10/28/2015

1

1

Plains & Eastern Clean Line

TN Chamber of Commerce: 33rd Annual

Environment and Energy Conference

October 15, 2015

2

Clean Line’s projects connect the lowest-cost wind

resources to major demand centers

Clean Line projects

10/28/2015

2

3

Source: DOE 2014 Wind Technologies Market Report published August 2015

Wind energy prices continue to decrease, particularly

in the windiest part of the country

Levelized PPA prices by PPA execution date

2014 $/MWh

The “Interior” region consists of the 13 states where the wind resource is the strongest:

OK, KS, IA, NM, SD, NE, TX, MN, WY, CO, ND, MT, and MO.

4

The Plains & Eastern Clean Line will connect wind from the

Oklahoma Panhandle to the Mid-South and Southeast

Project interconnects with TVA 500 kV system at Shelby Substation in western Tennessee -3500 MW capacity.

The Arkansas converter station, a DOE alternative under NEPA proposed in response to scoping comments, interconnects with MISO 500 kV system at ANO/Pleasant Hill - 500 MW capacity.

Using TVA Point-to-Point transmission service, wind transmitted on the line can be delivered to other utilities, cooperatives and municipal utilities in the Southeast.

10/28/2015

3

5

Project overview map

6

Direct current transmission is the right answer to tap

distant wind resources

conducive to a merchant model

ideal for hauling power over long distances

• Converter stations are like on- and off-ramps that make it easier to

charge customers directly for service over the line

• Clean Line will sell transmission service to generators and load

serving entities

• Reliability – DC, unlike AC, allows complete control of power flow and

prevents cascading outages

• Efficiency – Over long distances, DC transfers more power with lower

line losses and with less infrastructure than comparable AC lines

• Smaller footprint – DC requires narrower right-of-way than equivalent

AC configuration, resulting in lower land use impact

HVDC is…

3000-4000 MW Capacity

Three 500 kV AC lines One ± 500kV DC bipole

10/28/2015

4

7

Endpoints determined Five miles wide Five miles wide

Five miles wide One mile wide 1000-feet wide

STUDY AREA CANDIDATE CORRIDORS CORRIDOR NETWORK

STUDY CORRIDORNETWORK OF

POTENTIAL ROUTES

APPLICANT PROPOSED

ROUTE

Clean Line engaged in a multi-staged routing process

8

Clean Line has conducted extensive outreach to

stakeholders during multi-year development process

• Over 400 stakeholders

32 Roundtable Meetings in 2012

• More than 74 businesses participated

11 Local Business Opportunity Meetings in 2012

• Approximately 1000 stakeholders

20 Open Houses in 2012-2013

• Over 500 stakeholders

30 Office Hours in 2014

• Over 7,500 landowners along proposed route, alternatives and study areas

Mailing following Draft EIS release in 2014

10/28/2015

5

9

Clean Line has engaged in regulatory processes at both

the state and federal levels

2009 2010 2011 2012 2013 2014 2015 20172016 2018 2019

Section 1222 Process

DOE issued Section

1222 RFP

CL submitted Section

1222 App

DOE & CL signed Advance Funding

& Development AgreementSection 1222

Comment Period

CL submitted

Part 2 App

DOE Record of

Decision

Oklahoma Regulatory

Arkansas Regulatory

Tennessee Regulatory

OCC grants authority to operate as an electric utility

AR PSC denied granting CCN

TRA issued CPCN

Note: future activities subject to change

10

The TRA approved the Plains & Eastern Clean Line as a

transmission-only utility in the state

10/28/2015

6

11

The Department of Energy is evaluating Clean Line’s

Section 1222 Part 2 Application

The Part 2 Application is Clean Line’s response to DOE’s request for

an update to Clean Line’s original application under Section 1222

What does the Part 2 Application include?

- Detailed description of the project and

the progress made to date

- Detailed support for how the project

meets the criteria under Section 1222

- Proposed Participation Agreement Term

Sheet with Southwestern and DOE

What’s next?

- Develop Participation Agreement

- Record of Decision

12

Final Environmental Impact Statement for Plains &

Eastern expected October 2015

What does the EIS process include?

- Comprehensive review of potential

impacts; proposed route and

alternatives analyzed

- Department of Energy held public

meetings in January and February

and 120 day comment period

- Three-year effort, $15 million cost

What’s next?

- Final EIS expected October 2015

10/28/2015

7

13

Plains & Eastern Clean Line will result in cleaner air and

better conservation of water resources

13 million tons

carbon dioxide

reduced in year 1

3.4 billion gallons

saved

5 thousand tons

nitrogen oxide reduced

11 thousand tons

sulfur dioxide reduced

Source: Leidos, 2015.

ENVIRONMENTAL BENEFITS

194 pounds

mercury reduced

14

28

19

17

13

10

107

103

-

20

40

60

80

100

120

KY AL GA TN SC AR NC SE States Plains &

Eastern

Plains & Eastern Clean Line can help Southeastern states

meet their carbon reduction targets

Annual CO2 emissions reductions (million tons) for Southeast states

4,000 MW of wind delivered by Plains & Eastern can make a significant impact on CO2

emissions in Southeastern states, reducing between 9 million and 23 million tons of CO2

depending on the generation source displaced.

Source: EPA Clean Power Plan1 Production cost modeling models the generation displaced by the addition of new energy. Production cost modeling of the Plains & Eastern Project

shows that 13 million tons of CO2 will be displaced based on the current supply stack.

Note: Mass-based CO2 emission reductions based on EPA calculations for 2012 and 2030 targets for each state. Plains & Eastern displacements are

calculated using the average coal and gas emission rates for Southeastern states as defined in the EPA Clean Power Plan and assumes a 60%

utilization rate of the Plains & Eastern line

9 – 23

9 mm tons = gas

23 mm tons = coal

CO2 emissions reductions required by Clean Power Plan

CO2 emissions reductions from Plains & Eastern

131

10/28/2015

8

15

Plains & Eastern Clean Line represents significant

investment and large benefits to Tennessee

Hundreds of

direct jobs during

construction, operations and maintenance

Property tax revenue

to Tipton and Shelby Counties

Access to clean,

affordable energy

$300 million investment

in transmission facilities

in western Tennessee

16

The Plains & Eastern Clean Line supports TVA’s goals

and vision

Responsibility and Economic Development

Greater reliability

Cleaner Air

Low Rates

10/28/2015

9

17

www.plainsandeasterncleanline.com

www.cleanlineenergy.com

18

Plains & Eastern Clean Line has reached an advanced

stage in the development process

ROUTING

REGULATORY APPROVALS

INTERCONNECTION

STATUS MILESTONES

Identified preferred route and alternatives in OK, AR, and TN through four-phased routing study

Approved as a public utility in Oklahoma in 2011

DOE Record of Decision expected Q4 2015

Approved as a public utility in Tennessee in 2015

SPP Criteria 3.5 (No Harm) Studies complete, Facilities Study results received Nov 2014

MISO Feasibility Study complete, entered Definitive Planning Phase Q1 2015

TVA System Impact Study complete, Facilities Study in progress

ENVIRONMENTAL DOE Published Environmental Impact Statement (EIS) Notice of Intent (NOI)

Draft Environmental Impact Statement (DEIS) released Dec 2014

Final Environmental Impact Statement (FEIS) expected Q4 2015

COMMERCIAL Received negotiated rate authority from Federal Energy Regulatory Commission (FERC) to negotiate bilaterally for 100% of line’s capacity

Conducted Open Solicitation

Negotiating precedent agreements with shippers

Generators sign PPA’s with load serving entities and enter into transmission service agreements with Plains & Eastern

CONSTRUCTION MANAGEMENT & SUPPLY CHAIN

Designated General Cable (AR), Sediver (AR) and Pelco Structural (OK) as preferred suppliers

Preliminary engineering and structure spotting complete

10/28/2015

10

19

17,000+ MWin requests for

capacity

=enough to fill Plains & Eastern 4+ times

potential customers

submitted responses

15for service to Tennessee

7For service to Arkansas

15

Transmission Service Requests indicate demand for

transmission capacity to deliver wind to market

From May through July 2014, Clean Line conducted an open solicitation for

transmission capacity on the Plains & Eastern Clean Line.