1 Entergy Texas, Inc. Proposed Transmission Reliability Projects Entergy Transmission Planning Summit New Orleans, LA July 29, 2008

ETI Completed Transmission Projects Calvert 69kV Substation Loss of 69kV Line 159 (Bryan – APL Hearne) caused undervoltages at Calvert 69kV Substation. Expanded existing capacitor bank to 12 MVAr (Completed - January 2008) Actual Cost: $58 K

ETI Completed Transmission Projects EGSI-TX Breaker Upgrades Based on asymmetrical fault current analysis, various circuit breakers were identified as underrated. Replaced the identified underrated circuit breakers with appropriately sized breakers. oCow 69kV #5515, #5510 (Completed - January 2008) oOrange 69kV #3165, 3145 (Completed - July 2008) Actual Cost: $750 K

ETI Proposed Transmission Reliability Projects 69kV Blue Water Add Cap Bank Blue Water Replace Fawil 138/69 kV Autotransformer Fawil EGSI-TX Underrated Breaker Replacement Helbig Orange S. Beaumont, Dupont & Pt. Neches Newton Bulk Re-tap Newton Bulk CT College Station Tamina Porter-Tamina: Replace Breaker/Switches College Station Tap: Close N.O. Switch 69kV Beaumont Upgrades Yankee Doodle, 69kV Line 876 & Line 98

5 Fawil: Replace 138/69 kV Autotransformer Scenario: Contingency events along 69 kV Line 81 (Fawil-Deweyville-Echo) cause loads on Line 81 to be served radially through the Fawil 138/69 kV autotransformer, resulting in overloads on the transformer during peak load conditions. The transformer is currently rated at 20 MVA. Recommended Solution: Replace the autotransformer with a system spare 138/69 kV, 45 MVA unit, located at Meaux substation in Louisiana. Perform necessary reconfiguration/relay work to ensure reliable operation Proposed In-Service Date: December 2008 Estimated Cost: $1 MM

6 Fawil: Replace 138/69 kV Autotransformer

7 Newton Bulk: Re-tap CT Scenario: The single contingency outage of the Cypress-Hartburg 500 kV line causes an overload of the Newton Bulk-Holly Springs 138 kV line. The rating of this line is limited to 143 MVA by a CT ratio at Newton Bulk. Recommended Solution: Re-tap the CT at Newton Bulk to achieve a rating of 280 MVA on the line Proposed In-Service Date: December 2008 Estimated Cost: $100 K

8 Newton Bulk: Re-tap CT

9 EGSI-TX Breaker Upgrades Scenario: Based on asymmetrical fault current analysis, various circuit breakers have been identified as underrated. Recommended Solution: Replace the identified underrated circuit breakers with appropriately sized breakers. –2008 oOrange 69kV #3365 oSouth Beaumont 69kV #3700 oPort Neches 138kV #3345 –2009 oDupont Bulk 69kV #3255, #3260 oHelbig 69kV #5585 oOrange 69kV #3370 oEstimated cost: $1.8 MM

10 Blue Water: Install Capacitor Bank Scenario: Multiple contingencies cause undervoltages on 69kV Line 175 “Beach Line.” Recommended Solution: Install 11MVAr capacitor bank at Blue Water 69kV Proposed In-Service Date: March 2009 Estimated Cost: $800 K

11 Blue Water: Install Capacitor Bank INSTALL 11MVAR CAP BANK

12 College Station Tap: Close N.O. Switch Scenario: The single contingency outage of the Grimes-Navasota 138kV line causes overloads along the Lewis Creek-Longmire 138kV line, as well as undervoltages along the Navasota-Longmire 138kV line. Recommended Solution: Close the normally-open switch between Speedway 138kV and the College Station 138kV tap to bring another path from Grimes into Navasota Proposed In-Service Date: May 2009 Estimated Cost: $3 MM

13 College Station Tap: Close N.O. Switch COLLEGE STATION TAP N.O.

14 69 kV Beaumont Network Upgrades Scenario: In the 69kV Beaumont area there exists several single contingency thermal overloads including: o69kV Line 581 (Helbig – Rosedale) o69kV Line 468 (Elizabeth – Gallier) o230/69kV Helbig Autotransformers o69kV Bus Tie Breakers (Helbig & Amelia) Recommended Solution: Add line breakers at Yankee Doodle 69kV Substation. Close normally open points at Lincoln and Crockett 69kV Substations. Rebuild 69kV Line 576 (Lincoln – South Beaumont) & 69kV Line 98/190 (Dupont Beaumont – South Beaumont) to 106MVA capacity. oApproximately 5.5 miles of 69kV transmission lines oProposed In-Service Date: August 2009 Estimated Cost: $8 MM

15 69 kV Beaumont Network Upgrades CARDINAL LAMAR SOUTH BEAUMONT BULK VIRGINIA LINCOLN YANKEE DOODLE CROCKETT DUPONT BEAUMONT NITRO CDT L-458 L-155 UPGRADE LINE 576 UPGRADE LINE 190 UPGRADE LINE 98 CLOSE N.O. SWITCH CLOSE N.O. BREAKER ADD LINE BREAKERS

16 Porter-Tamina: Replace Breaker/Switches Scenario: 138 kV Line 823/886 (Porter – Tamina - Cedar Hill) is one of the primary sources into the Montgomery County load pocket. The single contingency loss of 138 kV Line 582 (Oak Ridge - Porter) causes thermal overloads on 138 kV Line 823 (Porter to Tamina). Recommended Solution: Upgrade station equipment at Tamina, including a breaker and several switches, to bring rating of Line 823 Porter-Tamina up to 478 MVA capacity. Proposed In-Service Date: 2009 Estimated Cost: $2 MM

17 Porter-Tamina: Replace Breaker/Switches UPGRADE TO 478 MVA CAPACITY BY REPLACING TAMINA EQUIPMENT

ETI Proposed Transmission Reliability Projects Tamina Tamina – Cedar Hill 138kV Reconductor Cedar Hill Inland Orange Hartburg Hartburg – Inland Orange 230kV Line Upgrade Western Region Reliability Improvement Plan - Phase 3 Interim Jacinto Lewis Creek Alden South Beaumont Fontenot’s Corner

19 Tamina – Cedar Hill 138kV Reconductor Scenario: 138 kV Line 823/886 (Porter – Tamina - Cedar Hill) is one of the primary sources into the Montgomery County load pocket. The single contingency loss of 138 kV Line 582 (Oak Ridge - Porter) causes thermal overloads on 138 kV Line 886 (Tamina - Cedar Hill). Recommended Solution: Re-conductor approximately 6 miles of 138kV Line 886 (Tamina – Cedar Hill) to 478 MVA capacity. Proposed In-Service Date: 2011 Estimated Cost: $8.5 MM

20 Tamina – Cedar Hill 138kV Reconductor UPGRADE TO 531MVA CAPACITY

21 Hartburg-Inland Orange 230 kV Line Upgrade Scenario: 230 kV Line 195 (Hartburg – Inland Orange) is one of the primary sources into the Beaumont/Port Arthur area. The single contingency loss of 500 kV Line 547 (Cypress – Hartburg) causes thermal overloads on Line 195. Recommended Solution: Re-conductor approximately 4 miles of 230kV Line 195 (Hartburg – Inland Orange) to 1042 MVA capacity. Projected In-Service Date: 2010 Estimated Cost: $4 MM

kV Line 195 (Hartburg-Inland Orange) Upgrade

23 Western Region Reliability Improvement Plan Phase 3 Interim Scenario: Load growth within the Western Region load pocket is such that transmission improvements are necessary to reliably serve the area under an N-1, G-1 contingency criteria Recommended Solution: Convert 138 kV Lines 524/824 (Jacinto-Lewis Creek) to 230 kV operation [~30 miles] Convert Peach Creek Substation (ETEC-owned) from 138 kV to 230 kV Operation Relocate Caney Creek load delivery point (ETEC-owned) to new location on 138 kV Line 587 (Lewis Creek – Conroe) Install 230 kV Substation at Lewis Creek including 230/138 kV autotransformer Reconductor Line 88/66 from Fontenot’s Corner to South Beaumont 138 kV station [~9 miles] Install 200 MVAr SVC at Alden 138 kV substation in The Woodlands Estimated Cost: $98 MM

24 Western Region Reliability Improvement Plan Phase 3 Interim 200 MVAr SVC at Alden 138 kV Upgrade Line 88/66 Convert Line 524/824

ETI Proposed Transmission Reliability Projects Cypress Western Region Reliability Improvement Plan - Phase 3 Final Jacinto Jasper Sam Rayburn Dam China Amelia Reconductor Jasper – Rayburn 138 kV Line New China – Amelia 230 kV Line

26 Western Region Reliability Improvement Plan Phase 3 Final Scenario: Load growth within the Western Region load pocket is such that transmission improvements are necessary to reliably serve the area under an N-1, G-1 contingency criteria Recommended Solution: Construct a 230 kV transmission line from Cypress to Jacinto, with series compensation Projected In-Service Date: 2012 Estimated Cost: $116 MM

27 Western Region Reliability Improvement Plan Phase 3 Final Construct New Cypress - Jacinto 230 kV Line

28 Western Region Reliability Improvement Plan Phase 3 Alternative Scenario: If the decision is made by the PUCT that ETI will move to the ERCOT retail open access (ROA) market, the WRRIP Phase 3 Final project will not be sufficient to address the load growth in the Western Region Recommended Solution: Reconductor Grimes-Huntsville 138 kV line Build new Quarry 345 kV switching station Build new Quarry-Rivtrin 345 kV line Build new Grimes-Frontier 345 kV line This solution would also require additional firm resources Projected In-Service Date: 2012 Estimated Cost: $100 MM

29 Western Region Reliability Improvement Plan Phase 3 Alternative QUARRY WRRIP Phase 3 Final will result in strengthening of and greater reliance on the transmission corridor between the Western Region and the Beaumont area. If the decision is made to move ETI to the ERCOT ROA market, Phase 3 Alternative would be implemented, which would strengthen the Western Region’s ties to the west. This solution would also require additional firm resources

30 Reconductor Jasper-Rayburn 138 kV Line Scenario: The single contingency outage of the Cypress-Hartburg 500 kV line causes an overload of the Jasper-Rayburn 138 kV line Recommended Solution: Reconductor the Jasper-Rayburn 138 kV line to achieve a rating of 265 MVA Proposed In-Service Date: 2012 Estimated Cost: $13 MM

31 Reconductor Jasper-Rayburn 138 kV Line

32 New China-Amelia 230 kV Line Scenario: The single contingency outage of the China-Amelia 230 kV line causes an overload of the China-Sabine 230 kV line Recommended Solution: Construct a new 230 kV line from China to Amelia Proposed In-Service Date: 2013 Estimated Cost: $23 MM

33 New China-Amelia 230 kV Line AMELIA

kV Line 150 (Dayton – New Long John) 230 kV Lines 515 & 516 (Sabine – Port Neches) 138 kV Line 86 (Dayton - Eastgate) Identified Target Areas 2012 and Beyond 230 kV Line 195 (Helbig – Inland Orange)

kV Line 571 (Jacinto – Porter) 138 kV Line 582 (Porter – Oak Ridge) New Caney 138 kV Substation Identified Target Areas 2012 and Beyond Cleveland 138 kV Substation 138 kV Line 886 (Conroe – Cedar Hill) 138 kV Line 96 (Navasota – Longmire)

36 Identified Target Areas 2012 and Beyond 138 kV Line 97 (Fork Creek – Rayburn)