1 Entergy Transmission Planning Summit New Orleans, LA July 10, 2003 Generation and Transmission Development in the Southeastern United States

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3 SERC Generation Development Survey Fifth annual survey Survey request sent in late January Information requested from Transmission Providers All results received by early March Leading the Industry!!!

4 Collects 10 years of planned generation development Categorizes facilities by interconnection status –Interconnection service requested –Interconnection agreement signed Sub-categories indicate the amount of generation designated as a network resource Reports aggregate, not plant specific, generation plant capabilities Final results reported on Regional and subregional basis SERC Generation Development Survey

5 Current Status of Generation Plant Development * In-Service Year of Added Generation (MW) ) Interconnection Service Requested, Only > Designated as Network Resource or has obtained Firm PTP Transmission service ) Interconnection Agreement Signed/Filed > Designated as Network Resource or has obtained Firm PTP Transmission service SERC Generation Development Survey

Survey Projected Interconnected Generating Plant Capability in Commercial Operation Prior to June 1, 2002: (Summer Net Plant Capability in MW) 202,388 MW Total Actual Interconnected Generating Plant Capability in Commercial Operation Prior to December 31, 2002: (Summer Net Plant Capability in MW) 200,744 MW Total Merchant Generating Plant Capability in Commercial Operation Prior to December 31, 2002 : (Summer Net Plant Capability in MW) 26,399 MW SERC Generation Development Survey

7 Projected Capacity Additions - Cumulative, by Category -

8 Projected Capacity Additions - Annual, by Subregion -

9 Projected Capacity Additions - Annual, by Category -

10 Projected Capacity Additions - Cumulative Additions, Only Year Megawatts 2001 Total2002 Total2003 Total

11 Total Projected Generating Plant Capability Additions by July 1, 2010: (Summer Net Plant Capability in MW) 205,837 MW Total Projected Generating Plant Capability Additions by July 1, 2010: (Summer Net Plant Capability in MW) 243,669 MW 2002 Survey Results 2001 Survey Results Total Projected Generating Plant Capability Additions by July 1, 2010: (Summer Net Plant Capability in MW) 72,897 MW 2003 Survey Results Survey Result Comparisons - Cumulative Additions, Only -

12 Projected Total Capacity - Existing Capacity plus Cumulative Additions Year Megawatts 2001 Total2002 Total2003 Total

13 Survey Result Comparisons - Existing Capacity plus Cumulative Additions - Total Projected Generating Plant Capability in July 1, 2010: (Summer Net Plant Capability in MW) 373,010 MW Total Projected Generating Plant Capability in July 1, 2010: (Summer Net Plant Capability in MW) 422,988 MW 2002 Survey Results 2001 Survey Results Total Projected Generating Plant Capability in July 1, 2010: (Summer Net Plant Capability in MW) 274,011 MW 2003 Survey Results

14 Load Trend vs. Projected Total Capacity

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16 Total projected generation capacity for Summer ’03 (222,960 MW) exceeds projected Summer ’03 load (157,941 MW) by 65,000 MW Total connected generation capacity at the end of last year exceeds projections for SERC Regional load in 2012 –Projected capacity additions indicate sufficient generating resources over the long-term planning horizon SERC Generation Development Survey

17 SERC Generation Development survey accurately projects actual generation development for the following year Survey reflects recent decline in proposed generation capacity additions –Survey projects generation capacity additions of 73,000 MW over the next 10 years –Projected capacity additions for the same period have declined by 61% in the past year Network resource additions continue to be a small percentage of the projected capacity additions in the Region SERC Generation Development Survey

18 SERC Transmission Development Survey Second annual survey Survey request sent in late January Information requested from Transmission Providers All results received by early March Leading the Industry!!!

19 Requests total planned transmission expenditures –5 years of cost data –100 kV and above Requests aggregate data for transmission projects, only –New lines –New substations –Line rebuilds –Substation rebuilds –Line reconductoring projects Excludes distribution station costs Results available on a Regional and subregional basis SERC Transmission Development Survey

20 Transmission Development Expenditures - Projected 2002 versus Actual

21 Transmission Development Expenditures - Projected 2002 versus Projected

22 Survey Result Comparisons - Total Projected Expenditures - Total Projected Transmission Expenditures Over the Subsequent Five Years : $6.932 Billion $6.265 Billion 2003 Survey Results 2002 Survey Results Total Projected Transmission Expenditures Over the Subsequent Five Years :

23 Survey Result Comparisons - Cumulative Annual Expenditures -

24 Total Projected Transmission Expenditures Over the Subsequent Five Years : $6,265 Million $191 Million 2003 Survey Results Of the Total Projected Expenditures Over the Subsequent Five Years, Amount Attributed to Direct Interconnection of Generation : SERC Transmission Development Survey

27 Actual spending in 2002 fell short of projected spending acquired from last year’s survey –Cancellation of generation may have contributed to a portion of the decline –Shortfall was minimal, indicating real spending has been occurring on the SERC transmission systems Projected spending for next five years (beginning in 2003) is slightly below five-year projected spending from survey projected spending correlates well with 2002 actual spending SERC Transmission Development Survey