T&D World Magazine

Project Update on Juan de Fuca Cable Project

Sea Breeze Power Corp., on behalf of its affiliate, Sea Breeze Victoria Converter Corporation (“Sea Breeze-VCC”), announces that key permitting milestones for the Juan de Fuca (JDF) Cable Project, a 550 MW High Voltage Direct Current (“HVDC”) Light® submarine transmission line designed to connect Vancouver Island and Washington State’s Olympic Peninsula have been achieved.

On September 7, 2006, the Juan de Fuca Cable Project (“JDF Cable”) became the first international merchant transmission line to gain approval from Canada’s National Energy Board (“NEB”). On October 19, 2006, Governor in Council approval was received, marking another significant permitting milestone for the JDF Cable.

On November 7, 2006, Sea Breeze-VCC’s request to appeal the BC Utilities Commission’s decision to grant a Certificate of Public Convenience and Necessity for the Vancouver Island Transmission Reinforcement project, was denied by the Court of Appeal. Sea Breeze-VCC’s decision to appeal was based on the continued belief that the JDF Cable is the most environmentally sound and cost-effective option to address Vancouver Island’s transmission reliability requirements.

As a bi-directional transmission line that will connect and thus strengthen the westerly ‘end points’ of both the BC and Washington State transmission systems, the JDF Cable will provide additional reliability both for Vancouver Island and the Olympic Peninsula, as well as provide a new avenue to meet Vancouver Island’s growing electricity requirements. The JDF Cable will also serve as a contingent path for electricity trade between BC and the Pacific Northwest, providing much needed expansion of capacity to the Blaine Intertie and the I-5 transmission corridor running south from Blaine to Seattle, WA.

HVDC Light® technology is recognized internationally for its reliability, emits no fluctuating electromagnetic fields, and transmits electricity using underground and submarine cables. Manufactured by ABB Inc., one of the world’s largest and most successful electrical manufacturing and engineering companies, HVDC Light® is particularly useful in modern electrical networks where systems need to be flexible, allow for large variations and frequent changes in production patterns, and meet tougher environmental regulations and community acceptance standards.

The JDF Cable project is in the process of entering Phase II of the Western Electricity Coordinating Council’s (“WECC”) Project Rating process, the completion of which will require all electrical system planning throughout British Columbia, Alberta and the 14 Western States which comprise WECC, to factor in the impact of the JDF Cable on their transmission systems.

With all remaining permits expected to be issued by the end of Q1-2007, the JDF Cable is advancing well with strong support from most quarters and virtually no organized opposition. The development of the project remains on schedule with a current in-service target date of Q4-2008.

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