ADVANCED TRANSMISSION TECHNOLOGIES

The Future of American Electricity Policy AcademySeptember 22, 2016

Council of State Governments

Evan Wilcox, BOLD Transmission LLC President

American Electric Power

erwilcox@aep.com

+1.614.933.2204

Utility Transformation

AEP is transitioning to become the next premium utility.

We are focused on providing our customers with much more zero and low CO2 emission

generated energy including wind and solar and more efficient energy resources.

We are also focused on improving reliability/resiliency through deployment of advanced

technologies throughout our transmission and distribution grids, as well as offering our

customers customized energy solutions to improve their efficient use of energy.

This transformation has already begun as shown by AEP operating company integrated

resources plan filings adding 3108 MW of solar, 6300 MW of wind, and 3400 MW natural

gas through 2033, and energy storage.

Reference: DOC 1.

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Supporting documents in the TOOLKIT handout are indexed by number at the end of these slides. Please contact Paul Loeffelman

(phloeffelman@aep.com) for copies.

New Technology

AEP has pioneered or adapted generation, transmission, and distribution technology

innovations to cost-effectively increase reliability, efficiency, and environmental performance

for its customers.

Transmission technologies are being focused on grid flexibility, data acquisition and analytics,

improving system performance and efficiency, and maximizing use of right-of-way.

Policymakers may be interested in the report AEP and 10 other international electricity

companies wrote to share their technology and public policy experiences for 50 low and zero

carbon emitting energy technologies that could help country signatories to the Paris

Agreement meet their CO2 reduction pledges, and achieve other public policy goals.

Together the 11 companies annually produce and deliver 33% of the world’s electricity, 60%

being carbon free.

Reference: DOC 2.

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Supporting documents in the TOOLKIT handout are indexed by number at the end of these slides. Please contact Paul Loeffelman

(phloeffelman@aep.com) for copies.

Example Technology: Asset Health Center

Purpose of the Asset Health Center (AHC)

Prevent failures

Optimize maintenance effectiveness

Support asset renewal prioritization

Aging assets need increasing attention

33% of transformers > 50yrs; 18% > 60yrs old

Aging assets drive increasing outages, cost

Analytics platform

Algorithms evaluate condition & trends

Develop risk of failure, condition severity

Monitors on major substation equipment

Standard on new EHV equipment

Retrofit EHV transformers, circuit breakers

Lower voltage equipment to follow

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Example Technology: BOLD™

Breakthrough Overhead Line Design

The Breakthrough Overhead Line Design (BOLDTM) is a new transmission line design that

maximizes capacity and efficiency while minimizing environmental impacts.

AEP is deploying the BOLD technology within the 11 states of our traditional service

territory, and now working with domestic and international utilities for use on future projects.

BOLDTM can help states achieve many of their public policy goals, such as economic growth,

decreasing carbon emissions, adding more clean energy generation, increasing grid

reliability and resiliency, etc.

Each state has many miles of high-voltage lines that are at least 50-75 years old. BOLD is well

suited to replace and upgrade these aging circuits and maximize use of right-of-way while

limiting impacts to the environment.

Reference: DOCs 3, 4, 5.

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Supporting documents in the TOOLKIT handout are indexed by number at the end of these slides. Please contact Paul Loeffelman

(phloeffelman@aep.com) for copies.

Comparison of

BOLD vs.

Conventional Design Benefits

BOLD can be used for new or

replacement transmission

circuits up to 500 kV.

BOLD is a cost-effective design,

and results in a net savings when

benefits are considered.

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BOLD vs. Conventional Modern DesignsBENEFITS BOLD 345 kV BOLD 230 kV

Increased Capacity* 10-60% 15-75%

Lower Tower Height (25-35%) (20-30%)

Lower Magnetic Field Levels (45-50%) (45-50%)

Lower Energy Losses* Up to (33%) Up to (15%)

*Comparisons dependent on conductor selection.

• Costs for BOLD differ depending on design standards, but current

estimates put BOLD on par with conventional designs before

considering any benefits.

• BOLD is up to 33% less expensive than conventional on a cost per

MW basis. This also means fewer lines are required to achieve the

same level of capacity.

• Savings associated with reduced line losses further offset up-front

material cost.

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Public Policy Support

State legislators can help drive the modernization of their grids. KS Rep. Tom Sloan

shared ideas on how to enable advanced technologies in a recent Council of State

Governments eCademy Webcast. Building the Grid of the Future: How Legislators Can

Bring Advanced Transmission Technologies to Their States.

State legislators, utility regulators, regional planning organizations, and other

policymakers are interested in new advanced technologies like BOLDTM being quickly

deployed to benefit citizens and businesses. But project developers can be reluctant to

propose these new technologies if they believe that policymakers will favor older, more

familiar technologies.

Policymakers can reassure project developers that their new technologies will be fairly

compared through development of supportive policies in the form of legislation,

resolutions, regulations and other expressions of encouragement.

Reference: DOC 5 (especially slides 13, 14 and the Appendix).

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Supporting documents in the TOOLKIT handout are indexed by number at the end of these slides. Please contact Paul Loeffelman

(phloeffelman@aep.com) for copies.

Encourage Advanced Transmission Technology

Deployment Through Policymaker Associations & State

Policies

There are a few regional and national policymaker association resolutions and policies

that have supported deployment of new transmission technologies like BOLD:.

Policymaker Resolutions: NARUC, CSG Southern Legislative Conference, CSG Midwest

Legislative Conference, CSG West,

Additionally, only a few states (Arkansas, Kansas, and New York are examples) have

established policies that encourage the deployment of these types of new

technologies.

Additional statehouse-level policies can help to further accelerate this technology

deployment, extending the benefits to residents of other states.

Reference: DOCs 5, 6, 7.

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Supporting documents in the TOOLKIT handout are indexed by number at the end of these slides. Please contact Paul Loeffelman

(phloeffelman@aep.com) for copies.

Q&A – Thank You

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Evan R. Wilcox, PE

President – BOLD Transmission, LLC

erwilcox@aep.com

+1.614.933.2204

Document Number Index

1. PowerPoint. The Next Generation Energy Company: Transforming to Enhance the Customer Experience. May 5, 2016 Presentation by Robert P. Powers, Executive Vice President and Chief Operating Officer at the United States Energy Association Public Policy Forum, Washington D.C.

2. Report Excerpt. Powering Innovation for a Sustainable Future: An Electric Industry’s Perspective. Prepared by members of the Global Sustainable Electricity Partnership. Published 2015. Full report available at http://www.globalelectricity.org/upload/File/final_powering_innovation_for_website_and_usbs_2.pdf

3. One page. Advanced Electric Transmission Technology Fact Sheet. September 16, 2016.

4. Article. AEP’s BOLD Response to New Industry Challenges. Authored by Richard Gutman and Meihuan Zhu Fulk. Published October 26, 2015 in Transmission and Distribution World.

5. PowerPoint. August 16, 2016 Council of State Governments eCademy Webcast. Building the Grid of the Future: How Legislators Can Bring Advanced Transmission Technologies to Their States. Co-presented by Kansas Representative Tom Sloan and AEP/BOLD’s Evan Wilcox. Slides 13, 14 and Appendix from August 16, 2016 Council of State Governments eCademy Webcast PowerPoint contain citations to example policies from Arkansas, Kansas, New York, CSG-South, CSG-Midwest, NARUC.

6. NY PSC Order Excerpt. December 17, 2015 Order Finding Transmission Needs Driven By Public Policy Requirements. Supporting pages for Slide 14 citation to list of public policies, and evaluation criteria for transmission solutions in Document 5, CSG eCademy PowerPoint.

7. Arkansas Resolution. Interim Resolution 2015-004 Supporting the Deployment of Advanced, Innovative Electric Transmission Technology. Adopted May 12, 2016 by the Joint Interim Committee on Energy.

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Supporting documents in the TOOLKIT handout are indexed by number at the end of these slides. Please contact Paul Loeffelman

(phloeffelman@aep.com) for copies.