Emera Maine Representative: Jeffrey Fenn, P.E., SGC Engineering LLC

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OCTOBER 22, 2015 Emera Maine s Local System Plan Bangor Hydro District Needs Assessment/Potential Solutions Local Planning Advisory Committee Meeting Emera Maine Representative: Jeffrey Fenn, P.E., SGC Engineering LLC R4

Purpose of Local System Plan (LSP) Per Attachment K of the ISO-New England OATT The LSP is an annual report that: t Describes non-ptf transmission ss system reliability needs Reflects Local system planning studies Proposed solutions Identifies Local planning process Criteria, Data and Assumptions 2

LSP Communication LSP is communicated via Transmission Owners Planning Advisory Committee (TOPAC) meeting following an ISO-New England PAC meeting The material is posted prior to the TOPAC meeting (via the ISO-New England PAC posting system) Transmission Customers and Stakeholders have 30 days after TOPAC presentation to provide written comments for consideration by Emera Maine 3

LSP Communication (continued) Emera Maine Contact: Kendra Overlock PO Box 932 Bangor, Maine, 04402-0932 (207) 973-2895 Kendra.Overlock@emeramaine.com EM LSP is located at: http://www.emeramaine.com/about-us/transmissiondevelopment/local-system-plan.aspx 4

Local System Planning Process The process is Needs Assessment followed by Solutions Proposals Local system needs can result from: Load growth Sub-area reliability assessments Point of delivery request from customers Generation interconnection requests (in accordance with appropriate generator interconnection procedures) Public Policy Requirements Local System Plan consists of: Summary of needs assessment results Listing of criteria, data and study assumptions Identification of proposed alternatives Solution study results and selection of preferred alternative 5

Criteria, Data, and Assumptions Loads are based on the New England specific area as provided d in the ISO-New England MOD case, Emera Maine specific forecasts and local customer needs are used to refine this Studies use relevant assumptions regarding transmission, generation and demand resources found in the latest ISO-New England Regional System Plan Criteria follows ISO-New England as well as TPL criteria or local planning criteria as appropriate Local criteria listed at the end of this presentation 6

LSP Project List The LSP project list is a cumulative listing of proposed transmission solutions intended to meet local needs Similar to the ISO-New England PTF RSP, the LSP contains the status of each project Concept Project is under consideration as a solution to a partial needs assessment Proposed Needs assessment completed and project proposed as a solution, but not formally budgeted d Planned Formally budgeted and, if necessary, approved by ISO-New England Under Construction Significant engineering and internal approvals in process and project is being implemented In-Service Project used and useful 7

LSP - Needs Need Needs Assessment Service Area Potential Solutions Year of Need QP478-9.6MW Interconnection study Lines 1, 20, 25 Line 2 Transmission (34.5kV) upgrades to support proposed generation Washington County Under study 2016 Condition based facility being All Partial or full rebuilds 2019 evaluated Condition based facility being evaluated Eastern Partial or full rebuild, Voltage drop reduction 2019 8

LSP Concept Need Needs Assessment Service Area Project Name Status Potential Solutions Reliability Condition Bangor Line 74 Concept L74 Rebuild/ Reconductor, NTA Condition, Line 50 L50 Rebuild/ Reliability Thermal and Bangor Corinth Village Concept Reconductor, Voltage support NTA Reliability Reliability Condition, Thermal, and Voltage Bangor Line 73 Concept Condition and Voltage Bangor Line 80 Concept L73 Rebuild/ Reconductor, NTA L80 Rebuild/ Reconductor Project In- Service Month/Year 6/2017 12/2017 12/2018 12/2017 Reliability Condition Bangor Line 84 Concept L84 Rebuild 2019 9

LSP Proposed Need Reliability Reliability Reliability Needs Assessment Condition including conductor failure Condition and conductor thermal issue Plant condition and conductor thermal concern Service Area Project Name Status Solution Bangor Bangor Bangor L89 Rebuild (46kV) L8 Partial Rebuild Tibbetts St to River (46kV) Project In- Service Proposed Rebuild 12/2017 Proposed Rebuild 6/2016 L75 Phase 2 rebuild with distribution Proposed Rebuild 12/2016 underbuild (46kV) 10

LSP Planned Need Reliability Reliability Needs Assessment Service Area Project Name Status Solution Eastern Bangor Replace WW Waterworks load requirements Bangor Planned substation, Substation including hospital new 46kV line Improve area reliability, support MDI loads, defer L32 loading issue and improve ability to maintain transmission circuits Eastern MDI Reliability Planned Additional 34.5kV circuit with diverse route. Part of area looping, replace BH substation Project In- Service 12/2016 12/2017 11

LSP Under Construction Need Project In-Service Service Area Project Name Status Reliability 3/2016 Downeast Line 13 Rebuild Hancock to E. Franklin Under Construction 12

LSP In-Service Need Project In-Service Service Area Project Name Status Reliability 12/2014 Northern Keene Rd T4 Addition In-Service Reliability 12/2014 Northern Line 87/85 Rebuild In-Service Reliability 8/2015 Bangor Reliability Reliability 6/2015 Downeast Line 75 Phase 1 Rebuild/Reconductor L13 from E Franklin east rebuild In-Service In-Service 2/2015 Bangor T9L/501 line In-Service Reliability 6/2015 Bangor Line 8 Reconductor Parkway South to 115kV ROW In-Service 13

Maine and Emera Maine Bangor Hydro District - Major Transmission System 14

Emera Maine Bangor Hydro District Detailed System 15

Project Descriptions - Needs ISO-NE Queue 478 Interconnection 9.6MW wind interconnection ti to the EM subtransmission i (34.5kV) in Washington County 16

17 Project Descriptions - Needs

Project Descriptions Needs (cont.) Lines 1, 2, 20 and 25 Condition based facility being evaluated. Line condition is monitored to determine when and what needs to be rebuilt or reconductored. Evaluation of solutions will include NTA and hybrid solutions when appropriate. This is an ongoing process and these lines are on the list as likely to have needs by 2019. L1 Veazie to Ellsworth (46kV) L2 Ellsworth to Trenton (34.5kV) L20 E. Machias to Dennysville (34.5kV) L25 Columbia to Jonesport (34.5kV) 18

19 Project Descriptions - Needs

Project Descriptions - Concept Line 74 Rebuild/Reconductor/NTA Condition of existing facilities Line 50 Rebuild/Reconductor/NTA Condition based need for rebuild as well as thermal and voltage issues Line 73 Rebuild/Reconductor/NTA Condition based need for rebuild as well as thermal and voltage issues Line 80 Rebuild/Reconductor Condition and voltage based need for rebuild Line 84 Rebuild Condition of existing facilities 20

21 Project Descriptions - Concept

Project Descriptions Proposed Line 89 Rebuild Medway to East Millinocket. Many of the structures t have deteriorated t d to the point they need to be replaced. The conductor has thermal and voltage concerns. Last portion of the line rebuild that was started in the 1990 s. Line 8 Partial Rebuild Tibbetts St. substation to the Penobscot river crossing cable. This is required due to condition as well as thermal rating. Line 75 Phase 2 Rebuild Rebuild part of L75 along with its distribution underbuild. This is required due to condition as well as L75 conductor rating. 22

23 Project Descriptions - Proposed

Project Descriptions Planned Waterworks Substation New 46/12.5kV substation as well as short 46kV line extension to serve the local l Eastern Bangor load as well as hospital expansion MDI Reliability A second 34.5kV transmission line is required to improve reliability and serve load growth, including rebuild/replacement l of existing Bar Harbor substation 24

25 Project Descriptions - Planned

26 Waterworks Substation

27 MDI Reliability

Project Descriptions Under Construction Line 13 Rebuild Hancock to E. Franklin 28

Project Descriptions Under Construction 29

Line 13 Rebuild Hancock to E. Franklin 30

Local System Planning Criteria Criteria follows ISO-New England as well as TPL criteria or local planning criteria as appropriate The transmission system for purposes of this study is defined as those system facilities that are operated at 34.5kV and above and are not considered to be under ISO-NE planning (in general non-ptf). The standard of service to be provided dictates the need for changes to the existing system. It is necessary to consider the capability of transmission system elements, possible equipment failures, and the impact of failures on the ability to serve area loads. Transmission equipment is designed to operate within certain capabilities. The power that may be transferred over transmission lines depends upon the current carrying capacity of the wire and/or the required clearances of lines above ground. Transformers are limited by their heat dissipation capability. Circuit breakers or switches are designed to sustain a certain continuous amount of current. Also, the operation o of customer electrical ect ca equipment e requires es that voltage be maintained within a certain acceptable range. Transmission system facilities are capable of regulating voltage within a limited range by varying reactive power and changing transformer tap settings. 31

Local System Planning Criteria Since all equipment is subject to breakdown, it is necessary to consider the consequence of such failures. One possible outcome could be the overload of other equipment that remains in service. For example, if one of two parallel lines trips, the remaining line may become overloaded. Overload beyond emergency ratings must be avoided due to possible permanent damage to the equipment or for public safety. Another consequence of equipment failure is the loss of power supply to customer load. This could occur with the loss of a radial transmission line or as the result of the cascaded outage of a looped transmission system. The loss of supply is critical to loads such as industrial processing, home heating, and hospitals, and must be considered in the design of the transmission system. 32

Local System Planning Criteria CAPACITY CRITERION No facility is to be loaded in excess of its normal rating for any expected dispatch of system generation at any load level. For any single contingency, no facility is to be loaded in excess of its normal rating for the following load cycle or in excess of its emergency rating immediately following the contingency,. Uneconomic generation dispatch may be utilized to maintain power flows within ratings following a contingency. VOLTAGE CRITERION Transmission system voltages are to be maintained between 95% and 105% of operating base voltage under normal system conditions and for any single contingency. Further, voltages on the regulated side of load serving buses are to be maintained between 100% and 105% of operating base voltage under normal system conditions. 33

Local System Planning Criteria LOSS OF LOAD CRITERION No loss of load in excess of 25 MW is to occur for any single contingency. Loss of load less than 25 MW should be resupplied within 24 hours, except under very adverse conditions. MAINTENANCE CRITERION Transmission system planned maintenance is to be possible without exceeding normal voltage and capacity limits and without loss of load. 34

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