1. Federal Energy Regulatory Commission Presentation by Nick Winser - Sr. Vice President Wednesday, 26 th June Washington, D.C.

2. Marbled Cheese – Does it Matter?  Overview  Issues — Market Development and Operation — Transmission Functional Control — Transmission investment, operation and ownership

3. Overview  Today’s conundrum caused by... — lack of coherent, integrated, seamless market — lack of separation of transmission from generation and load serving

4. Overview  An unenviable choice for the Commission  Approve the proposition... — can be made to work — may compromise efficiency — looks untidy  Reject the proposition... — may cause further delay

5. Market Development and Operation  Mixing current Midwest and PJM “market designs” is a bad idea  If you accept “marbled cheese”... — AEP, ComEd, IP and Dayton should implement Midwest arrangements under PJM until SMD introduced — SMD should be accelerated

6.  Split between RTO and ITC in Alliance and Translink Orders  Concur with Jim Torgerson’s views and... MISOPJMMISOPJM NATIONAL GRID is better than... MISO PJM MISOPJM NG  National Grid can help mitigate the seams Transmission Functional Control

7. Transmission Investment, Operation & Ownership  Dramatic change to management of transmission is required if markets are to work — management focus — financial focus and firepower  ITCs are the vehicle for this change  Delighted with GridAmerica proposition and seek Commission’s approval  Seek Commission’s encouragement for this approach under PJM