California Transmission Planning Group Presentation to: WECC Transmission Expansion Planning Policy Committee June 16-17, 2010 TANC

Slide 2 Presentation Outline Overview Organization Planning Principles Goals and Objectives Stakeholder Process Work Schedule WECC Coordination Questions

Slide 3 CTPG Overview

Slide 4 CTPG: Who We Are A coalition comprised of all the entities within California responsible for transmission planning for the intrastate and interstate grids. Collaboration supplements the role that each California Balancing Authority has for planning to meet the needs of their service territory. Our members and participants include: o Publicly Owned Utilities: IID, TID, SMUD and LADWP o California ISO o Investor Owned Utilities: PG&E, SCE, and SDG&E o Other planning organizations: WAPA, TANC, and SCPPA

Slide 5 A Forum for Collaborative Planning The role of CTPG is to better coordinate transmission planning studies: o CTPG is NOT a decision-making or approval authority o CTPG is NOT a development group o New transmission identified in CTPG plan subject to further review and provisions of: o CAISO tariff (Investor Owned Utilities and some So. CA municipal utilities) o Public Utilities Code (CPUC need determination) o Local government codes (e.g., city counsel and district board approvals) o CEQA, NEPA and all other relevant State and Federal environmental laws Our study process is open and transparent: o Assumptions, methods, and results are documented and publicly available ( o Stakeholder meetings o Solicit and respond to written comments

Slide 6 CTPG Organization

Slide 7 CTPG Members and Participants California Independent System Operator (ISO) Imperial Irrigation District (IID) Los Angeles Department of Water and Power (LADWP) Pacific Gas and Electric (PG&E) Southern California Edison (SCE) Southern California Public Power Authority (SCPPA) San Diego Gas and Electric (SDG&E) Sacramento Municipal Utility District (SMUD) Transmission Agency of Northern California (TANC) Turlock Irrigation District (TID) Western Area Power Administration (Western)

Slide 8 CTPG Committees and Work Groups Executive Committee Legal Committee Technical Steering Committee Project Manager Assumptions/Scenario Team Writing Team Study Team

Slide 9 CTPG Planning Principles

Slide 10 CTPG Principles Coordinate planning among CAISO, POUs and IOUs -- taking advantage of planning windows – to develop a transmission plan for California. Develop and implement cost-effective transmission expansion to promote reliability, efficiency, and accessibility on a voluntary basis. Planning is not constrained by institutional practices that indicate upgrades be operated or controlled by a specific balancing authority and/or subject to specific contract or tariff arrangements. Perform studies to evaluate the reliability impacts, costs and benefits of proposed transmission projects. Create plans that adhere to NERC and WECC reliability standards. Implement and adhere to the nine FERC Order 890 planning principles. Support state policy objectives.

Slide 11 CTPG Goals and Objectives

Slide 12 Coordinating Transmission Planning for all of California Achieving a 33% RPS by 2020 requires significant additions and upgrades to transmission system Goal is to integrate the delivery of renewable energy to load centers with the reliability and operational needs of the grid Collaborative planning approach could significantly reduce the economic and environmental costs of achieving a 33% RPS

Slide 13 Study Objectives for 2010 Complete a statewide conceptual transmission plan by July 2010 and vet results with stakeholders Conceptual plan based on results of multiple scenarios with consideration of how likely each is. Identify the least regrets elements of the plan Goal is to have least regrets projects move forward to state siting and approval processes in early 2011 Remaining 33% RPS transmission needs subject to further study in 2011

Slide 14 CTPG Stakeholder Process

Slide 15 Stakeholder Participation is Essential Stakeholder meetings provide for an open and transparent process Study process coordinated with the Renewable Energy Transmission Initiative (RETI) and the broad range of interests the group represents CTPG is open to engaging other organizations (e.g. Desert Renewable Environmental Conservation Plan, Western Independent Transmission Group)

Slide 16 CTPG Work Schedule

Slide 17 CTPG 2010 three-phase timeline supports active stakeholder participation 2010 Study Plan DecJanFebMarAprMayJunJul AugSepOctNovDec Initial Study - Phase 1 Write Report 5 15 CTPG Stakeholder Meetings Stakeholder Comments Revised Study - Phase 2 Develop Study Plan Run Technical Studies 26 Write Report 9 4 RETI Transmission Work Group CTPG Stakeholder Meetings 20 2 Stakeholder Comments Final Conceptual Study - Phase 3 Develop Study Plan Run Technical Studies 1221 Write Report RETI Transmission Work Group CTPG Stakeholder Meetings Stakeholder Comments Validate/Refine Conceptual Plan Kick-off 2011 Plan CTPG Executive Committee Meetings Yellow = Draft Red = Final Blue = In person Schedule Under Review

Slide 18 Draft Phase 3 Report Published on June 14 at – Incorporates additional cases and includes stakeholder submitted alternatives Planning Stakeholder call before the end of June Currently reviewing Least Regrets methodology and performing analysis Another draft report will be published in July providing stakeholders additional opportunity to comment The final Phase 3 report date will support a stakeholder meeting and comment period. A modified phase 3 schedule will be published in the next few weeks CTPG Phase 3 Schedule

Slide 19 CTPG/WECC Coordination

Slide 20 Presently CTPG transmission planning activities is being reported through the PCC. CTPG will continue to develop processes and protocols on how to coordinate transmission planning work with WECC. CTPG will plan to come back to future TEPPC meetings to discuss coordination issues further. CTPG WECC Coordination

Slide 21 Questions?