1. 2016 Attachment O Projected Net Revenue Requirements Customer Meeting October 29, 2015

2.  Agenda ◦ Welcome & Introductions ◦ Meeting Purpose ◦ Disclosure ◦ 2014-2016 Rate Comparison ◦ 2015-2016 AC Detailed Revenue Requirement Comparison ◦ 2015-2016 DC Detailed Revenue Requirement Comparison ◦ Questions 2016 Projected Customer Meeting 2

3.  Present 2016 Attachment O, GG, and ZZ revenue requirements for 2016  Compare 2015 & 2016 Attachment O, GG and ZZ formula rate calculation cost components  Comply with the Formula Rate Protocols 2016 Projected Meeting Purpose 3

4. ◦ Minnesota Power’s 2016 projected transmission rates are subject to change pending review by MISO and other Interested Parties. Information in this presentation is based upon Minnesota Power’s 2016 Projected Attachment O, filed at MISO on October 27, 2015. ◦ The dates and schedules represent Minnesota Powers best estimates for projects to be initiated and completed. Please be aware that many factors could alter those schedules, including regulatory approvals, availability of materials or construction resources, weather, and other unforeseen events. 2016 Disclosure 4

5. ◦ Submitted and posted on MISO’s website on October 27, 2015 ◦ MISO has completed its review of Minnesota Power’s 2014 True-Up Attachment O. The 2014 true-up amount, plus any interest will be applied to the annual 2016 Attachment O revenue requirement and rates. ◦ MISO has completed its review of 2016 Attachments O, GG, and ZZ and corresponding documentation. Minnesota Power 2016 Projected Attachment O, GG, & ZZ Formula Rate 5

6. Comparison of Monthly Rates* 2014 through 2016 ($kW/Mo) AC DC 2014$2.00$2.31 2015$2.37$2.14 2016$2.41$2.03 * The rates shown are based upon Minnesota Power Revenue Requirements. This is not the MP zonal rate. The MP zonal rate includes both Minnesota Power and Great River Energy revenue requirements and load. MISO calculates the zonal rate. Minnesota Power MISO Transmission Rates 2014-2016 6

7. Comparison - 2015 to 2016 AC Revenue Requirement 7

8. Comparison - 2015 to 2016 Revenue Requirement 8

9. Comparison - 2015 to 2016 Return Requirement Return Requirement = Rate Base x Weighted Cost of Capital 9

10. Change in Cost of Capital Comparison - 2015 to 2016 Return Requirement 10

11. Reconciliation of Change in Return Requirement Comparison - 2015 to 2016 Return Requirement 11

12. Comparison - 2015 to 2016 Revenue Requirement 12

13. Comparison - 2015 to 2016 Revenue Requirement Reconciliation of Change in Operating Costs 13

14. Comparison - 2015 to 2016 Revenue Requirement 14

15. Comparison - 2015 to 2016 Revenue Requirement Reconciliation of Change in Revenue Credits 15

16. Comparison - 2015 to 2016 Revenue Requirement 16

17. Comparison - 2015 to 2016 Revenue Requirement Reconciliation of Change in True-up 17

18. Comparison - 2015 to 2016 Revenue Requirement 18

19. Comparison - 2015 to 2016 Revenue Requirement 19

20. Comparison - 2015 to 2016 Revenue Requirement Reconciliation of Change in Attachment GG Revenue Requirement 20

21. Comparison - 2015 to 2016 Revenue Requirement 21

22. Comparison - 2015 to 2016 Revenue Requirement 22

23. Comparison - 2015 to 2016 Revenue Requirement Reconciliation of Change in AC Attachment ZZ Revenue Requirement 23

24. Comparison - 2015 to 2016 DC Revenue Requirement 24

25. Comparison - 2015 to 2016 Revenue Requirement 25

26. Comparison - 2015 to 2016 Return Requirement Return Requirement = Rate Base x Weighted Cost of Capital 26

27. Change in Cost of Capital Comparison - 2015 to 2016 Return Requirement 27

28. Reconciliation of Change in Return Requirement Comparison - 2015 to 2016 Return Requirement 28

29. Comparison - 2015 to 2016 Revenue Requirement 29

30. Comparison - 2015 to 2016 Revenue Requirement Reconciliation of Change in Operating Costs 30

31. Comparison - 2015 to 2016 Revenue Requirement 31

32. Comparison - 2015 to 2016 Revenue Requirement Reconciliation of Change in Revenue Credits 32

33. Comparison - 2015 to 2016 Revenue Requirement 33

34. Comparison - 2015 to 2016 Revenue Requirement Reconciliation of Change in True-up 34

35. Comparison - 2015 to 2016 Revenue Requirement 35

36. Comparison - 2015 to 2016 Revenue Requirement 36

37. Comparison - 2015 to 2016 Revenue Requirement Reconciliation of Change in DC Attachment ZZ Revenue Requirement 37

38. Questions? 2016 Transmission Customer Meeting 38

39. Contacts: Jeanne Kallberg jkallberg@mnpower.com (218) 355-2648 Kara Henderson khenderson@mnpower.com (218) 355-2869 2016 Transmission Customer Meeting 39