Energy Gateway Gateway West Project Gateway South Project Technical Study Leads: Idaho Power (Gateway West) and PacifiCorp (Gateway South) WECC Phase 2 Study Group Kick-Off Meeting May 22, 2009 Salt Lake City, Utah

Standards of Conduct Non-Disclosure Statement The following procedures have been implemented to provide Standards of Conduct Safeguards: Ten day advance notice of public meeting All eligible customers invited Telephone participation provided Handouts posted on OASIS prior to meeting Meeting notes will be taken and posted One eligible customer must be in attendance Meetings no more than twice per month

Our agenda for today… Welcome Introductions EGW Phase 2 Study Process – PCC Presentation (April 2009) Facility Staging Study Area Path Interactions, Study Participants & Issues Study Area: “Straw-man” Study Plan Study Schedule Q&A

WECC Phase 2 Study Group Kick-Off Meeting Welcome Introductions

WECC Phase 2 Study Group Kick-Off Meeting Energy Gateway Phase 2 Study Process - PCC Presentation (April 2009)

Gateway West MSTI SWIP

Gateway South

Phase 1 Study Effort Studies were performed and reported by path Five for Gateway West Three for Gateway South Reviewing entities interested in local impacts 8

Leverage Phase 1 Experience Perform and review studies within a local area Attach appropriate local area studies for Phase 2 reports

Phase 2 Method Hold Energy Gateway review meetings Gateway West Project Review Study Group Gateway South Project Review Study Group Form five sub-area study groups

Gateway West Study Areas MSTI Windstar Study Area Southern Idaho Study Area Bridger Study Area SWIP

Gateway South Study Areas Aeolus South Study Area Mona South Study Area

Process Flow Diagram

Southern Idaho Area Study Example Phase 2 Report Appendix C Windstar Area Study Gateway West Phase 2 Report Appendix B Bridger Area Study Appendix A Southern Idaho Area Study

Energy Gateway Project Facility Staging

EGW Facility Staging Due to the scope and nature of the EGW project, not all facilities will be constructed during the same period. As such, facilities will be installed following a segmented approach – focusing on one leg of the project, then another leg, etc. For example: Populus – Terminal 345 kV #1 & #2 will be in-service 12/2010 (This project was granted Phase 3 status in 11/2008) Pinto 345 kV series capacitor (on PNT-HNT 345 kV line) will be in-service 5/2010 St. George (Utah) SVC will be in-Service in 5/2011

EGW Facility Staging Rather than initiate technical studies for each transmission segment, it was decided to group transmission segments into two logical project stages that would be evaluated by WECC Phase 2 study group (or sub groups). Incremental transmission limitations for transmission segments that are added between stages, will be addressed via OTC studies. [This same process was followed by BPA and AVISTA for the West of Hatwai Expansion project.]

EGW Facilities – Stage 1 (1500 MW)

Gateway West – Stage 1 Facilities Hemingway - Bridger

Gateway West – Stage 1 Facilities Bridger - Windstar The current schedule calls for all Gateway West – Stage 1 facilities will be in-service by 12/2016.

Gateway South – Stage 1 Facilities Aeolus – Mona – So. Nevada The current schedule calls for all Gateway South – Stage 1 facilities will be in-service by 12/2017.

EGW Facilities – Stage 2 (Full-Build, 3000 MW)

Gateway West – Stage 2 Facilities Hemingway - Bridger

Gateway West – Stage 2 Facilities Bridger - Windstar The current schedule calls for all Gateway West – Stage 2 facilities will be in-service by 12/2017.

Gateway South – Stage 2 Facilities Aeolus – Mona – So. Nevada The current schedule calls for all Gateway South – Stage 2 facilities will be in-service by 12/2019.

WECC Phase 2 Study Group Kick-Off Meeting Study Area Path Interactions, Study Participants & Study Issues

Study Area Participation Charts for each Study Areas, which indicate Area Path Interactions, (projected) Study Participants & a drawing of the facilities being evaluated, have been displayed in the meeting room. Please take time during one of the breaks to review the information and make necessary changes or modifications. These inputs will help us in move the Phase 2 study efforts forward.

Gateway West - So. Idaho Study Area Paths Analysis Midpoint West Borah West (Path 17) Simultaneous Interactions Idaho – Northwest (Path 14) Midpoint – Summer Lake (Path 75) Boardman - Hemingway Montana – Northwest (Path 8) Path C (Path 20) Montana – Idaho (Path 18) MSTI Project SWIP (Great Basin – North, ENTP) Idaho – Sierra (Path 16)

Gateway West – Bridger Study Area Path Analysis Bridger West (Path 19) Path C (Path 20) Aeolus West Simultaneous Interactions Aeolus South Path C (Path 20) Montana – Idaho (Path 18) Bonanza West (Path 33) Monument – Naughton (PAC Internal) RS/FH West (PAC Internal) Bridger West (Path 19) TOT 1A (Path 30) Bonanza West (33)

Gateway West – Windstar Study Area Path Analysis TOT 4A (Path 37) Simultaneous Interactions Montana Southeast (Path 80) TOT 4B (Path 38) TOT 3 (Path 36) Yellowtail South TOT 1A (Path 30)

Gateway West – Study Participants Basin Electric Power Cooperative Black Hills Cooperation Bonneville Power Administration, Transmission/Power Services Columbia Grid Deseret Generation & Transmission Edison Mission Energy Great Basin Transmission Group Idaho Power Company NorthWestern Energy NV Energy PacifiCorp Puget Sound Energy, Inc. TransCanada TransWest Express LLC Western Area Power Administration Western Grid Group Correspondents OPUC Avista Corp. NWPP Corporation Wyoming Public Service Commission EnTranTek LLC and Ridgeline Energy LLC Invernergy LLC

Gateway West – Study Issues Wyoming Issues Evaluate interaction between GW and TOT 3 (Wyoming – Colorado); additionally GW and DJ-LRS-Ault transmission lines. (Basin Electric) Evaluate the interaction between TOT 1A path and each component of the project. (WAPA) When are SSR Studies planned for? (WAPA) Parallel to Phase 2 process, PACE will perform SSR analysis for portions of the Western Interconnection that are effected by the EGW Project. Other Issues GW interaction with Bridger West (PAC) Interactions between Bridger West and Path C (PAC)

Gateway South – Aeolus South Study Area Path Analysis Aeolus South Simultaneous Interactions Aeolus West Bridger West (Path 19) TOT 1A (Path 30) Bonanza West (Path 30) IPP DC Line, 2400 MW (Path 27) Intermountain – Mona (Path 28) Intermountain – Gonder (Path 29) Pavant – Gonder (Path 32) TOT 2C (Path 35) COI (Path 66) PDCI (Path 65)

Gateway South – Mona South Study Area Path Analysis Mona South TOT 2C Simultaneous Interactions IPP DC Line, 2400 MW (Path 27) Intermountain – Mona (Path 28) Intermountain – Gonder (Path 29) Pavant – Gonder (Path 32) TOT 2C (Path 35) COI (Path 66) PDCI (Path 65) TOT 2A (Path 31) TOT 2B1/2B2 (Paths 78 & 79) Centennial Project (Path 81) SWIP

Gateway South – Study Participants Arizona Public Service Basin Electric Power Cooperative Black Hills Corporation Columbia Grid Deseret Generation & Transmission Idaho Power Company Los Angeles Department of Water & Power LS Power NorthWestern Energy NV Energy PacifiCorp Puget Sound Energy Southern California Edison Salt River Project TransWest Express LLC Tri-State Generation & Transmission Utah Association of Municipal Power Systems Western Area Power Administration Wasatch Wind

Gateway South – LADWP Study Issues Interactions between existing & proposed PST’s at Crystal TOT 2C path (+/- 600 MW and +2100/-1700 MW) interaction with other paths. Staging of TOT 2C facilities Each of the SPS schemes in the report will be further refined and added to the Project POS. Continue to evaluate simultaneous interactions among components within the GS Project. Short circuit analysis to quantify impacts on existing breakers in the southern Nevada/Eldorado Valley Simultaneous Interaction between each of the paths noted below and each component of the GS project, and the project as a whole at the projects max loading: Path 27 (IPPDC 2400 MW) Path 28 (Intermountain – Mona) Path 29 (Intermountain – Gonder)

Gateway South – Other Study Issues How will PacifiCorp determined if the Harry Allen – Mead 500 kV #2 line should be included in the GS plan-of-service. (TWE) Detailed analysis of the impacts of a new transmission line between Crystal and Mead and the Centennial Project will be evaluated during the Phase 2 studies. Is there a dependent relationship between the PacifiCorp and other project in WECC Phase 2? (TWE) Phase 1 studies demonstrated that Gateway South can achieve its ratings with or without the Great Basin North 500 kV line being constructed. Additional simultaneous analysis for other Western Interconnection paths will be performed during Phase 2 technical studies.  Evaluate interaction between GS and TOT 3 (Wyoming – Colorado); additionally GS and DJ-LRS-Ault transmission lines. (Basin Electric) (UPALCO-Carbon 138 kV line): TOT 1A should be monitored and interactions determined in the next phase of studies. (WAPA) When are SSR Studies planned for? (WAPA) Parallel to Phase 2 process, PACE will perform SSR analysis for portions of the Western Interconnection that are effected by the EGW Project.

WECC Phase 2 Study Group Kick-Off Meeting Study Area: “Straw-man” Study Plan

Study Area – “Straw-man” Study Plan Study Plan Format: Detail for Phase 1 Analysis 2015 HS base case Resource Assumptions (PAC IRP & OASIS Inputs) Project Configuration (Full-Build Option) Study Criteria List of Outages, etc. Place Holder for Phase 2 Studies Project Staging (1500 MW/3000 MW) Study Base Cases → See Next Slide Resource Assumptions Stage 1 – Updated IRP, Stage 2 – Extended IRP *Being Refined* Path Simultaneous Interactions Issues raised by Phase 2 Study participants Once approved, Study Plan will need to be tailored for each sub-Area

Energy Gateway Base Cases

WECC Phase 2 Study Group Kick-Off Meeting Study Schedule

Study Schedule IPC: West of Populus

Study Schedule PacifiCorp

WECC Phase 2 Study Group Kick-Off Meeting Q&A