Transmission Advisory Group NCTPC Process Update Rich Wodyka September 7, 2006

2 Overview Provide Participants and other stakeholders the opportunity to participate in the NC Transmission Planning Collaborative (NCTPC) process Preserve integrity of the current reliability and least cost planning process Provide analysis of increasing access to resources inside and outside of Progress and Duke control areas Develop a single transmission plan that includes reliability and enhanced access solutions while appropriately balancing costs, benefits and risks

3 Roles Oversight Steering Committee (OSC) – overall responsibility for establishing and managing the Process Planning Working Group (PWG) – supports development of the Process and conducts the technical studies Transmission Advisory Group (TAG) – provides advice and recommendations on Process and study results

4 NCTPC Process Flowchart PWG evaluates reliability problems and current transmission upgrade plans PWG develops and the OSC approves the reliability study scope PWG coordinates the study analysis, identifies reliability problems, develops solutions with estimates of costs and schedules Participants and TAG recommend scenarios and interfaces. The OSC selects interface and scenario studies for analysis PWG coordinates the study analysis, identifies access problems, develops solutions with estimates of costs and schedules Reliability Planning Enhanced Transmission Access Planning OSC selects reliability and enhanced access solutions; checks for improved reliability through enhanced access solutions OSC creates final draft Collaborative Plan Feedback and Iterative Studies Participants and TAG review the reliability study results Participants’ resource planning processes Participants and TAG review the enhanced access study results TAG feedback on final draft Collaborative Plan OSC approves final Collaborative Plan PWG develops and the OSC approves the enhanced access study scope

5 1 st Quarter 2 nd Quarter3 rd Quarter 4 th Quarter Enhanced Access Planning Process Collaborative Plan Development  Develop Reliability Study Scope  Perform analysis, identify problems, and develop solutions  Review Reliability Study Results  Evaluate current reliability problems and transmission upgrade plans  Propose and select enhanced access scenarios and interface  Develop Enhanced Access Study Scope  Perform analysis, identify problems, and develop solutions  Review Enhanced Access Study Results Reliability Planning Process  OSC publishes DRAFT Plan  TAG review and comment  Combine Reliability and Enhanced Results 2006 Overview Schedule TAG Meetings

6 TAG - February Meeting TAG was provided with an overview and the opportunity to participate in the NC Transmission Planning Collaborative (NCTPC) process Requested that TAG propose scenarios and interfaces to be studied as part of the Enhanced Transmission Access Planning process No TAG input was received so the 2006 NCTPC process focuses only on the Reliability Planning process Enhanced Transmission Access Planning process will again be included in the 2007 NCTPC process

7 PWG evaluates reliability problems and current transmission upgrade plans PWG develops and the OSC approves the reliability study scope PWG coordinates the study analysis, identifies reliability problems, develops solutions with estimates of costs and schedules Reliability Planning OSC selects reliability and enhanced access solutions; checks for improved reliability through enhanced access solutions OSC creates final draft Collaborative Plan Feedback and Iterative Studies Participants and TAG review the reliability study results Participants’ resource planning processes TAG feedback on final draft Collaborative Plan OSC approves final Collaborative Plan 2006 NCTPC Process Flowchart - Revised

8 1 st Quarter 2 nd Quarter3 rd Quarter 4 th Quarter Collaborative Plan Development  Develop Reliability Study Scope  Perform analysis, identify problems, and develop solutions  Review Reliability Study Results  Evaluate current reliability problems and transmission upgrade plans Reliability Planning Process  OSC publishes DRAFT Plan  TAG review and comment  Finalize Reliability Results 2006 Overview Schedule - Revised TAG Meetings

9 Reliability Planning Process Expansion of traditional planning process used by transmission owners to ensure reliability OSC has established the planning study scope and oversees the study analysis Starting point is most recent reliability studies and planned transmission upgrades PWG conducts new reliability studies based on the approved scope and develops recommendations for the OSC

10 Study results will include the estimated costs and schedules for upgrades needed to maintain reliable service to native load of the Participants Participants and TAG review and comment on results OSC reviews comments and directs additional analysis, if needed OSC finalizes reliability solutions to be carried forward into a single Collaborative Plan Reliability Planning Process Results

11 OSC reviews reliability results and develops a Draft of the Collaborative Plan TAG reviews and provides input to OSC OSC reviews comments and develops the 2006 Final Collaborative Plan Final Collaborative Plan gets factored into the Participants’ future Integrated Resource Plans TAG members and other stakeholders can use this information for their own planning processes Collaborative Transmission Plan

12 Collaborative Process Value NC state-wide coordinated transmission planning processes –Enhances future transmission system reliability Open dialogue among all Participants and stakeholders –Allows for more coordinated planning between Progress Energy and Duke Energy to maintain reliability and serve future native load requirements Transparency on import issues and load growth issues –Provides LSEs more accurate data for resource planning decisions

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