SPS 10-Year Plan - Xcel Energy

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SPS10-Year PlanDecember 2012This report contains transmission planning datathat may be conceptual in nature and is subjectto change. The transmission projects listed maychange scope or not be constructed.

Purpose and ScopePurpose: Document the Southwestern Public Service Company (SPS)transmission system plans looking forward 10 years Scope of work: Perform an annual assessment and update of the SPStransmission requirements yyyyy NERC reliability standards compliance requirementsLoad forecast, including wholesale loads (2012)Resource plan (2012)Applicable TX, NM Renewable Energy StandardsSold firm transmission service from generation interconnection requestsStakeholder input Input on needs and responsive plans are encouraged fromstakeholders SPS system plan rolls up to Southwest Power Pool (SPP)regional plan and SPP stakeholder process2

Executive Summary 10-Year Transmission Plan Core Reliability Projects (2012 – 2016) States Renewable Energy Standardsy TX standard has been mety Xcel Energy is working on complying with NMstandard for wind, solar, and other renewablesthrough various initiatives Significant SPP Regional and Sub-Regional TransmissionDevelopment Projects Ongoingy Balanced Portfolio – Tuco – Woodward, ISD 2014y Priority Projects – Hitchland – Woodward, ISD 2014 SPS Plan must ultimately be approved through SPPIntegrated Transmission Plan (ITP) process3

Key Messages 10-Year Plan Continued load growth Wind/solar development will continue Clarity on balancing area’s resource plan could modify andlessen transmission capital requirements from thisassessment4

SPS System Statistics2012 7,005 Miles of Transmission 705 Substations Served 62 Generators Served (6,694 MW) 30 Wind Generators (1004 MW) 10 Solar Facilities (53.5 MW) SPS Balancing Authority All-Time PeakLoad 6079 MW (August 2, 2012)5

SPS Transmission System SPS’s transmission assets are in TX, NM, OK and KS Under operational control of the Southwest Power Pool (SPP)RTO Major Utility Interconnections American Electric Powery West Texas Utilitiesy Public Service Company of Oklahoma Sunflower Electric Corp. Public Service Company of New Mexico (HVDC) El Paso Electric Company (HVDC) Public Service Company of Colorado (HVDC)6

SPS Retail Service Territory7

Planning Process Calendar 2012JanFebMarAprMayJunJulAugSepOctNovDecSPS Wholesale and Retail LoadInterconnection Studies5 year capitalbudgetpreparation5 year budgetapprovedCapital budget studies and budget prepSPP ModelDevelopmentProcessGeneration Interconnectionand Transmission ServiceStudies (SPP GI andAggregate Studies)SPP Transmission Expansion Planning Process8

Drivers of Transmission Planning Regulatory/Environmental Concerns TX and NM mandates for renewable energy SPP Generator Interconnection Requests Large amount of requests Transmission Service Requests Internal and thru-transactions Wholesale and Retail Load Additions Geographically diverse Economically sensitive Oil and gas commodity price sensitive NERC Reliability Standards9

NERC Reports TPL-001-2, update to existing TPL-001 through TPL-004standards TPL-001-2 may increase the scope of annual assessmentdue to new performance requirements Ongoing compliance studies may identify new networkupgrade projects Ongoing Standards development NERC 754 System Protection Single Point of Failure Analysis Due by July 2014 with milestone work due over 24 months10

SPS BA Coincident PeaksPeak Load (MW)SPS BA Coincident 0082009201020112012SPS BA Coincident Peaks (to August 2, 2012)11

SPS BA Forecast Peak, MWSPS BA Forecast Peak, MW800076727501Peak Load (MW)7500700065006000550020102012201420162011 Studies20182020202220242012 Studies12

State Renewable Energy Mandates TX Mandate for SPS Retail Loads 5,880 MW by 2015, 10,000 MW by 2025. SPS has energy salesratio share of total. NM Mandate for SPS Retail Loads 405,766 MWH (10% of NM retail sales) by 2012 15% of NM retail sales by 2016 20% of NM retail sales by 2021 Minimums required Greater or equal to – 20% wind, 20% solar, 10% biomass/biogas Distributed Generation – 1.5% to 3% in 2015, and 48.5% fromany category SPS has met its 2012 requirements for wind and solar and iscurrently negotiating with a potential developer to meet itsbiomass/biogas requirements. SPS has received a varianceto extend the time of implementation to 2012.13

Generation Interconnection Requests SPP Generation Interconnection queue for SPS area 889 MW fossil based requests 3,215 MW wind based requests 56 MW solar based requestsSPS has 1,004 MW connected wind generation Approximately 160 MW are on SPS distribution SPS has 960 MW of projects with signed interconnectionagreements and in suspension, not included in above numbers SPS has 2,660 MW of projects (wind) with signed IAs and onschedule for interconnection.14

Transmission Congestion SPP Flowgates External – SPPSPSTIES Flowgate Bisects all AC tielines between SPS and SPP SPS Internal Flowgates North-South Flowgate Bisects SPS transmission lines south of Amarillo Temporary Flowgates may limit ahead of N-Sflowgate Limiting behavior may be due to non-firmenergy flows from north of Amarillo15

Transmission Congestion Map16

Economic Planning SPS reviews studies by others and is activelyinvolved in regional and sub-regional economicplanning efforts such as: The Department Energy (DOE) nationaltransmission congestion studies SPP Integrated Transmission Plan (ITP)process Eastern Interconnection PlanningCollaborative (EIPC)17

Economic Planning Economic planning involves Various resource scenario evaluations Economic impact of market congestion on transmissionelements Energy and demand loss evaluation on transmissionelements Economic Benefits coupled with other benefits (reliability,local or regional policy, etc) together enter into transmissionalternative evaluation SPS relies on SPP’s economic planning processes ITP10 – 10 year economic and reliability analysis18

Planning Zone MapC O L O R A D OMN E WE X I CZone 1Western Kansas, OklahomaPanhandle, & Texas North AreaZone 2Amarillo Area: Adrian, Vega,Channing, Amarillo, Groom andMcLean.Zone 3Clovis, Hereford, and Canyon AreaZone 4Central Plains and Lubbock AreaZone 5Yoakum and Gaines AreaZone 6Pecos ValleyZone 7Hobbs/Jal AreaZone 8Caprock AreaZone 1OZone 2Zone 3Zone 47WESZone5ZoneZone6NZone 8345 kV230 kV115 kV69 kVREC19

Zone 1: Western Kansas, Oklahoma Panhandle, & Texas North AreasND OW Agricultural, large industrial, smallresidential loads Includes Oklahoma Panhandle –Tri-County Electric Cooperative isretail provider Towns of Guymon, OK, Dalhart, TX,Perryton, TX 230 kV , 115 kV, and 69 kVtransmission High wind energy potential Issues - wind generation, loadexpansion in transmission remoteareas, 69 kV capacityESZone 1345 kV230 kV115 kV69 kVZone 2REC20

Zone 2: Amarillo AreaNWES345 kV230 kV115 kV69 kVRECZone 2Amarillo Industrial, oilfield,agricultural, residential,and commercial loads Cities of Amarillo andChanning 345-69 kV transmission Good growth in past years 230 kV interconnectionwith AEP Issues – growth, Amarillotransmission upgradesneeded21

Zone 3: Clovis, Hereford, and Canyon Area NWESZone 2 Zone 3 345 kV230 kV115 kV69 kVZone 4REC Heavy agricultural andindustrial areaCities of Portales, Clovis,Tucumcari, Muleshoe, Friona,Hereford, and Canyon230, 115, and 69 kVtransmission, BlackwaterHVDC interconnection withPNMHigh wind energy potentialIssues – Clovis transmissionsystem upgrading, Herefordarea transmission loading22

Zone 4: Central Plains and Lubbock Area Heavy agriculture, industrial, andresidential loads Cities of Lubbock, Crosbyton,Post, Graham 345-69 kV transmission system.345 kV interconnection with AEP Issues – 69 kV transmissioncapacity, 230/115 kVinterchange capacityNWESZone 4345 kV230 kV115 kV69 kVe5REC23

Zone 5: Yoakum and Gaines Area Heavy industrial and oilfield loads,residential and agricultural loads High load factor area 230-69 kV transmission system Issues – continued industrial andoilfield load development, 69 kVtransmission capacitySeminole TexasNWES345 kV230 kV115 kV69 kVREC24

Zone 6: Pecos Valley Roswell, NMNW ES6 Artesia, NM ZZone Agricultural, industrial, oilfield, and residentialloadsCities of Carlsbad, Roswell, Artesia, andLovingtonEddy Co HVDC – interconnection with El PasoElectric345-69 kV transmission systemIssues – Roswell 69 kV to 115 kV loopconversion, Carlsbad 69 kV capacityCarlsbad, NM345 kV230 kV115 kV69 kVREC25

Zone 7: Hobbs/Jal AreaNW Industrial and oilfield, with residential loads Cities of Hobbs, Jal, and Eunice 230 and 115 kV transmission Issues - upgrading the 115 kV system around Hobbs,variable generation dispatchEZone7SZH obbs, N M345 kV230 kV115 kV69 kVREC26

5Zone 8: Caprock AreaZone345 kVN230 kV115 kVW Industrial, oilfield, and residential load Sharyland Utilities bought CaprockElectric’s entire system Sharyland Utilities is the only customeron this system Sharyland Utilities’ 138 kV transmissionsystem overlays ERCOT This area has experienced rapidgrowth, voltage issues in lighter loadperiods SPS’s settlement agreement withSharyland Utilities limits SharylandUtilities load to 150 MW or less.E69 kVRECSZone 8Midland, Texas27

Current and Proposed Transmission ProjectsZone 1:28

Current and Proposed Transmission ProjectsZone 1:No.Project NameEst.ISDStatusDrivers1Potter County 230/115 kV 250 MVA TF12/2011CompleteReliability2Novus II (250 MW)12/2011CurrentIA3Etter Rural 2nd Stage 115 kV 14.4Mvar Capacitor06/2012CompleteReliability4Potter Co‐ Channing to Dallam 115 kV line06/2012CompleteReliability5Ochiltree 230/115 kV 172.5 MVA Autotransformer03/2013CurrentReliability6Ochiltree Co. 115 kV line terminations03/2013CurrentReliability7Hitchland‐ Ochiltree Co. 230 kV line03/2013CurrentReliability8Kingsmill 2nd 115/69 kV Autotransformer05/2013CurrentReliability9Install 230/115/13.2 kV Transformer at Dallam County Jr. (XIT) Sub06/2013ProposedReliability10Install the Backup protection system and Breaker Failure Relay onBreaker 1H45 at Pringle Intg.06/2013ProposedReliability11Howard 2nd 115/69 kV Autotransformer06/2013ProposedReliability12Install the Backup protection system and Breaker Failure Relay onBreaker 1956 at Hutchinson.06/2013ProposedReliability13Rebuild 16.9 miles Ochiltree‐TRI‐County RECs Cole 115 kV ckt 106/2013ProposedReliability29

Current and Proposed Transmission ProjectsZone 1: (cont.)No.Project NameEst.ISDStatusDrivers14Hitchland 2nd 345/230 kV 560 MVA Auto02/2014ProposedReliability15Hitchland– Woodward Dbl 345 kV Transmission Project06/2014CurrentReliability16Bowers– Howard 115 kV line06/2014CurrentReliability17Spearman 115/69 kV Autotransformer Upgrade06/2014ProposedReliability18Pringle Distribution06/2015ProposedReliability19Z66 Booker/Wade Conversion12/2015CurrentReliability20Potter‐ Channing‐Dallam 115 to 230 kV Conversion12/2015ProposedReliability21Bowers 2nd 115/69 kV d II06/2016ProposedReliability23Replace 230/115 kV transformer at Grapevine substation with250 MVA transformer06/2017ProposedReliability30

Current and Proposed Transmission ProjectsZone 2:WE8754S8760TEXASNEW MEXICON8738598CITY OF AMARILLO17 761210 16313 14115440LEGEND40345 KV LINE345 KV (PROPOSED)230 KV LINE115 KV (PROPOSED)69 KV LINE401230 KV (PROPOSED)115 KV LINE403856022871531

Current and Proposed Transmission ProjectsZone 2:#Project NameEst.ISDStatusDrivers1Randall Co‐ Palo Duro Sub 115 kV Re‐conductor line05/2012CompleteZonal2Palo Duro Sub‐ Happy Interchange 115 kV Re‐conductor Line05/2012CompleteZonal3Hillside Substation06/2012CompleteReliability4Randall 2nd 230/115 kV � Amarillo South 230 kV line04/2013CurrentReliability6Install the Backup protection system and Breaker Failure Relay onBreaker 5910 at Northwest Intg.06/2013ProposedReliability7Cherry St.‐ Hastings New 115 kV line06/2013NTCReliability8Hastings Sub Convert to 115 kV09/2013CurrentReliability9Cherry St Interchange 230/115 kV 252 MVA TF10/2013CurrentReliability10East Plant‐ Hastings 115 kV line.12/2013CurrentReliability32

Current and Proposed Transmission ProjectsZone 2 (Cont.):#Project NameEst.ISDStatusDrivers11Bushland Interchange 230 kV 100Mvar Capacitor12/2013ProposedReliability12Soncy Sub Convert to 115 kV06/2015CurrentReliability13Osage Station and 115 kV Line re‐termination06/2015CurrentReliability14Randal Co. (Osage)‐ South Georgia 115kV Re‐conductor Line06/2015ProposedReliability15Happy Interchange 115/69 kV Upgrade ton – Randall 230kV Circuit #206/2017ProposedReliability17Re‐conductor 115 kV NORTHWEST‐ROLLHILLS line06/2017ProposedReliability

Current and Proposed Transmission ProjectsZone 3:N385WE5S40404010401112385 98432276084476015606017 162818TEXAS6014NEWMEXICO7013 20 22286 212738519707084701528570LEGEND242738523345 KV LINE846262345 KV PROPOSED230 KV LINE230 KV (PROPOSED)115 KV LINE38023115 KV (PROPOSED)69 KV LINE628438034

Current and Proposed Transmission ProjectsZone 3 (Cont.):Project NameEst.ISDStatusDrivers1Parmer Co. Cap Bank05/2012CurrentReliability2Deaf Smith # 24 GSEC06/2012CompleteIA3Re‐terminate T3 in & out of Deaf Smith Interchange (Re‐conductor from DeafSmith to Hereford 115 kV line)06/2012CurrentReliability4Clipper Wind (400 MW)10/2012CurrentIA5Campbell St Modifications (Lopez)03/2013CurrentReliability6Zodiac Substation Convert to 115 kV06/2013CurrentReliability7Hereford – NE Hereford (Z72) re‐insulate 69 kV line06/2013CurrentReliability8East Clovis Sub Convert to 115 kV06/2013CurrentReliability9Deaf Smith 230 kV Bus Rebuild06/2013ProposedReliability10Upgrade Deaf Smith County Interchange 230/115 kV Ckt 1 & 2 transformers to250 MVA06/2013ProposedReliability11Norton Reactor 115 kV09/2013SuspendedZonal12NE‐Hereford 2nd 115/69 kV 84 MVA s – Zodiac Convert to 115 kV06/2014CurrentReliability

Current and Proposed Transmission ProjectsZone 3 (Cont.):Project NameEst.ISDStatusDrivers14Portales – Zodiac 115kV line06/2014CurrentReliability15Pleasant Hill‐ Oasis Interchange 230 kV line09/2014CurrentReliability16Pleasant Hill‐ Roosevelt Co. 230 kV line09/2014CurrentReliability17Pleasant Hill 230/115 kV interchange12/2014CurrentReliability18Curry Co – Bailey Co 115 kV line06/2015NTC PendingReliability19East Muleshoe & Valley Subs Convert to115 kV11/2015ProposedReliability20PORTALES 115/69 kV autotransformers upgrade06/2017ProposedReliability21Build 7 miles of 115 kV from Market St to Portales substation and installnecessary terminal equipment06/2018ProposedReliability22Build 1.9 miles of 115 kV from S Portales to Market St 115 kV and installnecessary terminal equipment06/2018ProposedReliability23TUCO‐Amoco Switch‐Hobbs06/2020ProposedReliability24East New Deal Interchange06/2020ProposedReliability25Install the Backup protection system and Breaker Failure Relay on Breaker4K25 at Roosevelt Intg.06/2013ProposedReliability36

NEW MEXICOCurrent and Proposed Transmission ProjectsZone 4:37

Current and Proposed Transmission ProjectsZone 4:#Project NameEst.ISDStatusDrivers1Tulia Tap‐ Kress Interchange Re‐conductor 115 kV line04/2012CompleteZonal2Happy Interchange‐ Tulia Tap Re‐conductor 115 kV line04/2012CompleteZonal3Build new 22‐mile Kress Interchange ‐ Kiser 115 kV06/2013ProposedReliability4Build new 10‐mile Cox ‐ Kiser 115 kV line06/2013ProposedReliability5Install two 14.4 MVA 115 kV capacitors at Floyd Intg.06/2013ProposedReliability6Happy Whiteface Wind (240 MW)10/2013CurrentIA7Newhart ‐ Kress 115 kV line03/2014CurrentReliability8TUCO Interchange 2nd 345/230 kV 560 MVA TF06/2014CurrentBalancedPortfolio9Tuco – Woodward 345 kV Project06/2014CurrentReliability10Tuco Interchange 3rd 115/69 kV Autotransformer06/2014NTC PendingReliability11Happy Sub Upgrade both 115/69 kV transformers to 84/96 MVA.06/2014NTCReliability12Newhart ‐ Castro Co 115 kV line06/2014CurrentReliability38

Current and Proposed Transmission ProjectsZone 4 (cont.):#Project NameEst.ISDStatusDrivers13Newhart - Lamton 115 kV line (with Hart Ind. Tap)11/2014CurrentReliability14Newhart - Swisher Co. 230 kV line12/2014CurrentReliability15Newhart - Kress 115 kV line03/2014CurrentReliability16Hart Industrial Sub Convert to 115 kV06/2015CurrentReliability17Kress - Kiser 115 kV line03/2014CurrentReliability18Kiser Substation (New) 115/69 kV04/2014CurrentReliability19Kiser Substation - Cox Interchange New115 kV line12/2014CurrentReliability20Plainview North Convert to 115 kV06/2014CurrentReliability21Swisher Co. Upgrade 230/115 kV TF to 252 MVA06/2017NTCPendingReliability22Dimmit Substation Convert to 115 kV06/2016ProposedReliability23Kress - Swisher Co. Upgrade the 115 kV line terminal equipment06/2021ProposedReliability39

Current and Proposed Transmission ProjectsZone 4 (cont.):40

Current and Proposed Transmission ProjectsZone 4 (cont.):#Project NameEst.ISDStatusDrivers25Wolfforth ‐ Yuma terminal Upgrade 115 kV line terminal equipment10/2012NTCReliability26Wolfforth – Yuma T72 115 kV Upgrade line terminal equipment12/2012CurrentReliability27GSEC‐SP Milwaukee Interconnection03/2013CurrentIA28Install a second 230/115/13.2 kV transformer at Lubbock South06/2013ProposedReliability29Rebuild 28 miles 115 kV Crosby‐Floyd ckt 106/2013ProposedReliability30Jones 406/2013CurrentReliability31Jones Plant Bus06/2013CurrentReliability32Crosby Co Upgrade Both 115/69 kV transformers to 84 MVA06/2013ProposedReliability33Lynn Co. Substation Convert load to 115 kV11/2013NTCReliability34Crosby Co 115 kV 14.4 MVAr Capacitor Project03/2014ProposedReliability35Jones Bus #2 ‐Lubbock S. Upgrade 230 kV line terminal equipment06/2014ProposedReliability36Allen – Lubbock South 115 kV rebuild line06/2014ProposedReliability37Grassland Interchange Upgrade 230/115 kV TF to 150 MVA06/2015ProposedReliability38Graham Upgrade 115/69 kV transformer to 84/96 MVA06/2017ProposedReliability41

Current and Proposed Transmission ProjectsZone 4 (cont.):#Project NameEst.ISDStatusDrivers39Build new 230kV line from Carlisle to Wolfforth So. and installterminal equipment06/2017ProposedReliability40LYNN CNTY 115/69 kV autotransformers upgrade06/2017ProposedReliability41Wolfforth – Grassland 230/345 kV Project03/2018ProposedReliability42Wolfforth – Grassland 230 kV Line06/2018ProposedReliability43Install a 2 stage 28.8 115 kV capacitor bank each stage 14.4 MVA atCochran Interchange06/2018ProposedReliability44GSEC‐SP Alcove InterconnectionUnknownPendingIA45GSEC‐SP Wolfforth InterconnectionUnknownPendingIA46LC‐Littlefield 115 kV conversionUnknownPendingReliability47East Levelland 115 kV conversionUnknownPendingReliability48Carlisle Intg. 2nd 168 MVA 230/115 kV TFUnknownPendingReliability49Vickers Sub Convert to 115 kVUnknownPendingReliability42

Current and Proposed Transmission ProjectsZone 5:380NEW MEXICO82282380NWES3162LEGACY180TEXASLEGEND345 KV LINE345 KV (PROPOSED)230 KV LINE230 KV (PROPOSED)115 KV LINE115 KV (PROPOSED)69 KV LINE43

Current and Proposed Transmission ProjectsZone 5:#Project NameEst.ISDStatusDrivers1Johnson Draw Project 115 kV09/2012CompleteReliability2Yoakum Co. bus rebuild06/2014CurrentReliability3Sulphur Springs – Cedar Lake 115 kV line06/2015ProposedReliability44

Current and Proposed Transmission ProjectsZone 6:NWES117015 16 4514 9380NEW MEXICO285827 10 1718202162192856131Intrepid West12211LEGEND62345 KV LINE9Red Bluff345 KV (PROPOSED)3230 KV LINE230 KV (PROPOSED)2858115 KV LINEWood Draw115 KV (PROPOSED)69 KV LINETEXAS45

Current and Proposed Transmission ProjectsZone 6:#Project NameEst.ISDStatusDrivers1Ocotillo Substation Convert to 115 kV02/2012CompleteReliability2Ocotillo – Pecos 115 kV line04/2012CompleteRel

SPS system plan rolls up to Southwest Power Pool (SPP) regional plan and SPP stakeholder process. 2. . TPL-001-2, update to existing TPL-001 through TPL-004 . 5,880 MW by 2015, 10,000 MW by 2025. SPS has energy sales ratio share of total. .

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