nelson bacalao - pr

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Nelson Bacalao Senior Manager, Consulting Siemens Power Technologies International (Siemens PTI) - Network Consulting Career Highlights Dr. Bacalao is the Senior Consulting Manager of Siemens PTI Houston Office. He has over 30 years of extensive experience in providing technical and strategic consulting services to utilities, independent system operators, governments, regulators, independent project developers, and the financial community, in domestic as well as international assignments for the energy industry. He combines a rigorous academic training in engineering and business with utility, government and consulting experience in the technical, economic, and regulatory aspects of utility systems. Dr. Bacalao core competencies are in the area of Transmission and Distribution, with recent year’s emphasis in the integration of renewable generation. Experience Dr. Bacalao regularly provides consulting advice on short and long term Transmission and Distribution planning, integration of renewable generation, generation interconnections, due diligence evaluation and/or assessment of transmission and distribution utilities for banks, investors and utility management for more than 30 transmission and distribution companies in 11 countries. His assignments typically include ore or more of the following tasks: (a)system studies including load flow, stability and reliability, (b) inventory and condition assessment of T&D assets, (c) estimation of production costs and impact of new generation (usually renewable) and/or new transmission facilities, (d) formulation of expansion options and selection of optimal Capital Expenditures (CapEx) plan , (e) estimation of operating and maintenance costs (OpEx), (f) Revenue estimation, evaluation of rate structure and assessment on return on investments, and (g) formulation of medium and long-term strategic plans. Given the difficulty of transmission planning in deregulated electric sectors and the special intermittent nature of renewable generation, Dr. Bacalao has developed strong transmission planning experience under uncertainty. He has performed or supervised over 10 of these studies for systems including voltages up to 765 kV. In these studies Dr. Bacalao conducted or managed the system evaluations including the formulation of transmission expansion options, load flow and stability studies, and, most importantly, the risk evaluations to determine minimum “regret option” and hedging strategies to be followed by the interested parties. Dr. Bacalao has managed or participated in feasibility evaluations and technical due diligence analyses of numerous electric generation projects including open and combined cycle plants, hydroelectric projects, wind turbine generation, photovoltaic and large diesel plants. These studies have included: (a) definition of optimal plant size, (b) system impact studies and feasibility (transmission interconnection definition), (c) estimation of capital expenditures and construction time, (d) definition of project financing strategy, (e) projection of fuel and non fuel costs, and (f) production of projected financial pro forma statements. Dr. Bacalao has solid experience in regulation for the energy industry, with emphasis on grid codes reviews, transmission tariff formulation and periodic reviews. He has provided these types of services to regulators, investors and utilities in countries as diverse as the USA, Puerto Rico, Guyana, Mexico, Turkey, Malawi, Belize, Venezuela and South Africa. • 2006 – Present Siemens PTI: Senior Manager Consulting: Network Services. 2005 TRC Management Solutions, Executive Consultant 1999 – 2004 Stone & Webster Management Consultants, Inc., Executive Consultant 1996 – 1999 Placer Dome, Inc., Business Analyst, Corporate Development Group PREPA Ex. 6.01

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Page 1: Nelson Bacalao - Pr

Nelson BacalaoSenior Manager, Consulting

Siemens Power Technologies International (Siemens PTI) - Network Consulting

Answers for energy.

Career Highlights Dr. Bacalao is the Senior Consulting Manager of Siemens PTI Houston Office. He has over 30 years ofextensive experience in providing technical and strategic consulting services to utilities, independent systemoperators, governments, regulators, independent project developers, and the financial community, in domesticas well as international assignments for the energy industry. He combines a rigorous academic training inengineering and business with utility, government and consulting experience in the technical, economic, andregulatory aspects of utility systems. Dr. Bacalao core competencies are in the area of Transmission andDistribution, with recent year’s emphasis in the integration of renewable generation.

Experience

Dr. Bacalao regularly provides consulting advice on short and long term Transmission and Distributionplanning, integration of renewable generation, generation interconnections, due diligence evaluation and/orassessment of transmission and distribution utilities for banks, investors and utility management for morethan 30 transmission and distribution companies in 11 countries. His assignments typically include ore ormore of the following tasks: (a)system studies including load flow, stability and reliability, (b) inventory andcondition assessment of T&D assets, (c) estimation of production costs and impact of new generation (usuallyrenewable) and/or new transmission facilities, (d) formulation of expansion options and selection of optimalCapital Expenditures (CapEx) plan , (e) estimation of operating and maintenance costs (OpEx), (f) Revenueestimation, evaluation of rate structure and assessment on return on investments, and (g) formulation ofmedium and long-term strategic plans.Given the difficulty of transmission planning in deregulated electric sectors and the special intermittent natureof renewable generation, Dr. Bacalao has developed strong transmission planning experience underuncertainty. He has performed or supervised over 10 of these studies for systems including voltages up to 765kV. In these studies Dr. Bacalao conducted or managed the system evaluations including the formulation oftransmission expansion options, load flow and stability studies, and, most importantly, the risk evaluations todetermine minimum “regret option” and hedging strategies to be followed by the interested parties.

Dr. Bacalao has managed or participated in feasibility evaluations and technical due diligence analyses ofnumerous electric generation projects including open and combined cycle plants, hydroelectric projects, windturbine generation, photovoltaic and large diesel plants. These studies have included: (a) definition of optimalplant size, (b) system impact studies and feasibility (transmission interconnection definition), (c) estimationof capital expenditures and construction time, (d) definition of project financing strategy, (e) projection offuel and non fuel costs, and (f) production of projected financial pro forma statements.

Dr. Bacalao has solid experience in regulation for the energy industry, with emphasis on grid codes reviews,transmission tariff formulation and periodic reviews. He has provided these types of services to regulators,investors and utilities in countries as diverse as the USA, Puerto Rico, Guyana, Mexico, Turkey, Malawi,Belize, Venezuela and South Africa.• 2006 – Present Siemens PTI: Senior Manager Consulting: Network Services.• 2005 TRC Management Solutions, Executive Consultant• 1999 – 2004 Stone & Webster Management Consultants, Inc., Executive Consultant• 1996 – 1999 Placer Dome, Inc., Business Analyst, Corporate Development Group

PREPA Ex. 6.01

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Page 2 Siemens Energy, Inc., T&D Service SolutionsNelson Bacalao Siemens Power Technologies InternationalSenior Manager, Consulting

• 1993 – 1996 CVG Electrificación del Caroní, Advisor to the Vice-President of Planning• 1992 – 1993 Ingeniería Bucros, Partner and Manager of Special Projects• 1991 – 1992 Venezuelan Investment Fund, Manager of National Investments - Privatization of the Power Sector (on leave from EDELCA)• 1981 – 1991 CVG Electrificación del Caroní (EDELCA), Manager Special Studies Department• 1986 – 1996 Simón Bolívar University (Caracas, Venezuela), Associate Professor

Dr. Bacalao’s areas of expertise include:∂ Transmission Planning

o Load Forecastso System Assessment (load flow and stability) and Reinforcements Determination (PSS®E)o Generation Interconnection Studies / System Interconnection Studieso Capital Expenditure Determinationso Operating Expenditures Evaluationo Uncertainty and Risk Considerations (Monte Carlo Evaluations / Trade Off Risk)o Financial and Economic Model Formulationo Black Start Studieso System reliability studies.

∂ Generation Planningo Generation Transmission Deliverability Studieso System Impact Studieso Capital and Operating Expenditures Estimationo Hydroelectric, WTG and PV Modeling.o Financial and Economic Modelingo Due Diligence Evaluations

∂ Production Costingo Hydro-Thermal Dispatch Forecastso Estimation of renewable (intermittent PV & WTG) generation impacts on ancillary

services as frequency regulation, load following and reserves.∂ Distribution Planning

o Asset Inventory and Distribution System Model Creation / Updateo Area Based Load Forecasto Evaluation of Current and Forecasted System Conditions using PSS®SINCALo Capital Expenditure Evaluationso Operating Expenditure Evaluationso Reliability Studieso “Smart Grids” Technologyo Financial and Economic Modelingo Due Diligence Evaluations

∂ Power System Restructuringo Cost of Service Studies

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o Grid Code Reviewso Transmission tariff formulation, including recovery of ancillary services costs.o Regulatory Support

Education ∂ Advanced Managerial Program (PAG-VII) (one year MBA level program),Instituto de Estudios Superiores en Administración (IESA), Caracas, Venezuela, 1990

∂ PhD in Electrical Engineering, University of British Columbia, Vancouver, BC, Canada, 1987

∂ Master Engineering (Electrical), Rensselaer Polytechnic Institute, Troy, NY, 1980

∂ Electrical Engineer, Universidad Simón Bolívar, Caracas, Venezuela, 1979

ProfessionalMemberships

Dr. Bacalao is a Member of the Institute of Electrical and Electronics Engineers (IEEE), and of the Colegiode Ingenieros de Venezuela.

Publications andTechnical Papers

1. “Considerations on the use of HVDC for CREZ Transmission,” 2009 Power System Conference &Exposition, Seattle Washington (Co-authors: R. Nadira, Wayne Galli, Michael Hudson)

2. “Measuring the Performance of Distribution Utilities - A Top-Down/Bottom-Up Approach,” in Proc.2006 IEEE PES Latin American T&D C&E, Caracas, Venezuela (co-authors: R. Nadira and N.Bacalao).

3. “Strategic Assessment of Supply Options in Power Systems with Significant Supply Uncertainty,” inProc. Probabilistic Methods Applied to Power Systems (PMAPS-2004), September 12-16, 2004, IowaState University, Ames, IA, pp. 867-872 (co-authors: R. Nadira, H. Fendt, C. Dortolina, and J. DiBella).

4. “Supply Risk Analysis in Electricity Markets from the Perspective of a Large Customer,” in Proc. 2004IEEE PES General Meeting, Denver, CO, June 2004, pp. 180-185, vol. 1 (co-authors: H. Fendt, R.Nadira, C. Dortolina, and J. Di Bella).

5. "PCAP Program Adapted for Islanding Studies: Integrated Resource Planning in Developing Countries- A Novel Approach,” presentation in panel session of IEEE PES General Meeting, Denver, 2004 (co-authors: C. Dortolina and M.P. De Arizón).

6. “Evaluation of Transmission Tariff Methods in Restructured Power Markets,” in Proc. IEEE 2003 PESGeneral Meeting, Toronto, ON, Canada, July 2003, vol. 2 (co-authors: R. Nadira, H.M. Merrill, and C.Dortolina).

7. “Evaluation and Design for Compact Transmission Lines,” 4 th Jornadas Hispano-Lusas, Oporto-Portugal, July 1995 (co-author: M.P. De Arizón).

8. "A Model for the Synchronous Machine using Frequency Response Measurements,” IEEE, SanFrancisco, CA, 1994 (co-author: M.P. De Arizón).

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9. "Study for the Insulation Level Optimisation of 230 kV and 115 kV Substations,” IEEE, Latincon 1992(co-author: M.P. De Arizón).

10. "A New Methodology for the Optimisation of Insulation Levels in 230 kV and 115 kV Substations,”CIGRE, Argentina, 1991 (co-author: M.P. De Arizón).

11. “Transient Stability Studies for the Venezuelan Bulk Transmission System Considering HVDC links,”Erlac-Cigre Foz de Iguazu, Brazil, 1988 (co-authors: G. Pesse, J.M. Aller, M.P. De Arizón and A.Negrin).

12. “Optimal Tuning of Power System Stabilizers,” IV Power System Congress, Puerto La Cruz,Venezuela, 1986.

13. “Fast Stability Simulations Based on Frequency Responses,” IV Power System Congress, Puerto LaCruz, Venezuela, 1986.

14. “Modeling of an HVDC Link in a Load Flow and Stability Program,” IV Power System Congress,Puerto La Cruz, Venezuela, 1986.

PREPA Ex. 6.01

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Nelson BacalaoSenior Manager, Consulting

02-06

Appendix A

REPRESENTATIVECONSULTING ASSIGNMENTS

This appendix provides description of selectedprojects that Dr Bacalao has either directlyconducted and/or directed.

The Appendix is separated by areas:

∂ Transmission Planning Studies

∂ Generation Planning and Evaluation Studies

∂ Distribution Planning & Assessment Studies.

∂ Studies for Specification and Tests forTransmission Equipment.

∂ Regulatory and Contract Reviews.

Transmission Planning Studies∂ Renewable Integration Generation Study.

Puerto Rico Electric Power Authority –Thisstudy determined the maximum amounts ofrenewable generation that could be safely andeconomically integrated in the island ofPuerto Rico. The study evaluated thereliability of the system considering theperformance during steady state, short termstability and long term dynamics. The studycovered the impacts on the dispatchconsidering the characteristics of the PuertoRico Generating fleet and determined possiblelevels of renewable curtailment at differentpenetration levels. Dr Bacalao was themanager of the study and lead technicalconsultant.

∂ Integrated Resource Plan (IRP) andReliability Assessment. Puerto Rico ElectricPower Authority (PREPA) – As acontinuation of the study above; This study

produced an IRP for PREPA selecting theoptimal generation expansion plan taking intoconsideration the need to integrate renewablegeneration and very importantly the locationof the generation resources to maintain thereliability of the system. The study consistedin formulation of various expansion optionsand futures for those variables not underPREPAS control (e.g. demand growth, naturalgas availability, etc) which then wereevaluated using production cost models(PROMOD) and the critical dispatchesverified with steady state, dynamic stabilityand long term dynamics simulations. DrBacalao was the manager of the study andlead transmission consultant.

∂ Oncor System Impact Studies – OncorElectric Delivery, Inc. Dr. Bacalao hasmanaged multiple system impact studies (SIS)for the interconnection of new generation tothe ONCOR system. The studies includemodify the base case to stress the area wherethe project is located, steady state contingencyanalysis with and without the project andstability analysis. As a result of the analysissystem reinforcements are identified.

∂ FERC 754 – Oncor Electric Delivery, Inc. Dr.Bacalao managed a study mandated by FERCfor the determination of critical substations inONCOR system. The study first evaluated foreach substation that met an importancecriteria defined by voltage and number oflines, the impact in the stability of the systemof losing the entire substation after a threephase short-circuit cleared remotely. Thestudy looked at angular instability, the numberof generators that would trip offline and un-damped oscillations. Based on this studycritical substation were identified for itsprotection to be enhanced to minimize thepossibility of the need for a remote clearing ofa fault. In addition the study evaluated theCritical Clearing Time for s single line to

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ground, again followed by losing the entiresubstation. Dr Bacalao was the manager of thestudy.

∂ PREPA –Renewable Generation WheelingStudy. PREPA the Utility serving the islandof Puerto Rico will provide transmissionwheeling service to renewable generation inthe island. In this study the impact of therenewable generation intermittency in theoperational costs was evaluated usingPROMOD®IV and rates were formulated forthe recovery of various costs including loadfollowing, frequency regulation and reserve.The study also proposed various wheelingrates structures which were simulated in detailwith the help of PSS®E and used for theselection of the optimal structure for theisland. As part of this work Dr. Bacalaoparticipated in the drafting all associatedregulations including modifications for theGrid Code to account of interconnection ofthird parties (renewable intermittentgeneration) and produced the wheelingregulations as well as all tariff schedules.

∂ CREZ Transmission Optimization Study. Thisproject evaluated the options for deliveringapproximately 18,000 MW of wind turbinegeneration (WTG) in the plains of West Texasto the load. The study covered multiplealternatives including HVDC, 345 kV, 500kV and 765 kV as well as seriescompensation. Dr. Bacalao advised Lone StarTransmission (NextEra group company) onthe benefits and risks of the alternativesadvanced by that company and otherstakeholders using Trade-Off Risk methodsand production costing (PROMOD®IV) toevaluate impact.

∂ CREZ: Reactive Optimization Study. Thisstudy selected the optimal reactivecompensation for the recommended CREZsystem (see above) and fine-tuned the systemdesign for construction. The study wasconducted by ERCOT with the participationof the Transmission Owners and Dr Bacalaorepresented Lone Star Transmission duringthe study, including review of results and theevaluation of impacts to Lone Star’s 345 kVlines and recommendations of options that the

client could take to address the identifiedsystem impacts.

∂ Plains & Eastern – Grain Belt Express Study.These are two very large HVDC linksdeveloped by Clean Line Transmission todeliver 3,800 MW of Wind TurbineGeneration (WTG) each to the load from theSPP region (OK & KA) to the TVA systemand to AEP in PJM. The study objective wasto evaluate the steady state and dynamicstability impacts on SPP system as part of the“wires to wires” interconnection procedure.As the project has no impact during normalconditions (N-0) new methods had to bedeveloped to give assurances to the SPPmembers that all impacts had been accounted,

∂ Risk analysis of the transmissioninterconnection between the central andsouthern regions in Peru. The scope of thework included: (1) determination of themaximum capacity of the corresponding link,(2) technical and cost analysis of feasibletechnologies available to solve the congestionconstraint on the link, and (3) trade-off riskanalysis for the feasible options (includinganalysis of scenarios, for differentcombinations of plans, uncertainties andattributes).

∂ Amaila Falls Interconnection Study. 2011Guyana Power and Light (GPL.) This studyevaluated the interconnection of a largehydroelectric plant (Amaila Falls) to theGuyana Power System. The study includedsteady state impacts, short circuit and stabilityas well as the definition of reinforcements inthe medium and long term.

∂ Technical Assistance for the Bini à WarakPower Plant, Cameroon— for Ministry ofEnergy and Water Resources (MINEE),Cameroon. Financial and technical advisoryassistance for the development of a 75MWhydroelectric power plant at Bini à Warak (theProject). The study included the formulationof various transmission options in order toincrease the deliverability to markets andminimize the possibility of spilling energywhile balancing the capital investments. Anapproximate energy dispatch was conducted

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as part of this evaluation.∂ Belize Electricity Limited Transmission

Planning and Reliability Study, Belize— forBelize Electricity Limited (BEL). Reliabilityassessment of current Belize system andalternatives considering reinforcements, inorder to improve overall system reliability andreduce impact of outages in key reliabilityindices (SAIDI, SAIDI, CAIDI) and energynot served tracked by the Regulator.Alternatives were selected by balancing thecost of energy not served versus the carryingvalue of the candidate investments.

∂ Medium and long term transmission planningof UETCL transmission system for theinterconnection of the 250 MW BujagaliHydroelectric project. Load flow, stabilityand short-circuit studies were conducted aswell as detailed economic and risk assessmentof options.

∂ Nicaragua – Polaris. System Impact study forthe San Jacinto Geothermal plant inNicaragua. The study included load flow,short circuit and stability considering theentire Central American interconnection.

∂ MERAM – Development of Short Mediumterm distribution expansion plan for theMERAM region in Turkey

∂ Evaluation of modifications of thetransmission system serving the Sacramentoand Yolo Counties in California to determineways to move several substations from onecontrol area to another and achieve physicalseparation at the 115 kV level.

∂ Studies in support of the development of theLoring Cogeneration Project in NorthernMain. These studies included evaluation ofreliability benefits to the transmission system,economic analysis and help in the preparationof presentations to the Public UtilitiesCommission.

∂ System impact study for 6 large CombinedCycle plants for several investors. Evaluationof the power deliverability of several sites indifferent NERC regions in the US and supportduring discussions with the host transmissioncompanies.

∂ Due Diligence analysis of a large generationportfolio in the Southeast United States.Power deliverability of 9 plants to selectedmarkets. Review of interconnection contractsand two PPA’s with cities.

∂ Evaluation of interconnection optionsbetween EdeC (serving the city of Caracas),and EDELCA, a large hydroelectric producer.Load flow, short circuit and stability), as wellas carrying out “top down” pricing analysisfor the economic evaluation of the postulatedinterconnection options.

∂ Feasibility study of a 400 kV substation (“LaCanoa”.) Technical and economic feasibilitystudies were carried out to select both theoptimal substation layout and its operatingvoltage (400 kV or 230 kV).

∂ Transmission expansion study of a 115 kVnetwork (in Venezuela). By means of loadflow and short circuit simulations, the projectrecommended the construction of a new400/115 kV substation. In addition,preliminary substation specifications wereprepared for the purpose of estimating itslikely cost.

∂ Technical and economic feasibility studies ofa major interconnection project betweenVenezuela and Brazil. This included voltageand technology selection (HVAC-400 kV vs.HVDC ± 500 kV), preliminary routeselection, preliminary line design, costevaluation and economic selection of the bestalternative.

∂ Selection of the best alternative (765 kV, 400kV or 230 kV) for the reinforcement of thetransmission system between the central andthe western regions of the Venezuelan powersystem.

Generation Planning & Evaluation Studies.

∂ Technical assessment of the Shiroro (600MW) hydroelectric plant and Egbin (1,230MW) thermal power plants in Nigeria. Bothplants were inspected and evaluated. Theircondition in terms of performance andreliability was assessed and the requiredinvestments to bring the plants to acceptable

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operating conditions were determined. AnO&M and capital expenditure budget wasproduced for the economic evaluation of theplants. Also for Shiroro the hydrologicalconditions at the plant’s site were evaluatedand the expected ranges of future productiondetermined.

∂ Development of a Cogeneration Gas FiredProject. This was a long term effort to developa Cogeneration project in Northern Maine.Major contributions to the effort included theproduction of project profiles and analysis forseveral clients, an analysis of the regulatorysituation and drafting of proposals,maintenance of the financial model andproduction of a minimum regret study to showthe advantages of the project.

∂ Evaluation of 4 Combined Cycle projectsunder construction in Arizona, New York,Michigan and Massachusetts. Evaluation ofmarket conditions and financial costs toevaluate their feasibility over the long term.

∂ Puerto Quetzal Power Project (Guatemala).Technical review and assessment of a newbarge mounted generation plant (124 MW)consisting of 7 internal combustion engines aswell of the existing two barges (2 x 55 MW).The scope of services included a review andassessment of the project design andengineering, contracts and agreements, testingrequirements, permits and environmentalconsiderations, expected revenue under thePPA and merchant sales, operating costsprojection, capital expenditures and economicprojections (pro forma). The study includedextensive sensitivity valuations including theformulation of possible market scenarios forthe “merchant” part of the project.

∂ Repowering of the Metlac Hydroelectricplant. This plant was nearing the end itscommercial life and in this project based on adetailed investigation of the hydrologicalpotential at the site various opportunities forrepowering were investigated. Theseopportunities ranged from major changes tothe catchment structures and completelyreplacing the power house to repairing theexisting units and resolving existing

bottlenecks that prevented the optimal use ofthe plant.

∂ Independent technical audit report onEletrobolt project (Brazil). In this study thecapital, O&M, schedule and pro-formafinancial were reviewed.

∂ Evaluation of the financial feasibility of theTocoma hydroelectric project in Venezuela.This task included assessing of the risks ofa1200 MW project from a private investorperspective. The overall objective was toassess the project’s bankability.

∂ Independent economic evaluation of theUribante Caparo hydroelectric complex(Venezuela) the economic merits of thecontinued investment in the project werereviewed assessing the expected return as wellas the risks associated with the postponement.

Distribution Planning & Assessment Studies.∂ Formulation of the 5 year and long term

distribution master plan for KCETAŞ thedistribution company servicing the city ofKayseri in Turkey providing service to over550,000 customers and a peak demand of 320MW. This 2 years project included allelements of planning; spatial load forecasting,creation of geographical accurate (GIS)models for the network, evaluation of short /medium and long term impacts, near-optimallocation of new substations, formulation offeeders reinforcements or addition,formulation of loss reduction investment andselection of reactive compensation. The planwas used for both system expansion guide andtariff formulation.

∂ Formulation a long term capital and operatingexpenditures forecast for three largedistribution companies in Turkey. A 30 yearsforecast was produced using hybrid (bottomup – top down) approach for Ayedas, Sedasand Baskent distribution companies servingover 6 million customers in total. This planwas used as part of an investment decisionduring the privatization.

∂ SSJID Distribution Function Study. Thismulti-year study (2004 to present) consists in

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the evaluation and formulation of a detailedplan for SSJID to provide retail electricdistribution service to the cities of Manteca,Ripon and Escalon in California. The projectinitiated with the assessment of systemcondition, creation of a network model andthe formulation of a basic plan for theprovision of the service separated from theincumbent utility as well as the capitalexpenditure forecast. Over the years thisinitial plan has been refined as SSJID nearsthe moment leading to the take over ofservice. The impact on the key reliabilityindices of energy not served, SAIDI andSAIFI were evaluated prior and postseparation.

∂ Feasibility of the Annexation of theDistribution system serving the cities ofWoodland, West Sacramento and Davis.Assessment of system condition andFormulation of long term operating andcapital expenditure forecast. Similar project asthe SSJID project above.

∂ Independent Technical review of the assetcondition, operating and capital expendituresof the National Distribution Company inUganda (UETCL). Formulation ofindependent forecasts. This project was donein behalf of an investor that eventually tookoperation and it was followed by the reviewof performance and investment plants at thefirst anniversary of the take over in support ofinvestments decision. The analysis waslargely top-down but it was supported bypunctual bottom-up verifications.

∂ Independent technical audit report for theprivatization of Turkey Authorization Area22. Review of capital and operatingexpenditure forecast.

∂ Short term and medium term (3-5 year)expansion plans for the distribution system ofthe City of Kabul in Afghanistan. A detailedload flow model of the medium voltagesystem was created based on field informationand load estimations. A prioritized list ofsystem upgrades and costs was made. Theimpact on the 110 kV network of theincorporation the new load was performed.

∂ Independent technical audit report for theprivatization of Sakarya-Bolu (TurkeyAuthorization Area 12). Review of capital andoperating expenditure forecast.

∂ Belize Electricity Limited (BEL) DistributionPlanning Study. This work included thefollowing: (1) preparation of a load forecast atthe distribution level, (2) development of animmediate to short term distribution plan thatidentifies a prioritized list of system upgradesand investments that are necessary to reducetechnical losses to economic values, (3)analysis and recommendations for optimalsizes transformers, (4) recommendationsabout required reactive compensation, (5)definition of the need for distributionsubstations in the main load center andpreparation of the guidelines to assist BEL inthe decision process for the installation offuture distributions substations.

∂ Independent Review of InterconexiónEléctrica S.A. (ISA)’s 500 kV ExpansionProject (293.3 km of single-circuit 500-kVtransmission lines plus two new substations,Primavera and Bacatá).

∂ Independent Technical review of thedistribution and generation assets of ENEL(Nicaragua). Review of asset condition andformulation of capital and operatingexpenditure forecast. Also in the case ofdistribution the assessment included quality ofservice and electric loses.

∂ Independent Technical review of the assetcondition, operating and capital expendituresof CEMAR (Brazil), ELFEC (Bolivia),Empresas Emel (Chile) and DELSUR (ElSalvador). Formulation of independentforecasts.

∂ Independent Technical review of DEORSA &DEOCSA (Guatemala) Capital ExpenditurePlan.

∂ Independent engineering review of EasternElectricity (UK). Review and assessment of:condition of assets, technical and commercialperformance, operations and maintenancepractices, system expansion plans, andhistorical and projected capital and O&Mexpenditures.

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Page 10 Siemens Energy, Inc., T&D ServiceSolutionsNelson Bacalao Siemens Power TechnologiesInternationalSenior Manager, Consulting∂ Auditing of the 1999 actual capital

expenditures of PG&E in company’sdistribution system. Review of capital andoperating expenditure forecast. Also abenchmarking study of PG&E distributionbusiness as a whole was performed using apeer group of 25 large utilities.

∂ Independent Technical Review of PG&EQuality of Service. A review of PG&E’sreliability and response during emergencieswas conducted and metrics to assessperformance were produced.

Studies for specification and tests oftransmission equipment.

∂ Insulation Coordination for the CREZ 345 kVLone Star Lines. This study included thedetermination of line parameters undervarious proposed designs and then theevaluation of expected Transient RecoveryVoltages (TRV) at the substation breakers andelectromagnetic switching transients in 345KV lines associated with the CREZ project.The study recommended breaker ratings, sizeand location of arresters and minimum lineinsulation levels.

∂ Electrical design of the third 400 kV linebetween Guri and El Tigre substations inVenezuela. The design included insulatorselection, right of way selection, insulatorstring selection, tower window design(minimum distance to mass), and shield wirepositioning.

∂ Selection of the electrical characteristics ofthe third 765 kV line in Venezuela. This studyincluded the selection of the insulator stringby means of insulation coordination studies,shield wire positioning to improve lightningprotection on mountainous terrain.

∂ Expansion study for the Santa Teresa 400 kVsubstation in Venezuela. This study producedthe preliminary specifications for theexpansion, including the recommendedsolution to several physical problemsproduced by the crowding of the land aroundthe substation.

∂ Technical assessment and field tests of thedistribution network of a large alumina plantin Venezuela.

∂ Evaluation of the feasibility of performingsingle-phase re-closing in the Venezuelan 400and 765 kV systems, and selection of neutralreactor compensation to ensure secondary arcextinction.

∂ Transient overvoltage evaluation of the 765kV lines. The pre-insertion resistors wereselected to minimize switching overvoltages.

∂ Insulation coordination of 230 kV and 115 kVsubstations. This work reviewed for all thesubstation layouts standardized by the clientutility, the likely transformer over-voltagesand the ability to reduce its BIL by thecombined use of line and transformerarresters.

∂ Evaluation of recurrent faults due to earlyinsulation aging of the capacitive voltagetransformers at the San Geronimo 400 kVsubstation in Venezuela.

∂ Investigation of the faults that lead to thedestruction of the 765 kV transformersnumber 14, 16 and 19 at Guri in Venezuela.

∂ Investigation of the 1992 Venezuelan systemblackout. Evaluation of incidents leading tothe event and recovery actions. This workdetected several areas and practices thatneeded improvement as well as the maincause of the collapse.

∂ Commissioning field tests for the PK8 765 kVline breakers, 765 kV transformers and 765kV reactors. These tests included modeling ofthe expected response (over-voltages) anddirect measurement of the transients uponswitching.

∂ Field tests of the 765 kV Static VARCompensators (SVCs) in the Venezuelaninterconnected network.

∂ Review of the specifications for 765 kVtransformers. This work lead to the creation ofa new test protocols.

∂ Tuning of the Guri Hydroelectric Plant(10,000 MW) power stabilizers to improve thedamping of power oscillations in the

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Venezuelan interconnected network.

Representative Regulatory and Contract ReviewExperience:∂ Dr. Bacalao was the manager of the Guyana

Power and Light grid code development thatconsisted in the development of the followingmain documents; (1) the Planning Code thatdefines the criteria and procedures employedby GPL in evaluating the need fortransmission system to maintain reliabilityand is necessary that all stakeholders observeand subscribe to as minimum requirements,(2) the Interconnection Code that defines therequirements and processes that anyIndependent Power Producers (IPP) or GPLGeneration Projects must comply with tointerconnect new (or modified) generation tothe GPL System, (3) the Operational Codethan includes the criteria, procedures andinformation requirements necessary toexecute the operational planning, thegeneration dispatch, (4) the MinimumTechnical Requirements (MTRs) which mustbe complied with by any new generationfacility that will interconnect to GPL’s systemto ensure that it contributes its fair share to thesystem reliability and secure operation, and(5) the Metering Code that defines thestandards and conditions for all active andreactive power entering or exiting thetransmission system and distribution systemsto be metered using one or more meteringsystems.

∂ Dr Bacalao participated in the development ofSiemens a draft distribution code whichspecified the general conditions under whichthe distribution licensees (or concessionaires)in Turkey were to design, operate andmaintain their electricity distribution systems.The purpose of the distribution code was toestablish uniform technical standards andprocedures for the planning, operation andmaintenance of the distribution system.

∂ Dr Bacalao provided independent consultantservices for auditing and validating WMECOElectric’s Service Quality Performance for thecategories of System Average InterruptionDuration Index (“SAIDI”) and System

Average Interruption Frequency Index(“SAIFI”) for the calendar year 2006.

∂ Regulatory and market review of the TurkishElectric Sector for an interested investor. Thisreview included the new tariff formulationrules, quality of service regulation, electricitymarket regulation, electricity laws and currentand forecasted conditions in the wholesalemarket.

∂ Formulation of Electricity tariffs for theBelize Electricity Company (BEL). Thisformulation included generation, transmissionand distribution tariffs. A long termgeneration and transmission plan for BEL wasproduced.

∂ Restructuring of the Electric SectorRegulation (Cost & Tariff Study), FUDELECVenezuela. This project created the guidelinesand the procedures for the implementation ofthe Venezuelan Electricity Law including thedesign of the wholesale marker rules,formulation of electricity tariffs fortransmission and distribution as well as thetransition regime.

∂ Strengthening of the Regulatory Function forthe National Electricity Council (Malawi).This project had 3 main technicaldeliverables: (i) Tariff formulation guidelinesfor Generation Transmission and Distribution,(ii) Quality of Service Standards forTransmission and Distribution and (iii) anIntegrated Resource Planning Model (IRP).

∂ ESKOM Transmission OpEx and CapExreview. Extensive benchmarking wasconducted for assessing the costs andpractices and we performed a partial bottomup calculation by defining an idealorganization.

∂ Mayakán and PEMEX Gas 5th year TariffReview. We reviewed the adequacy andreasonableness of the costs incurred in thefirst 5-year term (capital and operating) andthe projected costs for the next 5-years as wellas proposed an efficiency factor X foradjustment in the RPI-X formula.

∂ Loma de Níquel Smelter Electricity Tariffformulation and negotiation. Formulation and

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negotiation of the electric tariff for a nickelproject, using a profit sharing design.

∂ Venezuelan Interconnection Agreement.Formulation and negotiation of capacityobligation rules for the generation andtransmission pool in Venezuela.

∂ Restructuring Plan for the VenezuelanElectric Sector. An overall strategy for therestructuring and privatization of theVenezuelan Electric Sector was developed.

∂ Turkey Distribution Code. Preparation of adraft distribution code that specifies thegeneral requirements for the distributionlicensees for designing, operating andmaintaining their electricity distributionsystems.

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PREPA Ex. 6.01