2013 ANNUAL PROGRESS REPORT

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1 March 1, 2013 Mr. David Franklin, Chairman WECC Technical Studies Subcommittee Southern California Edison 1 Innovation Way Pomona, CA Mr. Enoch Davies WECC Technical Staff 155 North 400 West, Suite 200 Salt Lake City, Utah ANNUAL PROGRESS REPORT In accordance with reporting guidelines by the WECC Planning Coordinating Committee (PCC), please find attached Puget Sound Energy s 2013 Annual Progress Report on significant additions and changes to our system. Please call me at (425) if you have any questions. Sincerely, Puget Sound Energy, Inc. By Peter M. Jones, PE Senior Engineer, PSE Enclosure cc: Joe Seabrook John Phillips TSS Members

2 2013 Annual Progress Report to WECC Puget Sound Energy The following projects will be reported in the 2013 Existing Generation and Significant Additions and Changes to System Facilities report in accordance with pages III-110 though III-119 of the WECC Progress Report Policies and Procedures. These projects do not have regional impacts to the WECC Interconnected System. Recently Completed Projects 1. Sedro Woolley 230 kv Transformer Addition The project added a second kv transformer and two 115 kv, 21-MVAr shunt capacitor banks at the Sedro Woolley Substation. PSE requested a waiver of significant transmission project status for this project. This project addresses NERC planning criteria and provides additional capacity to serve the projected load growth in Skagit and Island Counties. It has no impact to the WECC or any neighboring electric systems. Transmission Additions and Changes Request for waiver of Significant Transmission Project Status 2. Eastside 230 kv Transformer Addition and Line Estimated Date of Operation: 2017 This project had been titled Lakeside Substation 230 kv Transformer Addition in prior years progress reports. The project will involve installation of a kv transformer at Lakeside Substation. This project includes rebuilding the Sammamish-Lakeside-Talbot 115 kv lines, energizing one or both at 230 kv to provide a source to Lakeside Substation and transmission capacity. This is more effective for local load service and transmission reliability than the alternative of installing a kv transformer at Lake Tradition Substation. This transformer will address NERC planning criteria and provide additional capacity to serve the projected load growth in north central King County and surrounding areas. ColumbiaGrid is a Subregional Planning Group in the Pacific Northwest and has open participation in its planning meetings and the Puget Sound Area Study Team (PSAST). This project has been developed by and has achieved consensus via the ColumbiaGrid PSAST, which included all the transmission owners that could be impacted by this project. The Eastside 230 kv Transformer Addition and Line Rebuilds project began to be studied by the PSAST in mid-2009, and was in PSE s Annual Progress Report last year. The most recent report is entitled Updated Recommended Transmission Expansion Plan for the Puget Sound Area to Support Winter South-to-North Transfers, June 17, The report recommends this project and four other transmission improvements, and is available from ColumbiaGrid The requirements of project coordination review for this project have been met through the ColumbiaGrid acting as a Subregional Planning Group. The attached document, WECC Comprehensive Project Coordination Review Letter_PSAST pdf, describes the coordinated ColumbiaGrid study efforts.

3 2013 Annual Progress Report to WECC Puget Sound Energy Request for waiver of Significant Transmission Project Status, cont. 3. Starwood-Tideflats 115/110 kv Transformer Removal Estimated Date of Operation: 2013 With Tacoma Power increasing its sub-transmission voltage schedule from 110 kv to 115 kv in 2013, the existing step down Starwood transformer will no longer be necessary. A bypass of the existing bank is therefore planned for summer of 2013 to coincide with the timing of Tacoma Power s voltage schedule increase. This project is a combined engineering effort between PSE and Tacoma Power; it has no impact to the WECC or any additional neighboring electric systems. Waiver of Significant Transmission Project has been granted on the following - 4. Thurston County Transformer Addition Estimated Date of Operation: 2013 The project is to install a kv transformer at St. Clair Substation and build a 5-mile 230 kv transmission loop between St. Clair and the existing BPA Olympia S. Tacoma 230 kv line. PSE requests a waiver of significant transmission project status for this project. The project is intended to provide additional capacity to serve the projected load growth in Thurston County and surrounding areas. It has no impact to the WECC or any neighboring electric systems. 5. Pierce County Transformer Addition and Line Reroutes Estimated Date of Operation: 2015 The project is to install a kv transformer at Alderton Substation and build 8 miles of 230 kv transmission line from White River Substation to Alderton Substation, as well as re-routing 115 kv lines. PSE requests a waiver of significant transmission project status for this project. The project is intended to provide additional capacity to serve the projected load growth in Pierce County and surrounding areas. It has no impact to the WECC or any neighboring electric systems. 6. Tono Transformer Improvements Estimated Date of Operation: 2015 This project will involve replacement of limiting current transformers at the Tono bank. This improvement will increase capacity from the existing limit of 398 MVA up to 546 MVA. The project is intended to increase reliability for serving approximately half of the existing load in Thurston County. It has no impact to the WECC or any neighboring electric systems. 7. West Kitsap Transmission Project Phase II Estimated Date of Operation: 2018 The project is to install a kv transformer at Foss Corner Substation, and build a 230 kv line from Foss Corner to a future line bay position in the BPA Kitsap 230 kv Substation. PSE requests a waiver of significant transmission project status for this project. The project is intended to provide additional capacity to serve the projected load growth in Kitsap County and surrounding areas. It has no impact to the WECC or any neighboring electric systems.

4 February 21, 2013 Kent Bolton Staff Engineer Western Electricity Coordinating Council 155 North 400 West, Suite 200 Salt Lake City, UT Dear Mr. Bolton: The WECC Project Coordination Process states that project sponsors can use Subregional Planning Groups to meet its requirements: a project sponsor may use TEPPC or a Subregional Planning Group to meet the requirements of Project Coordination Process in lieu of forming an independent PCRG for the project. The projects summarized below used the ColumbiaGrid planning process via the Puget Sound Area Study Team to meet the requirements of the WECC Project Coordination Process. The ColumbiaGrid planning process provided for open participation and included all the interested transmission owners and other interested stakeholders. These projects have been reviewed by the Puget Sound Area Study Team and a consensus has been reached that they are the best solution for the area. Project reports are available from ColumbiaGrid at 1. Project Name: Reconductor Bothell SnoKing 230 kv lines and British Columbia. b. Facility Owners: Seattle City Light, Bonneville Power Administration c. Project Description: Reconductor the double circuit Bothell-SnoKing 230 kv lines with high temperature conductor. d. Estimated In-Service Date: Project Name: Reconductor Delridge-Duwamish 230 kv line and British Columbia. b. Facility Owners: Seattle City Light c. Project Description: Reconductor the Delridge Duwamish 230 kv line.

5 d. Estimated In-Service Date: Project Name: Lakeside 230/115 kv Substation and British Columbia. Provide a 230/115 kv source to Puget Sound Energy customer load service. b. Facility Owners: Puget Sound Energy c. Project Description: Rebuild both of the Sammamish-Lakeside-Talbot 115 kv lines to 230 kv. Energize one line at 230 kv and the other at 115 kv. Build a 230 kv bus and 230/115 kv transformer at Lakeside Substation. d. Estimated In-Service Date: 2017 Please feel free to contact me or Jonathan Young at (503) if you have any questions. Sincerely, Jeffrey C. Miller Jeffrey C. Miller ColumbiaGrid, Vice President and Manager of Planning (503) office (503) cell

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