10-Year Transmission System Assessment

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1 An excerpt from AC s Year ransmission System Assessment Proposals to ensure n Electric system reliability n Access to low-cost sources of power n Access to renewable energy Zone 1 North Central Wisconsin Adams Forest (southwestern portion) Fond du Lac (northwest portion) Green Lake Juneau Langlade Lincoln Marathon Marquette Monroe (eastern portion) Oneida Portage Shawano (western portion) Vernon (eastern portion) Vilas (southern portion) Waupaca Waushara Winnebago (western portion) Wood October 2009

2 Planning for future reliability American ransmission Co. was formed in 2001 to plan, permit, build, own, operate and maintain a high-voltage electric grid that meets the reliability and economic needs of our customers. Our planners continually conduct engineering studies on the electric transmission system looking for potential problems that may affect the future performance of the system. Our studies identify and prioritize future projects needed to improve the adequacy and reliability of the electric transmission system and meet evolving public priorities for increased availability of renewable generation. Many projects serve to increase customer access to low-cost generation, which can reduce the cost of serving load in our footprint. In certain cases, expected economic benefits may be the primary driver of a project. Such is the case with our Paddock-Rockdale 345-kV line in southern Wisconsin. It is the first of its kind in the Midwest while the line will enhance reliability, economics drove the decision to build. Local electric utilities will save through improved access to the wholesale electric market, and those savings will be passed on to end-use electric customers. Whatever the need, we select best-value projects that resolve multiple system issues, and we do so in a transparent, collaborative process. We bring people into the process, engaging stakeholders in transmission discussion. We believe this open collaboration is critical to efficiently and economically meet renewable portfolio standards in the region. o that end, we are leading and participating in about a dozen regional and intraregional studies and initiatives. We also are continuing to work with stakeholders in identifying projects that provide economic benefits and upgrades that could improve access to lower-cost sources of power inside and outside our service territory. In this, our ninth year of producing a 10-year forecast of transmission system needs, our focus remains on maintaining the adequacy and reliability of the system to meet the current and future needs of our customers. However, this is the first year that we have included asset renewal projects in the Assessment. While our reliability performance data indicates that our system is performing well, we are placing increased emphasis on managing the risk of aging infrastructure. Our approach to work that traditionally has been called maintenance is moving from a time-based program to a more-efficient process that is informed by performance analysis and operational experience. he 2009 Assessment covers the years 2010 to 2019, and identifies $2.5 billion in necessary transmission system improvements. he total includes $1 billion for transmission network upgrades specifically described in this report, along with $1.5 billion in interconnection and asset renewal projects, infrastructure replacements and relocations, and other smaller network reliability improvements. While the cost estimate in our 2009 Assessment is slightly less than the $2.7 billion identified in last year s report, we may increase our overall 10-year capital spending because of increased focus on regional transmission support to move renewable generation to areas where the power is needed. With more than $2.1 billion invested in the system since 2001, we have become a recognized, national leader in planning, permitting and building electric transmission infrastructure. Cost estimate of system improvements otal 10-Year Capital Cost $3.4B $3.1B $2.8B $2.7B $2.5B 1 Helping to keep the lights on, businesses running and communities strong

3 North Central Wisconsin Zone 1 Electric System Overview Slight increases expected in population, employment Population in Zone 1 is projected to grow at 0.7 percent annually between now and Employment is projected to grow at 1 percent annually between now and Marathon County will realize the largest increase in population and employment, while Adams County will have the highest growth rate. ONEIDA LINCOLN LANGLADE MARAHON SHAWANO WOOD WAUPACA PORAGE WAUSHARA ADAMS JUNEAU MARQUEE GREEN LAKE Electricity usage growing Peak electric demands typically occur during the summer months, with some winter peaks appearing in the northern portion. Primary electricity users in Zone 1 include a number of large paper mills and food processing plants. Electric load is projected to grow approximately 1.8 percent annually through ransmission is the vital link in bringing power to communities ransmission lines move electricity at high voltages over long distances from power plants to communities where local utilities deliver power to homes and businesses via distribution lines. A reliable transmission network provides access to many sources of power, whether they are local or regional. Having multiple paths to get power from producers to consumers lessens the chance that they will experience service interruptions. With an increasing emphasis on renewable energy, transmission system planning will become even more important to put the power of wind on the wires. 2

4 System Limitations North Central Wisconsin Zone 1 ransmission system characteristics in Zone 1 AC delivers power in Zone 1 with various transmission facilities including: n an east-west 345-kV line from Arpin Substation through Stevens Point extending to the Appleton area, n a 345-kV line extending from Wausau to northeastern Minnesota, n a 345-kV line extending from Wausau to Stevens Point to eastern Outagamie County (Highway 22), n a 115-kV network in the northern portion of the zone and n a 138-kV and 69-kV network in the southern portion of the zone. here are a number of transmission system performance issues in Zone 1 including overloaded lines and equipment, and low system voltages. Steady or rapid load growth in certain areas and the recently completed construction of a new power plant in the Wausau area are driving these issues. ransmission system limitations in Zone 1 In the analysis of Zone 1, we identified low voltages and transmission facility overloads. Low voltages occur in the area north of Wausau toward the Michigan border. he most notable facility overloads occur on 115-kV lines in the Rhinelander Loop, and we are implementing a number of projects to reinforce this area. In 2008, AC completed the first phase of a longer-term reinforcement by constructing a new Cranberry-Conover 115-kV line. his reinforcement project also includes the rebuild and conversion of the Conover-Iron River-Plains 69-kV line to 138-kV operation by his alternative addresses the long-term reliability issues of the Rhinelander Loop, provides substantial voltage support to the 69-kV system in the western portion of the Upper Peninsula and addresses potential long-term condition issues due to the age of the existing 69-kV system. Low voltages and overloaded facilities in and around the Petenwell/Castle Rock lakes area and in the Berlin/Ripon area will necessitate a combination of reinforcements. 3

5 SAWYER hree Lakes RUSK Hawkins Phillips PRICE System Limitations Catawba Kennan Low voltages Prentice Overloaded facility New generation/stability ransmission needed for load growth ransmission service limiter omahawk omahawk - AC 115kV ONEIDA Rhinelander Highway Eight Hodag Rhinelander Paper Eastom Venus Metonga Crandon FORES Summit Lake (WPS) Rib Lake LINCOLN Grandfather Falls LANGLADE OCONO ilman AYLOR 0 Medford Merrill Pine (WPS) Bunker Hill SW SA Antigo Blackbrook SW SA Aurora St Antigo Polar White Lake Mountain Lublin Stetsonville horp lack River Falls parta elvina ashton eadstown Viola Loyal CLARK JACKSON VERNON Curtiss Abbotsford Corners DPC Ocean Spray Wyeville Flare Ave omah Industrial Pk Council Creek North omah omah Oakdale MONROE DPC Oakdale Norwalk La Farge WitheeOwen Greenwood Neillsville Ontario Warrens Wilton Granton Dorset Corners Yuba RICHLAND Dorchester Kendall Hillsboro Hillsboro Colby Unity Spencer Wildwood (MEWD) Hume 3 Marshfield McMillan Union Center Wonewoc Hewitt Pittsville Athens Pittsville Arpin Vesper Sigel Vesper Armenia Rudolph WOOD Lakehead Vesper Biron Wisconsin Rapids Coyne St Wisconsin Rapids Port EdwardsBaker St Vulcan Chem Port Edwards Wisconsin Dells Muni 2 Dell Creek Kilbourn Saratoga Finnegan Lake Delton Maine Brokaw Hilltop (WPS) Sherman St Cassel Wien SW SA Wausau Marathon City Wausau Sunnyvale Edgar Schofield Kelly MARAHON Weston Weston SW YD Morrison Ave Fenwood Rothschild Stratford Stratford Auburndale Arpin Rozellville Auburndale Nekoosa Milladore PORAGE ACEC Arrowhead ACEC Sherwood ACEC Cottonwood La Valle Zobel Nishan Birchwood SAUK Reedsburg Lake Delton Fox Hills Cazenovia Artesian Reedsburg Rock Springs Kirkwood Island Rock Springs Lime Ridge Moore St Baraboo Gardner Park CWEC Dewey Northpoint Stevens Point Rocky Run Hoover Whiting Ave Okray Plover 5 Plover ACEC Grant Hancock Hancock Groenier Arnott Golden Sands ACEC Plainfield Plainfield (ALE) Sand Lake Rosholt Rosholt Amherst Jct Endeavor ACEC Roslin Birnamwood Birnamwood Eland Bowler Wittenberg CWEC Wittenberg Wittenberg Wild Rose ACEC Wautoma Whitcomb Iola Iola Deer rail CWEC Iola WAUPACA Sheridan (ALE) Hartman Creek Waupaca ACEC Wildrose Harrison Waupaca Brooks Corners CWEC igerton Fountain Valley SHAWANO Manawa MENOMINEE Caroline Badger Belle Plaine Cloverleaf Highway 22 Marion White Lake (WE) 4 Shawano West Shawano East Shawano Alto Embarrass Clintonville Shiocton OUAGAMIE Hintz Winneconne Winneconne Waupun Waupun Waupun Main Ellington Casaloma Butte Des Morts Neevin Woodenshoe Mears Corners ACEC Hancock WAUSHARA Petenwell Big Pond Wautoma WINNEBAGO Bowen St Coloma Red Granite Oshkosh Redgranite Omro Necedah ACEC Coloma Wautoma Pearl Ave Coloma Silver Lake (ALE) Oshkosh Necedah ACEC Richford Omro River Run Progress Ellinwood ACEC Dellwood Chaffee Creek ACEC Spring Lake DPC Whistling Wings Friendship 12th Ave Friendship Berlin Aviation Adams Neshkoro Houghton Rock Fitzgerald J UNEAU Fox River ADAMS Berlin Mckenna Camp Douglas Grand Marsh Westfield ACEC urtle Lake Hustler DPC Buckhorn Castle Rock Westfield Dartford Ripon Ind Park DPC New Lisbon ACEC Quincy ACEC Brooks Princeton Ripon Green Lake MARQUEE Ripon ACEC Chateau Roeder MaustonWest Mauston Montello Metomen Rosendale Rosendale Neenah Creek Montello Fond du Lac Mauston ACEC Glen GREEN LAKE Hilltop (ALE) Oxford Brandon FOND DU LAC ACEC Winnebago Green Lake SW SA Fairwater South Fond Du Lac SW YD Marquette Elroy DPC Elroy Lyndon Station Brandon Markesan Endeavor Koch Oil Oakfield Lyndon Station Rudolph DPC Lyndon Station Junction City Mosinee Wisconsin Dells Plainfield Almond Hatley Amherst Elderon Lakehead Portage Aniwa Mattoon CWEC Scandinavia Wild Rose ACEC Wild Rose Pump ACEC Wild Rose Pump Kingston igerton Big Falls Mackford Prairie Clintonville ACEC Lewiston ACEC Cambria rienda Portage North Randolph Fox Lake (ALE) DODGE Sanborn Fox Lake Portage Hamilton St Cambria Kekoskee COLUMBIA Pardeeville Cambria Randolph Mayville North Beaver Dam Manley Sand Mayville Beaver Dam East Beaver Dam Caledonia (ALE) Rio Pumping Station Center St Horicon Ind Park Columbia SW YD (ALE) Spring Brook Marion Manawa Weyauwega Fremont Gresham New London Bear Creek Hortonville Oakfield Ceci Nichol Brownsville

6 ransmission projects in Zone 1 North Central Wisconsin Zone 1 We have implemented two projects in Zone 1 since the 2008 Assessment, most notably the construction of the new Gardner Park-Highway kV line. Our current plans in Zone 1 include 18 system reliability and economic projects between 2009 and hese projects are in various stages of development. he most notable planned, proposed, provisional and asset renewal projects in Zone 1, along with their projected year of completion and the factors driving the need for the projects, are listed below. Planned projects Project description in-service Need driver year 1 Rebuild Arpin-Rocky Run 345-kV line 2010 Improve condition and increase reliability performance of existing line Proposed projects 2 3 Construct 115-kV line from new Woodmin Substation D interconnection to the Clear Lake Substation Monroe County-Council Creek 161-kV line and 2013 Addresses low-voltage situation in the area, provides significant economic construct imberwolf 69-kV switching station benefits, avoids need to reconfigure system during high west-to-east system biases Provisional projects 4 Construct Fairwater-Mackford Prairie 69-kV line and reconfigure North Randolph-Ripon 69-kV line to form a second Improve reliability performance Ripon-Metomen 69-kV line; retire circuit between Metomen and the Mackford Prairie tap Asset Renewal projects 5 Plover-Whiting 115-kV line rebuild 2019 Improve condition and increase reliability performance of existing line SUBSAION KEY New substation Supports transmission system expansion Substation modifications Upgrades equipment ratings to avert facility overloads ransformer Supports local growth and improves voltage levels Capacitor bank Relieves low voltages -D interconnection Supports local growth System Solutions RANISSION LINE KEY 345-kV transmission line 115-, 138- or 161-kV transmission line Rebuilt 115- or 138-kV transmission line ransmission line voltage conversion 69-kV transmission line Rebuilt 69-kV transmission line 5

7 Park Falls -D 2 St Germain Eagle RiverCranberry Eagle River FLORENCE WYER Clear Lake (WPS) hree Lakes 2 Phillips PRICE ONEIDA Rhinelander Paper Highway Eight Hodag Rhinelander Piehl FORES Venus Metonga Crandon USK Hawkins Catawba Kennan Prentice omahawk omahawk - AC 115kV Eastom Summit Lake (WPS) Rib Lake LINCOLN Grandfather Falls LANGLADE OCONO AYLOR 0 Medford Merrill Pine (WPS) Bunker Hill SW SA Antigo Antigo Blackbrook SW SA Aurora St Polar White Lake Mountain Lublin River Falls Stetsonville Maine Athens Brokaw Aniwa Dorchester Mattoon MENOMINEE Hilltop (WPS) Deer rail Wausau Sherman St Cassel WitheeOwen Curtiss Wien SW SA Wausau Abbotsford Birnamwood Sunnyvale Brooks Corners Marathon City Edgar Birnamwood Colby Schofield Kelly MARAHON Rothschild Corners Weston Hatley Weston SW YD Fenwood Gardner Park Eland Wittenberg SHAWANO Unity Gresham Morrison Ave CWEC Wittenberg Ceci Stratford Wittenberg Stratford Whitcomb Mosinee Shawano West Shawano East Elderon Greenwood CWEC igerton Shawano Spencer Caroline Loyal Badger igerton CLARK Rozellville Cloverleaf Highway 22 McMillan Groenier Belle Plaine CWEC Dewey Marion Marion Embarrass Wildwood (MEWD) Hume Hewitt Auburndale Marshfield Rosholt Clintonville Auburndale Rosholt Big Falls Clintonville Milladore Granton Junction City Arpin Nichols Northpoint Neillsville 1 CWEC Iola Arpin Stevens Point Hoover PORAGE Iola WAUPACA Whiting Ave Pittsville Vesper Sigel CWEC Scandinavia Rudolph Rocky Run Amherst Jct Arnott Manawa Vesper Okray Plover Plover Scandinavia Manawa WOOD Ogdensburg Amherst Shiocton Pittsville Consulated Water Power (rrn) Biron Hintz 5 Coyne St Sheridan (ALE) Werner Ellington Lakehead Vesper New London Harrison Baker St Golden Sands Waupaca OUAGAMIE Port Edwards Vulcan Chem Waupaca Hortonville Hartman Creek Saratoga White Lake (WE) ACEC Grant Weyauwega Nekoosa JACKSON Fremont Casaloma Almond -D DPC Ocean Spray omah Wyeville Flare Ave omah Industrial Pk ONROE North omah Oakdale a 3 DPC Oakdale Dorset Corners Norwalk Wilton a Kendall n Ontario Hillsboro Hillsboro VERNON La Farge Yuba Viola RICHLAND town Elroy 3 ACEC Arrowhead ACEC Plainfield ACEC Wildrose Neevin Armenia Plainfield Wild Rose ACEC Sherwood Plainfield (ALE) Wild Rose Sand Lake Woodenshoe ACEC Wild Rose Pump ACEC Cottonwood ACEC Wild Rose Pump Hancock WAUSHARA ACEC Wautoma Winneconne Winneconne 4 ACEC Hancock Fountain Valley Mears Corners Wautoma Redgranite Silver Lake (ALE) WINNEBAGO Big Pond Coloma Red Granite Omro ACEC Coloma Wautoma Lohrville Coloma Oshkosh Necedah Omro Industrial Park ACEC Spring Lake River Run 12th Ave Pearl Ave ACEC Dellwood DPC Whistling Wings Friendship ACEC Richford Ellinwood Progress Friendship Berlin Chaffee Creek Neshkoro Fox River Aviation Adams Fitzgerald Oshkosh J UNEAU ADAMS C Berlin Camp Douglas Mckenna DPC New Lisbon Grand Marsh Westfield Westfield Dartford DPC Buckhorn New Lisbon Castle Rock ACEC urtle Lake -D ACEC Brooks Princeton Green Lake Ripon ACEC Chateau Roeder West Mauston Hilltop (ALE) Montello C Rosendale Mauston ACEC Winnebago Neenah Creek Montello Rosendale Oxford Mauston MARQUEE Green Lake SW SA -D C Brandon ACEC Glen GREEN LAKE Brandon FOND DU LAC DPC Elroy Mackford Prairie 4 Oakfield Lyndon Station Endeavor Union Center Lyndon Station Kingston Endeavor Markesan Alto Koch Oil Oakfield Wonewoc ACEC Roslin DPC Lyndon Station Waupun Wisconsin Dells Muni 2 Finnegan Lakehead Portage Waupun Waupun Main Wisconsin Dells Dell Creek Kilbourn COLUMBIA ACEC Cambria La Valle Zobel rienda Birchwood DODGE Lake Delton Hamilton St Cambria Sanborn SAUK Portage Fox Lake (ALE) Nishan Pardeeville Kekoskee Reedsburg Randolph Cazenovia Artesian Mayville Reedsburg Lake Delton Manley Sand Pardeeville North Beaver Dam Beaver Dam East Spring Brook Island Rock Springs Rio Pumping Station C Kirkwood Baraboo Center St Beaver Dam 3rd St Horicon Ind Park Lime Ridge Rock Springs Beaver Dam Hustler

8 P.O. Box 47 Waukesha, WI Helping to keep the lights on, businesses running and communities strong AC A A glance n Formed in 2001 as the first multi-state, transmission-only utility. n Owner and operator of approximately 9,400 miles of transmission line and 510 substations. n Meeting electric needs of more than five million people in 72 counties in four states: Wisconsin, Michigan, Minnesota and Illinois. n $2.5 billion in total assets. ConAC mail P.O. Box 47 Waukesha, WI oll-free web info@atcllc.com More detailed information is available at P.O. Box 47 n Waukesha, WI n oll-free n n would you like a speaker from Ac to address your group? Give us a call, toll-free, at , ext

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