138 kV Oyster Creek Project

Public MeetingPublic Meeting

Michael J. Pakeltis, P.E.Director, Transmission Operations

CenterPoint EnergyCenterPoint Energy

March 7, 2013

Overview

Tonight’s Presentationg

Facts about CenterPoint Energy Houston Electric, LLC (“CenterPoint Energy”) Project Detailsj CenterPoint Energy’s Application to the Public Utility Commission (PUC) PUC’s Transmission Line Certification Process Electric & Magnetic FieldsElectric & Magnetic Fields Land Acquisition Types of Transmission Structures Project ScheduleProject Schedule Resource Websites Q&A – submit written questions to designated CenterPoint Energy employees

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CenterPoint Energy Houston Electric –An electric delivery company only

Company FactsCompany Facts

Does not generate or sell electricityO d i t i l t i d li Owns and maintains electric delivery system – towers, poles, and wires

5,000 square-mile electric service territoryterritory

Serves over 2 million electric customers

Regulated by the PUCegu ated by t e UC

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Proposed ProjectPreliminary Route Segment Mapy g p

Need to establish a new route from a 138 kV transmission line

id t b t ti it i

345kVCorridor

corridor to a new substation site in Brazoria County

Cannot connect to 345 kV or 69 kV Many alternatives are proposed

138kVCorridor

Only one multi-segment transmission line route will ultimately be constructed

Many alternatives are proposed

` ultimately be constructed

Proposed138kVSubstation Site

69kVCorridor

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Why is the Project needed?

The proposed 138 kV transmission line will provide electric transmission service to Freeport LNGservice to Freeport LNG Development’s (Freeport LNG) proposed natural gas pretreatment and generation facility located north of

New Natural Gas Pretreatment and Generation Facility generation facility located north of

State Highway (SH) 332 near the interchange of SH 332 and County Road 690.

Generation Facility

Proposed CenterPoint Energy will also build a

new substation, known as the Oyster Creek Substation, within Freeport

ProposedSubstationSite

Creek Substation, within Freeport LNG’s property to interconnect the new generator and serve the facility.

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Project Process Overview

CenterPoint Energy will be seeking approval from the PUC to construct a 138 kV double-circuit transmission line to its proposed Oyster Creek Substation site Currently gathering information from public and governmental sources Routing segment alternatives are currently being evaluated Information gathered will be used to refine the routing alternatives

CenterPoint Energy will file an Application for a Certificate of Convenience CenterPoint Energy will file an Application for a Certificate of Convenience and Necessity (CCN) with the PUC in July 2013 The PUC will decide whether the application should be approved and the

route that the transmission line will be constructed The PUC can select any route proposed in the CCN application

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Early Stages for Preparing a CCN Application

Identify study area boundary

Gather initial environmental and land-use data from various agencies for th d fi d t dthe defined study area

Identify preliminary transmission line routing segments Provide diverse geographic alternatives Follow compatible rights-of-way where possible

Hold a public meeting to gather input from landowners and other interested partiesparties

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Next Steps in Preparing a CCN Application

Prepare a Routing Study and Environmental Assessment Assess, tabulate, and consider factors for each preliminary transmission line

segment from the following: Information provided at the public meeting Submitted questionnaires Governmental and agency contacts Field investigations

G f f Gather additional environmental and land-use data for the defined study area Add, modify, or delete initial preliminary transmission line routes based on

information gathered Identify a set of alternative routes proposed for construction in the CCN Identify a set of alternative routes proposed for construction in the CCN

Application

Prepare and Submit a CCN Application and Provide Notice

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PUC Certification Process forTransmission Lines Process defined by the Public Utility Regulatory Act (PURA) and PUC

Substantive and Procedural RulesT t t th tilit b it CCN li ti t th PUC To start the process, a utility submits a CCN application to the PUC

Notice is sent to affected landowners, municipalities, and adjacent utilities Intervention and comment period

With Intervention – Administrative Hearing Technical review session Testimony filed by all partiesy y p Administrative Law Judge presides Proposed final order is issued

OR Without Intervention PUC Staff Review OR...Without Intervention – PUC Staff Review Recommends approval as submitted or with modifications

PUC Makes Decision

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Within 12 months after CCN application is submitted Approve / Approve with modifications / Deny

Electric and Magnetic Fields

Electric and magnetic fields, sometimes referred to as “EMF”, exist wherever there is a flow of electricity

Sources of EMF include: Wiring in houses offices and schoolsWiring in houses, offices, and schools Electrical appliances and equipment (such as hairdryers, refrigerators, and

computers) Power lines Power lines

CenterPoint Energy mitigates EMF where practical

Information about EMF can be found on the project websitep j

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Land Acquisition

If the Project receives PUC approval, CenterPoint Energy will acquire an easement, including access roads and material yards, by mutual agreement with the landownerwith the landowner

If a mutual agreement cannot be reached, CenterPoint Energy will begin a condemnation proceeding by filing a petition in court. This process is d ib d i th St t f T L d ’ Bill f Ri htdescribed in the State of Texas Landowner’s Bill of Rights A judge will appoint three landowners from the resident county to serve as special

commissioners The special commissioners will determine the land value following a hearing where The special commissioners will determine the land value following a hearing where

all interested parties are entitled to provide evidence of valuation

Once the amount determined by the commissioners has been paid to the landowner or registry of the court CenterPoint Energy may take possessionlandowner or registry of the court, CenterPoint Energy may take possession of the easement for construction of the line

Either party can object to the value of the compensation by the

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commissioners and file an appeal with the court for a trial by judge or jury. The appeal does not change possession

What will the transmission line structureslook like? Steel towers and concrete

poles are the alternatives being consideredbeing considered

Right-of-way (ROW) width varies depending on the

dj t l dadjacent land use Towers require an 80’ wide

ROW in undeveloped areas Concrete poles require a 60’ Concrete poles require a 60

wide ROW in undeveloped areas

Concrete poles require a 25’ p qwide ROW adjacent to roadways (aerial only)

The PUC will ultimately

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decide the types of structures to be used

Typical structure shown. Heights will vary with topology.

Steel Towers can span longer distances, requiring fewer structures

What will the transmission line structureslook like?

Typical structures shown. Heights will vary with topology.

Concrete poles are more compact, Roadways cannot accommodate

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p prequiring less ROW but more structures per mile

ysteel towers

Project Schedule

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Construction Phases

Transmission line construction is accomplished in several distinct phases, including: Right-of-way preparation (clearing access etc )Right of way preparation (clearing, access, etc.) Foundation installation Structure installation

Wi i t ll ti Wire installation Right-of-way clean-up

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Resource Websites

www.centerpointenergy.com/oystercreek

www.puc.texas.gov

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Q&A Session

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