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Juan de Fuca Cable

Safe Harbor Statement

Included in this document is certain information which is “forward looking information” as defined by the Private Securities Litigation Reform Act of 1995. Examples include our expectations, beliefs, plans, goals, objectives and future financial and other assumptions. This information, by its nature, involves estimates, projections, forecasts and uncertainties and actual results or outcomes may differ substantially from those expressed.

Many factors that are difficult to predict, involve uncertainties that may materially affect actual results, are beyond our ability to control, and may influence our business and its outcomes. These factors include, without limitation, the risks of operating a deregulated business in a formerly regulated industry that is early in the process of becoming deregulated, weather conditions and fluctuations in energy-related commodities prices.

International Interconnection

550 MW HCDC Light ®

± 150 kV

Bi-directional

51 km Total Length36 km Undersea

Project Description

Connecting Radial Ends of Two Systems

BCTC and BPA

International Regional Benefits

Project Status

2006 Certificate of Public Convenience and Necessity National Energy Board of Canada

2006 Market AuthorityUS Federal Energy Regulatory Commission (FERC)

2006 FERC Order/ Market Authority

2008 Presidential Permit – Full NEPA/ EIS US Department of Energy

2009 Interconnection and Facilities Studies Completed

2010 Additional Flow Modeling Studies and System Benefit Studies

2011 Phase 2 – Path Rating - Western Electricity Coordination Council

2011 est. Commencement of Construction

2013 est. Commercial Operation

HVDC – Two TypesTechnology

HVDC ‘Classic’

Long Distance TransmissionBulk PowerMinimal Line Losses

HVDC Light®

Regional ApplicationsOffshore and Remote SitesDistant Weak Connections‘Ride Through’ CapabilitySeams Issues

Technical AttributesVARs – Versatile Reactive

PowerBlack Start Capability

Smart Grid - Friendly Fast - Responsive - ControllableSuited for Automated Use

30% Increased N/S Capacity West of Cascades

Ring-bus Puget Sound

Georgia Basin

Congestion Relief

Blaine Intertie

Cross Cascades

By-pass to California Market

Security Benefits

Strategic BenefitsBusiness Case

‘Renewables Firming Renewables’

Geographic RationaleBusiness Case

‘R 2 R’

Business Case

Marketing – Two Pronged Approach:

Regulated Customers

Independent Power Producers (IPPs) Electricity Traders

Firm and Non-firm Transactions

Negotiated Bi-lateral Contracts

Revenue Sharing Agreements

Marketing – Two Pronged Approach

Reliability and Capacity Benefits

Ancillary Services

Firm Transmission Scheduling Rights

System Benefits

– Bonneville Power Administration – BC Hydro

Wholesale Transmission Providers

Unregulated Customers

Cost Recovery for Regulated Customers

Cost RecoveryBusiness Case

Thank you