1 Sunrise Powerlink Project Update Orange County Business Council March 10, 2009

2 Project Background Sunrise Powerlink was proposed in 2005 to provide 3 primary benefits to customers….  Improve electric system reliability  Provide access to renewable energy resources in the Imperial Valley  Reduce energy costs for SDG&E customers

3 Project Description  120-mile electric transmission line from Imperial County to San Diego  Project begins at the SDG&E Imperial Valley Substation, continues to a new substation southeast of Alpine, then continues north west to the SDG&E Sycamore Canyon Substation at East Miramar  Sunrise will have the capacity to carry 1,000 megawatts, enough to power 650,000 homes  Project cost -- $1.8 billion

4 Approval Process  SDG&E’s application submitted to the California Public Utilities Commission (December 2005)  Public hearings, environmental review, regulatory scrutiny (December 2005 to December 2008)  More than 43 CPUC and SDG&E public meetings held throughout San Diego County  More than 2,500 pages of official comments submitted on the 11,000-page EIR/EIS by numerous agencies and individuals  CPUC and BLM approval (December 2008 and January 2009)

5 Route Selection  SDG&E submitted amended application to the CPUC proposing a Preferred Northern Route (August 2006)  CPUC Commissioner Grueneich ordered a Southern Route be studied (September 2006 Public Participation Hearing and January 2007 Scoping Memo)  Significant opposition to Anza Borrego Desert State Park impacts from Governor Schwarzenegger and State Parks Department and Commission  CPUC and BLM certified the EIR/EIS and approved southern route (December 2008 and January 2009)

7 Sunrise Powerlink Timeline Project Application Filed Dec CPUC Phase I Hearings June 2007 CPUC Decision Dec Route Planning Communit y Input 2005 CPUC Phase II Hearings April 2008 Final Environmental Impact Report (FEIR) Oct BLM Record of Decision Jan Start Construction Jun Commercial Operation Jun Obtain Additional Permits/Approvals Land Acquisition Material Purchase

8  The California Public Utilities Commission (CPUC) approved the project by a vote of 4 to 1 on December 18, 2008  U.S. Bureau of Land Management (BLM) Record of Decision approved on January 20, 2009  Authorized budget through December 2008 is $134 million  Spend through year-end 2008 was $114 million  CPUC Decision Includes a project “Cost Cap” of $1.883 billion Licensing Status *MAJOR PERMITS HAVE BEEN OBTAINED *PROJECT IS WITHIN BUDGET AND PREPARED FOR EQUIPMENT PROCUREMENT

9  U.S. Forest Service “Record of Decision”  U.S. Forest Service “Plan Amendment”  Habitat Acquisition Plan  Emission Offset Acquisition, etc. *Additional Permits Are in Process and “Enabled” by Certification of the Environmental Impact Statement (EIS) *Various Legal and Regulatory Challenges Underway  Public Utilities Commission “Rehearing Requests”  State Supreme Court Challenge  Expect Federal Challenges to Occur Soon Licensing Status

10 Administrative/Judicial Review  CPUC Final Decision  U.S. Bureau of Land Management (BLM) – Record of Decision  U.S. Fish and Wildlife Service (U.S.F.W.S.) – Biological Opinion  U.S. Forest Service (U.S.F.S.) – Record of Decision – Plan Amendment Major Permits Subject to Challenge:

11 Continued Support for Sunrise  Sunrise is critical to ensuring a reliable energy supply in San Diego and Southern Orange Counties  Provides access to 1,000 megawatts of clean, renewable energy – reducing green gas house emissions  Will generate over $115 million in net benefits to customers  CPUC approval was a significant victory and critical to the success of state and national efforts to ensure a clean energy future  Together we must ensure Sunrise gets built

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