1. ICT Strategic Transmission Plan (ISTEP) Review and Status Update Entergy Transmission Summit July 29, 2008 Astor Crown Plaza New Orleans, Louisiana Douglas Bowman, PE Lead Engineer, ICT Planning 501-688-1640 dbowman@SPP.org dbowman@SPP.org

2. ISTEP ICT Strategic Transmission Expansion Plan Attachment K –Paragraph 14.1 - “The ICT will identify potential economic upgrades on the Transmission System, including upgrades to existing facilities as well as construction of new facilities.” –Paragraph 14.3 – “The ICT will identify such upgrades based on screening criteria, which may include considerations such as frequent transmission loading relief events, frequently constrained flowgates in the Available Flowgate Capability process or Weekly Procurement Process (WPP), flowgates with high congestion costs as identified in the WPP process, and commonly invoked must-run operating guides.”

3. ISTEP Scope and Purpose Promote transmission expansion on the Entergy transmission system by identifying and developing economic projects that address transmission constraints through powerflow studies and stakeholder input Focus on creating new, higher-voltage transmission in order to address potential issues on the Entergy transmission system, as opposed to upgrading the underlying lower-voltage system. Not used for cost allocation Entergy is not obligated to construct ISTEP projects Not related to reliability requirements

4. ISTEP Objective Improve Load-Serving Capability Improve Inter-regional Transfer Capability Improve Load Pockets/Load Centers Relieve Constraining Flowgates

5. ISTEP Phase I Completed 12/2007 Identified Operational Limitations –213 TLRs resulting in curtailment of 340GWh of firm and non-firm transmission service from January to October, 2007. Identified Transfer Capability Limitations –Most limiting flowgates identified

6. ISTEP Phase I (continued) Modeling –2015 Summer Peak Case –Includes 2008 Construction Plan upgrades –Does not include Base Plan upgrades –Does not include Operating guides, redispatch, breaker operation, or other mitigation plans

7. ISTEP Phase I (continued) 20 proposed projects consisting of one or more transmission upgrades Proposed Projects –Louisiana – 7 Projects –Arkansas – 5 Projects –Mississippi – 5 Projects –Texas – 1 Project –Other – 2 Short Term Projects

8. ISTEP Phase II Stakeholders ranked Phase I projects Approximately 20 stakeholder responses Top 5 were selected from each stakeholder ranking Final ranking was developed using a combination of stakeholder rankings and the ICT’s knowledge of the Entergy system.

9. ISTEP Phase II Projects South LA Bulk Central Arkansas 230 kV Acadiana Area Central MS Bulk McAdams Series Reactor Seams Projects

10. South LA Bulk Projects address: WOTAB Import Constraining flowgates Acadiana Flowgates: Webre – Wells Mt. Olive – Hartburg Wilbert – Livonia Terrebonne – Greenwood Cecelia – Moril Meaux - Judice South LA & Acadiana Fancy Point – Hartburg 500 kV Webre – Richard 500kV

11. Projects address: Constraining flowgates Flowgates: – Morrilton East- Gleason –Conway- Donaghey Cabot-Gold Creek 230kV Gleason - Conway W. 230 kV Gold Creek- Conway Industrial 230kV Central AR 230kV Conway W. – Conway Ind. 230kV Central AR 230kV

12. Projects address: Constraining flowgates Flowgates: – Morrilton East- Gleason –Conway- Donaghey Kanis-Mabelvale 230 kV Wrightsville-Little Rock South 230kV Kanis 230/115kV transformer Little Rock South 230/115kV transformer Wrightsville 500/ 230kV transformer Mabelvale 500/230kV transformer Central AR 230kV

13. Projects address: Constraining flowgates Flowgates: – Morrilton East- Gleason –Conway- Donaghey Mt. Pine South- Carpenter 230 kV Carpenter-Hot Springs EHV 230kV Hot Springs- Cheetah 230kV Mabelvale- Cheetah 230kV Cheetah-Mt. Pine South 230kV Hot Springs EHV 500/230kV transformer Central AR 230kV

14. Acadiana Area Projects address: WOTAB Import Constraining flowgates Acadiana Flowgates: Webre – Wells Mt. Olive – Hartburg Wilbert – Livonia Terrebonne – Greenwood Cecelia – Moril Meaux - Judice South LA & Acadiana Richard – Sellers 230 kV Sellers – Meaux 230 kV Sellers– Segura 230 kV Sellers – Labbe 230kV Labbe – Bonin 230 kV Wells – Labbe 230kV

15. Projects address: Constraining flowgates Flowgates: Ray Braswell – Baxter Wilson Central MS Bulk Grand Gulf – Ray Braswell 500 kV Central MS Bulk

16. McAdams Series Reactor Install a 36Ω reactor in series with McAdams 500/230 kV transformer McAdams Series Reactor 500/230kV

17. Seams Projects Ft. Smith-ANO-ISES 500kV El Dorado – Longwood Series Compensation Messick 500/230 Ft. Smith-NW Texarkana-McNeil 500kV- Turk S. Fayetteville – Van Buren – ANO 500kV

18. Ft. Smith – ANO – ISES 765 kV Ft. Smith – ANO – ISES 500 kV Projects address: Improve SPP/Entergy Interface

19. El Dorado – Longwood Series Compensation Increase Transfer Capability of the Line El Dorado – Longwood Series Compensation

20. Messick 500/230 kV Mt Olive – Hartburg Tap Stability Issue Improve SPP/Entergy Interface Existing Mt. Olive - Hartburg 500kV Messick 500/230kV

21. Ft. Smith – NW Texarkana – Turk – McNeil 500 kV FT. Smith – NW Texarkana 500kV NW Texarkana – Turk 500kV Turk – McNeil 500kV Turk Projects address: Improve SPP/Entergy Interface

22. S. Fayetteville – Van Buren – ANO 500kV S. Fayetteville – Van Buren 500 kV Van Buren – ANO 500kV Projects address: Improve SPP/Entergy Interface

23. Status South LA Bulk –Engineering analysis complete –Economic analysis proceeding Central Arkansas 230 kV –Engineering analysis underway Acadiana Area –Engineering analysis complete –Currently in stakeholder negotiations

24. Status (continued) Central MS Bulk –Engineering analysis underway McAdams Series Reactor –Engineering analysis complete –Currently in stakeholder negotiations Seams Projects –Engineering analysis underway

25. ISTEP Timeline ISTEP Phase I Report Published Dec. 4, 2007 LTTIWG Meeting: Discuss comments and establish scope for additional analysis Feb. 12, 2008 Stakeholder comment period Stakeholder comment period ends Feb. 1, 2008 LTTIWG Meeting: Present status update and list of seams projects for analysis May, 2008 Transmission Summit: Present update of study status July, 2008 LTTIWG Meeting: Present update of study status and Webre – Wells Economic Study Results September, 2008 Complete ISTEP Phase II December, 2008 LTTIWG Meeting: Present Final Strategic Plan Phase II Report January, 2009 LTTIWG Meeting: Present update of study status October, 2008

26. Next Steps ICT to study ISTEP projects in further detail –Continue engineering analysis of ISTEP and seams projects –Complete Webre-Wells economic analysis –Complete economic analysis of remaining ISTEP and seams projects