1. Sea Breeze Pacific Regional Transmission System Juan de Fuca Cable & West Coast Cable Keys to West Coast Transmission Progress

6. BCTC system studies - Feasibility Completed - Combined Interconnection and Facilities studies agreement In negotiation and Facilities studies agreement In negotiation BPA system studies - Feasibility Completed - Interconnection Completed - Facilities Completed WECC Path Rating Process - Phase II Target Date Q2 - 2007 Electrical System Studies Electrical System Studies

7. Blaine Intertie: Increased Headroom (~300MW) Vancouver Island: Improved Reliability British Columbia: Washington “I-5” Utilities: Improved Access to Market Regional Benefits: Deferred Capital Expenditures (e.g. Monroe-Echo Lake $400M) Relieved Congestion/ Downstream Benefits Return Olympic Peninsula: Improved Reliability Anticipated System Benefits

8. Access to Canadian Renewables

10. Preliminary Plan of Service WCC Basic Components of WCC Basic Components of WCC – 1600 MW converter station at BPA’s Allston Substation. – 2-650 mile undersea DC cables (1 per pole) Upgrades North of Allston Upgrades North of Allston Rough Cost: $1.9 - 2.3 Billion, plus the cost of upgrades north of Allston Rough Cost: $1.9 - 2.3 Billion, plus the cost of upgrades north of Allston

12. Terminating OVHD HVDC with Large VSC Inverters HVDC Inverter Limitations on recovery rate from ac faults due to inverter voltage stability Limitations on power rating due to system strength Reactive power constraints Momentary interruption of power flow due to ac fault induced CF at inverter HVDC Light Inverter Improved voltage stability Less limitations on inverter rating, recovery rate and system strength Improved multiple-infeed performance No reactive power constraints Distributed inverters to reduce interconnection requirements

14. Photo courtesy of ABB State-of-the-art enhancement of well proven HVDC transmission technology

15. West Coast Cable Project

16. We expect both the JdF and West Coast Cable Projects to provide significant benefits to the electrical system in the Puget Sound area and the larger Northwestern Region, as well as access to coastal BC renewable resources. Summary