Western Area Power

     Transmission System
Partnering Opportunities (FAQs)

        Anthony Montoya
   Assistant Regional Manager
  for Power System Operations
       September 14, 2004
    Desert Southwest Region
• Markets and delivers Federal power
• Nearly 70 municipalities, cooperatives,
  tribal authorities, federal and state
• 3,100 miles of transmission lines
• more than 40 substations
• NERC load control area
    We get many questions…
• Transmission construction capabilities
• Transmission O&M capabilities
• Use of ROW
    DSW Transmission FAQ 1
How has Western traditionally financed
 construction for transmission used to meet
 its Federal Hydropower mission?
  – Federal Appropriations
  – Repaid with interest
  – Excess capacity offered under OATT
  – Example: Liberty – Mead 345-kV
    DSW Transmission FAQ 2
Can another party participate with Western
 in a new transmission construction
  – Yes, Joint Participation Project
  – Joint ownership by special legislative authority
  – Example: Mead-Phoenix 500-kV
    DSW Transmission FAQ 3
Can a customer work with Western to fund
 either individual or Joint Participation
 Project transmission construction?
  – Yes, Contributed Funds
  – Net Billing
  – Example: Griffith-Peacock 230-kV line
    DSW Transmission FAQ 4
Does contributed funding give the funding
 party unique advantages when taking
 OATT service?
  – No
    DSW Transmission FAQ 5
Why would anyone want to contribute funds, rather
 than getting ownership-like rights through a Joint
 Participation Project?
  – Ownership-like rights over new segment not
    always sufficient to meet customer’s total
  – Customer needs transmission service beyond
    the limits of the new transmission segment.
   DSW Transmission FAQ 6
How can a customer work with Western to
 get transmission constructed?
  – Talk to us
  – Joint Planning Agreement (JPA)
  – Ten Year Planning
   DSW Transmission FAQ 7
How has Western traditionally funded
  transmission operating and maintenance
  – Federal Appropriations
    DSW Transmission FAQ 8
Can another party work with Western to help
 fund O&M needs?
  – Yes, Advanced Funding
  – Example: Arizona Power Authority
   DSW Transmission FAQ 9
Will Western share easements or
 consolidate circuits?
  – Yes, essential to optimize scarce land.
  – Maintain reliability
  – Consistent with underlying land rights.
  – Recognize the value of the ROW.
  – Example: TEP, SEV, ED-3
   DSW Transmission FAQ 10
Are there any other options for working with
  Western on transmission?
  – Yes, transmission exchange
  – Mutually compatible needs
  – Equitable
  – Example:
   DSW Transmission FAQ 11
Any other transmission questions?
   DSW Transmission FAQ 12
Who can we contact for more information?
  – Ron Moulton
    (602) 352-2668
  – Tony Montoya
    (602) 352-2780

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