Great River Energy 2013 Annual True-Up Meeting August 7, 2014

Agenda Introduction Disclosure Meeting purpose Discuss the Regulatory Timeline Review the 2013 Annual True-Up results –actual to forecast comparison –discuss drivers Discuss next steps Question / Answer

Disclosure All figures in this document are preliminary and subject to change. Per the revised Formula Rate Protocols, figures will be finalized after the Information Exchange, Challenge Procedures, and MISO’s review are complete 1. 1 Awaiting FERC’s final decision on Docket ER on FERC’s investigation into MISO Formula Rate Protocols

Meeting Purpose The revised Formula Rate Protocols require GRE to hold an Annual True-Up Meeting among Interested Parties between the Publication Date (June 1) and September 1 Compare actual 2013 values against projections on which the 2013 rates were based Review the Annual True-Up Adjustment calculation

June 1 Deadline for Annual True-Up Info Exchange Period and Review Period begin June 1 – September 1 Deadline For Annual True-Up Meeting September 1 – October 1 Deadline to Post Projected Net Revenue Requirement September 1 – October 1 Deadline for meeting on Projected Net Revenue Requirement November 1 Deadline for joint meeting on regional cost-shared projects December 1 Deadline for Interested Parties to submit information requests January 10 Deadline for Transmission Owner to respond to information requests January 31 Deadline for Interested Parties to submit Informal Challenges February 28 Deadline for transmission owner to respond to Informal Challenges March 15 Deadline to submit Informational Filing to the Commission March 31 Deadline for Interested Parties to file Formal Challenge at the Commission Formula Rate Protocol Timeline

2013 True-Up Adjustment Overview Actual ProjectedDifference Net Revenue Requirement$99,203,840 $96,975,134$2,228,705(a) Divisor True-Up Divisor2,012,4152,023,75111,336 Projected Rate ($/kW/Yr)$ True-Up (Divisor Difference x Projected Rate)$543,204(b) Interest$79,442(c) Total 2013 True-Up Adjustment (Under Recovery)$2,851,352(a+b+c)

2013 ATTR Summary Projected ATRR Actual ATRR

Revenue Requirement Overview Projected 2013 Net Revenue Requirement$96,975,134 Actual to Projected Differences: Return$963,753 O&M Expense$(963,019) Attachment GG Adjustment$(165,196) Attachment MM Adjustment$935,421 Revenue Credits$1,457,747 Actual 2013 Net Revenue Requirement$99,203,840 Overall Difference$2,228,705

Return Overview Projected 2013 Rate Base$671,736,732 Actual to Projected Differences: Net Plant$(13,839,565) Construction Work In Progress$2,306,365 Adjustments to Rate Base *$333,388 Land Held for Future Use$0 Working Capital$389,971 Actual 2013 Rate Base$660,260,116 Overall Difference$(11,476,617) *offset to Rate Base

Return Overview Actual Return % D/E RatioWeighted LTD85.05%4.77% (a) Equity14.95%1.85% (b) Return6.63% (a+b) Projected Return % D/E RatioWeighted LTD86.06%4.70% (a) Equity13.94%1.73% (b) Return6.42% (a+b) Overall Difference = %

Return Overview Rate Base Actual to Projected Difference$(11,476,617) Actual Return Rate6.63% $(760,342) (a) Return Rate Projected Rate Base$671,736,732 Actual to Projected Difference in Return %0.2012% $1,351,390 (b) Overall Difference in Return$591,048 (a+b)

Operating Expense Overview Projected 2013 Operating Expense$78,815,432 Actual to Projected Differences: O&M (includes A&G)$(755,842) Depreciation Expense$(332,354) Taxes Other Than Income Taxes$125,177 Income Taxes$0 Actual 2013 Operating Expense$77,852,413 Overall Difference$(963,019)

Attachment GG & MM Overview Attachment GG Projected ATRR $17,872,720 Actual to Projected Differences: Annual Expense Charge$64,038 Annual Return Charge$199,605 Depreciation Expense$(98,447) Actual ATRR$18,037,916 Overall Difference$165,196 Attachment MM Projected ATRR $5,998,423 Actual to Projected Differences: Annual Expense Charge$(4,983) Annual Return Charge$(429,469) Depreciation Expense$(500,970) Actual ATRR$5,063,002 Overall Difference$(935,421)

Revenue Credits Overview Projected 2013 Revenue Credits$4,338,375 Actual to Projected Differences: Account 454 (Rent From Electric Property)$(629,236) Account 456 (Other Electric Revenues)$(828,511) Actual 2013 Revenue Credits$2,880,628 Overall Difference$(1,457,747)

Next Steps Information Exchange Procedures * –Interested Parties have until December 1, 2014 ** to submit information requests –GRE shall make a good faith effort to respond within 15 business days of receipt of such request –Any information request should be submitted in writing to: Todd Butkowski Seth Nelson –All questions and answers will be distributed by to the Interested Party who asked the question(s) and will be posted on the MISO website and OASIS * Awaiting FERC’s final decision on Docket ER on FERC’s investigation into MISO Formula Rate Protocols ** If December 1 falls on a weekend or a holiday recognized by FERC, the deadline for submitting the request will be extended to the next business day

Questions?