Public Service Commission Public Statement Hearing Informational Forum August 4, 2014

Project Team  Cricket Valley Energy (CVE) –Developer of Cricket Valley Energy Center, a fully permitted $1.4 billion natural gas-fueled, high-efficiency, combined-cycle power generation facility in the Town of Dover/Dutchess County –Subsidiary of Advanced Power, NA  Epsilon Associates, Inc. –Project environmental consultant  DiGioia Gray & Associates –Project engineer  Arch Street Communications –Public information and outreach 2

Agenda  Project Overview  Location  Scope  Objectives  Design  Hypothetical Alternative Route  Simulated Views  Article VII Review Steps  Construction  Public Involvement  Topics of Interest 3

Project Overview  CVE has been required by New York Independent System Operator (NYISO) to increase transmission capacity, redundancy, and operational capabilities by funding and installing a transmission line in the existing 14.6-mile Right-of-Way (ROW) between CVE in Dover and the Con Edison substation in Pleasant Valley. CVE will also reconductor a 3.4-mile segment of the existing transmission line in the same ROW between the CVE substation and the NY-CT state line.  NOT part of any of the following transmission line projects: NY Transco Edic to Pleasant Valley; NEXTERA New Scotland to Pleasant Valley; North American Transmission; or Boundless Energy Transmission. 4

Project Location 5

Project Scope  Install a new 14.6-mile 345 kV transmission line within the existing Con Edison ROW between CVE in Dover and Con Edison substation in Pleasant Valley  Re-conductor existing line #398 between the Project site the NY/CT border  Upgrade the Pleasant Valley substation (within existing footprint) protection and communication infrastructure  Prioritize local labor for the Project Average workers for line construction Approximately 20 worker crew for re-conductoring 6

Project Objectives  Ensure the reliability, stability, operability, and transfer limits of the transmission system are maintained with the connection to Cricket Valley Energy Center  Ensure minimal disruption to the environment and neighboring communities by locating the new transmission line inside the existing 250-foot-wide Con Edison ROW  Privately fund the $55 million infrastructure investment  Transfer ownership to Con Edison upon completion 7

Project Design  New line:  State-of-the-art steel monopoles  Delta configuration  Generally follows current spacing of existing lattice towers  New conductors:  Bundled, “Mallard” Aluminum Conductor Steel-Supported (ACSS) cables  Selected for rating/line capacity, cost, line losses and other performance factors 8

Design Considerations  ROW land-use and environmental-base mapping in accordance with the US Fish and Wildlife Service and NYS Department of Environmental Conservation policies  Field surveys and time-of-year restrictions for protected and sensitive species  Invasive species, archaeological, and historic surveys  Wetlands delineation with location adjustments to avoid wetlands and other sensitive areas  Community input 9

Hypothetical Alternative Route 10

Hypothetical Alternative Route  Central Hudson 115 kV  Significant impact to property owners  Requires 7 miles of new transmission right-of-way  Significant environmental impacts  Swamp River  Habitat, natural environment, wetland  Requires 20-mile line vs mile line  Requires 13 miles of expansion of the Central Hudson ROW to accommodate 345 kV line 11

Simulated View 12 Town of Dover

13 Town of LaGrange Simulated View

14 Town of Union Vale Simulated View

15 Town of Pleasant Valley Simulated View

Simulated View-Taconic Pky 16

Article VII Review Steps  December 30, 2013: submission of Article VII application; copies distributed to area libraries  August 4, 2014: Public Statement Hearing in project area  Development of joint proposal: Public Service Commission (PSC) staff with input from interested parties  Recommendations by Administrative Law Judge (ALJ)  PSC Hearing and Determination in Albany  Certificate of Environmental Compatibility and Public Need 17

Construction  Total expected timeframe for Project completion: months  Construction activity for each structure is estimated to last approximately 2 weeks  Pre-Construction Steps:  Environmental Management and Construction Plan approved by Department of Public Service (DPS)  Manage ROW in accordance with Con Edison’s Vegetation Management Plan (VMP)  Finalize survey to identify sensitive areas, clearing areas, and structure locations 18

Construction Process  Construction Steps:  Establish laydown/staging areas—one primary area +/- 20 acres; additional storage areas, 2-3 acres each  Place construction matting where required for temporary access across wetlands  Establish structure foundations (rock anchors, rock micro- piles, conventional)  Set structures; install davits, insulators, and stringing blocks; string conductors  Re-grade and restore 19

Public Involvement to Date  December 2013  Public/Legal notices, Poughkeepsie Journal  Letters to Town Supervisors, County Executive  Letters to property owners abutting ROW  March 2014:  Launched CricketValleyTransmission.com  Published Winter Issue, CVE Update Newsletter, distributed 6785 copies  Posted Public Involvement Plan on website  Launched subscription sign up—now more than 350 subscribers 20

Public Involvement to Date  May/June 2014:  Presentation to Town Boards—Dover, Pleasant Valley, LaGrange, Union Vale  Held 4 public information meetings—Dover, Pleasant Valley, LaGrange, Union Vale  Promoted via website, postcards, press release, posters, advertisement, posting on town websites  August 2014  Two Advisory Working Groups scheduled:  August 26 - Community Outreach Office, Dover Plains, NY  August 27 - Pleasant Valley Town Hall 21

Public Involvement Media  Media outreach: - Hudson Valley Business Journal - Hudson Valley Press - Hudson Valley Reporter - Mid Hudson News - Northern Dutchess News - Southern Dutchess News - Poughkeepsie Journal - Putnam County News - Harlem Valley News - Millbrook Independent - Millerton News - WAMC Radio Advertisements - Poughkeepsie Journal - Northern Dutchess News - Southern Dutchess News - The Millbrook Independent - Hudson Valley News - PennySaver 22

Topics of interest 23 Pole Height  Reviewing design to reduce height of new monopoles Electric and Magnetic Field (EMF)  Within or below state and federal standards Underground Transmission Lines  Study for this project showed: –Burying a 345 kV transmission line would have a significant environmental impact –Blasting would be required –Additional above ground structures would be needed that would exceed the boundaries of the ROW