Iberdrola Renewable’s Tule Wind Project January 13, 2009

Who is Iberdrola Renewables? Iberdrola — Spanish-owned Utility and Owner of Renewable Energy Assets, acquired Scottish Power (and PPM Energy) in April 2007 World’s Largest Owner/Operator of Renewable Energy; 2,400 MW of wind in the U.S., 8,000 megawatts (MW) worldwide We are good neighbors – industry leaders for setting the bar with environmental efforts and community outreach

Big Horn 200 MW Owned Klondike 24 MW Owned Klondike II 75 MW Owned Klondike III 221 MW Owned Klondike IIIa 76 MW Owned Stateline 300 MW PPA North American Wind Assets SW Wyoming 144 MW PPA Twin Buttes 75 MW Owned High Winds 162 MW PPA Shiloh 150 MW Owned Mountain View III 25 MW Owned Dillon 45 MW Owned MID-CONTINENT REGION MinnDakota 150 MW Owned Moraine, 51 MW Owned Trimont, 100 MW Owned Elk River 150 MW Owned WESTERN REGION Casselman 35 MW Owned Locust Ridge 26 MW Owned Maple Ridge II 45.4 MW Owned (91 MW Project) Maple Ridge 1a 16.5 MW Owned (33 MW Project ) Maple Ridge 1 99 MW Owned (198 MW Project) Bear Creek 6 MW Owned (24 MW Project) Jersey-Atlantic Wind 2 MW Owned (7.5 MW Project) NORTHEAST REGION Flying Cloud 44 MW Owned Updated October 15, 2008 Wind projects owned or controlled Colorado Green 81 MW Owned (162 MW Project) Winnebago 20 MW Owned Providence Heights 72 MW Owned Top of Iowa II, 80 MW Owned

Iberdrola Renewables: Committed to the Environment Released first ever company-wide Avian and Bat Protection Program Partnered with Bat Conservation International on groundbreaking research program at operating wind farm in Pennsylvania Active participant in creation of California Voluntary Siting Guidelines Member of U.S. Fish & Wildlife Wind Turbine Guideline Advisory Committee

Rotor converts wind energy into rotational shaft energy Drive train and generator in nacelle generate electricity at 575 volts Transformer at base of turbine steps up electricity to 34.5 kV Collector lines carry electricity to collector substation Collector substation steps up electricity to 69, 115, 230 or 500 kV, depending on transmission line Switching station delivers electricity to the grid Source: Green Power Oregon How Wind Power Works How Wind Energy Works

Typical Wind Turbine Design

Benefits of Wind Energy and the Tule Wind Project Domestic, clean source of energy Reduces smog and greenhouse gases Helps SDG&E generate renewable power locally Helps California meet RPS goals –20% by 2010 –33% by 2030 Brings local economic development to SD County

Economic Development Benefits Job creation for ~150 people likely employed during construction 10 permanent jobs created for operations and maintenance; prioritizing local hiring Indirect economic benefits: significant increase in local business during construction and continuing through operations –Iberdrola Renewables’ Big Horn wind farm (WA) brought more than $1 million in local revenue to Klickitat County during the 9-12 month period of construction –Iberdrola Renewables’ 221 MW Klondike wind farm (OR) purchased approximately $4 million in local construction materials, such as gravel and concrete, and created approximately $1 million of demand for local services, such as fuel, food and lodging

On Bureau of Land Management, State, and tribal lands, in McCain Valley off I-8, north of existing Kumeyaay wind farm Up to 200 MW Estimated online in late 2010 Less than 2% of project area will be the actual facilities footprint, allowing room for other multiple uses on site including hiking, camping, and off-road vehicle use SDG&E very interested in purchasing power to meet RPS requirements Tule Wind Project

Transmission Diagram 10

Project Location Map 11

Draft Visual Simulation: Boulevard 12 Three of the proposed turbines would be visible from this higher elevation viewing point southeast of I-8. The proposed turbines would not be visible from most locations within and around the town of Boulevard due to the area’s lower elevation and the varied terrain surrounding it.

13 Draft Visual Simulation: Lark Canyon OHV A view of the proposed turbines from the Lark Canyon OHV staging area.

14 Draft Visual Simulation: Carrizo Gorge A view of the proposed turbines looking west/southwest from the Carrizo Gorge Wilderness Area. Existing turbines from the Kumeyaay Wind Project are already visible in the background.

15 Draft Visual Simulation: Carrizo Gorge A view of the proposed turbines looking west from the Carrizo Gorge Wilderness Area.

16 Draft Visual Simulation: McCain Valley North A view of proposed turbines from the northern end of McCain Valley Road looking south/southeast.

Proposed Steel-Pole Concepts 17 Iberdrola Renewables is using important fire- safety design considerations for the transmission lines that include: Using steel, “weathering” poles (versus wood poles) Using longer insulators to support the wires Will not use switching devices with moving parts (fused cutouts, switches, reclosers) on the poles Designed for worst case conditions (the line will be no closer to the ground than 25 feet) To the greatest extent practical, self- supporting poles will be used at locations where the line changes direction rather than guy wires and anchors

On-site environmental and meteorological studies ongoing Modifications being made as study data comes in to determine layout with least environmental impact Submission of revised Plan of Development early 2009; first step in initiation of joint NEPA/CEQA review Project’s NEPA/CEQA review will include in-depth discussion of environmental impacts and proposed mitigation measures Outreach planned to community, local businesses, environmental, and recreational groups prior to kickoff of NEPA scoping process; opportunities for public input throughout the process Tule Project Plans-2009

Thank You! Ed Clark Director, Business Development Andy Linehan Permitting/Environmental Director