Capital Investment Plan

Transcription

1 Capital Investment Plan ROCKY MOUNTAIN REGION FY

2 TABLE OF CONTENTS 1 INTRODUCTION COLORADO RIVER STORAGE PROJECT (CRSP) PROGRAM OVERVIEW CRSP FY08 Accomplishments and Notable Events CRSP FY09 Planned Activities CRSP Program Summary Budget CRSP TEN-YEAR BUDGET PROJECTIONS PICK SLOAN OVERVIEW Pick Sloan FY08 Accomplishments and Notable Events Pick Sloan FY09 Planned Activities Pick Sloan Program Summary Budget PICK SLOAN TEN-YEAR BUDGET PROJECTIONS JOINT POWER SYSTEM PROJECTS Joint CRSP & Pick Sloan FY08 Accomplishments and Notable Events Joint CRSP & Pick Sloan FY09 Planned Activities RMR SUCCESS INDICATORS CUSTOMER COMMENTS... 43

3 1 INTRODUCTION Western Area Power Administration (Western) is committed to providing, operating and maintaining a reliable transmission system. The capital investment program plays an important role in Western s ability to provide cost effective, reliable power delivery to our customers. The Rocky Mountain Region (RMR) Capital Investment Program Plan (Plan) includes both Colorado River Storage Project (CRSP) and Pick Sloan (PS) ten year capital programs. The purpose of the Plan is intended to provide a mechanism for customer collaboration, and to clearly describe challenges, goals, strategies, and measurements for the Plan. The Plan contains general information on the creation and maintenance of the capital investment program, the current ten year plan, and goals, challenges, strategies and success indicators for the capital program. The Plan is revised annually in response to changes in funding levels, unforeseen problems with the transmission system, mandates or regulations, and new contractual obligations. When changes to the Plan are made to accommodate higher priority projects, existing projects are reduced in scope, delayed, or deleted. The Plan is segregated into the CRSP and Pick Sloan power systems. Within each power system, the Plan is divided into the following six major program areas: Transmission Line Improvements and Replacements Substation Improvements and Replacements Communication System Improvements and Replacements Control, Protection and Metering Improvements and Replacements Mobile Equipment Replacements Programmatic Improvements and Replacement Operation Consolidation Program: Western s recent strategic planning resulted in plans to implement consolidation of operations for two of Western s balancing authorities (BA) which reside within the Western Electricity Coordinating Council (WECC) footprint. Under an Operations Consolidation Program (OCP) the two operations centers located at Phoenix, AZ (Desert Southwest Region s Western Area Lower Colorado WALC) and Loveland, CO (Rocky Mountain Region s Western Area Colorado/Missouri WACM) would align functions, use common tools and develop an integrated Supervisory Control and Data Acquisition (SCADA) system. Benefits would include optimization of resources to develop and maintain the operations systems and minimize the resources required to maintain North American Reliability Corporation (NERC) - 3 -

4 and WECC Standards along with a reduction in the number of required audits and assessments. This program would also eliminate the requirement for additional investment and maintenance of the two existing Alternate Control Centers (ACCs), at Coolidge, AZ (for Desert Southwest Region [DSW]) and Cheyenne, WY (for RMR) as the two balancing authorities would serve as backup control centers for each other. 4

5 5

6 2 COLORADO RIVER STORAGE PROJECT (CRSP) PROGRAM OVERVIEW This section will summarize information about major accomplishments and project plans for the next several years. The information addresses major accomplishments of the prior fiscal year, planned projects for the current fiscal year and significant changes to the Plan since its last publication. FY08 saw incredible activity regarding power transformers for RMR s CRSP system. Western successfully installed and energized four new transformers at Flaming Gorge, Great Cut and Animas Substations. Unfortunately, two major transformer failures also occurred during the year. Shiprock KU1A and Hayden KZ1A both failed catastrophically within a four month period. The next couple of years will continue to see significant activity for replacing failed and overloading transformers. 2.1 CRSP FY08 Accomplishments and Notable Events Animas-La Plata Project. One of the earmarks to the FY05 Energy and Water Development Appropriation Act was funding for the facilities Western will construct as part of the Animas-La Plata Project. In FY08 Western constructed a new Animas River Durango 115-kV transmission line circuit and the Animas River Substation to provide power to the Bureau of Reclamation s Durango Pumping Plant. Western s facilities were energized in May Flaming Gorge Transformer KY2A Uprate. The project scope was to replace an existing 100 MVA 230/138kV transformer with a 250 MVA unit to address transformer overloading problems. On March 11, 2008, Western successfully energized the new transformer. Great Cut Transformer KX1A replacement. The project scope was to replace the failed Great Cut transformer KX1A. In April 2008 Western successfully energized the new transformer. Great Cut Substation is part of the Dolores Project Power System. Hayden Transformer KZ1A failure. On April 9, 2008, Hayden (HDN) Transformer KZ1A failed catastrophically causing the tank to rupture, spilling oil, breaking an arrestor and causing significant internal damage to the transformer. During the same incident, a shunt reactor also failed and suffered significant damage. HDN KZ1A was placed in service in July 1964 and was about 44 years old at the time of the failure. With the loss of HDN KZ1A, HDN KZ2A was taken out a service to avoid overloading conditions. Also, the loss of HDN KZ1A negatively impacted the constrained paths TOT1A and TOT5 Total Transfer Capability (TTC). TOT1A 6

7 was reduced from 650MW to 520MW. Western s share of TOT1A reduction was 89MW. TOT5 was reduced from 1680MW to 1520MW. Western s share of TOT5 reduction was 160MW. The impacts to the constrained paths and loss of circuit continuity from the Hayden 230-kV to 138-kV buses were projected to cost Western in excess of $250,000 to possibly millions of dollars per month. After analyzing its limited options, Western chose to relocate the Flaming Gorge (FGE) transformer KZ2B to Hayden in place of the failed unit. FGE KZ2B is a 100MVA unit. This option was viable because Western recently completed a project at FGE to replace transformer KY2A with a new 250MVA unit. The new FGE KY2A unit is large enough to meet all loading requirements at FGE and created the ability to remove FGE KZ2B (100 MVA) without impacting operations at FGE. In June 2008, Western energized the relocated FGE KZ2B at Hayden. HDN KZ2A was closed back in parallel. Additionally, the TOT1A rating increased to 600MW and, the TOT5 rating increased back to the 1680MW rating. Shiprock Transformer KU1A Failure. On July 30, 2008, Shiprock (SHR) Transformer KU1A failed catastrophically causing the tank to rupture, spilling oil and causing significant internal damage to the transformer. The cause of the failure appears to be a failed 345-kV bushing. The transformer had a significant amount of power scheduled across it. There were schedules totaling 604 MW in one direction and 356 MW in the other. It was scheduled over the rating in each direction, though the net of the schedules was under its 300 MW rating. Most of the customers that had schedules across SHR KU1A have made alternate arrangements. After evaluating its options, Western chose to relocate the Pinnacle Peak (PPK) transformer KU3A to SHR in place of the failed unit and purchase a new transformer to replace PPK KU3A. PPK KU3A is a 600MVA unit. This option was viable because Western has three 600MVA units at PPK. With the recent drought conditions and lower generation levels, two transformers at PPK are expected to be sufficient until Western can replace PPK KU3A with a new unit. Blue Mesa Poncha OPGW installation. In FY08 Western received funding from the Federal 2GHz Replacement Fund. One of the projects targeted for use of this funding was the installation of fiber optical ground wire (OPGW) on Western s transmission lines between Blue Mesa Switchyard and Poncha Substation. Installation of the fiber avoided the replacement of several radios between the two facilities. Western designed and awarded a construction 7

8 contract for the installation of the OPGW. The contractor completed the installation of the OPGW on October 27, CRSP Communication Facility Projects. Progress continued to replace the analog microwave system with a new digital system. Paths between Methodist Mountain, Granite Peak, Mt Elbert, Malta, Pinion, Big Mesa, North Gunnision and Skito communication sites were replaced. A study to install new voice over IP phone systems throughout the region will be completed in early FY09. This will be used to guide replacement of RMR phone systems throughout the region over the next five years. 2.2 CRSP FY09 Planned Activities Hayden KZ1A replacement. Western will attempt to rebuild the failed transformer Hayden (HDN) KZ1A. In FY08 Western solicited for the rebuild of this transformer. Only one bid for $3M was received. This is about 50% more than the price of a new transformer. Western feels changes to the specifications and a different procurement approach may yield more vendors bidding and better quotes. Therefore, Western is making one more attempt to rebuild HDN KZ1A. If this doesn t produce favorable results, the next step is to order a new unit. Shiprock KU1A replacement. Western intends to award a construction contract for the relocation and installation of the Pinnacle Peak (PPK) KU3A at Shiprock (SHR). This project is in design. Western is targeting completion of this project by the summer of Shiprock KU2A addition: Western and Tri-State are planning a joint project to install a second 345/230kV 600 MW transformer at Shiprock Substation. This project will improve reliability at Shiprock by having parallel 345/230kV 600MW transformers. Western and Tri-State will share capacity between the 345-kV and 230-kV buses. Since the final scope of the project is not completed, cost estimates have not been prepared to include this project in the detailed spreadsheet. Hayden-Kremmling OPGW installation. Western intends to utilize Federal 2GHz Replacement Funds for the installation of OPGW from Kremmling to Hayden Substations. Western will design and award a construction contract by the 2 nd quarter of FY09 with construction completion by the 4 th quarter of FY09. Weld transformer additions. The project requirement is to increase Western s transformation at Weld Substation to 350MVA. This can either be accomplished by replacing the existing 150MVA transformer KV1A with a 350MVA unit or adding a new 200MVA transformer in parallel to KV1A. 8

9 Weld Substation was constructed in 1974 and is a jointly owned facility with Xcel Energy (formerly Public Service of Colorado.) Each entity owns, operates and maintains a 230-kV switchyard, a 115-kV switchyard and a 230/115kV 150MV Autotransformer. The switchyards for each entity are connected through bus ties. The two 150MVA transformers are operated in parallel. Western s transformer KV1A was installed in System planning studies show that the loss of one of the Weld transformers causes the remaining transformer to severely overload. The underlying 115-kV system is no longer adequate to serve the loads in the area without both of the Weld transformers operating in parallel to provide connection to the 230-kV system from the Ault and Fort St. Vrain Substations. This project is needed for reliability of the transmission system in northeastern Colorado. NERC requires that N-1 overload contingencies be mitigated. The Foothills Planning Group commissioned a joint study of the system in and around Weld in mid-2008 to determine the best approach for this transformer issue and the re-build of the 115-kV system between Boyd and Weld. The study report is to be published in early Following that study report, Western will initiate and develop a final scope for the project. Western intends to order a transformer for Weld in FY10. Summary of Interconnection and Transmission Requests for the CRSP Transmission System. RMR received numerous interconnection and transmission requests for the CRSP transmission system. The majority of these requests are for proposed wind generation projects. A snap shot at this time includes four transmission requests totaling 1200MW and three interconnection requests totaling 700MW which are currently active in the queue. Major Communication Fiber Project. Over the past five years, RMR has completed the installation of a joint microwave ring with Tri-State and Xcel that covers the central portion of Colorado in the CRSP service territory. In planning for the future, it has been determined that the capacity of the current system will be exhausted in the next 5-10 years. In addition, replacement with new microwave will not provide for the projected capacity needs. RMR has embarked on a program to install a fiber optic ring on the transmission lines between Loveland, Craig, Montrose and Colorado Springs. A total of 900 miles of fiber is needed. Approximately 400 miles is either installed, funded or will be provided via fiber sharing by our partners. Of the remaining 500 miles, 40 miles had been added to the 10 year plan in previous budget cycles. In this version of RMR s10 year Capital Plan, Western added the remaining 460 miles of fiber either as joint projects or by obtaining rights on partners' 9

10 fiber systems. The Hayden-Craig-Rifle, Rifle-Curecanti, Blue Mesa -Montrose and Poncha-Midway fiber projects are now shown in the 10 year plan as 50/50 joint projects in support of this continued fiber build out. CRSP Communication Facility Projects. Over the past five years, RMR has completed the installation of all microwave spurs in the CRSP service territory. As part of RMR's out-year planning, replacement of this microwave is now planned starting in FY18, consistent with the expected year life expectancy of microwave systems Craig Maintenance Facility. This project will remodel Western s maintenance office at Craig, Colorado to bring it up to current safety codes. Other Equipment Replacement Efforts. The other items identified in the Plan are routine maintenance activities such as replacing obsolete and worn out substation equipment, purchase of supplies to repair and replace damage to transmission lines, and specialized equipment for the crews to accomplish maintenance of the system. Recent load testing of substation and communication site backup battery banks has identified an unusually high rate of failures in the newer valve regulated cells. Several of these sites are scheduled for replacement in FY09. 10

11 2.3 CRSP Program Summary Budget The following spreadsheet summarizes Western s CRSP capital program budget estimates by major program area. 11

12 CRSP Revised: 3/12/2009 Rocky Mountain Region Capital Projects Ten Year Plan Total Costs (x1000) FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 T-Line Improvements and Replacements Substation Improvements and Replacements 5,092 4,760 3,075 1,050 1,600 1,450 1,450 Communication System Improvements and Replacements 3,715 1,860 2,075 9,415 4,965 4, Substation Control, Protection, and Metering Mobile and Heavy Equipment Replacements FY Buildings and Programmatic Investments Actuals 723 1, Total 7,749 10,231 8,433 7,069 12,790 8,459 8,082 4,072 FY2008 CIP Plan Totals 7,785 4,647 7,995 7,798 3,935 4,078 3,969 3,914 Western-only Costs (x1000) CRSP T-Line Improvements and Replacements Substation Improvements and Replacements 5,000 4,730 3,075 1,050 1,600 1,450 1,450 Communication System Improvements and Replacements 815 1,285 2,000 4,895 3,345 3, Substation Control, Protection, and Metering Mobile and Heavy Equipment Replacements FY Buildings and Programmatic Investments Actuals 723 1, Total 4,344 7,239 7,828 6,994 8,270 6,839 6,342 4,072 FY2008 CIP Plan Totals 4,663 4,247 7,355 6,473 3,935 4,078 3,969 3,914

13 2.4 CRSP TEN-YEAR BUDGET PROJECTIONS The following spreadsheets list Western s capital budget estimates by project and by fiscal year. By request of the Colorado River Energy Distributors Association, we have also included Western DSW s CRSP projects in the spreadsheets. 13

14 3/12/2009 Yellow Highlight = New Project to list Red Text = Change from previous version Blue Text = will be removed from list Green Highlight = Annual Equipment Replacement Programs W Total = Western Only Costs O Total = Trust and Joint Participation Costs FY Total = Sum of W Total and O Total MPS Split = Multiple Power System Cost Split. RMR CRSP Capital Investment Plan FY09-FY18 Detail Fund MPS Estimate Actuals thru PROJECT FY09 FY10 FY11 FY12 FY13 PROJECT Power Sys Split FY09-FY18 end of FY08 TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL Transmission Lines Line Equipment Replacements - General (CRSP) CRSPVMF Animas-Laplata Project - Complete CRSPWC0 8,850 8,850 Gore Pass-Hayden - 138kV Uprate CRSPVMF T-Line SubTotal 450 9,238 9, Substations Substation Test Equipment (CRSP) CRSPVMF , Battery and Charger Replacements (CRSP) CRSPVMF , CCVT, PT, & CT Replacements (CRSP) CRSPVMF Substation Disconnect Switch Replacements (CRSP) CRSPVMF Surge Arrester Replacements (CRSP) CRSPVMF Misc. Substation Elect. Equip. Replace. (CRSP) CRSPVMF , Transformer Monitors (CRSP) CRSPVMF Archer 115kV Switch Replacements CRSPVMF Archer 230kV Switch Replacement CRSPVMF Ault 492 Rebuild CRSPVMF Ault Station Service CRSPVMF Circuit Breaker Analyzers - WCMO CRSPVMF Collbran 362 Replacement LLCOVMF Curecanti 1082 Breaker Replacement CRSPVMF Curecanti Black Start MOD CRSPVMF Hayden Station Service CRSPVMF Hayden KZ1A Transformer Replacement CRSPVMF 2, ,061 2,300 2, Rifle 282, 382 Replacement CRSPVMF Shiprock KU1A Transformer Replacement CRSPVMF 1,000 1,000 1,000 1,000 Shiprock KU3A Transformer Gas Monitors CRSPVMF Shiprock KU3B Transformer Gas Monitors CRSPVMF Vernal 1372 Replacement CRSPVMF Vernal 1872 Replacement CRSPVMF Vernal 2172 Replacement CRSPVMF Waterflow Substation ti - Line Relays & CCVTs on San Juan Line CRSPVMF Weld 230 upgrades (AU-WLD 230kV #1&2 thermal upgrade) CRSPVMF Weld 230/115kV Transformer Additions CRSPWCF 6,000 6, ,700 3,700 2,200 2,200 Ault 3124,3224 Reactor Breaker Replacement - Complete CRSPVMF Flaming Gorge KY2A Replacement - Complete CRSPVMF 4,320 4,320 Great Cut Replace Transformer KXIA - Complete CRSPVMF 1,865 1,865 Shiprock 3262 Replacement - Cancelled CRSPVMF Shiprock 3362 Replacement - Cancelled CRSPVMF Shiprock 3462 Replacement - Cancelled CRSPVMF Vernal 1576 Replacement - Complete CRSPVMF Vernal 1672 Replacement - Complete CRSPVMF Substation SubTotal 22,937 7,668 32,055 5, ,092 4, ,760 3,075 3,075 1, ,110 1, ,650 Communications Communications Test Equipment (CRSP) CRSPVMF Big Mesa - Poncha 2 Gig MW Replacement with Fiber CRSPT&R 400 3,094 3, Buffalo Pass MW Building Replacement CRSPVMF Central PMOC Communications Loop CRSPVMF Comm Battery/Charger Replacements CRSPVMF Comm Generator Replacements CRSPVMF CRSP/WCMO Spurs (MDR8000/LEDR Replacement) CRSPVMF 1,800 2,400 Digital Crossconnect Replacements e CRSPVMF Erie-Loveland-Cheyenne I-25 Fiber CRSPVMF ,500 2, ,000 2,500 Fiber Multiplexers (CRSP) CRSPVMF , Field Phone Switch Replacements CRSPVMF Grouse Comm Building Replacement CRSPVMF Hayden-Craig-Rifle OPGW CRSPVMF 5,040 5, ,470 2,520 4,990 Hayden-Kremmling OPGW CRSPT&R ,500 2,500 2,500 Magnetic-Fontenelle MDR8000 Replacement CRSPVMF 2,200 2,200 Misc. Communications Facilities Replacement (CRSP) CRSPVMF , Mobile Radio Infrastructure Replacements CRSPVMF Mobile Radio Replacements CRSPVMF 0.5 1,000 1, Montrose - Blue Mesa OPGW CRSPVMF , , Montrose IP Phone Switch Replacement CRSPVMF Montrose to Mexican Hat MW Replacement CRSPVMF 1,700 1, New Mobile Radio Sites (STK, MNK, ANM, AKH) CRSPVMF PMOC Phone Switch Replacement CRSPVMF PMOC Voice Recorder Replacement CRSPVMF Poncha-Midway OPGW CRSPVMF 3,480 3, Raspberry Creek Communication Building Replacement CRSPVMF Rifle-Curecanti OPGW CRSPVMF 3,240 3, ,570 1,620 3,190 Shiprock-Moncisco-Gallegos Microwave CRSPVMF Telco Channel Bank Replacements CRSPVMF Communications SubTotal 32,785 3,195 36, ,900 3,715 1, ,860 2, ,075 4,895 4,520 9,415 3,345 1,620 4,965 1 of 4

15 3/12/2009 Yellow Highlight = New Project to list Red Text = Change from previous version Blue Text = will be removed from list Green Highlight = Annual Equipment Replacement Programs W Total = Western Only Costs O Total = Trust and Joint Participation Costs FY Total = Sum of W Total and O Total MPS Split = Multiple Power System Cost Split. RMR CRSP Capital Investment Plan FY09-FY18 Detail Fund MPS Estimate Actuals thru PROJECT FY09 FY10 FY11 FY12 FY13 PROJECT Power Sys Split FY09-FY18 end of FY08 TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL Control, Protection and Metering Protective Relay Replacements (CRSP) CRSPVMF 6,710 7, Test Equipment Replacements (CRSP) CRSPVMF CPM SubTotal 7,510 8, Mobile & Heavy Equipment Misc Heavy Equipment Replacements (CRSP) CRSPVMF , Cheyenne Bucket Truck CRSPVMF Front End Loader - Montrose CRSPVMF Skid Steer Loader - Montrose CRSPVMF PMOC - Replace Large Productions Copier CRSPVMF Western Colorado - Engine Generator, 350 kw - Cancelled CRSPVMF Mobile & Heavy Equipment SubTotal 4,151 4, Programmatic Improvements Small Facility Projects (RRADS - CRPS) CRSPVMF 2,675 3, E-Scheduling/E-Tagging (CRSP) CRSPVMF IT General Support Systems (CRSP) CRSPVMF Operations Center Map Board Replacement CRSPVMF 31% Montrose Cooling Tower Replacement CRSPVMF Montrose Card Reader Replacement CRSPVMF SCADA Upgrades (CRSP) CRSPVMF 31% Shiprock Substation Access Road Rebuild CRSPVMF Craig Maintenance Facility CRSPVMF Maintenance Data Integration CRSPVMF 33% Operation Consolidation Program (CRSP) CRSPVMF 33% OCP SCADA (CRSP) CRSPVMF 33% OCP Comm (CRSP) CRSPVMF 33% OCP IT (CRSP) CRSPVMF 33% WIN Router - Complete CRSPVMF Power Marketing Op Center HVAC Replcmt (Computer Room) - Complete CRSPVMF 33% Alt. Control Center Relocation - (CRSP) - Cancelled CRSPWCF 31% Programmatic Improvements SubTotal 5,758 6, ,073 1, RMR FY09 CRSP CIP Grand Total 73,591 20,101 97,507 7,239 2,992 10,231 7, ,433 6, ,069 8,270 4,580 12,850 6,839 1,670 8,509 RMR FY08 CRSP CIP Totals 43,126 43,126 4, ,647 7, ,955 6,473 1,325 7,798 3,935 3,935 4,078 4,078 2 of 4

16 3/12/2009 Yellow Highlight = New Project to list Red Text = Change from previous version Blue Text = will be removed from list Green Highlight = Annual Equipment Replacement Programs W Total = Western Only Costs O Total = Trust and Joint Participation Costs FY Total = Sum of W Total and O Total MPS Split = Multiple Power System Cost Split. RMR CRSP Capital Investment Plan FY09-FY18 Detail Fund MPS Estimate Actuals thru PROJECT PROJECT Power Sys Split FY09-FY18 end of FY08 TOTAL Transmission Lines Line Equipment Replacements - General (CRSP) CRSPVMF Animas-Laplata Project - Complete CRSPWC0 8,850 8,850 Gore Pass-Hayden - 138kV Uprate CRSPVMF T-Line SubTotal 450 9,238 9,738 Substations Substation Test Equipment (CRSP) CRSPVMF ,150 Battery and Charger Replacements (CRSP) CRSPVMF ,300 CCVT, PT, & CT Replacements (CRSP) CRSPVMF Substation Disconnect Switch Replacements (CRSP) CRSPVMF Surge Arrester Replacements (CRSP) CRSPVMF Misc. Substation Elect. Equip. Replace. (CRSP) CRSPVMF ,400 Transformer Monitors (CRSP) CRSPVMF Archer 115kV Switch Replacements CRSPVMF Archer 230kV Switch Replacement CRSPVMF Ault 492 Rebuild CRSPVMF Ault Station Service CRSPVMF Circuit Breaker Analyzers - WCMO CRSPVMF Collbran 362 Replacement LLCOVMF Curecanti 1082 Breaker Replacement CRSPVMF Curecanti Black Start MOD CRSPVMF Hayden Station Service CRSPVMF Hayden KZ1A Transformer Replacement CRSPVMF 2, ,061 Rifle 282, 382 Replacement CRSPVMF Shiprock KU1A Transformer Replacement CRSPVMF 1,000 1,000 Shiprock KU3A Transformer Gas Monitors CRSPVMF Shiprock KU3B Transformer Gas Monitors CRSPVMF Vernal 1372 Replacement CRSPVMF Vernal 1872 Replacement CRSPVMF Vernal 2172 Replacement CRSPVMF Waterflow Substation ti - Line Relays & CCVTs on San Juan Line CRSPVMF Weld 230 upgrades (AU-WLD 230kV #1&2 thermal upgrade) CRSPVMF Weld 230/115kV Transformer Additions CRSPWCF 6,000 6,000 Ault 3124,3224 Reactor Breaker Replacement - Complete CRSPVMF Flaming Gorge KY2A Replacement - Complete CRSPVMF 4,320 4,320 Great Cut Replace Transformer KXIA - Complete CRSPVMF 1,865 1,865 Shiprock 3262 Replacement - Cancelled CRSPVMF Shiprock 3362 Replacement - Cancelled CRSPVMF Shiprock 3462 Replacement - Cancelled CRSPVMF Vernal 1576 Replacement - Complete CRSPVMF Vernal 1672 Replacement - Complete CRSPVMF Substation SubTotal 22,937 7,668 32,055 Communications Communications Test Equipment (CRSP) CRSPVMF Big Mesa - Poncha 2 Gig MW Replacement with Fiber CRSPT&R 400 3,094 3,494 Buffalo Pass MW Building Replacement CRSPVMF Central PMOC Communications Loop CRSPVMF Comm Battery/Charger Replacements CRSPVMF Comm Generator Replacements CRSPVMF CRSP/WCMO Spurs (MDR8000/LEDR Replacement) CRSPVMF 1,800 2,400 Digital Crossconnect Replacements e CRSPVMF Erie-Loveland-Cheyenne I-25 Fiber CRSPVMF ,500 2,500 Fiber Multiplexers (CRSP) CRSPVMF ,500 Field Phone Switch Replacements CRSPVMF Grouse Comm Building Replacement CRSPVMF Hayden-Craig-Rifle OPGW CRSPVMF 5,040 5,040 Hayden-Kremmling OPGW CRSPT&R ,500 Magnetic-Fontenelle MDR8000 Replacement CRSPVMF 2,200 2,200 Misc. Communications Facilities Replacement (CRSP) CRSPVMF ,000 Mobile Radio Infrastructure Replacements CRSPVMF Mobile Radio Replacements CRSPVMF 0.5 1,000 1,000 Montrose - Blue Mesa OPGW CRSPVMF ,350 Montrose IP Phone Switch Replacement CRSPVMF Montrose to Mexican Hat MW Replacement CRSPVMF 1,700 1,700 New Mobile Radio Sites (STK, MNK, ANM, AKH) CRSPVMF PMOC Phone Switch Replacement CRSPVMF PMOC Voice Recorder Replacement CRSPVMF Poncha-Midway OPGW CRSPVMF 3,480 3,480 Raspberry Creek Communication Building Replacement CRSPVMF Rifle-Curecanti OPGW CRSPVMF 3,240 3,240 Shiprock-Moncisco-Gallegos Microwave CRSPVMF Telco Channel Bank Replacements CRSPVMF Communications SubTotal 32,785 3,195 36,680 FY14 FY15 FY16 FY17 FY18 W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL ,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1, ,450 1,450 1,450 1,450 1,450 1,450 1,450 1,450 1,450 1, ,690 1,740 3,430 2,200 2,200 3,115 1,740 4, ,200 1, ,000 3,000 3 of 4

17 3/12/2009 Yellow Highlight = New Project to list Red Text = Change from previous version Blue Text = will be removed from list Green Highlight = Annual Equipment Replacement Programs W Total = Western Only Costs O Total = Trust and Joint Participation Costs FY Total = Sum of W Total and O Total MPS Split = Multiple Power System Cost Split. RMR CRSP Capital Investment Plan FY09-FY18 Detail Fund MPS Estimate Actuals thru PROJECT PROJECT Power Sys Split FY09-FY18 end of FY08 TOTAL Control, Protection and Metering Protective Relay Replacements (CRSP) CRSPVMF 6,710 7,400 Test Equipment Replacements (CRSP) CRSPVMF CPM SubTotal 7,510 8,300 Mobile & Heavy Equipment Misc Heavy Equipment Replacements (CRSP) CRSPVMF ,050 Cheyenne Bucket Truck CRSPVMF Front End Loader - Montrose CRSPVMF Skid Steer Loader - Montrose CRSPVMF PMOC - Replace Large Productions Copier CRSPVMF FY14 FY15 FY16 FY17 FY18 W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL Western Colorado - Engine Generator, 350 kw - Cancelled CRSPVMF Mobile & Heavy Equipment SubTotal 4,151 4,651 Programmatic Improvements Small Facility Projects (RRADS - CRPS) CRSPVMF 2,675 3,000 E-Scheduling/E-Tagging (CRSP) CRSPVMF IT General Support Systems (CRSP) CRSPVMF Operations Center Map Board Replacement CRSPVMF 31% Montrose Cooling Tower Replacement CRSPVMF Montrose Card Reader Replacement CRSPVMF SCADA Upgrades (CRSP) CRSPVMF 31% Shiprock Substation Access Road Rebuild CRSPVMF Craig Maintenance Facility CRSPVMF Maintenance Data Integration CRSPVMF 33% Operation Consolidation Program (CRSP) CRSPVMF 33% OCP SCADA (CRSP) CRSPVMF 33% OCP Comm (CRSP) CRSPVMF 33% OCP IT (CRSP) CRSPVMF 33% WIN Router - Complete CRSPVMF Power Marketing Op Center HVAC Replcmt (Computer Room) - Complete CRSPVMF 33% Alt. Control Center Relocation - (CRSP) - Cancelled CRSPWCF 31% Programmatic Improvements SubTotal 5,758 6,083 RMR FY09 CRSP CIP Grand Total 73,591 20,101 97,507 RMR FY08 CRSP CIP Totals 43,126 43, ,342 1,740 8,082 4,072 4,072 4,315 4,315 3,915 3,915 6,115 6,115 3,969 3,969 3,914 3,914 3,615 3,615 3,215 3,215 4 of 4

18 3 PICK SLOAN OVERVIEW This section will summarize information about major accomplishments and project plans for the next several years. The information addresses major accomplishments of the prior fiscal year, planned projects for the current fiscal year and significant changes to the Plan since its last publication. In FY08 Western completed the construction of two large transmission rebuild projects; Cheyenne-Miracle Mile and the Beaver Creek-Hoyt. Western also awarded the Ault-Cheyenne rebuild project. Design continued on all the new 230-kV substations required along the Ault-Miracle Mile 230-kV line. 3.1 Pick Sloan FY08 Accomplishments and Notable Events Eastern Plains Transmission Project. Western canceled preparation of an Environmental Impact Statement (EIS) on a proposal by Western to participate with Tri-State Generation and Transmission Association, Incorporated (Tri-State), in the construction of the Eastern Plains Transmission Project (EPTP). Western issued a Notice of Intent to prepare an EIS for the EPTP in the Federal Register on August 2, 2006, and conducted 10 public scoping meetings throughout the project area from August 28 through September 14, Additional public meetings were held in February 2007, and in June Western canceled the preparation of the EIS due to anticipated changes in the EPTP scope of work. If Western decides to participate in the re-defined EPTP, a National Environmental Policy Act review will be initiated at that time. Tri-State may continue with development of the EPTP. Ault-Cheyenne-Miracle Mile Transmission Line Rebuilds. For the past several years, RMR has been developing a series of projects to rebuild the Cheyenne-Miracle Mile and Ault-Cheyenne 115-kV lines. The result of the projects will be a new Ault-Miracle Mile 230-kV line and a rebuilt Ault-Cheyenne 115-kV line. In addition to the transmission line projects, several associated substation projects at Ault, Miracle Mile, Cheyenne and Snowy Range are required. Cheyenne-Miracle Mile 115-kV. In FY08 Western completed the construction of the 140 mile Cheyenne-Miracle Mile rebuild project. The line was energized in August Background: In FY04 Western began plans to rebuild this transmission line in southern Wyoming to 230-kV specifications. In FY06, Western awarded a construction contract. In FY07, tasks included acquiring necessary ROW easements and continuing construction. 18

19 Ault-Cheyenne 230/115-kV Transmission Line Rebuild Project. Western plans to rebuild this transmission line as a double circuit 230-kV, with one circuit to be operated at 115-kV to minimize impacts to existing customers along the line. In FY08 Western completed the design and award of the construction contract for this project. Additionally, Western and Tri-State entered into a joint participation agreement for the rebuild of this line. Construction is scheduled to begin in December The planned in-service date is December Ault, Miracle Mile, Snowy Range and Cheyenne 230-kV additions. The Ault, Miracle Mile, Snowy Range and Cheyenne 230-kV additions projects will add the necessary 230-kV facilities and transformation for the Ault-Miracle Mile 230-kV line. These projects began in FY07 with planning and design activities. Design activities continued through FY08. Western intends to award construction contracts for all four substations in the 1 st quarter of FY09. Also, in FY08 Western adjusted the order for two Miracle Mile 230/115-kV transformers to accommodate a scope change for the addition of 60 MVAR of shunt reactance needed for voltage control at the substation. The planned in-service date for each substation is May Beaver Creek-Hoyt Transmission Line Rebuild. In FY08 Western successfully completed construction of this project. On November 5, 2007, the line was energized and put into service. Background: To avoid a reduction in the TTC of TOT3, Western developed a project to rebuild the existing 32.4-mile line at 230-kV. Additionally, Western and Tri-State entered into a joint participation agreement for the rebuild of this transmission line as a double circuit 230-kV transmission line. In FY06 Western awarded the construction contract. Erie Hoyt Transmission Line Rebuild. In FY08 Western completed the design field data collection, and began design for the rebuild of this project. The Erie Hoyt rebuild project is a continuation of the Beaver Creek Hoyt transmission line rebuild project and is covered under the same joint participation agreement with Tri-State. Granby Pumping Plant (GPP)-Windy Gap 69-kV Rebuild. Western continues to proceed with the Environmental Impact Statement for this project. Western plans to complete the environmental clearance in FY09. The in service date for the Project is late in FY11. Lovell Yellowtail 115-kV #1 & 2 rebuilds (Phase 1). This project is to rebuild Western s 115-kV lines across the National Parks Service s Big Horn National Recreation Area. Historically, Western has had difficulty obtaining access to these lines, limiting the maintenance of these lines which has 19

20 caused them to deteriorate to the point that Western is concerned about their reliability. Western has begun the process to rebuild these lines. FY08 saw activities on the environmental clearance, design and field data. Torrington Substation KY2A Addition. Western designed and awarded a construction contract for the addition of KY2A. The transformer was delivered September 5, In service date is planned for spring of FY09. Background: Western and the City of Torrington entered into an agreement to add a parallel transformer in Western s Torrington Substation. Load forecasts show significant new loads being served from Torrington Substation which will exceed the rating of the existing transformer. This project will add a second 115/34.5-kV transformer in parallel to meet the new loads. Western is participating in this project since this additional transformer will serve as an integral link between the 115-kV system and the future 69-kV system being developed as part of the Platte Valley Voltage Conversion Project. Western purchased the transformer in FY07. Kremmling-Windy Gap OPGW installation. In FY08 Western received funding from the Federal 2GHz Replacement Fund. One of the projects targeted for use of this funding was the installation OPGW on Western s transmission lines between Kremmling and Windy Gap Substations. Installation of the fiber avoided the replacement of several radios serving between the two facilities. Western designed and awarded a construction contract for the installation of the OPGW. The contractor completed the installation of the OPGW on October 27, Timnath Black Hollow transmission line rebuild. Western and Platte River Power Authority (PRPA) have a joint participation agreement for the rebuild of transmission lines in the vicinity of Fort Collins, Colorado. In FY08 PRPA completed the rebuild of the 4.5 mile Timnath Black Hollow transmission line to 230-kv specifications. Wray Substation. On October 31, 2008, Tri-State energized the second feed into Western s Wray Substation. This line was part of a joint project between Western and Tri-State to improve reliability to Wray Substation. Wray Substation had been served from a radial feed on Western s transmission system; therefore, Western was not able to adequately perform line maintenance without causing an outage to the substation. The project improves substation reliability for Y-W Electric Association and the City of Wray. Western constructed the substation additions needed for the second feed, and Tri-State constructed the line which tapped off a nearby Tri-State 115-kV line. Western and Tri-State are each responsible for 50 percent of the total project cost. Communication Facility Projects. Progress continued in replacing the analog microwave system with a new digital system. In FY08, analog 20

21 microwave radios were replaced with digital radios at Chadron Hill, Wayside, Merino, Akron Hill, Otis, Haxtun, Frenchman Creek and Julesburg Hill. A new fiber optic system was brought online between Loveland, Flatiron, Bald Mountain, Estes, Marys Lake, East Portal, West Portal and Granby. 3.2 Pick Sloan FY09 Planned Activities Ault-Cheyenne-Miracle Mile Transmission Line Rebuilds Ault-Cheyenne 230/115-kVTransmission Line Rebuild Project. In FY09, Western will continue to acquire any necessary ROW easements, and begin construction of the project. Construction is scheduled to start in December The planned in-service date is December Ault, Miracle Mile, Snowy Range and Cheyenne 230-kV additions. FY09 activities for the Ault, Miracle Mile, Snowy Range and Cheyenne 230-kV addition projects will include awarding of the construction contracts, ordering of all remaining government furnished equipment and commencement of construction. Also this year, delivery of four 230/115- kv 200MW transformers will occur. The planned in service dates for all four substations is May Ault 230/115kV Transformer Addition. This is a new project at Ault Substation to add a 230/115-kV, 200MW transformer with the associated breaker terminals. This project was included as part of the scope of the joint partnership agreement between Western and Tri-State on the Ault-Cheyenne transmission rebuild. In FY09 Western will begin the planning and design for this project and order the transformer. Ault-Black Hollow Reconductor. This project was also included as part of the scope of the joint partnership agreement between Western and Tri-State on the Ault-Cheyenne transmission rebuild. In FY09 Western will begin the planning and design for this project. 21

22 Front Range Transmission Improvement Projects. In 2003, Western developed a comprehensive plan to systematically rebuild numerous 115-kV lines in Northern Colorado s Front Range. The plan for these projects has been further defined each year. FY08 saw completion of the Beaver Creek-Hoyt, and Timnath-Black Hollow transmission lines. FY09 will see the construction of the Erie-Hoyt transmission line. Western will also continue planning the rebuild of the Boyd-Weld transmission line corridor. 22

23 Central Wyoming Transmission Improvement Projects. Western is initiating a series of projects to systematically rebuild its 115-kV transmission lines in central Wyoming called the Central Wyoming Transmission Improvement Projects (CWTIP). The projects will address both the deteriorating physical conditions and system overloading conditions which exist for the targeted lines. The transmission lines proposed to be rebuilt and upgraded are: Alcova-Miracle Mile East Alcova-Miracle Mile West Alcova-Casper North Alcova-Casper South Casper-Dave Johnston section of Casper-Glendo North Casper PACE-Dave Johnston section of Casper PACE-Glendo South Currently, the scope of the CWTIP includes rebuilding approximately 156 miles of existing 115-kV wood structure transmission lines from Western s Miracle Mile Substation to near the Dave Johnston Power Plant Switchyard. The rebuild would include upgrade to 230-kV construction with wood 23

24 structures. Western intends to continue operating at 115-kV for the foreseeable future. Excluded from the Project scope are approximately 13 miles of both the Casper-Glendo North and Casper PACE Glendo South which were previously rebuilt in 1989 as 230-kV double circuit on single pole steel structures. Western s Maintenance Office has indicated that the conditions of these lines (along with the Lovell-Yellowtail 115-kV lines) are among the worst in RMR. This assessment is backed up by the results of annual wood pole testing and treatment program. Several of the line segments have rejected structure rates exceeding 10%. All the lines contain numerous stubbed poles. These lines are also beginning to show up in system studies as overloading for certain system configurations. These lines were built with 397 ACSR conductors. Western feels the lines can not be reconductored due to the age and condition of the structures; and because of the increased loading a larger conductor would add. In FY09, Western will begin the planning and the environmental processes. Field data, design and ROW acquisition will begin in late FY10. The first construction contract is planned for FY11. The six projects will be rebuilt over a series of four to eight years depending upon funding and other RMR priorities. 24

25 Virginia Smith Converter Station (Sidney Converter Station). The Sidney Converter Station is a back-to-back, 200MW converter station capable of bidirectional power flow between the western and eastern electrical interconnections and has been in service approximately twenty-one years. Siemens of Germany designed, manufactured and constructed the converter station based on a fifteen year life span. Technical and replacement parts support from Siemens has deteriorated significantly in recent years. The Sidney Converter Station has suffered significant long term outages in 2008 due to weather, component age and system conditions. Western has stock piled spare parts with the intention of operating the converter station for approximately nine more years (thirty year life span). A project has been initiated within the Capital Investment Program Plan to explore future options for the converter station. Western plans to start discussions with customers in 2009 about the future of the station. Technology and ratings options as well as operational and rate impacts related to the possible replacement of the Sidney Converter Station will be investigated. Lovell-Yellowtail #1 & kV rebuilds (Phase 1). In FY09 Western intends to complete the environmental clearance and will begin design of the 25

26 project. In FY10 Western will award a construction contract for the rebuild of Phase 1. Granby Pumping Plant (GPP)-Windy Gap 69-kV Rebuild. The project will rebuild the 70-year old 69-kV line from GPP to Windy Gap as well as add a new 138-kV line on new double circuit 138-kV constructed structures. A 138/69-kV transformer will be added within the GPP switchyard. The project is a joint effort among Tri-State, Northern Colorado Water Conservancy District, and Western. Work on the environmental impact statement will continue. This project is to ensure system reliability in the event of a loss of the Adams Tunnel Cable circuit. The projected in-service date for this project is late FY11. Willoby Switchyard 115-kV. Western and Tri-State plan to execute the contract for this project in FY09. Environmental work, field data collection, land acquisition and design work are planned activities for FY09. This project is to construct the Willoby Switchyard at the site of the present Prospect Valley Tap. The project will provide additional voltage support and reliability for the future Boomerang Tap delivery off Western's Kiowa Creek-Weld 115-kV line. The scheduled in-service date is mid FY10. Torrington Substation KY2A Addition. Planned tasks for FY09 include completion of construction. This project will add a second 115/34.5-kV transformer in parallel to meet increasing loads. Western will participate in this project since this additional transformer will serve as an integral link between the 115-kV system and the future 69-kV system being developed as part of the Platte Valley Voltage Conversion Project. The scheduled inservice date is 2 nd quarter of FY09. Arrow Substation interconnection at Archer: Western and Tri-State are jointly planning a project that would interconnect the LRS-Story 345-kV line to Archer Substation near Cheyenne, WY. The initial project scope includes construction of Arrow Substation to sectionalize the LRS-Story 345-kV line near Archer Substation; install 345/230kV transformation at Arrow; rebuild Western s Archer-Cheyenne 115-kV lines to 230-kV; install a second 230/115kV transformer at Cheyenne; and install several 230-kV bays additions at both Archer and Cheyenne. The project scope is yet not fully developed; therefore, this project is not included in the detailed spread sheets. Communication Facility Projects. The replacement of analog microwave radio links will be completed and all traffic will be moved onto the new backbone system by the end of FY09. The central backbone communications ring between Loveland and Cheyenne will be replaced in FY This will upgrade this key segment of the region s communication system to a mostly fiber, high capacity system. 26

27 A study to install new voice over IP phone systems throughout the region will be completed in early FY09. This will be used to guide replacement of RMR phone systems throughout the region, starting at the region s PMOC facility in Loveland. Other Equipment Replacement Efforts. The other items identified in the Plan are routine maintenance activities such as replacing obsolete and wornout substation equipment, purchase of supplies to repair and replace damage to transmission lines, and specialized equipment for the crews to accomplish maintenance of the system. Power transformers will be replaced at Ogallala (FY10) and Garland Substations (FY09). Recent load testing of substation and communication site backup battery banks has identified an unusually high rate of failures in the newer valve regulated cells. Several of these sites are scheduled for replacement in FY09. Summary of Interconnection and Transmission Requests for the LAP Transmission system. RMR has received numerous interconnection and transmission requests for the LAP Transmission system. The majority of these requests are for proposed wind generation projects. A snap shot at this time includes 27 transmission requests totaling 1699MW and 21 interconnection requests totaling 2324MW which are currently active in the queue. 3.3 Pick Sloan Program Summary Budget The following spreadsheet summarizes Western s Pick Sloan capital program budget estimates by major program area. 27

28 Revised: 3/12/3009 Rocky Mountain Region Capital Projects Ten Year Plan Total Costs (x1000) FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Pick Sloan T-Line Improvements and Replacements 54,771 26,160 31,175 11,575 10,875 13,045 12,905 Substation Improvements and Replacements 20,236 13,910 4,800 7,460 6,455 7,835 1,690 Communication System Improvements and Replacements 2,423 1,165 2,605 11,175 5,375 5,305 4,305 Substation Control, Protection, and Metering 1, Mobile and Heavy Equipment Replacements FY Buildings and Programmatic Investments Actuals 854 1, , Total 33,864 79,779 44,029 40,584 32,920 24,752 27,935 20,722 FY2008 CIP Plan Totals 40,122 68,755 47,087 44,315 28,195 24,775 33,944 26,016 Western-only Costs (x1000) Pick Sloan T-Line Improvements and Replacements 9,861 14,160 16,175 11,075 10,875 13,045 12,905 Substation Improvements and Replacements 14,586 7,600 4,405 7,460 6,455 7,835 1,690 Communication System Improvements and Replacements 1,523 1,165 2,030 4,915 3,540 3,505 2,905 Substation Control, Protection, and Metering 1, Mobile and Heavy Equipment Replacements FY Buildings and Programmatic Investments Actuals 854 1, , Total 20,577 28,319 25,719 24,614 26,160 22,917 26,135 19,322 FY2008 CIP Plan Totals 32,649 25,155 27,427 28,095 26,995 24,700 33,944 26,016 Network Upgrades 3,

29 3.4 PICK SLOAN TEN-YEAR BUDGET PROJECTIONS The following spreadsheets list Western s capital budget estimates by project and by fiscal year. 29

30 3/12/2009 Yellow Highlight = New Project to list Red Text = Change from previous version Blue Text = will be removed from list Green Highlight = Annual Equipment Replacement Programs W Total = Western Only Costs O Total = Trust and Joint Participation Costs FY Total = Sum of W Total and O Total MPS Split = Multiple Power System Cost Split. RMR Pick Sloan Capital Investment Plan FY09-FY18 Detail Fund MPS Estimate Actuals thru PROJECT FY09 FY10 FY11 FY12 FY13 PROJECT Power Sys Split FY09-FY18 end of FY08 TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL Transmission Lines Line Equipment Replacements - General (PS) Ault-Black Hollow Reconductor PSWCF Cheyenne-Ault 230kV T-line Upgrade PSWCF 19,200 8,417 27,617 19,200 19,200 Alcova - Miracle Mile West 115-kV rebuild PSWCF 9,200 9, ,775 7, Alcova - Miracle Mile East 115-kV rebuild PSWCF 9,285 9, Alcova - Casper North 115-kV rebuild PSWCF 10,830 10, Alcova - Casper South 115-kV rebuild PSWCF 11,575 11, ,120 9, Casper - Glendo North 115-kV rebuild PSWCF 10,675 10,675 Casper - Glendo South 115-kV rebuild PSWCF 11,385 11, ,825 8,825 East Morrill Tap-Wildcat 34.5-kV line PSWCF 1,295 1, Erie-Hoyt 230-kV Upgrade PSWCF 36, ,566 6,400 21,000 27,400 2,400 7,100 9,500 Flatiron-Valley 230kV Upgrade PSWCF 14,305 14,305 Gore Pass-Muddy Pass Line Reroute (Wolford Mtn-Red Dirt Creek) Granby Pump Plant-Windy Gap 69-kV rebuild PSWCF 11,250 1,517 12,767 1,750 4,000 5,750 1,500 4,000 5,500 Lovell-Yellowtail #1 & #2 T-line Rebuilds Phase 1 (NPS) PSWCF 16, , ,250 8,250 7,500 7,500 Lovell-Yellowtail #1 & #2 T-line Rebuilds Phase 2 PSWCF 36,110 36,110 Weld-Boyd 230-kV Upgrade PST&R 16,500 16, ,000 15, Wildcat-Sievers 69-kV line PSWCF 3,625 3, Beaver Creek - Hoyt 230-kV Upgrade - Complete PSWCF 22,300 22,300 Central WY Transmission Improvements - Created seperate project PSWCF Cheyenne-Miracle Mile 230kV T-Line Upgrade - Complete PSWCF 39,898 39,898 Eastern Plains Transmission Project - On Hold PSWCF Gering-Gering Valley 34.5-kV T-Line - EXPENSED Timnath - Black Hollow 230-kV Upgrade - Complete PSWCF 2,126 2,126 T-Line SubTotal 219,806 75, ,714 9,861 44,910 54,771 14,160 12,000 26,160 16,175 15,000 31,175 11, ,575 10,875 10,875 Substations Battery and Charger Replacements (PS) 1,150 1, CCVT, PT, & CT Replacement (PS) Misc. Substation Elect. Equipm. Replace. (PS) 5,400 6, Transformer Monitors (PS) 880 1, Substation Test Equipment (PS) Substation Disconnect Switch Replacements (PS) Alcova 462, 662, 862, 1062 Replacement Alliance Control Building Ault 230-kV additions (AU-MM 230) PSWCF 1, ,418 1,330 1,330 Ault 230/115-kV xfmr additions PSWCF 8,000 8, ,250 3,000 1,000 4,000 5,000 Cheyenne 230-kV additions PSWCF 4,610 3,695 8,305 4,360 4, Cheyenne 2nd 230/115kV transformer additions PSWCF 4,455 4,455 2,785 2,785 1,450 1,450 Flatiron Switch Replacements Fort Morgan West 15MVAR shunt capacitors PSWCF 1,000 1, Frenchman Creek Shunt Capacitor Banks PSWCF 1,100 1, ,000 1,000 Garland KZ1A Replacement Garland 324 Breaker Replacement Granby Pumping Plant Transformer Modifications Limestone 34.5-kV additions 50 1,214 1, Lingle Substation 69kV additions PSWCF 4,465 4, ,400 1,400 Lusk Rural - Podolak Improvements Lusk KX1A Transformer Replacement Miracle Mile 230-kV additions (AU-MM 230) PSWCF 3,110 5,000 8,110 2,860 2, North Platte (FC, S, K) Interrupter Switches 1,000 1, Ogallala a a Transformer modifications o Ralston 122, 222, 322 Breaker Replacement Sidney Converter Station Replacement PSWCF Sidney Shunt Capacitor Banks PSWCF 1,100 1, ,000 1,000 Snowy Range Substation 230-kV (Laramie) PSWCF 3,605 3,339 6,944 3,355 3, Snowy Range 2nd 230/115kV transformer additions PSWCF 4,335 4,335 2,785 2,785 1,320 1,320 Torrington Substation KY2A addition PSWCF 100 2,155 2, Torrington Substation 69-kV additions PSWCF 5,170 5, ,175 1,175 Wildhorse Creek Substation - 90MW wind (2005-G1 & 2007-T1) PSNET 3, ,059 3,000 3, Willoby Switchyard 115-kV PSWCF 4, , ,900 1,500 4, Willow Creek KZ2A Replacement Beaver Creek 230-kV additions (BC-EE 230-kV) - ON HOLD PSWCF Big George Substation - 69-kV Modifications - Complete PST&R Happy Jack 30 MW Wind (2004-G1) - Complete PSNET Haxtun KY1A Transformer Replacement -- Complete Lovell 566 Circuit Breaker Replacement - Cancelled Medicine Bow - 40MW wind (2007-T5) - Cancelled PST&R Raderville 115KV Switch Upgrade - Complete Substations SubTotal 66,366 18,902 86,428 14,586 5,650 20,236 7,600 6,310 13,910 4, ,800 7,460 7,460 6,455 6,455 1 of 6

31 3/12/2009 Yellow Highlight = New Project to list Red Text = Change from previous version Blue Text = will be removed from list Green Highlight = Annual Equipment Replacement Programs W Total = Western Only Costs O Total = Trust and Joint Participation Costs FY Total = Sum of W Total and O Total MPS Split = Multiple Power System Cost Split. RMR Pick Sloan Capital Investment Plan FY09-FY18 Detail Fund MPS Estimate Actuals thru PROJECT FY09 FY10 FY11 FY12 FY13 PROJECT Power Sys Split FY09-FY18 end of FY08 TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL Communications Communications Test Equipment (PS) Misc. Communications Facilities Replacement (PS) Fiber Multiplex Equipment (PS) Air Force Microwave Upgrades Archer MW Communication Building Replacement Archer-Stegall OPGW 2,400 2, Bald Mountain Generator Replacement Beaver Creek - Sterling OPGW 1,350 1, , Beaver Creek Comm Tower Brush Phone Switch Replacement Brush to Julesburg Mic Replacements 1,200 Casper Phone Switch Replacement Casper to Cody Backbone Mic Replacements 2,000 2,000 Central PMOC Communications Loop (80/20 Split) 80% Cheyenne Maintenance Mic Replacement Comm Battery/Charger Replacements 67% 1,000 1, Comm Generator Replacements 50% Digital Crossconnect Replacements 50% Erie-Longmont NW OPGW Erie-Loveland-Cheyenne I-25 Fiber 67% 5,000 5,000 1,000 4,000 5,000 Fiber Multiplexers (PS) 1,500 1, Field Phone Switch Replacements 50% Flatiron-Horsetooth Tap OPGW PSWCF Flatiron-Longmont NW OPGW Gering-Stegall OPGW Kremmling - Grouse Mtn 2 Gig MW Replacement with Fiber PST&R 200 1,015 1, Limon-Big Sandy-Beaver Creek OPGW 2,800 2,800 LRS-DJ OPGW 2,400 2, ,200 Mobile Radio Infrastructure Replacements 50% Mobile Radio Replacements 50% 1,000 1, Morrill to Wayside Mic Replacements 600 New Mobile Radio Sites (STK, MNK, ANM, AKH) 25% Nortel Microwave Replacements 1,500 1, PMOC Phone Switch Replacement PMOC Voice Recorder Replacement PS/ECMO Spurs (MDR8000/LEDR Replacement) 1,800 2,700 Sidney Converter Phone Switch Replacement Sidney-Gering OPGW 2,800 2, ,350 1,400 2,750 Stegall-LRS OPGW 2,000 2, ,000 1,950 Sterling - Sidney OPGW 1,450 1, , Telco Channel Bank Replacements 50% Valley-Boyd OPGW Weldona Generator Replacement Yellowtail-Yellowtail(PACE)Fiber Comm System Network Management System - cancelled Merino Communication Building Replacement - Cancelled Merino Generator Replacement - Cancelled PST&R Communications SubTotal 37,178 1,056 40,984 1, ,423 1,165 1,165 2, ,605 4,915 6,260 11,175 3,540 1,835 5,375 Control, Protection and Metering Protective Relay Replacements (PS) 6,850 7, Test Equipment Replacements (PS) Casper/Cheyenne Boundary Metering Master Estes Control System Replacement Kremmling Control System Replacement Sidney (TS) Relay Replacements RTU Replacements, Alliance and Stegall Substations CPM SubTotal 8, ,167 1,090 1, of 6

32 3/12/2009 Yellow Highlight = New Project to list Red Text = Change from previous version Blue Text = will be removed from list Green Highlight = Annual Equipment Replacement Programs W Total = Western Only Costs O Total = Trust and Joint Participation Costs FY Total = Sum of W Total and O Total MPS Split = Multiple Power System Cost Split. RMR Pick Sloan Capital Investment Plan FY09-FY18 Detail Fund MPS Estimate Actuals thru PROJECT FY09 FY10 FY11 FY12 FY13 PROJECT Power Sys Split FY09-FY18 end of FY08 TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL Mobile and Heavy Equipment Misc Heavy Equipment Replacements (PS) 3,000 3,600 Brush Dump Truck Replacement Cheyenne Oil Tanker Cheyenne Manlift, 85' - (replace 51928) Cody Substation Crew Tool Trailers Cody Line Bucket Truck Cody Line Digger Truck Cody Truck/Tractor Gering Line Bucket Truck Gering Line Digger Truck Bob Cat - Loveland (replacement) RMR Mobile transformer Productions Copiers (CDY, CAS, LVD) Mobile & Heavy Equipment SubTotal 5,955 6, Programmatic Improvements Small Facility Projects (RRADS - PS) 2,500 2, Casper Storage Building E-Scheduling/E-Tagging (PS) 69% IT General Support Systems (PS) 69% Operations Center Map Board Replacement 69% Power Billing System Phase 3 50% Power Marketing Op Center HVAC Replcmt (Computer Room) 67% SCADA Upgrades (PS) 69% BOR SCADA Consolidation Maintenance Data Integration 67% Operation Consolidation Program (PS) 67% OCP SCADA (PS) 67% OCP Comm (PS) 67% OCP IT (PS) 67% , Alt. Control Center Relocation - (PS) - Cancelled PSWCF 69% Programmatic Improvements SubTotal 6, , ,354 1, ,170 1, RMR/DSW Operations Consolidation FY09 PS CIP Grand Total 343,971 96, ,852 28,319 51,460 79,779 25,719 18,310 44,029 24,614 15,970 40,584 26,160 6,760 32,920 22,917 1,835 24,752 FY08 PS CIP Totals 25,155 43,600 68,755 27,427 19,660 47,087 28,095 16,220 44,315 26,995 1,200 28,195 24, ,775 3 of 6

33 3/12/2009 Yellow Highlight = New Project to list Red Text = Change from previous version Blue Text = will be removed from list Green Highlight = Annual Equipment Replacement Programs W Total = Western Only Costs O Total = Trust and Joint Participation Costs FY Total = Sum of W Total and O Total MPS Split = Multiple Power System Cost Split. RMR Pick Sloan Capital Investment Plan FY09-FY18 Detail Fund MPS Estimate Actuals thru PROJECT PROJECT Power Sys Split FY09-FY18 end of FY08 TOTAL Transmission Lines Line Equipment Replacements - General (PS) Ault-Black Hollow Reconductor PSWCF Cheyenne-Ault 230kV T-line Upgrade PSWCF 19,200 8,417 27,617 Alcova - Miracle Mile West 115-kV rebuild PSWCF 9,200 9,200 Alcova - Miracle Mile East 115-kV rebuild PSWCF 9,285 9,285 Alcova - Casper North 115-kV rebuild PSWCF 10,830 10,830 Alcova - Casper South 115-kV rebuild PSWCF 11,575 11,575 Casper - Glendo North 115-kV rebuild PSWCF 10,675 10,675 Casper - Glendo South 115-kV rebuild PSWCF 11,385 11,385 East Morrill Tap-Wildcat 34.5-kV line PSWCF 1,295 1,295 Erie-Hoyt 230-kV Upgrade PSWCF 36, ,566 Flatiron-Valley 230kV Upgrade PSWCF 14,305 14,305 Gore Pass-Muddy Pass Line Reroute (Wolford Mtn-Red Dirt Creek) Granby Pump Plant-Windy Gap 69-kV rebuild PSWCF 11,250 1,517 12,767 Lovell-Yellowtail #1 & #2 T-line Rebuilds Phase 1 (NPS) PSWCF 16, ,351 Lovell-Yellowtail #1 & #2 T-line Rebuilds Phase 2 PSWCF 36,110 36,110 Weld-Boyd 230-kV Upgrade PST&R 16,500 16,500 Wildcat-Sievers 69-kV line PSWCF 3,625 3,625 FY14 FY15 FY16 FY17 FY18 W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL ,775 7, ,680 9, ,250 9, ,750 6,750 6,750 6, ,000 1,000 10,500 10,500 16,500 16,500 8,000 8,000 2,725 2, Beaver Creek - Hoyt 230-kV Upgrade - Complete PSWCF 22,300 22,300 Central WY Transmission Improvements - Created seperate project PSWCF Cheyenne-Miracle Mile 230kV T-Line Upgrade - Complete PSWCF 39,898 39,898 Eastern Plains Transmission Project - On Hold PSWCF Gering-Gering Valley 34.5-kV T-Line - EXPENSED Timnath - Black Hollow 230-kV Upgrade - Complete PSWCF 2,126 2,126 T-Line SubTotal 219,806 75, ,714 13,045 13,045 12,905 12,905 20,550 20,550 23,950 23,950 14,800 14,800 Substations Battery and Charger Replacements (PS) 1,150 1,250 CCVT, PT, & CT Replacement (PS) Misc. Substation Elect. Equipm. Replace. (PS) 5,400 6,100 Transformer Monitors (PS) 880 1,000 Substation Test Equipment (PS) Substation Disconnect Switch Replacements (PS) Alcova 462, 662, 862, 1062 Replacement Alliance Control Building Ault 230-kV additions (AU-MM 230) PSWCF 1, ,418 Ault 230/115-kV xfmr additions PSWCF 8,000 8,000 Cheyenne 230-kV additions PSWCF 4,610 3,695 8,305 Cheyenne 2nd 230/115kV transformer additions PSWCF 4,455 4,455 Flatiron Switch Replacements Fort Morgan West 15MVAR shunt capacitors PSWCF 1,000 1,000 Frenchman Creek Shunt Capacitor Banks PSWCF 1,100 1,100 Garland KZ1A Replacement Garland 324 Breaker Replacement Granby Pumping Plant Transformer Modifications Limestone 34.5-kV additions 50 1,214 1,264 Lingle Substation 69kV additions PSWCF 4,465 4,465 Lusk Rural - Podolak Improvements Lusk KX1A Transformer Replacement Miracle Mile 230-kV additions (AU-MM 230) PSWCF 3,110 5,000 8,110 North Platte (FC, S, K) Interrupter Switches 1,000 1,000 Ogallala a a Transformer modifications o Ralston 122, 222, 322 Breaker Replacement Sidney Converter Station Replacement PSWCF Sidney Shunt Capacitor Banks PSWCF 1,100 1,100 Snowy Range Substation 230-kV (Laramie) PSWCF 3,605 3,339 6,944 Snowy Range 2nd 230/115kV transformer additions PSWCF 4,335 4,335 Torrington Substation KY2A addition PSWCF 100 2,155 2,255 Torrington Substation 69-kV additions PSWCF 5,170 5,170 Wildhorse Creek Substation - 90MW wind (2005-G1 & 2007-T1) PSNET 3, ,059 Willoby Switchyard 115-kV PSWCF 4, ,006 Willow Creek KZ2A Replacement ,725 2, ,550 3, Beaver Creek 230-kV additions (BC-EE 230-kV) - ON HOLD PSWCF Big George Substation - 69-kV Modifications - Complete PST&R Happy Jack 30 MW Wind (2004-G1) - Complete PSNET Haxtun KY1A Transformer Replacement -- Complete Lovell 566 Circuit Breaker Replacement - Cancelled Medicine Bow - 40MW wind (2007-T5) - Cancelled PST&R Raderville 115KV Switch Upgrade - Complete Substations SubTotal 66,366 18,902 86,428 7,835 7,835 1,690 1,690 1,160 1,160 1,410 1,410 1,410 1,410 4 of 6

34 3/12/2009 Yellow Highlight = New Project to list Red Text = Change from previous version Blue Text = will be removed from list Green Highlight = Annual Equipment Replacement Programs W Total = Western Only Costs O Total = Trust and Joint Participation Costs FY Total = Sum of W Total and O Total MPS Split = Multiple Power System Cost Split. RMR Pick Sloan Capital Investment Plan FY09-FY18 Detail Fund MPS Estimate Actuals thru PROJECT PROJECT Power Sys Split FY09-FY18 end of FY08 TOTAL Communications Communications Test Equipment (PS) Misc. Communications Facilities Replacement (PS) Fiber Multiplex Equipment (PS) Air Force Microwave Upgrades Archer MW Communication Building Replacement Archer-Stegall OPGW 2,400 2,400 Bald Mountain Generator Replacement Beaver Creek - Sterling OPGW 1,350 1,350 Beaver Creek Comm Tower Brush Phone Switch Replacement Brush to Julesburg Mic Replacements 1,200 Casper Phone Switch Replacement Casper to Cody Backbone Mic Replacements 2,000 2,000 Central PMOC Communications Loop (80/20 Split) 80% Cheyenne Maintenance Mic Replacement Comm Battery/Charger Replacements 67% 1,000 1,000 Comm Generator Replacements 50% Digital Crossconnect Replacements 50% Erie-Longmont NW OPGW Erie-Loveland-Cheyenne I-25 Fiber 67% 5,000 5,000 Fiber Multiplexers (PS) 1,500 1,500 Field Phone Switch Replacements 50% Flatiron-Horsetooth Tap OPGW PSWCF Flatiron-Longmont NW OPGW Gering-Stegall OPGW Kremmling - Grouse Mtn 2 Gig MW Replacement with Fiber PST&R 200 1,015 1,215 Limon-Big Sandy-Beaver Creek OPGW 2,800 2,800 LRS-DJ OPGW 2,400 2,400 Mobile Radio Infrastructure Replacements 50% Mobile Radio Replacements 50% 1,000 1,000 Morrill to Wayside Mic Replacements 600 New Mobile Radio Sites (STK, MNK, ANM, AKH) 25% Nortel Microwave Replacements 1,500 1,500 PMOC Phone Switch Replacement PMOC Voice Recorder Replacement PS/ECMO Spurs (MDR8000/LEDR Replacement) 1,800 2,700 Sidney Converter Phone Switch Replacement Sidney-Gering OPGW 2,800 2,800 Stegall-LRS OPGW 2,000 2,000 Sterling - Sidney OPGW 1,450 1,450 Telco Channel Bank Replacements 50% Valley-Boyd OPGW Weldona Generator Replacement Yellowtail-Yellowtail(PACE)Fiber FY14 FY15 FY16 FY17 FY18 W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL ,150 1,200 2,350 1,000 1,000 1,000 1, ,350 1,400 2, , Comm System Network Management System - cancelled Merino Communication Building Replacement - Cancelled Merino Generator Replacement - Cancelled PST&R Communications SubTotal 37,178 1,056 40,984 Control, Protection and Metering Protective Relay Replacements (PS) 6,850 7,540 Test Equipment Replacements (PS) Casper/Cheyenne Boundary Metering Master Estes Control System Replacement Kremmling Control System Replacement Sidney (TS) Relay Replacements RTU Replacements, Alliance and Stegall Substations 3,505 1,800 5,305 2,905 1,400 4,305 1, ,030 1, ,665 1,130 1, CPM SubTotal 8, , of 6

35 3/12/2009 Yellow Highlight = New Project to list Red Text = Change from previous version Blue Text = will be removed from list Green Highlight = Annual Equipment Replacement Programs W Total = Western Only Costs O Total = Trust and Joint Participation Costs FY Total = Sum of W Total and O Total MPS Split = Multiple Power System Cost Split. RMR Pick Sloan Capital Investment Plan FY09-FY18 Detail Fund MPS Estimate Actuals thru PROJECT PROJECT Power Sys Split FY09-FY18 end of FY08 TOTAL Mobile and Heavy Equipment Misc Heavy Equipment Replacements (PS) 3,000 3,600 Brush Dump Truck Replacement Cheyenne Oil Tanker Cheyenne Manlift, 85' - (replace 51928) Cody Substation Crew Tool Trailers Cody Line Bucket Truck Cody Line Digger Truck Cody Truck/Tractor Gering Line Bucket Truck Gering Line Digger Truck Bob Cat - Loveland (replacement) RMR Mobile transformer Productions Copiers (CDY, CAS, LVD) Mobile & Heavy Equipment SubTotal 5,955 6,555 Programmatic Improvements Small Facility Projects (RRADS - PS) 2,500 2,825 Casper Storage Building E-Scheduling/E-Tagging (PS) 69% IT General Support Systems (PS) 69% Operations Center Map Board Replacement 69% Power Billing System Phase 3 50% Power Marketing Op Center HVAC Replcmt (Computer Room) 67% SCADA Upgrades (PS) 69% BOR SCADA Consolidation Maintenance Data Integration 67% Operation Consolidation Program (PS) 67% OCP SCADA (PS) 67% OCP Comm (PS) 67% OCP IT (PS) 67% ,201 FY14 FY15 FY16 FY17 FY18 W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL W Total O Total FY TOTAL Alt. Control Center Relocation - (PS) - Cancelled PSWCF 69% Programmatic Improvements SubTotal 6, , RMR/DSW Operations Consolidation FY09 PS CIP Grand Total 343,971 96, ,852 FY08 PS CIP Totals 26,135 1,800 27,935 19,322 1,400 20,722 25, ,455 28, ,740 19,055 19,055 33,944 33,944 26,016 26,016 27,175 27,175 27,575 27,575 6 of 6

36 4 JOINT POWER SYSTEM PROJECTS 4.1 Joint CRSP & Pick Sloan FY08 Accomplishments and Notable Events Operations Consolidation Program. RMR and DSW began initial planning of the Operations Consolidation Program. 4.2 Joint CRSP & Pick Sloan FY09 Planned Activities Operations Consolidation Program. RMR, DSW and CRSP Management Center are currently finalizing the scope of the Operations Consolidation Program (OCP). Preliminary Project estimates were based upon the draft scope for the OCP. Western will continue to refine Project estimates as the OCP scope is finalized. Western is hopeful to finalize the OCP scope in January 2009, then establish baseline Project cost estimates and schedules by the spring of 2009 for inclusion of the OCP in Western s FY11 budget formulation cycle. The 10 year budget projections for both CRSP and Pick Sloan will include budget lines items for OCP broken into three categories; OCP SCADA, OCP Comm and OCP IT. Please note the estimates for OCP are still preliminary and may change in both value and allocation between the power systems. Also, the costs shown in RMR s 10 year Capital Investment Plan are RMR s portion of the capital costs of the Project and are not the total Project costs. RMR Alternate Control Center Relocation: Within the scope of the OCP, the RMR and DSW operation centers will become each other s backup centers. RMR cancelled its project to relocate the Cheyenne ACC and will direct this funding to OCP related projects. 36

37 5 RMR SUCCESS INDICATORS The goal of Western s Plan is to assure the most cost-effective use of available capital resources to assure long-term electric system reliability and availability. The following sections summarize the inventory of major power system equipment and indicators for measuring the success of our capital program. Facilities Western operates and maintains an extensive system of interconnected substations, transmission lines, and communication sites. The Region owns and operates 118 substations in the states of Wyoming, Nebraska, Colorado, New Mexico, and Utah. The substations comprise the majority of the maintained equipment in the Region, including 460 high voltage circuit breakers and 121 power transformers. The substations are interconnected by 5,286 miles of transmission lines operating at voltages between 12,500 and 345,000 volts. The majority of the transmission lines (3,324 miles) were built using wood pole structures, with the remainder (1,962 miles) being of steel structure construction. The breakdown of line miles by voltage and predominant structure type is shown below: Voltage Miles of Wood Miles of Steel Total 345-kV kV 127 1,434 1, kV kV 2, , kV <69-kV Total 3,324 1,962 5,286 The electrical system is operated from the Loveland Control Center by means of an extensive communications network consisting of microwave, radio, and fiber optic links. The links are connected through 142 Western-owned communications sites. 37

38 Indicators We can measure the success of our efforts in several ways: Leading Indicators. Measurable activities that result in positive outcomes are considered to be leading indicators. For example, increasing the amount of resources allocated to preventative maintenance activities on equipment should result in a reduction of critical equipment failures. Similarly, increasing the amount of resources allocated to equipment improvement and replacement activities should result in fewer equipment-related outages. The following chart shows Western s percentage allocation of craft labor for preventative maintenance and equipment replacement activities over the last eight years as compared to other activities. 38

39 Lagging Indicators. The ultimate goal of the Capital Investment Program is to assure electric system reliability. Therefore, the result of an effective program should be fewer power outages due to equipment failures. Since the results of a poorly maintained or managed power system would not be apparent for several years, equipment outage rates tend to be a lagging performance indicator. The following chart shows the annual number of outages in the control system due to all causes including weather, equipment failures, and human error. 39

40 Financial Indicators. Western has identified two financial measures that reflect a cost-effective investment program: 1) Net Plant Investment (NPI); and 2) Rate Impact. A flat or declining NPI is an indicator of a deteriorating system; therefore Western does not believe that it is possible to maintain proper system reliability under current load and generation growth conditions without increasing its NPl. However, Western also considers the impact on the transmission rate and the firm electric service rate of increasing the NPI too rapidly, which results in an unacceptable growth in the rate. As the following graphs indicate, Western s proposed CIP plan seeks to successfully balance these issues. The FY 2009 CIP Plan results in an average annual growth rate in NPI for the LAP system of approximately 2.57% from 2009 through The following graph shows the projected increase year by year in the NPI as a result of the projects contained in the FY 2009 CIP Plan. 40

41 LAP Transmission Rate Impacts. The projected transmission rate for FY 2010 FY 2018 for the FY 2009 CIP Plan results in an average rate increase of approximately 4.71% per year. In determining the projected transmission rate, Western used the CIP Plan to determine an estimated Annual Transmission Revenue Requirement and divided that by the projected load each year. The expected load was estimated by using the FY 2007 actual load and applying an average load growth rate of 2% per year to calculate the estimated network load growth plus other known and measurable changes. 41