1. © 2000 PACIFICORP 1 230 kV LINE WALLA WALLA – WALLULA – Mc NARY 500 kV LINE HEMINGWAY – CAPTAIN JACK – REGIONAL PLANNING MEETING REGIONAL PLANNING PROJECT MEETING JULY 9, 2008

2. © 2000 PACIFICORP 2 230 kV LINE WALLA WALLA – WALLULA – Mc NARY 500 kV LINE HEMINGWAY – CAPTAIN JACK – REGIONAL PLANNING AND PROJECT RATING PROCESS

3. © 2000 PACIFICORP 3 230 kV LINE WALLA WALLA – WALLULA – Mc NARY 500 kV LINE HEMINGWAY – CAPTAIN JACK - PROJECT GUIDELINES 1. Take multiple project needs and plans into account, including identified utilities’ and non-utilities’ future needs, environmental and other stakeholder interests; 2. Cooperate with others to look beyond specific end points of the sponsors’ project to identify broader regional and subregional needs or opportunities: 3. Address the efficient use of transmission corridors (e.g., right-of-ways, new projects, optimal line voltage, upgrades, etc.);

4. © 2000 PACIFICORP 4 230 kV LINE WALLA WALLA – WALLULA – Mc NARY 500 kV LINE HEMINGWAY – CAPTAIN JACK - PROJECT GUIDELINES 4. Identify and show how the project improves efficient use of, or impacts existing and planned resources of the region (e.g., benefits and impacts, transmission constraint mitigation); 5. Cooperate with Regional Planning Review Group members in determining the benefits and impacts due to the project; 6. Identify transmission physical and operational constraints resulting from the project or that are removed by the project;

5. © 2000 PACIFICORP 5 230 kV LINE WALLA WALLA – WALLULA – Mc NARY 500 kV LINE HEMINGWAY – CAPTAIN JACK - PROJECT GUIDELINES 7. Coordinate project plans with and seek input from all interested members, subregional planning groups, power pools, and region-wide planning group(s); 8. Coordinate project plans with and seek input from other stakeholders including utilities, independent power producers, environmental and land use groups, regulators, and other stakeholders that may have an interest; 9. Review the possibility of using the existing system, upgrades or reasonable alternatives to the project to meet the need (including non-transmission alternatives where appropriate);

6. © 2000 PACIFICORP 6 230 kV LINE WALLA WALLA – WALLULA – Mc NARY 500 kV LINE HEMINGWAY – CAPTAIN JACK - PROJECT GUIDELINES 10. Indicate that the sponsor’s evaluation of the project has taken into account costs and benefits of the project compared with reasonable alternatives; 11. Coordinate with potentially parallel or competing projects and consolidate projects where practicable.

7. © 2000 PACIFICORP 7 230 kV LINE WALLA WALLA – WALLULA – Mc NARY 500 kV LINE HEMINGWAY – CAPTAIN JACK – STUDY AREA

8. © 2000 PACIFICORP 8 230 kV LINE WALLA WALLA – WALLULA – Mc NARY 230 kV LINE WALLA WALLA – WALLULA – Mc NARY –PROJECT –BENEFITS –ALTERNATIVES STUDIED

9. © 2000 PACIFICORP 9 230 kV LINE WALLA WALLA – WALLULA – Mc NARY PROJECT –CONSTRUCT NEW SINGLE-CIRCUIT 230 kV LINE FROM WALLA WALLA TO WALLULA TO Mc NARY –APPROXIMATELY 56 MILES OF NEW LINE –LINE TERMINALS REQUIRED AT WALLA WALLA, WALLULA AND Mc NARY –PROPOSED IN-SERVICE DATE IS 2010.

10. © 2000 PACIFICORP 10 230 kV LINE WALLA WALLA – WALLULA – Mc NARY BENEFITS –PROVIDES UP TO 400 MW OF NEW TRANSMISSION CAPACITY –IMPROVES TRANSMISSION RELIABILITY –PROVIDES TRANSMISSION CAPACITY FOR NEW WIND RESOURCES –FACILITATES FUTURE INTERCONNECTION OF OTHER REGIONAL TRANSMISSION PROJECTS

11. © 2000 PACIFICORP 11 230 kV LINE WALLA WALLA – WALLULA – Mc NARY

12. © 2000 PACIFICORP 12 230 kV LINE WALLA WALLA – WALLULA – Mc NARY – SYSTEM BEFORE REINFORCEMENTS (POTENTIAL WIND ON)

13. © 2000 PACIFICORP 13 230 kV LINE WALLA WALLA – WALLULA – Mc NARY - SYSTEM AFTER REINFORCEMENTS

14. © 2000 PACIFICORP 14 230 kV LINE WALLA WALLA – WALLULA – Mc NARY – SYSTEM AFTER POTENTIAL DOUBLE CIRCUIT OUTAGE

15. © 2000 PACIFICORP 15 230 kV LINE WALLA WALLA – WALLULA – Mc NARY CONCLUSIONS TO-DATE –Single Circuit performs well –Double Circuit performs better  Present needs indicate a double circuit is not required –RAS needed for higher wind penetrations –New corridor for line will be difficult to obtain

16. © 2000 PACIFICORP 16 230 kV LINE WALLA WALLA – WALLULA – Mc NARY NEXT STEPS –ADDRESS REGIONAL PLANNING GUIDELINES –PREPARE REGIONAL PLANNING PROJECT REPORT –INITIATE PHASE 1 RATING PROCESS

17. © 2000 PACIFICORP 17 230 kV LINE WALLA WALLA – WALLULA – Mc NARY COMMENTS/QUESTIONS?

18. © 2000 PACIFICORP 18 500 kV LINE HEMINGWAY – CAPTAIN JACK –PROJECT –BENEFITS –ALTERNATIVES STUDIED

19. © 2000 PACIFICORP 19 500 kV LINE HEMINGWAY – CAPTAIN JACK PROJECT –320 MILE (APPROX.) SINGLE CIRCUIT 500 kV LINE FROM NEW PROPOSED HEMINGWAY SUBSTATION NEAR MELBA, IDAHO TO THE EXISTING CAPTAIN JACK 500 kV SUBSTATION IN SOUTHERN OREGON. –PROPOSED IN-SERVICE DATE IS 2014.

20. © 2000 PACIFICORP 20 500 kV LINE HEMINGWAY – CAPTAIN JACK ALTERNATIVES STUDIED –USED WECC 2010 LIGHT AUTUMN CASE –ADDED TO BASE CASE: GATEWAY CENTRAL, WEST & SOUTH I-5 REINFORCEMENT NORTHERN CALIFORNIA LINE SOUTHERN CROSSING WEST OF Mc NARY –EVALUATED POWER SYSTEM SENSITIVITY TO HVDC TERMINUS –EVALUATED POWER SYSTEM SENSITIVITY TO HEMINGWAY TO CAPTAIN JACK TERMINUS

21. © 2000 PACIFICORP 21 500 kV LINE HEMINGWAY – CAPTAIN JACK BENEFITS –SUPPORT WEST SIDE LOAD GROWTH –ADDRESS RENEWABLE PORTFOLIO STANDARDS –FACILITATES FUTURE INTERCONNECTION OF OTHER REGIONAL TRANSMISSION PROJECTS

22. © 2000 PACIFICORP 22 500 kV LINE HEMINGWAY – CAPTAIN JACK

23. © 2000 PACIFICORP 23 500 kV LINE HEMINGWAY – CAPTAIN JACK - ALTERNATIVE A - HVDC TERMINAL ADJACENT TO GRIZZLY 500 kV

24. © 2000 PACIFICORP 24 500 kV LINE HEMINGWAY – CAPTAIN JACK NEXT STEPS –ADDRESS REGIONAL PLANNING GUIDELINES –PREPARE REGIONAL PLANNING PROJECT REPORT –INITIATE PHASE 1 RATING PROCESS

25. © 2000 PACIFICORP 25 500 kV LINE HEMINGWAY – CAPTAIN JACK COMMENTS/QUESTIONS?