1. Discussion of CDEAC Jim Wilcox June 9, 2006 R

2. Average Electric Revenue by State (Cents / kWH) – 2005 (All Sectors) NH 12.6 VT 11.1 MA 12.2 CT 12.0 RI 11.9 NJ 11.1 DE 7.6 DC 9.0 MD 7.8 HI 18.3 11.6 6.6 5.9 7.1 7.4 6.7 6.6 6.7 6.1 5.8 5.9 7.5 7.3 6.8 6.6 5.2 6.5 4.9 7.6 6.3 8.1 6.9 9.1 7.6 5.1 6.8 8.9 7.6 6.0 5.1 6.3 5.7 7.8 11.3 7.5 7.0 8.3 13.2 8.8 Price variation is still a force for change. Source - http://www.eia.doe.gov/cneaf/electricity/page/sales_revenue.xls 9.5 U.S. Average in 2005 = 8.1 Cents / kWh

3. U.S. Customer Usage vs Utility Sales to other Utilities MWH The transmission system is being used more today Policy Source: DOE / EIA website - http://www.eia.doe.gov/cneaf/electricity/epa/epa.pdf#page=44

4. Transmission Investment Declined Source: EEI

5. Energy Policy Act – 2005 4 important provisions Electric Reliability Organization - S. 1211 “Backstop” Siting Authority - S. 1221 Incentives for Transmission - S. 1241 Repeal of PUHCA - S. 1263

6. CAPX Pierre Las Vegas Northern Lights Frontier Trans West Express AEP Interstate Major Transmission Projects Announced in last 6 months

7. CDEAC Goals set by two Governors 30,000 MW of renewables 20% energy conservation CDEAC Accomplishments And Shortfall http://www.westgov.org/wga/initiatives/cdeac/index.htm

8. CDEAC Transmission Task Force 18 Recommendations Efficient Use of the Existing System Transmission Planning Cost Allocation and Cost Recovery Siting and Permitting http://www.westgov.org/wga/initiatives/cdeac/TransmissionReport-final.pdf