American Transmission Company LLC The Energy Access Company Generation Customer Meeting May 18, 2001 ATC Headquarters Wa

1. American Transmission Company LLCThe Energy Access CompanyGeneration Customer MeetingMay 18, 2001ATC HeadquartersWaukesha, Wisconsin

2. Agenda 9:00 a.m. Welcome Jeff Rauh, Manager of Customer and Regulatory Relations 9:15 a.m. Cost Allocation Policy and Teresa Mogensen, Director of Interconnection Overview Planning 9:45 a.m. Interconnection Study Process Dave Cullum, Manager of Stability & Special Studies 11:00 a.m. Regulatory and Siting Processes Pete Holtz, Siting Project Manager Steve Leovy, Public Service Commission of Wisconsin 11:45 a.m. Lunch 12:45 p.m. Interconnection Agreement • Operations Don Morrow, Director of Operations• Engineering & Construction Ken Copp, Director Engineering, Construction and Maintenance • Legal Walt Woelfle, Vice President Legal• Finance Dan Doyle, Vice President & CFO 3:00 p.m. Transmission Service Requests Dale Burmester, Manager of Transmission Service 3:15 p.m. MISO/RTO Developments Teresa Mogensen 3:45 p.m. Wrap-Up and Closing Teresa Mogensen

3. Welcome and Introduction Jeff Rauh Manager Customer and Regulatory Relations

4. ATC Quick Facts • 7 IOUs, 7 municipals and 4 cooperatives divesting transmission assets, 50 kV and above and associated land rights, into ATC • ATC owns over 7,500 miles of transmission lines with an approximate book value of $525 million • Construction plans total $80 to $100 million per year in the next four years

5. The ATC System Footprint(Service Areas of Asset Contributors) De Pere Office Waukesha Headquarters Cottage Grove System Operating Center

6. Adams-Columbia Coop (WI) Algoma (WI) Alliant/WPL (WI)* Alliant/South Beloit (IL)* Badger Power (WI) Central Wisconsin Coop (WI) Cloverland Coop (MI) Edison Sault (MI)* Kaukauna (WI) Manitowoc (WI) Marshfield (WI) Menasha (WI) MG&E (WI)* Oconto Falls (WI) Plymouth (WI) Reedsburg (WI) Rock County Coop (WI) Sheboygan Falls (WI) Sturgeon Bay (WI) Sun Prairie (WI) Upper Peninsula Power Co (MI) Wisconsin Electric (WI & MI)* Wisconsin Rapids (WI) Wisconsin Public Power Inc. (WI)* Wisconsin Public Service (WI & MI)* ATC Contributors/Investors * Contributions closed 1/1/01. Other contributions expected to close by 6/30/01.

7. Directors • José Delgado, CEO American Transmission Company Independent Directors: • Anthony Earl, attorney and former Wisconsin governor, Milwaukee • Agustin Ramirez, CEO Husco International, Waukesha, WI • William Verrette, CEO Champion Inc., Iron Mountain, MI • Stephen Yanisch, Managing Director, Dain Rauscher Inc., Minneapolis Representative Directors: • David Porter, Wisconsin Electric • Eliot Protsch, Alliant Energy • Pat Schrickel, Wisconsin Public Service • Roy Thilly, Wisconsin Public Power Inc. • Mark Williamson, Madison Gas and Electric

8. Governance • One director, one vote • Transition to traditional stock-held corporation with owner-elected board after three years • Independent operations from Day One

9. Areas of Focus • Operate Well • Build Necessary Transmission Infrastructure • Create Transmission Service Business

10. Generation Interconnection Cost Allocation Policy Teresa Mogensen Director of Transmission Planning and Service

11. ATC Objectives • Strengthen ATC transmission network • Improve access of ATC customers to competitive energy market • Additional generation interconnections • Impacts on import capability

12. Policy • Include the costs of transmission network facilities associated with generation interconnections in the network costs of the ATC system • Subject to tests: • Network facilities • Reasonableness • Eligibility

13. Network Facilities • Facilities must carry network flow and be judged beneficial to network • Radial generation leads to network interconnection point are not included

14. Example: Interconnecting to an ATC Line Stability SUB D X SUB A SUB B relay ? Miles SUB C relay X ____ Interconnection Facilities (new facilities necessary to interconnect generation) ____ Required Upgrades (breakers, system protection and control) resulting from short circuit and stability studies ____ Subset of Required Upgrades – line addition due to stability ____ Optional Upgrades (thermal and associated upgrade) ____ Existing Facilities

15. Example: Interconnecting to an ATC Substation Line 4 Line 5 Line 3 Line 2 Line 1 ____ Interconnection Facilities (new facilities necessary to interconnect generation) ____ Required Upgrades (breakers, system protection and control) resulting from short circuit and stability studies ____ Subset of Required Upgrades – line addition due to stability ____ Optional Upgrades (thermal and associated upgrade) ____ Existing Facilities

16. Reasonableness Tests • ATC will assess factors including, but not limited to: • Distance from generator to existing ATC system • Application of general least cost planning principles • Point-to-point revenue to annual revenue requirement comparison

17. Eligibility Requirements • Financial screening of generating firm • Guarantee to cover ATC costs expended if project fails or does not proceed as planned • Executed interconnection agreement

18. Policy Subject to Change • Policy may be changed at some time in the future as generation becomes more plentiful, system configuration changes, RTO congestion management systems are implemented or other relevant conditions occur.

19. Overview of Generator Interconnection Process Teresa Mogensen Director of Transmission Planning and Service

20. Multiple Processes Leading to Licensing • Interconnection Study Process is the most visible; however, it is not the only process to consider • In order to be able to produce a regulatory filing after the formed study process is complete, there are additional associated processes to follow • Some steps can run in parallel; some must be done in a particular order

21. Multiple Processes • Planning Interconnection Studies • Detailed Design & Cost Estimating • Interconnection Agreement • Regulatory • Siting • Transmission Service

22. Planning Interconnection Studies • Determines impact of proposed new generation or modifications to existing generation on transmission system • Identifies and classifies necessary facilities • Interconnection facilities • Required system upgrades • Optional system upgrades

23. Detailed Design and Cost Estimating • Standards and Specifications • Construction Plans • Design Basis Manual for Project • Details needed for interconnection agreement and regulatory application

24. Interconnection Agreement • Formalization of relationships and responsibilities • Physical interconnection details • Construction schedules • Ongoing operations • Legal obligations and responsibilities • Financial commitments and qualifications

25. Regulatory • Application for generation requires associated application for transmission • Specific timelines and milestones • Notice and information • Public meetings • Filing steps

26. Siting • Hand-in-hand with regulatory • Constructablity assessment • Work with public to find the most acceptable routes • Public planning process • Inform and involve local officials and government representatives

27. Transmission Service • Separate process/request/queue than for Interconnection Service • Interconnection Service • Provides rights to physically interconnect to transmission system • No rights to move power • Transmission Service • “Delivery Service” • Provides rights to move power

28. Working Together • ATC wants to facilitate successful projects and relationships with our customers • Resolution of backlog is underway • Keep us involved and informed as you initiate and proceed with your project • We want to work together with you for most efficient and effective use of our mutual resources!

29. Interconnection Study Process Dave Cullum Manager of Stability and Special Studies

30. Stability & Special Studies • Current Staff: • Steve Feak, Senior Engineer, since Day 1 • Bob Krueger, Engineer, since April 30th • Future additions: • Mike Marz, Senior Engineer, May 21st • Prabhu Gnanam, Engineer, mid-June • One opening still remains

31. Contact Information: • David Cullum • Voice: (608) 877-7608 • Fax: (608) 877-7641 • Pager: (608) 681-2181 • Email: dcullum@atcllc.com • Director: Teresa Mogensen (262) 506-6860

32. Where Can I Find Information on Generator Interconnections? • Request process is posted on the OASIS • Easiest way to get to this information (including the public queue) • Go to http://www.atcllc.com/ • Click on “Interconnections” • Click on “Generator Interconnections” • Does not require special access permission

33. The “Queue” • Ordered list of all valid generator interconnection requests received by ATC • Queue order is determined by date and time ATC receives the request • Two versions of the queue: • Confidential, internal – customer’s name and exact siting location • Public – general info, posted to the OASIS

34. The Public “Queue” Queue position is determined by the date the request is received • Specifics of the request that are public: • Estimated In-Service Date • Location (State and County) • MW Size and Interconnection Voltage

35. The Public “Queue” • Study status is indicated in the last column • Studies listed as: • “Complete” = final report has been issued • “Interim Report” = a draft report has been issued on some portion of the analysis • Any customer may request a copy of these reports • Reports are written to try to preserve the identity of the customer

36. Who Must Make a Request? • Any new generation wanting to connect to ATC facilities • Any power uprate of existing generation connected to ATC facilities • Customers connecting to a distribution system should make a request to the corresponding Distribution Company

37. Making the Request“How to Get in the Queue” • Download the Generator Interconnection Request form from the OASIS • Available as a PDF or Excel file • Customer must fill in all of the information except those items listed as optional • If all information is not filled in, not a valid request • Not a request for transmission service

38. Request Form

39. Request Form Note: Shaded Boxes are posted on the OASIS

40. Submitting the Request • How can you submit the form: • Fax to phone number on the form • Delivery to address on the form • Receipt of request establishes queue position • Customer must deliver the original, signed form to address on form for the request to be valid, so • If initially faxed, the original form must be received within 10 calendar days of the fax transmittal to retain queue position • If not received within 10 calendar days, receipt of original form will establish a new queue date

41. What Will ATC Do With Request? • Add the request information to the queue • Post the revised public queue within 2 business days • Confirm receipt of original form, when received, with customer and communicate queue position • Begin preparing Study Agreement

42. Before the “Study” • Customer needs to execute a Generator Interconnection Study Agreement • Generic version of agreement is available on the OASIS • ATC will tender the agreement within 30 calendar days of the request • Customer has 15 days to execute

43. The Study Agreement • States what the deliverables are: • Identification of three types facilities related to the requested service • Interconnection Facilities – equipment needed to make the physical connection • Required System Upgrades – equipment needed to resolve stability or short circuit “problems” • Optional System Upgrades – essentially equipment required due to thermal overloads • Cost estimate for these facilities

44. The Study Agreement • States the cost estimate to perform the study and the time frame expected for completion of the study • ATC may revise the cost estimate and time frame as the study progresses • Customer may cancel study at any time • ATC may only charge actual cost of the study incurred up to completion or cancellation

45. The Study Agreement • What does the customer need to supply? • One-line of the proposed interconnection to the transmission system, including a substation diagram showing bus configuration with breaker positions • Generator machine and step-up transformer data plus exciter and governor models • Changes to this information may require a re-evaluation of the request • Customer then submits the executed agreement

46. The Study Agreement – Data • Example one-line

47. Changes to a Request • Once a request is made, certain changes will require the customer to submit a new request for interconnection: • Change in generator’s location if it results in a different connection configuration • Earlier in-service date • Significant change in generator’s output – ATC’s engineering judgment

48. The “Study” • Four types of analysis may be required: • Stability • Short circuit • Thermal • Voltage (not typically required) • Data provided is critical for the proper evaluation of interconnection request • Not a Transmission Service Request study

49. The “Study” – Step 1 – Setup • Development of ATC one-line from customer’s submittal • ATC identifiesstudy scenarios • Identification ofthe InterconnectionFacilities can begin • Equipment in black

50. The “Study” – Step 2 – Stability • Stability Analysis • Transient and Dynamic Stability Examined • The system is analyzed with the addition of: • The proposed generation • Any competing request earlier in the queue • Transmission projects with internal approval but do not require a CPCN or acquisition of significant ROW • Output of new units is delivered in the reverse of the CBM directions (75% to CE, 25% to MAPP)