Southern Cross transmission project reaches FERC application milestones

San Francisco, September 6, 2011 — Pattern Energy Group reached milestones in the development of its Southern Cross transmission project by reaching an agreement with several existing Texas utilities and making two key applications with the Federal Energy Regulatory Commission.

"Pattern is making steady progress on the development of its Southern Cross project, which will allow Texas to share its abundant economically feasible wind energy resources with its neighbor states to the southeast," said Mike Garland, CEO of Pattern Energy. "The Southern Cross project will create new jobs, generate investment and economic development in Texas, Louisiana and Mississippi, and provide the southeast with the opportunity to access low cost renewable energy from Texas."

Pattern, through its affiliate Southern Cross Transmission LLC, has completed negotiation of a settlement agreement with Oncor Electric Delivery Co., CenterPoint Energy Houston Electric, and the city of Garland, Texas and its municipal-owned electric utility Garland Power & Light, regarding the terms and conditions for the interconnection of the project with ERCOT and the provision of transmission service into and out of ERCOT from the project, contingent upon the receipt of necessary regulatory approvals from FERC.

This settlement agreement is part of an application Pattern filed today at FERC requesting an order from the Commission directing Garland to interconnect the project with ERCOT and directing Oncor and CenterPoint to provide transmission service into and out of ERCOT.

The order will also contain a clear disclaimer of jurisdiction by FERC, ensuring the continued status quo of all transmission providers and entities within ERCOT as generally exempt from FERC regulation.

In addition, Pattern filed a separate application at FERC requesting authority to sell transmission service on Southern Cross at negotiated rates with interested shippers. This rate application details the proposed provisions for subscribing anchor tenants and holding an open season as a participant funded transmission project.

Pattern is developing the Southern Cross project to add a high voltage direct current transmission tie of up to 3,000 MW between ERCOT in Texas and the transmission grid deep in the southeastern United States by 2016.

This project is expected to facilitate the further development of additional Texas wind projects by creating access to new markets. The Southern Cross project will allow Texas to expand its traditional role as an energy supplier, adding wind energy to its portfolio of major exports.

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