Central California Clean Energy Transmission Project TSS Meeting #146 Seattle, WA August 15-17, 2007

Approach to Transmission Development Encourage resources to connect to areas where transmission capacity is available Focus on multi-purpose projects Use existing R/W before developing new R/W Focus on implementing smaller transmission projects that can be placed in service quickly Develop larger transmission projects Maintain flexibility in developing transmission plans to deliver maximum benefits to customers in an environmentally responsible manner Develop a California Sub-regional Transmission Plan through regional and sub-regional collaboration

L L Possible Future Transmission Corridors in California Wind Geo Solar L -- Major Load Centers in California L

Central California Clean Energy Transmission Project Project Scope Construct ~ 140 - 180 miles of new 500 kV Double Circuit Tower Line from Midway to a new Substation east of Fresno on new R/W Project Objective: Facilitate efficient management of renewables to meet CA 20% RPS Goal Increase Path 15 transfer capability by ~1,250 MW Increase transfer of base load & as available renewable resources from S CA to N CA Increase utilization of the Helms PSP to enhance the value of off-peak generation Increase reliability to Yosemite/Fresno area Reduce Fresno Area LCR Expected Operation Date: Dec. 2012 Defers need for Gates-Gregg indefinitely Pacific Gas & Electric Company Bellota Tesla New Sub E2 Los Banos Gregg San Luis Helms PSP Moss Landing Kings River Panoche McCall PATH 15 Central California Clean Energy Transmission Project Gates Arco Midway Morro Bay Diablo Canyon PATH 26 To Southern California Edison Company

To Southern California Edison Company Potential Routes East Route: ~140 miles Runs along the foothills – less impacts on farm lands, avoid urban areas Potential use of SCE access roads Lower probability of multiple 500 kV line outages than West Route No 500 kV line crossing Pacific Gas & Electric Company Bellota Tesla New Sub E2 Los Banos Gregg San Luis Helms PSP Moss Landing Panoche Kings River McCall PATH 15 C3ET Project – East Route West Route: ~180 miles Crosses farm lands and urban areas Lower probability of multiple 500 kV line outages Crosses Four existing 500 kV lines C3ET Project – West Route Gates Arco Midway Morro Bay Diablo Canyon PATH 26 To Southern California Edison Company

Project Description Expected Operation Date - December 2012: Build a 500 kV double circuit tower line (about 140 – 180 miles in length) with two 2,300 kcmil AAL conductors (bundled), with both circuits strung. Build a new 500 kV Substation (E2) with one 500/230 kV 1,120 MVA transformer bank, Loop the Helms – Gregg #1 and #2 230 kV lines into the E2 Substation, Build two 500 kV line terminations each at Midway and E2 Install additional voltage supports in the Fresno area. The amount and location of the voltage support will be evaluated in a voltage stability study.

Project Implementation Plan Phase I: Prepare PEA pursuant to the CEQA and the CPUC permitting requirements. Perform the necessary engineering and design work required to prepare the PEA. Coordinate WECC Regional Planning and Path Rating Process with external interested parties. Phase II: File an application in December 2008 with the CPUC for a CPCN. Phase III: Assuming the CPUC grants a CPCN by December 2009, land acquisition and project construction would start immediately to achieve a December 2012 completion date.

Potential Future Expansion C3ET Project must be designed and sited to allow for rational, cost-effective future expansion of the 500 kV grid as required by future load growth and RPS procurement Expected Operation Date ~ 2020: Install a second 500/230 kV 1,120 MVA transformer bank at E2 Install additional voltage supports in the Fresno area. The amount and location of the voltage support will be evaluated in a voltage stability study. Other expansion possibilities: Potential expansion north of E2 to San Francisco Bay Area and Sacramental Valley Potential expansion south of Midway to Southern California and Desert SW

Possible Long-Term Transmission Expansion Bonneville Power Administrative (BPA) Projects north of Tesla - support based on Option CA2 (other options possible) Renewables in the northern portion of the PG&E service territory Renewables imported from the NW and Canada at proposed Raven Substation Load growth in Sacramento Valley and SF Bay Area Captain Jack Malin Path 66 Raven New Sub To NW and Canada 125 mi COTP Table Mt. Sierra Pacific (SPP) 140 mi Lake Tahoe Potential projects south of Tesla -support renewables in the southern portion of the PG&E service territory Renewables imported from the South Load growth in Fresno and SF Bay Area Elverta Tracy Bellota Tesla 40 mi 105 miles Raven Sub Helms Metcalf 60 mi Moss Landing Los Banos Gregg Path 15 Connection to Potential projects south of Midway - support renewables in the southern CA and Desert SW Load growth in S CA and seasonal exchange C3ET Project Also includes 4-230 kV lines terminated at Gates Gates Tehachapi Area Diablo Midway Path 26 Southern California Edison (SCE) Vincent

Questions?