ESI/SPP Seams Agreement Implementation Update

1. ESI/SPP Seams Agreement Implementation Update Transmission Planning Summit August 11, 2010

2. Introduction ESI and SPP have executed a seams agreement addressing the following areas: Coordination of the evaluation and processing of transmission and interconnection service requests Coordination and exchange of data utilized to calculate Available Flowgate Capability (“AFC”) Enhanced coordination of the entities’ transmission expansion planning processes Cost allocation Data and information that is confidential or Critical Energy Infrastructure Information (“CEII”)

3. Introduction (cont’d) An earlier, separate letter agreement addresses regional planning coordination required by FERC Order No. 890 This agreement has already been implemented between ESI and SPP This agreement is attached to the seams agreement as an exhibit (for completeness)

4. Seams Agreement Overview The seams agreement consists of: Letter Agreement with 4 attached protocols Attachment A: Protocol Governing Coordination of Enhanced Regional Planning Activities, Study Coordination Activities, and Flowgate Financial Rights (“Coordination Protocol”) Attachment B: Protocol Governing Coordination Of AFC/TFC Values (“AFC/TFC Protocol”) Attachment C: Protocol Governing Allocation Of Costs Of Upgrades (“CA Protocol”) Attachment D: Protocol Governing Data Exchange, Confidential Information And Critical Energy Infrastructure Information (“Information Protocol”)

5. Seams Agreement Overview (cont’d) Implementation of the seams agreement is addressed in each attached protocol The implementation dates for each protocol are: 08/26/2010 - Coordination Protocol 09/30/2010 - AFC/TFC Protocol 09/30/2010 - CA Protocol 08/26/2010 - Information Protocol

6. Implementation Strategy Protocol-focused Protocols with earliest implementation dates Monthly conference calls between ESI and SPP to: Assess gaps Discuss issues or concerns Assign action items Report status Monthly Reports to the APSC

7. Implementation Activities Completed Focus has been on the Coordination Protocol Gaps for all provisions have been identified Plans to close identified gaps have been developed Implementation of some, but not all, gap plans has commenced. Examples of gap plans include: Development of new or revision to existing documentation Development of new or revision to existing processes and procedures by Entergy, the ICT, and SPP Issues or concerns relating to CEII or Confidential Information are being handled in accordance with the Information Protocol

8. Next Steps Implementation activities will focus on the AFC/TFC and Cost Allocation Protocols Monthly call(s) for August will include: Assessment of gaps related to these protocols Discussion of issues or concerns with implementation or schedule for these protocols Assignment of action items to develop gap plans or close identified gaps Once implementation is completed, parties are committed to re-assessing the potential for enhanced coordination in other areas

9. Summary Implementation of the seams agreement is progressing on schedule Based on implementation dates specified in the protocols No significant issues or concerns with implementation have been raised Implementation is expected to be complete on 09/30/2010

10. Questions?

11. Contact:Jody Hollandjholland@spp.org(501) 614 - 3315English Cookecook@spp.org(501) 614 - 3555 Contact: Christina V. Bigelow cbigelo@entergy.com (504)576-2566