. Juan de Fuca Cable

Safe Harbor Statement Included in this document is certain information which is “forward looking information” as defined by the Private Securities Litigation Reform Act of Examples include our expectations, beliefs, plans, goals, objectives and future financial and other assumptions. This information, by its nature, involves estimates, projections, forecasts and uncertainties and actual results or outcomes may differ substantially from those expressed. Many factors that are difficult to predict, involve uncertainties that may materially affect actual results, are beyond our ability to control, and may influence our business and its outcomes. These factors include, without limitation, the risks of operating a deregulated business in a formerly regulated industry that is early in the process of becoming deregulated, weather conditions and fluctuations in energy-related commodities prices.

International Interconnection  550 MW HCDC Light ®  ± 150 kV Bi-directional  51 km Total Length 36 km Undersea Project Description  Connecting Radial Ends of Two Systems BCTC and BPA

International Regional Benefits

Project Status 2006Certificate of Public Convenience and Necessity National Energy Board of Canada 2006Market Authority US Federal Energy Regulatory Commission (FERC) 2006FERC Order/ Market Authority 2008Presidential Permit – Full NEPA/ EIS US Department of Energy 2009Interconnection and Facilities Studies Completed 2010Additional Flow Modeling Studies and System Benefit Studies 2011Phase 2 – Path Rating - Western Electricity Coordination Council 2011 est.Commencement of Construction 2013 est.Commercial Operation

HVDC – Two Types Technology HVDC ‘Classic’ Long Distance Transmission  Bulk Power  Minimal Line Losses HVDC Light ® Regional Applications  Offshore and Remote Sites  Distant Weak Connections  ‘Ride Through’ Capability  Seams Issues Technical Attributes  VARs – Versatile Reactive Power  Black Start Capability Smart Grid - Friendly  Fast - Responsive - Controllable  Suited for Automated Use

30% Increased N/S Capacity West of Cascades Ring-bus Puget Sound Georgia Basin Congestion Relief Blaine Intertie Cross Cascades By-pass to California Market Security Benefits Strategic Benefits Business Case

‘Renewables Firming Renewables’ Geographic Rationale Business Case ‘R 2 R’

Business Case Marketing – Two Pronged Approach: Regulated Customers  Independent Power Producers (IPPs)  Electricity Traders Firm and Non-firm Transactions Negotiated Bi-lateral Contracts Revenue Sharing Agreements Marketing – Two Pronged Approach Reliability and Capacity Benefits Ancillary Services Firm Transmission Scheduling Rights System Benefits – Bonneville Power Administration – BC Hydro  Wholesale Transmission Providers Unregulated Customers

Cost Recovery for Regulated Customers Cost Recovery Business Case

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