1. Impact of Hurricane Ike on CenterPoint Energy’s Transmission System Paul Rocha Director, Transmission Planning Presented at October 2, 2008 ERCOT TAC Meeting

19. Hurricane Ike 9/12/2008 7 PM Energized Out Restored 0 Circuits Out

20. Hurricane Ike 9/12/2008 11 PM 14 Circuits Out Energized Out Restored

21. Hurricane Ike 9/13/2008 2 AM - Landfall 36 Circuits Out Energized Out Restored

22. Hurricane Ike 9/13/2008 5 AM 67 Circuits Out Energized Out Restored

23. Hurricane Ike 9/13/2008 8 AM 90 Circuits Out Energized Out Restored

24. Hurricane Ike 9/13/2008 3 PM 97 Circuits Out Energized Out Restored

25. Hurricane Ike 9/13/2008 Restoration – 7% 90 Circuits Out Energized Out Restored

26. Hurricane Ike 9/14/2008 Restoration – 41% 58 Circuits Out Energized Out Restored

27. Hurricane Ike 9/15/2008 Restoration – 70% 30 Circuits Out Energized Out Restored

28. Hurricane Ike 9/16/2008 Restoration – 87% 13 Circuits Out Energized Out Restored

29. Hurricane Ike 9/17/2008 Restoration – 94% 6 Circuits Out Energized Out Restored

30. Hurricane Ike 9/23/2008 Restoration – 100% 0 Circuits Out Energized Out Restored

31. Pole Damage 31

32. Pole Replacement 32

33. CenterPoint MW Load Restoration 33

34. Seawall Substation

35. Stewart Substation 35

36. West Bay Substation

37. Moody Substation

38. Galveston Substation

39. West Galveston Substation 39

40. Mobile Substation

41. Network Changes  After reviewing damage assessments and analyzing power flow study results, CenterPoint Energy decided not to restore the 69 kV portion of damaged West Galveston substation and 69 kV Ckt. 13, Lamarque – West Galveston  Removal of damaged 69 kV connections to Galveston Island could cause some increased loading on remaining three 138 kV connections to Galveston Island  Timing depends on rate of load restoration and growth on Galveston Island  CenterPoint Energy believes upgrades of remaining 138 kV facilities would be more practical, cost-effective, and timely than restoration of damaged 69 kV facilities  CenterPoint Energy will evaluate upgrades to remaining 138 kV connections to Galveston 41

42. 42 Galveston Island Network Changes - Temporary

43. Galveston Island Network Changes - Permanent 43

44. Emergency Entergy Connection  Implemented emergency interconnection from CNP’s Crosby substation to Entergy’s Dayton substation 9/15/2008  From Dayton substation, CNP used new transmission line built by Entergy after Hurricane Rita to restore power to water plant on the Trinity River normally served by Entergy  Disconnected Entergy emergency connection 9/19/2008 44

45. Planned Transmission Outages  Deferred all planned outages during restoration process  CenterPoint Energy expects to resume planned outages next week 45

46. Mutual Assistance  No report would be complete without noting the tremendous mutual assistance support from other utilities across North America  Far too many to list here, but we want to say… Thank You!!! 46

47. Transmission Network Summary  Transmission Network Was Quickly Restored  Network restored to necessary functionality within 4 days  However, storm surge affected Galveston Island, including CNP substations  Grid stability maintained despite tie-line and other outages  ERCOT actions to adjust for increased probability of line outages was effective  Generators performed well  2007 completion of STP– Hillje– WAP tie-line helped  Availability of mobile substations aided restoration effort  New Entergy 138 kV line expedited water plant restoration  Relay and Control infrastructure performed well  Hurricane training and drills were effective in preparing personnel 47