For Discussion and Informational Purposes Only GIA Tariff

For Discussion and Informational Purposes Only GIA Tariff Changes GIA Billing Workshop May 24, 2005

For Discussion and Informational Purposes Only Section I -- GIA Bills

For Discussion and Informational Purposes Only Non-Block Accounting (Linear) n n n Replaces block accounting used in previous tariffs Follows the minute-to-minute profile of all schedules Minimizes imbalance energy due to ramps 3

For Discussion and Informational Purposes Only Old Block Accounting Tag (240 MW Tag, 10 Minute Ramps) 4

For Discussion and Informational Purposes Only New Linear Accounting Tag (240 MW Tag, 10 Minute Ramps) 5

For Discussion and Informational Purposes Only Energy Allocation on Tag 6

For Discussion and Informational Purposes Only GIA Schedule Integration Calculation Formula ((Max-Lowest Beginning or Ending MWH) * Segment Time/60*. 5) + (Lowest Beginning or Ending MWH * Segment Time/60) 7

For Discussion and Informational Purposes Only GIA Linear Schedule Calculation 240 MWh Schedule Hour Ending 09: 00 Minute Interval 07: 55 07: 56 Linear Calculation 0 24 Integrated Calculation 0 0. 2 07: 57 48 0. 6 07: 58 07: 59 08: 00 08: 01 08: 02 08: 03 08: 04 08: 05 08: 06 72 96 120 144 168 192 216 240 240 240 216 192 168 144 120 96 72 48 24 0 1 1. 4 1. 8 2. 2 2. 6 3 3. 4 3. 8 4 4 3. 8 3. 4 3 2. 6 2. 2 1. 8 1. 4 1 0. 6 0. 2 “ “ 08: 55 08: 56 08: 57 08: 58 08: 59 09: 00 09: 01 09: 02 09: 03 09: 04 09: 05 Energy Allocation Hour Ending Example for 07: 57 ((48 -24)*1/60*. 5)+(24*1/60) = 0. 6 5. 000 HE 8 230. 000 HE 9 5. 000 HE 10 8

ABC GIA Hourly Imbalance Report 03/02/2005 (Non-QF) For Discussion & Informational Purposes Only H R 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Test Sched. in kwh 0 0 0 0 0 0 SUSD Sched. in kwh 0 0 8, 063 15, 812 73, 125 6, 250 0 0 0 3, 250 25, 000 20, 750 Comm. Sched. in kwh 0 0 0 6, 250 257, 291 673, 400 800, 000 800, 000 800, 000 800, 000 680, 425 250, 000 4, 375 Total Output in kwh 0 0 11, 500 24, 650 334, 515 679, 650 810, 000 812, 500 812, 650 830, 780 850, 600 846, 000 844, 800 839, 650 836, 480 828, 040 818, 375 813, 410 807, 350 653, 675 279, 000 21, 125 Comm. Def. @ 110% ESIC 0 0 0 0 0 0 30, 000 0 4, 000 TSUSD @ 90% AC TSUSD Excess @ 50% AC Comm Excess <=120% @ 90% AC Comm Excess >120% <=150 @ 75% AC Comm. Excess >150% @ 50% AC Notice Event System Event 0 0 8, 063 15, 812 73, 125 6, 250 0 0 0 3, 250 25, 000 20, 750 0 0 3, 437 0 0 0 0 0 0 2, 588 4, 099 0 10, 000 12, 500 12, 650 30, 780 50, 600 46, 000 44, 800 39, 650 36, 480 28, 040 18, 375 13, 410 7, 350 0 4, 000 0 0 0 0 0 0 0 0 0 0 0 0 None None Yes None None None None None None None None None None None Def. Energy Price $/kwh 0. 000000 0. 000000 0. 058500 0. 055071 0. 048152 Excess Energy Price $/kwh 0. 000000 0. 040000 0. 049927 0. 024557 0. 013784 0. 014823 0. 014258 0. 014634 0. 014756 0. 014780 0. 015173 0. 024000 0. 014701 0. 014822 0. 048509 0. 014833 0. 015239 0. 049831 0. 040000 Def. . Energy $ Charge 0. 00 0. 00 1, 930. 50 0. 00 211. 87 Comm. Excess Energy $ Credit 0. 00 (93. 17) (184. 19) 0. 00 (124. 06) (166. 76) (162. 33) (405. 40) (671. 99) (611. 90) (611. 78) (856. 44) (482. 67) (374. 05) (802. 22) (179. 02) (100. 81) 0. 00 (144. 00) 0. 00 TSUSD $ Credit 0. 00 (359. 01) (569. 23) (3, 285. 82) (138. 14) 0. 00 0. 00 (145. 76) (900. 00) (747. 00) 9

For Discussion and Informational Purposes Only Summary of Other GIA Changes Old GIA n n n Deficient Energy – charged @ 110% ESIC (Average heat rates) Comm. Excess – paid @ 90% AC Test – paid @ 90% AC of approved amount (Excess above approved not paid) Startup/Shutdown – paid @ 90% AC for all energy produced All Schedules = 15 min. liability for Deficient Energy during Notice Events Revised GIA n n n n Deficient Energy – charged @ 110% ESIC (Incremental heat rates) Comm. Excess <=120% of schedule paid @ 90% AC Comm. Excess >120% and <=150% of schedule paid @ 75% AC Comm. Excess >150% of schedule paid @ 50% AC TSUSD Energy – paid @ 90% AC of approved amount TSUSD Excess Energy – paid @ 50% AC for excess above approved Internal Schedules = 10 min. liability for Deficient Energy during Notice Events External Schedules = 15 min. liability for Deficient Energy during Notice Events AC = Avoided Cost ESIC = Entergy System Incremental Cost TSUSD = Testing, Startup and Shutdown Periods 10

For Discussion and Informational Purposes Only Section II -- GRS Bills

For Discussion and Informational Purposes Only GRS Calculation Factors n n Instantaneous Imbalance = Difference Between SCADA Output & Linear Schedule Snapshots Taken at Clock-Ten-Minute Intervals Hourly Capacity Used = Absolute maximum Instantaneous Imbalance ( + or - ) Daily Service Used = Largest Hourly Capacity Used for the day Daily Charge = Daily Service Used x GRS Tiered Rates 12

For Discussion and Informational Purposes Only Performance Classes n n n Three class structure Measures ability to stay on schedules Classes are determined monthly at month end based on Percentage component & number of Unit Trips declared 13

For Discussion and Informational Purposes Only Percentage Component Calculation n n Based on ten-minute snapshots Calculation = Tier 1 Snapshots / Applicable Snapshots Tier 1 Snapshots = instantaneous imbalances that fall within Tier 1 Applicable Snapshots = Total snapshots with schedules or generation above 10 MW MINUS any snapshots exempted by unit trips or in hours with Testing schedules only 14

For Discussion and Informational Purposes Only Unit Trip Component n n n Delivering Party has the right but NOT the obligation to declare unit trips Exempts three consecutive snapshots following a unit trip from Percentage Component of the Performance Class calculation Declare unit trips in writing with supporting documentation to the SOC no later than one business day after the end of the month in which the unit trip occurred 15

For Discussion and Informational Purposes Only Component Measures Percentage Component Unit Trip Declared Performance Class A Performance Class B Performance Class C > 90% < 90% > 70% < 70% No more than 2 No more than 4 5 or more 16

For Discussion and Informational Purposes Only GRS Tiered Rates ($ / kw-day) Comparison of Schedule vs. Output Performance Class A Rates Performance Class B Rates Performance Class C Rates Tier 1 – Lower bound – 0 MW Upper bound – the greater of 10 MW or 2. 5% of the power scheduled at the time of the Snapshot. $0. 00 Tier 2 – Lower bound – the greater of 10 MW or 2. 5% of the power scheduled at the time of the Snapshot. Upper bound – the greater of 25 MW or 20% of the power scheduled at the time of the Snapshot. $0. 008 $0. 021 $0. 041 Tier 3 Lower bound – the greater of 25 MW or 20% of the power scheduled at the time of the Snapshot. Upper bound – the greater of 40 MW or 40% of the power scheduled at the time of the snapshot. $0. 016 $0. 041 $0. 082 Tier 4 Lower bound – the greater of 40 MW or 40% of the power scheduled at the time of the Snapshot. Upper bound – none $0. 058 $0. 074 $0. 115 17

For Discussion and Informational Purposes Only ABC GRS 10 Minute Snapshot Report Snapshot Date/Time GRS Exemp -tion Type Unit Trip Count Test Schedule KW SUSD Schedule KW Comm. Schedule KW Total Output KW GRS Difference KW Greater of 2. 5% of Sched. or 10 MW 0 0 0 0 0 5, 500 11, 500 18, 000 29, 500 5, 000 0 87, 500 237, 580 150, 000 0 0 0 150, 000 300, 000 250, 000 275, 000 800, 000 800, 000 800, 000 5, 500 11, 500 18, 000 29, 500 155, 000 300, 000 250, 000 337, 500 487, 580 425, 000 800, 000 800, 000 800, 000 0 13, 810 19, 561 257, 070 332, 491 356, 923 368, 608 438, 315 502, 964 475, 458 788, 206 783, 956 779, 707 778, 645 776, 521 804, 139 795, 641 889, 121 915, 678 (5, 500) 2, 310 (1, 439) (61) 102, 070 32, 491 106, 923 118, 608 100, 815 (15, 384) (50, 042) 11, 794 16, 044 20, 293 21, 355 23, 479 (4, 139) 4, 359 (89, 121) (115, 678) 10, 000 10, 000 10, 000 12, 189 10, 625 20, 000 20, 000 20, 000 Tier 1 Snapshot Applicable GRS Snapshot GRS Daily KW Value Set Yes Yes No No Yes Yes No No Yes Yes Yes Yes Yes No No Yes No No No 03/02/2005 04: 30 04: 40 04: 50 05: 00 06: 10 06: 20 06: 30 06: 40 06: 50 07: 00 07: 10 07: 20 07: 30 07: 40 07: 50 08: 00 08: 10 08: 20 08: 30 18

For Discussion and Informational Purposes Only ABC GRS 10 Minute Snapshot Report (cont. ) ABC – Performance Class Calculations Number of Snapshots in Tier 1: Number of Applicable Snapshots: Percentage Component: Unit Trips Performance Class 8 20 40% 0 C 19

ABC GRS Daily Charge Report (Non-QF) For Discussion & Informational Purposes Only Account: ABC Performance Class: C Snapshot Datetime Unit Trip Exemption Test Schedule KW SUSD Schedule KW Comm. Schedule KW Total Output KW GRS Imbalance KW 0 0 0 250, 000 368, 608 118, 608 GRS Tier Allocation GRS Tier (1, 2, 3, 4) GRS Tier Price GRS Daily $ Charge 1 2 3 4 0. 000 0. 041 0. 082 0. 115 0. 00 1, 640. 00 4, 100. 00 2, 139. 92 $ 7, 879. 92 03/02/2005 06: 30 10, 000 40, 000 50, 000 18, 608 118, 608 20

For Discussion and Informational Purposes Only GRS Statistics for March 2005 charges for all generators: 212 K Generators in Performance Class A: Generators in Performance Class B: Generators in Performance Class C: 5 2 2 21

For Discussion and Informational Purposes Only Section III -- Bill Comparisons n n Bill with GRS charges and no GIA charges. Explanation: GRS imbalance based on a 10 min snapshot. GIA imbalance based on an integrated hour. Bill without GRS charges but with GIA charges / credits. Explanation: All the GRS imbalance falls within Tier 1 which has 00. 00 rate (no charge). All GIA imbalances are subject to imbalance charge or credit. 22

AAA GRS Daily Charge Report (QF) For Discussion & Informational Purposes Only Account: AAA Performance Class: B Snapshot Datetime Unit Trip Exemption Test Schedule KW SUSD Schedule KW Comm. Schedule KW Total Output KW GRS Imbalance KW 0 0 0 50, 000 38, 125 (11, 875) GRS Tier Allocation GRS Tier (1, 2, 3, 4) GRS Tier Price 1 2 0. 000 0. 021 GRS Daily $ Charge 03/20/2005 19: 30 10, 000 1, 875 11, 875 0. 00 39. 37 $ 39. 37 23

For Discussion and Informational Purposes Only AAA GIA Hourly Imbalance Report 03/20/2005 (QF) Test Sched. in kwh SUSD Sched. in kwh HR 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 0 0 0 0 0 0 0 0 0 0 0 0 TOTAL 0 Comm. Sched. in kwh 0 0 0 0 437 20, 563 21, 000 21, 000 20, 979 20, 021 20, 000 50, 000 21, 333 417 0 0 Total Output in kwh 76, 788 69, 986 65, 536 60, 406 59, 403 63, 010 66, 400 68, 555 68, 111 68, 663 61, 139 57, 057 56, 150 51, 206 51, 445 60, 006 65, 071 41, 154 48, 350 51, 644 45, 750 42, 550 44, 968 41, 066 Comm. Def. @ 110% ESIC TSUSD @ 90% AC 0 0 0 0 0 0 0 0 0 0 0 0 0 Comm Excess <=120% @ 90% AC Comm Excess >120% <=150 @ 75% AC 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 TSUSD Excess @ 50% AC Comm. Excess >150% @ 50% AC Notice Event System Event None None None None None None None None None None None None Def. Energy Price $/kwh Excess Energy Price $/kwh 0. 000000 0. 000000 0. 000000 0. 000000 Def. . Energy $ Charge Comm. Excess Energy $ Credit TSUSD $ Credit 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 $0. 00 24

AAA GRS Daily Charge Report (QF) For Discussion and Informational Purposes Only Account: AAA Performance Class: B Snapshot Datetime Unit Trip Exemption Test Schedule KW SUSD Schedule KW Comm. Schedule KW Total Output KW GRS Imbalance KW GRS Tier Allocation 0 0 0 420, 000 413, 824 (6, 176) 6, 176 GRS Tier (1, 2, 3, 4) GRS Tier Price 1 0. 000 GRS Daily $ Charge 03/28/2005 15: 50 $ 0. 00 25

For Discussion and Informational Purposes Only AAA GIA Hourly Imbalance Report 03/28/2005 (QF) Test Sched. in kwh SUSD Sched. in kwh HR 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 0 0 0 0 0 0 0 0 0 0 0 0 TOTAL 0 Comm. Sched. in kwh 327, 833 350, 000 350, 000 420, 000 420, 000 420, 000 420, 000 350, 000 325. 208 Total Output in kwh 329, 500 352, 625 355, 750 354, 560 352, 480 360, 080 421, 600 421, 650 422, 480 422, 560 422, 585 422, 605 422, 610 422, 480 418, 560 420, 040 420, 980 421, 205 421, 500 421, 650 362, 500 341, 580 Comm. Def. @ 110% ESIC TSUSD @ 90% AC 0 0 0 0 1, 440 0 0 0 0 0 0 0 0 1, 440 0 Comm Excess <=120% @ 90% AC Comm Excess >120% <=150 @ 75% AC 0 0 0 0 0 0 0 0 0 0 0 0 0 TSUS D Excess @ 50% AC Comm. Excess >150% @ 50% AC Notice Event System Event 0 0 0 0 0 0 0 0 0 0 0 0 None None None None None None None None None None None None 0 0 Def. Energy Price $/kwh Excess Energy Price $/kwh 0. 000000 0. 057540 0. 000000 0. 000000 0. 000000 Def. . Energy $ Charge Comm. Excess Energy $ Credit TSUSD $ Credit 0. 00 0. 00 91. 15 0. 00 0. 00 0. 00 0. 00 0. 00 $91. 15 $0. 00 26

For Discussion and Informational Purposes Only Questions? 27