1. JACKSBORO TO WEST DENTON and WEST LEVEE TO NORWOOD 345-kV PROJECTS April 20, 2004 Transmission Services Operations

2. © ERCOT 20043/31/2004 Goals and Objectives Maintain reliable service to customers ERCOT Planning Criteria NERC Planning Standards and Guidelines Good Utility Practice Support load growth in DFW Metroplex Support increased imports from 345 kV system Currently in compliance with planning criteria requirements but will not be in 2006 without projects

3. © ERCOT 20043/31/2004 Scope of Projects Build a double-circuit 345 kV line from Oncor’s Jacksboro Switching Station to TMPA’s West Denton 345/138-kV Switching Station Approximately 50 miles 2-1590 kcmil ACSR conductor with one circuit in place Estimated cost: $46.5 Million (TCOS: $7.7 M) Build a double-circuit 345-kV transmission line from West Levee Switching Station to Norwood Switching Station (within Oncor) Approximately 7 miles 2-1590 kcmil ACSR conductor with one circuit in place Estimated Cost: $10.2 Million (TCOS: $1.7 M)

4. © ERCOT 20043/31/2004 Open Process North Regional Planning Group analysis and input Jacksboro to West Denton Project scope sent to North Regional Planning group on August 27, 2003 West Leeve to Norwood Project scope sent to North Regional Planning group on October 22, 2003 Questions and comments were received and addressed North RPG open meeting held on December 11, 2003 ERCOT independent analysis sent to RPG Jacksboro to West Denton on January 21, 2004 West Leeve to Norwood on February 27, 2004 ERCOT acceptance letter sent to RPG Jacksboro to West Denton on February 25, 2004 West Leeve to Norwood on March 1, 2004 No dissenting comments received

5. © ERCOT 20043/31/2004 Independent Analysis ERCOT Staff has performed independent analysis using in-house expertise, models and software tools of these projects Thermal studies Using Shaw PSS/E & MUST

6. © ERCOT 20043/31/2004 North Texas

7. © ERCOT 20043/31/2004 Proposed Project

8. © ERCOT 20043/31/2004 Alternative 1

9. © ERCOT 20043/31/2004 Denton/DFW Area Denton County Load – 1,600 MW in 2003 Growth to 1,830 MW in 2008 (2.8%/yr) DFW Load – Denton, Tarrant, Dallas, Collin – 17,850 MW in 2003 Growth to 20,100 MW in 2008 (2.4%/yr) Generation limits due to emission reductions mandated by TCEQ Further reduction of generation by TXU energy for economic operation No new generation development in area

10. © ERCOT 20043/31/2004 Central and South Dallas

11. © ERCOT 20043/31/2004 Project Close Up

12. © ERCOT 20043/31/2004 Dallas/DFW Area Dallas County Load – 8,600 MW in 2003 Growth to 9,550 MW in 2008 (2.1%/yr) DFW Load – Denton, Tarrant, Dallas, Collin – 17,850 MW in 2003 Growth to 20,100 MW in 2008 (2.4%/yr) Generation limits due to emission reductions mandated by TCEQ Further reduction of generation by TXU energy for economic operation No new generation development in area

13. © ERCOT 20043/31/2004 Recommendation Endorse the need for the Jacksboro to West Denton and the West Levee to Norwood 345-kV projects

14. © ERCOT 20043/31/2004 Questions Due to its very nature, transmission planning is a continuous process and is constantly changing due to the addition (or elimination) of plans for new generation, transmission facilities, equipment, or loads. Benefits of good planning are not realized until transmission projects are completed and placed in service.