Status of the Planning Working Group’s (PWG) Efforts Andrew Fusco May 12, 2006

Agenda Purpose of the PWG 2006 NCTPC process PWG efforts to date Next steps DRAFT

Purpose of the PWG Coordinates the development of the transmission studies to support the NCTPC Establishes a base case model Performs Resource Supply Option studies – focused on reliability Performs Enhanced Access studies – focused on power supply economics Develops cost and schedule estimates DRAFT

NCTPC Process Flowchart PWG evaluates reliability problems and current transmission upgrade plans PWG develops and the OSC approves the reliability study scope PWG coordinates the study analysis, identifies reliability problems, develops solutions with estimates of costs and schedules Participants and TAG recommend scenarios and interfaces. The OSC selects interface and scenario studies for analysis PWG coordinates the study analysis, identifies access problems, develops solutions with estimates of costs and schedules Reliability Planning Enhanced Transmission Access Planning OSC selects reliability and enhanced access solutions; checks for improved reliability through enhanced access solutions OSC creates final draft Collaborative Plan Feedback and Iterative Studies Participants and TAG review the reliability study results Participants’ resource planning processes Participants and TAG review the enhanced access study results TAG feedback on final draft Collaborative Plan OSC approves final Collaborative Plan PWG develops and the OSC approves the enhanced access study scope NCTPC Process Flowchart DRAFT

2006 Overview Schedule DRAFT Reliability Planning Process Develop Reliability Study Scope Perform analysis, identify problems, and develop solutions Review Reliability Study Results Evaluate current reliability problems and transmission upgrade plans Enhanced Access Planning Process Propose and select enhanced access scenarios and interface Develop Enhanced Access Study Scope Perform analysis, identify problems, and develop solutions Review Enhanced Access Study Results Collaborative Plan Development OSC publishes DRAFT Plan TAG review and comment Combine Reliability and Enhanced Results TAG Meetings 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter DRAFT

NCTPC Process Flowchart - REVISED PWG evaluates reliability problems and current transmission upgrade plans PWG develops and the OSC approves the reliability study scope PWG coordinates the study analysis, identifies reliability problems, develops solutions with estimates of costs and schedules Reliability Planning OSC selects reliability and enhanced access solutions; checks for improved reliability through enhanced access solutions OSC creates final draft Collaborative Plan Feedback and Iterative Studies Participants and TAG review the reliability study results Participants’ resource planning processes TAG feedback on final draft Collaborative Plan OSC approves final Collaborative Plan DRAFT

2006 Overview Schedule - REVISED Reliability Planning Process Develop Reliability Study Scope Perform analysis, identify problems, and develop solutions Review Reliability Study Results Evaluate current reliability problems and transmission upgrade plans Collaborative Plan Development Finalize Reliability Results OSC publishes DRAFT Plan TAG review and comment TAG Meetings 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter DRAFT

PWG Efforts to Date First PWG meeting in September 2005 Sept – Dec: Compared reliability planning assumptions used by Duke and PEC Oct – Jan: Developed scope for 2006 reliability study DRAFT

PWG Efforts to Date Dec – Jan: Provided data for base case development Load and resource forecasts Dispatch order for resources Coordinated interchange Contingency and monitored line lists DRAFT

PWG Efforts to Date Jan – Feb: Developed merged detailed base case Feb – Mar: Developed potential alternative resource options for study Mar – Apr: Performed base case and some generator maintenance reliability screenings Apr: Reviewed initial reliability screenings DRAFT

Next Steps Complete studies for Resource Supply Options Identify reliability problems Develop solutions Develop technical solutions Develop cost and schedule estimates for solutions Recommend alternative resource options for study DRAFT