Energy Gateway West Project Gateway South Project Technical

Energy Gateway West Project Gateway South Project Technical Study Leads: Idaho Power (Gateway West) and Pacifi. Corp (Gateway South) WECC Phase 2 Study Group Kick-Off Meeting May 22, 2009 Salt Lake City, Utah

Standards of Conduct Non-Disclosure Statement The following procedures have been implemented to provide Standards of Conduct Safeguards: Ten day advance notice of public meeting w All eligible customers invited w Telephone participation provided w Handouts posted on OASIS prior to meeting w Meeting notes will be taken and posted w One eligible customer must be in attendance w Meetings no more than twice per month w Energy Gateway Project - Phase 2 Technical Studies 2

Our agenda for today… 1. Welcome 2. Introductions EGW Phase 2 Study Process – PCC Presentation (April 2009) Facility Staging Study Area Path Interactions, Study Participants & Issues Study Area: “Straw-man” Study Plan Study Schedule Q&A 3. 4. 5. 6. 7. 8. Energy Gateway Project - Phase 2 Technical Studies 3

WECC Phase 2 Study Group Kick-Off Meeting Welcome 2. Introductions 1. Energy Gateway Project - Phase 2 Technical Studies 4

WECC Phase 2 Study Group Kick-Off Meeting 3. Energy Gateway Phase 2 Study Process - PCC Presentation (April 2009) Energy Gateway Project - Phase 2 Technical Studies 5

Gateway West MSTI SWIP Energy Gateway Project - Phase 2 Technical Studies 6

Gateway South Energy Gateway Project - Phase 2 Technical Studies 7

Phase 1 Study Effort w w Studies were performed and reported by path w Five for Gateway West w Three for Gateway South Reviewing entities interested in local impacts Energy Gateway Project - Phase 2 Technical Studies 8

Leverage Phase 1 Experience Perform and review studies within a local area w Attach appropriate local area studies for Phase 2 reports w Energy Gateway Project - Phase 2 Technical Studies 9

Phase 2 Method Hold Energy Gateway review meetings w Gateway West Project Review Study Group w Gateway South Project Review Study Group w Form five sub-area study groups w Energy Gateway Project - Phase 2 Technical Studies 10

Gateway West Study Areas MSTI Windstar Study Area Southern Idaho Study Area Bridger Study Area SWIP Energy Gateway Project - Phase 2 Technical Studies 11

Gateway South Study Areas Aeolus South Study Area Mona South Study Area Energy Gateway Project - Phase 2 Technical Studies 12

Process Flow Diagram Energy Gateway Project - Phase 2 Technical Studies 13

Example Phase 2 Report Appendix C Windstar Area Study Gateway West Phase 2 Report Appendix B Bridger Area Study Appendix A Southern Idaho Area Study Energy Gateway Project - Phase 2 Technical Studies 14

Energy Gateway Project 4. Facility Staging Energy Gateway Project - Phase 2 Technical Studies 15

EGW Facility Staging w w w Due to the scope and nature of the EGW project, not all facilities will be constructed during the same period. As such, facilities will be installed following a segmented approach – focusing on one leg of the project, then another leg, etc. For example: Ø Populus – Terminal 345 k. V #1 & #2 will be in-service 12/2010 (This project was granted Phase 3 status in 11/2008) Ø Pinto 345 k. V series capacitor (on PNT-HNT 345 k. V line) will be in-service 5/2010 Ø St. George (Utah) SVC will be in-Service in 5/2011 Energy Gateway Project - Phase 2 Technical Studies 16

EGW Facility Staging Rather than initiate technical studies for each transmission segment, it was decided to group transmission segments into two logical project stages that would be evaluated by WECC Phase 2 study group (or sub groups). w Incremental transmission limitations for transmission segments that are added between stages, will be addressed via OTC studies. [This same process was followed by BPA and AVISTA for the West of Hatwai Expansion project. ] w Energy Gateway Project - Phase 2 Technical Studies 17

EGW Facilities – Stage 1 (1500 MW) Energy Gateway Project - Phase 2 Technical Studies 18

Gateway West – Stage 1 Facilities Hemingway - Bridger Energy Gateway Project - Phase 2 Technical Studies 19

Gateway West – Stage 1 Facilities Bridger - Windstar w The current schedule calls for all Gateway West – Stage 1 facilities will be in-service by 12/2016. Energy Gateway Project - Phase 2 Technical Studies 20

Gateway South – Stage 1 Facilities Aeolus – Mona – So. Nevada w The current schedule calls for all Gateway South – Stage 1 facilities will be in-service by 12/2017. Energy Gateway Project - Phase 2 Technical Studies 21

EGW Facilities – Stage 2 (Full-Build, 3000 MW) Energy Gateway Project - Phase 2 Technical Studies 22

Gateway West – Stage 2 Facilities Hemingway - Bridger Energy Gateway Project - Phase 2 Technical Studies 23

Gateway West – Stage 2 Facilities Bridger - Windstar w The current schedule calls for all Gateway West – Stage 2 facilities will be in-service by 12/2017. Energy Gateway Project - Phase 2 Technical Studies 24

Gateway South – Stage 2 Facilities Aeolus – Mona – So. Nevada w The current schedule calls for all Gateway South – Stage 2 facilities will be in-service by 12/2019. Energy Gateway Project - Phase 2 Technical Studies 25

WECC Phase 2 Study Group Kick-Off Meeting 5. Study Area Path Interactions, Study Participants & Study Issues Energy Gateway Project - Phase 2 Technical Studies 26

Study Area Participation w Charts for each Study Areas, which indicate Area Path Interactions, (projected) Study Participants & a drawing of the facilities being evaluated, have been displayed in the meeting room. w Please take time during one of the breaks to review the information and make necessary changes or modifications. w These inputs will help us in move the Phase 2 study efforts forward. Energy Gateway Project - Phase 2 Technical Studies 27

Gateway West - So. Idaho Study Area Paths Analysis w Midpoint West Simultaneous Interactions w w w Borah West (Path 17) w w w Idaho – Northwest (Path 14) w Midpoint – Summer Lake (Path 75) w Boardman - Hemingway Montana – Northwest (Path 8) Path C (Path 20) Montana – Idaho (Path 18) MSTI Project SWIP (Great Basin – North, ENTP) Idaho – Sierra (Path 16) Energy Gateway Project - Phase 2 Technical Studies 28

Gateway West – Bridger Study Area Path Analysis Simultaneous Interactions w Bridger West (Path 19) w w w Aeolus South Path C (Path 20) Montana – Idaho (Path 18) Bonanza West (Path 33) Monument – Naughton (PAC Internal) RS/FH West (PAC Internal) w Path C (Path 20) w w Bridger West (Path 19) Bonanza West (Path 33) Monument – Naughton (PAC Internal) RS/FH West (PAC Internal) w Aeolus West w w w Aeolus South TOT 1 A (Path 30) Bonanza West (33) Energy Gateway Project - Phase 2 Technical Studies 29

Gateway West – Windstar Study Area Path Analysis w TOT 4 A (Path 37) Simultaneous Interactions w Montana Southeast (Path 80) w TOT 4 B (Path 38) w TOT 3 (Path 36) w Yellowtail South w TOT 1 A (Path 30) Energy Gateway Project - Phase 2 Technical Studies 30

Gateway West – Study Participants • Basin Electric Power Cooperative • Black Hills Cooperation • Bonneville Power Administration, Transmission/Power Services • Columbia Grid • Deseret Generation & Transmission • Edison Mission Energy • Great Basin Transmission Group • Idaho Power Company • North. Western Energy • NV Energy • Pacifi. Corp • Puget Sound Energy, Inc. • Trans. Canada • Trans. West Express LLC • Western Area Power Administration • Western Grid Group Correspondents • OPUC • Avista Corp. • NWPP Corporation • Wyoming Public Service Commission • En. Tran. Tek LLC and Ridgeline Energy LLC • Invernergy LLC • Wyoming Public Service Commission Energy Gateway Project - Phase 2 Technical Studies 31

Gateway West – Study Issues Wyoming Issues w Evaluate interaction between GW and TOT 3 (Wyoming – Colorado); additionally GW and DJ-LRS-Ault transmission lines. (Basin Electric) w Evaluate the interaction between TOT 1 A path and each component of the project. (WAPA) w When are SSR Studies planned for? (WAPA) Parallel to Phase 2 process, PACE will perform SSR analysis for portions of the Western Interconnection that are effected by the EGW Project. Other Issues w GW interaction with Bridger West (PAC) w Interactions between Bridger West and Path C (PAC) Energy Gateway Project - Phase 2 Technical Studies 32

Gateway South – Aeolus South Study Area Path Analysis w Aeolus South Simultaneous Interactions w Aeolus West w Bridger West (Path 19) w TOT 1 A (Path 30) w Bonanza West (Path 30) w IPP DC Line, 2400 MW (Path 27) w Intermountain – Mona (Path 28) w Intermountain – Gonder (Path 29) w Pavant – Gonder (Path 32) w TOT 2 C (Path 35) w COI (Path 66) w PDCI (Path 65) Energy Gateway Project - Phase 2 Technical Studies 33

Gateway South – Mona South Study Area Path Analysis w Mona South w TOT 2 C Simultaneous Interactions w w w w IPP DC Line, 2400 MW (Path 27) Intermountain – Mona (Path 28) Intermountain – Gonder (Path 29) Pavant – Gonder (Path 32) TOT 2 C (Path 35) COI (Path 66) PDCI (Path 65) w w w w w TOT 2 A (Path 31) TOT 2 B 1/2 B 2 (Paths 78 & 79) IPP DC Line, 2400 MW (Path 27) Intermountain – Mona (Path 28) Intermountain – Gonder (Path 29) Pavant – Gonder (Path 32) Centennial Project (Path 81) SWIP COI (Path 66) PDCI (Path 65) Energy Gateway Project - Phase 2 Technical Studies 34

Gateway South – Study Participants • • • • Arizona Public Service Basin Electric Power Cooperative Black Hills Corporation Columbia Grid Deseret Generation & Transmission Idaho Power Company Los Angeles Department of Water & Power LS Power North. Western Energy NV Energy Pacifi. Corp Puget Sound Energy Southern California Edison • • • Salt River Project Trans. West Express LLC Tri-State Generation & Transmission Utah Association of Municipal Power Systems Western Area Power Administration Wasatch Wind Energy Gateway Project - Phase 2 Technical Studies 35

Gateway South – LADWP Study Issues w w w Interactions between existing & proposed PST’s at Crystal TOT 2 C path (+/- 600 MW and +2100/-1700 MW) interaction with other paths. Staging of TOT 2 C facilities Each of the SPS schemes in the report will be further refined and added to the Project POS. Continue to evaluate simultaneous interactions among components within the GS Project. Short circuit analysis to quantify impacts on existing breakers in the southern Nevada/Eldorado Valley w Simultaneous Interaction between each of the paths noted below and each component of the GS project, and the project as a whole at the projects max loading: w Path 27 (IPPDC 2400 MW) w Path 28 (Intermountain – Mona) w Path 29 (Intermountain – Gonder) Energy Gateway Project - Phase 2 Technical Studies 36

Gateway South – Other Study Issues w w How will Pacifi. Corp determined if the Harry Allen – Mead 500 k. V #2 line should be included in the GS plan-of -service. (TWE) Detailed analysis of the impacts of a new transmission line between Crystal and Mead and the Centennial Project will be evaluated during the Phase 2 studies. Is there a dependent relationship between the Pacifi. Corp and other project in WECC Phase 2? (TWE) Phase 1 studies demonstrated that Gateway South can achieve its ratings with or without the Great Basin North 500 k. V line being constructed. Additional simultaneous analysis for other Western Interconnection paths will be performed during Phase 2 technical studies. w w w Evaluate interaction between GS and TOT 3 (Wyoming – Colorado); additionally GS and DJ-LRS-Ault transmission lines. (Basin Electric) (UPALCO-Carbon 138 k. V line): TOT 1 A should be monitored and interactions determined in the next phase of studies. (WAPA) When are SSR Studies planned for? (WAPA) Parallel to Phase 2 process, PACE will perform SSR analysis for portions of the Western Interconnection that are effected by the EGW Project. Energy Gateway Project - Phase 2 Technical Studies 37

WECC Phase 2 Study Group Kick-Off Meeting 6. Study Area: “Straw-man” Study Plan Energy Gateway Project - Phase 2 Technical Studies 38

Study Area – “Straw-man” Study Plan w Study Plan Format: w Detail for Phase 1 Analysis w w w 2015 HS base case Resource Assumptions (PAC IRP & OASIS Inputs) Project Configuration (Full-Build Option) Study Criteria List of Outages, etc. Place Holder for Phase 2 Studies w w w Project Staging (1500 MW/3000 MW) Study Base Cases → See Next Slide Resource Assumptions w w Stage 1 – Updated IRP, Stage 2 – Extended IRP *Being Refined* Path Simultaneous Interactions Issues raised by Phase 2 Study participants Once approved, Study Plan will need to be tailored for each sub-Area Energy Gateway Project - Phase 2 Technical Studies 39

Energy Gateway Base Cases Energy Gateway Project - Phase 2 Technical Studies 40

WECC Phase 2 Study Group Kick-Off Meeting 7. Study Schedule Energy Gateway Project - Phase 2 Technical Studies 41

Study Schedule w IPC: West of Populus Energy Gateway Project - Phase 2 Technical Studies 42

Study Schedule w Pacifi. Corp Energy Gateway Project - Phase 2 Technical Studies 43

WECC Phase 2 Study Group Kick-Off Meeting 8. Q&A Energy Gateway Project - Phase 2 Technical Studies 44