1. 1 Entergy Transmission Planning Summit Transmission Planning Process Doug Powell New Orleans, LA July 8, 2004

2. 2 Entergy’s Transmission Planning Process Key Principles: Entergy coordinates the planning process Entergy ensures transmission system reliability through compliance with planning criteria and NERC Planning Standards The Independent Coordinator of Transmission (ICT) will ensure non-discriminatory access to the transmission system through oversight and will report to regulators Stakeholders will be involved throughout the planning process The ICT will ensure the planning process is an open, transparent and participatory process The process provides the necessary attention to local area issues (reliability and load-serving capability)

3. 3 Purpose of ICT Proposal Goals of the ICT proposal are to: achieve greater independence and oversight of the operation and planning of the Entergy transmission system; achieve greater efficiency in providing and pricing transmission service and the expansion of the transmission grid; provide regulators with direct reports submitted by an independent entity regarding the operation and planning of transmission system; address concerns articulated by retail regulators.

4. 4 Scope of ICT Oversight and regulatory reporting roles Transmission Planning Process and Base Plan Adherence to line ratings criteria Adherence to planning criteria and reliability standards Reasonableness of planning criteria used in the transmission planning process Active role Decisional authority whether an investment is a Base Plan Upgrade or a Supplemental Upgrade. –Base Plan Upgrade: Transmission investment necessary to maintain standards of safety and reliability and to serve forecasted load growth from currently approved network resources. –Supplemental Upgrade: All other investments, including the costs associated with accelerating base plan investments

5. 5 Calling Balls and Strikes Base Plan (Reliability and load growth) New service requests Required upgrades Reliability vs Incremental Reliability standards Load forecasts Part of Base Plan Supplemental Rolled in“Higher of” pricing principles Entergy responsibility with IE oversight IE final decision maker

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7. 7 Planning Process - Key Dates Sep. – Oct. 2003: Customer input for 2004 and beyond projects Feb. 2004: Rank the list of 2004 long range projects Feb. to July 2004: Scoping process Mar. - July 2004: Joint planning meetings with stakeholders July 8, 2004: Transmission Planning Summit End of Aug. 2004: Customer input for 2005 projects Aug. – Sep. 2004: 2005 budget system opens Sep. – Oct. 2004: Customer input for 2006 and beyond projects Oct. 26, 2004:Model data collection meeting Dec. 2004 – Jan. 2005: Approval 2005 budget