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Entergy Gulf States, Inc.(Texas)

Proposed Transmission Reliability Projects

Entergy Transmission Planning Summit

New Orleans, LA

July 10, 2003

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Texas

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2004 EGSI-TX Proposed Transmission Reliability Projects

230 kV Line 422 (Helbig-

Amelia) Line Upgrade

CARRYOVER

69 kV Line 6(Amelia-Raywood)

Reliability Improvements(Multi-year)

230 kV Line 821(Jacinto-Porter)

CCN

Possible additional D-SMES or other devices

230 kV Line 822

(China-Porter) New Construction

(Multi-year)

EGSI-TX Capacitor BankReliability Improvements

(Multi-year)

230 kV Line 599 (Amelia-

China) Line Upgrade(Multi-year)

Porter 230/138 kV Substation (Multi-year)

69 kV BeaumontReliability Improvements

(Multi-year)

69 kV NechesReliability Improvements

(Multi-year)

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69 kV Line 6 (Amelia-Raywood):Reliability Improvement Plan

Goals• Increase Sectionalizing Capability to reduce restoration time • Enhance Voltage Support• Increase Line Capacity

Completed/In Progress Projects• Install 69 kV circuit breakers at Batson, Sour Lake, & Daisetta substations• Install additional sectionalizing equipment (i.e., motor-operated switches, motor

mechanisms, RTUs)• Upgrade line capacity from Raywood Substation to Hull Tap• Estimated Cost: $1.2M

Additional Improvements for 2004 and beyond• Install 14 MVAR capacitor bank at Batson 69 kV substation• Upgrade capacity from Amelia Substation to Hull Tap

Estimated Cost: $8M

2004-08

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V

2004-08

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230kV Line 821 (Jacinto-Firetower-Porter):Certificate of Convenience and Necessity (CCN)• Additional load growth (industrial, commercial, & residential) in the eastern

part of Montgomery County located in Entergy's Western Region has exacerbated the single contingency overload of several 138 kV transmission lines. These 138 kV transmission lines are some of the key east-west tie lines within the EGSI-TX service territory.

• Overloading on 138 kV Line 571 (Jacinto-Tamina) have the potential to occur under the single contingency loss of 138 kV Line 86 (Dayton Bulk-New Caney) In addition, overloading may occur on 138 kV Line 50 (Dayton-New Long John) and 138 kV Line 150 (New Long John-Cleveland) upon the single contingency loss of Line 568 (China-Jacinto) 230 kV in 2004.

2004

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230kV Line 821 (Jacinto-Firetower-Porter):CCN (cont’d)

• A proposed 2005 project to build a 230 kV transmission line from China to Porter/Tamina 230 kV substations along with the construction of a new 230/138 kV substation at Porter/Tamina will relieve these single contingency line overloads. However, this project does not meet the need of the local distribution customers in the immediate Firetower area (Eastern Montgomery County).

• To serve the immediate needs in the Firetower area, a customer-owned radial transmission line is proposed as a temporary solution for 2004. The long term needs of the area will be met by the proposed Line 821 (Jacinto-Porter) 230 kV.

• Estimated Cost: $400k

2004

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Proposed Transmission Service for Firetower Substation

2005 • ~ $ 3.6 M • construct 6-mile radial at 230 kV and energized

from Porter 138 kV 2005 to Firetower 138 kV

2007-08• ~ $ 11.2 M • construct 18-mile to complete line from

Firetower to Jacinto 230 kV substation

Tamina/Porter

Apollo

Firetower Splendora

Jacinto

Customer-owned line & sub

Long Term Firetower Service

Tamina/Porter

Apollo

Firetower Splendora

Jacinto

Temporary Firetower Service

2003-04 • ~ $ 400 k • Utilize existing customer-owned 138 kV

transmission line

Customer-owned line & sub

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2004-05 EGSI-TX Transmission Western Region Improvement Plan: Phase II

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Phase II of the Western Region Improvement Plan addresses the projected load growth in 2005.

In 2003, several planning studies have indicated the Western Region has the potential to encounter dynamic voltage stability problems and thermal overloading under the double contingencies listed below.

Load at risk in 2005 is ~ 158 MW under any of the following double contingencies:Loss of Lewis Creek Unit & 345 kV Line 119 (Crockett-Grimes)Loss of Lewis Creek Unit & 230 kV Line 568 (China-Jacinto)Loss of both Lewis Creek Units

500/230kV Auto (Cypress) COMPLETED

Construct Line 822 (China-Porter) 230 kV

Construct 230/138kV Porter Substation

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5 Install 500 MVAR Dynamic Reactive Power Support Devices

Upgrade Line 599 (Amelia-China) 230 kV4

Phase II Projects

~$63M

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EGSI-TX Capacitor BankReliability Improvement Plan

• Due to the limited supply of reactive power from generation sources in the EGSI-TX service territory, capacitor banks provide critical additional reactive power support.

• In recent years, several different factors have contributed to violent failures of EGSI-TX capacitor banks:

– Size of pre-insertion devices

– Relaying on capacitor banks

• To prevent such failures, some capacitor banks will be targeted for reliability improvements in 2003 and beyond that may include:

– Installation of new pre-insertion devices

– Installation of new switches equipped with pre-insertion devices

– Installation of new relaying equipment

– Relocation of some capacitor banks to electrically distance the banks

– Replace obsolescent equipment associated with capacitor banks

2003+

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• As an interim solution, Entergy’s transmission planning, operations, and maintenance departments are in the process of evaluating operating procedures and work practices to develop a set of operational guidelines to reduce the frequency of capacitor bank switching until long-term solutions can be implemented.

• Safety Concern

• Estimated Cost: To be determined per each capacitor bank repair

EGSI-TX Capacitor BankReliability Improvement Plan

(cont’d)

2003+

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Neches Station Reliability Improvement Plan• Neches substation was constructed in conjunction with Neches Power

Plant in 1926-27. Most of the station’s existing equipment operating today pre-dates the 1960's. There are 12 breakers over 47 years old still in service. Many of the switches , potential transformers, all of the insulators and other related equipment are also all over 40 years old. There is also environmental concern over old PT’s and bushings that have never been tested for PCB content.

• At this time, Neches substation serves primarily industrial and residential load. The control house for Neches is inside the Neches station generation station. Demolition of the retired generating facility has already begun.

2004+

• In 2001, a new control house was proposed to be built at a an estimated cost of $3.25 million. It was later determined that the option to build a new control house was not a permanent, cost-effective solution.

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Neches Station Reliability Improvement Plan (cont’d)

• Recommended solution: Reconfigure Neches substation:– Phase I: Move load off of the 69 kV system at the existing Neches station. {IN PROGRESS}

– Phase II: Acquire CCN for new 138 kV transmission line Carroll St-Viway

– Phase III:Move existing Entergy load off of the 34.5 kV system at the existing Neches station.

– Phase IV: Construct new 138 kV Neches bus on adjacent property and relocate 138 kV transmission lines.

• Tie 138kV Line 457 (Neches-Carroll St) with 138kV Line 172 (Sabine-Neches)

• Construct ~2 miles of 138 kV transmission line to complete Carroll St-Viway 138 kV

– Phase V: Construct new 69 kV bus and relocate 69 kV transmission lines.

– Phase VI: Relocate Vidor 69 kV load to the 230 kV system

• Estimated Cost: $6.5M

Vidor

Carroll St

Neches

ViwayExxon-Mobil

GlycolMobil#2

Houston ChemicalPennwalt

Mayhaw

2004+

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Beaumont 69 kV Reliability Improvements

Helbig 230/69 kV Substation: ReconfigureAmelia 230/69 kV Substation: Reconfigure

• The Beaumont 69 kV subsystems are separated by a normally open circuit breaker at Crockett 69 kV substation. The western portion of this subsystem is served by Amelia 230/69 kV substation and Helbig 230/69 kV substation. Both substations have a bus-tie breaker configuration.

• Contingency: Loss of the Helbig 69 kV bus or loss of the Amelia 69 kV bus due to a bus-tie breaker failure has the potential to cause cascading outages on the 69 kV subsystem that serves the Beaumont commercial and residential area.

• Interim Solution: In 2001, 69kV Line 466 (Goodyear-West End) was upgraded and the normally open breaker at Crockett 69 kV substation was closed. However, under the new operating configuration, the loss of Helbig 69 kV source may cause Line 98/190 (Nitro-S. Beaumont 69kV) to overload.

2004+

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Beaumont 69 kV Reliability Improvements Helbig 230/69 kV Substation:

ReconfigureAmelia 230/69 kV Substation: Reconfigure

(cont’d)• Recommended Solution: Reconfigure Helbig 230/69 kV substation with

additional bus-tie breaker. Reconfigure Amelia 230/69 kV substation with additional bus-tie breaker. Close the normally-open breaker at Crockett 69 kV substation.

• Estimated Cost: $4.8M

2004+

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2005 EGSI-TX Proposed Transmission Reliability Projects

69 kV Line 6(Amelia-Raywood)

Reliability Improvements(Multi-year)

230 kV Line 821(Jacinto-Porter)

(Multi-year)

Possible additional D-SMES or other devices

230 kV Line 822

(China-Porter) New Construction

(Multi-year)

EGSI-TX Capacitor BankReliability Improvements

(Multi-year)

230 kV Line 599 (Amelia-

China) Line Upgrade(Multi-year)

Porter 230/138 kV Substation (Multi-year)

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138 kV Line 449(Toledo-Newton)

Line Overload

69 kV Line 461(Dupont Beaumont-Kolbs)

Line Overload

2006-2010 EGSI-TX Transmission Reliability Target Areas

(Beaumont and Port Arthur Areas)138 kV Line 97(Rayburn-Doucette)

Line Overload

69 kV Line 427(Port Neches-Goodrich)

Line Overload

Stowell 138/69 kVAuto Overload

69 kV Line 581(Helbig-West End)

Line Overload

138 kV Line 455(Jasper-Rayburn)

Line Overload

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2006-2010 EGSI-TX Transmission Reliability Target Areas

(Western Region)138 kV Line 93

(Doucette-Corrigan Bulk)Line Overload

138 kV Line 596(Lewis Creek-Longmire)

Line Overload

138 kVPanorama/Longmire/

Dobbin/NavasotaLow Voltages Cypress

500/230kV &230/138 kV

Auto Overload

230 kV Line 599(Amelia-China) Line Overload

138 kV Line 430(Cypress-Menard)

Line Overload

138 kV Line 187(Cypress-Rye) Line Overload

138 kV Line 86(Dayton-New Caney)

Line Overload

138 kV Line 50(Dayton-New Long John)

Line Overload

138 kV Line 571(Jacinto-Tamina)

Line Overload

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2006-10 EGSI-TX Tentative Solution

230 kV Line 821(Jacinto-Firetower)

(2006-07)

New 230kV Line(Cypress-Jacinto)

(multi-year project)(2007-08)

230 kV Line 821(Porter-Lewis Creek)

(2010)

230 kV Line 524(Jacinto-Lewis Creek)

(2007-08)

230/138 kV Lewis Creek Substation

(2007-08)