5.4. ERMUSR 02-20-2007 - Laserfiche WebLink

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CAPX 2020 INTERIM REPORT' DECEMBER 2004 ;~~ improvements to be developed in a timely, efficient manner consistent with the public F ~ interest. Attachment D provides more detail on these technical studies, while Attachment E summarizes our on-going review of state planning and regulatory issues. ~'' PRELIMINARY RESULTS ~ ~~ Preliminary results from these studies show that the current transmission system will not support the forecasted need for new generation facilities to meet projected customer demand. Absent new investment in transmission facilities, our preliminary analysis anticipates significant line and equipment overloads by 2020, assuming customer requirements develop . as projected. These overloads occur under even the most optimistic scenario that has all major transmission lines and equipment in service. Many more overloads occur when other 1 ` ' facilities must be removed from service because of storm damage, for routine maintenance or ~ for any other reason. Under the Vision Study, we are considering several possible scenarios of generation development and the transmission additions needed to serve each. Comparing the resulting plans will allow us to identify the projects needed to reinforce the grid regardless of how generation develops. All told, the study is examining approximately 3,300 miles of additional transmission facilities with an estimated cost of $2.7 billion. While all of these facilities may not be needed to address the customer needs in 2020, CapX 2020 believes it is important to identify for stakeholders the magnitude of investment and projects under review. Preliminary findings from the Red River Valley study recommend short-term upgrades to ensure reliability in the near future and along-term system solution. While work has already begun on many of the short-term upgrades, the best long-term alternative includes a new 345 kilovolt line from Fargo, N.D., to St. Cloud, Minn., and a 230 kilovolt line from Bemidji, Minn., to Grand Rapids, Minn. Our further study will confirm whether this project is still the best long-term solution. NEXT STEPS CapX 2020 is committed to making the necessary investments to upgrade the grid that delivers power to customers. We agree now is the time to strengthen the electricity system's backbone, before new power plants are constructed and in time to meet customer needs. Our next steps include: • Completion of the technical studies in May 2005. • Dialogue with policymakers and stakeholders regarding the CapX 2020 studies and state process issues. • Outreach to other transmission providers to share information and collaborate on solutions. 6