1. 1 Entergy Gulf States, Inc. (Texas) Approved & Proposed Transmission Reliability Projects Entergy/ETEC Subcommittee Meeting The Woodlands, TX November 28, 2006

2. 2 Recap of 2004-06 EGSI-TX Transmission Western Region Reliability Improvement Plan: Phase II Scenario: In 2003, several planning studies indicated the Western Region has the potential to encounter voltage stability problems and thermal overloading under the double contingencies listed below. oLoss of Lewis Creek Unit & 345 kV Line 119 (Crockett-Grimes) oLoss of Lewis Creek Unit & 230 kV Line 568 (China-Jacinto) oLoss of both Lewis Creek Units Recommended Solution: Phase II of the Western Region Reliability Improvement Plan addresses the projected load growth with the following projects: o500/230 kV Auto (Cypress) COMPLETED oConstruct Line 822 (China-Porter) 230 kV COMPLETED oConstruct 230/138 kV Porter Substation COMPLETED oUpgrade Line 599 (Amelia-China) 230 kV COMPLETED oInstall 300 MVAr SVC at Porter Substation COMPLETED oInstall series compensation on Line 822 (China-Porter) COMPLETED Estimated Cost: $115 MM

3. 3 2006 EGSI-TX Approved Transmission Reliability Projects Western Region Phase II INSTALLED 300 MVAr SVC INSTALLED SERIES CAPACITOR ON LINE 822

4. 4 Approved 2007 EGSI-TX Transmission Reliability Projects in Entergy’s Construction Plan Project Name In Service Year Estimated Cost ($MM)Comments Grimes: Reconfigure Substation2007$0.5Approved Kolbs & Hanks: 230 kV Bus Upgrades2007$0.2Approved Splendora Switch Clearance/Replacement (Mandatory – Safety)2007$0.08Approved EGSI-TX Underrated Breaker Upgrades (12- 69 kV breakers, Mandatory – Safety)2007 - 2008$1.3Approved Calvert: Expand cap bank to 12 MVAr2008$0.6Approved Sandy Shores: Install 11 MVAr cap bank2008$0.5Scoping Only Porter-Tamina-Conroe Upgrade 138 kV lines2008$5.5Approved Beaumont 69 kV Improvement Plan2009$8Approved Western Region Reliability Improvement Plan: Phase 32010$2 Scoping & Engineering Only

5. 5 Approved EGSI-TX Transmission Reliability Projects in Entergy’s Construction Plan Sandy Shores: Add 69 kV Cap Bank Calvert: Expand 69 kV Cap Bank Helbig Calvert Sandy Shores Grimes: Reconfigure 345/138 kV Substation Grimes South Beaumont Amelia Beaumont 69 kV System Improvement Plan Conroe Tamina Porter-Tamina-Conroe: Upgrade 138kV Lines Porter Others: WRRIP- Phase 3 Scoping & Engineering Upgrades of underrated breakers (various locations, mandatory-safety) Splendora: Replace switch (mandatory- safety) Kolbs Hanks Kolbs & Hanks: Upgrade 230 kV Bus

6. 6 Grimes 345/138 kV Substation Reconfiguration Scenario: 345/138 kV autotransformers tied to same node of 345 kV and 138 kV ring busses. Single contingency loss of either 345/138 kV autotransformer causes the loss of the parallel autotransformer. Recommended Solution: Install a 345 kV circuit breaker to separate autotransformers on 345kV ring and reconfigure station to alternate lines and loads. Install 138 kV breaker to separate autotransformers on 138 kV ring. Estimated Cost: $0.5 MM (2007 cost only)

7. 7 Grimes 345/138 kV Substation Reconfiguration AUTO #1 AUTO #2 FRONTIER CROCKETT RECONFIGURE 345 kV BUS INSTALL 138 kV BREAKER INSTALL 345 kV BREAKER 2007 345kV 138kV

8. 8 Hanks & Kolbs: Upgrade Substation Bus Scenario: Firm load within the Port Arthur area has grown such that the Hanks and Kolbs substation through bus overloads under the loss of the Sabine to Mid County 230 kV line. Recommended Solution: Upgrade limiting elements of substation bus at Hanks & Kolbs. Estimated Cost: $0.2 MM

9. 9 Hanks Kolbs Hanks & Kolbs: Upgrade Substation Bus

10. 10 EGSI-TX Circuit 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. –2006 oCow 69kV #5515, #5510 oOrange 69kV #3165, 3145 –2007 oOrange 69kV #3365 oSouth Beaumont 69kV #3700 oPort Neches 138kV #3345 oWest End 69kV #22135 –2008 oOrange 69kV #3370 oDupont Bulk 69kV #3255, #3260 oHelbig 69kV #5585

11. 11 EGSI-TX 69 kV System Voltage Support Calvert 69 kV Substation Loss of 69 kV Line 159 (Bryan – APL Hearne) causes under-voltages at Calvert 69 kV Substation. Expand existing capacitor bank to 12 MVAr Approximate Cost: $0.6 MM Sandy Shores 69kV Substation Multiple contingencies cause under-voltages on 69 kV Line 175 “Beach Line.” Install 11 MVAr capacitor bank Estimated Cost: $0.5 MM

12. 12 EGSI-TX 69 kV Voltage Support INSTALL 11MVAR CAP BANK EXPAND EXISTING CAP BANK 2007

13. 13 Porter-Tamina-Conroe: Upgrade 138 kV Lines 823 & 886 Scenario: Lines 823 & 886 are 138 kV tie lines to the Western Region and the Conroe area specifically. The loss of 138 kV Line 886 (Oak Ridge – Porter) overloads Lines 823 & 886 above their thermal limits. Recommended Solution: Upgrade Line 886 (Tamina – Conroe) to 531 MVA capacity; replace switches and breaker at Tamina Substation to increase rating on the Porter-Tamina line segment. Estimated Cost: $5.5 MM

14. 14 2007 UPGRADE TO 531MVA CAPACITY Porter-Tamina-Conroe: Upgrade 138 kV Lines 823 & 886

15. 15 69 kV Beaumont Network Upgrades Scenario: In the 69 kV Beaumont area there exists several single contingency thermal overloads including: o69 kV Line 581 (Helbig – Rosedale) o69 kV Line 468 (Elizabeth – Gallier) o230/69 kV Helbig Autotransformers o69 kV Bus Tie Breakers (Helbig & Amelia) Recommended Solution: Add line breakers at Yankee Doodle 69 kV Substation. Close normally open points at Lincoln and Crockett 69 kV Substations. Rebuild 69 kV Line 576 (Lincoln – South Beaumont) & 69 kV Line 98/190 (Dupont Beaumont – South Beaumont) to 106 MVA capacity. oApproximately 5.5 miles of 69 kV transmission lines Estimated Cost: $8 MM

16. 16 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 2007

17. 17 Western Region Reliability Improvement Plan: Phase III and IV Western Region Reliability Improvement Plan (Phases 3 & 4)* Potentially convert 138 kV Lines 524/824 (Jacinto-Lewis Creek) to 230 kV operation. Construct a 230 kV transmission line from Cypress to Jacinto. Construct a 230 kV transmission line from Porter to Lewis Creek. Install static and dynamic VAR support in the Western Region. * Note: This set of projects may be modified based on further activities and developments occurring at the Louisiana and Texas Commissions. 2010+

18. 18 Alternatives to the Western Region Reliability Improvement Plan Projects identified in Phases 3 and 4 of the WRRIP results in greater reliance on and strengthening of the transmission corridor between the Western Region and the Beaumont area. Because of recent events such as the isolation of the Western Region from the rest of the Entergy System, the Company has developed several alternatives to the projects described above. These alternatives would strengthen the Western Region’s ties to the west.

19. 19 WRRIP Alternative 1 Enhancement of the reliability at Grimes Substation in order to reduce the reliance from the Beaumont area Upgrades of 138 kV Lines 112 and 485 to sufficient capacity Installation of a 345 kV bulk tie between Grimes and Lewis Creek This option also requires additional firm local generation.

20. 20 WRRIP Alternative 2 Enhancement of the reliability of the 345 kV tie to AEP-West in order to reduce reliance from the Beaumont area. Upgrade of 138 kV Line 485 to sufficient capacity Installation of a 345 kV switchyard on Line 119 including a 345 kV tie line to Rivtrin Substation This option also requires additional firm local generation.

21. 21 Current Plan: Phases 3 & 4 ALT #2 ALT # 1 Construct/ Enhance 230 kV Network Into Lewis Creek Construct 345 kV Network Into Rivtrin Enhance 138kV and 345kV Network at Grimes and Lewis Creek

22. 22 Project Name In Service Year Estimated Cost ($MM) Comments JNEC Deweyville - Add breakers & cut-in Line2007$0.4Approved SHECO - Menard Substation Upgrades2007$0.1Approved SHECO - Turkey Creek Substation Upgrades2007$0.1Approved Approved 2007 ETEC-Related Transmission Reliability Projects in Entergy’s Construction Plan

23. 23 Longer-Term Reliability Target Areas (2011+) 230 kV Line 496 (China – Sabine) –For the loss of Line 599 (China – Amelia) 230 kV Line 194 (Hartburg-Helbig) –For the loss of the Hartburg-Cypress 500 kV line 138 kV Line 88 (Dayton – Cheek) –For the loss of Line 496 (China – Sabine) 138 kV Line 571 (Jacinto – Porter) –For the loss of Line 822 (China – Porter) 138 kV Line 150 (Dayton – Long John) –For the loss of Line 579 (Jacinto – Cleveland) 138 kV Line 561 (Gulfrich – Crown Orange) –For the loss of Line 590 (Gulfrich – Ausimont) 138 kV Line 582 (Oak Ridge – Porter) –For the loss of Line 886 (Tamina – Porter) 138 kV Line 86 (Dayton – Eastgate) –For the loss of Line 882 (China – Porter) 138 kV Line 515 (Sabine – Port Neches) –For the loss of Line 516 (Sabine – Port Neches) 138 kV Line 516 (Sabine – Port Neches) –For the loss of Line 515 (Sabine – Port Neches) 138 kV overloads in the Jasper- Newton area –For the loss of the Hartburg-Cypress 500 kV line 138 kV Lines from between Lewis Creek and Dobbin –For the loss of 138kV sources from either the Lewis Creek or Grimes end –[Could be addressed by the Longmire reconfiguration project] Potential thermal overloads under single contingency conditions: Other target areas/ projects: –Depressed voltages in the Lacon Substation area –WRRIP Phase 4