1 Update on the 2006 Transmission Study LPSC B&E Meeting Baton Rouge, LA November 29, 2006

2 Current Status of the Amite South Area At the time of the Phase II Study, peak load in the Amite South area was 6,200 MW, and the Amite South import limit was 2,100 MW – resulting in a difference of 4,100 MW between load and import capability. Since Hurricane Katrina, peak load in the Amite South area has dropped to 5,670 MW. Meanwhile, the Amite South import limit has been increased to 2,600 MW – resulting in a difference of 3,070 MW between load and import capability. Reliance upon generation within Amite South on peak has dropped by more than 1,000 MW since the Phase II Study. One purpose of the 2006 Transmission Study is to determine whether and when additional projects should be implemented to improve the Amite South import limit at a projected cost of $32 million for Phase II and $16 million for Phase III.

3 Coly-Vignes-Sorrento 230 kV Line Constructed ASI Phase 1 Conway-Panama 230 kV Line Constructed Expected ASI Capability of 2,950 MW upon completion of ASI Phases 2 & 3 Load Loss Due to Hurricane Katrina Load Loss Due to Georgia Gulf Cogen Load Loss Due to Occidental Cogen * : Deduced * : Actual * : Projected 1,800 MW 2,100 MW 2,600 MW Amite South Load and Import Data 5,800 MW 6,170 MW 5,670 MW

4 Events/Factors Affecting Amite South Import Capability EventEffect on ASI Capability 1997 – Construction of the Coly-Vignes-Sorrento 230 kV line and the installation of approximately 300 MW of cogeneration by Georgia Gulf; together with load growth and other generation additions at the Exxon facility in Baton Rouge Cost - $9.1 Million Increased ASI capability to 2,100 MW 2001 – Upgraded Willow Glen-Gonzales 138 kV line Cost - $4.5 Million Dispensed with need for an operating guide and maintained ASI capability 2001 – Installed 230/115 kV 200 MVA autotransformer at Sorrento Cost - $4.5 Million Improved reliability to 138/115 kV transmission corridor and maintained ASI capability at 2,100 MW 2005 – Constructed Conway-Panama 230 kV line, and installed dynamic line rating equipment on Panama-Romeville 230 kV line Cost - $19.8 Million Increased ASI capability to 2,600 MW Future – Plans to construct Phases 2 & 3 of the ASI Improvement Plan: Phase 2 – new Panama-Dutch Bayou 230 kV line; Phase 3 – upgrades of Coly-Vignes-Sorrento & Conway-Bagatelle 230 kV lines. Need for and timing of improvements to be determined by the ongoing 2006 Transmission Study. Projected cost - $48 Million Phase 2 expected to increase the ASI capability to 2,835 MW; Phase 3 expectation is to 2,950 MW

5 MISSISSIPPI EVERGREEN DONALDSONVILLE WELCOME BAYOU VERRET ST. JAMES VACHERIE FRISCO CONVENT SUNSHINE ROMEVILLE BAGATELLE CONWAY GONZALES FRENCH SETTLEMENT SORRENTO RIVER DUTCH BAYOU VIGNES PLAQUEMINE WEBRE LUTCHER LITTLE GYPSY COLY WILLOW GLEN BELLE POINT PANAMA LEGEND 230 kV Line 115 kV Line 500 kV Line New or Upgraded Line Amite South Import Improvement Plan Phase 1: Build 230 kV Line (Conway-Panama) Completed in 2005 Phase 2: Build 230 kV line (Panama-Dutch Bayou) Phase 3: Upgrade 230 kV Lines (Coly-Vignes- Sorrento & Conway- Bagatelle) WATERFORD

6 OASIS Postings Beginning on June 9, 2006, the transmission organization commenced posting on OASIS the data and information that is needed by the System Planning Organization for the PROMOD analyses to be conducted as part of the 2006 Transmission Study. This transmission information is being used to develop a PROMOD base case for the study, and to develop the necessary “change cases.” Various study scenarios will be evaluated: –Four potential projects have been identified relating to the Amite South and DSG areas. These projects will be evaluated first. –Five potential projects also have been identified relating to the Western Region in Texas. Two additional study scenarios have been identified recently by SPP. The projects proposed by SPP also will be posted and evaluated as part of the 2006 transmission Study. Entergy’s main OASIS site: