1. 1 Sunrise Powerlink Project Update Orange County Business Council March 10, 2009

2. 2 Project Background Sunrise Powerlink was proposed in 2005 to provide 3 primary benefits to customers….  Improve electric system reliability  Provide access to renewable energy resources in the Imperial Valley  Reduce energy costs for SDG&E customers

3. 3 Project Description  120-mile electric transmission line from Imperial County to San Diego  Project begins at the SDG&E Imperial Valley Substation, continues to a new substation southeast of Alpine, then continues north west to the SDG&E Sycamore Canyon Substation at East Miramar  Sunrise will have the capacity to carry 1,000 megawatts, enough to power 650,000 homes  Project cost -- $1.8 billion

4. 4 Approval Process  SDG&E’s application submitted to the California Public Utilities Commission (December 2005)  Public hearings, environmental review, regulatory scrutiny (December 2005 to December 2008)  More than 43 CPUC and SDG&E public meetings held throughout San Diego County  More than 2,500 pages of official comments submitted on the 11,000-page EIR/EIS by numerous agencies and individuals  CPUC and BLM approval (December 2008 and January 2009)

5. 5 Route Selection  SDG&E submitted amended application to the CPUC proposing a Preferred Northern Route (August 2006)  CPUC Commissioner Grueneich ordered a Southern Route be studied (September 2006 Public Participation Hearing and January 2007 Scoping Memo)  Significant opposition to Anza Borrego Desert State Park impacts from Governor Schwarzenegger and State Parks Department and Commission  CPUC and BLM certified the EIR/EIS and approved southern route (December 2008 and January 2009)

7. 7 Sunrise Powerlink Timeline Project Application Filed Dec. 2005 2006 2005 2007 2008 CPUC Phase I Hearings June 2007 CPUC Decision Dec. 2008 Route Planning Communit y Input 2005 CPUC Phase II Hearings April 2008 Final Environmental Impact Report (FEIR) Oct. 2008 BLM Record of Decision Jan. 2009 20092010 2011 2012 Start Construction Jun. 2010 Commercial Operation Jun. 2012 Obtain Additional Permits/Approvals Land Acquisition Material Purchase

8. 8  The California Public Utilities Commission (CPUC) approved the project by a vote of 4 to 1 on December 18, 2008  U.S. Bureau of Land Management (BLM) Record of Decision approved on January 20, 2009  Authorized budget through December 2008 is $134 million  Spend through year-end 2008 was $114 million  CPUC Decision Includes a project “Cost Cap” of $1.883 billion Licensing Status *MAJOR PERMITS HAVE BEEN OBTAINED *PROJECT IS WITHIN BUDGET AND PREPARED FOR EQUIPMENT PROCUREMENT

9. 9  U.S. Forest Service “Record of Decision”  U.S. Forest Service “Plan Amendment”  Habitat Acquisition Plan  Emission Offset Acquisition, etc. *Additional Permits Are in Process and “Enabled” by Certification of the Environmental Impact Statement (EIS) *Various Legal and Regulatory Challenges Underway  Public Utilities Commission “Rehearing Requests”  State Supreme Court Challenge  Expect Federal Challenges to Occur Soon Licensing Status

10. 10 Administrative/Judicial Review  CPUC Final Decision  U.S. Bureau of Land Management (BLM) – Record of Decision  U.S. Fish and Wildlife Service (U.S.F.W.S.) – Biological Opinion  U.S. Forest Service (U.S.F.S.) – Record of Decision – Plan Amendment Major Permits Subject to Challenge:

11. 11 Continued Support for Sunrise  Sunrise is critical to ensuring a reliable energy supply in San Diego and Southern Orange Counties  Provides access to 1,000 megawatts of clean, renewable energy – reducing green gas house emissions  Will generate over $115 million in net benefits to customers  CPUC approval was a significant victory and critical to the success of state and national efforts to ensure a clean energy future  Together we must ensure Sunrise gets built

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