1 Entergy Arkansas, Inc. Proposed Transmission Projects Entergy Transmission Planning Summit New Orleans, LA July 29, 2008

EAI Transmission Projects 1.) Dewitt Capacitor Bank Installation 2 2.) Maumelle East Substation – Install 2 nd 115 kV Transmission Line 3.) Little Rock 8 th & Woodrow and Little Rock Boyle Park Capacitor Bank Upgrade Little Rock Rock Creek and Little Rock West Markham Capacitor Bank Installations 4.) Rison Substation Upgrade Switch Risers 3 4 1

EAI Transmission Projects 1.) Gillette Capacitor Bank Installation 2.) Pangburn Capacitor Bank Installation 3.) SMEPA Upgrades 4.) Magnolia 115 kV Switching Station 5.) Grandview 161 kV Substation 6.) Holland Bottoms 500/115 kV Substation

4 Dewitt: 10.8 MVAR Capacitor Bank Scenario: Loss of the Helena Industrial - Ritchie SES 115 kV line segment causes low voltages at various substations Loss of the Stuttgart Ricusky 230/115 kV autotransformer causes low voltages at various substations and overloads on the Woodward – Altheimer and the Altheimer – Wabbaseka 115 kV line segments Proposed Solution: Install a 10.8 MVAR capacitor bank at Dewitt. Correct Distribution power factor at Dewitt, Almyra, Marvell, Gillett, Helena Central, and Ulm substations. Estimated Cost: $800 K 2008

5 Dewitt: 10.8 MVAR Capacitor Bank Dewitt: Install 10.8 MVAR Capacitor Bank

6 Maumelle East: 2 nd 115 kV Transmission Line Scenario: Significant load growth in the Maumelle area justified removing Maumelle East from radial service. The loss of the Maumelle East – Maumelle SS line results in a complete outage to the Maumelle area. Proposed Solution: Tap the Maumelle SS to North Little Rock Levy 115kV Transmission line about 1 mile South of the Maumelle SS. Construct a 115kV Transmission line from the new tap to Maumelle East. The new 115kV Transmission line will be operated “Normally Open” Estimated Cost: $4.5 M 2008

7 Maumelle East: 2 nd 115 kV Transmission Line Maumelle East Construct 2 nd 115kV Transmission Line Maumelle East Construct 2 nd 115kV Transmission Line

8 Little Rock Capacitor Banks Scenario: For the past two summers, several stations in Little Rock observed voltages as low as 91% of nominal with no significant contingencies. The loss of one of the 500/115kV transformers at Mabelvale in 2006 resulted in low voltages in the Little Rock area during periods where heavy flows to the north were occurring. A loss of the second transformer at Mabelvale (N-2) could result in widespread low voltage in the Little Rock area. Proposed Solution: Prior to the Holland Bottoms 500/115kV Substation (formally known as Cabot EHV), Upgrade the Capacitor Banks at Little Rock 8 th and Woodrow and Little Rock Boyle Park to 36 MVAR capacitor banks and install a 32.4 MVAR capacitor bank at Little Rock Rock Creek and Little Rock West Markham. Estimated Cost: $3 M 2008

9 Little Rock Capacitor Banks LR West Markham Install Capacitor Bank LR Boyle Park Upgrade Capacitor Bank LR 8 th & Woodrow Upgrade Capacitor Bank LR Rock Creek Install Capacitor Bank

10 Rison Substation: Upgrade Switch Risers Scenario: The switch risers at Rison substation are a limiting factor on the Fordyce to Woodward 115 kV Transmission line. The risers on switches B0337 and B0837 were constructed using 4/0 conductor. By upgrading the 4/0 risers, the limit on the Fordyce to Woodward line would increase from 96 MVA to 119 MVA. Proposed Solution: Upgrade the 4/0 risers at Rison Substation on switches B0337 and B0837 In order to remove the jumpers, the power transformer will have to be removed from service and a mobile transformer will have to be in place to serve the load during the upgrades. Estimated Cost: $100 K 2008

11 Rison Substation: Upgrade Switch Risers

12 Gillette: 10.8 MVAR Capacitor Bank Scenario: Loss of the Helena Industrial - Ritchie SES 115 kV line segment causes low voltages at various substations Loss of the Stuttgart Ricusky 230/115 kV autotransformer causes low voltages at various substations and overloads on the Woodward – Altheimer and the Altheimer – Wabbaseka 115 kV line segments Proposed Solution: Install a 10.8 MVAR capacitor bank at Gillette. Correct Distribution power factor at Dewitt, Almyra, Marvell, Gillett, Helena Central, and Ulm substations. Estimated Cost: $850 K 2009

13 Gillette: 10.8 MVAR Capacitor Bank Gillette: Install 10.8 MVAR Capacitor Bank

14 Pangburn: 36 MVAR Capacitor Bank Scenario: Rutherford 161kV Substation has a 36 MVAR capacitor bank that the TOC can not switch during contingency events due to the large voltage swing caused by the capacitor bank. Without the Rutherford capacitor bank, loss of the Independence to Newark 161 kV line segment causes low voltages at various substations along the Independence to Searcy Price line. Proposed Solution: Remove the 36 MVAR capacitor Bank at Rutherford and move it to the Pangburn 161 kV Substation Estimated Cost: $500 K 2010

15 Pangburn: 36 MVAR Capacitor Bank Panburn: Install 36 MVAR Capacitor Bank Rutherford: Remove 36 MVAR Capacitor Bank

16 SMEPA To Plum Point Upgrades Scenario: SMEPA requested long term transmission service from Plum Point Unit 1 under Entergy’s OATT. Proposed Solution: In order to remove the violation caused by the Transmission Service Request, the following upgrades must be made: –Re-conductor Dell to AECC Manila 161 kV Transmission Line –Re-conductor AECC Manila to Monette 161 kV Transmission Line –Re-conductor Jonesboro North to Paragould South 161 kV Transmission Line –Re-Conductor Jonesboro to Jonesboro North 161 kV Transmission Line Estimated Cost: $22 M 2010

17 SMEPA To Plum Point Upgrades Upgrade 161 kV Transmission Line from Dell to AECC Manila Upgrade 161 kV Transmission Line from AECC Manila to Monette Upgrade 161 kV Transmission Line from Jonesboro North to Paragould South Upgrade 161 kV Transmission Line from Jonesboro to Jonesboro North

18 Magnolia 115 kV Switching Station Scenario: The loss of the McNeil to Magnolia East 115kV line segment causes low voltages at Magnolia East, Magnolia Steel, Kerlin and Emerson with the lowest voltage at Magnolia East. The Taylor to Springhill line may overload to 120%. With the Sarepta project in service. the scenario is improved but some low voltage in the area remain. Proposed Solution: Construct a switching station in Magnolia where the 115kV lines of Magnolia East to Magnolia Steel and Magnolia South to Shuler cross. Estimated Cost: $3.5 M 2011

19 Magnolia 115 kV Switching Station Magnolia Switching Station

20 Grandview 161 kV Substation Scenario: By 2010 it is estimated that approximately 227 MW of load will be served between Harrison East and Eureka Springs. Nearly 110 MW of the load will be located at Osage Creek, at the extreme northwest end of the line. Loss of the Harrison East – Harrison South transmission line segment causes thermal overloads by as much as 7% on the Eureka – Osage Creek (AECC) line segment. Loss of this line also causes depressed voltage at Osage Creek. Proposed Solution: Construct a new switching station, Grandview, on the transmission line from Table Rock Dam – Eureka Springs. Build a new line between Grandview and Osage Creek. Estimated Cost: $6 M 2011

21 Grandview 161 kV Substation Grandview

22 Holland Bottoms 500/115kV Substation (Formally Cabot EHV) Scenario: For the past two summers, several stations in Little Rock observed voltages as low as 91% of nominal with no significant contingencies. The loss of one of the 500/115kV transformers at Mabelvale in 2006 resulted in low voltages in the Little Rock area during periods where heavy flows to the north were occurring. A loss of the second transformer at Mabelvale (N-2) could result in widespread low voltage in the Little Rock area. Proposed Solution: Construct a 500/115kV substation near Cabot Northeast of Little Rock. This will provide voltage support to Little Rock and reduce some thermal contingencies. Estimated Cost: $60 M 2011

23 Holland Bottoms 500/115kV Substation (Formally Cabot EHV) Holland Bottoms 500/115 kV Substation

24 Transmission System Target Areas 2012 and Beyond 1.) Norfork – Bull Shoals 161 kV Re-Conductor 10.) El Dorado Area Improvements 5.) Holland Bottoms – Gold Creek 161 kV Transmission Line 7.) Hot Springs Re- Conductor 115kV Transmission Lines 6.) Little Rock Re- Conductor 115kV Transmission Lines 9.) Gobel 230/115 kV Substation ) Mt View – Hilltop 161 kV Transmission Line 8.) Gumsprings 115 kV Switching Station 4.) Corning – Texas Eastern Re- Conductor 115kV Transmission Line 3.) Russellville Area Improvements