Clair Moeller Mid-Continent ISO

Infrastructure Planning WIRES Winter Meeting 2018 Clair Moeller, President February 15, 2018

Based on the Generation Interconnection Queue and our future scenario planning, we expect the fleet evolution to continue into the future 2032 Future Scenarios 3% 9% 13% Limited Fleet Change Stalled generation fleet changes. Limited renewables additions driven solely by existing RPS under limited demand growth. 24% 50% 3% 2005 4% 2017 3% 12% 13% Continued Fleet Change Continuation of the renewable addition and coal retirement trends of the past decade. 4% 8% 13% 7% 27% 42% 16% 48% 3% 3% 76% 4% 24% 12% Accelerated Fleet Change Renewables and demand side technologies added at a rate above historical trends. Fleet changes result in a 20% CO2 emission reduction1. 25% 33% 20% 3% 7% 10% Distributed & Emerging Tech New renewable additions largely distributed and storage resources co- located with largest sites. 13% 39% 27% 1. Emission reductions from current levels by year 2031

Generator Interconnection Queue MISO Active Queue by Study Area East Area (ATC) Size: 3.8 GW Requests: 30 East Area (ITC) Size: 9.2 GW Requests: 45 West Area Size: 23.4 GW Requests: 143 Wind Gas Solar Central Area Size: 12.4 GW Requests: 62 Total Queue : 57.1 GW 15.0 11.5 South Area Size: 8.3 GW Requests: 63 30.5

There are certain factors, or “conditions precedent,” that are required for continued transmission build-out Robust business case for plan Regional tariff that matches who benefits with who pays over time Increased regional energy policy consensus Cost recovery mechanisms that reduce financial risk

meets reliability needs, policy needs, and economic needs The continued execution of our planning process according to it’s guiding principles will ensure a grid that supports the future fleet Develop a transmission plan that meets all applicable NERC and Transmission Owner planning criteria and safeguards local and regional reliability through identification of transmission projects to meet those needs Make the benefits of an economically efficient electricity market available to customers by identifying transmission projects which provide access to electricity at the lowest total electric system cost expansion plan that meets reliability needs, policy needs, and economic needs Fundamental Goal The development of a comprehensive expansion plan that meets reliability needs, policy needs, and economic needs Analyze system scenarios and Provide an appropriate cost allocation mechanism that ensures that costs of transmission projects are allocated in a manner roughly commensurate with the projected benefits of those projects make the results available to state and federal energy policy makers and other stakeholders to provide context to inform regarding choices Coordinate planning processes with neighbors and work to eliminate barriers to reliable and efficient operations Support state and federal energy policy requirements by planning for access to a changing resource mix