NEPOOL Participants Committee Meeting

Boston, MA

January 7, 2005

Stephen G. WhitleySenior Vice President & COO

2

• System Operations• Market Operations• Status of Non-PTF Ties• Winter 2004/2005 Outlook• Back-Up Detail

Agenda

3

System Operations

4

Operations Highlights• Boston & Hartford Weather Pattern:

– Temperatures were higher during December with below normal precipitation.• Peak load of 22,524 MW at 18:00 hours on December 20, 2004.• During December:

– OP #4• Actions 1 & 6 implemented system wide

– NPCC Shared Activation of Reserve Events:• December 16 NE – Granite Ridge @617 Mw• December 21 NY – Bowline #2 @567 Mw

– MS #2• December 20 – Capacity

– Resources Postured• December 20

5

Market Operations

6

Day–Ahead & Real-Time Prices, ISO Hub:

Note: Natural Gas source is Algonquin Citygates Price.

Daily Natural Gas Price $7.15/MMBtu

OP.4 Declared

Daily Natural Gas Price $7.38/MMBtu

MS2 Declared

7

Day-Ahead–LMP Average by Zone & Hub:

LMP Marginal Loss Component Congestion Component

December 1, 2004 to December 29, 2004 : Day-Ahead LMPs

(-8.92%)

(-3.22%)

(-0.44%)

(-0.03%)

(-1.55%)

(-2.24%)

(0.09%)

(3.04%)

8

Real-Time-LMP Average by Zone & Hub:

97.4%

LMP Marginal Loss Component Congestion Component

(-7.39%)

(-2.50%)

(-0.31%)

(-0.27%)

(-1.57%)

(-2.34%)

(-0.02%)

(-1.18%)

December 1, 2004 to December 29, 2004 : Real-Time LMPs

9

Day - Ahead Market vs. Forecast Load

Day Ahead Market Demand Cleared vs. Forecast Load (%)

99102102

020406080

100120

October November December

December data represents December 1-December 29

Day Ahead Market Generation Cleared vs. Forecast Load (%)

909391

0

20

40

60

80

100

October November December

December data represents December 1-December 29

10

Day - Ahead LMPDAM LMP November 24, 2004 Through December 29, 2004

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

11/2

4/20

04 0

1

11/2

6/20

04 0

1

11/2

8/20

04 0

1

11/3

0/20

04 0

1

12/0

2/20

04 0

1

12/0

4/20

04 0

1

12/0

6/20

04 0

1

12/0

8/20

04 0

1

12/1

0/20

04 0

1

12/1

2/20

04 0

1

12/1

4/20

04 0

1

12/1

6/20

04 0

1

12/1

8/20

04 0

1

12/2

0/20

04 0

1

12/2

2/20

04 0

1

12/2

4/20

04 0

1

12/2

6/20

04 0

1

12/2

8/20

04 0

1

Day

$/M

Wh

INTERNAL_HUB CONNECTICUT MAINE NEMASSBOST NEWHAMPSHIRE

RHODEISLAND SEMASS VERMONT WCMASS

BSTN interface constraint binding during peak load period due to

load and generation pattern.

11

Real - Time LMPReal-Time LMP November 24, 2004 Through December 29, 2004

0

20

40

60

80

100

120

140

160

180

11/2

4/20

04 0

1

11/2

6/20

04 0

1

11/2

8/20

04 0

1

11/3

0/20

04 0

1

12/0

2/20

04 0

1

12/0

4/20

04 0

1

12/0

6/20

04 0

1

12/0

8/20

04 0

1

12/1

0/20

04 0

1

12/1

2/20

04 0

1

12/1

4/20

04 0

1

12/1

6/20

04 0

1

12/1

8/20

04 0

1

12/2

0/20

04 0

1

12/2

2/20

04 0

1

12/2

4/20

04 0

1

12/2

6/20

04 0

1

12/2

8/20

04 0

1

Day

$/M

Wh

INTERNAL_HUB CONNECTICUT MAINE NEMASSBOST NEWHAMPSHIRERHODEISLAND SEMASS VERMONT WCMASS

Minimum Generation Emergency

OP4 Conditions due to deficiencies in Operating Reserves. Zonal LMPs >

$600.00 for HE 17.

Declared MLCC-2 due to capacity deficiences in Operating Reserves.

Zonal LMPs >300.00 for HE 19.

NRST Interface and 1480_Trumbull_1730-1_A constraints

binding with 1710 line OOS.

NRST Interface constraint binding with 1710 line OOS.

Peak load period for the day.

12

Settlement Data – Real Time & Balancing Market

Minimum % of Real-Time Load Fully Hedged Through ISO-NE Settlement System

6 8 %

7 0 %

7 2 %

7 5 % 7 5 %7 3 %

7 1% 7 1%7 7 % 7 3 %

7 2 %7 1% 7 1% 7 0 %

7 1% 7 2 %7 0 %7 0 %

7 4 %

50%

55%

60%

65%

70%

75%

80%

Month

% R

T L

oad

Fu

lly

Hed

ged

Note: Partial Month Data: December 1 - 22, 2004

13

RMR and Economic Operating Reserve Payments

RMR & Economic Operating Reserve Payments

$0

$2,500,000

$5,000,000

$7,500,000

$10,000,000

$12,500,000

$15,000,000

$17,500,000

$20,000,000

Jan-

04

Feb-04

Mar-04

Apr-04

May

-04

Jun-

04Ju

l-04

Aug-04

Sep-

04

Oct-04

Nov

-04

Dec-04

DA RMR DA Economic RT RMR RT EconomicNote: Sept.-October subject to 90-Day Resettlement

December Data values through the 22nd.

14

Monthly VAR Support and SCR PaymentsMonthly VAR Support and SCR Payments

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

Dec-0

3*

Jan-

04*

Feb-0

4*

Mar

-04*

Apr-0

4*

May

-04*

Jun-

04*

Jul-0

4*

Aug-0

4*

Sep-0

4

Oct-04

Nov-0

4

Dec-0

4

DA VAR RT VAR RT SCR * - denotes 90-Day Resettlement values reflectedDecember values through the 22nd.

15

Status of Non-PTF Ties(Discussion Lead by Steve

Whitley)

16

Winter Outlook

17

Winter 2005 Capacity Assessment 50/50 Forecast

January through March ’05Conditions for Week of Lowest Operable Capacity Margin

Week beginning January 15th

MWProjected Peak (50/50) 22,370 Operating Reserve Required 1,700Total Operable Cap. Required 24,070Projected Capacity 32,3801

Assumed Outages 6,500Total Capacity 25,880Operable Capacity Margin 1,8101 2,950 MW of installed capacity has delisted. Only 950 MW has been deducted from the total reflecting

what has been sold outside of New England.

18

Winter 2005 Capacity

Assessment

Week Beginning, Saturday

Year Month Day

Installed Seasonal Claimed

Capability (SCC)

[Note 1]

Interchange (NYPP, NB,

HQ, Highgate,

Block Load)

No

te

New Generation

[Note 2]

De-listed ICAP sold [Note 3]

Net Capacity [Note 4]

Peak Load Exposure [Note 5]

Operating Reserve

Requirement [Note 6]

Total Known Maintenance

Allowance for Unplanned Outages [Note 7]

Generation at Risk Due

to Gas Supply

Total Capacity

Operable Capacity

Margin (+/-)

Extent of OP 4 Actions That May be Necessary (OP 4 Actions up to and

including) [Note 8]

(MW) (MW) (MW) (MW) (MW) (MW) (MW) (MW) (MW) (MW) (MW) (MW) 2005 January 8 33,066 260 0 950 32,380 22,370 1,700 700 2,800 2,800 26,080 2,010

15 33,066 260 0 950 32,380 22,370 1,700 900 2,800 2,800 25,880 1,810 22 33,066 260 0 950 32,380 22,370 1,700 600 2,800 2,800 26,180 2,110 29 33,068 260 0 950 32,380 22,146 1,700 700 3,100 2,250 26,330 2,480

2005 February 5 33,068 450 0 950 32,570 21,878 1,700 1,000 3,100 2,250 26,220 2,640 12 33,068 450 0 950 32,570 21,849 1,700 1,100 3,100 2,250 26,120 2,570 19 33,068 450 0 950 32,570 21,585 1,700 1,800 3,100 0 27,670 4,390 26 33,073 450 0 950 32,570 20,592 1,700 1,900 2,200 0 28,470 6,180

2005 March 5 33,073 450 0 950 32,570 20,240 1,700 3,200 2,200 0 27,170 5,230 12 33,073 450 0 950 32,570 20,044 1,700 3,300 2,200 0 27,070 5,330 19 33,073 450 0 950 32,570 19,677 1,700 3,600 2,200 0 26,770 5,390 26 33,073 450 0 950 32,570 19,108 1,700 3,300 2,200 0 27,070 6,260

Notes: Please note that the information contained within the Capacity Analysis is a deterministic projection of system conditions which could materialize during any given week of the year.1. Installed Capability per January 1, 2005 SCC Report, less recent retirements or deactivations that have not yet been reflected in the SCC Report. The Operable Capability does not reflect possible

transmission constraints within the NEPOOL system.2. New Generation information includes 1) generation recently commercial but not yet reflected in the NEPOOL SCC Report totals used in the Installed Capability Column, and 2) future generation

as assumed by ISO-NE Planning Department. This value is rounded to the nearest hundred.3. For the month of January, a total of 2,950 MW have been delisted with 950 MW sold outside New England. It is assumed that 950 MW will be delisted through March. 4. Net Capacity = (SCC) + (Interchange) + (New Generation) - (De-listed ICAP Resources). In this equation, values for SCC, Interchange and De-listed ICAP sold are rounded to the nearest ten

and New Generation is rounded to the nearest hundred.5. Peak Load Exposure per the April 2004 CELT Report. 6. Operating Reserve Requirement based on the first contingency (Generator at 1160 MW) plus 1/2 the second contingency (Generator at 1145 MW).7. Allowance for Unplanned Outages includes forced outages and maintenance outages scheduled less than 14 days in advance.8. Relief from certain OP 4 Actions varies, depending on system conditions. 9. Highgate maintenance scheduled.

This analysis is a tabulation of weekly assessments shown in one single table. The information shows the operable capacity situation under assumed conditions for each week. It is not expected that the system peak will occur every week during June, July and August.

ISO-NE 2005 OPERABLE CAPACITY ANALYSISJanuary 4, 2005 - WITH KNOWN EXTERNAL CONTRACTS - 50/50 FORECAST

19

Winter 2005 Capacity

AssessmentNEPOOL Operating Capacity Margins WITH KNOWN EXTERNAL TRANSACTIONS - 50/50 FORECAST

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

8-J

an

15

-Ja

n

22

-Ja

n

29

-Ja

n

5-F

eb

12

-Fe

b

19

-Fe

b

26

-Fe

b

5-M

ar

12

-Ma

r

19

-Ma

r

26

-Ma

r

January - March 2005, W/B Saturday

Ope

ratin

g C

apac

ity M

argi

n (M

W)

20

Winter 2005 Capacity Assessment 90/10 Forecast January through March ’05Conditions for Week of Lowest Operable Capacity Margin

Weeks beginning January 8th – 22nd

MWProjected Peak (90/10) 23,255 Operating Reserve Required 1,700Total Operable Cap. Required 24,955Projected Capacity 32,3801

Assumed Outages 7,000Total Capacity 25,380Operable Capacity Margin 425Assumed outages are based on Jan. 2004 Cold Snap experience (9,000 MW of total outage) adjusted for 2,000 MW of capacity expected to be

available as result of preliminary Cold Snap Initiatives.1 2,950 MW of installed capacity has delisted. Only 950 MW has been deducted from the total reflecting what has been sold outside of New England.

21

Winter 2005 Capacity

Assessment

Week Beginning, Saturday

Year Month Day

Installed Seasonal Claimed

Capability (SCC)

[Note 1]

Interchange (NYPP, NB,

HQ, Highgate,

Block Load)

No

te

New Generation

[Note 2]

De-listed ICAP sold [Note 3]

Net Capacity [Note 4]

Peak Load Exposure [Note 5]

Operating Reserve

Requirement [Note 6]

Total Known Maintenance

Allowance for

Unplanned Outages [Note 7]

Generation at Risk Due to Gas Supply

Total Capacity

Operable Capacity

Margin (+/-)

Extent of OP 4 Actions That May be Necessary (OP 4 Actions up to and

including) [Note 8]

(MW) (MW) (MW) (MW) (MW) (MW) (MW) (MW) (MW) (MW) (MW) (MW) 2005 January 8 33,066 260 0 950 32,380 23,255 1,700 700 2,800 3,500 25,380 430

15 33,066 260 0 950 32,380 23,255 1,700 900 2,800 3,300 25,380 430 22 33,066 260 0 950 32,380 23,255 1,700 600 2,800 3,600 25,380 430 29 33,068 260 0 950 32,380 23,025 1,700 700 3,100 3,200 25,380 660

2005 February 5 33,068 450 0 950 32,570 22,745 1,700 1,000 3,100 2,900 25,570 1,130 12 33,068 450 0 950 32,570 22,715 1,700 1,100 3,100 2,800 25,570 1,160 19 33,068 450 0 950 32,570 22,441 1,700 1,800 3,100 0 27,670 3,530 26 33,073 450 0 950 32,570 21,408 1,700 1,900 2,200 0 28,470 5,360

2005 March 5 33,073 450 0 950 32,570 21,043 1,700 3,200 2,200 0 27,170 4,430 12 33,073 450 0 950 32,570 20,838 1,700 3,300 2,200 0 27,070 4,530 19 33,073 450 0 950 32,570 20,457 1,700 3,600 2,200 0 26,770 4,610 26 33,073 450 0 950 32,570 19,866 1,700 3,300 2,200 0 27,070 5,500

Notes: Please note that the information contained within the Capacity Analysis is a deterministic projection of system conditions which could materialize during any given week of the year.1. Installed Capability per January 1, 2005 SCC Report, less recent retirements or deactivations that have not yet been reflected in the SCC Report. The Operable Capability does not reflect possible

transmission constraints within the NEPOOL system.2. New Generation information includes 1) generation recently commercial but not yet reflected in the NEPOOL SCC Report totals used in the Installed Capability Column, and 2) future generation

as assumed by ISO-NE Planning Department. This value is rounded to the nearest hundred.3. For the month of January, a total of 2,950 MW have been delisted with 950 MW sold outside New England. It is assumed that 950 MW will be delisted through March. 4. Net Capacity = (SCC) + (Interchange) + (New Generation) - (De-listed ICAP Resources). In this equation, values for SCC, Interchange and De-listed ICAP sold are rounded to the nearest ten

and New Generation is rounded to the nearest hundred.5. Peak Load Exposure per the April 2004 CELT Report. 6. Operating Reserve Requirement based on the first contingency (Generator at 1160 MW) plus 1/2 the second contingency (Generator at 1145 MW).7. Allowance for Unplanned Outages includes forced outages and maintenance outages scheduled less than 14 days in advance.8. Relief from certain OP 4 Actions varies, depending on system conditions. 9. Highgate maintenance scheduled.

This analysis is a tabulation of weekly assessments shown in one single table. The information shows the operable capacity situation under assumed conditions for each week. It is not expected that the system peak will occur every week during June, July and August.

ISO-NE 2005 OPERABLE CAPACITY ANALYSISJanuary 4, 2005 - WITH KNOWN EXTERNAL CONTRACTS - 90/10 FORECAST

22

Winter 2005 Capacity

AssessmentNEPOOL Operating Capacity Margins WITH KNOWN EXTERNAL TRANSACTIONS - 90/10 FORECAST

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

8-J

an

15

-Ja

n

22

-Ja

n

29

-Ja

n

5-F

eb

12

-Fe

b

19

-Fe

b

26

-Fe

b

5-M

ar

12

-Ma

r

19

-Ma

r

26

-Ma

r

January - March 2005, W/B Saturday

Ope

ratin

g C

apac

ity M

argi

n (M

W)

23

Back-Up Detail

24

Demand Response

25

Demand Response(as of January 3, 2005)

ReadyTo Respond: Approved:Zone Assets Total MW Assets Total MW

CT 200 148.2 24 26.5ME 8 104.5 0 0.0NEMA 114 44.9 1 24.0NH 8 18.5 0 0.0RI 11 2.8 0 0.0SEMA 82 8.9 0 0.0VT 17 13.5 0 0.0WCMA 94 27.0 0 0.0

Total 534 368.2 25 50.5

26

Demand Response, Con’t. (as of January 3, 2005)

* SWCT assets are included in CT values and are not included in Total

534 Assets 368.2 MW 25 Assets 50.5 MWZone Assets RT Price RT 30-Min RT 2-Hour Profiled Assets RT Price RT 30-Min RT 2-Hour Profiled

CT 200 31.8 116.0 0.4 0.0 24 9.0 17.5 0.0 0.0

SWCT* 147 5.2 90.7 0.4 0.0 22 0.0 17.5 0.0 0.0

ME 8 27.5 0.0 1.0 76.0 0 0.0 0.0 0.0 0.0

NEMA 114 39.0 3.0 1.5 1.4 1 0.0 24.0 0.0 0.0

NH 8 18.1 0.4 0.0 0.0 0 0.0 0.0 0.0 0.0

RI 11 2.8 0.0 0.0 0.0 0 0.0 0.0 0.0 0.0

SEMA 82 8.4 0.5 0.0 0.0 0 0.0 0.0 0.0 0.0

VT 17 7.5 0.1 0.0 5.9 0 0.0 0.0 0.0 0.0

WCMA 94 17.9 0.1 9.0 0.0 0 0.0 0.0 0.0 0.0

Total 534 152.9 120.2 12.0 83.2 25.0 9.0 41.5 0.0 0.0

Ready To Respond: Approved:

27

New Generation

28

New Generation Update

• No new resources were added in December.

• No additional capacity expected on line by the end of the year.

• Status of Generation Projects as of January 3, 2005:

No. MWIn Construction 1 8.4with 18.4 approval

Not in Construction 5 1,271with 18.4 Approval

Nuclear Uprates 4 265with 18.4 approval

29

RTEP

30

RTEP Update

• RTEP05 – Draft load forecast under review– Scope of work under development– RTO and related transitional issues to

the Regional System Expansion Plan (RSEP) have been identified

– Working towards better coordination of TEAC/Planning Advisory Committee (PAC) meetings with the RC

31

Inter-ISO Update

• Northeastern ISO/RTO Planning Coordination Protocol – Signed by PJM, NYISO, and ISO-NE– Initial joint Northeast Consolidated Plan (NCP)

under review by Joint Inter-ISO/RTO Planning Committee (JIPC)

– Developed project plan– Next Steps

• Issue NCP for management review• Develop joint website• Update timelines of planning activities

• NERC Blackout issues being addressed through NPCC

32

RTEP Project Stage Descriptions

Stage Description

1Planning and Preparation of Project Configuration

2Pre-construction (e.g., material ordering, project scheduling)

3 Construction in Progress4 Completed

33

NSTAR 345 kV Transmission Reliability ProjectStatus as of 1/4/05Project Benefit: Improves New England reliability by

addressing Boston Area concerns and increasing Boston Import Limit from 3,600 MW to approximately 4,500 MW.

UpgradeExpectedIn-service

OriginalIn-service

Present Stage

Stoughton 345 kV Substation Jun-06 Jun-06 2Stoughton - Hyde Park 345 kV Jun-06 Jun-06 2Stoughton - K Street 345 kV #1 Jun-06 Jun-06 2

Stoughton - K Street 345 kV #2 Dec-07 Dec-07

Notes:- Siting review completed. EFSB/DTE approval on 12/23/04.

- Detailed engineering in progress.

Phase 2

Phase 1

- Received RC recommendation for 18.4 (conditional) and 12C approval 7-29-04.

2

- Conditions removed at 12/13/04 RC.

34

North Shore UpgradesStatus as of 1/4/05

Project Benefit: Maintains system reliability for the North Shore area independent of Salem Harbor generation.

UpgradeExpectedIn-service

OriginalIn-service

Present Stage

Add 3 transformers at Ward Hill Jun-06 Jun-06 1Reconductor several 115kV lines Jun-06 Jun-06 1Salem Harbor capacitor banks Jun-06 Jun-06 1

New Wakefield Junction SS Jun-08 1

Notes:- MA DTE review in progress; ruling due early 2005

Wakefield Junction

Ward Hill Upgrades

- 18.4 application for Ward Hill upgrades expected early 2005

Jun-08

35

SWCT 345 kV Transmission Reliability ProjectStatus as of 1/4/05Project Benefit: Improves New England reliability by

addressing SWCT concerns. Increases SWCT Import Limit from 2,000 MW to approximately 3,400 MW.

UpgradeExpectedIn-service

OriginalIn-service

Present Stage

Norwalk 345 kV Substation Nov-05 Dec-04 2

Plumtree 345 kV Substation Nov-05 Dec-04 2

Norwalk - Plumtree 345 kV Nov-05 Dec-04 2

Associated 115 kV Line Work Nov-05 Dec-04 2

Beseck 345 kV Substation Dec-07 Jan-06 1

East Devon 345 kV Substation Dec-07 Jan-06 1

Singer 345 kV Substation Dec-07 Jan-06 1

Beseck - East Devon 345 kV Dec-07 Jan-06 1

East Devon - Singer 345 kV Dec-07 Jan-06 1

Singer - Norwalk 345 kV Dec-07 Jan-06 1

Associated 115 kV Line Work Dec-07 Jan-06 1

Notes Phase 1:- Siting review complete; appeal denied.

- Detailed engineering in progress.

Notes Phase 2:

- Siting review in progress, ruling due April 2005.- Final ROC report complete; recommended proceeding with 24 miles of UG XLPE cable.

Phase 2

Phase 1

Note:- “Expected In-service” dates differ from those listed on the NU website (Phase I is listed as May-06 and Phase II is listed as May-09); however, no official notice has been given to ISO-NE as to the slip in timing. NU’s pre-filed testimony of 12/28/04 speaks to the Phase II 2009 date.

36

Northeast Reliability Interconnect ProjectStatus as of 1/4/05

Project Benefit: Improves New England reliability by improving inter-area transfer capability and eliminating various protection/stability concerns.

UpgradeExpectedIn-service

OriginalIn-service

Present Stage

Orrington, ME - Pt. Lepreau, NB 345 kV Dec-07 Dec-08 1

Notes:- Siting approved for Canadian section of line.

- DOE & Maine DEP review processes (approx. 1 year) have started.

37

NWVT 345 kV Transmission Reliability ProjectStatus as of 1/4/05

Project Benefit: Improves New England reliability by addressing NWVT concerns, bringing another source into the Burlington area.

UpgradeExpectedIn-service

OriginalIn-service

Present Stage

New Haven 345 kV Substation May-06 Oct-05 1West Rutland - New Haven 345 kV May-06 Nov-05 1New Haven - Queen City 115 kV Mar-07 Oct-06 1Granite STATCOM/Upgrades Oct-07 Oct-07 1

Notes:- Siting review in progress, ruling due January 2005.

- Sandbar Phase Angle Regulator in service.

38

Southern New England Reliability ProjectStatus as of 1/4/05

Project Benefit: Improves New England reliability by increasing transfer limits of three critical interfaces, including Connecticut Import Limit

UpgradeExpectedIn-service

OriginalIn-service

Present Stage

Millbury - Sherman Rd. 345 kV Dec-08 Dec-08 1Sherman Rd. - Lake Rd. 345 kV Dec-08 Dec-08 1Lake Rd. - Card St. 345 kV Dec-08 Dec-08 1

345 kV Substation Modifications Dec-08 Dec-08 1

Notes:- Planning studies in progress; estimated completion summer 2005.- Project specifics may change; alternatives still under review.

39

Transmission Siting Update• SWCT

– Phase I• Received conditional approval from Connecticut Siting Council 2/11/04.• ISO in receipt of “preliminary” schedule 12C application.

– Phase II• ISO, NU and UI submitted the third and final Reliability and Operating

Committee (ROC) harmonics/overvoltage report on December 20. Recommendation was for 24 miles of UG XLPE cable.

• Next hearing dates are scheduled for 1/11 and 1/13. Main topic is the ROC Report; HVdc will also be discussed.

• BOSTON– New Boston 1 needed until NSTAR completes 345 kV Reliability Project from

Stoughton to Hyde Park and K Street (2006 earliest)• Received RC recommendation for 18.4 (conditional) and 12C approval on

7/29/04.• Additional analysis of harmonics/transient overvoltage completed.• Conditions removed at 12/13/04 RC Meeting.• EFSB/DTE approval on 12/23/04.

– Salem Harbor needed at least until NGRID North Shore upgrades (2006 earliest)– These units provide operating reserves for the current system as well as insurance

for delays in transmission projects.– Long-term solution is functioning Resource Adequacy market to incent generation

to locate in the most appropriate areas, with the ability to do gap RFP’s to address timing issues.

• NWVT– State hearing process continues

• Surrebuttal hearings held late September• Decision expected by January 24