Interconnection Update Jay Zimmerman Manager, Transmission Policy

1
Interconnection UpdateJay Zimmerman Manager,
Transmission Policy

• Entergy Transmission Planning Summit
• New Orleans, LA
• July 8, 2004

2
Interconnection Update

• Total of 187 requests for Interconnection Studies
  including cancelled studies and duplicate studies
  for the same project
• Currently 0 requests in Queue

3
Interconnection Operating Agreements (IOA)

• Entergy has filed over 60 IOAs with FERC for
  new/existing generating facilities representing
  approximately 36,000 MW
• 19 IOAs representing approximately 7,600 MW have
  been cancelled (some were for existing generation
  and others were proposed)
• 3 new generation projects representing
  approximately 1,760 MW have either suspended
  construction before completion or suspended
  operation after completion
• Approximately 25,000 MW of new/existing
  generation is operating/capable of being operated

4
FERC Interconnection Final Rule Order Nos. 2003
and 2003-A

• Order No. 2003 Standardization of Generator
  Interconnection Agreements and Procedures issued
  July 24, 2003
• FERC issued a Notice of Extension of Time on
  October 7, 2003, granting requests to extend the
  effective date of the Final Rule and the date on
  which compliance filings were due to January 20,
  2004

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Order No 2003 Compliance Filings

• For all non-independent Transmission Providers
  (TP), FERCs Order No. 2003 deemed their OATTs to
  be revised to include the pro forma Large
  Generator Interconnection Agreement and
  Procedures on January 20, 2004
• Non-independent TPs were directed to make
  ministerial filings reflecting those revisions to
  their OATT in their next filings with the
  Commission
• Any non-independent TPs seeking a variation from
  the pro forma LGIP and LGIA based on existing
  regional reliability standards must inform FERC
  on or before January 20, 2004
• After January 20, 2004, any non-independent TP
  may separately file proposed changes to its LGIP
  and LGIA under FPA Section 205 using the
  consistent with or superior to standard

6
Large Generator Interconnection Order on
Rehearing Order No. 2003-AMarch 5, 2004

• Higher Of Ratemaking Policy
• Where rolling in the costs of network upgrades
  incurred for an interconnection would have the
  effect of raising the average embedded cost rate
  paid by existing customers, the Transmission
  Provider may elect to charge an incremental cost
  rate to the interconnection customer and thereby
  fully insulate existing customers from the costs
  of any necessary system upgrades. However, under
  no circumstances may a non-independent
  Transmission Provider charge an Interconnection
  Customer both an incremental cost rate and an
  embedded cost rate associated with existing
  network transmission facilities.

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Order on Rehearing Addresses Pricing Concerns
Raised on Rehearing

• Clarify that the TP continues to have the option
  to charge the higher of an average embedded
  cost rate or an incremental cost rate for Network
  Upgrades
• Clarify that up-front funding and crediting are
  only to facilitate financing of the Network
  Upgrades
• Modify two features of the crediting policy
• Credits are required only for transmission
  delivery service taken with respect to the
  interconnecting Generating Facility
• TP has option after 5 years to return outstanding
  balance or continue to provide credits based on
  actual transmission delivery service taken from
  Generating Facility

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Types of Interconnection Service

• Energy Resources Interconnection Service (ERIS)
• Provides as-available access to transmission
  service at Point of Interconnection
• Network Resource Interconnection Service (NRIS)
• Allows Generating Facility to be a Network
  Resource, subject to congestion provides a more
  flexible and comprehensive interconnection service

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Types of Interconnection Service(Continued)

• Neither ERIS or NRIS convey any right to the
  delivery component of transmission service
• NRIS does not ensure delivery to specific loads
  or locations
• TP is able to perform additional studies and
  require construction of upgrades necessary to
  fulfill a subsequent request for delivery service
• TP may propose NRIS procedures that are
  compatible with regional practices under the
  consistent with or superior to standard
• NRIS (an interconnection service) is not a
  replacement for NITS (a delivery service)

10
Entergy Regional Reliability Compliance Filing
Pursuant to Order No. 2003-A

• Consistent with SERC Planning Standards, ERIS
  studies will include the requirement that Entergy
  perform a regional transfer capability analysis
• Consistent with SERC Planning Standards, requests
  for ERIS require that the interconnection
  customer perform a reactive power analysis and
  provide results to Entergy
• Consistent with NRC regulations, as part of the
  Interconnection System Impact Study process a
  nuclear plant off-site power analysis is
  required, if applicable