Iberdrola Renewables Tule Wind Project January 13 2009

Iberdrola Renewable’s Tule Wind Project January 13, 2009

Who is Iberdrola Renewables? • Iberdrola — Spanish-owned Utility and Owner of Renewable Energy Assets, acquired Scottish Power (and PPM Energy) in April 2007 • World’s Largest Owner/Operator of Renewable Energy; 2, 400 MW of wind in the U. S. , 8, 000 megawatts (MW) worldwide • We are good neighbors – industry leaders for setting the bar with environmental efforts and community outreach

North American Wind Assets Big Horn 200 MW Owned Klondike 24 MW Owned Klondike II 75 MW Owned Moraine, 51 MW Owned High Winds 162 MW PPA Shiloh 150 MW Owned Mountain View III 25 MW Owned Dillon 45 MW Owned Maple Ridge II 45. 4 MW Owned (91 MW Project) Maple Ridge 1 a 16. 5 MW Owned (33 MW Project) Klondike III 221 MW Owned Klondike IIIa 76 MW Owned Trimont, 100 MW Owned Stateline 300 MW PPA Winnebago 20 MW Owned Minn. Dakota SW Wyoming 150 MW Owned 144 MW PPA WESTERN REGION Flying Cloud 44 MW Owned Twin Buttes 75 MW Owned Colorado Green 81 MW Owned (162 MW Project) Top of Iowa II, 80 MW Owned Elk River 150 MW Owned MID-CONTINENT REGION Providence Heights 72 MW Owned NORTHEAST REGION Maple Ridge 1 99 MW Owned (198 MW Project) Jersey-Atlantic Wind 2 MW Owned (7. 5 MW Project) Bear Creek 6 MW Owned (24 MW Project) Locust Ridge 26 MW Owned Casselman 35 MW Owned Wind projects owned or controlled Updated October 15, 2008

Iberdrola Renewables: Committed to the Environment • Released first ever company-wide Avian and Bat Protection Program • Partnered with Bat Conservation International on groundbreaking research program at operating wind farm in Pennsylvania • Active participant in creation of California Voluntary Siting Guidelines • Member of U. S. Fish & Wildlife Wind Turbine Guideline Advisory Committee

How Wind Power Works How Wind Energy Works • Rotor converts wind energy into rotational shaft energy • Drive train and generator in nacelle generate electricity at 575 volts • Transformer at base of turbine steps up electricity to 34. 5 k. V • Collector lines carry electricity to collector substation • Collector substation steps up electricity to 69, 115, 230 or 500 k. V, depending on transmission line • Switching station delivers electricity to the grid Source: Green Power Oregon

Typical Wind Turbine Design

Benefits of Wind Energy and the Tule Wind Project • Domestic, clean source of energy • Reduces smog and greenhouse gases • Helps SDG&E generate renewable power locally • Helps California meet RPS goals – 20% by 2010 – 33% by 2030 • Brings local economic development to SD County

Economic Development Benefits • Job creation for ~150 people likely employed during construction • 10 permanent jobs created for operations and maintenance; prioritizing local hiring • Indirect economic benefits: significant increase in local business during construction and continuing through operations – Iberdrola Renewables’ Big Horn wind farm (WA) brought more than $1 million in local revenue to Klickitat County during the 9 -12 month period of construction – Iberdrola Renewables’ 221 MW Klondike wind farm (OR) purchased approximately $4 million in local construction materials, such as gravel and concrete, and created approximately $1 million of demand for local services, such as fuel, food and lodging

Tule Wind Project • On Bureau of Land Management, State, and tribal lands, in Mc. Cain Valley off I-8, north of existing Kumeyaay wind farm • Up to 200 MW • Estimated online in late 2010 • Less than 2% of project area will be the actual facilities footprint, allowing room for other multiple uses on site including hiking, camping, and off-road vehicle use • SDG&E very interested in purchasing power to meet RPS requirements

Transmission Diagram 10

Project Location Map 11

Draft Visual Simulation: Boulevard Three of the proposed turbines would be visible from this higher elevation viewing point southeast of I-8. The proposed turbines would not be visible from most locations within and around the town of Boulevard due to the area’s lower elevation and the 12 varied terrain surrounding it.

Draft Visual Simulation: Lark Canyon OHV A view of the proposed turbines from the Lark Canyon OHV staging area. 13

Draft Visual Simulation: Carrizo Gorge A view of the proposed turbines looking west/southwest from the Carrizo Gorge Wilderness Area. Existing turbines from the Kumeyaay Wind Project are already visible in 14 the background.

Draft Visual Simulation: Carrizo Gorge A view of the proposed turbines looking west from the Carrizo Gorge Wilderness Area. 15

Draft Visual Simulation: Mc. Cain Valley North A view of proposed turbines from the northern end of Mc. Cain Valley Road looking south/southeast. 16

Proposed Steel-Pole Concepts Iberdrola Renewables is using important firesafety design considerations for the transmission lines that include: • Using steel, “weathering” poles (versus wood poles) • Using longer insulators to support the wires • Will not use switching devices with moving parts (fused cutouts, switches, reclosers) on the poles • Designed for worst case conditions (the line will be no closer to the ground than 25 feet) • To the greatest extent practical, self- supporting poles will be used at locations where the line changes direction rather than guy wires and 17 anchors

Tule Project Plans-2009 • On-site environmental and meteorological studies ongoing • Modifications being made as study data comes in to determine layout with least environmental impact • Submission of revised Plan of Development early 2009; first step in initiation of joint NEPA/CEQA review • Project’s NEPA/CEQA review will include in-depth discussion of environmental impacts and proposed mitigation measures • Outreach planned to community, local businesses, environmental, and recreational groups prior to kickoff of NEPA scoping process; opportunities for public input throughout the process

Thank You! Ed Clark Director, Business Development Andy Linehan Permitting/Environmental Director tulewind@communityspeakup. com 866 -753 -5577