2018 Attachment O Projected Net Revenue Requirements Customer Meeting 5 2018 Attachment O Projected Net Revenue Requirements Customer Meeting October 26, 2017

2018 Projected Customer Meeting Agenda Welcome & Introductions Meeting Purpose Disclosure 2014-2018 Rate Comparison 2017-2018 AC Detailed Revenue Requirement Comparison 2017-2018 DC Detailed Revenue Requirement Comparison Questions

2018 Projected Meeting Purpose Present Attachment O, GG, and ZZ revenue requirements for 2018 Compare 2017 & 2018 Attachment O, GG and ZZ formula rate calculation cost components Comply with the Formula Rate Protocols

2018 Disclosure Minnesota Power’s 2018 projected transmission rates are subject to change pending review by MISO and other Interested Parties. Information in this presentation is based upon Minnesota Power’s 2018 Projected Attachment O, filed at MISO on October 5, 2017. The dates and schedules represent Minnesota Powers best estimates for projects to be initiated and completed. Please be aware that many factors could alter those schedules, including regulatory approvals, availability of materials or construction resources, weather, and other unforeseen events.

Minnesota Power 2018 Projected Attachment O, GG, & ZZ Formula Rate Submitted and posted on MISO’s website on October 5, 2017 MISO has completed its review of Minnesota Power’s 2016 True-Up Attachment O. The 2016 true-up amount, plus any interest will be applied to the annual 2018 Attachment O revenue requirement and rates. MISO has completed its review of 2018 Attachments O, GG, and ZZ and corresponding documentation.

Minnesota Power Projected MISO Transmission Rates 2014-2018 6

Comparison - 2017 to 2018 Revenue Requirement AC System 7

Comparison - 2017 to 2018 Revenue Requirement AC System

Comparison - 2017 to 2018 Revenue Requirement AC System 9

Comparison - 2017 to 2018 Revenue Requirement AC System 10

Comparison - 2017 to 2018 Revenue Requirement AC System 11

Comparison - 2017 to 2018 Revenue Requirement AC System 12

Comparison - 2017 to 2018 Revenue Requirement AC System 13

Comparison - 2017 to 2018 Revenue Requirement AC System 14

Comparison - 2017 to 2018 Revenue Requirement AC System 15

Comparison - 2017 to 2018 Revenue Requirement DC System 16

Comparison - 2017 to 2018 Revenue Requirement DC System

Comparison - 2017 to 2018 Revenue Requirement DC System

Comparison - 2017 to 2018 Revenue Requirement DC System 19

Comparison - 2017 to 2018 Revenue Requirement DC System

Comparison - 2017 to 2018 Revenue Requirement DC System 21

2018 Transmission Customer Meeting Questions?

2018 Transmission Customer Meeting Contacts: Jeanne Kallberg jkallberg@mnpower.com (218) 355-2648 Kara Henderson khenderson@mnpower.com (218) 355-2869