Jim Larranaga Men’s Basketball Head Coach, AP National Coach of the Year University of Miami Our Formula for Success: The Miami Way

State of Competition in Illinois, Challenges & Predictions Doug Scott Chairman, Illinois Commerce Commission

MISO: An Evolving Market Ron Ryckman Senior Consultant, Customized Energy Solutions

Value of an Integrated System  Reliability  Market  Energy  Ancillaries (Regulation & Contingency Reserves)  Resource Adequacy  Transmission Planning  Regional Transmission Operator BEFORE AFTER

MISO Evolution  By the numbers:  Participants 362  Generation 132,296 MW  Peak Load 98,576 MW  Transmission 49,670 miles  Annual Settlements $18.4 billion charges

Voluntary Membership  Illinois split between two RTOs (MISO & PJM)  Ameren Illinois & ComEd  Both RTOs under Federal Energy Regulatory Commission (FERC) jurisdiction  Different market designs for energy, ancillaries, and resource adequacy  Market participants can move energy and capacity across the border  Different approaches to transmission planning  Entergy Plans to Join MISO (12/19/2013)  Arkansas, Mississippi, Louisiana, Texas  Add over 18,000 miles of transmission, ~40,000 megawatts of generation capacity, and ~40,000 MW of load into the MISO footprint  Generation – 69% Gas/Oil, Nuclear 20%, Coal 11%  FERC and state decisions expected mid September

Reliability & Markets Right mix of resources at the right locations with sufficient transmission to reliably operate the system Market Prices [Incentives] Reliable System [Adequacy] Cost-Effective Delivery of Electric Power [Costs] Transmission Limitations [Planning]

Resource Adequacy  Annual auction  System-wide peak  1 in 10 loss of load expectation  Deliverability matters  Zonal clearing prices (capped)  Peak Load Contribution method to track customer switching in IL  Pricing of the auction (residual market)  PJM design very different MISO Planning Year 2013/14 Auction Results $1.05 MW-Day or.03 kW-Mo Same price for all zones 96% opt-out or self-schedule MISO Planning Year 2013/14 Auction Results $1.05 MW-Day or.03 kW-Mo Same price for all zones 96% opt-out or self-schedule

Reliability/Deliverability Matters  MTEP (MISO Transmission Expansion Plan)  Baseline Reliability Projects  Generator Interconnection Projects  Market Efficiency Projects  Other Transmission Projects  Multi-Value Projects (MVP) Facilitate public policy objectives, such as meeting Renewable Portfolio Standards (~$5 billion)

Illinois Projects (MVP) -From Ameren Illinois Presentation at Williams Capital Group Midwest Utilities Seminar - 04/09/2013  Plan to invest ~$1.2 billion over period  2014 construction begins  FERC & ICC review  Cost allocation through MISO charges

MISO Wrap-Up  Reliability  Resource Adequacy  Transmission Planning & Construction (High Voltage)  Markets  Energy  Ancillary Services  Resource Adequacy  Oversight  Federal Energy Regulatory Commission  Illinois Commerce Commission  Market Participants

Disclaimer The information in this presentation has been obtained from sources believed to be reliable. However, no representation or warranty expressed or implied is made as to the accuracy, correctness, completeness or adequacy of any statements, estimates, opinions or other information contained in this presentation. Moreover, the statements, estimates, opinions or other information presented herein are that of my own and should not be construed in any way to be those of GDF SUEZ or Customized Energy Solutions.

Doug Scott Ron Ryckman Karen Dietz Q&A

David Braun Regional Vice President, GDF SUEZ Energy Resources NA Event Wrap Up