Interconnection questions

SOCO filed interconnection procedures at FERC. VEPCO and CP&L have protested
SOCO's filing stating that they perform interconnection studies differently
than SOCO in this aspect:

VEPCO and CP&L state that they perform studies by modeling the transmission
system with the loads in the base case unchanged and the output of existing
and higher queued planned generators that serve load ratched down to allow
the grid to accept the full output of the new generator "at the point of
receipt."

SOCO performs the studies using the "extension cord" method -- models the
transmission system with load ratched up in an amount equal to the output of
the new generator.

While a generator customer is still not assured that it will get
"transmission" until it makes a separate OASIS request, VEPCO and CP&L state
that their method provides some "assurance" (ie, no guarantee) that the
customer would not be denied transmission later due to no ATC at the point of
receipt (generator). I think that their method might also possibly result in
higher "network" upgrades to be charged to generator.

EPMI has not protested SOCO's interconnection filing for other reasons.
However, this may be something of concern to us in these regions and others.
Let me know any concerns. I think FERC will address this issue when it
issues an order on SOCO's filing (which could be this month or several
months--most likely before summer). Thanks.