Pacific Gas and Electric Company s Revised 2016 Annual Progress

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March 06, 2016 Mr. Philip Augustin Chair, WECC Technical Studies Subcommittee Mr. Enoch Davies WECC Technical Staff 155 North 400 West Salt Lake City, UT 84103-1114 Subject: Report Pacific Gas and Electric Company s Revised 2016 Annual Progress Attached is Pacific Gas and Electric Company s 2016 Annual Progress Report. The new facility additions and planned system operation are in conformance with NERC Standards and WECC System Performance Criteria. If you have any questions, please call me at (415) 973-7057 or via e-mail at J2TF@pge.com. Sincerely, Jameson Thornton Transmission System Planning, PG&E 1

2016 Annual Progress Report to WECC Pacific Gas and Electric Company Waiver of Significant Transmission Project Status Table 1 and 2 update the planned transmission and generation projects, respectively, in PG&E service area that were presented in PG&E s 2012, 2013, 2014, and 2015 Annual Progress Report. These projects were granted the waiver of Significant Transmission Project status for the purpose of Project Coordination Review Process. Table 3 and 4 list the planned transmission and generation projects, respectively, in PG&E service area requesting waiver of Significant Transmission Project status. The purposes of these projects are for serving local load, to enhance or maintain local reliability, and/or to reduce local capacity requirements. These projects are not expected to have significant impacts on the operation of the Western Interconnected System. PG&E requests waivers of the Significant Transmission Project status for the purpose of Project Coordination Review Process. Table 1 Planned Transmission Projects Waiver of Significant Transmission Project Status Granted in 2012, 2013, 2014, and 2015 1 PROJECT NAME Helms PSP Special Protection Scheme Henrietta-McCall 230kV Newark - Ravenswood 230 kv McMullin-Kearney 230 kv Kearney 230/70 kv Transformer 2 Weber 230/60 kv Transformer Nos. 2 and 2A Replacement Embarcadero-Potrero 230 kv Project PROJECT DESCRIPTION Install redundant special protection schemes at multiple substations and Helms PSP to trip pumping units offline at Helms PSP. The Henrietta to McCall section of the Gates-McCall 230 kv Line will be reconductored to be capable of carrying 1893 amps under normal and emergency conditions. Upgrades to terminal equipment at Gates, Henrietta and McCall substations should be performed as necessary to accommodate the higher ratings. Reconductor the Newark - Ravenswood 230 kv Line with larger conductors. The McMullin to Kearney section of the Panoche-Kearney 230 kv Line will be reconductored to be capable of carrying 1893 amps under normal and emergency conditions. Upgrades to terminal equipment at Kearney and McMullin substations should be performed as necessary to accommodate the higher ratings. Install second 230/70 kv Transformer at Kearney Substation rated for 200 MVA or higher, install 4 element 230 kv ring, expand 70 kv bus and re-terminate lines Replace Weber 230/60 kv Transformer Nos. 2 and 2a with a new transformer rated at least 300 MVA with LTC and associated equipment Construct a new 230 kv underground cable to connect Embarcadero and Potrero substations. DATE IN SERVICE Jun-16 1 Facilities indicated will be removed from the 2016 annual progress report. 2

PROJECT NAME Contra Costa Moraga 230 kv Los Banos-4C779 #1 230kV Line Project Moraga Transformer No. 2 Capacity Increase Wheeler Ridge Voltage Support Midway Fault Duty Mitigation Project Gregg-Herndon #2 230 kv Line Circuit Breaker Bellota Warnerville 230 kv Line Tulucay 230/60 kv Transformer No.1 Capacity Increase Contra Costa sub 230kV Switch Replacement Kearney-Herndon 230 kv Line Reconductor Ashlan-Gregg and Ashlan-Herndon 230 kv Reconductor San Mateo Synchronous Condensor Replacement Morro Bay 230/115 kv Transformer Gates No. 2 500/230 kv Transformer Warnerville-Wilson 230 kv Series Reactor Midway-Kern PP 230 kv Line Nos. 1, 3 and 4 Capacity Increase Project Tesla - Newark 230 kv Upgrade II Vaca Dixon - Lakeville 230 kv Borden 230 kv Voltage Support PROJECT DESCRIPTION Reconductor the Contra Costa - Moraga 230 kv DCTL with larger capacity conductors. Reconductor 4.5 miles of the Los Banos - Panoche 230 kv No. 1 Line with a higher capacity conductor Replace Transformer number 2, 230/115 kv at Moraga Substation with a 420 MVA rated unit. Install three 75 MVAR steps of mechanically switched capacitors on the Wheeler Ridge 230 kv bus, expand the 230 kv bus as necessary reconductor 0.5 miles of the Wheeler Ridge-Lakeview 70 kv line and transfer Copus from the Old River-Copus 70 kv line to the Wheeler Ridge-Lakeview 70 kv line. Install reactors at 230 kv side of Midway transformer banks 11, 12 and 13. Replace limiting terminal equipment on the Herndon-Gregg #2 230 kv Line at Herndon substation. Reconductor the Bellota Warnerville 230 kv Line with a larger capacity conductor This project proposes to replace Tulucay Circuit Breaker No. 62 and all of its associated switches with a circuit breaker rated at 2000 Amps or higher. Any other associated terminal equipment will also be replaced as necessary Replace 230 kv Switch No. 239 at Contra Costa Substation that currently limits the Contra Costa PP-Contra Costa Sub 230 kv Line to 1600 Amps. Any other limiting element will be replaced as well. Reconductor 10 miles of the Kearney - Herndon 230 kv Line Reconductor limiting sections of Ashlan-Gregg and Ashlan- Herndon 230 kv sections with higher rated conductors. Install reactive support device to replace old synchronous condensers at 115kV. Install an additional 230/115 kv transformer at Morro Bay Substation rated for 200 MVA or higher. Install a second 500/230/13.8 kv transformer (three single-phase units, 374 MVA each) at Gates Substation Install a 230 kv multi-step Reactor totaling 50.5 ohms, and associated equipment at Wilson Substation, on the Warnerville- Wilson 230 kv line Replace limiting components at Kern PP and Midway Substations, to achieve full capacity on the Midway-Kern 230 kv Line Nos. 1, 3 and 4 Reconductor limiting sections of Tesla - Newark 230 kv No. 2 with larger capacity conductors. Reconductor the Vaca Lakeville No. 1, Tulucay Vaca, and Tulucay Lakeville 230 kv Lines with larger capacity conductors. This project proposes to loop the Wilson-Gregg 230 kv Line into Borden Substation (Borden) and install 200 MVARs of mechanically switched capacitors on the Borden 230 kv bus. DATE IN SERVICE Oct-16 Dec-16 Apr-17 May-17 May-17 Oct-17 Dec-17 Dec-17 Dec-18 Jan-19 Feb-19 Mar-19 May-19 3

PROJECT NAME Diablo Canyon Voltage Support Project Estrella Substation Monta Vista 230 kv Bus Upgrade Rio Oso 230/115 kv Transformers Wheeler Ridge Junction Substation Rio Oso Area 230 kv Voltage Support Moraga - Castro Valley 230 kv Line Capacity Increase Project Glenn 230/60 kv Transformer No. 1 Replacement Morgan Hill Area Reinforcement Project Midway-Kern PP 230 kv #2 Line Project Fulton 230/115 kv Transformer Pittsburg 230/115 kv Transformer Capacity Increase Central Valley Power Connect aka Gates- Gregg 230 kv New Line Kern PP 230 kv Area Reinforcement Project Rio Oso Atlantic 230 kv Line Lockeford-Lodi Area 230 kv Development Midway-Andrew 230 kv Moraga-Potrero 230 kv Project PROJECT DESCRIPTION Install a +150/-75 MVAR Reactive support device at Diablo Canyon 230 kv Substation Construct a new Estrella 230/70 kv substation, with Breaker and a Half (BAAH) bus configuration, approximately 5 miles east of the existing Paso Robles Substation. Install one 45 MVA distribution 230/12 kv, 2 feeder breakers and associated outlets Install bus-sectionalizing and bus-parallel breakers on the Monta Vista 230 kv bus Replace the Rio Oso 230/115 kv transformers (Nos. 1 and 2) with two 420 MVA rated transformers. Convert 115 kv bus to BAAH. Construct a new 230/115 kv Substation with Breaker and a Half at Wheeler Ridge Junction, Convert 15.5 miles of the Wheeler Ridge Lamont 115 kv Line to 230 kv Install a new Static Var Compensator (SVC) at Rio Oso Substation and a new Shunt Capacitor at Atlantic Substation. Upgrade the limiting substation equipment (jumper conductors and wave traps) at Moraga and Castro Valley substations Replace the existing 230/60 kv Transformer No. 1 and regulator at Glenn with a new 3-phase, 230/60 kv with a Load Tap Changer. Construct new 230/115 kv Spring Substation in Morgan Hill, with connections into the Metcalf-Moss Landing No. 2 230 kv Line and the Morgan Hill-Llagas 115 kv Line. Reconductor the Midway-Kern #1 230 kv Line, split it to Midway- Kern #1 and #2 230kV Lines, remove crosstie connections to split the Midway-Kern #1 Line into two circuits, reconductor the Bakersfield #1 and #2 230 kv Taps, loop Bakersfield 230 kv substation, remove Stockdale 230 kv Tap #1 and #2 from the Midway-Kern lines and relocate to Kern PP 230 kv bus This project proposes to install a 230/115 kv transformer at Fulton Substation rated for 420 MVA or higher. Install 3rd 230/115 kv Transformer at Pittsburg Substation with a rating of 420 MVA Build new DCTL (roughly 60 miles) of Gates-Gregg 230 kv line and upgrade substation equipment. Convert Kern PP 230 kv double bus single breaker arrangement to breaker and a half Replace limiting equipment on Kern PP 230/115 kv transformer No. 4 as necessary to achieve full transformer rating Install a 230/115 kv Transformer Special Protection Scheme at Kern 115 kv to mitigate overloads of Kern PP Transformer Nos. 3, 4, and 5 Construct a second Rio Oso Atlantic 230 kv Line. Construct new 15 mile 230 kv DCTL from Eight Mile Substation to Lockeford Substation Upgrade existing 65 miles long Midway-Santa Maria 115KV line to 230kV Establish a 230 kv connection between Moraga and Potrero Substations. DATE IN SERVICE May-19 May-19 Dec-19 Jan-20 May-20 Dec-20 Mar-21 Apr-21 May-21 Jun-21 May-22 May-22 Dec-22 Apr-23 Apr-24 May-24 Dec-25 Cancelled 4

Table 2 Planned Generation s Waiver of Significant Transmission Project Status Granted in 2014, and 2015 1 PROJECT NAME PROJECT DESCRIPTION DATE IN SERVICE Solar Star Generation Wright Solar Park Panoche Valley Generation Tranquility Solar Generation Project Build a 230 kv Quinto Switching Station to interconnect 110 MW solar generation to Pacific Gas and Electric Company's (PG&E's) Los Banos-Westley 230 kv Line and reconductoring 26 miles of the line from switching station to Westley Sub Interconnect a 200 MW (net output) solar-based generation facility to Los Banos Panoche 230 kv Line No. 1 by looping in through a new PG&Eowned switching station. The new Switching Station is a 2-Bay, 5 Breaker 230 kv. Interconnect a 240 MW (net output) of generation facility to a new PG&E owned 230kV switching station that loops into PG&E s Moss Landing Panoche and Coburn Panoche 230 kv Lines. Construct a new 3 Bay, 8 breaker Switching station (BAAH) Interconnect a 200 megawatt (MW) (net output) of generation facility to a new PG&E owned 230 kv switching station that loops into PG&E s Panoche Helm and Panoche Kearney 230 kv lines. Project on Hold (Jan-18) Oct-16 Jan-16 California Flats Solar Generation Interconnect 280 MW solar generation to Morro Bay - Gates 230 kv Line Number 2. Oakley Generation To interconnect 651 MW of new generation, install a new 230 kv circuit breaker at Contra Costa Substation, install SPS at Contra Costa Substation, reconductor Contra Costa Delta Pumps 230 kv Line, only east circuit, reconductor Las Positas Newark 230 kv Line, only west circuit. Project in suspension () 5

Table 3 Planned Transmission Projects Requesting Waiver of Significant Transmission Project Status PROJECT NAME PROJECT DESCRIPTION DATE IN SERVICE Martin 230 kv Bus Extension Relocate the Jefferson-Martin 230 kv Line and one of the Martin-Embarcadero 230 kv Lines into a new 230 kv switchyard near Martin Substation. Dec-21 Eight Mile - Lodi Re-conductoring Economic Project Reconductor 2.3 miles of the Lodi - Eight Mile 230 kv Line with higher capacity conductors. May-22 6

Table 4 Planned Generation s Requesting Waiver of Significant Transmission Project Status PROJECT NAME 2 PROJECT DESCRIPTION DATE IN SERVICE N/A 2 California ISO Generation Interconnection Queue Number 7