1. Vermont Power Supply September 30, 2005 Dave Lamont Vermont Department of Public Service

2. 2 US Electricity Source Mix 1999 and 2003 19992003 Source: DOE EIA

3. 3 Regional Electric Mix 1990, 1999, and 2003 199920031990 Source Data: DOE EIA

4. 4 Vermont Electricity Mix 2003 Instate Source MixCommitted Resource Source Mix Source: DOE EIASource: DPS However some utilities have very different profiles

5. 5

6. 6 Vermont Monthly Avg Wholesale Price (March-03 to Aug-05) $302 $55 Source: ISO-NE

7. 7 Electricity Cost/Price Projections Source: DPS

8. 8 Vermont - Power Prices for Committed Resources $53.2 2 $ 52.47 $ 51.74 $ 51.26 $ 50.58 $ 47.96 $ 45.34 $ 42.73 $ 40.11 $ 45.47 2013201220112010200920082007200620052004 Vermont Yankee $42.00/MWhAll Hours Hydro Quebec $68.00/MWh75% Cap Factor Owned Hydro$30.00/MWhSome Dispatch IPP$120.00/MWhRun of River + Wood $50.1 9 $52.0 6 $56.8 1 $57.9 4 $55.1 3 Forward Power Prices (DPS 2003) Recent

9. 9 Future Contract Prices in New England  Average Contract Price for Energy January and February are approximately $150/MWh $160/MWh  Some moderation, but futures prices remain at elevated levels for several years

10. 10 Electricity sales- slow growth

11. 11 Slow growth in annual peak, summer peak rising faster 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 0 100 200 300 400 500 600 700 800 900 1,000 1,100 Thousands KW 1.00 1.10 1.20 1.30 1.40 1.50 1.60 1.70 1.80 Power Year PeakSummer Peak Power Year Peak - 1,037,020 - December 2004 SummerPeak - 986,060 - August 2002 VERMONT STATE PEAK LOAD - POWER PERIOD PERIOD NOVEMBER 1, TO OCTOBER 31

12. 12 So…. Why Do We Need Transmission???

13. 13 Locational Marginal Price (“LMP”)

14. 14 GO SOX !!!!!!!