Central Vermont Public Service SOUTHERN LOOP COOLIDGE CONNECTOR Coolidge Connector Community Working Group April 30, 2007

Central Vermont Public Service Re-Cap of February 26 th Meeting Described resource options that can serve as NTAs Presented five alternative resource configurations (ARCs) for discussion Summarized results of comparing ARCs using VT societal cost test –Some ARCs had lower societal costs than the preferred transmission solution Further analyses to be performed Southern Loop Coolidge Connector - Preliminary NTA Study Update 2

Central Vermont Public Service Developments Since April 26th State-wide load level at which a solution is needed was lowered to 1,190 mw from 1,200 mw DPS memo lowered loss factors, lowered contribution from EE Revised societal cost analysis underway Risk evaluation and feasibility assessment of transmission solution and ARCs Further analysis indicated that ARC 1 is not a viable option Southern Loop Coolidge Connector - Preliminary NTA Study Update 3

Central Vermont Public Service Current Approach Preferred ARC is a combination of EE, DR, and local new generation Increased sense of urgency for action Parallel paths for implementation of solutions –DUs to explore increased EE, DR, new generation –VELCO to pursue permitting for transmission solution –Monitor load growth and implementation of NTAs If load growth meets or exceeds forecast, have transmission solution available Southern Loop Coolidge Connector - Preliminary NTA Study Update 4

Central Vermont Public Service Various Demand Forecasts with 1190 MW Clarifications Adjusted: Load forecasts include an additional ten MWs associated with increased losses due to Highgate OOS Planning assumption. Actual VT Demand: Includes a loss adder to reflect Reliability Assessment generation dispatch assumptions that differ from actual dispatch during the Peak and for 2002 an adjustment of ten MWs of load that was offline at the peak hour. Adjusted ISO Forecasted Demand: Loads prior to 2006 are a regression of the ISO forecast High Eco: LaCapras optimistic economic expectations load forecast Southern Loop Coolidge Connector - Need Analysis 5

Central Vermont Public Service Decision Point Southern Loop Coolidge Connector – Load Based Decision Model 6

Central Vermont Public Service DUs Plan for NTA ARC 3/4 takes advantage of other plans –Energy Efficiency budget increase thru 2008 –Geo-targeting per Act 61 –Peaking Generation and Ld Mgt per Forward Capacity Market –Renewable Generation and CHP per Act 61 –Generation Feasibility Study by DUs Southern Loop Coolidge Connector – NTA Planning & Implementation 7

Central Vermont Public Service Southern Loop Coolidge Connector – NTA Planning & Implementation 8

Central Vermont Public Service Proposed Next Steps Submit a §248 filing with the VT PSB for the transmission solution (late July- August) –Current Need Year = 2009 –Construction will take 18 months following receipt of all regulatory approvals and permits –Receipt of regulatory approvals and permitting could take up to ~25 months –Project maintains Vermont transmission in compliance with national reliability standards Which are now mandatory and can be enforced with substantial fines on 6/4/07 Monitor actual load levels vs MW need level –If load levels are tracking consistent with forecast, proceed with the transmission project Load levels that may impact the timing of the project lie within Vermont and outside of Vermont (New York and New Hampshire) due to the networked nature of the transmission grid –If load levels are tracking lower than forecast, considering pausing construction of the transmission project –If load levels are tracking lower than forecast, CVPS and VELCO will submit localized transmission designed to address local reliability issues in the Brattleboro-West Dummerston area Southern Loop Coolidge Connector – Transmission Planning & Implementation 9

Central Vermont Public Service Proposed Transmission Project Proposed Project Elements A new 51 mile 345 kV transmission line constructed in VELCOs existing ROW adjacent to an existing 345 kV line built in ~1970 New substations in Vernon and West Dummerston A substation modification at Coolidge substation Deferred Project Elements 115 kV lines or substations from West Dummerston-Stratton, Stratton-Bennington as DSM/DG will be implemented to defer the need Southern Loop Coolidge Connector – Transmission Planning & Implementation 10