1

Entergy Transmission Planning Summit

Transmission Planning Process

Doug Powell

New Orleans, LA

July 8, 2004

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

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

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

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

6

Entergy Transmission Planning Process

Problemidentification

Preliminarysolutions

PlanningSummit

Refinesolutions;evaluatescope

Draft Expansion Plan

OASISposting

ICT toprovide

regulatoryreports

Sep-Oct Jan-May 3th wk Jun Mid - July

Nov 1

Year -1 Year 0

1 2 3 4 5 6

8

3A

10

FinalizesExpansion

Plan

11 13

Nov-Dec

OASISposting

OASISposting

ICTanalyzes and identifiesproblems and proposes

possible solutions7

PlanningSummit

Feedback

Sept 1Sept 1

9

Budgeting and Scopingfor

Years 2 -5And Out-of-Cycles

Projects

Jul - Aug

7

6

Jul - Sep 15

Dec - Aug

Sep 15

ICT to allocatebetween Base and

Supplement

ICT Oversight ICT Responsibility Customers

15

Jul - Sep Oct Nov

1412

Model Data Collection Mtg

Reliability Issues

Model Development &

Posting

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