Transmission Planning at the California ISO

September 10, 2015

ISO’s annual transmission planning process relies on state policy and state agency input and aligns assumptions

Page 2

March 2016April 2015January 2015

State and federal policy

CEC - Demand forecasts

CPUC - Resource forecasts and common assumptions with procurement processes

Other issues or concerns

Phase 1 – Develop detailed study plan

Phase 2 - Sequential technical studies

• Reliability analysis

• Renewable (policy-driven) analysis

• Economic analysis

Publish comprehensive transmission plan with recommended projects

ISO Board approves transmission plan

Phase 3 Procurement

Transmission planning is coordinated with state processes:

Create demand forecast & assess resource needs

CEC &CPUC

Creates transmission planCAISO

Creates procurement plan

CPUC

1

2

3

4

IOUs

Final plan authorizes procurement

Results feed into next biennial cycle

ISO transmission approvals over last 5 years – over 30 projects/yr until pace slowed in 2014-2015

2010-11 2011-12 2012-13 2013-14 2014-15$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

EconomicPolicyReliability

Slide 4

Transmission Plan

Cap

ital C

ost i

n $

mill

ions

Delaney-Colorado River and Harry Allen-Eldorado

First cycle of CAISO’s biennial FERC Order 1000 interregional planning process begins 2016

Page 5

• Four planning regions coordinate evaluation, selection, and allocation of costs of proposed interregional transmission projects (CAISO, Columbia Grid, Northern Tier, and West Connect)

Phase 1Development of ISO unified planning assumptions and

study plan

Phase 3Receive proposals to build identified policy

and economic transmission projects

Mar 2016

Mar 2017

Project Submissions Due Mar 31

ConductScreening Process

Preliminary AssessmentInterregional Coordination Stakeholder

Meeting

Dec 2015

Oct 2017

Jan 2016

Stakeholder Meeting 1

Mar

Stakeholder Meeting 2

Sept

Stakeholder Meeting 3

Nov

Phase 2Technical Studies and Board Approval

Study Plan Addendum

Jan 2017

Inform other Relevant Regions

andStop Assessment

Move to the next planning

cycle

Stakeholder Meeting 4

Feb

Viable?

The CAISO transmission planning process is well-positioned to play a key role in RETI 2.0

• Past coordination on renewable generation development has been effective in identifying transmission needs for 33% RPS

• Further coordination is in place for load forecasting and forecasting of preferred resources

• Alignment has evolved and improved between the CAISO, CPUC and CEC processes

Page 6