1. 1 TREATMENT OF CROSS- SOUND CABLE Installed Capacity Stakeholder Process Working Group Long Island Power Authority Proposal May 11, 2006

2. 2 CROSS-SOUND CABLE Privately owned Controllable - using DC technology Interconnection - Interconnecting the New England Control Area with the New York Control Area

3. 3 HYDRO QUEBEC Privately owned Controllable - using DC technology Interconnection - Interconnecting the New England Control Area with the Hydro Quebec System

4. 4 CROSS-SOUND CABLE Proposal: –CSC should be treated in a similar manner as the Hydro Quebec Interconnection

5. 5 HYDRO QUEBEC Treated independent of and prior to consideration of all other ties. Benefits based on Load and Capacity situation of the Hydro Quebec System. Any Surplus Capacity is considered available to New England up to the transfer capability of the tie. Benefits of the tie granted to the Rights Holders in the form of HQICCs.

6. 6 CROSS-SOUND CABLE Interconnects the NE Control Area with the NY Control Area. Benefits should be based on the Load and Capacity situation of the NY Control Area. Any Surplus Capacity should be considered available to New England up to the transfer capability of the Cross-Sound Cable. Benefits of the tie should be granted to the Rights Holders of the Cross-Sound Cable in the form of Capacity Credits.

7. 7 TIE LINE METHODOLOGY Recommendation: –Develop a methodology that treats all tie lines in a comparable manner and allocates benefits appropriately