1 Entergy Arkansas, Inc. Proposed Transmission Reliability Projects Entergy Transmission Planning Summit New Orleans, LA July 10, 2003

2 2004/2005 EAI Transmission Projects 3.) Dell 500 / 161 kV Autotransformer Addition Carryover from ) Mohawk – New 345 / 115 kV Substation (ISD 2006) 10.) New 161 kV Line Osage Creek -Grandview Line (ISD 2006) 1 1.) Reconductoring of Lynch - Jacksonville North 115 kV Line ) Couch 115 kV Switch Riser Replacement 9.) Reconductoring of Corning - Texas Eastern #8 115 kV Line (ISD 2006) 6.) Gobel - New 230 / 115 kV Substation near Marvell (2005) 5.) New 115 kV Camden Maguire - Camden North Line 7.) Reconductoring of Trumann - Harrisburg Tap 161 kV Line 10 2.) Silver Hill: New Ring Bus at Intersection of EAI and SPA lines Projects 2005 Projects

3 Lynch - Jacksonville North Area

4 Lynch - Jacksonville North 115 kV Line Reconductoring Scenario: The loss of the Jacksonville North - Sylvan Hills 115 kV line segment will cause loading in excess of 129% on the Lynch - McAlmont 115 kV line segment, and 108% on the McAlmont - Jacksonville South. Jacksonville South - Jacksonville North also overloads in future years. Line is constructed with 666 mcm conductor and limited to 800 Amps (159 MVA). Proposed Solution: This project proposed to reconductor the three line segments with 1272 ASCR conductor to achieve a 261 MVA rating (64% increase). Estimated Cost: $5,600,000

5 Marshall Area

6 Silver Hill 161 kV Ring Bus Between EAI and SPA Lines Scenario: The SPA Bull Shoals - Dardanelle transmission line crosses the APL Harrison East - Quitman line near the Marshall substation. The Summit - Harrison East line segment is constructed to a different design specification, and transmission line sag has necessitated a line derating. The loss of the Eureka Springs - Osage Creek line segment causes the Summit - Harrison East line segment to overload to 139%. Opening the line to avoid the overload causes the contingency voltage at Harrison to drop from p.u. to p.u. Proposed Solution: Joining the existing lines enhances voltage support to Harrison, especially following loss of Eureka Springs - Osage Creek. This configuration redirects power flow out of Bull Shoals, effectively unloading the Summit - Harrison East line segment. Estimated Cost: $3,350,000

7 Dell Area

8 Autotransformer Addition at Dell Substation Scenario: Dell 500/161 kV substation provides a high voltage source to the northeastern area of Arkansas. There are presently 4 single phase autos (3 in-service and 1 spare) Each transformer has a rated capacity of 224 MVA. The system was planned to accommodate the loss of a single phase, since a spare can be quickly connected. Loss of the entire autotransformer will cause depressed voltages at Dell and the surrounding area. Proposed Solution: Install a single 3 phase autotransformer. Estimated Cost: $8,000,000

9 Couch Area

10 Replace Switch Risers at Couch Scenario: Loss of the Magnolia East - McNeil transmission line segment causes an overload on the Couch - Magnolia Dow line segment. The overload is projected to exceed 128% in Line is 666 mcm conductor, but is currently rated 120 MVA, due to switch risers at Couch. Proposed Solution: Replace switch risers at Couch on the Magnolia Dow line to increase the rating on the line from Couch-Magnolia Dow. Estimated Cost: $73,000

11 Camden Area

12 Scenario: Loss of the breaker-to-breaker segment from Camden Nth to McClellan leaves a very long line single-ended from Woodward. Also, if the McClellan plant is not generating, there is insufficient voltage support for the area. The Woodward - Rison transmission line segment is projected to overloaded under these scenarios in the year Low voltages also manifest in future years along the entire line, from Woodward to Camden Maguire, even with the McClellan plant operating. Proposed Solution: Rebuild the existing Camden Nth substation to accommodate three lines. Two of the three lines will be the existing two lines at the substations (line to McClellan and to Fordyce). The third line will be a new 115kV line extending towards Camden Maguire. Estimated Cost: $6,300,000 Camden Maguire to Camden North 115kV New Line Construction

13 Marvell Area

/ 115 kV Substation Construction (Gobel) near Marvell Scenario: Loss of the Helena Industrial - Ritchie SES line segment causes low single-contingency voltage ( p.u.) in the Helena area. Loss of the Helena Industrial - Ritchie SES line segment also causes overloads. The Almyra - Ricus line segment overloads to 114% and the Almyra - Dewitt line overloads to 108%. Zero-contingency voltages along the Stuttgart - Helena line are sufficiently high, precluding installation of the capacitor bank for use during normal operation. Proposed Solution: Solution involves tying the strong 230 kV source from Ritchie to the 115 kV line segment near Marvell, reducing the exposure to single contingency voltage issues. Estimated Cost: $6,950,000

15 Jonesboro Area

16 Trumann - Harrisburg Tap 161 kV Line Rebuild Scenario: Trumann Substation to Harrisburg Tap Switching Station is a 161 kV transmission line segment in the northeastern corner of Arkansas, near the load center of Jonesboro. The line segment is approximately 10.6 miles, and is currently rated for 148 MVA. Loss of the Newport Industrial - Newport 161 kV transmission line segment causes an overload on the Trumann - Harrisburg Tap line segment. The overload is projected to exceed 110% in the year Loss of the breaker-to-breaker line (Newport-Jonesboro) results in an overload of approximately 104% on the Trumann - Harrisburg Tap. Proposed Solution: Rebuild the Trumann - Harrisburg Tap 161 kV line segment with a 666 mcm conductor, to increase the line rating to 247 MVA. Replace 600 amp line switches B0604 and B0290 (in the Truman Substation) with 1200 amp equipment. Estimated Cost: $3,900,000

17 Emerson Area

/ 115 kV Substation Construction (Mohawk) near Emerson Scenario: The following single contingencies cause low voltage in the extreme southwestern corner of the EAI service territory: –Loss of the Magnolia East - McNeil line segment, p.u. –Loss of the Magnolia Steel - Magnolia East line segment, p.u. –Loss of the Magnolia Steel - Kerlin S.S. line segment, p.u. Capacitor bank additions do not provide sufficient improvement to this region. The transmission grid performance can be improved by delivering a high voltage source into the Emerson area. Emerson resides very close to a 345 kV line from El Dorado to Longwood (SWEPCO). Proposed Solution: A new substation is proposed to be constructed as a new tie between the two utilities. Estimated Cost: $9,700,000

19 Datto - Jim Hill Area

20 Texas Station #8 – Corning 115kV Line Rebuild Scenario: Previous construction has increased the conductor size on selected spans to 1590 mcm and 666 mcm, but a majority of the line is 336 mcm or smaller (e.g., 4/0 copper), and substation equipment limits the ampacity of the line. The voltage drop from TE #8 to Corning exceeds 22% under certain single contingency scenarios. Low voltage also causes greater current to flow and will cause a 190% overload on the Corning to TE #8 line segment. Proposed Solution: Rebuild the line segment from TE #8 to Corning with 666 mcm, to increase the line rating to 176 MVA. Estimated Cost: $7,600,000

21 Osage Creek-Grandview

22 Osage Creek-Grandview Scenario: A single-contingency on the Eureka Springs - Osage Creek line segment causes thermal overloads at Harrison East - Harrison South- Harrison West. This contingency leaves over 100MW of load at Osage Creek on a long radial feed from Harrison East. Loss of this line also causes Osage’s voltage drop to p.u. Osage Creek will be rebuilt using breakers, switches and other equipment to accommodate three transmission lines. Eureka Springs and Berryville are two existing lines to Osage Creek and the third line will be new. It will be a 161 kV line extending north. Proposed Solution: There will be a new substation constructed at a new tap between Table Rock Dam-Beaver Dam on SPA’s line. Estimated Cost: $5,200,000

EAI Transmission Projects 1 Carryover New Project 1.) Mohawk - New 345 / 115 kV Substation near Emerson (2005) 3.) New 161 kV Line Osage Creek -Grandview Line (2005) 2 2.) Reconductoring of Corning - Texas Eastern #8 115 kV Line (2005) 3 5.) Reconductoring of NLR Levy - NLR Westgate 115 kV Line 5 4.) New 161 kV Line Construction from Mountain View to Silver Hill 4 7.) Reconductoring of Mountain Pine South - Blakely Dam 115 kV Line 7 8.) New 115 kV Line Construction from Gum Springs - Murfreesboro South 8 9.) Reconductoring of Morrilton East - Conway West 161 kV Line 9 10.) Reconductoring of Mabelvale - LR South 115 kV Line to 230 kV 10 6.) Reconductoring of LR Pinnacle – Walton Heights 115kV Line 6 11.) Reconductoring of El Dorado East - El Dorado Jax 115 kV Line 11

24 Mountain View Area

25 Mountain View - Silver Hill 161 kV Line Construction Scenario: Mountain View is a served by a radial line from the Sage Switching Station. The Sage - Norfork Dam 161 kV Line segment is heavily loaded, and prone to overload when N. Arkansas hydroelectric output is deficient. Load at Mountain View continues to grow, in an area where alternate power is insufficient to meet the demand. Proposed Solution: Constructing a new line from Silver Hill (near Marshall) to Mountain View will provide a new source of power to Mountain View, and will alleviate thermal constraints on the Sage - Norfork line. Estimated Cost: $12,000,000

26 Greater Little Rock Area

27 NLR Levy - NLR Westgate 115 kV Line Rebuild Scenario: Loss of the LR Rock Creek - LR South 115 kV line segment causes overload to the NLR Levy - NLR Westgate 115 kV line segment (105%) Proposed Solution: Line will be rebuild with 1272 ACSR conductor. Estimated Cost: $1,117,000

28 Greater Little Rock Area

29 LR Pinnacle - Walton Heights 115 kV Line Rebuild Scenario: Loss of the Kanis - Markham 115 kV line segment causes overload to the LR Pinnacle - Walton Heights 115 kV segment (103%). Proposed Solution: Line will be rebuilt with a larger conductor (e.g., 1272 mcm ACSR). Estimated Cost: $2,160,000

30 Mountain Pine Area

31 Blakely Dam - Mountain Pine South 115 kV Line Rebuild Scenario: Loss of the Carpenter Dam - Hot Springs South 115 kV Line segment causes overload to the Mountain Pine - Blakely Dam segment. Line switches at the Blakely Dam prevent any greater throughput through the SPA substation. Conductor size will soon further limit power flow on this line segment (presently constructed with 666 mcm conductor) Proposed Solution: Line and switches should be upgraded to facilitate a minimum of 1200 amps (e.g., 1272 ACSR) Estimated Cost: $1,500,000

32 Curtis Area

33 New Switching Station (Gum Springs) and New 115 kV Line Construction Scenario: The Woodward - Degray 115 kV transmission line crosses the Friendship - Couch 115 kV transmission line near Curtis, between Arkadelphia and Richwoods Connecting the two lines at their intersection would provide additional operational flexibility in the region south of HS and LR The new switching station would reduce to the exposure to single contingency voltage problems for several substations along both existing transmission lines Proposed Solution: A new line constructed from Gum Springs to Murfreesboro South will provide another source of power to the Murfreesboro South region, where it is difficult to maintain sufficient voltage levels under single contingency scenarios Estimated Cost: $8,400,000

34 Conway Area

35 Morrilton East - Conway West 161 kV Line Rebuild Scenario: Loss of the Lake Conway - Mayflower 115 kV line segment causes overload to the Morrilton East - Gleason 161 kV line segment (111%) and the Gleason - Conway West 116 kV line segment (104%) Loss of the Conway West - Lake Conway line segment and the Conway West 161 / 115 kV line segment cause smaller overloads Proposed Solution: Rebuild the Morrilton East - Conway West 161 kV line segment Estimated Cost: $6,120,000

36 Greater Little Rock Area

37 Mabelvale - Mann Road - Chico - LR Ind. - LR South 115 kV Line Rebuild Scenario: Loss of the Mabelvale - Alexander 115 kV line segment causes overload to the Mabelvale - Mann Road segment (109%) and the Mann Road - Chico segment (106%). Moving load from the existing 115 kV network in Little Rock to a future 230 kV loop will help facilitate greater power flow into and out of south Little Rock. Proposed Solution: Line will be rebuilt, using conductor and insulators sufficient for future conversion to 230 kV. Estimated Cost: $4,000,000

38 Greater Little Rock Area

39 Mabelvale - Alexander - Hindman - LR South 115 kV Line Rebuild Scenario: Loss of the Mabelvale - Mann Road 115 kV line segment causes overload to the Mabelvale - Alexander segment (108%). Loss of the Mann Road - Chico 115 kV line segment also causes overload to the Mabelvale - Alexander segment (107%). Moving load from the existing 115 kV network in Little Rock to a future 230 kV loop will help facilitate greater power flow into and out of south Little Rock. Proposed Solution: Line will be rebuilt, using conductor and insulators sufficient for future conversion to 230 kV. Estimated Cost: $4,500,000

40 El Dorado Area

41 El Dorado East - El Dorado Jax 115 kV Line Rebuild Scenario: Loss of the El Dorado EHV - Texas Eastern El Dorado 115 kV line segment causes overload to the El Dorado East - El Dorado Jax segment (106%) Loss of the El Dorado Donan - Texas Eastern El Dorado 115 kV line segment also causes overload to the El Dorado East - El Dorado Jax segment (103%) Proposed Solution: Line will be rebuilt with 1272 ACSR conductor. Estimated Cost: $1,000,000

– 2013 Transmission Project Target Areas 2.) Little Rock Area 1.) Conway Area 1 Carryover New Project ) Parkin - Gilmore Area 4 4.) Forrest City - Moses Area 5 5.) Sheridan South Interface

43 Questions ????