1. 2008 Transmission Expansion Plan Updates Tom Seeley, E.ON U.S.

2. 2008 TEP Update 2 Completed Projects in 2008 PROJ_NODESCRIPTIONCompDate 82 Upgrade the MOT of the 795 AA conductor (0.33 mi) in the Ashbottom to Kenwood 69 kV to 212°F. 15-Jan-08 387 Replace the AS-829 Bus and Line switches at Ashbottom associated with the Ashbottom to Grade Lane 138 kV line (ckt 3829) with equipment capable of at least 2000A SE. 15-Feb-08 44Establish a 345 kV interconnection with BREC at Daviess Co.09-Apr-08 235 Reconductor the 0.7 miles of 266 kCM ACSR in the Parkers Mill Tap- Parkers Mill section of the line tapping the Pisgah-Lexington Plant 69 kV line with 397 kCM ACSR or a conductor capable of at least 678A (81 MVA) SE. 16-Jun-08 4 Upgrade the confirmed thermal temperature on the Morehead East to Morehead 69kV line to 165F. 17-Jun-08 73Reconductor the Horse Cave Tap 69 kV line with 397.5 kCM ACSR.23-Jun-08

3. 2008 TEP Update 3 Completed Projects in 2008 PROJ_NODESCRIPTIONCompDate 475 Increase the overload relay setting at Eastwood associated with the Eastwood-Simpsonville section of the Eastwood-Shelbyville 69 kV line from to 850A. 25-Jun-08 544 Change the setting of the overload relaying at Dixie associated with the Algonquin-Dixie 138 kV line (circuit 3812) from 640A to at least 800A. 25-Jun-08 342Install a 40.5 MVAr capacitor at Worthington.27-Jun-08 395 Remove the 5% reactor from the Kenton-Rodburn 138 kV line. And install the reactor on the Centerfield-Trimble Co 138kV line at Centerfield. 03-Jul-08 91Upgrade the Dix Dam to West Cliff 69kV line to a MOT of 212°F.10-Jul-08 45Enlarge the 69 kV, 9 MVAr capacitor at La Grange East to 19.8 MVAr.13-Jul-08

4. 2008 TEP Update 4 Completed Projects in 2008 PROJ_NODESCRIPTIONCompDate 111 Increase the MOT of the 795 kCM ACSR (1.88 mi) in the NAS-Dayton Walther Tap section of the Ghent-Dow Corning West 138 kV line to 212°F. 31-Jul-08 197 Increase the relay trip setting at Magazine associated with the Waterside to Magazine 138 kV line (3809) to at least 1020 amps. 01-Sep-08 508 Construct 8 mi of 138 kV line from Virginia City to AEP's Clinch River substation using 556 kCM ACSR. 11-Sep-08 382 Move the Stewart load from the Cane Run Switching Station - Shively 69 kV line to the Cane Run Switching Station - Algonquin 69 kV line. 16-Oct-08 581Install a 345/138 kV, 450 MVA transformer at NAS.21-Oct-08 587Reconfigure the 138 kV lines into NAS as a single circuit instead of a loop.01-Nov-08

5. 2008 TEP Update 5 2008 Area Studies Lexington/E. W. Brown Plant Northwest Jefferson County

6. 2008 TEP Update 6 Major On-Going Projects Mill Creek to Hardin County (12/30/2009) Loop-In of Speed 345 into Trimble County (3/30/2009) Lansdowne to Loudon (4/30/2009) West Garrard (3/30/2010) West Lexington/Higby Mill (12/30/2009) Virginia City/Clinch River (12/30/2008)

7. 2008 TEP Update 7 Upcoming Projects PROJ_NODESCRIPTIONSchedDate 570Install LTC controls on the Blue Lick 138/69 kV transformer.30-Nov-08 124Install a 69 kV, 12.0 MVAR capacitor at Wilmore.30-Nov-08 538 Replace the 600A meter CT at Delvinta associated with the Delvinta- Beattyville-Powell County EKPC 161 kV line with 800A or higher equipment. 30-Dec-08 149Install a 69 kV breaker at Pineville on the Pineville to KU Park 69 kV line.30-Dec-08 101 Reconductor 6.4 miles of 2/0 #7 Cu in the Shelbyville to Simpsonville section of the Eastwood to Shelbyville 69 kV line with 397.5 ACSR. 30-Dec-08 146Install a 161 kV breaker on the Grahamville 161/69 kV transformer.30-Dec-08

8. 2008 TEP Update 8 Upcoming Projects PROJ_NODESCRIPTIONSchedDate 321 Replace 0.08 mi of 2000 MCM AL conductor and the 500 MCM Cu main 69kV bus associated with the Algonquin 138/69 kV transformer. 30-Dec-08 128 Build 7.2 miles of 138 kV line from Middletown to Collins using existing structures and right-of-way for 6.9 mi. 30-May-09 328Install a 138 kV breaker on the Watterson 138/69 kV transformer #1.30-May-09 292 Construct 1.6 mi of 69 kV line from Ewington to AO Smith using 397 kCM ACSR. Operate Ewington and AO Smith radially from Spencer Road. 30-May-09 578 Reconductor 10.62 miles of 556 kCM conductor in the East Frankfort to Tyrone 138 kV with 954 kCM conductor. 30-May-09 385Install a 69 kV, 10.8 MVAR capacitor at Metal & Thermit.30-May-09

9. 2008 TEP Update 9 Upcoming Projects PROJ_NODESCRIPTIONSchedDate 122Install a 69 kV, 19.8 MVAr capacitor at Stanford North.30-May-09 405Install a 69 kV, 16.8 MVAR capacitor at Fairmount.30-May-09 459 Reconductor the 1.69mi 397 kCM ACSR in the Fawkes-Richmond South section of the Fawkes-Okonite 69 kV line with 556 kCM ACSR. 30-May-09 503Install a 69 kV, 28.8 MVAR capacitor at Versailles.31-May-09 225 Install a 138 kV breaker at Lake Reba tap on the Lake Reba tap161/138 kV transformer. 31-May-09 291Install a 138 kV breaker at Rodburn on the 138/69 kV transformer.31-May-09

10. 2008 TEP Update 10 Upcoming Projects PROJ_NODESCRIPTIONSchedDate 401 Reconductor the Hardin County-Etown 138 kV line using 1272 kCM ACSR. 30-Jun-09 144 Install a 138/69 kV, 150 MVA transformer at Collins. Add a 138 kV exit at Collins for the Middletown to Collins 138 kV line. 30-Jun-09 477 Reconductor the 5.97 miles of 266.8 kCM ACSR in the Lake Reba to Waco section of the Lake Reba – West Irvine 69 kV line with 397.5 kCM ACSR. 30-Jun-09 140 Add a 138 kV exit at Middletown for the Middletown to Collins 138 kV line. 30-Jun-09 208 Install a 161 kV breaker at Pineville 192 on the Pineville 192 to Pineville Sw 161 kV line. 30-Nov-09 553 Install a 69 kV line exit at Lebanon for the Lebanon-Lebanon Industrial 69 kV line. 30-May-10

11. 2008 TEP Update 11 Upcoming Projects PROJ_NODESCRIPTIONSchedDate 317 Replace the 1.81 miles of 397 kCM ACSR in the Farley to US Steel section of the Farley to Sweet Hollow 69kV line with 556 kCM ACSR or equipment capable of at least 820A (98 MVA) summer emergency. 30-May-10 402 Reconductor 12.5 miles 795 26x7 ACSR conductor in the Ghent-Owen County Tap section of the Ghent-Scott County 138 kV line using 954 kCM ACSR. 30-Nov-10 103 Construct 2.0 mi of 69 kV line from Lebanon to Lebanon Industrial to Lebanon East using 397 kCM ACSR. 30-Nov-10 153 Replace the Pineville 161-69 kV, 93 MVA transformer with a 150 MVA unit. 30-Nov-10 301 Install a third 138/69 kV, 112 MVA transformer at Higby Mill (use the spare at the EOC) 30-Nov-10

12. 2008 TEP Update 12 Questions?