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Sunrise Powerlink Project UpdateSunrise Powerlink Project UpdateOrange County Business Council

March 10, 2009

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Project Background

Sunrise Powerlink was proposed in 2005 to provide 3 primary benefits to customers….

1. Improve electric system reliability

2. Provide access to renewable energy resources in the Imperial Valley

3. Reduce energy costs for SDG&E customers

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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

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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)

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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)

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Sunrise Powerlink Sunrise Powerlink TimelineTimeline

Project Application Filed

Dec. 2005

2006200620020055

20072007 20082008

CPUC Phase I

HearingsJune 2007

CPUC Decision

Dec. 2008

Route Planning Community Input

2005

CPUC Phase II Hearings

April 2008

Final Environmental Impact Report

(FEIR)Oct. 2008

BLMRecord of DecisionJan. 2009

20020099

20102010 20112011 20122012

Start Constructio

nJun. 2010

Commercial

OperationJun. 2012

• Obtain Additional Permits/Approvals• Land Acquisition• Material Purchase

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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

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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

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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:

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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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New Renewable Projects Under ContractImperial Valley*

0

200

400

600

800

1000

1200

Year

MW

2010 2011 2012 2013

Stirling Phase 2(Option)

SCE Contract for Baja WindPG&E Contract for Iceland America Energy - Truckhaven

Stirling Phase 1Esmeralda San Felipe

Esmeralda Truckhaven

MMR Mt. Signal Solar / MMR #2 / Imperial Valley Biopower