Central California Clean Energy Transmission Project PCC Meeting Vancouver, BC October 24, 2007

2 Alternatives Considered Alt-1: Build a Midway – E2 500kV DCTL (Recommended) Alt-2: Build a Midway – E2 500kV SCTL Alt-3: Build a Midway – E2 765kV SCTL Alt-4: Build a Midway – Gregg 500kV SCTL

3 Alternative Considered but Rejected Build a 2nd Gates – Midway 500kV SCTL and a new Gates – Gregg 230kV DCTL. This alternative is not recommended due to the following reasons: – This alternative would require numerous crossing of the existing 500kV and 230kV lines that would therefore have higher probability of multiple 500kV line outages. – The Gates – Gregg 230kV DCTL would traverse developed farm lands in the San Joaquin Valley. – It would only provide about 500 MW of increased south-to-north transfer capability over Path 15. This is less than half of the transfer capability expected from the other potential alternatives.

4 Preliminary Plan of Service Build a 500 kV Double Circuit Tower Line with two 2300 kcmil AAL conductors (bundled), Build a new 500 kV Substation (E2) with two 500/230 kV 1,120 MVA transformer banks, Loop the Helms – Gregg #1 and #2 230 kV lines into the E2 Substation, Build 500 kV line terminations at Midway and E2, and Install additional voltage supports in the Fresno area. The amount and location of the voltage support will be evaluated in a separate voltage stability study. Expected Operation Date: 2Q – 3Q/2013

5 Potential Routes C3ET Project – East Route To Southern California Edison Company Pacific Gas & Electric Company Gregg Panoche Helms PSP Gates San Luis Los Banos Moss Landing Morro Bay Diablo Canyon Midway Bellota Tesla Kings River McCall PATH 15 PATH 26 New Sub E2 C3ET Project – West Route Arco 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 West Route: ~180 miles Crosses farm lands and urban areas Lower probability of multiple 500 kV line outages –Crosses Four existing 500 kV lines

6 Proposed Midway-E2 500kV line Kerckhoff-Sanger 115kV lines Helms-Gregg 230kV lines Helms PSP Gregg & Herndon E2 Sub McCall Sanger E1 Sub E2 Substation Location

7 Potential Benefits Improve transmission reliability for Yosemite and Fresno Areas. Increase Fresno and Yosemite area import capability to serve local customers. Reduced Local Capacity Requirements in Fresno Area Improve utilization of the existing capability at Helms PSP. Help mitigate potential minimum load and over-generation problems during off-peak conditions. Increase Path 15 transfer capability to avoid potential congestion and increase access to larger population of renewable resources in southern California. Reduce green house gas based on displacement of thermal generation in PG&E area Eliminate the existing Helms Transfer Trip RAS needed for supporting Helms pumping operation.

8 Preliminary Schedule

9 Questions?