Cleco Transmission Planning Summit 2013 Coughlin Transmission Operations Center May 9, 2013 10:00 – 11:00am

Introduction Welcome Terry Whitmore, Mgr- Trans Strategy & Support James Simms, Lead Engineer- Transmission Strategy Chris Thibodeaux, Lead Engineer- Transmission Strategy Linh Tran, Associate Engineer- Transmission Strategy Cindy Guillot, Director Trans Policy and Contracts A brief introduction of the meeting participants is made here.

Agenda Introduction Economic Planning Studies Acadiana Load Pocket Update 2013 Transmission Construction Plan Model Review 2013 SPP Model ACCC Results MISO Discussion Stakeholder Business Final Questions Adjourn Go over the meeting agenda.

Agenda Introduction Economic Planning Studies Acadiana Load Pocket Update 2013 Transmission Construction Plan Model Review 2013 SPP Model ACCC Results MISO Discussion Stakeholder Business Final Questions Adjourn Go over the meeting agenda. 4

Economic Planning Studies None were requested for 2013

Agenda Introduction Economic Planning Studies Acadiana Load Pocket Update 2013 Transmission Construction Plan Model Review 2013 SPP Model ACCC Results MISO Discussion Stakeholder Business Final Questions Adjourn Go over the meeting agenda. 6

Acadiana Load Pocket This slide shows the location of the Acadiana Load Pocket as defined by the concerned members. Roughly Extends south of I-10 limited by the Atchafalaya Basin to the east, Greenwood substation to the south (near Houma), And Richard, Jennings, Meaux substations to the west. 7

Acadiana Load Pocket Project Year 2013 Progress Report Cleco Upgrades New 230 kV transmission line from Wells to Labbe (Complete) Add a Second 500/230 kV Transformer at Wells (Complete) Reconductor Segura – Hopkins 138KV transmission line (Complete) Entergy Upgrades New 230 kV transmission line from Sellers Rd to Labbe (Complete) Lafayette Upgrades New 230 kV transmission line from Labbe to Bonin (Complete) 2nd 230/138 kV Autotransformer at Bonin (Complete) Segura’s completion date hinges on the delivery of the 230/138KV autotransformer. Although the line is expected to be finished on time, the auto’s delivery and installation may delay its full commissioning.

Acadia PB2 Purchase Affected System Upgrades Cleco Upgrades New 230/138 kV Autotransformer at Rork (Complete) Reconductor Acadia to Richard Ckt 2 (Complete) Redirect Line 1 to connect to the Rork 230/138 kV autotransformer (Complete) Entergy Upgrades Reconductor Acadia to Richard Ckt 3 and 4 (Complete) Reconductor Hopkins to Moril 138 kV line (Complete) Tap the existing Scanlin to Scott 138 kV line and add a new substation Bosco with a 5 ohm Reactor at Bosco (Complete) Build a new 138 kV line from Bosco to Bloomfield (Tapped between East Opelousas and Vatican)(Complete) Change Normally Open breakers at Richard and Scott(Complete) Segura’s completion date hinges on the delivery of the 230/138KV autotransformer. Although the line is expected to be finished on time, the auto’s delivery and installation may delay its full commissioning.

ALP Project & Affected System Upgrades Complete

Acadiana Load Pocket Update Questions ?

Agenda Introduction Economic Planning Studies Acadiana Load Pocket Update 2013 Transmission Construction Plan Model Review 2013 SPP Model ACCC Results MISO Discussion Stakeholder Business Final Questions Adjourn Go over the meeting agenda. 12

Cleco 2013 Transmission Construction Plan

2013 Transmission Construction Plan

Cleco 2013 Transmission Construction Plan Budgeted Projects 2nd Cocodrie Autotransformer Cooper Capacitor Banks Strung Bus replacement at Plaisance Many Capacitor Banks 2013 2014 2nd Pineville Autotransformer

2013 Transmission Construction Plan 2nd Cocodrie 230/138 kV Autotransformer

2013 Transmission Construction Plan Project: Second 230/138KV Autotransformer at Cocodrie Substation In-service Date: April 2013 Transmission Project Justification: This project relieves the potential overload on the existing Cocodrie Autotransformer FTLO Cocodrie to Ville Platte 230 kV line. This project also eliminates the contingency of the existing Auto-transformer causing overloads on Coughlin to Shady Oaks 138 kV line.

2013 Transmission Construction Plan Cooper Capacitor Banks

2013 Transmission Construction Plan Project: Cooper capacitor 2- 36 MVAR bank addition In-service Date: March 2013 Transmission Project Justification: This project was approved to allow for maintenance on the Cooper to Leesville and Cooper to Derrider double circuit 138 kV lines and improve the voltage in the Leesville/ Derrider areas. Operationally there is no way to get an outage on these lines with out risking low voltage for the loss of the Cooper to Penton 230 kV line.

2013 Transmission Construction Plan Many Capacitor Bank

2013 Transmission Construction Plan Project: Many capacitor 23.4 MVAR bank addition In-service Date: June 2013 Transmission Project Justification: This project was approved to mitigate potential low voltages seen in the powerflow models during summer peak conditions at Many 138 kV Substation for the loss of the Many to Fisher 138 kV line.

2013 Transmission Construction Plan Coughlin to Plaisance 138 kV line Rating upgrade

2013 Transmission Construction Plan Project: Transmission element replacements on Plaisance – Coughlin 138KV transmission line (Replace Strung bus at Plaisance) In-service Date: March 2013 Transmission Project Justification: This project increases the Plaisance to Coughlin 138 kV line rating to prevent overloads FTLO Cocodrie to Ville Platte 230 kV line. Increase the rating to 360 MVA

2013 Transmission Construction Plan Pineville 230/138 kV Auto #2

2013 Transmission Construction Plan Project: Pineville 230/138 kV Auto #2 In-service Date: June 2014 Transmission Project Justification: This project prevents pre-contingent load shed as a result of a extended outage of either the Pineville or Twin Bridges 230/138 kV Autotransformers. Operationally with one of these transformers out of service loss of the other autotransformer would lead to low voltage in the Pineville/Alexandria areas and thermal overloads on lines in that region.

2013 Transmission Construction Plan Questions ?

Agenda Introduction Economic Planning Studies Acadiana Load Pocket Update 2013 Transmission Construction Plan Model Review 2013 SPP Model ACCC Results MISO Discussion Stakeholder Business Final Questions Adjourn Go over the meeting agenda. 27

Model Review Remove zero Impedance ties Valley Load Change Demco Transaction Removed the Wells Reactor Messick 500 kV Tap

Model Review Removed Zero Impedance Ties Valley Load Change SPP wants to remove the zero impedance ties from the Powerflow models. Changed the way we model load connected to external systems which traditionally modeled with a Cleco load on a Cleco bus. Now the load ID is Cleco however it is connected to an external bus Valley Load Change Changed the Valley load to be AEP load instead of Cleco load. Set up a transaction in the powerflow models for the remainder of the time Cleco is serving the load.

Model Review Demco Transaction Removed Wells Reactor Set up a transaction from Cleco to Lagn to serve the Demco load starting in 2014. Removed Wells Reactor With the completion of the ALP project and the addition of the second Wells 500/230 kV Autotransformer the Wells reactor was no longer needed to restrict flow into the ALP. Cleco went through the approval processes within SPP to remove the Wells SPS and removed the reactor from the models. Reactors remain at wells however are not connected.

Model Review Messick 500 kV Tap The final SPP models have the Mount Olive to Hartsburg 500 kV line tapped near Messick substation in the 2019 and 2024 models. However the models do not include a 500/230 kV Auto. This project is currently being jointly studied by AEP, Cleco, Entergy, SPP and MISO? No firm commitment to build has been established at this point.

Model Review

Model Review Questions ?

Agenda Introduction Economic Planning Studies Acadiana Load Pocket Update 2013 Transmission Construction Plan Model Review 2013 SPP Model ACCC Results MISO Discussion Stakeholder Business Final Questions Adjourn Go over the meeting agenda. 34

2013 SPP Model ACCC Results SPP 2013 Models 2013 (Spring, Summer Shoulder, Summer, Fall, Winter) 2014(Spring, Low load, Summer Shoulder, Summer, Fall, Winter) 2015 (Spring, Summer, Winter) 2019 (Low load, Summer, Winter) 2024 (Summer, Winter)

2013 SPP Model ACCC Results International Paper to Mansfield 138kV transmission line thermal overload Powerflow models: 2013, 2014 and 2015 Summer and 2014 Winter peak models Contingency: Dolet Hills to S.W.Shreveport 345 kV transmission tie line Resolution: The Dolet Hills Operating Guide addresses this outage and resulting overload. The Dolet Hills Plant would be reduced to a level such that the flow on the IP to Mansfield 138 kV transmission line is within limits.

2013 SPP Model ACCC Results International Paper to Wallace Lake 138kV transmission tie line thermal overload Powerflow models: 2013, 2014 and 2015 Summer peak models Contingency: Dolet Hills to S.W.Shreveport 345 kV transmission tie line Resolution: The Dolet Hills Operating Guide addresses this outage and resulting overload. The Dolet Hills Plant would be reduced to a level such that the flow on the IP to Mansfield 138 kV transmission line is within limits.

2013 SPP Model ACCC Results IP Mansfield to Wallace Lake 138 kV line 110% Mansfield to IP Mansfield 138 kV line 105% Contingent Element: Dolet Hills to S.W. Shreveport 345 kV line Mitigation: Implement the Dolet Hills operating guide

2013 SPP Model ACCC Results Champagne to Plaisance 138 kV transmission line thermal overload Powerflow models: 2014 (Fall, Spring, Summer, Summer Shoulder, Winter), 2015 Winter, 2019 Winter, 2024 (Summer and Winter) models Contingency: Cocodrie to Ville Platte 230 kV transmission line Resolution: The terminal equipment at Champagne was upgraded to 287 MVA which eliminates this overload condition.

2013 SPP Model ACCC Results Champagne to Plaisance 138 kV line 121% (231 MVA) Contingent Element: Cocodrie to Ville Platte 230 kV line Mitigation: Line rating already upgraded to 287 MVA

2013 SPP Model ACCC Results Questions ?

Agenda Introduction Economic Planning Studies Acadiana Load Pocket Project Update 2013 Transmission Construction Plan Model Review 2013 SPP Model ACCC Results MISO Discussion Stakeholder Business Final Questions Adjourn Go over the meeting agenda. 42

MISO Discussion June 1st MISO becomes Cleco’s RC. Cleco begins participating in MTEP 14 June 1st Cleco has filed with FERC for Order 1000 Regional requirements under MISO tariff.  Ferc has approved this filing.              

MISO Discussion Cleco plans to file with FERC to meet Order 1000 Inter-regional planning under MISO. Cleco will administer its tariff until Dec 19, 2012  including:               -  Transmission Service Request               - Generator Interconnection Queue (Small & Large)

MISO Discussion Questions ?

Agenda Introduction Economic Planning Studies Acadiana Load Pocket Project Update 2012 Transmission Construction Plan Model Review 2012 SPP Model ACCC Results MISO Discussion Stakeholder Business Final Questions Adjourn Go over the meeting agenda. 46

Stakeholder Business Chance for Stakeholders to bring issues up for discussion

Agenda Introduction Economic Planning Studies Acadiana Load Pocket Project Update 2013 Transmission Construction Plan Model Review 2013 SPP Model ACCC Results MISO Discussion Stakeholder Business Final Questions Adjourn Go over the meeting agenda. 48

Final Questions?

2013 Cleco Transmission Planning Summit Oasis http://www.oatioasis.com/clec/index.html Trueshare http://www.trueshare.com/ Contact info: Cindy Guillot Director of Transmission Policy & Contracts 318 838 3166 cindy.guillot@cleco.com