Transmission Project Sponsors Big Tent Meeting November 19

Transmission Project Sponsors Big Tent Meeting November 19, 2008 Portland, Oregon Welcome Darrell Gerrard - Pacifi. Corp Order 2004 Sensitive 1

Order 2004 Sensitive Big Tent Meeting November 19, 2008 Embassy Suites Hotel – Portland, Oregon 9: 00 a. m. – 12: 00 noon Agenda 9: 00 Welcome – Darrell Gerrard Background from July 2008 Session Goals Supporting Coordination 9: 15 TCWG Work Plan- What has been accomplished since July 2008 – Ben Morris 9: 30 Individual Project Updates (By Project Sponsor) 11: 30 Next Steps – Darrell Gerrard 11: 45 Inputs and Commentary – Sponsor Panel 2

Order 2004 Sensitive Goals Supporting Coordination n Develop ideas to ensure robust proposals brought to sub-regional & regional engagement n Avoid duplication of study work and facilities constructed n Ensure efficient use of resources, siting, permitting, environmental n Regional view of transmission requirements necessary long term n NW Transmission Hub concept formulated n Optimize current expansion plans from commercial as well as technical views n Open and transparent FERC Order 890 compliant planning n Improved certainty of project Phase 2 ratings expected via WECC process 3

Order 2004 Sensitive Background n Purpose: status update for several proposed projects significant to Northwest n All projects currently in or will be in WECC Phase 1 Rating Process n Began January 2008 with Transmission Coordinated Work Group (TCWG) n Goal is submission of Phase 1 reports in Q 4 n Sponsors are reasonably on schedule n Each project sponsor will be submitting an individual Project Phase 1 Rating report to WECC n Expectations are that projects enter Phase 2 relatively close together in the fourth quarter of 2008 or Q 1 2009 4

WECC Phase 1 and Phase 2 Coordination Ben Morris - PG&E Consultant Order 2004 Sensitive 5

Order 2004 Sensitive Coordination n A number of project sponsors are planning construction in the Northwest in the 2010 -2015 period and the study work is being coordinated. Their projects have the following characteristics: Currently in (or soon to be in) WECC Phase 1 Rating process Planning to submit their Comprehensive Progress Reports in 4 Q, 2008 and 1 Q, 2009 ¨ Agree to use a common study methodology ¨ ¨ n Projects that meet such characteristics include: ¨ ¨ ¨ n Walla-Mc. Nary (Pacifi. Corp) Hemingway-Captain Jack (Pacifi. Corp) West of Mc. Nary Project (BPA) I-5 Corridor Reinforcement BPA) Idaho-Northwest Project (Idaho Power and Others) Southern Crossing Project (PGE) Canada-Northwest-California (CNC) Project (PG&E and Others) CNC Project - Devil’s Gap Interconnection (Avista) Dry Creek-Coyote (Avista) Northern Lights Project (Trans. Canada) West Coast Cable (Sea Breeze) The project sponsors have formed the Transmission Coordination Work Group (TCWG). 6

Order 2004 Sensitive New Transmission Projects Being Planned in Coordination Planned Operation: 2010 – 2015 To Edmonton/Heartland Selkirk Sub BPA West of Mc. Nary Generation Integration Project Spokane Area Sub and Converter Northern. Lights DC Sea Breeze WCC PG&E et. al CNC Project Station X BPA I-5 Corridor Station Z Mc. Nary Big Eddy PGE Southern Crossing PG&E, et. al CNC Project Pacifi. Corp Walla NEO Station Idaho Power Hemingway Boardman Legend: PG&E (AC or DC) PGE (500 k. V) Capt. Jack Idaho Power (500 k. V) Avista Corp (230 k. V) BPA (500 k. V) Northern. Lights (DC) Sea Breeze WCC (DC) Pacifi. Corp/Idaho Gateway West Hemingway Pacifi. Corp (500 or 230 k. V) Pacifi. Corp Hemingway Capt. Jack Midpoint Borah To SF Bay Area 7

Order 2004 Sensitive Transmission Projects in Regional Planning and/or Phase 1 Planned Operation: 2010 – 2015 Sponsor/ Participants Project Name Pacifi. Corp Walla to Mc. Nary Pacifi. Corp Online Date Voltage Capacity WECC Milestones * 2010 Single 230 k. V AC 400 MW RP Initiated – 11/2007 Ph 1 Initiated -- 10/2008 Hemingway to Capt. Jack (part of Gateway West) 2014 Single 500 k. V AC 1, 500 MW RP Initiated – 11/2007 BPA West of Mc. Nary Generation Integration Project 20122013 Single 500 k. V AC and 500 k. V Sub/ Single 500 k. V AC 1, 500 MW each RP Completed – 02/2008 Ph 1 Pending BPA I-5 Corridor Reinforcement Project 2015 500 k. V Sub/Single 500 k. V AC 1, 500 MW RP Completed – 03/2008 Ph 1 Pending Idaho Power and Others Hemingway-Boardman 2013 Single 500 k. V AC 1, 300 MW RP Completed – 05/2008 Ph 1 Initiated – 02/2008 PGE Southern Crossing 20132014 Single 500 k. V AC 1, 500 MW RP submitted -- 10/2008 Ph 1 submitted – 10/2008 PG&E and Others Canada – Northwest California (CNC) 2015 Double 500 k. V AC and HV DC 3, 000 MW RP Completed – 11/2008 Ph 1 Initiated – 10/2007 Avista Corp Avista Interconnection to CNC - Spokane Area Upgrades 2015 500 k. V Sub and local 230 k. V upgrades 500 MW RP Submitted – 11/2007 Ph 1 Initiated – 11/2007 Avista Corp Dry Creek -Coyote 230 k. V 2015 230 k. V 500 MW RP and Ph 1 Initiated in 01/08 Trans. Canada Northern. Lights 2015 +/- 500 k. V DC 2, 000 MW RP Completed – 01/2008 Ph 1 Initiated – 01/2008 Sea Breeze West Coast Cable (WCC) 2015 +/- 600 k. V DC 1, 600 MW Ph 1 - Initiated – * RP = WECC Regional Planning Process Ph 1 = WECC Rating Process: Phase 1 12/2006 8

Order 2004 Sensitive Transmission Coordination Work Group (TCWG) n Group formed to ¨ ¨ ¨ n Establish consistent assumptions/methods for Project Sponsors Provide feedback on the Project Sponsor study work Explore opportunities for synergies among projects Activities ¨ Develop consistent assumptions, study scenarios, base cases n Identify and establish consistent assumptions for the analysis of Hubs Review and comment on Project Sponsor study plans, assumptions, study results and Comprehensive Progress Report ¨ Monthly meetings through study completion ¨ n n Met monthly since January 2008 (next meeting: December 9 conference call) Participation – Approximately 30 meeting attendees and more than 80 on the correspondence list Representatives from Phase 1 projects Other stakeholders with interest in providing feedback on technical studies ¨ Other parties interested in the development of the projects ¨ ¨ 9

Order 2004 Sensitive System Parameters n 2015 HS Regional Gen/Loads Region Alberta Gen (MW) Demand (MW) 9433 9535 BC 11576 8341 PNW 31818 26305 Idaho 4904 3771 Montana 3252 1843 25479 28521 No. Ca n Projects coordinated within the TCWG are designed to access resources in BC, Alberta, Montana, the PNW and Northeastern CA/NV +3000 MW +2000 MW +4500 MW +3000 MW +1500 MW 10

Order 2004 Sensitive Project Sponsor/TCWG Phase 1 Accomplishments n Developed Study Plan n Developed Study Assumptions Identified the location and capacity of new incremental generation to be accessed with the proposed projects ¨ Listed major paths to be monitored and their target flows ¨ Identified the projects in the WECC Phase II Rating process to be modeled in the cases ¨ Established set of critical contingencies to be studied ¨ n Developed Base Cases: ¨ Seasonal cases: n n ¨ 2015 Heavy Summer (North-South Flow) 2017 Heavy Winter (South-North Flow) 2011 Light Spring (East-West Flow) 2010 Light Autumn (East-West Flow) Reviewed and adjusted Load and Generation balance as necessary 11

Order 2004 Sensitive Project Sponsor/TCWG Phase 1 Accomplishments (cont’d) n Conducted Studies without and with Project Power flow ¨ Transient Stability ¨ Voltage Stability ¨ n A number of transmission projects converge in northeast Oregon Evaluated the technical merits of substation where these projects could potentially terminate ¨ New Substation – NEO Station ¨ n n Preliminary NEO Station arrangements have been developed and will evolve during WECC Phase 2 Communicated Study Progress and Results Each of the Projects has presented the results of their nonsimultaneous rating study work at the TCWG Meeting ¨ Participated in joint Big Tent meetings ¨ 12

Order 2004 Sensitive TCWG Phase 2 Coordination n Project Sponsors have agreed that TCWG will function as the Phase 2 Project Review Group No need to have separate review teams for individual projects ¨ Separate Phase 2 meetings can be held at the Project Sponsors’ discretion ¨ n Entities who are not part of the TCWG and have interest in any of the TCWG projects should contact the Project Sponsor to become part of TCWG n Coordination Activities Consistent assumptions ¨ Discuss study results involving system interactions ¨ 13

Order 2004 Sensitive TCWG Phase 2 Coordination n Meetings ¨ Regular monthly meetings n n ¨ January 21 February 18 TCWG is envisioned to function until the last project completes Phase 2 14

Walla – Mc Nary Tom Tjoelker - Pacifi. Corp

Order 2004 Sensitive Project Overview n Conceptual Major Project Elements ¨ Walla – Wallula 230 k. V Line ¨ Wallula – Mc Nary 230 k. V Line n Potential Bidirectional rating: ¨ 400 MW East-to-West ¨ 400 MW West-to-East n Project Operating Date: Late 2010 n Project Website: MAP www. pacificpower. net/energygateway. 16

Order 2004 Sensitive Objectives n Provides up to 400 MW of new transmission capacity both East-to. West and West-to-East n Improves transmission reliability to Wallula area n Provides transmission capacity for new wind resources in Walla area n Facilitates future interconnection of other regional transmission projects such as proposed by Avista 17

Order 2004 Sensitive Conceptual One-Line 18

Order 2004 Sensitive WECC PHASE Rating Process n Complete Phase I Proposed Rating Report – Feb. 2009 n Initiate Phase II Planned Rating - Apr. 2009 n Complete Phase II Planned Rating – June 2009 19

Order 2004 Sensitive Project Update (since July, 2008) n Regional Planning Report issued October 6, 2008 n Phase I WECC Rating Process initiated October 9, 2008 n Single-circuit performs well n Working with Avista & BPA on potential regional transmission projects n Double-circuit may be built as part of joint project with Avista n RAS needed for higher wind penetrations 20

Order 2004 Sensitive Project implementation Schedule n WECC rating studies 2008 - 2009 n Permitting and Land acquisition 2008 - 2009 n Engineering 2008 - 2009 n Construction Late 2009 n Operations Late 2010 21

Hemingway – Capt. Jack Tom Tjoelker - Pacifi. Corp

Order 2004 Sensitive Project Overview n Conceptual Major Project Elements ¨ n Hemingway – Capt. Jack 500 k. V Line Potential Bidirectional rating: ¨ 1500 MW East-to-West ¨ 1500 MW West-to-East n Project Operating Date: 2014 n Project Website: MAP www. pacificpower. net/energygateway. 23

Order 2004 Sensitive CONCEPTUAL ONE-LINE HEMINGWAY – CAPT JACK 24

Order 2004 Sensitive Objectives n Support West side load growth n Address renewable portfolio standards n Potentially facilitates future interconnection of other regional transmission projects 25

Order 2004 Sensitive Project implementation Schedule n WECC rating studies 2009 n Permitting and Land acquisition 2010 - 2011 n Engineering 2010 - 2011 n Construction Late 2013 n Operations Late 2014 26

West of Mc. Nary Generation Integration Project (WOMGIP) Kyle Kohne - BPA 27

Order 2004 Sensitive Project Overview n n Major Elements n Part 1: Construct a new Mc. Nary – John Day 500 k. V transmission line (~79 mi) n Part 2: Construct a new 500 k. V substation (“Station Z”) near Goldendale, WA, and a 500 k. V line from Station Z to BPA’s Big Eddy substation near The Dalles, OR. (~30 mi) Planned Rating: n West of Mc. Nary: 4500 MW n West of Slatt: 5500 MW n West of John Day: 3450 MW Proposed Project Operating Date n Part 1: 2012 n Part 2: 2013 Project Website: n http: //www. columbiagrid. org/WMRPoverview. cfm 28

Order 2004 Sensitive Objectives n Enable BPA to meet Network customer load growth from new resources and serve point-to-point transmission requests across multiple congested east-west transmission paths along the Washington – Oregon border. n Enable BPA to interconnect additional wind generation in Eastern Washington and Eastern Oregon. n Increase system reliability to serve Portland area load. 29

Order 2004 Sensitive Project Update (since July 2008) n Regional Planning Completed (February 2008) n BPA plans to initiate the WECC Phase One Rating Process in January 2009. n Funds approved to begin preliminary design and NEPA work. n Public Involvement effort reinitiated for Part 1 (Mc. Nary – John Day). n Both parts of the project will be included in BPA’s Network Open Season (NOS) process. 30

Order 2004 Sensitive Project Implementation Schedule n n Mc. Nary-John Day 500 -k. V n Project will take approximately 3. 5 years from start to energization n Environmental Process / Design – 0. 5 years n Material Procurement / Construction – Additional 3 years Big Eddy-Station Z 500 -k. V (includes Station Z) n Project will take approximately 5 years from start to energization n Environmental Process / Design – 2 years n Material Procurement / Construction – Additional 3 years 31

I-5 Corridor Reinforcement Kyle Kohne - BPA 32

Order 2004 Sensitive Project Overview n n Major Project Elements n Construct a new 500 k. V Substation near Castle Rock, WA. n Develop a 500 k. V yard at the existing Troutdale Substation in Troutdale, OR. n Construct a new 500 k. V transmission line between these substations (approximately 70 miles). n Alternative: Construct new 500 k. V line between new Castle Rock substation and Pearl substation instead Planned Rating n n Proposed Operating Date n n South of Allston: Approximately 1300 MW increase 2015 Project Website: n http: //www. columbiagrid. org/I 5 CRPoverview. cfm 33

Order 2004 Sensitive Objectives n Relieve congestion along the I-5 corridor transmission path south of Paul Substation. n Enable BPA to meet Network customer load growth from new resources and serve point-to-point transmission service requests which impact this path. n Enable BPA to interconnect additional new resources which are being planned along the I-5 Corridor. n Maintain reliable service to growing loads in Portland vicinity. n Reduce dependence on existing RAS while maintaining transmission system reliability. 34

Order 2004 Sensitive Project Update (since July 2008) n Regional Planning Completed (March 2008) n BPA plans to initiate the WECC Phase One Rating Process in February 2009. n Funds approved to begin preliminary design and NEPA work. n This project will be included in BPA’s Network Open Season (NOS) process. 35

Order 2004 Sensitive Project Implementation Schedule n I-5 Corridor Reinforcement Project n Project will take approximately 6 years from start to energization for either alternative n Environmental Process / Design – 3 years n Material Procurement / Construction – Additional 3 years 36

Order 2004 Sensitive BPA Network Open Season Update n Cluster Study results submitted to BPA Marketing on 10/31/08 n 153 PTSA’s submitted totaling 6, 410 MW of transmission requests n WOMGIP and I-5 Corridor Reinforcement are part of the portfolio of projects for meeting the requests n BPA will host Customer Forum on 11/20/08 to present cluster study results (http: //www. transmission. bpa. gov/customer_forums/) n Commercial Infrastructure Analysis to be completed by 12/31/08 n Agency embedded rate determination on portfolio of projects no later than 2/16/09 37

Hemingway to Boardman Dave Angell - Idaho Power 38

Order 2004 Sensitive Project Overview n n Project Elements ¨ Single 500 k. V AC circuit from Hemingway, Idaho to Boardman, Oregon ¨ Reactive compensation at Sand Hollow station Bidirectional rating: ¨ 1300 MW West to East ¨ 800/1400 MW East to West n Project Operating Date: Summer 2013 n Project Websites: http: //www. boardmantohemingway. com/ http: //www. idahopower. com/newsroom/projnews/hemingway_boardman/default. htm 39

Order 2004 Sensitive Objectives n Meet transmission requirements of Idaho Power Integrated Resource Plans (IRP) ¨ 225 MW of northwest resource import n Relieve congested transmission path n Satisfy OATI obligation for transmission service requests n Connect resource centers to load centers (hub and spoke concept) ¨Transmission to forecasted load growth areas ¨Transmission to forecasted resources areas 40

Order 2004 Sensitive Plan of Service n 54 mile 500 k. V line from Hemingway to Sand Hollow reactive station. n Sand Hollow – series capacitor size for 50% compensation of line reactance n 254 mile 500 k. V line from Sand Hollow to Boardman Power Plant n Boardman Power Plant – shunt capacitor bank 41

Order 2004 Sensitive Project Update (since July, 2008) n Permitting ¨ Oregon Energy Facility Siting Council Notice of Intent 8/27/2008 ¨ BLM Notice of Intent (NEPA process) 9/11/2008 n Comprehensive Progress Report ¨ West to East n Hemingway – Boardman 1300 MW n Idaho to Northwest Path 758 MW ¨ East to West independent of other northwest projects n Hemingway – Boardman 838 MW n Idaho to Northwest Path 1766 MW ¨ East to West with Gateway West, WOMGIP, Southern Crossing n Hemingway – Boardman 1400 MW n Idaho to Northwest Path 2417 MW 42

Order 2004 Sensitive Project Implementation Schedule n WECC Regional Planning 7/2007 – 5/2008 n WECC Phase 1 Rating 2/2008 – 12/2008 n WECC Phase 2 Rating 1/2009 – 12/2009 n Permitting and Land acquisition 1/2008 – 2011 n Engineering 1/2008 – 2011 n Construction 2011 – 5/2013 n Operation 5/2013 43

Southern Crossing Philip Augustin - Portland General Electric

Order 2004 Sensitive Project Overview n Conceptual Major Project Elements ¨ 500 k. V transmission line (215 miles) ¨ 500/230 k. V substations n Potential rating: ¨ 1500 MW (East to West )winter ¨ 1400 MW (East to West )summer n Project Operating Date: ¨ 2013 -2014 if staged n Project Website: ¨ http: //www. oatioasis. com/pge/index. html ¨ http: //www. nwpp. org/tcwg/

Order 2004 Sensitive Objectives n The Project was initiated in response to Generation Interconnection Requests for network service. n The Project will increase transmission capacity to PGE’s service territory by increasing the East to West transfer capability of the PNW grid n The Project is designed to integrate existing PGE generation resources (i. e. , Boardman and Coyote Springs) and up to 800 MW of additional renewable and other resources. 46

Order 2004 Sensitive §Conceptual Plan of Service: q HVAC facilities from Boardman to Coyote Springs q HVAC facilities from Boardman to Olallie q HVAC facilities for Bethel to Olallie q Series compensation between Boardman to Olallie, and between Bethel to Olallie 47

Order 2004 Sensitive Project Update (since July, 2008) n Submitted Regional Planning Project Report to WECC Planning Coordination Committee and Technical Studies Subcommittee on October 30 th for 30 day review. n Studies demonstrate the Project’s effectiveness during heavy load conditions occurring either in the winter or late spring / early summer. ¨ The east – west proposed rating was determined using a WECC 2017 Heavy Winter case, and a WECC 2015 Heavy Summer case. Generation in the Northwest was dispatched to achieve 1, 500 MW of flow on Southern Crossing in the winter and 1, 400 MW in the summer meeting WECC Reliability Criteria. n Presented preliminary WECC Phase 1 study results to TCWG n Begun critical issues analysis work for proposed ROW n Signed a Memorandum of understanding with Idaho Power Co. 48

Order 2004 Sensitive Generation Dispatch Studied 49

Order 2004 Sensitive Phase 1 Study Load Assumptions Heavy Winter 2017 Name AGC Status / Area Slack PGE TOTAL NORTHWEST Slack output: 614 MW Gen MW Max Gen MW Load MW 2, 603 3, 673 4, 284 30, 685 48, 144 33, 258 Heavy Summer 2015 Name AGC Status/ Area Slack PGE TOTAL NORTHWEST Slack output: 527 MW Gen MW Max Gen MW Load MW 2, 451 3, 673 4, 330 32, 995 48, 182 30, 021 50

Order 2004 Sensitive Phase 1: Preliminary Impacts existing paths observed Winter all lines in service Path Name and Number Pre-Project Summer all lines in service Post-Project Pre-Project Post-Project West of Cascades South (E-W) 7814 6870 6902 5972 Pacific DC Intertie (N-S) -963 2167 California Oregon Intertie (N-S) -1474 -1119 3368 3329 South of Allston (N-S) -1118 -1237 1296 1149 North of John Day (N-S) -1300 -1261 6446 6528 West of Slatt (E-W) 1547 844 4185 3313 West of Mc. Nary (E-W) 1475 1159 2459 2158 51

Order 2004 Sensitive Project implementation Schedule Task Name 2008 Duration WECC Phase 1 & Regional Review • Comprehensive Progress Report (CPR) -Identify the non-simultaneous and known interactions of the project • CPR reviewed by PCC & TSS membership • Informal reports are presented at TSS meetings • Letter to TSS and PCC requesting Phase 2 Status WECC Phase 2 • Identify the simultaneous transfer capability for project • Address mitigations for any adverse impacts to existing system Star t 12 months Q 1 2008 24 months Q 1 2009 Finis h Q 1 Q 2 Q 3 2010 2009 Q 4 Q 1 Q 2 Q 3 Q 4 2008 Q 4 2010 52

Order 2004 Sensitive Project implementation Schedule n WECC Phase Rating Process ¨ Phase 1 Comprehensive Progress Report December 2008 ¨ Phase 2 Rating Report Fourth Quarter 2010 2009 Task Name Duration WECC Phase 3 • Definitive commercial agreements • Preliminary Engineering • EFSC permitting process • Land Acquisition • Engineering • Procurement • Construction • Release To Operation Start 2010 2011 2012 2013 2014 Finish. Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 2 2013 or 54 to 72 months 2013 – Q 1 Q 2 2009 2014 53

Canada / Pacific Northwest to Northern California Transmission Project Stakeholder Meeting, Portland, November 19, 2008 Steve Metague - PG&E 54

Order 2004 Sensitive Project Overview n Project steering team: Avista Corp, BCTC, Pacifi. Corp, PG&E n Potential Bidirectional rating: ¨ 3000 MW North to South ¨ South to North rating to be determined n Project Operating Date: late 2015 n Project Website: http: //www. pge. com/canada/ Today’s presentation: n Project Plan of Service. n Summary of WECC Phase 1 N-S rating results. n Schedule for S-N WECC Phase 1 and WECC Phase 2 rating. n Overall Project Schedule. 55

Order 2004 Sensitive Project Objectives n Enhance access to significant incremental renewable resources in Canada and the Pacific Northwest. n Improve regional transmission reliability. n Provide market participants with beneficial opportunities to use the facilities. n Use WECC’s open stakeholder planning process. 56

Order 2004 Sensitive Plan of Service n Initial Plan of Service: ¨ HVAC facilities from Selkirk-Devil’s Gap. NEO Station ¨ HVDC facilities from NEO Station to Collinsville with possible third terminal at Cottonwood ¨ HVAC facilities from Collinsville to Tracy ¨ Voltage support at the interconnecting substations ¨ Remedial Actions – tripping of generation scheduled on the project for outages of the project facilities n Project is dependent on other projects to be installed in the 2010 -2015 period. Such projects: ¨ accommodate CNC Project Sponsors’ use of CNC, or ¨ increase AC system strength to support AC to DC conversion at the terminal stations 57

Order 2004 Sensitive WECC Phase 1 Rating Process Update n Regional Planning Report completed and submitted – November 2007. n WECC Phase 1 has been coordinated with the Transmission Coordination Work Group (TCWG). n Three generation scenarios were developed to support delivery of 3000 MW of renewable resources in British Columbia, the Pacific Northwest, or Northern California/Nevada: ¨ 3000 MW of renewable generation from BC n CNC project loaded to 3000 MW south of Selkirk ¨ 1500 MW of renewable generation from both BC and the Pacific Northwest n CNC project loaded to 3000 MW south of the NEO Station ¨ 1500 MW of renewable generation from both BC and Northern California/Nevada n CNC project loaded to 3000 MW south of the Cottonwood Area Substation. n 2015 Heavy Summer base case has been used modeling the system with and without the CNC Project. n The WECC Phase I rating studies conducted to establish a north-to-south rating show: Ø The initial Plan of Service is viable. Ø Rating for the project segments is 3000 MW, N-S. Ø Other proposed projects at Neo Station needed to support the HVDC terminal. Ø Other proposed projects at Cottonwood needed to support the potential HVDC terminal. Ø Generation tripping of power scheduled on CNC (up to 3000 MW) is required for CNC facility outages. 58

Order 2004 Sensitive WECC Rating Process Next Steps n Phase 1 Comprehensive Progress Report (CPR) ¨ Project Sponsors to e-mail the draft to Stakeholders for comment by 12/1/2008. n Stakeholders include TCWG members and Big Tent attendees who request a draft copy. ¨ Stakeholder comments requested by 12/10/2008. ¨ Final CPR and request to move to Phase 2 will be submitted to WECC by 12/16/2008. n Project sponsors are scheduled to initiate the WECC Phase 1 rating process to establish a south-to-north rating in January 2009 ¨ Studies will be coordinated through the TCWG. n Project sponsors expect to initiate the WECC Phase 2 rating process 60 -days after submitting the Phase 1 CPR to WECC (mid-February). n Entities wanting to participate in the WECC Phase 1 (S-N) or Phase 2 (N-S) process should join the TCWG through the Northwest Power Pool website: http: //www. nwpp. org/tcwg/ ¨ Please copy Ben Morris at benmorris@astound. net 59

Order 2004 Sensitive WECC Rating Process Activities n Previous activities ¨ Initiated Regional Planning 12/16/2006. ¨ Submitted Regional Planning Report 11/1/2007. ¨ Completed load and resources, technical feasibility and economic screening analysis. Reports posted on project website 11/1/2007. ¨ Initiated Phase 1 Rating Process 10/31/2007. ¨ WECC Phase 1 Rating Process Stakeholder Meetings n January 24, 2008 n July 18, 2008 n Today ¨ TCWG monthly meetings. n Planned activities ¨ WECC Phase 1 Draft Comprehensive Progress Report (CPR) out for comment – 12/1/2008. ¨ Stakeholder comments requested by 12/10/2008. ¨ Final CPR and request to move to Phase 2 to be submitted to WECC by 12/16/2008. ¨ Initiate the WECC Phase 1 rating process to establish a south-to-north rating in January 2009. ¨ Initiate the WECC Phase 2 rating process – 2/2009. ¨ Complete WECC Phase 2 rating process – Q 3/2010. 60

Order 2004 Sensitive 61

Avista Corporation 500/230 k. V Interconnection with the Proposed Canada / Pacific Northwest to Northern California Transmission Project Scott A. Waples - Avista Corporation

Order 2004 Sensitive Project Overview n PG&E-CAN 500 k. V Line Major Project Elements: 500/230 k. V interconnection at Devil’s Gap ¨ 230 k. V Phase Shifting Transformers ¨ 2 -230 k. V interconnections to the Spokane Area 230 k. V Grid Westside 230 -115 k. V ¨ n Devil’s Gap 500 -230 -115 k. V Potential Bidirectional rating: ¨ 500 MW n Project Operating Date: 2015 n Project Website: NWPP. org/tcwg/ Sunset 230 -115 k. V Beacon 230 -115 k. V Major Highways Existing 230 k. V Proposed 230 k. V Existing 115 k. V 63

Order 2004 Sensitive Objectives and Resources n The Avista interconnection to the PG&E Canada to Northern California 500 k. V Project will provide up to 500 MW of access from the “Main Stem” Project to the Avista transmission system, providing access to renewable resources in the Northwest and Canada. n The interconnection will also provide access to the “Main Stem” 500 k. V Project for resources, including renewables, located within the Avista service territory. n The project may also allow Avista to integrate some of its existing thermal resources to its loads over its own transmission, and may allow for additional imports of economy energy into the Avista system. n Potential wind resources that may require export capacity from various locations on the Avista system include, but are not limited to, wind farms near Spokane, Othello and Clarkston, Washington, as well as Grangeville and Lewiston, Idaho. Avista presently has 10 pending interconnections. 64

Order 2004 Sensitive Project Update (since July, 2008) n Avista has completed the technical study work to support the WECC Regional Planning / WECC Phase I Rating submittal as projected in July. The studies indicate that the interconnection is feasible and that there are no adverse impacts to neighboring systems from this interconnection. n Avista anticipated a joint Regional Planning / Phase I submittal for the study work, and a first draft of this report was provided to the TCWG at its October 23, 2008 meeting in Portland, Oregon. TCWG recommended that the draft report be split into two submittals. Avista has incorporated comments received at the TCWG meeting into the Regional Planning Report and has submitted that report to WECC. Comments on the report are due December 12, 2008. The Phase I report should be submitted to WECC within the next six weeks. n Avista is also working with other PG&E Project Teams (Permitting and Public Affairs) for the PG&E Canada to California project. 65

Order 2004 Sensitive Project implementation Schedule n WECC Regional Planning December, 2008 n WECC Phase I Rating studies December, 2008 n WECC Phase II Rating studies 2009 n Permitting and Land acquisition 2013 -2014 n Engineering 2013 -2014 n Construction 2014 -2015 n Operations 2015 66

Avista Corporation 230 k. V Dry Creek – (Walla – NEO ) – Coyote Springs Transmission Project Scott A. Waples - Avista Corporation

Order 2004 Sensitive Project Overview n Major Project Elements: ¨ n Dry Creek (Walla – NEO) Coyote Springs 230 k. V Line n Project Operating Date: 2015 n Project Website: NWPP. org/tcwg/ Potential Bidirectional rating: ¨ 500 MW Dry Creek Walla Boardman/CS II WA OR Major Highways Proposed 230 k. V 68

Order 2004 Sensitive Objectives and Resources n The interconnection will allow Avista access to other renewable resources in the Northwest as well as in Canada. n The project may also allow Avista to integrate some of its existing thermal resources to its loads over its own transmission, and may allow for additional imports of economy energy into the Avista system. n Potential wind resources that may require export capacity from various locations on the Avista system include, but are not limited to, wind farms near Spokane, Othello and Clarkston, Washington, as well as Grangeville and Lewiston, Idaho. Avista presently has 10 pending interconnections. 69

Order 2004 Sensitive Project Update (since July, 2008) n Avista has begun the technical study work to support the WECC Regional Planning and WECC Phase I Rating submittals. The studies that have been completed indicate that the interconnection is feasible and that there are no adverse impacts to neighboring systems from this interconnection. The project may require phase shifting transformers as well as series compensation. The project may, at a future date, also interconnect at the NEO Station. n Avista has formally approached Pacifi. Corp to see if this project and the Pacifi. Corp Walla – Mc. Nary (NEO) project might be able to utilize a common right-of-way or common transmission structures, and the two companies are now engaged in such discussions. n Avista will be hosting a kickoff meeting for the WECC Regional Planning and Phase I Study efforts for this project in the near future. Please stay tuned! 70

Order 2004 Sensitive Project implementation Schedule n WECC Regional Planning January, 2009 n WECC Phase I Rating studies January, 2009 n WECC Phase II Rating studies 2009 n Permitting and Land acquisition 2013 -2014 n Engineering 2013 -2014 n Construction 2014 -2015 n Operations 2015 71

Northern. Lights Connecting Alberta and the Pacific Northwest Russ Hantho – Bill Hosie Trans. Canada Corporation

Order 2004 Sensitive Northern. Lights Overview n HVDC transmission line connecting the Edmonton area with northern Oregon n 3000 MW line design capacity n 2000 MW bidirectional capacity n 900 miles n $2. 2 billion (‘ 08$), 2000 MW initial capacity n Edmonton AB BC SK Calgary Operational in 2015 Spokane WA Buckley MT ID OR Northern. Lights AC or DC Connectors Converter Project web site: http: //www. transcanada. com/company/northernlights. html 73

Order 2004 Sensitive Northern. Lights n Creates a bi-directional intertie between Alberta and the Pacific Northwest n Enhances regional resource reliability (AESO’s 2007 Market Roadmap) n Improves regional transmission reliability n Enhances regional wind capacity factors through geographic diversity n Provides market participants with beneficial opportunities to use the facilities n Provides opportunities for markets to access large scale renewable energy resources – wind, hydro, IGCC with sequestration & nuclear 74

Order 2004 Sensitive Generation Potential in Alberta 75

Order 2004 Sensitive Northern. Lights Project Progress n Transmission Planning & WECC ¨Participation at NTAC, RMATS, Columbia Grid and NTTG ¨WECC Regional Planning Process 2007 ¨WECC Path Rating Process 76 n BPA Interconnection Agreement n INL Study n Alberta Corridor Analysis n AESO Open Houses 76

Order 2004 To Buckley Milo Alberta Interconnection

Order 2004 Sensitive Buckley Area Interconnection “Buckley New” 78

Order 2004 Sensitive Project Update (since July, 2008) n Edmonton to Calgary System Developments ¨ 40 open houses between June and December 2008 held by the AESO with Trans. Canada participation n Phase 1 Comprehensive Progress Report tabled with TCWG Monday for comment ¨ Schedule to submit to the WECC December 1, 2008 n Phase One Studies ¨ 2000 MW bidirectional power flow, reactive margin and stability studies ¨ Results are all within reliability criteria standards 79

Order 2004 Sensitive Project implementation Schedule n WECC rating studies 2009 n Permitting and Land acquisition 2009 - 2012 n Engineering 2009 - 2012 n Construction 2012 - 2015 n Operations 2015 80

West Coast Cable Juan de Fuca Cable 2 Triton North Cable Triton Central Cable Triton South Cable Sea Breeze Pacific - RTS Projects 81

Order 2004 Sensitive 82

Order 2004 Sensitive Juan de Fuca Cable 2 2013 +/- 300 k. V DC VSC 1, 100 MW RP – submitted 11/2008 West Coast Cable (WCC) 2015 +/- 600 k. V DC 1, 600 MW Ph 1 – Initiated 12/2006 +/- 300 k. V DC VSC +/- 150 k. V DC VSC +/- 300 k. V DC VSC 2, 200 MW 550 MW 2, 200 MW 3 RP’s – submitted 11/2008 Triton Central Triton North Triton South Cables 2014 2016 2017/2019 83

Order 2004 Sensitive 84

Order 2004 Sensitive SBP-RTS Projects n West Coast Cable ¨ In Phase 1 – Power Flow runs completed ¨ Stability runs in process n Juan de Fuca Cable 2 Triton North Cable n ¨ ¨ ¨ ▀ Triton Central Cable ▀ Triton South Cables Regional Planning reports - for all studies have been completed and are currently being submitted. Phase 1 – Power Flow cases have been run in Power. World using the TCWG agreed upon 2015 HS TCWG Base Case Have been converted to PTI format. ABB has confirmed models and has verified conversions. Models are available on the NWPP Website. 85

Order 2004 Sensitive Questions? 86

Order 2004 Sensitive Next Steps and Timelines for TCWG n Joint Big Tent Meeting Nov 19, 2008 n Submit Phase 1 CPR to PCC and TSS (Project Sponsor) n Phase 2 Studies (Project Sponsor and TCWG) Dec 2008 and on n TCWG will be used for Phase 2 study reviews Dec 2008 and on Q 4 2008 87

Order 2004 Sensitive Q&A

Order 2004 Sensitive Inputs and Commentary Sponsor Panel 89