REGIONAL PLANNING PROJECT MEETING JULY 9, 2008

1. 230 kV LINE WALLA WALLA – WALLULA – Mc NARY500 kV LINE HEMINGWAY – CAPTAIN JACK – REGIONAL PLANNING MEETING REGIONAL PLANNING PROJECT MEETING JULY 9, 2008

2. 230 kV LINE WALLA WALLA – WALLULA – Mc NARY500 kV LINE HEMINGWAY – CAPTAIN JACK – REGIONAL PLANNING AND PROJECT RATING PROCESS

3. 230 kV LINE WALLA WALLA – WALLULA – Mc NARY500 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. 230 kV LINE WALLA WALLA – WALLULA – Mc NARY500 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. 230 kV LINE WALLA WALLA – WALLULA – Mc NARY500 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. 230 kV LINE WALLA WALLA – WALLULA – Mc NARY500 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. 230 kV LINE WALLA WALLA – WALLULA – Mc NARY500 kV LINE HEMINGWAY – CAPTAIN JACK – STUDY AREA

8. 230 kV LINE WALLA WALLA – WALLULA – Mc NARY 230 kV LINE WALLA WALLA – WALLULA – Mc NARY • PROJECT • BENEFITS • ALTERNATIVES STUDIED

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. 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. 230 kV LINE WALLA WALLA – WALLULA – Mc NARY

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

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

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

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. 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. 230 kV LINE WALLA WALLA – WALLULA – Mc NARY COMMENTS/QUESTIONS?

18. 500 kV LINE HEMINGWAY – CAPTAIN JACK 500 kV LINE HEMINGWAY – CAPTAIN JACK • PROJECT • BENEFITS • ALTERNATIVES STUDIED

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. 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. 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. 500 kV LINE HEMINGWAY – CAPTAIN JACK

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

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

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