New Orleans, LA July 8, 2004 John Zemanek Vice President, Transmission Entergy Transmission Planning Summit

2 Planning Summit: Background  Entergy’s objective is to provide the transmission needs for ALL of our customers.  Transmission planning is a big challenge considering the uncertainties in future system conditions  Transmission Planning summit gives us an opportunity to share our process and plan with everyone  Your inputs are very valuable and will help us make the planning process more efficient

3 Financial Statistics : Transmission $2 Billion Over $2 Billion Spent in last five years !!

4 BLACKOUT !! Need of “New Technology” for Transmission Grid

5 Application of New Technology in Entergy  D-SMES (Distributed Superconducting Magnetic Energy Storage) Quickly releases real and reactive power to restore voltage Installed in Woodlands, TX area in  High Voltage Line Reactor Allows higher loading on the system by redistributing flow on other lines Installed at Fairview substation to reduce the flow on Gypsy-Madisonville line by approximately 20%  High Voltage Series Capacitors Allows greater flow on key transmission facilities by reducing line impedance Installed on China-Jacinto 230 kV line Will be installed in China-Porter 230 kV line in 2005  Static VAR Compensators (SVC) Provides dynamic VAR support to generator deficient areas Two 300 MVAR SVCs will be installed in New Orleans area and Western Region in 2005

6 Application of New Technology in Entergy (Contd.)  Wide Area Monitoring System (WAMS) Monitor the fast dynamic transient in power system associated with system frequency change and generation angle swing Strategically located at four different corners of the system so that all major events in the system can be captured by these monitors  Hypersim (Digital TNA) Real time digital simulator running on a extremely fast computer network Enables in-depth analysis of three phase electromagnetic transients Installed in May 2004  Under Voltage Load-shed Scheme (UVLS) Draw comparison to UFLS from 1965 NE Blackout Avoids cascading effects by isolating the problem area from rest of the system Three schemes installed in Entergy system (Western Region, New Orleans and Mississippi)  Dynamic Line Rating Devices (DLR) Allows transmission operator to determine real-time facility rating depending upon ambient conditions Installed on Conway-Bagatelle 230 kV line in Southeast Louisiana  System Operations Center (SOC) Automation Ability to handle increase in transmission schedules on transmission system. 3,500 schedules in 1996 (Pre 888 Order); 145,000 schedules in 2003

7 Some Quotes after the Northeast blackout.. “A THIRD-WORLD GRID" " We're a superpower with a third-world grid. We need a new grid," New Mexico Gov. and former Energy Secretary Bill Richardson Transmission grid has been called “the biggest machine in the world”. When it works, this hugely complex contraption is highly economic. But when this monster machine malfunctions, the consequences can be spectacular. The power grid, as I think everybody knows, is a complex machine that likely failed in complex ways," said Department of Energy Secretary Spencer Abraham, co-chairman of the task force.