1. Company LOGO Cleco Planning Process

2. Models Cleco uses SPP’s annual series of models to determine the NERC reliability violations. Cleco uses SPP or VST models for all other types of service request.

3. Subsystem Files Monitored elements* include Cleco and surrounding areas (Louisiana). Contingency elements include all of Cleco, Entergy, LUS, LEPA, and part of AEP. *Cleco grants transmission service only on Cleco monitored elements. External elements that violate Planning Criteria are flagged and other companies are notified as an affected system.

4. Software Cleco uses Powerworld, PSSE, and MUST for powerflow and stability analysis. Cleco uses ASPEN for all short circuit analysis.

5. Planning Criteria All lines in service –Voltage must remain between 0.95 and 1.05 pu. Voltage deviation greater than or equal to 0.03 pu between base case and study model requires an upgrade. –MVA flow should not exceed Rate A (Normal rating). Flow increase greater than or equal to 3% between base case and study model requires an upgrade.

6. Planning Criteria Under contingencies (N-1) –Voltage must remain between 0.92 and 1.05 pu. Voltage deviation greater than or equal to 0.03 pu between base case and study model requires an upgrade. –MVA flow should not exceed Rate B (Emergency rating). Flow increase greater than or equal to 3% between base case and study model requires an upgrade.

7. Operating guides* Cleco currently has 2 operating guides. –Dolet Hills Operating guide- Loss of the 345 kV line from Dolet Hills to SW Shreveport causes overloads on the underlying 138 and 230 kV system. Dolet Hills generation is reduced to relieve the overloads. –Wells Reactor- Relaying at Wells senses the flow on the Wells Auto and any time the Auto overloads the Reactor comes in to relieve this overload. *Cleco does not use operating guides when granting new transmission service.

8. Budget Process Cleco yearly performs an AC N-1 and DC N-2 analysis for each model in the SPP annual series of models using the previous mentioned Monitored and Contingency files. A mitigation plan is developed and submitted to SPP for any Cleco element that violates Planning Criteria. Transmission Planning submits projects to the budgeting committee for consideration in years 1 through 5. Projects approved by the budget committee become part of the Construction Plan.

9. Budget Process continued Planning Criteria violations in years 6 – 10 are monitored for future considerations.

10. Cleco Planning Process Questions?

11. Company LOGO Cleco Construction Plan 2007 - 2008

12. Construction Plan Approved transmission projects in year 1 (2008). Budgeted transmission projects in years (2 – 5). Proposed transmission projects in years (6 – 10).

13. Approved Transmission Projects 2007-2008 Replace Fisher Autotransformer Add Capacitor Banks (18 MVARS) at Many Substation Increase Carroll Autotransformer Rating Re-conductor Pineville – Shady Oaks 138KV Transmission line. New Oakdale – Lyles 138kV Line. New Cane Bayou Substation.

14. Approved Transmission Projects Replace Fisher Autotransformer Scenario: Existing 83 MVA transformer failed April 2006 & needs to be replaced. Currently using a spare Entergy Transformer. Loss of Winnfield to Winnfield Prison 115 kV line causes thermal overload on the spare Entergy transformer. Proposed Solution: Rewind the failed transformer to increase the MVA rating to 120 MVA.

15. Approved Transmission Projects Replace Fisher Autotransformer Fisher Autotransformer MARCH 2008

16. Approved Transmission Projects Many 18 MVAR Capacitor Bank Addition Scenario: Loss of Many to Fisher 138 kV line causes low voltage on Many 138 kV bus. Proposed Solution: Increase capacitance on the Many 34.5 kV bus for a total of 18MVARs.

17. Approved Transmission Projects Many 18 MVAR Capacitor Bank Addition Many (3) 6 MVAR Capacitor Banks MAY 2008

18. Approved Transmission Projects Carroll 230/138 KV Autotransformer Rating Scenario: Loss of Dolet Hills to SW Shreveport 345 kV line causes thermal overload on the Carroll 230/138 kV Auto. Proposed Solution: Add cooling fans to increase rating from 336 MVA to 400 MVA.

19. Approved Transmission Projects Carroll 230/138 KV Autotransformer Rating Carroll Autotransformer Rating Increase JUNE 2008

20. Approved Transmission Projects Reconductor Pineville–Shady Oaks 138KV Circuit 1 Scenario: Two lines connect the Pineville & Shady Oaks substations. Loss of Pineville to Shady Oaks 138 kV line Circuit 2 causes a thermal overload on Pineville to Shady Oaks 138 kV line Circuit 1. Proposed Solution: Reconductor the existing Pineville to Shady Oaks 138 kV line Circuit 1 increasing its rating from 148 MVA to 228 MVA.

21. Approved Transmission Projects Reconductor Pineville – Shady Oaks 138KV Circuit 1 Pineville – Shady Oaks CKT 1 Reconductoring DEC 2007

22. Approved Transmission Projects New Oakdale – Lyles 138KV Line Scenario: Proposed 138 kV line Due to Distribution Planning analysis, load growth in Lyles/Kinder area requires a 34.5 kV line for this region instead of a 138 kV line. Proposed Solution: Build and energize a new radial Oakdale to Lyles 34.5 kV line.

23. Approved Transmission Projects New Oakdale – Lyles 138KV Line New Oakdale – Lyles 138KV Line (operate at 34.5 kV) DEC 2008

24. Approved Transmission Projects New Cane Bayou 230/34.5 KV Substation. Scenario: Additional capacity needed to serve future load growth in Cleco’s North Lake area. Mandeville 34.5KV circuits are heavily loaded. Proposed Solution: Build a new 230/34.5 KV Substation tapped off of the Mandeville to North Slidell 230 KV line to move load off of Mandeville 34.5 KV circuits.

25. Approved Transmission Projects New Cane Bayou 230/34.5 KV Substation New Cane Bayou Substation In-Service

26. Budgeted transmission projects in years (2 – 5). No increase in capacity is projected for the next 2 – 5 years.

27. Proposed transmission projects in years (6 – 10) No increase in capacity is projected for the next 6 – 10 years. Historically, Cleco proposes capacity upgrades for the next 5 years. Going forward Cleco will evaluate capacity upgrades for the next 10 years.

28. Approved Transmission Projects Questions?