SCENARIO 2 PRESENTATION

345KV HVDC ALTERNATIVEROBERT LONA

SENIOR CONSULTANTERCOT SYSTEM PLANNING

3/10//2008

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HVDC COST ASSUMPTIONS• $250/KW HVDC RATING(MW) COST $M 1000 $789 1500 $1,039 2000 $1,289 2500 $1,539 3000 $1,789 4000 $2,289

• $1.05 MILLION/MILE(APPROXIMATELY 70% OF AC LINE COST)

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3000MW HVDC ALTERNATIVES

• BLUFF CRK 345KV BUS – EVERMAN 345KV BUS• PANHANDLE – NAVARRO 345KV BUS• ODESSA 345KV BUS – W.A.PARISH 345KV BUS• OTHERS?

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BLUFF CRK – EVERMAN 3000MW HVDC

• ~ 165 MILES• ESTIMATED TRANSMISSION COST $173 MILLION• HVDC COST $1,500 MILLION• TOTAL HVDC COST $1.673 BILLION

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HVDC: BLUFCRK5 – EVERMAN5

SALADO5

KENDALL

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CURRENT STATUS OF BLFCRK – EVERMAN HVDC

4 – MONTH WIND CURTAILMENT

MCCAMEY CENTRAL PANHANDLE OVERALL 3.21% 5.62% 11.12% 6.93%

TRANSMISSION COST COMPARABLE TO FULL 345KV AC CASESWITH 2% CURTAILMENT

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PANHANDLE – NAVARRO 3000MW HVDC

• ~ 275 MILES• ESTIMATED TRANSMISSION COST $289 MILLION• HVDC COST $1,500 MILLION• TOTAL HVDC COST $1,789

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3000MW HVDC: PANHANDLE – NAVARRO

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NAVARRO

SALADO

KENDALL

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CURRENT STATUS OF PANHANDLE - NAVARRO HVDC

4- MONTH WIND CURTAILMENT

MCCAMEY CENTRAL PANHANDLE OVERALL 8.61% 20.12% 3.28% 12.45%

TRANSMISSION COST COMPARABLE TO FULL 345KV AC CASESWITH 2% CURTAILMENT

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NEXT STEPS

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QUESTIONS ?