Transmission Coordination and Planning Committee 2016 Q4 Stakeholder Meeting

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Transmission Coordination and Planning Committee 2016 Q4 Stakeholder Meeting BHE Wyoming Q4 Stakeholder Meeting November 17, 2016 @ 1:00PM MT Black Hills Energy Service Center 409 Deadwood Avenue, Rapid City, SD 57702 11/16/2016

Agenda Welcome and Introductions TCPC Meeting Policies BHE Wyoming Planning Department Updates 2016 LTP Study Process 2016 Study Results Stakeholder Input and Questions Next Steps 11/15/2016 2

Welcome and Introductions 1. Introduction of participants in the conference room. 2. Introduction of participants on Webex / Phone. 11/16/2016 3

TCPC Meeting Policies FERC Standards of Conduct The FERC Standards of Conduct state that Transmission Function Employees are prohibited from disclosing non-public Transmission Information unless they disclose it on OASIS. Also, Transmission Function Employees and Shared Employees are expressly prohibited from disclosing non-public information to Energy or Marketing Affiliates. Anti-Trust Policy It is the committee s policy to comply with all state and federal anti-trust laws. One objective of the TCPC is to promote and enhance competition. Careful attention should be paid to any discussions regarding you or your competitors prices, allocation of markets, customers, or products, limiting production, and excluding dealings with other companies. Confidentiality Certain information may be protected as confidential due to Standards of Conduct concerns or because it is classified as Critical Energy Infrastructure Information. Otherwise, it should be on OASIS. Committee members agree not to share committee activities with the press and do not discuss ideas or concerns other than your own in a public forum. 11/15/2016 4

Transmission Planning Groups Transmission Coordination & Planning Committee (local) http://www.oasis.oati.com/clpt/index.html Select Transmission Planning folder Colorado Coordinated Planning Group (sub-regional) www.westconnect.com/planning_ccpg.php WestConnect (regional) www.westconnect.com/planning.php 11/15/2016 5

BHE Cheyenne 115 kv System with Estimated In-Service Dates 11/15/2016 6

2016 10 Year Transmission Plan Project ISD Status New King Ranch 115 kv Substation & Transmission Q3 2017 Planned North Range King Ranch Swan Tap 115 kv Circuit Upgrade (Reconductor) Cheyenne Prairie East Business Park 115 kv Line Upgrade Cheyenne Prairie Archer (WAPA) 115 kv Line Upgrade New North Range Swan Tap South Cheyenne 115 kv Circuit Q3 2017 Planned 2020 Planned 2020 Planned Q4 2020 Planned New Swan Ranch 115 kv Substation Q4 2020 Planned 11/15/2016 7

2016 10 Year Transmission Plan continued Project ISD Status New Cheyenne Prairie South Cheyenne 115 kv Double Circuit Q4 2022 / Q1 2023 Proposed Happy Jack 115 kv Substation Terminal Upgrades TBD Proposed Happy Jack North Range 115kV Upgrade (Reconductor) Q4 2017 Planned 11/15/2016 8

Cheyenne Area Resource Update Active Large Generator Interconnection Request CLPT-G6 125 MW CCT at Cheyenne Prairie Generation Station substation In-Service-Date January 1, 2023 Point of Interconnection Cheyenne Prairie 115 kv Substation System impact study completed, Facilities Study in-progress. CLPT-G7 102 MW Wind approximately 3-4 miles west of North Range substation (Conceptual) Proposed In-Service-Date December 31, 2017 (ISD changes can occur.) Point of Interconnection North Range Corlett 115 kv line System impact study has been completed. Current undergoing the Facilities Study Phase. Completion TBA. 11/15/2016 9

2016 LTP Study Scope 2016 CCPG Compliance Analysis Cases were used as the benchmark cases for the this years study scenarios 2018hs Heavy Summer Case (Peak Study Year 2) Power Flow, Voltage & Transient Stability 2017-18lw Light Winter Case (Off-Peak Study Year 1-5) Power Flow, Voltage & Transient Stability 2021hw Heavy Winter Case (Peak Study Year 5) Power Flow, Voltage & (optional) Transient Stability 2026hs Heavy Summer Case (Peak Study Year 10) Power Flow & (optional) Voltage Stability 2018 HS 2017-18 LW 2021 HW 2026 HS Power Flow X X X X Voltage Stability X X X ---- Transient Stability X X ---- ---- 11/15/2016 10

Sensitivities Considered for Power Flow Steady-State Analyses Sensitivity 1 (SS-1): Cheyenne Prairie Generation Maximum Output (132 MWs: 2018HS/LW, 2021HW) (264.8 MWs: 2026HW) Sensitivity 2 (SS-2): Cheyenne Prairie Generation No Output (0 MW) Sensitivity 3 (SS-3) Data Center(s) full load build-out (225 MWs) Sensitivity 4 (SS-4) Large Load (50 MW) Addition at each load bus on the 115 kv System with full build-out of the Data Center load Swan Ranch 115kV Bus North Range 115kV Bus Corlett 115kV Bus South Cheyenne 115kV Bus 11/15/2016 11

Summary: Power Flow Steady-State Analysis Results 2018HS: 3 Constraints Identified 1. Cheyenne Prairie to Archer 115kV TL o Mitigation: Cheyenne Prairie to Archer 115kV Line Rebuild project in 2020. 2. East Business Park to Skyline 115kV TL o Mitigation: TBA o P2 Contingency: Happy Jack 115kV Substation o Scenario: Microsoft 225 MWs, CPGSTN 132 MWs, 50 MWs Load Added to Corlett 115kV Bus o Loaded at 101.3%, Flow 160 Rating 158 3. Cheyenne to Happy Jack 115kV TL o Mitigation: Terminal upgrade at Happy Jack 115kV TBA 12

2018 Heavy Summer NOTES: 3 Constraints Identified Ranked in Priority Based on Scenarios Studied 11/16/2016 13

Summary: Power Flow Steady-State Analysis Results 2018LW: 2 Constraints Identified 1. Happy Jack to North Range 115kV TL o Mitigation: Happy Jack North Range 115kV Line Upgrade project in Q4 2017. 2. Cheyenne to Happy Jack 115kV TL o Mitigation: Terminal upgrade at Happy Jack 115kV TBA. 14

2018 Light Winter NOTES: 2 Constraints Identified Ranked in Priority Based on Scenarios Studied 11/16/2016 15

Summary: Power Flow Steady-State Analysis Results 2021HW: 5 Constraints Identified 1. Happy Jack to North Range 115kV TL o Mitigation: Happy Jack North Range 115kV Line Upgrade project in Q4 2017. 2. Cheyenne to Happy Jack 115kV TL o Mitigation: Terminal upgrade at Happy Jack 115kV TBA. 3. Archer to Terry Ranch 230kV TL o Mitigation: Double Circuit 115kV TL from Cheyenne Prairie to South Cheyenne in 2023. 4. Archer to Crow Creek 115kV TL o Mitigation: Double Circuit 115kV TL from Cheyenne Prairie to South Cheyenne in 2023. 5. Archer to Cheyenne 115kV TL o Mitigation: Double Circuit 115kV TL from Cheyenne Prairie to South Cheyenne in 2023. 16

2021 Heavy Winter NOTES: 5 Constraints Identified Ranked in Priority Based on Scenarios Studied 11/16/2016 17

Summary: Power Flow Steady-State Analysis Results 2026HS: 3 Constraints Identified 1. Happy Jack to North Range 115kV TL o Mitigation: Happy Jack North Range 115kV Line Upgrade project in Q4 2017. 2. Cheyenne to Happy Jack 115kV TL o Mitigation: Terminal upgrade at Happy Jack 115kV TBA 3. Archer to Terry Ranch 230kV TL o Constraint arises when CPGSTN is off-line. o Mitigation: TBA 18

2026 Heavy Summer NOTES: 3 Constraints Identified Ranked in Priority Based on Scenarios Studied 11/16/2016 19

Sensitivities Considered for Transient Stability Analyses Performed on the 2018 Heavy Summer and 2018 Light Winter Cases Sensitivity 1 (DY-1): Cheyenne Prairie Generation Full Output (132 MWs) Happy Jack & Silver Sage No Output (0 MW) Sensitivity 2 (DY-2) Cheyenne Prairie Generation No Output (0 MW) Happy Jack & Silver Sage No Output (0 MW) Sensitivity 3 (DY-3) Cheyenne Prairie Generation No Output (0MW) Happy Jack & Silver Sage Full Output (71.4MW) 11/15/2016 20

Summary: Transient Stability Analysis Results Studied: 2018 Heavy Summer 2018 Light Winter Results: No reliability criteria violations associated with any of the P0-P7 events simulated. 21

Sensitivities Considered for Voltage Stability (PV) Real Power Margin Performed on the 2018 Heavy Summer (2-year) Sensitivity 1 (PV-1): Base Case + Happy Jack & Silver Sage @ No Output (0 MW) SINK: Microsoft Loads (Corlett, N. Range, Microsoft, King Ranch) SOURCE: Cheyenne Prairie Generating Station Sensitivity 2 (PV-2): Base Case + Happy Jack & Silver Sage @ Full Output (71.4 MW) SINK: Microsoft Loads (Corlett, N. Range, Microsoft, King Ranch) SOURCE: Cheyenne Prairie Generating Station Sensitivity 3 (PV-3): Base Case + CPGSTN & Happy Jack & Silver Sage @ No Output (0 MW) SINK: Microsoft Loads (Corlett, N. Range, Microsoft, King Ranch) SOURCE: External Areas 11/15/2016 22

Sensitivities Considered for Voltage Stability (PV) Real Power Margin Performed on the 2018 Heavy Summer (2-year) Sensitivity 4 (PV-4): Sensitivity 1 with capacitors off-line at North Range and King Ranch Sensitivity 5 (PV-5): Sensitivity 2 with capacitors off-line at North Range and King Ranch Sensitivity 6 (PV-6): Sensitivity 3 with capacitors off-line at North Range and King Ranch 11/15/2016 23

Results Summary: Voltage Stability (PV) Real Power Margin *CP = Voltage Collapse Point ** Voltage Violation is monitor point set at 0.9 PU. Sensitivity Base CP CP Voltage Violation Description: PV1 507 327 200 Happy Jack 0 MW Wind, King Ranch 60 MVAR Cap, North Range 30 MVAR Cap, Source CPGSTN PV2 512 330 205 Happy Jack 71.4 MWs Wind, King Ranch 60 MVAR Cap, North Range 30 MVAR Cap, Source CPGSTN PV3 719 317 220 Happy Jack 0 MW Wind, King Ranch 60 MVAR Cap, North Range 30 MVAR Cap, Source External PV4 489 292 120 Happy Jack 0 MW Wind, King Ranch 0 MVAR Cap, North Range 0 MVAR Cap, Source CPGSTN PV5 493 292 124 Happy Jack 71.4 MWs Wind, King Ranch 0 MVAR Cap, North Range 0 MVAR Cap, Source CPGSTN PV6 700 281 140 Happy Jack 0 MW Wind, King Ranch 0 MVAR Cap, North Range 0 MVAR Cap, Source External Top Contingencies: P1 Happy Jack - North Range 115kV P1 Cheyenne Prairie Gen Station - Archer 115kV TL P2 Happy Jack 115kV Bus P2 Terry Ranch 230kV Bus P3 Cheyenne Prairie - East Business Park 115kV TL + Happy Jack - North Range 115kV TL P7 North Range - South Cheyenne 115kV TL + Swan Ranch - South Cheyenne 115kV TL 11/15/2016 24

Results Summary: Voltage Stability (PV) Real Power Margin 11/15/2016 25

Summary: Voltage Stability (PV) Analysis Results SINK: Microsoft Load Pocket = Corlett, N. Range, Microsoft, King Ranch MLP Base case loading = 107.5 MWs 60 MVAR Capacitor online at King Ranch 30 MVAR Capacitor online at North Range Base 512 MWs Base 719 MWs Base 507 MWs Collapse Point: 327 MWs Voltage Violation: 200 MWs Collapse Point: 330 MWs Voltage Violation: 205 MWs Collapse Point: 317 MWs Voltage Violation: 220 MWs 0 MW Wind Source: CPGSTN 71.4 MWs Wind Source: CPGSTN 0 MW Wind 0 MW CPGSTN Source: External PV-1 PV-2 PV-3 26

Summary: Voltage Stability (PV) Analysis Results SINK: Microsoft Load Pocket = Corlett, N. Range, Microsoft, King Ranch MLP Base case loading = 107.5 MWs 0 MVAR Capacitor online at King Ranch 0 MVAR Capacitor online at North Range Base 489 MWs Base 493 MWs Base 700 MWs Collapse Point: 292 MWs Voltage Violation: 120 MWs 0 0 MW MW Wind Source: CPGSTN Collapse Point: 292 MWs Voltage Violation: 124 MWs 71.4 MWs Wind Source: CPGSTN Collapse Point: 281 MWs Voltage Violation: 140 MWs 0 MW Wind 0 MW CPGSTN Source: External PV-4 PV-5 PV-6 27

Sensitivities Considered for Voltage Stability (QV) Reactive Power Margin Performed on the 2018 Heavy Summer (2-year) Sensitivity 1 (QV-1): Base Case + 0MW wind at Happy Jack + 132 MW Generation at CPGSTN 2.5% Load Growth Sensitivity 2 (QV-2): Sensitivity 1 + 5.0% Load Growth Sensitivity 3 (QV-3): Base Case + 71.4MW wind at Happy Jack + 0 MW Generation at CPGSTN 2.5% Load Growth Sensitivity 4 (QV-4): Sensitivity 3 + 5.0% Load Growth Sensitivity 5 (QV-5): Base Case + 0 MW wind at Happy Jack + 0 MW Generation at CPGSTN 2.5% Load Growth Sensitivity 6 (QV-6): Sensitivity 5 + 5.0% Load Growth 11/15/2016 28

MVAR Output Summary: Voltage Stability (QV) Analysis Results MVAR Output Adequate reactive power margins exist for all sensitivity scenarios. The worst P1 contingency is: Happy Jack to North Range 115kV TL The worst P2-P7 contingency is a P3: Archer to Terry Ranch 230kV TL and Happy Jack to North Range 115kV TL QV6: Q-V Plot North Range 115kV Bus 100.000 0.000 0.000-100.000 0.200 0.400 0.600 0.800 1.000 1.200-200.000-300.000-400.000-500.000-600.000-700.000 Voltage Set Point BASE CASE P1_HAPPYJACK-NORTHRANGE_115KV QV5: Q-V Plot North Range 115kV Bus 200.000 0.000-200.000 0.000 0.200 0.400 0.600 0.800 1.000 1.200-400.000-600.000-800.000 Voltage Set Point BASE CASE P2_HAPPYJACK_115KV P3_ARCHER-TERRYRH230KV+HPPYJK-NRTHRNG115KV P7_NRTHRG-SCHEY+SWANRH-SCHEY_115KV 29

Sensitivities Considered for Short-Circuit Analysis TO BE PERFORMED: BHE WY to Archer to Wayne Child 230kV (to 345kV) Injection Sensitivity 1 (SC-1): 2021HW Case (5-yr) Cheyenne Prairie Generation No Output (0 MW) Happy Jack & Silver Sage No Output (0 MW) Sensitivity 2 (SC-2): 2021HW Case (5-yr) Cheyenne Prairie Generation U1,U2 Full Output (132 MW) Happy Jack & Silver Sage No Output (0 MW) Sensitivity 3 (SC-3): 2026HS Case (10-yr) Cheyenne Prairie Generation U1,U2,U3 Full Output (264.8 MW) Happy Jack & Silver Sage No Output (0 MW) Cheyenne Prairie Generation to South Cheyenne 115kV Double Circuit 11/15/2016 30

Next Steps 2016 LTP Study: o Complete short circuit analysis o Evaluate mitigation options for 2026HS Study Constraint o Complete draft 2016 LTP report and distribute for stakeholder review and approval. o Publish approved final 2016 LTP report. 2017 LTP Study: o Proposed Q1 Stakeholder meeting for (Thursday) March 16 th at 1PM. o Location TBA o Stakeholder Requests for specific scenarios or considerations should be submitted to: www.westconnect.com/filestorage/ccpg_request_form.xls 11/15/2016 31

Questions / Comments / Suggestions 11/15/2016

Contact Information: Wes Wingen Manager, Transmission Planning wes.wingen@blackhillscorp.com (605) 721-2268 Charles Shue Senior Engineer, Transmission Planning charles.shue@blackhillscorp.com (605) 721-1763 11/15/2016 33