Overview Consumer-Owned Utility Wind Energy Integration Cost-Share Program

1. OverviewConsumer-Owned UtilityWind Energy Integration Cost-Share Program December 6, 2007

2. Webinar Agenda 11:00 – 11:10 Introductions, Randy Manion, Western 11:10– 11:30 Overview of Western / NREL Wind Grid Integration Cost-Share Program, Randy Manion, Western 11:30 – 12:30 U.S. DOE Wind Program -DOE Systems Integration Program, Brad Nickell, U.S. DOE -NREL Systems Integration Activities, Brian Parsons, NREL 12:30 – 1:00 Wind Grid Integration Case Study, Brian Parsons, NREL 1:00 – 1:30 Overview of Wind and Hydro Feasibility Study, EPAct 2005, Section 2606, Michael Radecki, Western 1:30 – 2:00 Wind Grid Integration Application Process, Brian Parsons, NREL 2:00 – 2:30 Open Questions & Comments, All 2:00 Wrap-up, Randy Manion, Western

3. Cost-Share Program Sponsors Western Area Power Administration U.S. Department of Energy – Wind Program National Renewable Energy Laboratory

4. Purpose of Cost-Share Program Identify consumer-owned utilities highly motivated to conduct a wind integration study Financially assist consumer-owned utilities with the cost associated with conducting a wind integration study Assist consumer-owned utilities with questions posed by wind power’s inherent characteristics of variability and uncertainty Establish a new group of consumer-owned utilities that can speak on the subject of wind integration at various events such as UWIG, AWEA, APPA and NRECA. Advance the use of wind energy in Western’s service area.

5. Cost-Share Program Elements Participate in December 6, 2007 webinar Provide an overview of the Wind Integration Study Cost-Share Program; and establish a common understanding of the expectations associated with cost-sharing a wind integration study Guide consumer-owned utilities interested in applying for cost-share in the development of a comprehensive wind energy integration analysis proposal that demonstrates how they will lead the study work, including identification of key internal staff and/or consultants that will conduct the analysis.

6. Cost-Share Program Elements Webinar describing opportunity Dec. 6 Limited RFP issued by NREL Feb. 1 Proposal due to NREL Mar. 1 Awards Apr. 1 Study duration 12 months

7. Cost-Share Application Inclusions Introduction Description of project objectives Description of prior pertinent studies conducted Description of baseline conditions Description of projected outcomes Description of study tasks Project manager information Project team information Description of matching funds Milestones and targets

8. Cost-Share Proposal Checklist Has a business need been established? Are project goals and objectives identified? Are major deliverables described? Are major milestones described? Are resources identified? Is the project manager and team identified? Are key project stakeholders / participants identified? Are major roles and responsibilities described? Are letters of support included from stakeholders / participants? Is the project scope and statement of work clear? Are critical success factors identified? Does the scope and statement of work clearly indicate what is included and excluded in the project?

9. Cost-Share Proposal Weighting Factors Degree of cost share – 30% weighting factor Multiple consumer-owned utility participation, size of wind project, Balancing Area participation – 30% weighting factor Experience of project study team, demonstrated degree of appropriate utility staff engagement – 25% weighting factor Small and medium sized utility participation, Native American involvement – 15% weighting factor

10. More information Utility Wind Integration Group: http://www.uwig.org/ UWIG Operating Impact Studies: http://www.uwig.org/operatingimpacts.html UGP Wind/Hydro Integration Feasibility Study: http://www.wapa.gov/UGP/PowerMarketing/WindHydro/Default.htm Brian Parsons, NREL, brian_parsons@nrel.gov Phone - 303-384-6958 Randy Manion, Western, manion@wapa.gov Phone:  720-962-7423