RIO GRANDE ELECTRIC COOPERATIVE, Inc. Eagle Ford Consortium Conference April 22, 2014

Topics 1.About Rio Grande Electric Cooperative 2.Service territory as related to Eagle Ford region 3.Local area offices and contact information 4.General electrical services offered 5.Typical electrical services for oil & gas industry 6.Business information and process 7.Challenges faced serving the Eagle Ford Shale

Rio Grande Electric Cooperative “Owned by Those We Serve” Organized: 1945 Headquarters: Brackettville, Texas - Kinney County Service Territory: 35,000 sq. miles along Rio Grande River Memberships: 6,222 members with 12,950 meters Meter Density: 1.34 average meters per mile of line

Rio Grande Electric Cooperative RGEC provides electric service to: –18 counties in Texas –2 counties in New Mexico –3 delivery points to Mexico along Rio Grande River

Rio Grande Electric Cooperative Texas Service Territory

Rio Grande Electric Cooperative Major Facilities: –143 miles of self serving transmission line –9,775 miles of overhead distribution line –155 miles of underground distribution line –18 substations –4 substations located in Eagle Ford Shale region: Eagle Pass (Rosita Creek) Carrizo Springs Crystal City Brundage RGEC also owns and operates 2 privatized military electrical distribution systems: –Ft. Bliss (El Paso) –Laughlin AFB (Del Rio)

Rio Grande Electric Cooperative Eagle Ford Shale counties served: –Edwards –Maverick –Zavala –Dimmit –Webb

Rio Grande Electric Cooperative Area offices are located in: –Alpine –Brackettville (HQ & office for Edwards county) –Carrizo Springs (main office for Eagle Ford Shale region) –Dell City –El Paso –Ft. Stockton

Carrizo Springs Area Office 3204 Valley Street P.O. Box 125 Carrizo Springs, Texas Telephone: (830) Toll Free: 1-(800) Fax: (830) RGEC Area Office for Main Eagle Ford Shale Region Ken Buscher Area Operations Manager

RGEC Electrical Services General Single & Three Phase Service Residential Seasonal / Recreational Water Wells / Irrigation Temporary & Stand-By Power Area Lighting RioNet Satellite Internet Service

RGEC Electrical Services Typical for OIL and GAS INDUSTRY Temporary Construction Power RV Parks & “Man Camps” Oil Pipeline Valves Pipeline Cathodic Protection Large Power (loads > 50 KW) –Oil Well Pumping –Oil Pipeline Booster Pump Station –Gas Compressor Station

RGEC Electrical Services For OIL and GAS INDUSTRY Major Large Power Requirements Primary Metering Stations –Typically 14.4/24.9 KV Three-Phase –Some of EFS area may be 7.2/12.47 KV 3Ø Substation –Express Distribution Feeder to Major Load –Step-Down Substation to Desired Voltage Wholesale Transmission Service

RGEC Business Information Website: –Bylaws –Tariff –Rate Schedule –Service Area Maps –Area Office Locations –Distributed Generation Manual

RGEC Service Request Process Become member of the Cooperative –File Membership Application –$5 Membership Fee –Establish Credit New Service Request –$250 Application Fee –Certificate of Tax Exemption (if applicable) –Certificate of Compliance (from local county) –Designate Account Representative (DR) –Provide copy of property deed(s) involved –Grant or obtain easements for power line ROW

Challenges RGEC faces serving large Eagle Ford Shale loads Existing capacity limited: power lines/capacity is sparse some areas Piecemeal load service requests – understanding the “big picture” (ie, longer term load requirements) will facilitate better analysis and planning ROW confusion: Actual property owner has to grant easement for RGEC power lines – NOT the entity with surface agreement DIG-TESS response: need prompt and accurate pipeline locating Security concerns: for personnel working in remote areas near border “Hunting season”: can limit field engineering activities and impact power line construction schedules – causing delays for service “Last minute service requests”: make contact with utility early for ROM assessment of service requirements, service territory verification, etc.