WestConnect 2010 Annual Transmission Plan Meeting Centennial West Clean Line November 2010

1. WestConnect 2010 Annual Transmission Plan Meeting Centennial West Clean LineNovember 2010

2. Clean Line Energy PartnersFocus, team and capital to connect renewable energy with demand • Clean Line Energy Partners (Clean Line) is focused on developing long haul, high voltage direct current (HVDC) transmission lines across the US connecting the best renewable resources in the country with load • Clean Line Energy Partners has financial backing from ZBI Ventures, the Zilkha family, founders of Horizon Wind Energy, and the Clean Line management team. • Clean Line’s principals, partners and investors bring unique perspective, experience and focus to transmission development along with a track record of success in energy project development. • Clean Line is 100% independent with no ownership ties to power generation companies or incumbent utilities

3. The Clean Line Team • Michael Skelly – a founder of Horizon Wind Energy, 3rd Largest Wind owner and operator in the US • Jimmy Glotfelty – former Bush Administration official, founder of DOE’s Office of Electric Delivery and Energy Reliability, led 2003 Blackout Investigation • Jayshree Desai – former CFO of Horizon Wind Energy where she led the company through several billion dollars of financings and acquisitions • Kathryn Patton – former Deputy General Counsel for Allegheny Energy, Inc., former Senior Vice President and General Counsel for Illinois Power Company • Wayne Galli – Ph.D. electrical engineer, formerly Director of Transmission for NextEra Energy Resources, led SPP Operations Engineering Group • Dave Berry – led over $2 billion of project finance transactions in the renewable energy industry • Keith Sparks– developed successful energy projects around the world • Julia Souder – led NERC facilitations with an array of government entities and co-led the EPAct 2005 West Wide Energy Corridors on Fed lands

4. Clean Line has a portfolio of projectsHVDC lines to move high quality wind and solar to demand centers

5. HVDC brings Economic, Policy and Electric Reliability Benefits • Simpler Commercial Structure – Generator or load serving entity pays for transmission capacity • Efficient – Over long distances, DC transfers more power with less line loss than comparable AC lines • Improved Reliability – Enhances system stability, gives operator complete control over power flow, improves quality of electricity from wind projects and helps lower overall integration costs • Smaller Footprint – DC requires narrower ROW and lower tower height than AC

6. HVDC Helps Address Integration Challenges • Moving “variability” to control area with available resources is key to keeping integration costs low • As more wind farms are interconnected in an array, wind speed correlation among sites decreases and so does the probability that all sites experience the same wind regime at the same time. • A single 3,500 MW transmission line will transport the equivalent of eight 500 MW wind farms with an overall footprint of approximately a 100 mile by 100 mile area • Reliability increases with more and more interconnected sites. Source: Christina Archer and Mark Jacobson, Stanford University Source: International Energy Agency, “Variability of Wind Power and Other Renewables”

7. Centennial West Clean LineProject highlights

8. Preliminary Draft of Centennial West Route Including current Projects in Southwest

9. Centennial West Clean Line Project Status • Engineering and Interconnection • Conducted endpoint studies with Ventyx and USE • Submitted wire- to- wire request to PNM • Working on feasibility study with PNM on HVDC and VSC options • Studying endpoints in Nevada and CA • Participating in WECC, PCC, TEPPC, SWAT, WestConnect meetings and beginning path rating process • Letter suggesting a project review group be formed to be sent this month (CATS, SWAT groups) • Permitting • POWER Engineers started NEPA work • Submitted Pre-Application (SF-299) to Bureau of Land Management (AZ,CA,NM,NV,UT) and to the U.S. Forest Service and courtesy copies to AZ and NM land offices • Finalizing map, plan of development, lead project manager • Working with military bases • Working with tribes on land use options • Have a MOU with Dine Power Authority (Navajo Nation) • Finalizing opportunities and constraints studies

10. Centennial West Clean Line Project Status Continued • Regulatory • SF-299 pre-scoping meetings in works • Continual County, State and Federal Commissioner meetings • Submit Application (SF-299) and Preliminary Plan of Development to Bureau of Land Management • Working with Western Area Power Administration have MOU signed • Working with NM RETA and letter of support and MOU singed • Public Outreach • Sent 63 Tribal outreach informal letters to provide information and set up meetings • Meet with and continue to get together county officials in AZ, NM, CA, NV, UT • Meet with State Commissioners in AZ, NM, CA and setting up additional meetings • Attended various landowner meetings and gave introductory presentations

11. Centennial West Timeline 2010-2013 PUBLIC OUTREACH, SITING AND PERMITING PARALLEL WECC PATH RATING PROCESS SEPTEMBER 2010 KICKOFF 2013-2016 ENGINEERING AND CONSTRUCTION 2010 2011 2012 2013 2014 2016

12. Centennial West Clean Line Highlights: • $2.5 billion investment • Up to 3500 MW of Transmission Capacity • Estimated 800 miles long • 500 to 600 kV DC lines • Over 5,000 temporary jobs created • Over 500 permanent jobs created • Making possible $7B in new generation • CO2 reduction of 5M tons, equal to the removal of over 960,000 cars off the road • Over 1.9 million homes will be powered from renewable energy generation as a result of this project –based on the average annual electricity consumption per home in California

13. Keith Sparks Ksparks@cleanlineenergy.com 281-687-9864 Julia Souder Jsouder@cleanlineenergy.com 602-501-1053