1. DATA COLLECTION William McCarty Chairman Indiana Utility Regulatory Commission September 9-10 Riga, Latvia

2. What Information Do You Need? I suggest that you start with the presumption that you need to be able to obtain all information. Justice Brandies (U.S. Supreme Court) wrote: “There are certain industries that are clothed with the public interest” and require public oversight. Efficient markets require openness - “transparency.” The success of the financial markets in the U.S. is due to transparency and effective oversight. While the presumption should be that all information is public, some information should be “confidential” since we all recognize that the disclosure of some information could enable parties to take unfair advantage of their competitors. Even if it is confidential, you ought to be able to obtain it provided you can protect the confidentiality. Claims of confidentiality should be very limited and specific. Information that is already in the public domain or that isn’t competitively sensitive should not be confidential. 2

3. WHAT INFORMATION DO YOU NEED? Planning –Regional Transmission Organizations (RTOs) will be conducting regional planning: Generation Transmission Demand- Management –Indiana and many other States continue to require utilities to engage in “Integrated Resource Planning” (IRP) that considers all aspects of utility operation -the generation, transmission and distribution of electricity. IRP is intended to make sure that utilities give due consideration to all cost effective alternatives to meet the short-run and longer term electrical demands of their customers. –Generation –Transmission –Demand-Management –The roles of the RTOs, the Federal Government and the State Governments Should be complimentary 3

4. WHAT INFORMATION DO YOU NEED? The cost of producing electricity –You will need to know the prices paid by generators for fuel. –You will need to know the operating characteristics of power plants (e.g., their heat rates, capacities, outage information) to develop benchmarks. Information from electricity markets –Regional Transmission Organizations in the U.S. establish “Day-Ahead” and “Real-Time” markets while encouraging longer-term transactions. To ensure the integrity of the markets, these prices should be “transparent” so they should be publicly available like the stock market. –Federal and state agencies have considerable financial and statistical information that should be comprehensive. 4

5. What Information Do You Need? Integrated Resource Planning Rules –Historic demand and energy data –20-year demand and energy forecast –Alternative resource options Demand-side – customer focused Supply-side – range of technologies and fuel types –Environmental Compliance Factors –Selected Integrated Resource Plan –Alternative Scenarios –Sensitivity to Input Factors 5

6. What Information Do You Need? Indiana annually collects data from its utilities regarding their summer peaking needs. Following is the data that was collected for 2004: –For Summer 2003, what were your monthly peak demands, date and time? –For Summer 2004, what are your projected monthly peak demands? –Please describe the generating resources you will have available to meet your summer peak demand needs. –Please describe any firm purchase power contracts you have in place to meet Summer 2004 peaking needs. –What actions has your utility taken to reduce your peak demand needs? 6

7. What Information Do You Need? Summer 2004 data collection – continued –How do environmental compliance requirements affect your ability to meet peak demand needs? –Please describe any transmission-related issues that may affect your ability to meet peak demand needs. –Are there any distribution-related factors that may affect the delivery of electricity to the end-use customer? 7

8. WHAT INFORMATION DO YOU NEED? Indiana periodically surveys the operating results of its merchant plant facilities. The 2004 survey requested the following information: Q1.Please provide the number of operating hours for 2002 and 2003. Q2.Please provide the total number of MWhs produced in 2002 and 2003. Q3.Please indicate the output by month for 2002 and 2003. Q4.What was your total revenue in 2002 and 2003? Q5.Was any of the output in 2002 or 2003 sold to an electric utility under a power sales contract? If yes, what percentage of the output was sold under contract? 8

9. INFORMATION YOU RECIEVE IPP 1IPP 2IPP 3IPP 4 Question 156 hrs21 hrs2,446 hrs2,180 hrs Question 22,397 MWhs1,591 MWhs267,677 MWhs 389,194 MWhs Question 4$35,887,580$0$16,535,643 Question 5Dispatched to meet IPL native load 100% sold to a utility under contract No sales under contract - testing All output sold to marketer – Energy USA

10. INFORMATION YOU RECIEVE Question 3 2003 (MWhs) IPP 1IPP 2IPP 3IPP 4 January February March April May June July August September October November December (84) (81) 222 (163) (55) 41 73 2,599 72 (72) (79) (76) 0 268 1,323 0 1,903 34,837 0 2,399 3,346 45,730 78,279 102,707 0 56,692 100,041

11. ENFORCEMENT AUTHORITY For Benchmarking and Data Collection It is essential that regulatory commissions have the authority to compel jurisdictional companies to provide information and to monitor benchmarks. –Fining authority –Sanction authority – including restitution –Structural remedies such as preventing mergers or acquisitions that are not in the public interest The goal should not be to use these authorities but for them to serve as a deterrent where possible. When these authorities are used, “due process” must be ensured. 11