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<br /> <br />CAP X 2020 <br />INTERIM REpORT <br />DECEMBER 2004 <br /> <br />improvements to be developed in a timely, efficient manner consistent with the public <br /> <br />..... Attachment D provides more detail on these technical studies, while Attachment E <br />. summarizes our on-going review of state planning and regulatory issues. <br /> <br />PRELIMINARY RESULTS <br />Preliminary results from these studies show that the current transmission system will not <br />support the forecasted need for new generation facilities to meet projected customer demand. <br />Absent new investment in transmission facilities; our preliminary analysis anticipates <br />significant line and equipment overloads by 2020, assuming customer requirements develop <br />as projected. These overloads occur under even the most optimistic scenario that has all <br />. major transmission lines and equipment in service. Many more overloads occur when other <br />facilities must be removed from service because of storm damage, for routine maintenance or <br />for any other reason. <br /> <br />Under the Vision Study, we are considering several possible scenarios of generation <br />development and the transmission additions needed to serve each. ,Comparing the resulting <br />plans will allow us to identify the projects needed to reinforce the grid regardless of how <br />generation develops. All told, the study is examining approximately 3,300 miles of <br />additional transmission facilities with an estimated cost of $2.7 billion. While all of these <br />facilities may not be needed to address the customer needs in 2020, CapX 2020 believes it is <br />important to identify for stakeholders the magnitude of investment and projects under review. <br /> <br />Preliminary findings from the Red River Valley study recommend short-term upgrades to <br />ensure reliability in the near future and a long-term system solution. While work has already <br />begun on many of the short-term upgrades, the best long-term alternative includes a new 345 <br />kilovolt line from Fargo, N.D., to St. Cloud, Minn., and a 230 kilovolt line from Bemidji, <br />Minn., to Grand Rapids, Minn. Our further study will confirm whether this project is still <br />the best long-term solution. <br /> <br />NEXT STEPS <br />CapX 2020 is committed to making the necessary investments to upgrade the grid that <br />delivers power to customers. We agree now is the time to strengthen the electricity system's <br />backbone, before new power plants are constructed and in time to meet customer needs, <br /> <br />,. <br />. . <br /> <br />Our next steps include: <br /> <br />,...'............... <br />-, <br /> <br />. f <br /> <br />. <br /> <br />Completion of the technical studies in May 2005. <br />Dialogue with policymakers and stakeholders regarding the CapX 2020 studies and state <br />process issues. <br />Outreach to other transmission providers to share information and collaborate on <br />solutions. <br /> <br />'t' <br /> <br />. <br /> <br />. <br /> <br />. ~ <br /> <br />6 <br /> <br />i, <br /> <br />@. <br />I <br />.~..'.. <br />~. <br />~ <br />!> <br />!,jj <br />I <br />:i:." <br />