Project Presentation April, 2017

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1 Project Presentation April, 2017

2 Background and Summary Proposed 114 mile, series compensated 500 kv transmission line project Connects Arizona Public Service s Delaney Substation (Tonopah, AZ) to Southern California Edison s Colorado River Substation (Blythe, CA) Permitting agencies: Bureau of Land Management ( BLM ), Arizona Corporation Commission ( ACC ), California Public Utilities Commission ( CPUC ) Enables variety of renewable energy development and integration, system economics and reliability benefit to the electric consumers in AZ and CA Commercial Operation: May 2020 Entire cost will be paid by ratepayers of California Independent System Operators ( CAISO )

3 Project Ownership CAISO selected DCR Transmission LLC ( DCRT ) as project sponsor, July 2015 DCRT: Joint venture led by Starwood Energy Group Global Inc. (Private equity company specializing in investing in energy infrastructure projects in North America) Project awarded to DCRT under cost cap, specified project specifications and strict project completion date requirement When completed: o Ten West will be under operational control of CAISO and transmission capacity will become a part of CAISO network o DCRT will become Participating Transmission Owner with CAISO and achieve a Utility status with the CPUC o Transmission Revenue Requirement ( TRR ) will be approved by Federal Energy Regulatory Commission ( FERC ) and collected by CAISO from its customers based upon CAISO rules

4 Project Purpose, Need & Benefits Establish new reliable/economic transmission interconnection between two critical transmission hubs in AZ and CA to strengthen regional transmission system reliability, improve operational flexibility and increase transmission system efficiency by decreasing congestion Benefits o Facilitate development of new renewable energy resources and renewable energy zones o Provide Load Serving Entities (LSE) in CA and AZ access to efficient, cost effective renewable resources o Provide economic benefits to ratepayers within CAISO Controlled Grid as well as AZ ratepayers o Improve regional collaboration and provide improved access to diverse cost effective, environmentally friendly resources, thereby enhancing renewable integration o Promote regional economic development

5 Major Regulatory Requirements ACC (and Arizona Siting Committee) will issue Certificate of Environmental Compatibility ( CEC ) BLM is lead federal agency for National Environmental Policy Act ( NEPA ) process o Preparation of Plan of Development ( POD ) o Preparation of draft and final Environmental Impact Statement ( EIS ) o Issue final Record of Decision (ROD) CPUC leads California Environmental Quality Act ( CEQA ) process (EIS will serve as CEQA Equivalent Document) CPUC will issue Certificate of Public Convenience and Necessity ( CPCN )

6 Project Proposed Route Alternatives Segments

7 Project Schedule Project awarded by CAISO July, 2015 Stakeholder Outreach July, 2015 May 2020 Right of Way / Land Acquisition October 2015 February 2019 BLM Issues Draft EIS October 2017 Engineering and Construction January 2018 May 2020 BLM Issues Final EIS May 2018 CPUC accepts EIS as CEQA Equivalent Document; Issues CPCN September 2018 ACC/Siting Committee issue CEC March 2018 Other Fed/State/Local Permits/Consultations September 2018 March 2019

8 Stakeholder Outreach & Engagement Launched October 2015: Broad Early Often (200+ briefings, presentations, mailings, website, factsheet, contact list, open houses, 800#) Stakeholders include: Cooperating Agencies, elected officials (local/state/federal), landowners, off highway vehicle users, environmental groups, community organizations, economic development entities, military, industry, and Native American Tribes Focus on populated areas: La Paz County (Town of Quartzsite, Ehrenberg), Riverside County (City of Blythe) and Maricopa County (Tonopah, Harquahala) DCRT is committed to continuing public outreach activities and working in collaboration with all key stakeholders throughout development and construction phase

9 Contact 844 Ten West ( )

Presentation to Local/State/Federal Agency Mtg November 10, 2015

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