JACKSBORO TO WEST DENTONand

WEST LEVEE TO NORWOOD 345-kV PROJECTS

April 20, 2004

Transmission ServicesOperations

© ERCOT 2004 3/31/2004

Goals and Objectives

• Maintain reliable service to customers• ERCOT Planning Criteria• NERC Planning Standards and Guidelines• Good Utility Practice

• Support load growth in DFW Metroplex• Support increased imports from 345 kV

system• Currently in compliance with planning

criteria requirements but will not be in 2006 without projects

© ERCOT 2004 3/31/2004

Scope of Projects

Build a double-circuit 345 kV line from Oncor’s Jacksboro Switching Station to TMPA’s West Denton 345/138-kV Switching Station • Approximately 50 miles• 2-1590 kcmil ACSR conductor with one circuit in

place• Estimated cost: $46.5 Million (TCOS: $7.7 M)

Build a double-circuit 345-kV transmission line from West Levee Switching Station to Norwood Switching Station (within Oncor) • Approximately 7 miles• 2-1590 kcmil ACSR conductor with one circuit in

place• Estimated Cost: $10.2 Million (TCOS: $1.7 M)

© ERCOT 2004 3/31/2004

Open Process

• North Regional Planning Group analysis and input• Jacksboro to West Denton Project scope sent to North

Regional Planning group on August 27, 2003• West Leeve to Norwood Project scope sent to North Regional

Planning group on October 22, 2003• Questions and comments were received and addressed• North RPG open meeting held on December 11, 2003

• ERCOT independent analysis sent to RPG• Jacksboro to West Denton on January 21, 2004• West Leeve to Norwood on February 27, 2004

• ERCOT acceptance letter sent to RPG• Jacksboro to West Denton on February 25, 2004• West Leeve to Norwood on March 1, 2004 • No dissenting comments received

© ERCOT 2004 3/31/2004

Independent Analysis

• ERCOT Staff has performed independent analysis using in-house expertise, models and software tools of these projects• Thermal studies

• Using Shaw PSS/E & MUST

© ERCOT 2004 3/31/2004

North Texas

© ERCOT 2004 3/31/2004

Proposed Project

© ERCOT 2004 3/31/2004

Alternative 1

© ERCOT 2004 3/31/2004

Denton/DFW Area

• Denton County Load – 1,600 MW in 2003 • Growth to 1,830 MW in 2008 (2.8%/yr)

• DFW Load – Denton, Tarrant, Dallas, Collin – 17,850 MW in 2003• Growth to 20,100 MW in 2008 (2.4%/yr)

• Generation limits due to emission reductions mandated by TCEQ

• Further reduction of generation by TXU energy for economic operation

• No new generation development in area

© ERCOT 2004 3/31/2004

Central and South Dallas

© ERCOT 2004 3/31/2004

Project Close Up

© ERCOT 2004 3/31/2004

Dallas/DFW Area

• Dallas County Load – 8,600 MW in 2003 • Growth to 9,550 MW in 2008 (2.1%/yr)

• DFW Load – Denton, Tarrant, Dallas, Collin – 17,850 MW in 2003• Growth to 20,100 MW in 2008 (2.4%/yr)

• Generation limits due to emission reductions mandated by TCEQ

• Further reduction of generation by TXU energy for economic operation

• No new generation development in area

© ERCOT 2004 3/31/2004

Recommendation

Endorse the need for the Jacksboro to West Denton and the West Levee to Norwood 345-kV projects

© ERCOT 2004 3/31/2004

Questions

Due to its very nature, transmission planning is a continuous process and is constantly changing due to the addition (or elimination) of plans for new generation, transmission facilities, equipment, or loads.

Benefits of good planning are not realized until transmission projects are completed and placed in service.