1. Order 2004 Sensitive 1 Transmission Project Sponsors Big Tent Meeting November 19, 2008 Portland, Oregon Welcome Darrell Gerrard - PacifiCorp

2. 2 Big Tent Meeting November 19, 2008 Embassy Suites Hotel – Portland, Oregon 9:00 a.m. – 12:00 noon Agenda 9:00Welcome – Darrell Gerrard Background from July 2008 Session Goals Supporting Coordination 9:15TCWG Work Plan- What has been accomplished since July 2008 – Ben Morris 9:30Individual Project Updates (By Project Sponsor) 11:30Next Steps – Darrell Gerrard 11:45Inputs and Commentary – Sponsor Panel Order 2004 Sensitive

3. 3 Goals Supporting Coordination Develop ideas to ensure robust proposals brought to sub-regional & regional engagement Avoid duplication of study work and facilities constructed Ensure efficient use of resources, siting, permitting, environmental Regional view of transmission requirements necessary long term NW Transmission Hub concept formulated Optimize current expansion plans from commercial as well as technical views Open and transparent FERC Order 890 compliant planning Improved certainty of project Phase 2 ratings expected via WECC process Order 2004 Sensitive

4. 4 Background Purpose: status update for several proposed projects significant to Northwest All projects currently in or will be in WECC Phase 1 Rating Process Began January 2008 with Transmission Coordinated Work Group (TCWG) Goal is submission of Phase 1 reports in Q4 Sponsors are reasonably on schedule Each project sponsor will be submitting an individual Project Phase 1 Rating report to WECC Expectations are that projects enter Phase 2 relatively close together in the fourth quarter of 2008 or Q1 2009 Order 2004 Sensitive

5. 5 WECC Phase 1 and Phase 2 Coordination Ben Morris - PG&E Consultant

6. 6 Coordination A number of project sponsors are planning construction in the Northwest in the 2010-2015 period and the study work is being coordinated. Their projects have the following characteristics:  Currently in (or soon to be in) WECC Phase 1 Rating process  Planning to submit their Comprehensive Progress Reports in 4Q, 2008 and 1Q, 2009  Agree to use a common study methodology Projects that meet such characteristics include:  Walla Walla-McNary (PacifiCorp)  Hemingway-Captain Jack (PacifiCorp)  West of McNary Project (BPA)  I-5 Corridor Reinforcement BPA)  Idaho-Northwest Project (Idaho Power and Others)  Southern Crossing Project (PGE)  Canada-Northwest-California (CNC) Project (PG&E and Others)  CNC Project - Devil’s Gap Interconnection (Avista)  Dry Creek-Coyote (Avista)  Northern Lights Project (TransCanada)  West Coast Cable (Sea Breeze) The project sponsors have formed the Transmission Coordination Work Group (TCWG). Order 2004 Sensitive

7. New Transmission Projects Being Planned in Coordination Planned Operation: 2010 – 2015 Legend: PG&E (AC or DC) PacifiCorp (500 or 230kV) PGE (500kV) Idaho Power (500kV) Avista Corp (230kV) BPA (500 kV) NorthernLights (DC) Sea Breeze WCC (DC) To SF Bay Area Selkirk Sub Spokane Area Sub and Converter Idaho Power Hemingway Boardman PacifiCorp Hemingway Capt. Jack PG&E, et. al CNC Project PGE Southern Crossing PG&E et. al CNC Project BPA West of McNary Generation Integration Project Midpoint Capt. Jack Hemingway Borah PacifiCorp/Idaho Gateway West PacifiCorp Walla McNary Big Eddy BPA I-5 Corridor Station X To Edmonton/Heartland Station Z NorthernLights DC NEO Station Sea Breeze WCC To SF Bay Area Order 2004 Sensitive 7

8. 8 Transmission Projects in Regional Planning and/or Phase 1 Planned Operation: 2010 – 2015 Sponsor/ Participants Project Name Online Date VoltageCapacityWECC Milestones * PacifiCorpWalla Walla to McNary2010Single 230kV AC400 MWRP Initiated – 11/2007 Ph 1 Initiated -- 10/2008 PacifiCorpHemingway to Capt. Jack (part of Gateway West) 2014Single 500kV AC1,500 MWRP Initiated – 11/2007 BPAWest of McNary Generation Integration Project 2012- 2013 Single 500kV AC and 500kV Sub/ Single 500kV AC 1,500 MW each RP Completed – 02/2008 Ph 1 Pending BPAI-5 Corridor Reinforcement Project 2015500kV Sub/Single 500kV AC 1,500 MWRP Completed – 03/2008 Ph 1 Pending Idaho Power and Others Hemingway-Boardman2013Single 500kV AC1,300 MWRP Completed – 05/2008 Ph 1 Initiated – 02/2008 PGESouthern Crossing2013- 2014 Single 500kV AC1,500 MWRP submitted -- 10/2008 Ph 1 submitted – 10/2008 PG&E and OthersCanada – Northwest - California (CNC) 2015Double 500kV AC and HV DC 3,000 MWRP Completed – 11/2008 Ph 1 Initiated – 10/2007 Avista CorpAvista Interconnection to CNC - Spokane Area Upgrades 2015500kV Sub and local 230kV upgrades 500 MWRP Submitted – 11/2007 Ph 1 Initiated – 11/2007 Avista CorpDry Creek -Coyote 230 kV 2015230 kV500 MWRP and Ph 1 Initiated in 01/08 TransCanadaNorthernLights2015+/- 500 kV DC2,000 MWRP Completed – 01/2008 Ph 1 Initiated – 01/2008 Sea BreezeWest Coast Cable (WCC)2015 +/- 600 kV DC1,600 MWPh 1 - Initiated – 12/2006 * RP = WECC Regional Planning Process Ph 1 = WECC Rating Process: Phase 1 Order 2004 Sensitive

9. 9 Transmission Coordination Work Group (TCWG) Group formed to  Establish consistent assumptions/methods for Project Sponsors  Provide feedback on the Project Sponsor study work  Explore opportunities for synergies among projects Activities  Develop consistent assumptions, study scenarios, base cases Identify and establish consistent assumptions for the analysis of Hubs  Review and comment on Project Sponsor study plans, assumptions, study results and Comprehensive Progress Report  Monthly meetings through study completion Met monthly since January 2008 (next meeting: December 9 conference call) Participation – Approximately 30 meeting attendees and more than 80 on the correspondence list  Representatives from Phase 1 projects  Other stakeholders with interest in providing feedback on technical studies  Other parties interested in the development of the projects Order 2004 Sensitive

10. System Parameters 2015 HS Regional Gen/Loads Projects coordinated within the TCWG are designed to access resources in BC, Alberta, Montana, the PNW and Northeastern CA/NV 10 RegionGen (MW) Demand (MW) Alberta94339535 BC115768341 PNW3181826305 Idaho49043771 Montana32521843 No. Ca2547928521 +4500 MW +1500 MW +3000 MW +3000 MW +2000 MW Order 2004 Sensitive

11. 11 Project Sponsor/TCWG Phase 1 Accomplishments Developed Study Plan Developed Study Assumptions  Identified the location and capacity of new incremental generation to be accessed with the proposed projects  Listed major paths to be monitored and their target flows  Identified the projects in the WECC Phase II Rating process to be modeled in the cases  Established set of critical contingencies to be studied Developed Base Cases:  Seasonal cases: 2015 Heavy Summer (North-South Flow) 2017 Heavy Winter (South-North Flow) 2011 Light Spring (East-West Flow) 2010 Light Autumn (East-West Flow)  Reviewed and adjusted Load and Generation balance as necessary Order 2004 Sensitive

12. 12 Project Sponsor/TCWG Phase 1 Accomplishments (cont’d) Conducted Studies without and with Project  Power flow  Transient Stability  Voltage Stability A number of transmission projects converge in northeast Oregon  Evaluated the technical merits of substation where these projects could potentially terminate  New Substation – NEO Station Preliminary NEO Station arrangements have been developed and will evolve during WECC Phase 2 Communicated Study Progress and Results  Each of the Projects has presented the results of their non- simultaneous rating study work at the TCWG Meeting  Participated in joint Big Tent meetings Order 2004 Sensitive

13. TCWG Phase 2 Coordination Project Sponsors have agreed that TCWG will function as the Phase 2 Project Review Group  No need to have separate review teams for individual projects  Separate Phase 2 meetings can be held at the Project Sponsors’ discretion Entities who are not part of the TCWG and have interest in any of the TCWG projects should contact the Project Sponsor to become part of TCWG Coordination Activities  Consistent assumptions  Discuss study results involving system interactions 13 Order 2004 Sensitive

14. TCWG Phase 2 Coordination Meetings  Regular monthly meetings January 21 February 18  TCWG is envisioned to function until the last project completes Phase 2 14 Order 2004 Sensitive

15. Walla Walla – Mc Nary Tom Tjoelker - PacifiCorp

16. Project Overview Conceptual Major Project Elements  Walla Walla – Wallula 230 kV Line  Wallula – Mc Nary 230 kV Line Potential Bidirectional rating:  400 MW East-to-West  400 MW West-to-East Project Operating Date: Late 2010 Project Website: www.pacificpower.net/energygatewaywww.pacificpower.net/energygateway. MAP 16 Order 2004 Sensitive

17. Objectives Provides up to 400 MW of new transmission capacity both East-to- West and West-to-East Improves transmission reliability to Wallula area Provides transmission capacity for new wind resources in Walla Walla area Facilitates future interconnection of other regional transmission projects such as proposed by Avista 17 Order 2004 Sensitive

18. Conceptual One-Line 18 Order 2004 Sensitive

19. WECC PHASE Rating Process Complete Phase I Proposed Rating Report – Feb. 2009 Initiate Phase II Planned Rating - Apr. 2009 Complete Phase II Planned Rating – June 2009 19 Order 2004 Sensitive

20. Project Update (since July, 2008) Regional Planning Report issued October 6, 2008 Phase I WECC Rating Process initiated October 9, 2008 Single-circuit performs well Working with Avista & BPA on potential regional transmission projects Double-circuit may be built as part of joint project with Avista RAS needed for higher wind penetrations 20 Order 2004 Sensitive

21. Project implementation Schedule WECC rating studies2008 - 2009 Permitting and Land acquisition2008 - 2009 Engineering 2008 - 2009 Construction Late 2009 Operations Late 2010 21 Order 2004 Sensitive

22. Hemingway – Capt. Jack Tom Tjoelker - PacifiCorp

23. Project Overview Conceptual Major Project Elements  Hemingway – Capt. Jack 500 kV Line Potential Bidirectional rating:  1500 MW East-to-West  1500 MW West-to-East Project Operating Date: 2014 Project Website: www.pacificpower.net/energygateway www.pacificpower.net/energygateway. MAP 23 Order 2004 Sensitive

24. CONCEPTUAL ONE-LINE HEMINGWAY – CAPT JACK 24 Order 2004 Sensitive

25. Objectives Support West side load growth Address renewable portfolio standards Potentially facilitates future interconnection of other regional transmission projects 25 Order 2004 Sensitive

26. Project implementation Schedule WECC rating studies 2009 Permitting and Land acquisition2010 - 2011 Engineering 2010 - 2011 Construction Late 2013 Operations Late 2014 26 Order 2004 Sensitive

27. 27 West of McNary Generation Integration Project (WOMGIP) Kyle Kohne - BPA

28. 28 Project Overview Major Elements Part 1: Construct a new McNary – John Day 500 kV transmission line (~79 mi) Part 2: Construct a new 500 kV substation (“Station Z”) near Goldendale, WA, and a 500 kV line from Station Z to BPA’s Big Eddy substation near The Dalles, OR. (~30 mi) Planned Rating: West of McNary: 4500MW West of Slatt: 5500MW West of John Day: 3450MW Proposed Project Operating Date Part 1: 2012 Part 2: 2013 Project Website: http://www.columbiagrid.org/WMRP- overview.cfm http://www.columbiagrid.org/WMRP- overview.cfm Order 2004 Sensitive

29. 29 Objectives Enable BPA to meet Network customer load growth from new resources and serve point-to-point transmission requests across multiple congested east-west transmission paths along the Washington – Oregon border. Enable BPA to interconnect additional wind generation in Eastern Washington and Eastern Oregon. Increase system reliability to serve Portland area load. Order 2004 Sensitive

30. 30 Project Update (since July 2008) Regional Planning Completed (February 2008) BPA plans to initiate the WECC Phase One Rating Process in January 2009. Funds approved to begin preliminary design and NEPA work. Public Involvement effort reinitiated for Part 1 (McNary – John Day). Both parts of the project will be included in BPA’s Network Open Season (NOS) process. Order 2004 Sensitive

31. 31 Project Implementation Schedule McNary-John Day 500-kV Project will take approximately 3.5 years from start to energization Environmental Process / Design – 0.5 years Material Procurement / Construction – Additional 3 years Big Eddy-Station Z 500-kV (includes Station Z) Project will take approximately 5 years from start to energization Environmental Process / Design – 2 years Material Procurement / Construction – Additional 3 years Order 2004 Sensitive

32. 32 I-5 Corridor Reinforcement Kyle Kohne - BPA

33. 33 Project Overview Major Project Elements Construct a new 500 kV Substation near Castle Rock, WA. Develop a 500 kV yard at the existing Troutdale Substation in Troutdale, OR. Construct a new 500 kV transmission line between these substations (approximately 70 miles). Alternative: Construct new 500 kV line between new Castle Rock substation and Pearl substation instead Planned Rating South of Allston: Approximately 1300 MW increase Proposed Operating Date 2015 Project Website: http://www.columbiagrid.org/I5CRP- overview.cfm Order 2004 Sensitive

34. 34 Objectives Relieve congestion along the I-5 corridor transmission path south of Paul Substation. Enable BPA to meet Network customer load growth from new resources and serve point-to-point transmission service requests which impact this path. Enable BPA to interconnect additional new resources which are being planned along the I-5 Corridor. Maintain reliable service to growing loads in Portland and vicinity. Reduce dependence on existing RAS while maintaining transmission system reliability. Order 2004 Sensitive

35. 35 Project Update (since July 2008) Regional Planning Completed (March 2008) BPA plans to initiate the WECC Phase One Rating Process in February 2009. Funds approved to begin preliminary design and NEPA work. This project will be included in BPA’s Network Open Season (NOS) process. Order 2004 Sensitive

36. 36 Project Implementation Schedule I-5 Corridor Reinforcement Project Project will take approximately 6 years from start to energization for either alternative Environmental Process / Design – 3 years Material Procurement / Construction – Additional 3 years Order 2004 Sensitive

37. 37 BPA Network Open Season Update Cluster Study results submitted to BPA Marketing on 10/31/08 153 PTSA’s submitted totaling 6,410 MW of transmission requests WOMGIP and I-5 Corridor Reinforcement are part of the portfolio of projects for meeting the requests BPA will host Customer Forum on 11/20/08 to present cluster study results (http://www.transmission.bpa.gov/customer_forums/)http://www.transmission.bpa.gov/customer_forums/ Commercial Infrastructure Analysis to be completed by 12/31/08 Agency embedded rate determination on portfolio of projects no later than 2/16/09 Order 2004 Sensitive

38. 38 Hemingway to Boardman Dave Angell - Idaho Power

39. 39 Project Overview Project Elements  Single 500 kV AC circuit from Hemingway, Idaho to Boardman, Oregon  Reactive compensation at Sand Hollow station Bidirectional rating:  1300 MW West to East  800/1400 MW East to West Project Operating Date: Summer 2013 Project Websites: http://www.idahopower.com/newsroom/projnews/hemingway_boardman/default.htm http://www.boardmantohemingway.com/ Order 2004 Sensitive

40. 40 Objectives Meet transmission requirements of Idaho Power Integrated Resource Plans (IRP)  225 MW of northwest resource import Relieve congested transmission path Satisfy OATI obligation for transmission service requests Connect resource centers to load centers (hub and spoke concept)  Transmission to forecasted load growth areas  Transmission to forecasted resources areas Order 2004 Sensitive

41. 41 Plan of Service 54 mile 500 kV line from Hemingway to Sand Hollow reactive station. Sand Hollow – series capacitor size for 50% compensation of line reactance 254 mile 500 kV line from Sand Hollow to Boardman Power Plant Boardman Power Plant – shunt capacitor bank Order 2004 Sensitive

42. 42 Project Update (since July, 2008) Permitting  Oregon Energy Facility Siting Council Notice of Intent 8/27/2008  BLM Notice of Intent (NEPA process) 9/11/2008 Comprehensive Progress Report  West to East Hemingway – Boardman 1300 MW Idaho to Northwest Path 758 MW  East to West independent of other northwest projects Hemingway – Boardman 838 MW Idaho to Northwest Path 1766 MW  East to West with Gateway West, WOMGIP, Southern Crossing Hemingway – Boardman 1400 MW Idaho to Northwest Path 2417 MW Order 2004 Sensitive

43. 43 Project Implementation Schedule WECC Regional Planning7/2007 – 5/2008 WECC Phase 1 Rating2/2008 – 12/2008 WECC Phase 2 Rating1/2009 – 12/2009 Permitting and Land acquisition 1/2008 – 2011 Engineering 1/2008 – 2011 Construction 2011 – 5/2013 Operation 5/2013 Order 2004 Sensitive

44. Southern Crossing Philip Augustin - Portland General Electric

45. Project Overview Conceptual Major Project Elements  500kV transmission line (215 miles)  500/230 kV substations Potential rating:  1500 MW (East to West )winter  1400 MW (East to West )summer Project Operating Date:  2013  2013-2014 if staged Project Website:  http://www.oatioasis.com/pge/index.html  http://www.nwpp.org/tcwg/ Order 2004 Sensitive

46. Objectives The Project was initiated in response to Generation Interconnection Requests for network service. The Project will increase transmission capacity to PGE’s service territory by increasing the East to West transfer capability of the PNW grid The Project is designed to integrate existing PGE generation resources (i.e., Boardman and Coyote Springs) and up to 800 MW of additional renewable and other resources. 46 Order 2004 Sensitive

47.  Conceptual Plan of Service:  HVAC facilities from Boardman to Coyote Springs  HVAC facilities from Boardman to Olallie  HVAC facilities for Bethel to Olallie  Series compensation between Boardman to Olallie, and between Bethel to Olallie 47 Order 2004 Sensitive

48. Project Update (since July, 2008) Submitted Regional Planning Project Report to WECC Planning Coordination Committee and Technical Studies Subcommittee on October 30 th for 30 day review. Studies demonstrate the Project’s effectiveness during heavy load conditions occurring either in the winter or late spring / early summer.  The east – west proposed rating was determined using a WECC 2017 Heavy Winter case, and a WECC 2015 Heavy Summer case. Generation in the Northwest was dispatched to achieve 1,500 MW of flow on Southern Crossing in the winter and 1,400 MW in the summer meeting WECC Reliability Criteria. Presented preliminary WECC Phase 1 study results to TCWG Begun critical issues analysis work for proposed ROW Signed a Memorandum of understanding with Idaho Power Co. 48 Order 2004 Sensitive

49. Generation Dispatch Studied 49 Order 2004 Sensitive

50. Phase 1 Study Load Assumptions Heavy Winter 2017 NameAGC Status / Area SlackGen MWMax Gen MWLoad MW PGE 2,6033,6734,284 TOTAL NORTHWESTSlack output: 614 MW30,68548,14433,258 Heavy Summer 2015 NameAGC Status/ Area SlackGen MWMax Gen MWLoad MW PGE 2,4513,6734,330 TOTAL NORTHWESTSlack output: 527 MW32,99548,18230,021 50 Order 2004 Sensitive

51. Phase 1: Preliminary Impacts existing paths observed Winter all lines in serviceSummer all lines in service Path Name and Number Pre-ProjectPost-ProjectPre-ProjectPost-Project West of Cascades South (E-W) 7814687069025972 Pacific DC Intertie (N-S) -963 2167 California Oregon Intertie (N-S) -1474-111933683329 South of Allston (N-S) -1118-123712961149 North of John Day (N-S) -1300-126164466528 West of Slatt (E-W) 154784441853313 West of McNary (E-W) 1475115924592158 51 Order 2004 Sensitive

52. Project implementation Schedule Task Name 2008 2009 2010 Finis h Start WECC Phase 1 & Regional Review Comprehensive Progress Report (CPR) -Identify the non-simultaneous and known interactions of the project CPR reviewed by PCC & TSS membership Informal reports are presented at TSS meetings Letter to TSS and PCC requesting Phase 2 Status WECC Phase 2 Identify the simultaneous transfer capability for project Address mitigations for any adverse impacts to existing system Duration 12 months Q1 2008 Q4 2008 24 months Q1 2009 Q4 2010 Q1 Q2 Q3 Q4 52 Order 2004 Sensitive

53. Project implementation Schedule WECC Phase Rating Process  Phase 1 Comprehensive Progress Report December 2008  Phase 2 Rating Report Fourth Quarter 2010 Q1 Q2 Q3 Q4 WECC Phase 3 Definitive commercial agreements Preliminary Engineering EFSC permitting process Land Acquisition Engineering Procurement Construction Release To Operation Task Name 2009 2014 20102011 2012 2013 Finish Start Duration 54 to 72 months Q1 2009 Q2 2013 or 2013 – Q2 2014 Q1 Q2 Q3 Q4 53 Order 2004 Sensitive

54. 54 Canada / Pacific Northwest to Northern California Transmission Project Stakeholder Meeting, Portland, November 19, 2008 Steve Metague - PG&E

55. 55 Project Overview Project steering team: Avista Corp, BCTC, PacifiCorp, PG&E Potential Bidirectional rating:  3000 MW North to South  South to North rating to be determined Project Operating Date: late 2015 Project Website: http://www.pge.com/canada/ Today’s presentation: Project Plan of Service. Summary of WECC Phase 1 N-S rating results. Schedule for S-N WECC Phase 1 and WECC Phase 2 rating. Overall Project Schedule. Order 2004 Sensitive

56. 56 Project Objectives Enhance access to significant incremental renewable resources in Canada and the Pacific Northwest. Improve regional transmission reliability. Provide market participants with beneficial opportunities to use the facilities. Use WECC’s open stakeholder planning process. Order 2004 Sensitive

57. 57 Plan of Service Initial Plan of Service:  HVAC facilities from Selkirk-Devil’s Gap- NEO Station  HVDC facilities from NEO Station to Collinsville with possible third terminal at Cottonwood  HVAC facilities from Collinsville to Tracy  Voltage support at the interconnecting substations  Remedial Actions – tripping of generation scheduled on the project for outages of the project facilities Project is dependent on other projects to be installed in the 2010-2015 period. Such projects:  accommodate CNC Project Sponsors’ use of CNC, or  increase AC system strength to support AC to DC conversion at the terminal stations Order 2004 Sensitive

58. 58 WECC Phase 1 Rating Process Update Regional Planning Report completed and submitted – November 2007. WECC Phase 1 has been coordinated with the Transmission Coordination Work Group (TCWG). Three generation scenarios were developed to support delivery of 3000 MW of renewable resources in British Columbia, the Pacific Northwest, or Northern California/Nevada:  3000 MW of renewable generation from BC CNC project loaded to 3000 MW south of Selkirk  1500 MW of renewable generation from both BC and the Pacific Northwest CNC project loaded to 3000 MW south of the NEO Station  1500 MW of renewable generation from both BC and Northern California/Nevada CNC project loaded to 3000 MW south of the Cottonwood Area Substation. 2015 Heavy Summer base case has been used modeling the system with and without the CNC Project. The WECC Phase I rating studies conducted to establish a north-to-south rating show:  The initial Plan of Service is viable.  Rating for the project segments is 3000 MW, N-S.  Other proposed projects at Neo Station needed to support the HVDC terminal.  Other proposed projects at Cottonwood needed to support the potential HVDC terminal.  Generation tripping of power scheduled on CNC (up to 3000 MW) is required for CNC facility outages. Order 2004 Sensitive

59. 59 WECC Rating Process Next Steps Phase 1 Comprehensive Progress Report (CPR)  Project Sponsors to e-mail the draft to Stakeholders for comment by12/1/2008. Stakeholders include TCWG members and Big Tent attendees who request a draft copy.  Stakeholder comments requested by 12/10/2008.  Final CPR and request to move to Phase 2 will be submitted to WECC by 12/16/2008. Project sponsors are scheduled to initiate the WECC Phase 1 rating process to establish a south-to-north rating in January 2009  Studies will be coordinated through the TCWG. Project sponsors expect to initiate the WECC Phase 2 rating process 60-days after submitting the Phase 1 CPR to WECC (mid-February). Entities wanting to participate in the WECC Phase 1 (S-N) or Phase 2 (N-S) process should join the TCWG through the Northwest Power Pool website: http://www.nwpp.org/tcwg/  Please copy Ben Morris at benmorris@astound.net Order 2004 Sensitive

60. WECC Rating Process Activities Previous activities  Initiated Regional Planning 12/16/2006.  Submitted Regional Planning Report 11/1/2007.  Completed load and resources, technical feasibility and economic screening analysis. Reports posted on project website 11/1/2007.  Initiated Phase 1 Rating Process 10/31/2007.  WECC Phase 1 Rating Process Stakeholder Meetings January 24, 2008 July 18, 2008 Today  TCWG monthly meetings. Planned activities  WECC Phase 1 Draft Comprehensive Progress Report (CPR) out for comment – 12/1/2008.  Stakeholder comments requested by 12/10/2008.  Final CPR and request to move to Phase 2 to be submitted to WECC by 12/16/2008.  Initiate the WECC Phase 1 rating process to establish a south-to-north rating in January 2009.  Initiate the WECC Phase 2 rating process – 2/2009.  Complete WECC Phase 2 rating process – Q3/2010. 60 Order 2004 Sensitive

61. 61 Order 2004 Sensitive

62. Avista Corporation 500/230 kV Interconnection with the Proposed Canada / Pacific Northwest to Northern California Transmission Project Scott A. Waples - Avista Corporation

63. 63 Project Overview Major Project Elements:  500/230 kV interconnection at Devil’s Gap  230 kV Phase Shifting Transformers  2-230 kV interconnections to the Spokane Area 230 kV Grid Potential Bidirectional rating:  500 MW Project Operating Date: 2015 Project Website: NWPP.org/tcwg/ Devil’s Gap 500-230-115 kV PG&E-CAN 500 kV Line Beacon 230-115 kV Sunset 230-115 kV Major Highways Existing 230 kV Proposed 230 kV Existing 115 kV Westside 230-115 kV Order 2004 Sensitive

64. 64 Objectives and Resources The Avista interconnection to the PG&E Canada to Northern California 500 kV Project will provide up to 500 MW of access from the “Main Stem” Project to the Avista transmission system, providing access to renewable resources in the Northwest and Canada. The interconnection will also provide access to the “Main Stem” 500 kV Project for resources, including renewables, located within the Avista service territory. The project may also allow Avista to integrate some of its existing thermal resources to its loads over its own transmission, and may allow for additional imports of economy energy into the Avista system. Potential wind resources that may require export capacity from various locations on the Avista system include, but are not limited to, wind farms near Spokane, Othello and Clarkston, Washington, as well as Grangeville and Lewiston, Idaho. Avista presently has 10 pending interconnections. Order 2004 Sensitive

65. Project Update (since July, 2008) Avista has completed the technical study work to support the WECC Regional Planning / WECC Phase I Rating submittal as projected in July. The studies indicate that the interconnection is feasible and that there are no adverse impacts to neighboring systems from this interconnection. Avista anticipated a joint Regional Planning / Phase I submittal for the study work, and a first draft of this report was provided to the TCWG at its October 23, 2008 meeting in Portland, Oregon. TCWG recommended that the draft report be split into two submittals. Avista has incorporated comments received at the TCWG meeting into the Regional Planning Report and has submitted that report to WECC. Comments on the report are due December 12, 2008. The Phase I report should be submitted to WECC within the next six weeks. Avista is also working with other PG&E Project Teams (Permitting and Public Affairs) for the PG&E Canada to California project. 65 Order 2004 Sensitive

66. Project implementation Schedule WECC Regional Planning December, 2008 WECC Phase I Rating studies December, 2008 WECC Phase II Rating studies2009 Permitting and Land acquisition2013-2014 Engineering 2013-2014 Construction2014-2015 Operations 2015 66 Order 2004 Sensitive

67. Avista Corporation 230 kV Dry Creek – (Walla Walla – NEO ) – Coyote Springs Transmission Project Scott A. Waples - Avista Corporation

68. 68 Project Overview Major Project Elements:  Dry Creek (Walla Walla – NEO) Coyote Springs 230 kV Line Potential Bidirectional rating:  500 MW Project Operating Date: 2015 Project Website: NWPP.org/tcwg/ Major Highways Proposed 230 kV Boardman/CS II Dry Creek Walla WA OR Order 2004 Sensitive

69. 69 Objectives and Resources The interconnection will allow Avista access to other renewable resources in the Northwest as well as in Canada. The project may also allow Avista to integrate some of its existing thermal resources to its loads over its own transmission, and may allow for additional imports of economy energy into the Avista system. Potential wind resources that may require export capacity from various locations on the Avista system include, but are not limited to, wind farms near Spokane, Othello and Clarkston, Washington, as well as Grangeville and Lewiston, Idaho. Avista presently has 10 pending interconnections. Order 2004 Sensitive

70. Project Update (since July, 2008) Avista has begun the technical study work to support the WECC Regional Planning and WECC Phase I Rating submittals. The studies that have been completed indicate that the interconnection is feasible and that there are no adverse impacts to neighboring systems from this interconnection. The project may require phase shifting transformers as well as series compensation. The project may, at a future date, also interconnect at the NEO Station. Avista has formally approached PacifiCorp to see if this project and the PacifiCorp Walla Walla – McNary (NEO) project might be able to utilize a common right-of-way or common transmission structures, and the two companies are now engaged in such discussions. Avista will be hosting a kickoff meeting for the WECC Regional Planning and Phase I Study efforts for this project in the near future. Please stay tuned! 70 Order 2004 Sensitive

71. Project implementation Schedule WECC Regional PlanningJanuary, 2009 WECC Phase I Rating studies January, 2009 WECC Phase II Rating studies2009 Permitting and Land acquisition2013-2014 Engineering 2013-2014 Construction2014-2015 Operations 2015 71 Order 2004 Sensitive

72. NorthernLights Connecting Alberta and the Pacific Northwest Russ Hantho – Bill Hosie TransCanada Corporation

73. NorthernLights Overview Project web site: http://www.transcanada.com/company/northernlights.html Buckley Edmonton NorthernLights AC or DC Connectors Converter Calgary Spokane BC AB SK WA MT ID OR HVDC transmission line connecting the Edmonton area with northern Oregon 3000 MW line design capacity 2000 MW bidirectional capacity 900 miles $2.2 billion (‘08$), 2000 MW initial capacity Operational in 2015 Order 2004 Sensitive 73

74. NorthernLights Creates a bi-directional intertie between Alberta and the Pacific Northwest Enhances regional resource reliability (AESO’s 2007 Market Roadmap) Improves regional transmission reliability Enhances regional wind capacity factors through geographic diversity Provides market participants with beneficial opportunities to use the facilities Provides opportunities for markets to access large scale renewable energy resources – wind, hydro, IGCC with sequestration & nuclear Order 2004 Sensitive 74

75. Generation Potential in Alberta Order 2004 Sensitive 75

76. 76 Transmission Planning & WECC  Participation at NTAC, RMATS, Columbia Grid and NTTG  WECC Regional Planning Process 2007  WECC Path Rating Process BPA Interconnection Agreement INL Study Alberta Corridor Analysis AESO Open Houses NorthernLights Project Progress Order 2004 Sensitive 76

77. Alberta Interconnection To Buckley Milo Order 2004 Sensitive 77

78. Buckley Area Interconnection “Buckley New” Order 2004 Sensitive 78

79. Project Update (since July, 2008) Edmonton to Calgary System Developments  40 open houses between June and December 2008 held by the AESO with TransCanada participation Phase 1 Comprehensive Progress Report tabled with TCWG Monday for comment  Schedule to submit to the WECC December 1, 2008 Phase One Studies  2000 MW bidirectional power flow, reactive margin and stability studies  Results are all within reliability criteria standards Order 2004 Sensitive 79

80. Project implementation Schedule WECC rating studies2009 Permitting and Land acquisition2009 - 2012 Engineering 2009 - 2012 Construction2012 - 2015 Operations 2015 Order 2004 Sensitive 80

81. 81 West Coast Cable Juan de Fuca Cable 2 Triton North Cable Triton Central Cable Triton South Cable Sea Breeze Pacific - RTS Projects

82. 82 Order 2004 Sensitive

83. 83 Juan de Fuca Cable 22013+/- 300 kV DC VSC1,100 MWRP – submitted 11/2008 West Coast Cable (WCC)2015+/- 600 kV DC1,600 MWPh 1 – Initiated 12/2006 Triton Central Triton North Triton South Cables 2014 2016 2017/2019 +/- 300 kV DC VSC +/- 150 kV DC VSC +/- 300 kV DC VSC 2,200 MW 550 MW 2,200 MW 3 RP’s – submitted 11/2008 Order 2004 Sensitive

84. 84 Order 2004 Sensitive

85. SBP-RTS Projects West Coast Cable -  In Phase 1 – Power Flow runs completed  Stability runs in process Juan de Fuca Cable 2 ▀ Triton Central Cable Triton North Cable ▀ Triton South Cables  Regional Planning reports - for all studies have been completed and are currently being submitted.  Phase 1 – Power Flow cases have been run in PowerWorld using the TCWG agreed upon 2015 HS TCWG Base Case  Have been converted to PTI format.  ABB has confirmed models and has verified conversions.  Models are available on the NWPP Website. 85 Order 2004 Sensitive

86. Questions? 86 Order 2004 Sensitive

87. 87 Next Steps and Timelines for TCWG Joint Big Tent MeetingNov 19, 2008 Submit Phase 1 CPR to PCC and TSS (Project Sponsor) Q4 2008 Phase 2 Studies (Project Sponsor and TCWG)Dec 2008 and on TCWG will be used for Phase 2 study reviewsDec 2008 and on Order 2004 Sensitive

88. Q & A Order 2004 Sensitive

89. Inputs and Commentary Sponsor Panel 89 Order 2004 Sensitive