1. PacifiCorp & CAISO Regional Transmission Organization Presented by Scott Gutting President, Energy Strategies, LLC Independent Energy Producers Annual Conference September 30, 2015

2. Many customers and generators in PacifiCorp states support the development of effective and efficient markets and expanded opportunities to access those markets. 1.Key questions to be asked are: a.Will the PAC/CAISO RTO lead to lower costs for customers? b.Will generators be able to participate in a larger, regional market? c.Can California's environmental policies and carbon reduction goals compliment PAC states’ carbon reduction obligations? " The devil is in the details". 2

3. Topics that will be considered by stakeholders, customers and Commissioners in PAC States (WA, OR, ID, WY & UT) are: 1.Governance How will governance be organized? What influence will PAC states have on how governance is structured? Will the structure require agreements between the California legislature, the CAISO, PacifiCorp's multi-state regulators, others? 3

4. 2.Transmission Issues to evaluate around the proposal Transmission "Access" Charges & Costs: 1.CAISO rates are higher than PAC's rates and are designed differently. 2.How will these differences be reconciled? Transmission Planning: 1.Will PacifiCorp conduct transmission planning the same way as the ISO? 2.How will state regulators and others participate in planning processes? Transfer Capability Between CAISO & PAC: 1.There is limited transmission capacity between the regions. Can substantial benefits be realized with this limited capacity? 2.Is there a need for new transmission to connect the two systems? 3.If so, what are these solutions and how far away are they? 4

5. 3. Market Power Concerns Will there be market power issues? If so, how will market power issues be addressed? 4. Generation How much and where is the congestion between the "systems" as they are defined today? Will that congestion lead to economic transmission expansion between CAISO & PAC? Will renewable generation in PacifiCorp's service territories meet CA. RPS requirements and vice versa? 5

6. 6 5. Implementation of EPA Section 111(d) Rules: How will EPA Section 111(d) requirements impact PAC’s efforts? The PAC/CASIO discussions will raise questions about the application of Section 111d to PAC states in particular WY & UT. The final EPA rule indicates: 1.WA, OR & ID are long 111d compliance. 2.WY is short 3.UT is uncertain due to IPP status UT, ID & WY are very Red states CA, WA & OR are Blue states.