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development plans require that electric distribution be provided through underground facilities. The existing facilities are overhead. Therefore, it will be necessary to remove all of the existing facilities as part of development of the area,but only do so as existing facilities are abandoned. It is anticipated that many, if not all existing customers (homesteads and irrigation pumps)that exist in the proposed service area will be abandoned when electrical service to these facilities are no longer necessary as a result of new development. As new facilities and structures are installed/constructed, electrical service will most likely be provided by LID. The proposed distribution facilities consist of distribution backbone feeders and the facilities within individual residential and commercial/office developments within the LID service area. The majority of the distribution backbone will be developed by LID. Facilities within each development will be developed as part of that development and LID will extend its backbone as required to serve each development. LID will establish design and construction standards that specify standard industry equipment that is readily available from several manufacturers. LID will then contract for design and construction of backbone distribution facilities and will approve plans for facilities within residential and commercial developments based on LID's utility standards. All newly constructed facilities shall be dedicated to LID. The initial interconnection with the transmission grid will be through a primary distribution voltage. The location of that interconnection will be determined based on the physical location of the first new customers and the proximity of PG&E's 12kv facilities. When LID loads outgrow the capacity of the initial interconnection, LID will increase its interconnection capacity. LID will choose between additional interconnections at a distribution voltage or an interconnection at transmission voltage based on the prices of the options available at that time. Pricing of interconnections is subject to regulation by the Federal Energy Regulatory Commission(FERC), and may be subject to negotiation at that time. Interconnections at distribution voltages are subject to FERC regulation and do not require an EIR. If LID determines that an interconnection at transmission voltage is most beneficial for expanding interconnection capacity then it will build a substation. If a new substation is selected for interconnection at transmission voltage then LID will determine at that time how the connection is accomplished. The transmission interconnection to the grid may be to existing PG&E facilities (located near the project site in various locations) or to the Western Area Power Association(WAPA)transmission lines located approximately 4 miles from the project site. These interconnection alternatives were studied in two study documents; the 2002 Navigant Report, completed for the River Islands at Lathrop project and the 2003 West Lathrop Specific Plan(adopted and subsequently amended in 2003 by the City of Lathrop for development of the Stewart Tract and Mossdale Village areas). 8 -