WECC Project Coordination Review Report Path 65 Upgrade June 19, 2013 1.0 Introduction This project proposes to increase the rating of the Pacific Direct Current Intertie (PDCI), Path 65, from its present rating of 3100 MW to 3220 MW for north to south power flow. No change is proposed for the south to north direction. This increase will be realized by increasing the operating voltage at the northern terminal, the Celilo Converter Station, from +500 kV to + 520 kV while maintaining the present current rating of 3100 A. The voltage at the southern terminal, the Sylmar Converter Station, will increase by approximately 20 kV, which is within the capability of existing terminal equipment. This report serves to document the WECC Project Coordination Process and how the project sponsor, the Bonneville Power Administration (BPA), meets the four Project Coordination Review Objectives. 2.0 Project Background The Celilo Converter Station is over 40 years old and aging systems and equipment failures are contributing to deteriorating reliability of the PDCI. Over the years, several upgrades have added layers of new technology over old and created a highly complex four converter system that is difficult to operate and maintain. A comprehensive BPA study of in-kind equipment replacements required to sustain acceptable performance over the next 30 years revealed that the present value of required investments would exceed the cost of replacing the entire converter station with a modern two converter terminal. The complete replacement option would be simpler to operate, substantially less costly to maintain and would reduce terminal losses. This approach would largely mirror the 2004 Sylmar Replacement Project which replaced the four converter terminal, including the obsolete mercury arc valves, with a modern two converter terminal. Installing all new converter equipment at Celilo would also provide an opportunity to upgrade the terminal power rating for a relatively low incremental cost which could support additional PDCI capacity. To explore this possibility, BPA and Los Angeles Department of Water and Power (LADWP) undertook a study of PDCI upgrade alternatives. The study found that the Sylmar converters have the inherent capacity to support up to 3800 MW (input at Celilo) for north to south power flows. The study also examined the capability of the Celilo-Sylmar DC transmission line and found that extensive upgrades would be required for the portion of line from the Nevada-Oregon Border (NOB) to Sylmar which is owned by LADWP and the other Southern Owners (Southern California Edison and the cities of Burbank, Glendale and Pasadena). The Celilo-NOB portion of the line owned by BPA was designed with higher ground clearance and would require less costly upgrades including insulator replacement and shunting of compression fittings to support up to 3800 MW. PDCI Upgrade Project Coordination Report 1 Preliminary planning studies found that the AC transmission system supporting both Celilo and Sylmar converters would require increasing degrees of reinforcement depending on the level of PDCI upgrade ultimately implemented. PDCI bipole loss during heavy north to south power flow is a severe disturbance with widespread performance impacts for the western interconnection transmission system. Any increase in PDCI north to south transfer rating will increase the severity of this disturbance and will be studied extensively as part of the WECC Path Rating Process to ensure that system performance criteria are met for all PDCI outage contingencies. While the higher rating will increase outage impacts, the Celilo Converter Station modernization will significantly improve PDCI reliability and reduce the probability of bipole outages. Based on the results of the PDCI alternatives study, three potential levels of upgrade were identified: 3220 MW – This level would maintain the existing 3100 A current rating but would increase the Celilo voltage to 520 kV. This would limit the voltage at NOB to 500 kV thereby requiring no line upgrades south of NOB. The Celilo-NOB line portion would be upgraded. Control modifications would be required at Sylmar. Preliminary BPA studies indicate that no AC transmission system reinforcements will be required to support this 120 MW rating increase, beyond the existing reinforcements identified for other system demands which also improve the service to the PDCI such as the Big Eddy-Knight 500 kV line and the Big Eddy-John Day #1 500 kV line upgrade. 3450 MW – This level, referred to as the voltage only upgrade, would maintain the 3100 A current rating while increasing Celilo voltage to 556 kV. This would make full use of the Sylmar converter voltage capability in inverter mode. No additional line upgrades would be required for the Celilo-NOB line. Substantial NOB-Sylmar line modifications would be required including insulator replacement and raising or replacing a large number of towers to provide adequate ground clearance. Unspecified AC transmission system reinforcements would be required to support this 350 MW rating increase. 3820 MW – This level, referred to as the voltage and current upgrade, would increase the current rating to 3410 A, which is the maximum inherent capability of Sylmar terminal, and increase Celilo voltage to 560 kV. No additional line upgrades would be required for the Celilo-NOB line. Additional line upgrades would be required for the NOB-Sylmar line to provide additional clearance for increased conductor sag. Sylmar transformers would require additional cooling capacity. Unspecified AC transmission system reinforcements would be required to support this 720 MW rating increase. In December 2011, BPA Executive Management approved proceeding with the Celilo complete replacement option with the new terminal designed to support the full 3820 MW level capable of operating at 560 kV and 3410 A. The relatively small incremental cost increase to extend the PDCI Upgrade Project Coordination Report 2 Celilo converter rating and Celilo-NOB line capability beyond 3220 MW to 3820 MW would preserve the opportunity for future upgrade of the PDCI to more fully utilize the inherent capacity of the existing Sylmar converters. However, because of the high costs and uncertain benefits for the Southern Owners, they are unable to support a PDCI uprating beyond the 3220 kV level at this time. The decision to upgrade the 265 mile Celilo-NOB transmission line cannot be made before the Environmental Assessment (EA) is completed in May 2014. If the environmental process results in a “No Action” decision for the transmission line upgrade project, the proposal to increase the PDCI north to south rating to 3220 MW will be withdrawn and the rating will remain at 3100 MW. The PDCI upgrade business case anticipated this possibility and analysis supported proceeding with the Celilo upgrade project even if the PDCI rating were never increased beyond the current 3100 MW rating. Delaying the Celilo upgrade decision until the line decision was completed would have delayed replacement of the unreliable Celilo terminal equipment by two or more years and exposed the PDCI to a high risk of major Celilo failures. HVDC system manufacturers were invited to submit offers in June 2012. After competitive evaluation of offers, a contract was awarded to ABB in December 2012. ABB will begin construction and equipment installation in October 2014 and complete testing and commissioning in December 2015. ABB will reuse the existing converter 1 and 2 valve hall buildings for the new converter valves requiring an outage of converters 1 and 2 from November 2014 through December 2015 during which time the PDCI capacity will be curtailed to 2000 MW. Plans for the Celilo-NOB transmission line upgrade work will not be finalized until completion of the environmental process in May of 2014. If the decision is to proceed as proposed, the work will begin in the summer of 2014 and be completed by November 2017. This schedule is based on minimizing outage impacts and will involve both dead line and live line work. The schedule may be accelerated if additional outages can be arranged during periods of low PDCI capacity demand. Although the Celilo terminal upgrade will be completed by the end of 2015, operation at the proposed 3220 MW rating will not be possible until the Celilo-NOB transmission line upgrade work is completed which may be as late as November 2017. 3.0 Plan of Service The following Plan-of-Service (POS) will be implemented to improve reliability and facilitate uprating the PDCI to 3220 MW north to south: Celilo Converters 1 and 2 Replace all AC and DC equipment, controls and auxiliaries to support a potential 3820 MW rating PDCI Upgrade Project Coordination Report 3 Celilo Converters 3 and 4 Convert to stand alone operation in October 2014 Place in cold standby in January 2016 then retire and salvage in 2017 Celilo-NOB Transmission Line Replace insulators and vibration dampers, shunt compression fittings, upgrade access roads and install failure containment dead-end structures by November 2017 NOB-Sylmar Transmission Line No changes planned Sylmar Converters Modify controls and communications to support 3220 MW PDCI upgrade PDCI Upgrade Project Coordination Report 4 Pacific DC Intertie – One-Line Diagram 2013 Big Eddy 500 East Celilo Sylmar NOB West Bay 10 Pole 4 Line 2 Bay 8 Bus 1 C2 M Bay E5 500 kv AC Bay 7 Bus 2 M C2 Bay E6 C4 M Bay 6 Line 1 LADWP 230 kv Bank 5 Bank G Bank E Bank F SCE 220 kv M Sect 4 Bay E9 Line 4 NC C1 Bay E10 M Sect 3 Bank 2 C1 230 kv AC Sect 2 C3 M Line 3 Pole 3 Sect 1 Big Eddy 230 M Metering Point Pacific DC Intertie – One-Line Diagram 2016 Big Eddy 500 East Celilo Sylmar NOB West Bay 10 Pole 4 Line 2 C2 M Bay 8 Bay E5 500 kv AC Bay 7 M Future C2 Bay E6 M Bay 6 Line 1 LADWP 230 kv Bank 5 SCE 220 kv Bay E9 Sect 4 NC C1 Bay E10 M Sect 3 C1 Bank 2 Sect 2 Sect 1 Big Eddy 230 PDCI Upgrade Project Coordination Report Pole 3 M Metering Point 5 4.0 Project Coordination Review Objectives This section of the report provides responses to each of the Project Coordination Review Objectives. 4.1 Undertake Integrated Project Evaluation “Take multiple project needs and plans into account, including identified utilities’ and non-utilities’ future needs, environmental and other stakeholder interests. The findings of the TEPPC, SPG, or other analyses reports may be used to satisfy these requirements; Identify transmission physical and operational constraints resulting from the project or that are removed by the project; Look beyond specific end points of the sponsors’ project to identify broader regional and sub-regional needs or opportunities;” The deteriorating reliability of aging Celilo terminal equipment and controls has caused numerous outages and capacity constraints on the PDCI over the last 10 years. This project has been driven primarily by the need to remedy this poor performance and assure long term reliability. The reduction of operating constraints plus the increased rating provided by this project will increase the available PDCI capacity. The following excerpt from the WECC 10-Year Regional Transmission Plan dated September 22, 2011 suggests region wide benefits may result from PDCI capacity upgrade: “The utilization of and congestion on the Pacific DC Intertie (Path 65) and California-Oregon Intertie (Path 66) continue to increase under most conditions analyzed in support of the Plan. WECC recommends consideration by decisionmakers for transmission upgrades or other mitigating measures that relieve congestion on Paths 65 and 66.” Production cost studies performed using the Gridview program for various Pacific NW hydro runoff scenarios found that WECC-wide variable operating costs could be reduced by $5M to $10M in high hydro scenarios for the PDCI upgrade to 3800 MW. In all scenarios studied, the upgrade to just 3220 MW produced approximately half of the benefits produced by the full upgrade to 3800 MW. PDCI Upgrade Project Coordination Report 6 The available PDCI capacity from Big Eddy to NOB is fully subscribed and there are over 4800 MW of transmission service requests from Big Eddy to NOB in the BPA long term firm transmission service request queue. However, the Southern Owners have not been able to develop sufficient internal benefits for undertaking the higher cost upgrades beyond 3220 MW at this time. The broad PCRG forum will provide an opportunity for other interested parties seeking additional PDCI capacity to consider providing support for AC and DC upgrades to enable the PDCI to operate beyond 3220 MW. However, recent California ISO studies have indicated that flows from the northwest to California can be expected to decrease in the future as a result of California enacting AB32 which encourages the development of in-state renewable generation to meet a 33% RPS and imposes penalties on carbon based resources. As a result, the California ISO concluded that it would not be economic to increase the capability of the Pacific DC Intertie. Given the uncertainty of the future value of a major PDCI capacity increase, the proposed 120 MW capacity increase, available at a small incremental cost above the cost of maintaining the existing rating, is a sound investment and preserves the opportunity for a future increase should the benefits become more certain. 4.2 Conduct Coordination and Outreach “Cooperate with Project Coordination Review Group members in determining the benefits and impacts due to the project; Coordinate project plans with and seek input from all interested members, TEPPC, Subregional Planning Groups, power pools, and region-wide planning group(s); and other stakeholders including utilities, independent power producers, environmental and land use groups, and regulators;” ColumbiaGrid agreed, at BPA’s request, to be the host forum for the Project Coordination Review. On February 6, 2013, ColumbiaGrid notified the PCC, TSS and TEPPC that BPA had requested ColumbiaGrid to initiate and facilitate the WECC Project Coordination Review Process for the PDCI Upgrade Project. Interested parties were invited to submit a participation form if interested in PCRG participation. The list of those who expressed an interest in participation is enclosed. PDCI Upgrade Project Coordination Report 7 The first meeting of the PRCG was held April 2nd at the ColumbiaGrid office in Portland. The meeting attendance list is enclosed, and the meeting presentation materials can be accessed at: http://www.columbiagrid.org/event-details.cfm?EventID=897 A second meeting of the PCRG was held on June 5 at the ColumbiaGrid office. The focus of the meeting was to review and receive comments on this draft report. PCRG Response List 4.3 Describe Generation Resources and Related Policy Initiatives “Review how the project improves efficient use of, or impacts existing and planned resources of the region Address impacts of project for transmission congestion mitigation, Describe how the project addresses specific energy policy initiatives;” The reduced operating constraints coupled with the proposed rating increase will provide increased opportunities to market surplus Northwest (NW) power to California.. It will help mitigate the increasing problem of NW generation oversupply during high wind and high hydro conditions in the NW. It will also provide more reliable performance for south to north flows assuring NW access to available generation resources in California to meet high winter peak load. The simpler operating configuration and the modern control and communications systems will facilitate the possibility of providing dynamic scheduling between the NW and California. While there are many technical and institutional issues to resolve before this can be made available, dynamic scheduling could reduce wind generation regulating burden on NW generation and provide other possible variable generation management benefits for both regions. PDCI Upgrade Project Coordination Report 8 4.4 Consider Reasonable Alternatives to the Project “Review the possibility of using the existing system, upgrades or reasonable alternatives to the project to meet the need (including non‐transmission alternatives where appropriate); Address the efficient use of transmission corridors, take rights‐of‐ways, new projects, optimal line voltage, upgrades, etc. into account; Specify how the evaluation of the project has taken into account costs and benefits of the project compared with reasonable alternatives; Describe potentially parallel or competing projects and consolidate projects where practicable.” This project proposes to upgrade an existing transmission path and will make more efficient use of the 844 mile long Celilo-Sylmar transmission line by increasing the capacity of the terminal equipment and Celilo-NOB line section. The only alternative considered was the in-kind, piecemeal replacement of individual Celilo equipment and systems as they reached end of life which would have eliminated possibility of a rating increase. The present value cost of this alternative was more than the complete Celilo converter replacement and upgrade. There are no known competing or parallel projects at this time. 5.0 Summary The Project Coordination Review Process has found that the proposed Plan of Service for the PDCI upgrade to 3220 MW for north to south transfers satisfies the WECC Project Coordination Review Objectives. The project will resolve the deteriorating reliability of the Celilo Converter Station and provide an incremental capacity increase that will partially meet demand for additional PDCI north to south capacity. It will preserve options for future upgrades that would maximize the utilization of the existing PDCI transmission corridor. PDCI Upgrade Project Coordination Report 9
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