ABB Automation & Power World: April 18-21, 2011 WPS System Planning. ABB Inc. April 21, 2011 Slide 1

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ABB Automation & Power World: April 18-21, 2011 WPS-131-1 1 Reliability Based Transmission System Planning ABB Inc. April 21, 2011 Slide 1

WPS-131-1 Reliability Based Transmission System Planning Speaker name: Speaker title: Bob Reymers Project Development Manager Company name: ABB Turnkey Substation Group Location: Raleigh, NC Co-presenter Speaker name: Speaker title: Company name: Location: Krassimir Kutlev Consultant ABB Consulting Group Raleigh, NC ABB Inc. April 21, 2011 Slide 2

Your safety is important to us Please be aware of these emergency procedures In the event of an emergency please dial ext. 55555 from any house phone. Do not dial 9-1-1. In the event of an alarm, please proceed carefully to the nearest exit. Emergency exits are clearly marked throughout the hotel and convention center. Use the stairwells to evacuate the building and do not attempt to use the elevators. Hotel associates will be located throughout the public space to assist in directing guests toward the closest exit. Any guest requiring assistance during an evacuation should dial 0 from any house phone and notify the operator of their location. Do not re-enter the building until advised by hotel personnel or an all clear announcement is made. ABB Inc. April 21, 2011 Slide 3

Your safety is important to us Convention Center exits in case of an emergency You are here Know your surroundings: Identify the meeting room your workshop is being held in Locate the nearest exit ABB Inc. April 21, 2011 Slide 4

Agenda Project Objective Project Tasks Project Results Next Steps

Project Objective Model a selected subsystem of the utility sub-transmission system Confirm that subsystem reliability could be determined and dollarized Confirm that impact on reliability of various investment t alternatives ti can be quantified.

Project Tasks Task 1 - Network Selection and Options Identification Task 2 Network Modeling Task 3 Model Benchmarking with Utility Data Task 4 Performance of Reliability Analysis Task 5 Investment Option Assessments

Task One Selection of Network and Options Network Selection Network Selected Investment Option Selection No Predetermined Options Identified Options Identified Based on Model Output Obtained Data Needed for Model Benchmarking ABB Group April 21, 2011 Slide 8

VS 60 kv System TC PH VS MRT No.2 60 kv Line INSub OLT Sub VS MRT No.1 60 kv Line CLSubC WL MRTSub PG WP PH VS No. 2 60 kv Line 230 kv WP VS 60 kv Line PRD PH VS EL N/O N/O 60 kv VS CC 60 kv Line Lcf Sub N/O N/O MRM Jct VS No. 1 60 kv Line NB Sub BLT LND CRL NH CC

Task Two Selection of ETAP Publicly Available Software Models Networks and Substations Uses Industry (CIGRE, CEA, IEEE) and/or Customer Specific Reliability Data Determines Failure Rates at All Modeled Points Calculates Reliability Indices System Level SAIFI, SAIDI, EENS, ECOST, etc. Load Level Outage Frequency, Outage Durations, EENS, ECOST etc. Cost Competitive Widely Used and Supported ABB Group April 21, 2011 Slide 10

Reliability Results System Related PUC Focused: SAIFI - System Average Interruption Frequency Index Average Number of Interruptions per Customer per Year SAIDI - System Average Interruption ti Duration Index Average Interruption Duration per Customer per Year CAIDI - Customer Average Interruption Duration Index Average Hours per Interruption Shareholder Focused: EENS - System Expected Energy Not Supplied Index Megawatt Hours per Year Customer Focused: ABB Group April 21, 2011 Slide 11 ECOST - System Expected Interruption Cost Customer Interruption Costs per Year (IEEE or Utility Specific)

ETAP Model of VS System

Task Three - Model Benchmarking Data Needed for Benchmarking Single Line Diagrams (SLD s) Substation Equipment Data (Age, Type) Overhead Lines Loads/Feeders information Current Utility System Reliability Indices Reliability Data Needed Failure Rates for Substation Components and Overhead Lines Component Outage Records, System Outage Records Mean Time to Replace or Repair, Mean Time to Switch, Maintenance Frequency Iterations Performed to Match Existing System Reliability Indices ABB Group April 21, 2011 Slide 13

Reliability Model Benchmarking Iterations 1. First Iteration Preliminary Configuration for VS with OHL Outages All Interruptions for One Minute and Over Considered 2. Second Iteration 60 kv OHL Line Lengths Corrected 60 kv OHL Outages with Durations Between 1 to 3 Minutes Eliminated Back Up Power Supply for VS System Considered 3. Third Iteration Prorated Failure Rate Based on Circuit Breaker Age Failure Rate Based on Transformer Age (No Correlation Noted, Change Deleted) MTTS Corrected Based on SCADA Availability Remove the Spare Transformer for LND MTT Replace for Transformers Changed to 120 Hours MTT Replace for Breakers and Switches Changed to 80 Hours MTTR for Breakers Changed to 12 Hours Obtained Information About Installation Date of CB 12 at WP Sub 4. Fourth Iteration Increase MTTR for Equipment According to Industry Standards Breakers (24 Hours), Transformers (120/40 Hours for 3/1PH), Switches (16 Hours) 5. Fifth Iteration Disconnect WP Generation Sub from the rest of the system Decrease MTTR for Transformers back to 72 hr for 3 phases and 24 hr for 1 phase; LTC - 24 hr Decrease MTTR for CB to 20 hr for 60 kv & 22 hr for 230 kv Decrease MTTR for switches to 12 hr - 60 kv and to 14 hr - 230 kv

Task Four Performance of Reliability Analysis Load Point Related Reliability Indices at Any Load Point on Single Line Diagram System Related - Impact on EENS and ECOST For Entire System Ranking Components Contribution Ranking Substation Contribution VS, PG, etc. Ranking Components Types Contribution OHL, transformers, circuit breakers, etc. High Impact Loads - Loads Feeding Selected Customers, e.g., PG Sub Ranking Components Contribution to the High Impact Loads ABB Group April 21, 2011 Slide 15

Task Four Opportunities for Investment Locational Impacts on EENS and ECOST Sort by System Location Sum for All Components in Specific Location E.g., PG Substation Look for High Impact Locations Component Impacts on EENS and ECOST Sort by System Component E.g. all transformers > x Years old E.g. all Oil Circuit Breakers Look for High Impact Component Groups ABB Inc. April 21, 2011 Slide 16

Impact Sorted by System Component EENS (MWhrs/year) ECOST ($/Year) ABB Inc. April 21, 2011 Slide 17

Impact Sorted by Location EENS (MWhrs/year) ECOST ($/year) ABB Inc. April 21, 2011 Slide 18

Task 5 Investment Option Assessments Alternative 1 - New 60kV OHL between VS & PG Substations Alternative 2 - New 60 kv OHL from MRT Substation to PG Substation Alternative 3 - New 230 kv OHL from TC Substation to PG Jct., with New 230/60 kv Substation Alternative 4 Upgraded VS Substation

Alternative 1 New VS PG OHL New 15 mile 60 kv OHL Connecting VS Sub with PG Sub Additional Circuit Breaker Bay in VS Sub

Alternative 1 - New VS PG OHL PG 60 kv Switchyard Rebuilt from Collector Bus to Ring Bus

Alternative 1 Reliability Results at PG, WP, EL All additional equipment are considered new Open Sources & Benchmarked reliability data The new OHL can supply loads for PG, WP & EL Substations ti

Alternative 1 PG 12 kv buses ECOST

Alternative 1 VS System ECOST

Alternative 2 New MRT PG OHL New 10 mile 60 kv OHL from MRT Sub to PG Sub

Alternative 2 Upgraded PG Substation PG 60 kv Switchyard Rebuilt to Ring Bus

Alternative 2 Upgraded MRT Substation MRT 60kV Switchyard Rebuilt to Ring Bus

Alternative 2 Reliability Results

Alternative 2 PG 12 kv buses ECOST

Alternative 2 VS System ECOST

Alternative 3 New 8.8 mile 230 kv OHL from TC Sub to PG Jct. with new PG 230/60 kv Sub New 2.7 mile 60 kv OHL from PG Jct. to PG Sub

Alternative 3 New PG Junction 230/60kV Sub

Alternative 3 PG 60 kv Switchyard Rebuilt to a Ring Bus

Alternative 3 Reliability Results

Alternative 3 PG 12 kv buses ECOST

Alternative 3 VS System ECOST

Alternative 4 Upgraded VS Substation 230kV Upgraded from Collector Bus pg to Ring Bus

Alternative 4 Upgraded VS Substation 60kV Upgraded from MTB to BAAH

Alternative 4 Reliability Results Reliability Results for Buses & Loads in PG Sub Before After

Alternative 4 Reliability Results

Alternative 4 PG 12 kv buses ECOST

Alternative 4 VS System ECOST

Task Five Final Results PG Improvments VS System Improvments (%) (%) Alternative Description SAIFI SAIDI EENS ECOST EENS ECOST 1 Installation of a New 60kV OHL between VS & PG Substation 3% 2% 2% 2% 55% 53% 2 3 Installation of a New 60 kv OHL from MRT Sub to PG Substation Installation of a New 230 kv OHL from TC Sub to PG Jct., Combined with the Erection of a New 230/60 kv Substation at PG Junction 11% 9% 8% 8% 55% 53% 0% 19% 17% 17% 93% 92% 4 Upgraded VS Substation 41% 53% 54% 57% 40% 42%

Project Conclusion Commercially Available Software, ETAP, was Utilized The VS System was Selected, Modeled and Benchmarked The Model Successfully Predicted Reliability Improvements due to Various Investment Alternatives

Impact of Project on Total Cost of Ownership (TCO) Key Systems Can be Modeled and Benchmarked Major Contributors to Poor Reliability Can be Identified Prospective Reliability Upgrade Projects Can be Identified Estimated Project Costs Can be Determined All Projects Can be Prioritized on Cost Benefit Scale Systematic Prioritization of Reliability Improvement Projects Ensures that Available Budgets are Deployed More Effectively

Next Steps Quantify PUC, Shareholder and/or Customer Goals and Schedules Capture Impacts of Upgrades on Remainder of 230kV System Capture Other Reliability Related Costs (e.g., Maintenance) Capture Reliability Option Upgrade Costs Perform Final Cost Benefit Calculations Model Other High-Impact Systems and Make System Wide Investment Priority Decisions Implement and Expand Reliability Related Component and System Data Capture ABB Inc. April 21, 2011 Slide 46

ABB Inc. April 21, 2011 Slide 47 Questions?

Reminders Automation & Power World 2011 Please be sure to complete the workshop evaluation Professional Development Hours (PDHs) and Continuing Education Credits (CEUs): You will receive a link via e-mail to print certificates for all the workshops you have attended during Automation ti & Power World 2011. BE SURE YOU HAVE YOUR BADGE SCANNED for each workshop you attend. If you do not have your badge scanned you will not be able to obtain PDHs or CEUs. ABB Inc. April 21, 2011 Slide 48

ABB Group April 21, 2011 Slide 49