Entergy Texas, Inc.// Office of Public Utility Counsel and Public Utility Commission of Texas v. Public Utility Commission of Texas and Texas Industrial Energy Consumers// Office of Public Utility Counsel and Entergy Texas, Inc.

ACCEPTED 03-14-00735-CV 7054838 THIRD COURT OF APPEALS AUSTIN, TEXAS 9/23/2015 3:18:57 PM JEFFREY D. KYLE CLERK NO. 03-14-00735-CV FILED IN 3rd COURT OF APPEALS IN THE COURT OF APPEALS AUSTIN, TEXAS FOR THE THIRD DISTRICT OF TEXAS9/23/2015 1:00:00 PM AUSTIN, TEXAS JEFFREY D. KYLE Clerk ENTERGY TEXAS, INC. Appellants, v. PUBLIC UTILITY COMMISSION OF TEXAS Appellee. Appeal from the 353rd Judicial District Court, Travis County, Texas The Honorable John K. Dietz, Judge Presiding TEXAS INDUSTRIAL ENERGY CONSUMERS’ ORAL ARGUMENT EXHIBIT BOOK SEPTEMBER 23, 2015 Rex D. VanMiddlesworth rex.vanmiddlesworth@tklaw.com State Bar No. 20449400 Benjamin Hallmark benjamin.hallmark@tklaw.com State Bar No. 24069865 THOMPSON & KNIGHT LLP 98 San Jacinto Blvd., Suite 1900 Austin, TX 78701 Telephone: (512) 469-6100 Facsimile: (512) 469-6180 ATTORNEYS FOR APPELLEE TEXAS INDUSTRIAL ENERGY CONSUMERS INDEX ETI’s Projected Cost Increases are Based on Buying More Electricity ........................1 ETI’s Capacity Cost Projections are Based on 14 Moving Parts...................................2 CERTIFICATE OF SERVICE I certify that on the 23rd day of September, 2015, the foregoing document was filed with the Clerk of the Court, and that a true and correct copy was served on the following lead counsel for all parties listed below via e-mail: Counsel for Entergy Texas, Inc. Marnie A. McCormick Patrick J. Pearsall Duggins Wren Mann & Romero, LLP 600 Congress Ave., Ste. 1900 Austin, Texas 78701 512.744.9300 512.744.9399 (fax) mmccormick@dwmrlaw.com ppearsall@dwmrlaw.com Counsel for the Public Utility Elizabeth R. B. Sterling Commission of Texas Megan M. Neal Environmental Protection Division Office of the Attorney General P.O. Box 12548 Austin, Texas 78711-2548 512.463.2012 512.457.4616 (fax) elizabeth.sterling@texasattorneygeneral.gov Counsel for Office of Public Utility Sara J. Ferris Counsel Office of Public Utility Counsel 1701 N. Congress Ave., Ste. 9-180 P.O. Box 12397 Austin, Texas 78711-2397 512.936.7500 512.936.7520 (fax) Sara.ferris@opuc.texas.gov Counsel for State Agencies Katherine H. Farrell Assistant Attorney General Administrative Law Division Energy Rates Section Office of the Attorney General P.O. Box 12548, MC 018-12 Austin, Texas 78711-2548 512.475.4237 512.320.0167 (fax) katherine.farrell@texasattorneygeneral.gov Counsel for Cities Daniel J. Lawton The Lawton Law Firm, P.C. 12600 Hill Country Blvd., Ste. R-275 Austin, TX 78738 512.322.0019 855.298.7978 (fax) dlawton@ecpi.com /s/ Benjamin Hallmark EXHIBIT 1 ETI’s Projected Cost Increases Assume ETI Buys More Electricity Test Year vs. Rate Year Power Capacity Quantities (MW-Months) Purchase Test Year [Projected Future] Rate Year Third Party Purchases 5,884 12,834 Affiliate Purchases (both Legacy and 21,670 21,711 Other) Under MSS-4 Reserve Equalization Under MSS-1 8,309 5,262 Total 35,863 39,807 Source: AR Part I, Binder 5, Item 185 (Proposal for Decision at 99-100). Note: ETI’s future period began 30 days prior to the actual rate year in this case. EXHIBIT 2 ETI’s Capacity Cost Projections are Based on 14 Moving Parts ETI’s Projected June 2012 – May 2013 Capacity Costs Third-Party Contracts xxxxxxxx 1. ConocoPhillips-SRW xxxxxxxxxx 2. Dow Pipeline xxxxxxxxxx 3. Frontier xxxxxxxxxx 4. ETEC xxxxxxxxxx 5. Calpine xxxxxxxxxx 6. SRMPA Total Third Party Capacity Contracts 69,061,200 Affiliate Contracts xxxxxxxx 1. XXXXXXX xxxxxxxxxxx 2. XXXXXXX xxxxxxxxxxx 3. XXXXXXX xxxxxxxxxxx 4. XXXXXXX xxxxxxxxxxx 5. Perryville xxxxxxxxxxx 6. Calcasieu xxxxxxxx 7. EAI WBL Total Affiliate Capacity Contracts 188,430,917 Reserve Equalization (MSS-1) 18,317,367 Total Capacity Charges 275,809,484 Source: AR Part II, Binder 35, ETI Ex. 34A (Direct Testimony of Robert R. Cooper, Exhibit RRC-1 (CONFIDENTIAL 32)) (the confidential portions have been redacted); see also AR Part II, Binder 35, ETI Ex. 34 (Direct Testimony of Robert R. Cooper ) at 9, 21-22; AR Part I, Binder 5, Item 185 (Proposal for Decision) at 97-100; AR Part IV, Binder 43, Vol. D (Tr. at 661, 704- 705, Apr. 26, 2012); AR Part IV, Binder 43, Vol. G (Tr. at 1046, Apr. 30, 2012).