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PROJECT OVERVIEW
TransCanada is proposing to construct two 500 kilovolt (kV) high-voltage direct current (HVDC) transmission projects (Zephyr and Chinook); each project would have a capacity of 3,000 megawatts (MW). The Zephyr project would originate in southeast Wyoming, while the Chinook project would originate in south central Montana. Both projects would terminate in the Eldorado Valley south of Las Vegas.
The Zephyr and Chinook projects would enable over 6,000 MW of energy development in the western U.S., most of which is expected to be wind generation. The proposed projects would transport significant amounts of wind-generated electricity from the high-quality wind resources in Wyoming and Montana to markets in the U.S. Southwest, including California, Nevada and Arizona. The projects would promote U.S. national and state policy goals to facilitate construction of new renewable energy generation and would provide substantial benefits to the western power grid.
COMMERCIAL AND REGULATORY
On February 19, 2009, the Federal Energy Regulatory Commission (FERC) issued an order granting Chinook and Zephyr negotiated rate authority, allowing the projects to sell transmission rights at negotiated rates. Since then, TransCanada has been developing a ground-breaking precedent agreement to be used in the open seasons. The precedent agreement will reflect a commercial construct that addresses the unique challenges of transporting renewable power over long-distances on a merchant transmission line.
During four years of initial development, Zephyr and Chinook have engaged in extensive discussions with numerous prospective customers to establish commercial support from strong counterparties. Throughout this process, TransCanada identified and entered into confidentiality agreements with more than 50 parties, mostly developers of wind energy projects. These discussions signal a strong commercial interest in the projects; generation developers in resource-rich Wyoming and Montana are interested in a new transmission project that could link their proposed projects to California and U.S. Southwest markets that will require access to new renewable generation resources.
OPEN SEASONS AND BIDDERS’ CONFERENCE
TransCanada kicked off its Zephyr and Chinook open seasons on October 13, 2009. Bidder conferences were held in Las Vegas, Nevada on October 14 (Zephyr) and October 15 (Chinook). Results from the open seasons will be available in the first quarter of 2010.
STAKEHOLDER ENGAGEMENT
TransCanada recognizes the importance and value of consulting with stakeholders about our proposed activities and projects. TransCanada is committed to ensuring all interested and potentially affected stakeholders have an opportunity to learn about these proposed projects and provide input to the project’s development teams. We have been consulting with elected officials and other stakeholders for some time about the proposed Zephyr and Chinook projects and will continue to do so throughout the development, construction, and operation of these proposed facilities.
In keeping with TransCanada’s best practices in siting linear infrastructure, we will endeavor to select routes which:
- Parallel existing linear infrastructure where possible;
- Avoid or minimize disturbances to sensitive environmental areas; and
- Minimize impacts to landowners.
Upon the successful completion of the open seasons, TransCanada will begin the dialogue with stakeholders and will undertake an extensive consultation program with stakeholders along the proposed routes.
WESTERN ELECTRICITY COORDINATING COUNCIL (WECC) REGIONAL PLANNING AND PATH RATING
On April 22, 2009 TransCanada held a WECC Regional Planning meeting for each of the Projects in Las Vegas. Since the meeting, the Project teams have met and discussed the configuration of the Projects with many stakeholders.
On September 15, 2009, Zephyr and Chinook achieved important milestones when they submitted their respective WECC Regional Planning Project Reports to the WECC’s Planning Coordination Committee, Technical Studies Subcommittee and Project Review Groups for approval. With these submissions, TransCanada has now been granted WECC Path Rating Phase 1 status.
STATUS AND TIMELINES
2009
- Regional planning project review
- Open Season
2010-2012
- Engineering and design
- Prepare and file various environmental and other major permit applications
- Ongoing communications/consultation activities with stakeholders
- Public hearing as required
- Regulatory review, approval, and permitting
2012
- Begin construction after receiving regulatory approvals
- Ongoing communication/consultation with stakeholders throughout construction process
2015
- Complete construction
- Ongoing community relations activities after operations begin
NEWS RELEASES
CONTACTS
John Dunn
Zephyr & Chinook Project Manager
Director, Power Transmission
403.920.5566
Project Email:
chinook@transcanada.com
zephyr@transcanada.com
Media inquiries
1.800.608.7859
Mailing address
TransCanada
Attn: Zephyr Chinook Project
P.O. Box 1000
450 – 1st Street SW
Calgary, Alberta
T2P 5H1
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