Western Spirit Clean Line Project. Non Tariff Interconnection Facilities Study

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Kelly Blankenship
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1 Western Spirit Clean Line Project Non Tariff Interconnection Facilities Study September 2017 Work Performed by: Public Service Company of New Mexico

2 Foreword This technical report is prepared for Clean Line Energy Partners, LLC (Transmission Developer) by Public Service Company of New Mexico Transmission Planning and Contracts Department in response to a nontariff interconnection facilities study agreement for wires to wires interconnection of a proposed new 345 kv transmission line interconnecting to PNM s Rio Puerco 345 kv Station executed in March 13 th, This document was prepared by PNM. PNM does not: (a) make any warranty or representation whatsoever, express or implied, (i) with respect to the use of any information, apparatus, method, process, or similar item disclosed in this document, including merchantability and fitness for a particular purpose, or (ii) that such use does not infringe on or interfere with privately owned rights, including any party's intellectual property, or (iii) that this document is suitable to any particular user's circumstance; or (b) assumes responsibility for any damages or other liability whatsoever (including any consequential damages, even if PNM or any PNM representative has been advised of the possibility of such damages) resulting from your selection or use of this document or any information, apparatus, method, process, or similar item disclosed in this document. Any correspondence concerning this document, including technical and commercial questions should be referred to: Director, Transmission/Distribution Planning and Contracts Public Service Company of New Mexico 2401 Aztec Road NE, MS-Z220 Albuquerque, NM 87107

3 Table of Contents 1. Executive Summary Required Network Upgrades Expansion of Rio Puerco 345 kv Station Summary of Cost Estimate and Work Schedule... 7 Appendix A: Detailed Schedule and Cost Estimate... 9 List of Figures Figure 1: Western Spirit Clean Line Project Location... 5 Figure 2: Expansion of Rio Puerco Station, the proposed new 345 kv line and associated facilities... 6 List of Tables Table 1 Rio Puerco Station Expansion for Wires-to-Wires Interconnection of Western Spirit Clean Line Cost and Construction Schedule Estimate... 7 Table 2 - Rio Puerco Station Expansion Schedule Estimate... 9 Table 3 - Detailed Network Upgrade Cost Estimate for Rio Puerco Station Expansion... 9 Table 4 - Detailed Transmission Providers Interconnection Facilities Cost Estimate for Rio Puerco Station Expansion... 10

4 1. Executive Summary Public Service Company of New Mexico ( PNM ) performed this Interconnection Facilities Study ( Study Report ) based on the results from a completed System Impact Study ( SIS ) for the Western Spirit Clean Line project dated February The purpose of this Study Report is to provide cost and construction schedule estimates for facilities or system reinforcements needed to interconnect the proposed approximately 140 mile single circuit 345 kv transmission line into PNM s Rio Puerco 345 kv Station ( Rio Puerco ) to transmit 1000 MW of wind from Torrance, Guadalupe and Lincoln counties. The Study Report was developed in accordance with the non-tariff Interconnection Facilities Study Agreement executed in March 13 th, In order to provide wires-to-wires interconnection of the new 345 kv line into Rio Puerco, expansion of Rio Puerco by two breakers, also referred to as the Project in this Study Report, will be required. The total estimated cost of the Project in 2017 dollars required for interconnection of the new line into Rio Puerco is $10,810,423. The Project is estimated to be complete within 16 months after authorization to begin work. Figure 1 shows the proposed new 345 kv line and its general location on the transmission system. 1 Page 4

Figure 1: Western Spirit Clean Line Project Location This Study Report details required system improvements needed to accommodate the proposed 140 mile single circuit 345 kv line as well as the

5 Figure 1: Western Spirit Clean Line Project Location This Study Report details required system improvements needed to accommodate the proposed 140 mile single circuit 345 kv line as well as the associated cost and construction schedule estimates. Section 2 of this Study Report explains the need and scope of system improvements. Cost and construction time estimates are summarized in Section 3 of this Study Report. Appendix A provides detailed schedules and cost estimates. 2. Required Network Upgrades The following system reinforcements have been identified in the SIS as a requirement to interconnect the new 345 kv line: Expansion of Rio Puerco by two breakers Figure 2 shows the Project, the proposed new 345 kv line connecting to Rio Puerco and the nearby transmission system. Page 5

6 WTG Equivalent Generator Step Up 690 V Transformer 34.5 kv R, X, B Equivalent Feeder Model Aggregated WTG model (Assume Type 4) WTG 690 V 34.5 kv R, X, B Equivalent Feeder Model Substation Transformer 345 kv Aggregated WTG model (Assume Type 3) 34.5 kv MSC or SVC/STATCOM (if any needed) To Four Corners Rio Puerco 345 kv Substation To San Juan SVC To West Mesa To West Mesa To BA To BA Existing Facilities New Facilities New Customer Facilites Figure 2: Expansion of Rio Puerco Station, the proposed new 345 kv line and associated facilities 2.1 Expansion of Rio Puerco 345 kv Station The SIS identified the need for expansion of Rio Puerco by adding two additional breakers to interconnect the proposed 140 mile single circuit 345 kv transmission line. Per PNM s Breaker Configuration Policy, a breaker and a half configuration at Rio Puerco will be required to reliably interconnect the new line at Rio Puerco. Figure 2 shows the proposed layout of the station. Rio Puerco expansion will also require metering, protection and control upgrades at Rio Puerco. Page 6

7 3. Summary of Cost Estimate and Work Schedule The total cost and construction schedule estimates are shown below in Table 1. Construction schedule estimates are from the date the Interconnection Customer provides written authorization to proceed, provided all agreements and funding arrangements are in place. It is likely that PNM will incur outage costs during the construction of the identified system reinforcement. The cost of construction outages cannot be estimated at this time. However, in accordance with applicable Federal Energy Regulatory Commission Policy, PNM reserves the right to recover such costs from the Interconnection Customer. Table 1 Rio Puerco Station Expansion for Wires-to-Wires Interconnection of Western Spirit Clean Line Cost and Construction Schedule Estimate Summary of Cost and Construction Schedule Estimate EXPANSION OF RIO PUERCO STATION COST ($M) CONSTRUCTION TIME Network Upgrade months Transmission Provider s Interconnection Facilities (TPIF) months Total months The following general assumptions have been applied in preparing cost and construction schedules estimate: 1. Project is estimated to be complete within minimum of 16 months after authorization to begin work. 2. Unforeseen delays due to permitting, weather, equipment delays or lack of construction resources are not included in the above schedule. 3. Lead times for major equipment are based on current production schedules. 4. Schedule assumes system outages will be available for station cutover when needed. 5. Allowance for Funds Used During Construction (AFUDC) is not collected if the customer makes monthly payment during construction. Major activities are presented in the construction schedule estimate in Appendix A - Table 2 below. The schedule is representative of typical Project timelines and activities. Additional cost estimate details are Page 7

8 presented in Appendix A - Table 3 and in Appendix A - Table 4 for Rio Puerco expansion and associated Transmission Provider s Interconnection Facilities upgrade. Page 8

9 Appendix A: Detailed Schedule and Cost Estimate Table 2 - Rio Puerco Station Expansion Schedule Estimate Table 3 - Detailed Network Upgrade Cost Estimate for Rio Puerco Station Expansion Page 9

10 Table 4 - Detailed Transmission Providers Interconnection Facilities Cost Estimate for Rio Puerco Station Expansion Page 10

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