ISTEP Phase II Final Report Summary

1. ISTEP Phase IIFinal Report Summary LTTIWG Meeting – January 27, 2009 Douglas Bowman, PELead Engineer, ICT Planning501-688-1640dbowman@SPP.org

2. Executive Summary • 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. Background • Phase I Report 12/4/2007 • 20 Projects proposed • Stakeholder Priority Ranking of Projects – 5 projects • Acadiana Upgrades • South LA Bulk • Central AR 230kV • Central MS Bulk • McAdams Series Reactor • Phase II – Study these 5 projects

4. ISTEP Phase II Projects • McAdams • CentralArkansas • Central • Mississippi Bulk • South Louisiana • Bulk • Acadiana • Load Pocket

5. Analysis • Engineering • PSSE, PTI Must • Contingency Analysis • Transfer Capability Analysis • Economic • GridView • Congestion Analysis

6. Wells –Labbe 230 kV Wells –Labbe 230 kV Wells –Labbe 230 kV Wells –Labbe 230 kV Labbe – Bonin 230 kV Labbe – Bonin 230 kV Labbe – Bonin 230 kV Labbe – Bonin 230 kV Richard – Sellers 230 kV Richard – Sellers 230 kV Richard – Sellers 230 kV Richard – Sellers 230 kV Sellers – Labbe 230 kV Sellers – Labbe 230 kV Sellers – Labbe 230 kV Sellers – Labbe 230 kV Sellers Sellers Sellers Sellers Sellers– Moril 230 kV Sellers– Moril 230 kV Sellers– Moril 230 kV Sellers– Moril 230 kV Sellers – Meaux 230 kV Sellers – Meaux 230 kV Sellers – Meaux 230 kV Sellers – Meaux 230 kV Acadiana Upgrades • Study Report 10/20/08 • MOU agreement • Cleco Power • Entergy Gulf States • Lafayette Utilities System • Press Release • $200MM Cost Estimate • $107MM savings per year • 1.9 year simple payback

7. South LA Bulk • AKA Webre-Wells Project • Wilbert_Champ_Wells 230kV + Acadiana Upgrades Recommended • Eliminates WW N-1 overloads • Eliminates 91 base case N-1 contingency overloads • Multiple flowgates relieved • $325MM Cost Estimate • $117MM savings per year • 2.8 year simple payback

8. Central AR 230kV • Little Rock 230kV Upgrades Recommended • Relieves overloads of various elements in LR Area • Increases voltages in LR • Conway flowgates relieved • $111MM Cost Estimate • $29MM savings per year • 3.8 year simple payback

9. Central MS Bulk • 1Upgrade: Grand Gulf – Ray Braswell 500kV • Small improvement in transfer capability • Project not economically feasible • The upgrade Ray Braswell – Baxter Wilson 500kV terminal breakers and switches ($7.16MM) may provide potential benefits. Future study?

10. McAdams Series Reactor • February 2008 - ICT Report • Increased transfer capability between TVA/Entergy • Summer 2008 - McAdams 500/230kV transformer re-rated and fans added – Rating 560MVA >>>> 615MVA • Affected System Study – impediments to transfer • Pelahatchie – Morton 115kV Upgrade • South Jackson – Florence 115kV Upgrade • Should be included in Entergy’s 2009 Construction Plan

11. Next Steps • Phase II Results • Parties interested in pursuing these projects should perform detailed studies to determine stakeholder-specific benefits • Parties interest in constructing upgrades should approach the ICT to engage in joint process with Entergy to determine estimates, timelines, agreements, etc. • Phase III – 2009 • SPP/Entergy Seams projects • Projects to improve system economic dispatch • Other beneficial projects