SUMMER RELIABILITY PRESENTATION

April 30, 2015

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~480,000 customers 528 sq. miles territory ~480,000 customers 528 sq. miles territory

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We are IPL

EAGLE VALLEY(Intermediate and Peaking Coal)

HARDING STREET & GEORGETOWN(Baseload and Intermediate Coal and Oil/Gas Peaking)

HOOSIER WIND PARK(PPA)

PETERSBURG(Baseload Coal)

LAKEFIELD WIND PARKMinnesota

(PPA)

SOLAR(RATE REP)

Improving lives by providing safe, reliable, and affordable energy solutions in the communities we serve.

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IPL’s Mission

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0.50

1.00

1.50

2.00

2.50

2009 2010 2011 2012 2013 2014IPL OSHA Total Recordable Injury & Illness Case Rate (TRII) EEI Peer Group Average ‐ TRII

Employee Recordable Injury and Illness Case Rate

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We value safety

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50

100

150

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300

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400

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500

1stQuartile

2ndQuartile

3rdQuartile

Top 10%

System Average Interruption Duration Index – in minutes

LOWER IS BETTER

Source: Results Based on SAIDI from 2013 (most recent) IEEE Benchmarking Data (Excluding MED)

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Reliability remains in the top 10% nationally

4thQuartile

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$50

$100

$150

$200

$250

$300

$350

$400

Source: 2014 Residential Bill Comparison of 20 Largest U.S. Cities With Investor-Owned Utilities | 2014 KB Parrish Report

Resi

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ial M

onth

ly B

ill f

or 1

,000

KW

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usto

mer

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Residential rates continue to be the lowest among large cities

Our focus is on our customer experience

IPL is committed to our communities

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MISO Coincident

Peak2,833 MW

7.1% Planning Reserve Margin

201 MW

IPL Generation2,825 MW

Purchases100 MW

2,500

2,600

2,700

2,800

2,900

3,000

3,100

Load Obligation Resources*

Demand Response67 MW

Behind the Meter Generation 42 MW

0

3,034 MW

2015

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IPL is prepared to meet the needs of our customers

*Based on Unforced Capacity or UCAP rating from MISO

• Eagle Valley– Existing coal units retired 2016– Combined Cycle Gas Turbine in 2017– Emission rate reductions >98% compared to

current units

• Eagle Valley– Existing coal units retired 2016– Combined Cycle Gas Turbine in 2017– Emission rate reductions >98% compared to

current units

• Harding Street Station– Refueling Units 5&6 to natural gas

approved– Plans to refuel Unit 7 to natural gas– Eliminate coal in 2016

• Harding Street Station– Refueling Units 5&6 to natural gas

approved– Plans to refuel Unit 7 to natural gas– Eliminate coal in 2016

• Petersburg– Additional significant investment through

2016– Baghouses, Electrostatic Precipitator

Improvements, Scrubber (FGD) upgrades– Reduce Mercury emissions by approx. 80%

• Petersburg– Additional significant investment through

2016– Baghouses, Electrostatic Precipitator

Improvements, Scrubber (FGD) upgrades– Reduce Mercury emissions by approx. 80%

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IPL is making investments in environmental improvements

I N D I A N A P O L I S P O W E R & L I G H T C O M P A N Y

IPL is Preparing for the Future

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IPL is pursuing a balanced generation portfolio

2007: Resources based on maximum summer rated capacity.2017: Resources based on maximum summer rated capacity.Includes long-term purchase agreements for wind as well as solar power under contract per Rate REP. Also reflects the proposed refuel of HSS Unit 7 from coal to natural gas (pending IURC approval).

IPL embraces emerging technologies

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2010-2014 Compared to IURC Targets

93% of cumulative target reached

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IPL has increased its investment in energy efficiency since 2010

 ‐

 20,000

 40,000

 60,000

 80,000

 100,000

 120,000

 140,000

 160,000

 180,000

2010 2011 2012 2013 2014

MWh

IPL Verified Gross Savings IURC Target

2015-2016 DSM Plan

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IPL remains committed to DSM

ACLMAppliance RecyclingHome Energy AssessmentIncome Qualified WeatherizationLightingMulti‐Family Direct InstallOnline Assessment w/ KitPeer Comparison ReportsSchool EducationACLMPrescriptive RebatesCustom ProjectsSmall Business Direct Install

2015 2016

Forecast spend* $23.6M $23.7M*Direct & Indirect program costs. Exclusive of performance incentives & lost margins.

IPL is engaged in IRP process improvement

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Continue a robust risk assessment 

of key market drivers

Fine‐tune theload 

forecasting,  DSM and DG modeling

Enhance the stakeholder process

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Indianapolis Power & Light Company is:

Committed to effectively serving our customers and communities.

Prepared with adequate resources to meet customer needs during Summer 2015.

Preparing to meet future needs with a balanced generation portfolio and innovative solutions.

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