resource dispatch ability

bull Resource ability for daily cycling

bull Safety Personnel safety working in proximity to high pressure systems

bull Reliability Availability and risk of catastrophic failure

bull Cost Effectiveness Unit characteristics and resulting operating cost Including consideration for any investment required for life extensions

Generation Unit AgeOperational Reliability

EPE Proprietary Material16

Questions

17 EPE Proprietary Material

Integrated Resource PlanSystem Operations ndash Reliability Import Limits

and Balancing

Dave HawkinsVice President - System Operations Resource

Planning amp Management

18 EPE Proprietary Material

bull I most cost effective resource portfolio means those supply-side resources and demand-side resources that minimize the net present value of revenue requirements proposed by the utility to meet electric system demand during the planning period consistent with reliability and risk considerations

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17737 - Definitions

19 EPE Proprietary Material

bull (6) amount of capacity obtained or to be obtained through existing purchased power contracts or agreements relied upon by the utility including the fuel type if known and contract duration

bull (8) amount of capacity and if applicable energy provided annually to the utility pursuant to wheeling agreements and the duration of such wheeling agreements

bull (10) reserve margin and reserve reliability requirements (eg FERC power pool etc) with which the utility must comply and the methodology used to calculate its reserve margin

20 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

bull (1) To identify the most cost-effective resource portfolio utilities shall evaluate all feasible supply and demand-side resource options on a consistent and comparable basis and take into consideration risk and uncertainty (including but not limited to financial competitive reliability operational fuel supply price volatility and anticipated environmental regulation) The utility shall evaluate the cost of each resource through its projected life with a life-cycle or similar analysis The utility shall also consider and describe ways to mitigate ratepayer risk

bull (2) Each electric utility shall provide a summary of how the following factors were considered in or affected the development of resource portfoliosndash (d) fuel diversityndash (e) susceptibility to fuel interdependenciesndash (g) system reliability and planning reserve margin requirements

17739(G) ndash Integrated Resource Plans for Electric Utilities

21 EPE Proprietary Material

22 EPE Proprietary Material

System Operations Resource Planning amp Management

Sales ------Interchange----- Purchases

Load + Losses Power Generated

Demand SupplyFrequency

Decrease Increase

60- +

bull Federal Energy Regulation Commission (FERC)bull North American Electric Reliability Corporation

(NERC)

Regulatory Authorities

23 EPE Proprietary Material

Reliability Of The Bulk Power System

24 EPE Proprietary Material

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 4: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

bull Fire Escape Routes

bull Please sign in You will be added to our PAG distribution listndash Skype participants can email NMIRPepelectriccom

bull Facilities

bull Recording of Meetings

bull Terms Glossary

Safety and Basics

4 EPE Proprietary Material

Certain matters discussed in this Integrated Resource Plan (IRP) public advisory group presentation other than statements of historical information are forward-looking statements made pursuant to the safe harbor provisions of the Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended Such statements are subject to a variety of risks uncertainties and other factors most of which are beyond El Paso Electric Companys (EPE or the Company) control and many of which could have a significant impact on the Companys operations results of operations and financial condition and could cause actual results to differ materially from those anticipated Additional information concerning factors that could cause actual results to differ materially from those expressed in forward-looking statements is contained in EPEs most recently filed periodic reports Any such forward-looking statement is qualified by reference to these risks and factors EPE cautions that these risks and factors are not exclusive

Management cautions against putting undue reliance on forward-looking statements or projecting any future assumptions based on such statements Forward-looking statements speak only as of the date of this IRP public advisory group presentation and EPE does not undertake to update any forward-looking statement contained herein except to the extent the events or circumstances constitute material changes in this IRP that are required to be reported to the New Mexico Public Regulation Commission (NMPRC or Commission) pursuant to its IRP Rule 1773 New Mexico Administrative Code

Safe Harbor Statement

5 EPE Proprietary Material

bull Meetings will follow the agenda bull Questions

ndash Public advisory group may ask clarifying questions during presentationndash Questions that require a longer explanation will be answered at the end of

the presentationndash Skype attendees may type in a question in instant message box

bull Discussion will followndash Facilitator will assist during discussionndash All public input and requests submitted in writing will be responded to in

writingbull Keep communications respectful and to the point

Ground RulesMeeting Rules and Guidelines

Joint Stipulation Case No 15-00241-UT6 EPE Proprietary Material

Updated Schedule ndash Public Advisory Group Meetings

Moved DG presentation to 8317

7 EPE Proprietary Material

See full size schedule at end of packet

Moved Renewable Portfolio Standard Impacts to 972017

Integrated Resource PlanPublic Advisory Process

8 EPE Proprietary Material

bull The purpose of the public advisory process is to receive public input and solicit public commentary concerning resource planning and related resource acquisition issues

bull - NM Rule 17739 (H)

bull Meeting Schedules and Agendasndash Participants may add their own presentations to the

agendas for the January and February meetings

Integrated Resource Plan

Operational ConsiderationsRequirements for Future Resourcesand Assessment of need for Additional Resources

Omar GallegosDirector of Resource Planning and Management

9 EPE Proprietary Material

bull System operational behaviorbull Import limitationsbull Contingency reserves and reserve marginbull Variability of intermittent renewable resourcesbull Generation dispatch and baseload generationbull Age of retirement resources

Resource Planning Considerations forOperational Reliability

10 EPE Proprietary Material

11 EPE Proprietary Material

bull Bulk Electric System flows across tie-lines dictated by load draw and physics

bull As load varies imports change almost immediately and then local generation adjusts to reset balance

bull Need to maintain imports within transmission limitations

bull Example of transmission line overloading resulting in a blackout

Operational ReliabilitySystem Operational Dynamic Behavior

EP

E L

oad

Loca

l Gen

Impo

rts Res

12 EPE Proprietary Material

bull System model for Capacity Expansion analysis

bull Limitations on purchased power and sales

Operational ReliabilityModelling of Transmission Import Limitations

13 EPE Proprietary Material

bull Cover unexpected loss of generator resource

bull Cover unexpected loss of transmission line (n-1)

bull Cover load growth over forecast

Operational ReliabilityImportance of Reserve Requirements

EP

E L

oad

Loca

l Gen

Impo

rts Res

14 EPE Proprietary Material

bull Need to consider how to mitigate if penetration of renewables increasesbull There are options need to be conscious of intermittency

Operational ReliabilityImpacts of Intermittent Generation Resources

15 EPE Proprietary Material

Operational ReliabilityDispatch Characteristics and Dispatch Order

bull Dispatch order

bull Resource dispatch ability

bull Resource ability for daily cycling

bull Safety Personnel safety working in proximity to high pressure systems

bull Reliability Availability and risk of catastrophic failure

bull Cost Effectiveness Unit characteristics and resulting operating cost Including consideration for any investment required for life extensions

Generation Unit AgeOperational Reliability

EPE Proprietary Material16

Questions

17 EPE Proprietary Material

Integrated Resource PlanSystem Operations ndash Reliability Import Limits

and Balancing

Dave HawkinsVice President - System Operations Resource

Planning amp Management

18 EPE Proprietary Material

bull I most cost effective resource portfolio means those supply-side resources and demand-side resources that minimize the net present value of revenue requirements proposed by the utility to meet electric system demand during the planning period consistent with reliability and risk considerations

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17737 - Definitions

19 EPE Proprietary Material

bull (6) amount of capacity obtained or to be obtained through existing purchased power contracts or agreements relied upon by the utility including the fuel type if known and contract duration

bull (8) amount of capacity and if applicable energy provided annually to the utility pursuant to wheeling agreements and the duration of such wheeling agreements

bull (10) reserve margin and reserve reliability requirements (eg FERC power pool etc) with which the utility must comply and the methodology used to calculate its reserve margin

20 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

bull (1) To identify the most cost-effective resource portfolio utilities shall evaluate all feasible supply and demand-side resource options on a consistent and comparable basis and take into consideration risk and uncertainty (including but not limited to financial competitive reliability operational fuel supply price volatility and anticipated environmental regulation) The utility shall evaluate the cost of each resource through its projected life with a life-cycle or similar analysis The utility shall also consider and describe ways to mitigate ratepayer risk

bull (2) Each electric utility shall provide a summary of how the following factors were considered in or affected the development of resource portfoliosndash (d) fuel diversityndash (e) susceptibility to fuel interdependenciesndash (g) system reliability and planning reserve margin requirements

17739(G) ndash Integrated Resource Plans for Electric Utilities

21 EPE Proprietary Material

22 EPE Proprietary Material

System Operations Resource Planning amp Management

Sales ------Interchange----- Purchases

Load + Losses Power Generated

Demand SupplyFrequency

Decrease Increase

60- +

bull Federal Energy Regulation Commission (FERC)bull North American Electric Reliability Corporation

(NERC)

Regulatory Authorities

23 EPE Proprietary Material

Reliability Of The Bulk Power System

24 EPE Proprietary Material

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 5: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Certain matters discussed in this Integrated Resource Plan (IRP) public advisory group presentation other than statements of historical information are forward-looking statements made pursuant to the safe harbor provisions of the Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended Such statements are subject to a variety of risks uncertainties and other factors most of which are beyond El Paso Electric Companys (EPE or the Company) control and many of which could have a significant impact on the Companys operations results of operations and financial condition and could cause actual results to differ materially from those anticipated Additional information concerning factors that could cause actual results to differ materially from those expressed in forward-looking statements is contained in EPEs most recently filed periodic reports Any such forward-looking statement is qualified by reference to these risks and factors EPE cautions that these risks and factors are not exclusive

Management cautions against putting undue reliance on forward-looking statements or projecting any future assumptions based on such statements Forward-looking statements speak only as of the date of this IRP public advisory group presentation and EPE does not undertake to update any forward-looking statement contained herein except to the extent the events or circumstances constitute material changes in this IRP that are required to be reported to the New Mexico Public Regulation Commission (NMPRC or Commission) pursuant to its IRP Rule 1773 New Mexico Administrative Code

Safe Harbor Statement

5 EPE Proprietary Material

bull Meetings will follow the agenda bull Questions

ndash Public advisory group may ask clarifying questions during presentationndash Questions that require a longer explanation will be answered at the end of

the presentationndash Skype attendees may type in a question in instant message box

bull Discussion will followndash Facilitator will assist during discussionndash All public input and requests submitted in writing will be responded to in

writingbull Keep communications respectful and to the point

Ground RulesMeeting Rules and Guidelines

Joint Stipulation Case No 15-00241-UT6 EPE Proprietary Material

Updated Schedule ndash Public Advisory Group Meetings

Moved DG presentation to 8317

7 EPE Proprietary Material

See full size schedule at end of packet

Moved Renewable Portfolio Standard Impacts to 972017

Integrated Resource PlanPublic Advisory Process

8 EPE Proprietary Material

bull The purpose of the public advisory process is to receive public input and solicit public commentary concerning resource planning and related resource acquisition issues

bull - NM Rule 17739 (H)

bull Meeting Schedules and Agendasndash Participants may add their own presentations to the

agendas for the January and February meetings

Integrated Resource Plan

Operational ConsiderationsRequirements for Future Resourcesand Assessment of need for Additional Resources

Omar GallegosDirector of Resource Planning and Management

9 EPE Proprietary Material

bull System operational behaviorbull Import limitationsbull Contingency reserves and reserve marginbull Variability of intermittent renewable resourcesbull Generation dispatch and baseload generationbull Age of retirement resources

Resource Planning Considerations forOperational Reliability

10 EPE Proprietary Material

11 EPE Proprietary Material

bull Bulk Electric System flows across tie-lines dictated by load draw and physics

bull As load varies imports change almost immediately and then local generation adjusts to reset balance

bull Need to maintain imports within transmission limitations

bull Example of transmission line overloading resulting in a blackout

Operational ReliabilitySystem Operational Dynamic Behavior

EP

E L

oad

Loca

l Gen

Impo

rts Res

12 EPE Proprietary Material

bull System model for Capacity Expansion analysis

bull Limitations on purchased power and sales

Operational ReliabilityModelling of Transmission Import Limitations

13 EPE Proprietary Material

bull Cover unexpected loss of generator resource

bull Cover unexpected loss of transmission line (n-1)

bull Cover load growth over forecast

Operational ReliabilityImportance of Reserve Requirements

EP

E L

oad

Loca

l Gen

Impo

rts Res

14 EPE Proprietary Material

bull Need to consider how to mitigate if penetration of renewables increasesbull There are options need to be conscious of intermittency

Operational ReliabilityImpacts of Intermittent Generation Resources

15 EPE Proprietary Material

Operational ReliabilityDispatch Characteristics and Dispatch Order

bull Dispatch order

bull Resource dispatch ability

bull Resource ability for daily cycling

bull Safety Personnel safety working in proximity to high pressure systems

bull Reliability Availability and risk of catastrophic failure

bull Cost Effectiveness Unit characteristics and resulting operating cost Including consideration for any investment required for life extensions

Generation Unit AgeOperational Reliability

EPE Proprietary Material16

Questions

17 EPE Proprietary Material

Integrated Resource PlanSystem Operations ndash Reliability Import Limits

and Balancing

Dave HawkinsVice President - System Operations Resource

Planning amp Management

18 EPE Proprietary Material

bull I most cost effective resource portfolio means those supply-side resources and demand-side resources that minimize the net present value of revenue requirements proposed by the utility to meet electric system demand during the planning period consistent with reliability and risk considerations

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17737 - Definitions

19 EPE Proprietary Material

bull (6) amount of capacity obtained or to be obtained through existing purchased power contracts or agreements relied upon by the utility including the fuel type if known and contract duration

bull (8) amount of capacity and if applicable energy provided annually to the utility pursuant to wheeling agreements and the duration of such wheeling agreements

bull (10) reserve margin and reserve reliability requirements (eg FERC power pool etc) with which the utility must comply and the methodology used to calculate its reserve margin

20 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

bull (1) To identify the most cost-effective resource portfolio utilities shall evaluate all feasible supply and demand-side resource options on a consistent and comparable basis and take into consideration risk and uncertainty (including but not limited to financial competitive reliability operational fuel supply price volatility and anticipated environmental regulation) The utility shall evaluate the cost of each resource through its projected life with a life-cycle or similar analysis The utility shall also consider and describe ways to mitigate ratepayer risk

bull (2) Each electric utility shall provide a summary of how the following factors were considered in or affected the development of resource portfoliosndash (d) fuel diversityndash (e) susceptibility to fuel interdependenciesndash (g) system reliability and planning reserve margin requirements

17739(G) ndash Integrated Resource Plans for Electric Utilities

21 EPE Proprietary Material

22 EPE Proprietary Material

System Operations Resource Planning amp Management

Sales ------Interchange----- Purchases

Load + Losses Power Generated

Demand SupplyFrequency

Decrease Increase

60- +

bull Federal Energy Regulation Commission (FERC)bull North American Electric Reliability Corporation

(NERC)

Regulatory Authorities

23 EPE Proprietary Material

Reliability Of The Bulk Power System

24 EPE Proprietary Material

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 6: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

bull Meetings will follow the agenda bull Questions

ndash Public advisory group may ask clarifying questions during presentationndash Questions that require a longer explanation will be answered at the end of

the presentationndash Skype attendees may type in a question in instant message box

bull Discussion will followndash Facilitator will assist during discussionndash All public input and requests submitted in writing will be responded to in

writingbull Keep communications respectful and to the point

Ground RulesMeeting Rules and Guidelines

Joint Stipulation Case No 15-00241-UT6 EPE Proprietary Material

Updated Schedule ndash Public Advisory Group Meetings

Moved DG presentation to 8317

7 EPE Proprietary Material

See full size schedule at end of packet

Moved Renewable Portfolio Standard Impacts to 972017

Integrated Resource PlanPublic Advisory Process

8 EPE Proprietary Material

bull The purpose of the public advisory process is to receive public input and solicit public commentary concerning resource planning and related resource acquisition issues

bull - NM Rule 17739 (H)

bull Meeting Schedules and Agendasndash Participants may add their own presentations to the

agendas for the January and February meetings

Integrated Resource Plan

Operational ConsiderationsRequirements for Future Resourcesand Assessment of need for Additional Resources

Omar GallegosDirector of Resource Planning and Management

9 EPE Proprietary Material

bull System operational behaviorbull Import limitationsbull Contingency reserves and reserve marginbull Variability of intermittent renewable resourcesbull Generation dispatch and baseload generationbull Age of retirement resources

Resource Planning Considerations forOperational Reliability

10 EPE Proprietary Material

11 EPE Proprietary Material

bull Bulk Electric System flows across tie-lines dictated by load draw and physics

bull As load varies imports change almost immediately and then local generation adjusts to reset balance

bull Need to maintain imports within transmission limitations

bull Example of transmission line overloading resulting in a blackout

Operational ReliabilitySystem Operational Dynamic Behavior

EP

E L

oad

Loca

l Gen

Impo

rts Res

12 EPE Proprietary Material

bull System model for Capacity Expansion analysis

bull Limitations on purchased power and sales

Operational ReliabilityModelling of Transmission Import Limitations

13 EPE Proprietary Material

bull Cover unexpected loss of generator resource

bull Cover unexpected loss of transmission line (n-1)

bull Cover load growth over forecast

Operational ReliabilityImportance of Reserve Requirements

EP

E L

oad

Loca

l Gen

Impo

rts Res

14 EPE Proprietary Material

bull Need to consider how to mitigate if penetration of renewables increasesbull There are options need to be conscious of intermittency

Operational ReliabilityImpacts of Intermittent Generation Resources

15 EPE Proprietary Material

Operational ReliabilityDispatch Characteristics and Dispatch Order

bull Dispatch order

bull Resource dispatch ability

bull Resource ability for daily cycling

bull Safety Personnel safety working in proximity to high pressure systems

bull Reliability Availability and risk of catastrophic failure

bull Cost Effectiveness Unit characteristics and resulting operating cost Including consideration for any investment required for life extensions

Generation Unit AgeOperational Reliability

EPE Proprietary Material16

Questions

17 EPE Proprietary Material

Integrated Resource PlanSystem Operations ndash Reliability Import Limits

and Balancing

Dave HawkinsVice President - System Operations Resource

Planning amp Management

18 EPE Proprietary Material

bull I most cost effective resource portfolio means those supply-side resources and demand-side resources that minimize the net present value of revenue requirements proposed by the utility to meet electric system demand during the planning period consistent with reliability and risk considerations

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17737 - Definitions

19 EPE Proprietary Material

bull (6) amount of capacity obtained or to be obtained through existing purchased power contracts or agreements relied upon by the utility including the fuel type if known and contract duration

bull (8) amount of capacity and if applicable energy provided annually to the utility pursuant to wheeling agreements and the duration of such wheeling agreements

bull (10) reserve margin and reserve reliability requirements (eg FERC power pool etc) with which the utility must comply and the methodology used to calculate its reserve margin

20 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

bull (1) To identify the most cost-effective resource portfolio utilities shall evaluate all feasible supply and demand-side resource options on a consistent and comparable basis and take into consideration risk and uncertainty (including but not limited to financial competitive reliability operational fuel supply price volatility and anticipated environmental regulation) The utility shall evaluate the cost of each resource through its projected life with a life-cycle or similar analysis The utility shall also consider and describe ways to mitigate ratepayer risk

bull (2) Each electric utility shall provide a summary of how the following factors were considered in or affected the development of resource portfoliosndash (d) fuel diversityndash (e) susceptibility to fuel interdependenciesndash (g) system reliability and planning reserve margin requirements

17739(G) ndash Integrated Resource Plans for Electric Utilities

21 EPE Proprietary Material

22 EPE Proprietary Material

System Operations Resource Planning amp Management

Sales ------Interchange----- Purchases

Load + Losses Power Generated

Demand SupplyFrequency

Decrease Increase

60- +

bull Federal Energy Regulation Commission (FERC)bull North American Electric Reliability Corporation

(NERC)

Regulatory Authorities

23 EPE Proprietary Material

Reliability Of The Bulk Power System

24 EPE Proprietary Material

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 7: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Updated Schedule ndash Public Advisory Group Meetings

Moved DG presentation to 8317

7 EPE Proprietary Material

See full size schedule at end of packet

Moved Renewable Portfolio Standard Impacts to 972017

Integrated Resource PlanPublic Advisory Process

8 EPE Proprietary Material

bull The purpose of the public advisory process is to receive public input and solicit public commentary concerning resource planning and related resource acquisition issues

bull - NM Rule 17739 (H)

bull Meeting Schedules and Agendasndash Participants may add their own presentations to the

agendas for the January and February meetings

Integrated Resource Plan

Operational ConsiderationsRequirements for Future Resourcesand Assessment of need for Additional Resources

Omar GallegosDirector of Resource Planning and Management

9 EPE Proprietary Material

bull System operational behaviorbull Import limitationsbull Contingency reserves and reserve marginbull Variability of intermittent renewable resourcesbull Generation dispatch and baseload generationbull Age of retirement resources

Resource Planning Considerations forOperational Reliability

10 EPE Proprietary Material

11 EPE Proprietary Material

bull Bulk Electric System flows across tie-lines dictated by load draw and physics

bull As load varies imports change almost immediately and then local generation adjusts to reset balance

bull Need to maintain imports within transmission limitations

bull Example of transmission line overloading resulting in a blackout

Operational ReliabilitySystem Operational Dynamic Behavior

EP

E L

oad

Loca

l Gen

Impo

rts Res

12 EPE Proprietary Material

bull System model for Capacity Expansion analysis

bull Limitations on purchased power and sales

Operational ReliabilityModelling of Transmission Import Limitations

13 EPE Proprietary Material

bull Cover unexpected loss of generator resource

bull Cover unexpected loss of transmission line (n-1)

bull Cover load growth over forecast

Operational ReliabilityImportance of Reserve Requirements

EP

E L

oad

Loca

l Gen

Impo

rts Res

14 EPE Proprietary Material

bull Need to consider how to mitigate if penetration of renewables increasesbull There are options need to be conscious of intermittency

Operational ReliabilityImpacts of Intermittent Generation Resources

15 EPE Proprietary Material

Operational ReliabilityDispatch Characteristics and Dispatch Order

bull Dispatch order

bull Resource dispatch ability

bull Resource ability for daily cycling

bull Safety Personnel safety working in proximity to high pressure systems

bull Reliability Availability and risk of catastrophic failure

bull Cost Effectiveness Unit characteristics and resulting operating cost Including consideration for any investment required for life extensions

Generation Unit AgeOperational Reliability

EPE Proprietary Material16

Questions

17 EPE Proprietary Material

Integrated Resource PlanSystem Operations ndash Reliability Import Limits

and Balancing

Dave HawkinsVice President - System Operations Resource

Planning amp Management

18 EPE Proprietary Material

bull I most cost effective resource portfolio means those supply-side resources and demand-side resources that minimize the net present value of revenue requirements proposed by the utility to meet electric system demand during the planning period consistent with reliability and risk considerations

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17737 - Definitions

19 EPE Proprietary Material

bull (6) amount of capacity obtained or to be obtained through existing purchased power contracts or agreements relied upon by the utility including the fuel type if known and contract duration

bull (8) amount of capacity and if applicable energy provided annually to the utility pursuant to wheeling agreements and the duration of such wheeling agreements

bull (10) reserve margin and reserve reliability requirements (eg FERC power pool etc) with which the utility must comply and the methodology used to calculate its reserve margin

20 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

bull (1) To identify the most cost-effective resource portfolio utilities shall evaluate all feasible supply and demand-side resource options on a consistent and comparable basis and take into consideration risk and uncertainty (including but not limited to financial competitive reliability operational fuel supply price volatility and anticipated environmental regulation) The utility shall evaluate the cost of each resource through its projected life with a life-cycle or similar analysis The utility shall also consider and describe ways to mitigate ratepayer risk

bull (2) Each electric utility shall provide a summary of how the following factors were considered in or affected the development of resource portfoliosndash (d) fuel diversityndash (e) susceptibility to fuel interdependenciesndash (g) system reliability and planning reserve margin requirements

17739(G) ndash Integrated Resource Plans for Electric Utilities

21 EPE Proprietary Material

22 EPE Proprietary Material

System Operations Resource Planning amp Management

Sales ------Interchange----- Purchases

Load + Losses Power Generated

Demand SupplyFrequency

Decrease Increase

60- +

bull Federal Energy Regulation Commission (FERC)bull North American Electric Reliability Corporation

(NERC)

Regulatory Authorities

23 EPE Proprietary Material

Reliability Of The Bulk Power System

24 EPE Proprietary Material

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 8: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Integrated Resource PlanPublic Advisory Process

8 EPE Proprietary Material

bull The purpose of the public advisory process is to receive public input and solicit public commentary concerning resource planning and related resource acquisition issues

bull - NM Rule 17739 (H)

bull Meeting Schedules and Agendasndash Participants may add their own presentations to the

agendas for the January and February meetings

Integrated Resource Plan

Operational ConsiderationsRequirements for Future Resourcesand Assessment of need for Additional Resources

Omar GallegosDirector of Resource Planning and Management

9 EPE Proprietary Material

bull System operational behaviorbull Import limitationsbull Contingency reserves and reserve marginbull Variability of intermittent renewable resourcesbull Generation dispatch and baseload generationbull Age of retirement resources

Resource Planning Considerations forOperational Reliability

10 EPE Proprietary Material

11 EPE Proprietary Material

bull Bulk Electric System flows across tie-lines dictated by load draw and physics

bull As load varies imports change almost immediately and then local generation adjusts to reset balance

bull Need to maintain imports within transmission limitations

bull Example of transmission line overloading resulting in a blackout

Operational ReliabilitySystem Operational Dynamic Behavior

EP

E L

oad

Loca

l Gen

Impo

rts Res

12 EPE Proprietary Material

bull System model for Capacity Expansion analysis

bull Limitations on purchased power and sales

Operational ReliabilityModelling of Transmission Import Limitations

13 EPE Proprietary Material

bull Cover unexpected loss of generator resource

bull Cover unexpected loss of transmission line (n-1)

bull Cover load growth over forecast

Operational ReliabilityImportance of Reserve Requirements

EP

E L

oad

Loca

l Gen

Impo

rts Res

14 EPE Proprietary Material

bull Need to consider how to mitigate if penetration of renewables increasesbull There are options need to be conscious of intermittency

Operational ReliabilityImpacts of Intermittent Generation Resources

15 EPE Proprietary Material

Operational ReliabilityDispatch Characteristics and Dispatch Order

bull Dispatch order

bull Resource dispatch ability

bull Resource ability for daily cycling

bull Safety Personnel safety working in proximity to high pressure systems

bull Reliability Availability and risk of catastrophic failure

bull Cost Effectiveness Unit characteristics and resulting operating cost Including consideration for any investment required for life extensions

Generation Unit AgeOperational Reliability

EPE Proprietary Material16

Questions

17 EPE Proprietary Material

Integrated Resource PlanSystem Operations ndash Reliability Import Limits

and Balancing

Dave HawkinsVice President - System Operations Resource

Planning amp Management

18 EPE Proprietary Material

bull I most cost effective resource portfolio means those supply-side resources and demand-side resources that minimize the net present value of revenue requirements proposed by the utility to meet electric system demand during the planning period consistent with reliability and risk considerations

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17737 - Definitions

19 EPE Proprietary Material

bull (6) amount of capacity obtained or to be obtained through existing purchased power contracts or agreements relied upon by the utility including the fuel type if known and contract duration

bull (8) amount of capacity and if applicable energy provided annually to the utility pursuant to wheeling agreements and the duration of such wheeling agreements

bull (10) reserve margin and reserve reliability requirements (eg FERC power pool etc) with which the utility must comply and the methodology used to calculate its reserve margin

20 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

bull (1) To identify the most cost-effective resource portfolio utilities shall evaluate all feasible supply and demand-side resource options on a consistent and comparable basis and take into consideration risk and uncertainty (including but not limited to financial competitive reliability operational fuel supply price volatility and anticipated environmental regulation) The utility shall evaluate the cost of each resource through its projected life with a life-cycle or similar analysis The utility shall also consider and describe ways to mitigate ratepayer risk

bull (2) Each electric utility shall provide a summary of how the following factors were considered in or affected the development of resource portfoliosndash (d) fuel diversityndash (e) susceptibility to fuel interdependenciesndash (g) system reliability and planning reserve margin requirements

17739(G) ndash Integrated Resource Plans for Electric Utilities

21 EPE Proprietary Material

22 EPE Proprietary Material

System Operations Resource Planning amp Management

Sales ------Interchange----- Purchases

Load + Losses Power Generated

Demand SupplyFrequency

Decrease Increase

60- +

bull Federal Energy Regulation Commission (FERC)bull North American Electric Reliability Corporation

(NERC)

Regulatory Authorities

23 EPE Proprietary Material

Reliability Of The Bulk Power System

24 EPE Proprietary Material

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 9: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Integrated Resource Plan

Operational ConsiderationsRequirements for Future Resourcesand Assessment of need for Additional Resources

Omar GallegosDirector of Resource Planning and Management

9 EPE Proprietary Material

bull System operational behaviorbull Import limitationsbull Contingency reserves and reserve marginbull Variability of intermittent renewable resourcesbull Generation dispatch and baseload generationbull Age of retirement resources

Resource Planning Considerations forOperational Reliability

10 EPE Proprietary Material

11 EPE Proprietary Material

bull Bulk Electric System flows across tie-lines dictated by load draw and physics

bull As load varies imports change almost immediately and then local generation adjusts to reset balance

bull Need to maintain imports within transmission limitations

bull Example of transmission line overloading resulting in a blackout

Operational ReliabilitySystem Operational Dynamic Behavior

EP

E L

oad

Loca

l Gen

Impo

rts Res

12 EPE Proprietary Material

bull System model for Capacity Expansion analysis

bull Limitations on purchased power and sales

Operational ReliabilityModelling of Transmission Import Limitations

13 EPE Proprietary Material

bull Cover unexpected loss of generator resource

bull Cover unexpected loss of transmission line (n-1)

bull Cover load growth over forecast

Operational ReliabilityImportance of Reserve Requirements

EP

E L

oad

Loca

l Gen

Impo

rts Res

14 EPE Proprietary Material

bull Need to consider how to mitigate if penetration of renewables increasesbull There are options need to be conscious of intermittency

Operational ReliabilityImpacts of Intermittent Generation Resources

15 EPE Proprietary Material

Operational ReliabilityDispatch Characteristics and Dispatch Order

bull Dispatch order

bull Resource dispatch ability

bull Resource ability for daily cycling

bull Safety Personnel safety working in proximity to high pressure systems

bull Reliability Availability and risk of catastrophic failure

bull Cost Effectiveness Unit characteristics and resulting operating cost Including consideration for any investment required for life extensions

Generation Unit AgeOperational Reliability

EPE Proprietary Material16

Questions

17 EPE Proprietary Material

Integrated Resource PlanSystem Operations ndash Reliability Import Limits

and Balancing

Dave HawkinsVice President - System Operations Resource

Planning amp Management

18 EPE Proprietary Material

bull I most cost effective resource portfolio means those supply-side resources and demand-side resources that minimize the net present value of revenue requirements proposed by the utility to meet electric system demand during the planning period consistent with reliability and risk considerations

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17737 - Definitions

19 EPE Proprietary Material

bull (6) amount of capacity obtained or to be obtained through existing purchased power contracts or agreements relied upon by the utility including the fuel type if known and contract duration

bull (8) amount of capacity and if applicable energy provided annually to the utility pursuant to wheeling agreements and the duration of such wheeling agreements

bull (10) reserve margin and reserve reliability requirements (eg FERC power pool etc) with which the utility must comply and the methodology used to calculate its reserve margin

20 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

bull (1) To identify the most cost-effective resource portfolio utilities shall evaluate all feasible supply and demand-side resource options on a consistent and comparable basis and take into consideration risk and uncertainty (including but not limited to financial competitive reliability operational fuel supply price volatility and anticipated environmental regulation) The utility shall evaluate the cost of each resource through its projected life with a life-cycle or similar analysis The utility shall also consider and describe ways to mitigate ratepayer risk

bull (2) Each electric utility shall provide a summary of how the following factors were considered in or affected the development of resource portfoliosndash (d) fuel diversityndash (e) susceptibility to fuel interdependenciesndash (g) system reliability and planning reserve margin requirements

17739(G) ndash Integrated Resource Plans for Electric Utilities

21 EPE Proprietary Material

22 EPE Proprietary Material

System Operations Resource Planning amp Management

Sales ------Interchange----- Purchases

Load + Losses Power Generated

Demand SupplyFrequency

Decrease Increase

60- +

bull Federal Energy Regulation Commission (FERC)bull North American Electric Reliability Corporation

(NERC)

Regulatory Authorities

23 EPE Proprietary Material

Reliability Of The Bulk Power System

24 EPE Proprietary Material

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 10: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

bull System operational behaviorbull Import limitationsbull Contingency reserves and reserve marginbull Variability of intermittent renewable resourcesbull Generation dispatch and baseload generationbull Age of retirement resources

Resource Planning Considerations forOperational Reliability

10 EPE Proprietary Material

11 EPE Proprietary Material

bull Bulk Electric System flows across tie-lines dictated by load draw and physics

bull As load varies imports change almost immediately and then local generation adjusts to reset balance

bull Need to maintain imports within transmission limitations

bull Example of transmission line overloading resulting in a blackout

Operational ReliabilitySystem Operational Dynamic Behavior

EP

E L

oad

Loca

l Gen

Impo

rts Res

12 EPE Proprietary Material

bull System model for Capacity Expansion analysis

bull Limitations on purchased power and sales

Operational ReliabilityModelling of Transmission Import Limitations

13 EPE Proprietary Material

bull Cover unexpected loss of generator resource

bull Cover unexpected loss of transmission line (n-1)

bull Cover load growth over forecast

Operational ReliabilityImportance of Reserve Requirements

EP

E L

oad

Loca

l Gen

Impo

rts Res

14 EPE Proprietary Material

bull Need to consider how to mitigate if penetration of renewables increasesbull There are options need to be conscious of intermittency

Operational ReliabilityImpacts of Intermittent Generation Resources

15 EPE Proprietary Material

Operational ReliabilityDispatch Characteristics and Dispatch Order

bull Dispatch order

bull Resource dispatch ability

bull Resource ability for daily cycling

bull Safety Personnel safety working in proximity to high pressure systems

bull Reliability Availability and risk of catastrophic failure

bull Cost Effectiveness Unit characteristics and resulting operating cost Including consideration for any investment required for life extensions

Generation Unit AgeOperational Reliability

EPE Proprietary Material16

Questions

17 EPE Proprietary Material

Integrated Resource PlanSystem Operations ndash Reliability Import Limits

and Balancing

Dave HawkinsVice President - System Operations Resource

Planning amp Management

18 EPE Proprietary Material

bull I most cost effective resource portfolio means those supply-side resources and demand-side resources that minimize the net present value of revenue requirements proposed by the utility to meet electric system demand during the planning period consistent with reliability and risk considerations

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17737 - Definitions

19 EPE Proprietary Material

bull (6) amount of capacity obtained or to be obtained through existing purchased power contracts or agreements relied upon by the utility including the fuel type if known and contract duration

bull (8) amount of capacity and if applicable energy provided annually to the utility pursuant to wheeling agreements and the duration of such wheeling agreements

bull (10) reserve margin and reserve reliability requirements (eg FERC power pool etc) with which the utility must comply and the methodology used to calculate its reserve margin

20 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

bull (1) To identify the most cost-effective resource portfolio utilities shall evaluate all feasible supply and demand-side resource options on a consistent and comparable basis and take into consideration risk and uncertainty (including but not limited to financial competitive reliability operational fuel supply price volatility and anticipated environmental regulation) The utility shall evaluate the cost of each resource through its projected life with a life-cycle or similar analysis The utility shall also consider and describe ways to mitigate ratepayer risk

bull (2) Each electric utility shall provide a summary of how the following factors were considered in or affected the development of resource portfoliosndash (d) fuel diversityndash (e) susceptibility to fuel interdependenciesndash (g) system reliability and planning reserve margin requirements

17739(G) ndash Integrated Resource Plans for Electric Utilities

21 EPE Proprietary Material

22 EPE Proprietary Material

System Operations Resource Planning amp Management

Sales ------Interchange----- Purchases

Load + Losses Power Generated

Demand SupplyFrequency

Decrease Increase

60- +

bull Federal Energy Regulation Commission (FERC)bull North American Electric Reliability Corporation

(NERC)

Regulatory Authorities

23 EPE Proprietary Material

Reliability Of The Bulk Power System

24 EPE Proprietary Material

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 11: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

11 EPE Proprietary Material

bull Bulk Electric System flows across tie-lines dictated by load draw and physics

bull As load varies imports change almost immediately and then local generation adjusts to reset balance

bull Need to maintain imports within transmission limitations

bull Example of transmission line overloading resulting in a blackout

Operational ReliabilitySystem Operational Dynamic Behavior

EP

E L

oad

Loca

l Gen

Impo

rts Res

12 EPE Proprietary Material

bull System model for Capacity Expansion analysis

bull Limitations on purchased power and sales

Operational ReliabilityModelling of Transmission Import Limitations

13 EPE Proprietary Material

bull Cover unexpected loss of generator resource

bull Cover unexpected loss of transmission line (n-1)

bull Cover load growth over forecast

Operational ReliabilityImportance of Reserve Requirements

EP

E L

oad

Loca

l Gen

Impo

rts Res

14 EPE Proprietary Material

bull Need to consider how to mitigate if penetration of renewables increasesbull There are options need to be conscious of intermittency

Operational ReliabilityImpacts of Intermittent Generation Resources

15 EPE Proprietary Material

Operational ReliabilityDispatch Characteristics and Dispatch Order

bull Dispatch order

bull Resource dispatch ability

bull Resource ability for daily cycling

bull Safety Personnel safety working in proximity to high pressure systems

bull Reliability Availability and risk of catastrophic failure

bull Cost Effectiveness Unit characteristics and resulting operating cost Including consideration for any investment required for life extensions

Generation Unit AgeOperational Reliability

EPE Proprietary Material16

Questions

17 EPE Proprietary Material

Integrated Resource PlanSystem Operations ndash Reliability Import Limits

and Balancing

Dave HawkinsVice President - System Operations Resource

Planning amp Management

18 EPE Proprietary Material

bull I most cost effective resource portfolio means those supply-side resources and demand-side resources that minimize the net present value of revenue requirements proposed by the utility to meet electric system demand during the planning period consistent with reliability and risk considerations

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17737 - Definitions

19 EPE Proprietary Material

bull (6) amount of capacity obtained or to be obtained through existing purchased power contracts or agreements relied upon by the utility including the fuel type if known and contract duration

bull (8) amount of capacity and if applicable energy provided annually to the utility pursuant to wheeling agreements and the duration of such wheeling agreements

bull (10) reserve margin and reserve reliability requirements (eg FERC power pool etc) with which the utility must comply and the methodology used to calculate its reserve margin

20 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

bull (1) To identify the most cost-effective resource portfolio utilities shall evaluate all feasible supply and demand-side resource options on a consistent and comparable basis and take into consideration risk and uncertainty (including but not limited to financial competitive reliability operational fuel supply price volatility and anticipated environmental regulation) The utility shall evaluate the cost of each resource through its projected life with a life-cycle or similar analysis The utility shall also consider and describe ways to mitigate ratepayer risk

bull (2) Each electric utility shall provide a summary of how the following factors were considered in or affected the development of resource portfoliosndash (d) fuel diversityndash (e) susceptibility to fuel interdependenciesndash (g) system reliability and planning reserve margin requirements

17739(G) ndash Integrated Resource Plans for Electric Utilities

21 EPE Proprietary Material

22 EPE Proprietary Material

System Operations Resource Planning amp Management

Sales ------Interchange----- Purchases

Load + Losses Power Generated

Demand SupplyFrequency

Decrease Increase

60- +

bull Federal Energy Regulation Commission (FERC)bull North American Electric Reliability Corporation

(NERC)

Regulatory Authorities

23 EPE Proprietary Material

Reliability Of The Bulk Power System

24 EPE Proprietary Material

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 12: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

12 EPE Proprietary Material

bull System model for Capacity Expansion analysis

bull Limitations on purchased power and sales

Operational ReliabilityModelling of Transmission Import Limitations

13 EPE Proprietary Material

bull Cover unexpected loss of generator resource

bull Cover unexpected loss of transmission line (n-1)

bull Cover load growth over forecast

Operational ReliabilityImportance of Reserve Requirements

EP

E L

oad

Loca

l Gen

Impo

rts Res

14 EPE Proprietary Material

bull Need to consider how to mitigate if penetration of renewables increasesbull There are options need to be conscious of intermittency

Operational ReliabilityImpacts of Intermittent Generation Resources

15 EPE Proprietary Material

Operational ReliabilityDispatch Characteristics and Dispatch Order

bull Dispatch order

bull Resource dispatch ability

bull Resource ability for daily cycling

bull Safety Personnel safety working in proximity to high pressure systems

bull Reliability Availability and risk of catastrophic failure

bull Cost Effectiveness Unit characteristics and resulting operating cost Including consideration for any investment required for life extensions

Generation Unit AgeOperational Reliability

EPE Proprietary Material16

Questions

17 EPE Proprietary Material

Integrated Resource PlanSystem Operations ndash Reliability Import Limits

and Balancing

Dave HawkinsVice President - System Operations Resource

Planning amp Management

18 EPE Proprietary Material

bull I most cost effective resource portfolio means those supply-side resources and demand-side resources that minimize the net present value of revenue requirements proposed by the utility to meet electric system demand during the planning period consistent with reliability and risk considerations

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17737 - Definitions

19 EPE Proprietary Material

bull (6) amount of capacity obtained or to be obtained through existing purchased power contracts or agreements relied upon by the utility including the fuel type if known and contract duration

bull (8) amount of capacity and if applicable energy provided annually to the utility pursuant to wheeling agreements and the duration of such wheeling agreements

bull (10) reserve margin and reserve reliability requirements (eg FERC power pool etc) with which the utility must comply and the methodology used to calculate its reserve margin

20 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

bull (1) To identify the most cost-effective resource portfolio utilities shall evaluate all feasible supply and demand-side resource options on a consistent and comparable basis and take into consideration risk and uncertainty (including but not limited to financial competitive reliability operational fuel supply price volatility and anticipated environmental regulation) The utility shall evaluate the cost of each resource through its projected life with a life-cycle or similar analysis The utility shall also consider and describe ways to mitigate ratepayer risk

bull (2) Each electric utility shall provide a summary of how the following factors were considered in or affected the development of resource portfoliosndash (d) fuel diversityndash (e) susceptibility to fuel interdependenciesndash (g) system reliability and planning reserve margin requirements

17739(G) ndash Integrated Resource Plans for Electric Utilities

21 EPE Proprietary Material

22 EPE Proprietary Material

System Operations Resource Planning amp Management

Sales ------Interchange----- Purchases

Load + Losses Power Generated

Demand SupplyFrequency

Decrease Increase

60- +

bull Federal Energy Regulation Commission (FERC)bull North American Electric Reliability Corporation

(NERC)

Regulatory Authorities

23 EPE Proprietary Material

Reliability Of The Bulk Power System

24 EPE Proprietary Material

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 13: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

13 EPE Proprietary Material

bull Cover unexpected loss of generator resource

bull Cover unexpected loss of transmission line (n-1)

bull Cover load growth over forecast

Operational ReliabilityImportance of Reserve Requirements

EP

E L

oad

Loca

l Gen

Impo

rts Res

14 EPE Proprietary Material

bull Need to consider how to mitigate if penetration of renewables increasesbull There are options need to be conscious of intermittency

Operational ReliabilityImpacts of Intermittent Generation Resources

15 EPE Proprietary Material

Operational ReliabilityDispatch Characteristics and Dispatch Order

bull Dispatch order

bull Resource dispatch ability

bull Resource ability for daily cycling

bull Safety Personnel safety working in proximity to high pressure systems

bull Reliability Availability and risk of catastrophic failure

bull Cost Effectiveness Unit characteristics and resulting operating cost Including consideration for any investment required for life extensions

Generation Unit AgeOperational Reliability

EPE Proprietary Material16

Questions

17 EPE Proprietary Material

Integrated Resource PlanSystem Operations ndash Reliability Import Limits

and Balancing

Dave HawkinsVice President - System Operations Resource

Planning amp Management

18 EPE Proprietary Material

bull I most cost effective resource portfolio means those supply-side resources and demand-side resources that minimize the net present value of revenue requirements proposed by the utility to meet electric system demand during the planning period consistent with reliability and risk considerations

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17737 - Definitions

19 EPE Proprietary Material

bull (6) amount of capacity obtained or to be obtained through existing purchased power contracts or agreements relied upon by the utility including the fuel type if known and contract duration

bull (8) amount of capacity and if applicable energy provided annually to the utility pursuant to wheeling agreements and the duration of such wheeling agreements

bull (10) reserve margin and reserve reliability requirements (eg FERC power pool etc) with which the utility must comply and the methodology used to calculate its reserve margin

20 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

bull (1) To identify the most cost-effective resource portfolio utilities shall evaluate all feasible supply and demand-side resource options on a consistent and comparable basis and take into consideration risk and uncertainty (including but not limited to financial competitive reliability operational fuel supply price volatility and anticipated environmental regulation) The utility shall evaluate the cost of each resource through its projected life with a life-cycle or similar analysis The utility shall also consider and describe ways to mitigate ratepayer risk

bull (2) Each electric utility shall provide a summary of how the following factors were considered in or affected the development of resource portfoliosndash (d) fuel diversityndash (e) susceptibility to fuel interdependenciesndash (g) system reliability and planning reserve margin requirements

17739(G) ndash Integrated Resource Plans for Electric Utilities

21 EPE Proprietary Material

22 EPE Proprietary Material

System Operations Resource Planning amp Management

Sales ------Interchange----- Purchases

Load + Losses Power Generated

Demand SupplyFrequency

Decrease Increase

60- +

bull Federal Energy Regulation Commission (FERC)bull North American Electric Reliability Corporation

(NERC)

Regulatory Authorities

23 EPE Proprietary Material

Reliability Of The Bulk Power System

24 EPE Proprietary Material

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 14: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

14 EPE Proprietary Material

bull Need to consider how to mitigate if penetration of renewables increasesbull There are options need to be conscious of intermittency

Operational ReliabilityImpacts of Intermittent Generation Resources

15 EPE Proprietary Material

Operational ReliabilityDispatch Characteristics and Dispatch Order

bull Dispatch order

bull Resource dispatch ability

bull Resource ability for daily cycling

bull Safety Personnel safety working in proximity to high pressure systems

bull Reliability Availability and risk of catastrophic failure

bull Cost Effectiveness Unit characteristics and resulting operating cost Including consideration for any investment required for life extensions

Generation Unit AgeOperational Reliability

EPE Proprietary Material16

Questions

17 EPE Proprietary Material

Integrated Resource PlanSystem Operations ndash Reliability Import Limits

and Balancing

Dave HawkinsVice President - System Operations Resource

Planning amp Management

18 EPE Proprietary Material

bull I most cost effective resource portfolio means those supply-side resources and demand-side resources that minimize the net present value of revenue requirements proposed by the utility to meet electric system demand during the planning period consistent with reliability and risk considerations

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17737 - Definitions

19 EPE Proprietary Material

bull (6) amount of capacity obtained or to be obtained through existing purchased power contracts or agreements relied upon by the utility including the fuel type if known and contract duration

bull (8) amount of capacity and if applicable energy provided annually to the utility pursuant to wheeling agreements and the duration of such wheeling agreements

bull (10) reserve margin and reserve reliability requirements (eg FERC power pool etc) with which the utility must comply and the methodology used to calculate its reserve margin

20 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

bull (1) To identify the most cost-effective resource portfolio utilities shall evaluate all feasible supply and demand-side resource options on a consistent and comparable basis and take into consideration risk and uncertainty (including but not limited to financial competitive reliability operational fuel supply price volatility and anticipated environmental regulation) The utility shall evaluate the cost of each resource through its projected life with a life-cycle or similar analysis The utility shall also consider and describe ways to mitigate ratepayer risk

bull (2) Each electric utility shall provide a summary of how the following factors were considered in or affected the development of resource portfoliosndash (d) fuel diversityndash (e) susceptibility to fuel interdependenciesndash (g) system reliability and planning reserve margin requirements

17739(G) ndash Integrated Resource Plans for Electric Utilities

21 EPE Proprietary Material

22 EPE Proprietary Material

System Operations Resource Planning amp Management

Sales ------Interchange----- Purchases

Load + Losses Power Generated

Demand SupplyFrequency

Decrease Increase

60- +

bull Federal Energy Regulation Commission (FERC)bull North American Electric Reliability Corporation

(NERC)

Regulatory Authorities

23 EPE Proprietary Material

Reliability Of The Bulk Power System

24 EPE Proprietary Material

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 15: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

15 EPE Proprietary Material

Operational ReliabilityDispatch Characteristics and Dispatch Order

bull Dispatch order

bull Resource dispatch ability

bull Resource ability for daily cycling

bull Safety Personnel safety working in proximity to high pressure systems

bull Reliability Availability and risk of catastrophic failure

bull Cost Effectiveness Unit characteristics and resulting operating cost Including consideration for any investment required for life extensions

Generation Unit AgeOperational Reliability

EPE Proprietary Material16

Questions

17 EPE Proprietary Material

Integrated Resource PlanSystem Operations ndash Reliability Import Limits

and Balancing

Dave HawkinsVice President - System Operations Resource

Planning amp Management

18 EPE Proprietary Material

bull I most cost effective resource portfolio means those supply-side resources and demand-side resources that minimize the net present value of revenue requirements proposed by the utility to meet electric system demand during the planning period consistent with reliability and risk considerations

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17737 - Definitions

19 EPE Proprietary Material

bull (6) amount of capacity obtained or to be obtained through existing purchased power contracts or agreements relied upon by the utility including the fuel type if known and contract duration

bull (8) amount of capacity and if applicable energy provided annually to the utility pursuant to wheeling agreements and the duration of such wheeling agreements

bull (10) reserve margin and reserve reliability requirements (eg FERC power pool etc) with which the utility must comply and the methodology used to calculate its reserve margin

20 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

bull (1) To identify the most cost-effective resource portfolio utilities shall evaluate all feasible supply and demand-side resource options on a consistent and comparable basis and take into consideration risk and uncertainty (including but not limited to financial competitive reliability operational fuel supply price volatility and anticipated environmental regulation) The utility shall evaluate the cost of each resource through its projected life with a life-cycle or similar analysis The utility shall also consider and describe ways to mitigate ratepayer risk

bull (2) Each electric utility shall provide a summary of how the following factors were considered in or affected the development of resource portfoliosndash (d) fuel diversityndash (e) susceptibility to fuel interdependenciesndash (g) system reliability and planning reserve margin requirements

17739(G) ndash Integrated Resource Plans for Electric Utilities

21 EPE Proprietary Material

22 EPE Proprietary Material

System Operations Resource Planning amp Management

Sales ------Interchange----- Purchases

Load + Losses Power Generated

Demand SupplyFrequency

Decrease Increase

60- +

bull Federal Energy Regulation Commission (FERC)bull North American Electric Reliability Corporation

(NERC)

Regulatory Authorities

23 EPE Proprietary Material

Reliability Of The Bulk Power System

24 EPE Proprietary Material

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 16: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

bull Safety Personnel safety working in proximity to high pressure systems

bull Reliability Availability and risk of catastrophic failure

bull Cost Effectiveness Unit characteristics and resulting operating cost Including consideration for any investment required for life extensions

Generation Unit AgeOperational Reliability

EPE Proprietary Material16

Questions

17 EPE Proprietary Material

Integrated Resource PlanSystem Operations ndash Reliability Import Limits

and Balancing

Dave HawkinsVice President - System Operations Resource

Planning amp Management

18 EPE Proprietary Material

bull I most cost effective resource portfolio means those supply-side resources and demand-side resources that minimize the net present value of revenue requirements proposed by the utility to meet electric system demand during the planning period consistent with reliability and risk considerations

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17737 - Definitions

19 EPE Proprietary Material

bull (6) amount of capacity obtained or to be obtained through existing purchased power contracts or agreements relied upon by the utility including the fuel type if known and contract duration

bull (8) amount of capacity and if applicable energy provided annually to the utility pursuant to wheeling agreements and the duration of such wheeling agreements

bull (10) reserve margin and reserve reliability requirements (eg FERC power pool etc) with which the utility must comply and the methodology used to calculate its reserve margin

20 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

bull (1) To identify the most cost-effective resource portfolio utilities shall evaluate all feasible supply and demand-side resource options on a consistent and comparable basis and take into consideration risk and uncertainty (including but not limited to financial competitive reliability operational fuel supply price volatility and anticipated environmental regulation) The utility shall evaluate the cost of each resource through its projected life with a life-cycle or similar analysis The utility shall also consider and describe ways to mitigate ratepayer risk

bull (2) Each electric utility shall provide a summary of how the following factors were considered in or affected the development of resource portfoliosndash (d) fuel diversityndash (e) susceptibility to fuel interdependenciesndash (g) system reliability and planning reserve margin requirements

17739(G) ndash Integrated Resource Plans for Electric Utilities

21 EPE Proprietary Material

22 EPE Proprietary Material

System Operations Resource Planning amp Management

Sales ------Interchange----- Purchases

Load + Losses Power Generated

Demand SupplyFrequency

Decrease Increase

60- +

bull Federal Energy Regulation Commission (FERC)bull North American Electric Reliability Corporation

(NERC)

Regulatory Authorities

23 EPE Proprietary Material

Reliability Of The Bulk Power System

24 EPE Proprietary Material

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 17: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Questions

17 EPE Proprietary Material

Integrated Resource PlanSystem Operations ndash Reliability Import Limits

and Balancing

Dave HawkinsVice President - System Operations Resource

Planning amp Management

18 EPE Proprietary Material

bull I most cost effective resource portfolio means those supply-side resources and demand-side resources that minimize the net present value of revenue requirements proposed by the utility to meet electric system demand during the planning period consistent with reliability and risk considerations

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17737 - Definitions

19 EPE Proprietary Material

bull (6) amount of capacity obtained or to be obtained through existing purchased power contracts or agreements relied upon by the utility including the fuel type if known and contract duration

bull (8) amount of capacity and if applicable energy provided annually to the utility pursuant to wheeling agreements and the duration of such wheeling agreements

bull (10) reserve margin and reserve reliability requirements (eg FERC power pool etc) with which the utility must comply and the methodology used to calculate its reserve margin

20 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

bull (1) To identify the most cost-effective resource portfolio utilities shall evaluate all feasible supply and demand-side resource options on a consistent and comparable basis and take into consideration risk and uncertainty (including but not limited to financial competitive reliability operational fuel supply price volatility and anticipated environmental regulation) The utility shall evaluate the cost of each resource through its projected life with a life-cycle or similar analysis The utility shall also consider and describe ways to mitigate ratepayer risk

bull (2) Each electric utility shall provide a summary of how the following factors were considered in or affected the development of resource portfoliosndash (d) fuel diversityndash (e) susceptibility to fuel interdependenciesndash (g) system reliability and planning reserve margin requirements

17739(G) ndash Integrated Resource Plans for Electric Utilities

21 EPE Proprietary Material

22 EPE Proprietary Material

System Operations Resource Planning amp Management

Sales ------Interchange----- Purchases

Load + Losses Power Generated

Demand SupplyFrequency

Decrease Increase

60- +

bull Federal Energy Regulation Commission (FERC)bull North American Electric Reliability Corporation

(NERC)

Regulatory Authorities

23 EPE Proprietary Material

Reliability Of The Bulk Power System

24 EPE Proprietary Material

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 18: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Integrated Resource PlanSystem Operations ndash Reliability Import Limits

and Balancing

Dave HawkinsVice President - System Operations Resource

Planning amp Management

18 EPE Proprietary Material

bull I most cost effective resource portfolio means those supply-side resources and demand-side resources that minimize the net present value of revenue requirements proposed by the utility to meet electric system demand during the planning period consistent with reliability and risk considerations

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17737 - Definitions

19 EPE Proprietary Material

bull (6) amount of capacity obtained or to be obtained through existing purchased power contracts or agreements relied upon by the utility including the fuel type if known and contract duration

bull (8) amount of capacity and if applicable energy provided annually to the utility pursuant to wheeling agreements and the duration of such wheeling agreements

bull (10) reserve margin and reserve reliability requirements (eg FERC power pool etc) with which the utility must comply and the methodology used to calculate its reserve margin

20 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

bull (1) To identify the most cost-effective resource portfolio utilities shall evaluate all feasible supply and demand-side resource options on a consistent and comparable basis and take into consideration risk and uncertainty (including but not limited to financial competitive reliability operational fuel supply price volatility and anticipated environmental regulation) The utility shall evaluate the cost of each resource through its projected life with a life-cycle or similar analysis The utility shall also consider and describe ways to mitigate ratepayer risk

bull (2) Each electric utility shall provide a summary of how the following factors were considered in or affected the development of resource portfoliosndash (d) fuel diversityndash (e) susceptibility to fuel interdependenciesndash (g) system reliability and planning reserve margin requirements

17739(G) ndash Integrated Resource Plans for Electric Utilities

21 EPE Proprietary Material

22 EPE Proprietary Material

System Operations Resource Planning amp Management

Sales ------Interchange----- Purchases

Load + Losses Power Generated

Demand SupplyFrequency

Decrease Increase

60- +

bull Federal Energy Regulation Commission (FERC)bull North American Electric Reliability Corporation

(NERC)

Regulatory Authorities

23 EPE Proprietary Material

Reliability Of The Bulk Power System

24 EPE Proprietary Material

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 19: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

bull I most cost effective resource portfolio means those supply-side resources and demand-side resources that minimize the net present value of revenue requirements proposed by the utility to meet electric system demand during the planning period consistent with reliability and risk considerations

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17737 - Definitions

19 EPE Proprietary Material

bull (6) amount of capacity obtained or to be obtained through existing purchased power contracts or agreements relied upon by the utility including the fuel type if known and contract duration

bull (8) amount of capacity and if applicable energy provided annually to the utility pursuant to wheeling agreements and the duration of such wheeling agreements

bull (10) reserve margin and reserve reliability requirements (eg FERC power pool etc) with which the utility must comply and the methodology used to calculate its reserve margin

20 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

bull (1) To identify the most cost-effective resource portfolio utilities shall evaluate all feasible supply and demand-side resource options on a consistent and comparable basis and take into consideration risk and uncertainty (including but not limited to financial competitive reliability operational fuel supply price volatility and anticipated environmental regulation) The utility shall evaluate the cost of each resource through its projected life with a life-cycle or similar analysis The utility shall also consider and describe ways to mitigate ratepayer risk

bull (2) Each electric utility shall provide a summary of how the following factors were considered in or affected the development of resource portfoliosndash (d) fuel diversityndash (e) susceptibility to fuel interdependenciesndash (g) system reliability and planning reserve margin requirements

17739(G) ndash Integrated Resource Plans for Electric Utilities

21 EPE Proprietary Material

22 EPE Proprietary Material

System Operations Resource Planning amp Management

Sales ------Interchange----- Purchases

Load + Losses Power Generated

Demand SupplyFrequency

Decrease Increase

60- +

bull Federal Energy Regulation Commission (FERC)bull North American Electric Reliability Corporation

(NERC)

Regulatory Authorities

23 EPE Proprietary Material

Reliability Of The Bulk Power System

24 EPE Proprietary Material

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 20: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

bull (6) amount of capacity obtained or to be obtained through existing purchased power contracts or agreements relied upon by the utility including the fuel type if known and contract duration

bull (8) amount of capacity and if applicable energy provided annually to the utility pursuant to wheeling agreements and the duration of such wheeling agreements

bull (10) reserve margin and reserve reliability requirements (eg FERC power pool etc) with which the utility must comply and the methodology used to calculate its reserve margin

20 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

bull (1) To identify the most cost-effective resource portfolio utilities shall evaluate all feasible supply and demand-side resource options on a consistent and comparable basis and take into consideration risk and uncertainty (including but not limited to financial competitive reliability operational fuel supply price volatility and anticipated environmental regulation) The utility shall evaluate the cost of each resource through its projected life with a life-cycle or similar analysis The utility shall also consider and describe ways to mitigate ratepayer risk

bull (2) Each electric utility shall provide a summary of how the following factors were considered in or affected the development of resource portfoliosndash (d) fuel diversityndash (e) susceptibility to fuel interdependenciesndash (g) system reliability and planning reserve margin requirements

17739(G) ndash Integrated Resource Plans for Electric Utilities

21 EPE Proprietary Material

22 EPE Proprietary Material

System Operations Resource Planning amp Management

Sales ------Interchange----- Purchases

Load + Losses Power Generated

Demand SupplyFrequency

Decrease Increase

60- +

bull Federal Energy Regulation Commission (FERC)bull North American Electric Reliability Corporation

(NERC)

Regulatory Authorities

23 EPE Proprietary Material

Reliability Of The Bulk Power System

24 EPE Proprietary Material

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 21: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

bull (1) To identify the most cost-effective resource portfolio utilities shall evaluate all feasible supply and demand-side resource options on a consistent and comparable basis and take into consideration risk and uncertainty (including but not limited to financial competitive reliability operational fuel supply price volatility and anticipated environmental regulation) The utility shall evaluate the cost of each resource through its projected life with a life-cycle or similar analysis The utility shall also consider and describe ways to mitigate ratepayer risk

bull (2) Each electric utility shall provide a summary of how the following factors were considered in or affected the development of resource portfoliosndash (d) fuel diversityndash (e) susceptibility to fuel interdependenciesndash (g) system reliability and planning reserve margin requirements

17739(G) ndash Integrated Resource Plans for Electric Utilities

21 EPE Proprietary Material

22 EPE Proprietary Material

System Operations Resource Planning amp Management

Sales ------Interchange----- Purchases

Load + Losses Power Generated

Demand SupplyFrequency

Decrease Increase

60- +

bull Federal Energy Regulation Commission (FERC)bull North American Electric Reliability Corporation

(NERC)

Regulatory Authorities

23 EPE Proprietary Material

Reliability Of The Bulk Power System

24 EPE Proprietary Material

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 22: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

22 EPE Proprietary Material

System Operations Resource Planning amp Management

Sales ------Interchange----- Purchases

Load + Losses Power Generated

Demand SupplyFrequency

Decrease Increase

60- +

bull Federal Energy Regulation Commission (FERC)bull North American Electric Reliability Corporation

(NERC)

Regulatory Authorities

23 EPE Proprietary Material

Reliability Of The Bulk Power System

24 EPE Proprietary Material

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 23: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

bull Federal Energy Regulation Commission (FERC)bull North American Electric Reliability Corporation

(NERC)

Regulatory Authorities

23 EPE Proprietary Material

Reliability Of The Bulk Power System

24 EPE Proprietary Material

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 24: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Reliability Of The Bulk Power System

24 EPE Proprietary Material

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 25: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Western Interconnection Balancing Authorities

25 EPE Proprietary Material

Boundaries are approximate and for illustrative purposes only

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 26: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

26 EPE Proprietary Material

bull Regulating Reserves (Real Time Power Balancing)ndash BAL-001

bull ldquoTo control Interconnection frequency within defined limitsrdquondash BAL-005-02b

bull ldquoensures that all facilities and load electrically synchronized to the Interconnection are included within the metered boundary of a Balancing Area so that balancing of resources and demand can be achievedrdquo

ndash BAL-006-2bull ldquohellipprocess for monitoring Balancing Authorities to ensure that

over the long term Balancing Authority Areas do not excessively depend on other Balancing Authority Areas in the Interconnection for meeting their demand or Interchange obligationsrdquo

Operating Reserves ndash Generation Needed Above Current LoadNERC Reliability Standards

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 27: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

27 EPE Proprietary Material

bull Contingency Reserves (Replacement Power due to Loss of Generation)ndash BAL-002

bull ldquohellipto ensure the Balancing Authority is able to utilize its Contingency Reserve to balance resources and demand and return Interconnection frequency within the defined limits following a Reportable Disturbancerdquo

ndash BAL-002-WECCbull ldquoTo specify the quantity and types of Contingency Reserve required to

ensure reliability under normal and abnormal conditionsrdquobull Frequency Response (Replacement Power due to Grid

Disturbance)ndash BAL-003

bull ldquoTo require sufficient Frequency Response from the Balancing Authority to maintain Interconnection Frequency within predefined bounds by arresting frequency deviations and supporting frequency until the frequency is restoredhelliprdquo

NERC Reliability Standards Continued

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 28: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

28 EPE Proprietary Material

bull Real Time Assessment of System Conditionsndash TOP-001-3

bull ldquoTo prevent instability uncontrolled separation or Cascading outages that adversely impact the reliability of the Interconnection by ensuring prompt action to prevent or mitigate such occurrencesrdquo R13 Each Transmission Operator shall ensure that a Real-time

Assessment is performed at least once every 30 minutes R14 Each Transmission Operator shall initiate its Operating

Plan to mitigate a SOL exceedance identified as part of its Real-time monitoring or Real-time Assessment

R15 Each Transmission Operator shall inform its Reliability Coordinator of actions taken to return the System to within limits when a SOL has been exceeded

NERC Reliability Standards Continued

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 29: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Load Duration Curve with Operating Reserves

29 EPE Proprietary Material

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200

0 3 6 8 11

14

17

20

22

25

28

31

33

36

39

42

45

47

50

53

56

59

61

64

67

70

73

75

78

81

84

86

89

92

95

98

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 30: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

bull Ability to meet operating reserve determined by the generators ramp ratendash ldquoThe rate expressed in megawatts per minute that a generator changes

its outputrdquobull Aggregate of individual generators ramp rates provide operating reserve

capability Examplendash Newman Unit 1 3 MWminndash Rio Grande Unit 8 5 MWminndash Total 8 MWmin

bull EPErsquos Montana Units and Rio Grande Unit 9 contribute to reserves even when not synchronized to the electric grid (50 MWmin ramp rates)

Meeting Operating Reserves - EPErsquos Local Generation

80 MW Contingency Reserves in 10 minutes

30 EPE Proprietary Material

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 31: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Regulating Reserves System Load vs Solar

31 EPE Proprietary Material

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 32: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Regulating Reserves System Load vs Solar

32 EPE Proprietary Material

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 33: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Regulating Reserves System Load vs Solar

33 EPE Proprietary Material

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 34: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Contingency Reserves - Southwest Reserve Sharing Group

34 EPE Proprietary Material

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 35: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Frequency Response - 2011 San Diego Blackout

35 EPE Proprietary Material

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 36: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

36 EPE Proprietary Material

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 37: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

EPE amp Southern New Mexico Import Capabilities

- 100

TEP

EPE1492 MW local

gen (Net)

PNM

SPP

37 EPE Proprietary Material

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 38: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Questions

38 EPE Proprietary Material

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 39: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Integrated Resource PlanExisting Conventional Resources and System Generation

Retirement Plan and Process

Andy RamirezVice President - Power Generation

39 EPE Proprietary Material

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 40: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

bull C Description of existing resources The utilityrsquos description of its existing resources used to serve its jurisdictional retail load at the time the IRP is filed shall includendash (1) name(s) and location(s) of utility-owned generation

facilitiesndash (2) rated capacity of utility-owned generation facilitiesndash (5) existing generation facilitiesrsquo expected retirement datesndash (7) estimated in-service dates for utility-owned generation

facilities for which a certificate of public convenience and necessity (CCN) has been granted but which are not in-service

40 EPE Proprietary Material

1773 NMAC ndash Integrated Resource Plans for Electric Utilities17739(C) ndash Integrated Resource Plans for Electric Utilities

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 41: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

ndash (12)(a) the utility shall provide the percentage of kilowatt-hours generated by each fuel used by the utility on its existing system for the latest year for which such information is available

ndash (13) a summary of back-up fuel capabilities and options

41 EPE Proprietary Material

17739(C) ndash Integrated Resource Plans for Electric Utilities

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 42: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

EPE Local GenerationRio Grande Power Plantbull Unit 6 ndash Steam Turbine ndash 50 MW 1957bull Unit 7 ndash Steam Turbine ndash 50 MW 1958bull Unit 8 ndash Steam Turbine ndash 150 MW 1972bull Unit 9 LMS 100 ndash Gas Turbine ndash 88 MW 2013

Montana Power Plantbull Unit 1 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 2 LMS 100 ndash Gas Turbine ndash 89 MW 2015bull Unit 3 LMS 100 ndash Gas Turbine ndash 89 MW 2016bull Unit 4 LMS 100 ndash Gas Turbine ndash 89 MW 2016

Copper Power Plantbull Unit 1 ndash Gas Turbine ndash 64 MW 1980

42 EPE Proprietary Material

Newman Power Plantbull Unit 1 ndash Steam Turbine ndash 80 MW 1960 bull Unit 2 ndash Steam Turbine ndash 80 MW 1963bull Unit 3 ndash Steam Turbine ndash 100MW 1966bull Unit 4 2x1 CC configuration ndash 220MW

bull Unit 4 GT1 ndash Gas Turbine ndash 70 MW 1975 bull Unit 4 GT2 ndash Gas Turbine ndash 70 MW 1975bull Unit 4 STM ndash Steam Turbine ndash 80 MW 1975bull Unit 4 1x1 CC configuration ndash 110 MW

bull Unit 5 2x1 CC configuration ndash 282 MWbull Unit 5 GT3 ndash Gas Turbine ndash 70 MW 2009 bull Unit 5 GT4 ndash Gas Turbine ndash 70 MW 2009bull Unit 5 STM ndash Steam Turbine ndash 142 MW 2011bull Unit 5 1x1 CC configuration ndash 141 MW

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 43: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

EPE GenerationRemote Generationbull Palo Verde AZ-Nuclear ndash 633 MW

Local Generationbull Newman TX-GasOil ndash 762 MWbull Copper TX-Gas ndash 64 MWbull Rio Grande NM-Gas ndash 338 MWbull Montana Power TX-GasOil ndash 356 MW

Total EPE ndash 2153 MW

43 EPE Proprietary Material

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 44: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

EPE GenerationBaseload ndash Nuclear (633 MW)bull Generator online at full load 24x7bull Generators and reactors not designed for cycling onoffbull Generators and reactors not designed for ramping output updown

Baseload ndash Conventional Steamer (481 MW)bull Boiler produce high-pressure steam to turndrive turbine for generatorbull Operations result in mechanical stresses and strains due to pressures and temperaturebull Establish operating boundaries for minimum downtime and minimum runtime to mitigate mechanical

impact of stresses and potential fatigue due to cyclingbull Generators brought online for continuous run days (typically weeks at time)bull Lower ramp rates (lag time for boiler to change steam pressure to ramp)

44 EPE Proprietary Material

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 45: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

EPE GenerationIntermediate ndash Combined Cycle (505 MW)bull Combustion Turbine (ldquoCTrdquo) and Steam Turbine (ldquoSTrdquo)bull CT ndash gas combustion drives turbinebull Exhaust heat from CT is utilized to create steam to turn Steam Turbine (supplemented by gas)bull Most efficient of gas-fired generationbull May be cycled more often newer designs maybe cycled daily (however it comes with impacts)bull Faster ramp rates than Boiler Steamers

Peaking ndash Combustion Turbine (506 MW)bull Gas combustion drives turbinebull No steam ndash makes for quicker start timesbull Fastest ramp rates in ldquogas-firedrdquo categorybull No high-pressure steam componentsbull Maybe cycled daily and even multiple times per day

45 EPE Proprietary Material

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 46: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

EPE GenerationCurrent Plan for Upcoming Retirements

Unit Name Fuel Type Gen Type CategoryCommission

YearAge

Current Planned

Retirement

Age at Retirement

Rio Grande 7 Gas Conventional Steam Baseload 1958 59 2022 64Newman 1 Gas Conventional Steam Baseload 1960 57 2022 62Newman 2 Gas Conventional Steam Baseload 1963 54 2022 59Newman 3 Gas Conventional Steam Baseload 1966 51 2026 60Newman 4 Gas Combined Cycle Intermediate 1975 42 2026 51Copper Gas Combustion Turbine Peaking 1980 37 2030 50Rio Grande 8 Gas Conventional Steam Baseload 1972 45 2033 61

46 EPE Proprietary Material

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 47: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

47 EPE Proprietary Material

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 48: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

48 EPE Proprietary Material

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 49: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

bull How adding renewable affects existing systemndash Intermittent resources ndash new CC amp new CTrsquos

bull PeakingNonpeaking Unitsbull Baseload ndash then vs nowbull Idling generation unitsbull Fuel Costs

Conclusion

49 EPE Proprietary Material

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 50: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Questions

50 EPE Proprietary Material

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 51: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

51 EPE Proprietary Material

Integrated Resource PlanTransmission and Distribution Systems

Overview and Projects

Clay DoyleVice President ndash Transmission and Distribution

and System Planning

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 52: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Outline - Transmission and Distribution

52 EPE Proprietary Material

bull Overview ndash Transmission amp Distributiono The ldquoBig Picturerdquo

o Generation ndashgt Transmission ndashgt Distribution -gt Serviceo ldquoThe Gridrdquo and EPErsquos place in the Grid

bull The IRP Rule Requirements

bull System Planning ndash TampDo Planning studies and methodologies per NERC reliability standardso TampD System Expansion Plano Distribution System Expansion Plan

bull Metering amp Metering Systemso Automated Meter Reading (AMR) System ndash EPErsquos Systemo Advanced Metering Infrastructure (AMI) Advanced Metering Systems (AMS)o AMIAMS vs AMR functionality costbenefits

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 53: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

(11) existing transmission capabilities

(a) the utility shall report its existing and under-construction transmission facilities of 115 kV and above including associated switching stations and terminal facilities the utility shall specifically identify the location and extent of transfer capability limitations on its transmission network that may affect the future siting of supply-side resources

(b) the utility shall describe all transmission planning or coordination groups to which it is a party including state and regional transmission groups transmission companies and coordinating councils with which the utility may be associated

IRP Rule Requirements1773 NMAC17739

53 EPE Proprietary Material

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 54: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Confidential

Palo VerdePhoenix AZ

Clayrsquos CasitaMesilla NM

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 55: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 56: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

In 30 seconds or less1 We Generate

2 We Inflate

3 We Transport

4 We deflate

5 We distribute

6 We deflate again

7 We Hook you up

Overview ndash Transmission amp DistributionThe BIG PICTURE From the Generator to your home

TRANSMISSION SYSTEM DISTRIBUTION SYSTEM

Substation Substation

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 57: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Substation

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 58: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

TRANSMISSION NETWORK or

ldquoGRIDrdquo

Overview ndash TransmissionThe BIG PICTURE From the Generator to your home

NERC

FERC

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 59: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Reliability Of The Bulk Power System

59 EPE Proprietary Material

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 60: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

bull El Paso Electric (EPE) is a member of the Western Electricity Coordinating Council (WECC)

bull WECC Interconnections (Dynamic)ndash Public Service of New Mexico (PNM) ndash 345 kV amp 115 kVndash Tri-State Generation and Transmission - 115 kVndash Tucson Electric Power (TEP)- 345 kV

bull Southwest Power Pool (SPP) ndash (Non Dynamic) ndash Excel Energy (SPS) ndash 345 kV

Overview ndash TransmissionEPE ndash How Wersquore Connected

60 EPE Proprietary Material

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 61: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)

61 EPE Proprietary Material

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 62: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

OverviewSW Area EHV Transmission

62 EPE Proprietary Material

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 63: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

OverviewEPE Service Territory (Control Area)

63 EPE Proprietary Material

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 64: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Substation 138

kVDistribution Line

Distribution Transformer

138 kV

Overview ndash DistributionEPE ndash From the Substation to your home

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 65: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

DISTRIBTUION is a RADIAL

SYSTEM

Transmission

Transmission

Transmission

Overview ndash DistributionEPE ndash From the Substation to your home

Transmission

PRCPUCT

NECstandards

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 66: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

EPErsquos Standard Distribution Voltagesbull 239kV (24kV)bull 138kV (14kV)bull 42kV (4kV)

Overview ndash DistributionEPE ndash From the Substation to your home

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 67: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

System Planning (Transmission)FERC Requirements

67 EPE Proprietary Material

bull Order No 888 (1996) Requires open access to transmission facilities for third parties to address undue discrimination and to bring more efficient lower cost power to the Nations electricity consumers ndash OPEN ACCESS

bull Order No 890 (2007) Requires coordinated open and transparent transmission planning processes to address undue discrimination ndash COORIDNATED amp OPEN PLANNING

bull Order No 1000 (2011) Requires transmission planning at the regional level adhere to the precepts of Order 890 to consider and evaluate possible transmission alternatives by third parties and produce a regional transmission plan requires the cost of transmission solutions chosen to meet regional transmission needs to be allocated to beneficiaries ndash REGIONAL PLANNING WITH COSTBENEFIT ALLOCATION

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 68: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

System Planning (Transmission)FERC Requirements

68 EPE Proprietary Material

Order No 890 (2007)

bull EPE modified its Open Access Transmission Tariff (OATT) in 2008 to reflect the principals in Order 890bull coordination openness transparency information exchange comparability

dispute resolution and economic planning

bull EPE holds bi-annual Stakeholder meetings tobull Discuss upcoming Plansbull Discuss results of Plansbull Obtain input from Stakeholders

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 69: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

System Planning (Transmission)FERC Requirements

69 EPE Proprietary Material

Order No 1000 (2011)

bull Requires EPE to a participate in regional planning process and a regional Plan

bull Requires a methodology for cost allocation be developed for regional projects that request and meet the standards for cost allocation

bull EPE amended its OATT and filed it at FERC to incorporate FERC Order 1000 requirements

bull Since the original filing EPE has made additional compliance filings incorporating additional FERC Orders

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 70: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

System Planning (Transmission)FERC Requirements

70 EPE Proprietary Material

Cost Allocation Principals (FERC Order 1000)bull Costs allocated ldquoroughly commensuraterdquo with estimated benefits

bull Those who do not benefit from the transmission project are not allocated any costs

bull Benefit‐to‐cost thresholds must not exclude projects with significant net benefits

bull Cost allocation methods and identification of beneficiaries must be transparent

bull Different allocation methods could apply to different types of transmission facilities

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 71: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

System Planning (10yr System Expansion Plan ndash TampD)

System Expansion Plan - Drivers Bi-Annual with material changes annually Load Forecast Distribution Expansion Plan Loads amp Resources Report Operational constraints and contingencies FERCNERCWECC PampO requirements

Distribution Expansion Plan - Drivers Annual Customer load growthprojections System maintenance amp reliability MaintainImprove Operational

capabilities

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 72: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Interconnections Ownership and Limitations

72 EPE Proprietary Material

System Planning (Transmission)

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 73: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

EPE Service Territory (Control Area)

73 EPE Proprietary Material

System Planning (Transmission)

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 74: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

74

Transmission System Planning1 Power Flow Model

System is modeled to Substation level (not to Distribution level)Validation

Using known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 75: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

System PlanningEMS Power Flow Modeling Validation Contingencies

75 EPE Proprietary Material

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 76: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

76

Transmission System Planning2 Power Flow Model Validation

ValidationUsing known EMS Data Voltages amp Currents Substation load Line loading Line status Generation - local Generation - Import Generator capacity

Does the model truly represent the physical system

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 77: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

77

Transmission System Planning3 Power System Analysis

Both ldquoReal Timerdquo with EMS Data or Planning Studies using worst case loading

PLANNING ANALYSIS(The Game of ldquoWhat ifrdquo)

Utilizing the WECC powerflow models for the Heavy Summer seasons (EPE worst case) for each year of the 10 Year Planning Horizon EPE modelsbull Newest Load Forecast from

EPE Load Forecast Department

bull Newest Loads amp Resources from EPE Resource Development Department

EPE produces a 10 Year Transmission Plan on an Annual Basisbull Plan calls for Facilities

required to maintain EPE system operation within WECCNERC Criteria

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 78: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

78

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will new generation andor new transmission impact the system

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 79: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

79

Transmission System Planning3a Power System Analysis ndash Interconnection Studies

How will it impact the system System Planners propose solutions for contingencies

bull New Generationbull New Transmission

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 80: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

80

Transmission System Planning4 Power System Analysis ndash Compliance to Standards

NERC Standards(Your system must be able to do this)

TPL-001 N-0 (All Facilities in Service) All voltages and conductor loadings must be within normal limitsTPL-002 N-1 (Loss of Facility Line) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of loadTPL-003 N-2 (Loss of Multiple Facilities) All voltages and conductor loadings must be within emergency limits and the system shall remain stable with no cascading or uncontrolled loss of load

System Contingency Analysis ndash What will happen in N-0 N-1 N-2

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 81: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

81

Transmission System Planning5 Power System Analysis ndash ResolutionRecommendations

Stress Testing the Existing System ndash How do you plan to fix it

System Planners propose solutions for contingencies

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 82: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

82

Transmission System Planning4 Project Review and Scoping

System Planning prepares the description and motivation of each Transmission level projecto EPE driven Compliance Reliability Load Growth projectso Power Generation interconnection driven projectso Externally driven projects (TX-DOT UP-Railroad etc)o Planned Maintenance projects

Stakeholders considers each projectPurpose Priority Time-line Feasibility Options amp Alternatives LandPermit Acquisition Resource Availability Material Acquisition System Access Availability Cost Estimates etc

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 83: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

83

Transmission System Planning5 Projects List Resource Allocation Budgeting Project Management

System Planning project list based on Stakeholder Scoping Meeting Resultso EPE driven Compliance Reliability Load Growth Maintenance projectso Power Generation interconnection driven projectso Externally driven (TX-DOT UP-Railroad etc)o Break-In projects (AMRAD-Eddy Line Arroyo PST)

Stakeholders considers each projectResource AllocationAssignment Budget Prep Project Plan etc

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 84: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

System PlanningEPErsquos 10yr TampD System Expansion Plan

84 EPE Proprietary Material

bull Updated annually

bull Complies with requirements of and supports all FERC Orders

bull Defines near-term and future system changesbull Accommodate new generation interconnectionsbull Meet future load growthbull Meetmaintainimprove operational capabilities bull Meetmaintainimprove reliability requirements

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 85: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

System PlanningEPErsquos 10yr TampD System Expansion Plan - Projects

85 EPE Proprietary Material

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 86: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

System PlanningEPErsquos 10yr System Expansion Plan ndash TampD

86 EPE Proprietary Material

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 87: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

bull Automated Meter Readingbull Advanced (Smart) Meters

ndash Advanced Meter Reading (AMR) ndash Advanced Metering Infrastructure (AMI)ndash Advanced Metering System (AMS)

Metering amp Metering Systems

87 EPE Proprietary Material

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 88: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Automated Meter Reading - AMRResidential

Itron ndash Automated Meter Reading system (AMR) AMR Deployment 95 complete Meters are one way radio frequency (RF) communication close proximity reading One reading kWh residential per month up to three register values with polyphase

(maximum)bull Cost

Meter cost $35meter approximately $70meter installedbull Benefits

Improved accuracy Improved read efficiency (personnel vehicles etc) Improved safety

Metering amp Metering SystemsMetering ndash EPErsquos AMR Metering System

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 89: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Public Utility Commission of Texas (PUCT)2007

AMIAMS Requirementso Automated or Remote Meter Readingo Two-Way Communicationso Remote Disconnection amp Connection for meterso Capability to Time-Stamp Meter Datao Real-Time Access to Customer Usage Datao Means for Providing Price Signals to Customerso Interval Data ndash 15 Minutes or Shortero On-Board Storage of Meter Datao Communication Capability Beyond Meter (load control)o Must Comply with Open Standards and ANSI C1222

Metering amp Metering SystemsAdvanced Metering Systems

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 90: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

MDMS (back office stuff) Requirementso Data Security

o Data Validation amp Storage

o Data Communication - CustomerWeb Access

o Pricing TranslationSignals

o Billing Interface

o Customer Service Interface

o Data Volume Capability

Metering amp Metering SystemsAdvanced Metering Systems

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 91: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

AMIAMS Costs Estimateso Metering (Itron) $165 - $197 per meter $20meter installedo Comm It Interface MDMS cost allocation per meter $ (hosted)o 390000 meterso Expected Cost Range Estimate

($197 + $20) meter x 390000 meters = $846 MM + plus hosting

AMIAMS Benefits (Cost Mitigation)o Service Order Reductions (Disconnects amp Reconnects)o Energy Diversion (Theft) Reductiono Outage Managemento Demand Controlo Other

Metering amp Metering SystemsAMIAMS ndash Development CostBenefit

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 92: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

92

Metering amp Metering SystemsFunctionality AMR vs AMIAMS

$846 MM plus hosting cost

X

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 93: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

bull Big Picture ndash Generation -gt Transmission -gt Distribution -gt Home

bull Transmission is Networked System defines the ldquoGRIDrdquobull Distribution is Radial System between Sub and your homebull System Planning (Transmission)

ndash Power Flow Modeling Validating What ifrsquos FERCNERC rules Contingency Analysis Issues amp resolution etc

ndash Project list and prioritiesbull Transmission Line Construction

ndash Right of Way acquisition timebull Metering amp Metering System

ndash AMR vs AMIAMS functionality amp costndash AMR meters are not AMIAMS meters

Conclusion

93 EPE Proprietary Material

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 94: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

94 EPE Proprietary Material

QUESTIONS

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 95: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Discussion

95 EPE Proprietary Material

Please return feedback form to Facilitator before you leave or email to NMIRPepelectriccom

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 96: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

bull EPErsquos IRP website httpswwwepelectriccomcommunity2017-18-public-advisory-group-meetings

bull E-mail NMIRPepelectriccom to be added to the Public Advisory Group e-mail distribution list You will receive updates on available presentation material and future meetings Questions can also be submitted to this e-mail

For More Information

96 EPE Proprietary Material

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 97: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Acronyms

97 EPE Proprietary Material

AC - Alternating Current MW - MegaWatts (1000 kW)ACE - Area Control Error NERC - North American Reliability CouncilAMI - Advanced Metering Infrastructure NMAC - New Mexico Administrative Code

AMR - Automated Meter Reading NMPRC - New Mexico Public Regulation CommissionCC - Combined Cycle OATT - Open Access Transmission Tariff

CCN - certificate of convenience and necessity PDES - Phelps Dodge Energy ServicesCT - Combustion Turbine PNM - Public Service Company of New MexicoDC - Direct Current ROW - Right of Way

EPE - El paso Electric Company or EPEC SNMIC - Southern New Mexico Import CapabilityEPIC - El Paso Import Capability SOL - System Operating LimitFERC - Federal Energy Regulation Commission SRP - Salt River Project

FM - Freeport McMoRan SPP - Southwest Power PoolGen - Generation ST - Steam TurbineIRP - Integrated Resource Plan TEP - Tucscon Electric Power CompanyKV - Kilovolt (1000 volts) WECC - Western Electricity Coordinating Council

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 98: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

98 EPE Proprietary Material

Automatic Generation Control - Equipment that automatically adjusts generation in a Balancing Authority Area from a central location to maintain the Balancing Authorityrsquos interchange schedule plus Frequency Bias AGC may also accommodate automatic inadvertent payback and time error correction

Area Control Error - The instantaneous difference between a Balancing Authorityrsquos net actual and scheduled interchange taking into account the effects of Frequency Bias correction for meter error and Automatic Time Error Correction (ATEC) if operating in the ATEC mode ATEC is only applicable to Balancing Authorities in the Western Interconnection

Balancing Authority - The responsible entity that integrates resource plans ahead of time maintains load-interchange-generation balance within a Balancing Authority Area and supports Interconnection frequency in real time

Balancing Area - The collection of generation transmission and loads within the metered boundaries of the Balancing Authority The Balancing Authority maintains load-resource balance within this area

Bulk Power System - (A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof) and (B) electric energy from generation facilities needed to maintain transmission system reliability

NERC Glossary of Terms

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 99: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Cascading - The uncontrolled successive loss of System Elements triggered by an incident at any location Cascading results in widespread electric service interruption that cannot be restrained from sequentially spreading beyond an area predetermined by studies

Contingency Reserves - The provision of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard (DCS) and other NERC and Regional Reliability Organization contingency requirements

Direct Control Load Management - Demand-Side Management that is under the direct control of the system operator DCLM may control the electric supply to individual appliances or equipment on customer premises DCLM as defined here does not include Interruptible Demand

Frequency Response - The ability of a system or elements of the system to react or respond to a change in system frequency

NERC Glossary of Terms

99 EPE Proprietary Material

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 100: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

100 EPE Proprietary Material

Interconnection - A geographic area in which the operation of Bulk Power System components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other components within the system to maintain Reliable Operation of the Facilities within their control

Net Actual Interchange - The algebraic sum of all metered interchange over all interconnections between two physically Adjacent Balancing Authority Areas

Net Scheduled Interchange - The algebraic sum of all Interchange Schedules across a given path or between Balancing Authorities for a given period or instant in time

Non-Spinning Reserve - 1 That generating reserve not connected to the system but capable of serving demand within a specified time2 Interruptible load that can be removed from the system in a specified time

Operating Reserve - That capability above firm system demand required to provide for regulation load forecasting error equipment forced and scheduled outages and local area protection It consists of spinning and non-spinning reserve

NERC Glossary of Terms

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms
Page 101: Integrated Resource Plan Public Advisory GroupJul 06, 2017  · Retirement Plan and Process ... presentation other than statements of historical information are "forward- looking statements"

Operating Reserve - Spinning The portion of Operating Reserve consisting of Generation synchronized to the system and fully available to serve load within the Disturbance Recovery Period following the contingency event or Load fully removable from the system within the Disturbance Recovery Period following the contingency event

Ramp Rate ndash The rate expressed in megawatts per minute that a generator changes its output

Regulating Reserve - An amount of reserve responsive to Automatic Generation Control which is sufficient to provide normal regulating margin

Reportable Disturbance - Any event that causes an ACE change greater than or equal to 80 of a Balancing Authorityrsquos or reserve sharing grouprsquos most severe contingency

System Operating Limit - The value (such as MW Mvar amperes frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria

NERC Glossary of Terms

101 EPE Proprietary Material

  • Slide Number 1
  • Meeting Agenda
  • Welcome and Introduction
  • Safety and Basics
  • Safe Harbor Statement
  • Ground Rules
  • Updated Schedule ndash Public Advisory Group Meetings
  • Integrated Resource Plan
  • Slide Number 9
  • Resource Planning Considerations forOperational Reliability
  • Slide Number 11
  • Slide Number 12
  • Slide Number 13
  • Slide Number 14
  • Slide Number 15
  • Operational Reliability
  • Questions
  • Slide Number 18
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 20
  • Slide Number 21
  • System Operations Resource Planning amp Management
  • Regulatory Authorities
  • Reliability Of The Bulk Power System
  • Western Interconnection Balancing Authorities
  • Slide Number 26
  • Slide Number 27
  • Slide Number 28
  • Load Duration Curve with Operating Reserves
  • Meeting Operating Reserves - EPErsquos Local Generation
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Regulating Reserves System Load vs Solar
  • Contingency Reserves - Southwest Reserve Sharing Group
  • Frequency Response - 2011 San Diego Blackout
  • Slide Number 36
  • EPE amp Southern New Mexico Import Capabilities
  • Questions
  • Slide Number 39
  • 1773 NMAC ndash Integrated Resource Plans for Electric Utilities
  • Slide Number 41
  • EPE Local Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • EPE Generation
  • Slide Number 47
  • Slide Number 48
  • Conclusion
  • Questions
  • Slide Number 51
  • Outline - Transmission and Distribution
  • IRP Rule Requirements1773 NMAC
  • Slide Number 54
  • Slide Number 55
  • Slide Number 56
  • Slide Number 57
  • Slide Number 58
  • Reliability Of The Bulk Power System
  • Overview ndash Transmission
  • Western Electricity Coordinating Council(the ldquoWestern Gridrdquo)
  • Overview
  • Overview
  • Overview ndash Distribution
  • Overview ndash Distribution
  • Overview ndash Distribution
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (Transmission)
  • System Planning (10yr System Expansion Plan ndash TampD)
  • Slide Number 72
  • Slide Number 73
  • Slide Number 74
  • System Planning
  • Slide Number 76
  • Slide Number 77
  • Slide Number 78
  • Slide Number 79
  • Slide Number 80
  • Slide Number 81
  • Slide Number 82
  • Slide Number 83
  • System Planning
  • System Planning
  • System Planning
  • Metering amp Metering Systems
  • Slide Number 88
  • Slide Number 89
  • Slide Number 90
  • Slide Number 91
  • Slide Number 92
  • Conclusion
  • Slide Number 94
  • Discussion
  • For More Information
  • Acronyms
  • Slide Number 98
  • NERC Glossary of Terms
  • Slide Number 100
  • NERC Glossary of Terms