May 2013 Tehachapi Renewable Transmission Project (TRTP)

 SCE is expanding and upgrading its transmission and distribution networks to:  Meet the region’s growing demand for electricity  Improve grid performance  Meet California’s ambitious renewable power goals  Renewable resources such as wind and solar are located far from the populated areas where customers can put that power to use  Building new or upgrading existing high- voltage transmission lines makes it possible to transport power from its generation source over long distances to where most Californians live and work DELIVERING MORE RENEWABLE POWER

3 THE PLAYING FIELD BUILDING INFRASTRUCTURE MEANS BALANCING COMPETING INTERESTS… SAFETY, RELIABILITY PUBLIC POLICY, RENEWABLES AFFORDABLE ENERGY VARIOUS INTERESTS

4 TEHACHAPI RENEWABLE TRANSMISSION PROJECT (TRTP) The nation’s largest transmission project devoted primarily to renewable energy Total project length: 250 circuit miles of infrastructure (spanning 173 miles) across 20 communities in 3 counties; nearly all in existing utility right-of-way corridor Overall project cost: $2.1 billion New capacity: Enough renewable energy capacity to power approximately 3 million homes (4,500 megawatts) CPUC approved the overhead project in 2009 with completion targeted for late 2015 TRTP Segments 1-3 (shown as green lines) were approved in March 2007 and are complete

5 TRTP: $2.1 billion project spanning 20 communities to import up to 4,500 MW of renewable power to the Southern California basin CURRENT STATE NOW2015 CPUC approves overhead construction after extensive engineering and environmental analysis Construction begins and Chino Hills portion later halted by CPUC 12 of 18 transmission structures complete in Chino Hills CPUC directs SCE to explore undergrounding Complete project to meet state renewable mandate CONSTRUCTION ON OTHER TRTP SEGMENTS CONTINUES

 Most effective route for transmitting 500 kilovolts to import up to 4,500 MW of renewable power over distance  Least environmental impact  Most cost-effective: extra $400m-$700m to underground  3 miles is less than 2% of overall project  $400m - $700m is approximately 25% - 33% of total project budget  Construction method  Overhead proven reliable over time  Underground of 500 kilovolt transmission is first in US 6 OVERHEAD IS THE BEST OPTION

7 OVERHEAD/UNDERGROUND COMPARISON Tehachapi (Chino Hills)OverheadUnderground Supports state’s renewable energy goalsYESYES – But potential schedule delays Environmentally sensitiveYES -75% complete -TRTP EIRs completed/approved NO -Two transition stations and extensive construction -Unknown artifacts underground Best use of financial resourcesYESNO -$400m-$700m additional costs -Paid by all CAISO ratepayers (SCE, SDG&E, PG&E) Safe construction methodYES FIRST IN US (500 kilovolt) Quick restoration time if outageYES -Easy to identify problem overhead -Hours/days to restore NO -Hard to identify problem underground -Weeks/months to restore Benefit to all ratepayersYESNO

 Assemblymember Steve Bradford  State Senator Alex Padilla  Board of Equalization Vice Chair Michelle Steel  County of Kern  Ventura County Econ. Dev. Agency  City of Whittier  City of Pico Rivera  American Assoc. of Blacks in Energy  CA Manufacturers & Technology Assoc.  Congress of CA Seniors  CA Asian Pacific Chamber of Commerce  Numerous other chambers of commerce throughout CA ORGANIZATIONS OPPOSING IMPACTS OF UNDERGROUND OPTION In Orange County…  Huntington Beach Chamber of Commerce  Fullerton Chamber of Commerce  Cypress Chamber of Commerce  Seal Beach Chamber of Commerce  Orange Chamber of Commerce  Placentia Chamber of Commerce  Orange County Black Chamber of Commerce  Orange County Hispanic Chamber of Commerce Partial list, to date, of individuals and organizations urging the CPUC to oppose the underground consideration:

 Potential cost impacts  Precedence for an undergrounding project like this  Bad public policy of a state agency reversing an earlier decision STATEWIDE ISSUE

QUESTIONS?