SeTrans takes major step toward FERC RTO approval

ATLANTA, June 28, 2002 — The SeTrans sponsors took an important first step on Thursday toward FERC approval of their planned RTO.

Developing the SeTrans proposal has attracted a lot of attention, in part because of the significant geographic coverage in the Southeast (from Texas east through South Carolina), and the diversity of the individual sponsors.

The SeTrans sponsors filed a petition for declaratory order concerning the proposed SeTrans RTO, specifically seeking the commission’s acceptance of the independent system administrator (ISA) governance structure and business model and the ISA selection process that the SeTrans sponsors have developed.

The ISA model, a key ingredient of the SeTrans RTO, is designed to ensure both the independence of transmission operations from market participants, and reliable and efficient operations.

The petition also seeks FERC’s determination that the draft organic documents developed by the SeTrans sponsors on market design, operations, planning, pricing, funding of transmission expansion, a transmission operating agreement (TOA), and a system administrator retention agreement (SARA) bolster the proposed governance structure and business model.

The petition for declaratory order does not seek Section 205 and 203 approval of the planned RTO.

The filing recognizes that this petition is the first of many steps that the sponsors must individually and collectively pursue, including approval by the state and local commissions (for retail jurisdictional utilities), board approvals and other appropriate regulatory authorities, before utilities can turn control over to the RTO.

The SeTrans sponsors are requesting that the commission issue an order granting the petition for declaratory order no later than mid-October. The SeTrans sponsors will then finalize the ISA selection process, which began on April 25, 2002, when a finalist group of ISA candidates was selected by the SeTrans Stakeholder Advisory Committee.

In order to assist in the selection process, a request for proposal was issued on June 17, 2002 to the ISA candidates. Following selection of the ISA, the jurisdictional SeTrans sponsors and the SeTrans ISA will make appropriate filings to establish the SeTrans ISA as the RTO.

For those interested in following the activities of the SeTrans RTO development process, please consult the SeTrans RTO Web site at http://www.setransgrid.com/ .

The list of all participating companies in SeTrans includes Cleco Power LLC, Dalton (GA) Utilities, Entergy Corporation, Georgia Transmission Corporation, JEA — Jacksonville (FL), the Municipal Electric Authority of Georgia, Sam Rayburn G & T Electric Cooperative, Inc., Santee Cooper (SC), South Mississippi Electric Power Association, Southern Company and the City of Tallahassee (FL).

Once the SeTrans RTO becomes operational, it will be one of the nation’s largest RTOs, serving an area with more than 73,000 megawatts of generation, and operating some 53,000 miles of transmission with an investment in assets in excess of $9 billion.

Cleco Power LLC is a principal subsidiary of Cleco Corporation, an investor-owned regional energy services company. Cleco Power LLC serves approximately 250,000 customers and maintains 1,200 miles of transmission lines.

Dalton Utilities is a full-service utility providing electric, water, wastewater, natural gas and telecommunications services to the city of Dalton, Ga., and portions of Whitfield, Murray, Gordon, Floyd and Catoosa counties in Georgia, including approximately $52 million in transmission assets and 352 miles of transmission lines.

Entergy Corporation (NYSE: ETR) is a global energy company with more than 23,000 megawatts of electric generating capacity in four states in the Southeast, approximately $3 billion in transmission investment and 15,000 miles of transmission lines, serving 2.6 million customers. It is one of the largest producers of electricity in the United States.

Georgia Transmission Corporation is a not-for-profit cooperative established for the sole purpose of providing transmission services to its members. GTC is owned by 39 Electric Membership Corporations in Georgia. GTC owns over $1 billion in assets, including 2,500 miles of transmission lines and over 500 substations across the state of Georgia and serves over 1.4 million end-use customers.

JEA, formerly known as Jacksonville Electric Authority, is a municipally owned electric supplier serving 360,000 customers in a four-county area of northeast Florida, including approximately $253 million in transmission assets and 714 miles of transmission lines.
Municipal Electric Authority of Georgia (MEAG Power) is a joint-action state authority providing wholesale electric generation and transmission to 49 city or county owned electric systems in Georgia. MEAG Power is one of the largest public power entities in the United States, including approximately $214 million in transmission assets and 1,224 miles of transmission lines.

Sam Rayburn G & T Electric Cooperative, Inc. (Sam Rayburn) is a non-profit wholesale electric power cooperative serving the power requirements of three distribution cooperatives and their 250,000 retail consumers in east Texas. Sam Rayburn has approximately $41 million in transmission assets and 220 miles of transmission lines.

Santee Cooper is South Carolina’s state-owned electric and water utility. The utility is the direct and indirect source of power for 1.6 million South Carolinians and maintains 4,480 miles of transmission lines and $738 million of transmission assets. Based on generation, Santee Cooper is the nation’s third largest publicly owned electric utility among state, municipal and district systems.

South Mississippi Electric Power Association is a non-profit wholesale electric power cooperative serving the power requirements of the 350,000 retail consumers of its 11-member distribution cooperatives in the state of Mississippi, including approximately $139 million in transmission assets and 1,500 miles of transmission lines.

Southern Company (NYSE: SO) is a super-regional energy company with more than 35,000 megawatts of electric generating capacity in the Southeast, approximately $4 billion in transmission investment and 26,000 miles of transmission lines, serving 4 million customers. It is one of the largest producers of electricity in the United States.

City of Tallahassee maintains more than 2,200 miles of transmission and distribution lines, serving some 98,000 homes and businesses in the Tallahassee, Fla., area, including approximately $51 million in transmission assets and 185 miles of transmission lines.

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