1. ERCOT PUBLIC 5/20/2014 1 2014 RTP July 22, 2014

2. ERCOT PUBLIC 5/20/2014 2 Outline  Updates to 2014 RTP  RTP Next steps

3. ERCOT PUBLIC 5/20/2014 3 2014 RTP update  N-1 SCOPF reliability analysis is complete  N-1 secure case and list of placeholder projects are posted for review  Currently working on Generator and Transformer outage (G-1+N-1 and X-1+N-1) reliability analysis

4. ERCOT PUBLIC 5/20/2014 4 Transmission equipment upgrades based on N-1 SCOPF Upgrade needs identified by kV 691383452014 RTP Previously Identified* Line Addition 16295 Line Upgrade 1121-3217 Transformer Addition -3477 Transformer upgrade -5-54 Terminal equipment upgrade -6-64 * Projects identified in previous RTP or the 2013 west Texas study which were needed in 2014 RTP

5. ERCOT PUBLIC 5/20/2014 5 Project Description 1)Firewheel - Wylie Switch 138-kV line upgrade 2) Northwest Carrollton - Lake Pointe 138-kV line upgrade 3)Dickinson - League City 138-kV line upgrade 4)South Shore - Hidden Lakes 138-kV line upgrade 5) Loop Roans Prairie - King 345-kV line into Rothwood 6)Switched shunt at Stewart 7)Switched shunt at PH Robinson 8) Arena Tap - Andrew County South 138-kV line upgrade 9)Big Lake - Stiles new 138-kV line 10) Flat Top TNP - Barilla Tap 138-kV tie 1. Tap existing Barilla - Musquiz138-kV line 2. New 138-kV line from the tap to Flat Top 3. New 138/69-kV transformer at Flat Top TNP 4. Upgrade Barilla Draw Tap TNP - Flat Top TNP 2014 RTP N-1 Projects 345-kV new project additions 138-kV new project additions 138-kV project upgrades 69-kV projects and terminal equipment upgrade projects not shown *Projects identified in previous RTP/West Texas Study

6. ERCOT PUBLIC 5/20/2014 6 Project Description 11) McDonald - Spraberry 138-kV line 1. Upgrade McDonald Road 138-kV switching station 2. Install McDonald Road Sw Station - Garden City East 138-kV line on new double circuit structures and operate both 69 kV and 138 kV 3. Upgrade Spraberry 138-kV Switching Station 4. Install Spraberry Switching Station - Garden City East 138-kV line on new double circuit structures and operate both 69 kV and 138 kV 12)Midland East - Stanton East 138-kV line upgrade 13) (a) Mason - Sand Bend POI 138-kV line upgrade (b) Mason - Culberson 138-kV line upgrade 14) (a) Add a new 345/138-kV autotransformer at Twin Buttes (b) Upgrade San Angelo Red Creek - San Angelo Coke Street 138-kV line 15) Ferguson - Sandy Creek - Pittsburg 138-kV line upgrade 16)Dermott - Ennis Creek 138-kV line upgrade 17)Morgan Creek - Cosden 138-kV line upgrade 18) Northeast Switchyard project with new auto at Highway 46 and tie to LCRA terminating at Clear Springs 19) Hutto Switch - Round Rock Northeast - Round Rock 138-kV line upgrade 2014 RTP N-1 Projects 345-kV new project additions 138-kV new project additions 138-kV project upgrades 69-kV projects and terminal equipment upgrade projects not shown *Projects identified in previous RTP/West Texas Study

7. ERCOT PUBLIC 5/20/2014 7 Project Description 20) Tap the 138-kV LCRA line between Shiner and Moulton and add a 69/138-kV auto at the GVEC Moulton substation 21)Zorn - York - Seguin 138-kV line upgrade 22) Lockhart auto and Lockhart - Seawillow - Luling 138-kV line upgrade 23)Marion - Cibolo second circuit addition 24)Pearsall - Paloduro 138-kV line upgrade 25)Fowlerton 345/138-kV auto addition 26) Lobo 345/138-kV auto addition and close San Diego tie between AEP and STEC 27)Cross Valley Project tap at South McAllen 28) Build 138-kV line between Escondido and West Batesville 29)Stewart Road - Weslaco Unit 138-kV line upgrade 30)Escondido - Eagle Pass 138-kV line upgrade 31)Bethel 138/69-kV autotransformer upgrade 32)Olsen 138/69-kV autotransformer upgrade 33)George West 138/69-kV auto upgrade* 34)Pleasanton 138/69-kV transformer upgrade* 35) Stewart 138/69-kV transformer upgrade, Stewart - Rio Rico and La Palma - Rangerville 69-kV line upgrades 2014 RTP N-1 Projects 345-kV new project additions 138-kV new project additions 138-kV project upgrades 69-kV projects and terminal equipment upgrade projects not shown *Projects identified in previous RTP/West Texas Study

8. ERCOT PUBLIC 5/20/2014 8 Next steps Case conditioning Initial start cases, contingency list and list of overloads ready N-1 SCOPF analysis G-1 screening followed by G-1+N-1 analysis X-1 screening followed by X-1+N-1 analysis Reliability analysis complete with all reliability issues resolved Economic case preparation Economic analysis Prepare the final RTP report