1. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. INDEPENDENT, INNOVATIVE, RELIABLE TRANSMISSION MANAGEMENT SERVICES Welcome TranServ International Overview Kevin Burns Stakeholder Workshop July 18, 2006

2. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Introduction and Overview Agenda  Welcome & TranServ Overview – Kevin Burns, President, TranServ International  Stakeholder Process Overview – Paul Sorenson, Director, TranServ International  MidAmerican Perspectives on TSC & Continuation of TP Role – MidAmerican Energy Representatives  Planning Process – Jagjit Singh, Director, TranServ International  Tariff Administration – Paul Sorenson, Director, TranServ International  Verification Plan for TranServ’s Readiness for Cutover – Darrel Gunst, Manager Transmission Services, MidAmerican Energy  Q & A  Adjourn at 5:00 PM

3. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Mission  TranServ International’s mission is to provide Innovative, High Quality, Reliable, Competitively Priced Transmission Management services to the energy industry While demonstrating: Independence Flexibility Transparency Cost Efficiency

4. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Corporate Structure  TranServ International is a for profit Independent Corporation  TranServ International is not affiliated with any Market Participant or Transmission Provider  TranServ International has been structured to meet the criteria for independence under MidAmerican’s OATT Attachment K  TranServ International has a highly qualified team and will also draw upon contractual relationships with expert organizations to provide highly efficient, cost- effective, quality service with low overhead

5. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Initial Organization

6. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Role of TranServ as the TSC  TranServ will administer certain elements of MidAmerican Energy's OATT as specified in Attachment K of the MidAmerican Energy tariff, namely: Calculate TTC and ATC for flowgates and interfaces not otherwise determined by Midwest ISO Grant/deny transmission service requests Approve/deny NERC E-Tags Receive/process all generator interconnection requests Manage the generator interconnection queue (transmission service queue is currently managed through OASIS -- this will not change) Perform transmission/generator interconnection feasibility and system impact studies, and Participate in MAPP regional coordination and planning processes.

7. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Role of TranServ as the TSC, cont.  TranServ will also perform audits as required by Commission Orders  MidAmerican will remain the Transmission Provider under its OATT  TranServ will not operate the MidAmerican Transmission System  TranServ will not perform any reliability functions or services for MidAmerican  TranServ will not assume responsibility for any of the transmission and reliability functions that Midwest ISO currently performs on a regional basis for those members of MAPP that are not transmission owning members of Midwest ISO pursuant to a contractual arrangement between MAPP and Midwest ISO

8. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Changes for Transmission Customers?  MidAmerican Transmission Customers will continue to submit OASIS Requests and Complete E-Tags just as they do today MEC is still the transmission provider Midwest ISO is still the reliability coordinator No changes related to OASIS access  You will change who you call in the case of questions regarding Transmission Service Reservations, E-Tags, and Planning Studies: TranServ instead of MidAmerican TranServ Support for operational questions  You will find certain information related to TranServ business operations on the TranServ website or on OASIS www.transervinternational.com or select the links on the MEC OASISwww.transervinternational.com

9. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Changes for Transmission Customers?  You will experience a higher level of automation for OASIS Request Evaluation and E-Tag Validation Processes similar to MAPP MMTA Consistency in processing time and rules for approval Decreased need for discretion by TranServ staff  You will interact with TranServ staff for System Impact and Generation Interconnection Studies Study agreements will be executed with TranServ  You will see TranServ staff in addition to MidAmerican staff participating Regional Planning Meetings TranServ staff will facilitate ad hoc study groups

10. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. TranServ Value Added  Will bring transparency to the administration of MidAmerican tariff  Enhances market confidence in conduct of all activities in a comparable and non-discriminatory manner  Will be independent from all Market Participants/Customers  Will align business practices with emerging industry standards  Will facilitate coordination on seams and other related issues  Expertise in automation will introduce new standards for cost-effectiveness, consistency in screening and non- discriminatory treatment, reconciliation of all schedules against reservations, transparency, and customer service

11. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. TSC Transition Schedule  And when does this happen? 10:00 a.m., Wednesday, August 30, 2006

12. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Questions  General Discussion Questions Comments

13. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Stakeholder Process Overview Paul R. Sorenson Stakeholder Workshop July 18, 2006 INDEPENDENT, INNOVATIVE, RELIABLE TRANSMISSION MANAGEMENT SERVICES

14. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Stakeholder Process Overview  Purpose The TSC shall establish a stakeholder process to solicit the views of Market Participants (including the Transmission Provider’s wholesale merchant function) regarding the functions performed by the TSC. The TSC shall, in consultation with the Transmission Provider and Market Participants, develop and post on the Transmission Provider’s OASIS, procedures pursuant to which the Transmission Provider, and interested Market Participants may meet with representatives of the TSC to discuss, among other things, the TSC’s performance of the functions and the division of responsibilities and duties as set forth in MidAmerican’s OATT Attachment K.

15. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Stakeholder Process Overview  The Process TranServ’s Process for Conducting the TSC Stakeholder Process will be Posted on OASIS Expect this to be an evolutionary process Customer Driven Open and Inclusive Responsive

16. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Stakeholder Process Overview  The Process Open Forum for Addressing: – Common Concerns and Issues – Business Process Issues – Operational Improvements – Industry Initiatives – Regulatory Changes MAPP RTC Planning Forum recognized as the Stakeholder Forum/Process for Planning Activities Will not duplicate or substitute for activities of the Iowa Transmission Working Group, MAPP Planning Committee, etc.

17. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Stakeholder Process Organization  Participation Stakeholders – Any Eligible Customers under the MidAmerican OATT, their designated agents, or regulatory representatives – May participate in any/all activities of the Stakeholder Process Stakeholders At-Large – Active Stakeholders participating in the Stakeholder Process – Direct the Activities, Deliberations and Recommendations of the Stakeholder Process

18. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Stakeholder Process Organization  Participation Ad hoc Stakeholder Working Groups – May be formed or dissolved by the Stakeholders At-Large – Assigned to address a specific issue(s) arising out of the Stakeholder Process – May have appointed members – No restriction on any Stakeholder’s participation Standing Municipal Stakeholder Working Group – Municipal LSEs on the MidAmerican Transmission System

19. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Stakeholder Process Organization  Participation Stakeholder At-Large Meetings – Scheduled semi-annually, or – “As needed”, at the request of Stakeholders, the Transmission Provider, or the TSC Stakeholder Working Group Meetings – “As needed”, at the request of the Working Group

20. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Stakeholder Process Communication  MidAmerican OASIS Home Page Stakeholder Meeting Information – Date, time and location – Agenda and Meeting Materials – Minutes Stakeholder Recommendations – Posting of recommendation and request for comments – Posted comments and response – Notification of final resolution/action

21. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Stakeholder Process Communication  Communication Services TranServ Stakeholder Contact List – All designated Service Agreement contacts – Individuals on request – Notification list for all Stakeholder Announcements Stakeholder Forum – Self-subscription e-mail list server – TSC.Stakeholders@transervinternational.net TranServ Contact – Managers@transervinternational.net Support Contact – Support@transervinternational.net

22. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Stakeholder Process Communication  Stakeholder Meeting Notifications Notification and call for agenda items Final agenda and meeting materials Posting of draft minutes and call for comments  Customer Meetings Individual Customer Meetings with TranServ as TSC will be posted

23. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Stakeholder Process Recommendations  Recommendations for new/changes to: Business Guidelines – TranServ as TSC Business Practices – MidAmerican as TP  Initiated through Stakeholder Process by any party  Recommendations developed through the Stakeholder Process

24. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Stakeholder Process Recommendations  Final Recommendations Posted for Stakeholder comment for minimum of 30 calendar days All comments received to be reviewed and final disposition posted for notice If recommendation adopted (as-is or subject to modification), notification of change to Business Guideline/Practice posted with minimum of 10 business days prior to implementation Emergency actions or operational concerns may override notification guidelines – all such actions subject to subsequent Stakeholder review and modification

25. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Questions  General Discussion Questions Comments

26. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. INDEPENDENT, INNOVATIVE, RELIABLE TRANSMISSION MANAGEMENT SERVICES MidAmerican Energy Continuing Roles Darrel Gunst Stakeholder Workshop July 18, 2006

27. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. MidAmerican Energy Perspectives & Roles  MidAmerican Energy Continuing Roles NERC Transmission Provider – Transmission Provider and Billing – Darrel Gunst, Manager Transmission Services, MidAmerican Energy Transmission Planner – Planning for Reliability - Tom Mielnik, Manager Electric System Planning, MidAmerican Energy Transmission Operator & Balancing Authority – Facility operations and legacy control area responsibilities – Larry VanWyhe, Supervisor Transmission Operations, MidAmerican Energy

28. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Questions  General Discussion Questions Comments

29. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Transmission Planning Jagjit Singh, Ph.D Stakeholder Workshop July 18, 2006 INDEPENDENT, INNOVATIVE, RELIABLE TRANSMISSION MANAGEMENT SERVICES

30. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Transmission Planning  Mission  Approach  Customer Service  Coordination with MidAmerican Energy  Regional Participation  Planning Criteria  Contractors  OASIS Posting and Process

31. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Mission of Planning Team  Participate in the Regional Planning Process  Keep open dialogue through Stakeholder Process  Manage generator interconnection queue  Manage/Perform System Impact Studies (SIS) and Generator Interconnection Studies (GIS)  Provide Independence and Oversight for Base Model Development, TTC calculation and Facility Studies  Keep overall cost low

32. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Approach  Keep the process simple and a close to what it is today and provide more transparency  Protocols and Criteria Documents will be posted for comments  Qualified Contractors for performing SIS/GIS Siemens PTI Excel Engineering

33. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Customer Service Phone/e-mail – 763-205-7099 – support@transervinternational.net  SIS and GIS Checklists posted  Queue Management  Automated Issues logging and follow ups

34. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Planning Process  Participate in Regional Planning Activities Base Model Validations Manage Planning Studies  Potential Contractors to Perform Studies Excel Engineering Siemens PTI Utility System Efficiencies, Inc. (USE)

35. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Study Coordination  Ad hoc Study Groups  Approval of Design Review Subcommittee (DRS)  Review Facilities Studies Process  Formalize the Model Validation Process

36. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Planning Criteria  Following Criteria will be posted TSR Processing System Impact Study Generator Interconnection Study Stakeholder Process and Procedures  Stakeholders to comment on posted Documents

37. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Regional Participation  Participate in MAPP and Midwest ISO Committees – Including Seams Related Groups  Review Current Reports, Meeting Minutes, Processes, and Procedures  MAPP Planning Process and TranServ Stakeholder Process  OASIS Posting of Stakeholder Information (Question/Answers)

38. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Committee Role  Keep up with the Regional Planning Issues  Report on any changes to Base Model and Studies  SIS/GIS DRS Approval

39. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. OASIS Postings  Criteria Documents along with Comments  SIS and GIS Check-list  Interconnection Queue Status and link to Studies

40. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Questions  General Discussion Questions Comments

41. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Tariff Administration & Scheduling Paul R. Sorenson Stakeholder Workshop July 18, 2006 INDEPENDENT, INNOVATIVE, RELIABLE TRANSMISSION MANAGEMENT SERVICES

42. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Customer Relations and Support  Our Mission Provide Quality Service & Timely Support on a 24x7x365 Basis  Customer Support Services TranServ Help Desk – First point of contact for any Customer for transmission service related or technical support questions Nondiscriminatory assistance with regard to transmission services administered by TranServ Technical Issues – Initial call screening by TranServ Operations – Automatic escalation to OATI Help Desk Business Issues – Initial call screening by TranServ Operations – Automatic escalation to TranServ Management

43. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Customer Relations and Support  Contact Information TranServ Help Desk – (763)-205-7099 – Support@transervinternational.net Stakeholder Forum – TSC.Stakeholders@transervinternational.net TranServ Management – Managers@transervinternational.net

44. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Tariff Administration & Scheduling  Our Mission Provide independence from all Market Participants Bring transparency to transmission markets Conduct all activities in a fair and comparable manner  Tariff Administration & Scheduling Services OASIS Maintenance and Content Management ATC Calculations and ATC/AFC Evaluation Transmission Service Request Evaluation and Queue Management Tagging and Scheduling

45. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Tariff Administration & Scheduling  Open Stakeholder Process Key to establishing credibility Enhance transparency of transmission services Align business processes with emerging Industry Standards Active participation in Industry Standards process  Automation Key to establishing cost-effectiveness Consistent screening and non-discriminatory treatment of each transmission service request Consistent screening and non-discriminatory treatment of each schedule (tag) request Reconciliation of all schedules against reservations

46. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Tariff Administration  Transmission Service Agreements Managed directly with MidAmerican – Service Agreement forms accessible from MEC OASIS home page – Procedures posted on MEC OASIS home page – Service deposits  Transmission Billing Managed directly with MidAmerican  Transmission Service Requests Managed directly with TranServ via OASIS

47. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Tariff Administration  Transmission Service Request Evaluation Transparent process conducted on OASIS in adherence to MidAmerican’s tariff and approved business practices Criteria subject to Open Stakeholder Process Uniform screening process for initiating transmission studies Administration of: – Renewal/roll-over rights – Redirection of service – Displacement of lower priority requests Automated decision support: – ATC/AFC validation – Service Timing (lead time, duration, etc.) – Price validation and discounting – Approve/Deny Manual intervention as required

48. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Tariff Administration  Transmission Service Queue Transition Effective 10 am CDT on August 30, 2006 All approve/deny actions taken by TranServ  Transmission Service Request Changes No immediate changes Network Service arrangements on OASIS (DNRs, etc.)

49. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Scheduling  Tagging & Scheduling TSC functions in role of Transmission Provider MidAmerican retains its role as Control Area (Balancing Authority) Automated decision support: – Reconciliation of tagged transactions with service reservations – Verification of designated resources serving network load(s) – Validation of contract path adjacency – Approve/deny Manual intervention as required

50. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Scheduling  Tagging & Scheduling Transition Effective 10 am CDT on August 30, 2006 All TP approve/deny actions taken by TranServ  Tagging & Scheduling Changes Encourage use of 7-FN vs. 7-F product codes Conversion to OASIS assigned identifiers – Grandfathered Agreements – Designated Network Resources

51. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. OASIS Modifications  OASIS Content MEC OASIS Home Page – Pro Forma Agreements and Forms – Business Practices, Processes and Procedures – Stakeholder Information – Standards of Conduct – Transmission and Interconnection Study Queues Additional Postings of Interest – MEC Contract Path ATCs – Critical Transmission Facility Outages – TLR Notices – Tag Curtailment and TSR Usage

52. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. OASIS Modifications  OASIS Operations Redirect on Non-Firm Basis Resale and Transfer Process Network Service Applications Displacement and Right-Of-First-Refusal Process OATT Reform NOPR

53. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Questions  General Discussion Questions Comments

54. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. INDEPENDENT, INNOVATIVE, RELIABLE TRANSMISSION MANAGEMENT SERVICES TSC Readiness Verification & Cutover Darrel Gunst Stakeholder Workshop July 18, 2006

55. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. TSC Readiness & Cutover  Verification Plan for TranServ’s Readiness for Cutover Readiness Criteria Validation TranServ Shadowing MidAmerican (August) MidAmerican to Certify TranServ Readiness with FERC Filing  Cutover of TSC Functions 10 A.M., Wednesday, August 30, 2006 Daily afternoon conference call-ins: Monday, August 28 through Friday, September 1, 2006

56. Proprietary Information. Do not copy or distribute without permission from TranServ - © TranServ International, Inc. Questions  General Discussion Questions Comments