1. Balanced Portfolio Update PCWG August 28, 2012 1

2. Balanced Portfolio 2 Project Original Cost Estimate Q3 2012 Latest Update Cost Variance% Change Sooner - Cleveland 345 kV $33,530,000$58,906,000$59,880,000$26,350,00078.6% Seminole - Muskogee 345 kV $129,000,000$161,700,000 $32,700,00025.3% Tuco - Woodward 345 kV $227,727,500$328,733,021 $101,005,52144.4% Iatan - Nashua 345 kV $54,444,000$64,800,000 $10,356,00019.0% Spearville - Post Rock - Axtell 345 kV $236,557,015$224,000,000 ($12,557,015)-5.3% Swissvale - Stilwell Tap 345 kV $2,000,000 $1,922,840($77,160)-3.9% Gracemont Substation $8,000,000$15,200,000$15,966,210$7,966,21099.6% Total $691,258,515$855,339,021$857,002,071$165,743,55624.0%

3. Balanced Portfolio 3

4. Sooner – Cleveland 345 kV (GRDA) 4 Original Cost Estimate In-Service Date Latest Cost Estimate Cost Variance % Change Expenditure to Date % of Latest Estimate $1,806,00012/31/2012$2,780,000$974,00053.9%$1,250,00045.0% Percentage of Completion Material Procurement40%Environmental Studies100% Construction0%Engineering80% Siting and RoutingN/APermit Status100% Cost Estimate Increase Justifications Higher than estimated construction labor cost54% Additional engineering expense25% Material cost escalation21% Potential Future Cost Increase Factors None anticipated

5. Iatan - Nashua 345 kV Ckt 1 (KCPL/GMO) 5 Original Cost Estimate In-Service Date Latest Cost Estimate Cost Variance % Change Expenditure to Date % of Latest Estimate $49,824,000 6/15/2015$60,569,180$10,745,00021.6%$2,274,8423.8% Percentage of Completion Material Procurement15%Environmental StudiesN/A Construction6%Engineering66% Siting and Routing100%Permit Status5% Cost Estimate Increase Justifications “Live-line” work Indirects H Frame vs. Single Pole Addition of 1 mile to route Potential Future Cost Increase Factors Cost and Schedule on “Live-line” Work – High Risk Transformer Size and Market Cost Fluctuations – High Risk Condemnation Costs – High Risk Easement Prices– Medium Risk Commodity Escalation – Medium Risk Southwest Power Pool Directives – Medium Risk

6. Nashua 345/161 Transformer (KCPL) 6 Original Cost Estimate In-Service Date Latest Cost Estimate Cost Variance % Change Expenditure to Date % of Latest Estimate $4,620,000 6/15/2015$4,230,820($389,180)-8.4-- Percentage of Completion Material Procurement15%Environmental StudiesN/A Construction6%Engineering66% Siting and Routing100%Permit Status5% Cost Estimate Increase Justifications N/A Potential Future Cost Increase Factors None mentioned

7. Post Rock - Spearville 345kV Ckt 1 (ITCGP) 7 Percentage of Completion Material Procurement100%Environmental Studies100% Construction99%Engineering100% Siting and Routing100%Permit Status100% Cost Estimate Increase Justifications N/A Potential Future Cost Increase Factors N/A Original Cost Estimate In-Service Date Latest Cost Estimate Cost Variance % Change Expenditure to Date % of Latest Estimate $99,000,0006/18/2012$79,863,300$19,863,300-20.1%$79,863,300100%

8. Post Rock 345/230kV Transformer (ITCGP) 8 Percentage of Completion Material Procurement100%Environmental Studies100% Construction100%Engineering100% Siting and Routing100%Permit Status100% Cost Estimate Increase Justifications N/A Potential Future Cost Increase Factors N/A Original Cost Estimate In-Service Date Latest Cost Estimate Cost Variance % Change Expenditure to Date % of Latest Estimate $3,000,0006/18/2012$4,348,600$1,348,60045.0%$4,348,600100%

9. Axtell - Post Rock 345kV Ckt 1 (ITCGP) 9 Percentage of Completion Material Procurement100%Environmental Studies100% Construction90%Engineering100% Siting and Routing100%Permit Status100% Cost Estimate Increase Justifications N/A Potential Future Cost Increase Factors N/A Original Cost Estimate In-Service Date Latest Cost Estimate Cost Variance % Change Expenditure to Date % of Latest Estimate $66,000,0006/1/2013$64,514,700$1,485,300-2.3%$56,041,20986.9%

10. Axtell - Post Rock 345kV Ckt 1 (NPPD) 10 Original Cost Estimate In-Service Date Latest Cost Estimate Cost Variance % Change Expenditure to Date % of Latest Estimate $71,377,015 6/1/2013$76,000,000$4,622,9856.5%$48,000,00063.2% Cost Estimate Increase Justifications None required. Costs are currently projected to finish at slightly more than 20% under the current cost estimate. Potential Future Cost Increase Factors None anticipated Percentage of Completion Material Procurement100%Environmental Studies100% Construction80%Engineering100% Siting and Routing100%Permit Status100%

11. Swissvale - Stilwell Tap 345 kV (KCPL) 11 Original Cost Estimate In-Service Date Latest Cost Estimate Cost Variance % Change Expenditure to Date % of Latest Estimate $2,000,000 12/31/2012$1,922,840($77,160)-3.9%$1,260,50065.6% Cost Estimate Increase Justifications N/A Potential Future Cost Increase Factors None anticipated Percentage of Completion Not provided

12. Gracemont Tap 138 kV (WFEC) 12 Original Cost Estimate In-Service Date Latest Cost Estimate Cost Variance % Change Expenditure to Date % of Latest Estimate $2,000,0009/1/2012$966,210($1,033,790)-51.7%$308,96432.0% Percentage of Completion Material Procurement65%Environmental Studies100% Construction20%Engineering80% Siting and Routing100%Permit Status100% Potential Future Cost Increase Factors Current Estimate is the most up to date estimate with the contractor hired and construction in progress. Typically cost variations are a result of the construction prices. Cost Estimate Increase Justifications N/A