1. ©2009 Office of Massachusetts Attorney General Martha Coakley Transmission Planning & Construction “When, Where, How Much and Who Pays” -Comments by Fred Plett, -Utility Analyst

2. Page 2 ©2009 Office of Massachusetts Attorney General Martha Coakley Fred Plett Presentation to NASUCA June 30, 2009 Joint Coordinated System Plan Midwest ISO, TVA, SPP, PJM, MAPP, NYISO, and ISO-NE 20% wind scenario Transmission Dakotas to the Northeast $80 Billion 2024 Benefit – Cost Ratio of 1.0!! If wind projects get built Transmission cost may be 3-4 times higher!

3. Page 3 ©2009 Office of Massachusetts Attorney General Martha Coakley Fred Plett Presentation to NASUCA June 30, 2009 Testimony in Favor ITC Holdings, Inc - Green Power Express Energy Futures Coalition - JCSP studies, 3-1 BC Ratio FERC Chair Wellinghoff Subcommittee on Energy & Environment The Future of the Grid: Proposals for Reforming National Transmission Policy

4. Page 4 ©2009 Office of Massachusetts Attorney General Martha Coakley Fred Plett Presentation to NASUCA June 30, 2009 New England Transmission Renewables in Northern NH and ME Northern New England View Economic Development Opportunity Socialized Rate-Based Transmission Costs Massachusetts View “Build it and they will come” not Desirable Giant Generator Interconnect Generator Responsible Costs Certain, Benefits Not

5. Page 5 ©2009 Office of Massachusetts Attorney General Martha Coakley Fred Plett Presentation to NASUCA June 30, 2009 Hydro-Québec TransÉnergie, NU and NSTAR HVDC Model Des Cantons, Québec - NH US portion built by NU and NSTAR Cost of Service Recovery from HQ US Hydropower Sale to include Transmission Cost 25 Year Transmission, Purchase Agreements All – In Cost Must Be Competitive!

6. Page 6 ©2009 Office of Massachusetts Attorney General Martha Coakley Fred Plett Presentation to NASUCA June 30, 2009 Local vs. Midwest 100 – 250 Miles vs. 1,800 Miles! Same Discussions - Who Pays, Who Benefits Costs Certain, Benefits Conditional – But Costs Likely Lower Locally

7. Page 7 ©2009 Office of Massachusetts Attorney General Martha Coakley Fred Plett Presentation to NASUCA June 30, 2009 Distances

8. Page 8 ©2009 Office of Massachusetts Attorney General Martha Coakley Fred Plett Presentation to NASUCA June 30, 2009 Discussion Requirements Bottom Up Planning Stakeholder Input and Acceptance Proven Benefit Cost Ratio Purchase Power Agreements Performance Warranties All-In Costs must Benefit Consumers!

9. Page 9 ©2009 Office of Massachusetts Attorney General Martha Coakley Fred Plett Presentation to NASUCA June 30, 2009 Project Cost Control Helps Ensure Positive Benefit Cost Ratios Projects get built, may go into formula rates (non-Merchant projects) Should FERC be more aggressive in Prudence Reviews?