SUMMER RELIABILITY April 29, 2014

SUMMER RELIABILITY PRESENTATION

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PROFILEPROFILE

• 470,000 customers*

• 1,400 employees*

• 528 sq. miles territory• 144 substations

Harding Street Station & Georgetown Station - 1,252 MW**

E l V ll G ti St ti Eagle Valley Generating Station 263 MW**

Petersburg Generating Station –1,760 MW**

*approximate numbers**nameplate capacity 2

OVERVIEWOVERVIEW

• IPL’s Mission

2014 Summer • 2014 Summer Reliability

• Discussion of Industry Questionsy Q

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IPL’S MISSIONIPL S MISSION

Improving lives by providing safe, reliable, and affordable energy solutions in the communities we serve.

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SAFETY IS OUR FIRST VALUESAFETY IS OUR FIRST VALUE

Rat

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EEIMEAN

nes

s C

ase

jury

an

d I

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nj

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SERVICE RELIABILITY RANKED IN THE TOP 10% NATIONALLYTHE TOP 10% NATIONALLY

500

400

4504th

Quartile

250

300

350

3rd

100

150

2001st

Quartile

2nd

Quartile

3rd

Quartile

Top 10%

0

50

100 10%

Utility

IPL 2013

Source: Results Based on SAIDI from 2012 (most recent) IEEE Benchmarking Data (Excluding MED)

Utility

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IPL RESIDENTIAL RATES ARE THE LOWEST AMONG LARGE CITIESLOWEST AMONG LARGE CITIES

omer

000

KWH

Cus

toth

ly B

ill f

or 1

,0Re

side

ntia

l Mon

Re

Source: 2013 Residential Bill Comparison of 20 Largest U.S. Cities With Investor-Owned Utilities | 2013 KB Parrish Report

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EFFICIENCY AND RELIABILITY CONTINUE TO BE A FOCUS CONTINUE TO BE A FOCUS

Service company • Service company reduces costs and leverages best

ti f practices for many of IPL’s shared services

AES Board of Directors visit Indianapolis in October 2013 • Asset management team improves team improves performance and reduces risk

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IPL CONTINUES TO ENHANCE THE CUSTOMER EXPERIENCECUSTOMER EXPERIENCE

S i l di• Social media

• New bill design

• Outbound outage • Outbound outage restoration calls

• Web enhancements and b d d b lbroadened mobile functionality

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CUSTOMERS AWARD IPL WITH HIGH RANKINGSWITH HIGH RANKINGS

R id ti l C tResidential Customers:

Metrix Matrix research shows 90% satisfaction in 2013

Business Customers:

J.D. Power 2014 Electric Utility Business Customer Satisfaction Study: IPL ranks highest among y g gMidwest Midsize Brands for the second consecutive year*

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WE INVEST IN OUR COMMUNITIESWE INVEST IN OUR COMMUNITIES

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IPL SUPPORTS EMERGING TECHNOLOGIESTECHNOLOGIES

1st in the Midwest in solar BlueIndy Electric Vehicle 1st in the Midwest in solar capacity*

BlueIndy Electric Vehicle Car Sharing Program

** Approximately Approximately 100 MW of solar contracts, if completed. Approved by IURC under Rate REP** Approximately Approximately 100 MW of solar contracts, if completed. Approved by IURC under Rate REP

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2014 SUMMER RELIABILITY

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IPL IS PREPARED TO MEET THE RELIABILITY NEEDS OF CUSTOMERSRELIABILITY NEEDS OF CUSTOMERS

3,200Obligation

132 3 000

3,100

g

Resources3,059 MW (7.3% PRMUCAP)

208

61

39

132

2,900

3,000

MW

PurchasesBehind

the MeterGeneration

Demand

2 8512,827 2,700

2,800

M Demand Response

2,851

2,600

IPLGeneration

(UCAP)

2,500MISO Coincident Peak for

PlanningPlanning Reserve Margin UCAP Resources &

Purchases

0

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OUR GENERATION PORTFOLIO IS EVOLVINGEVOLVING

*Resources based on maximum summer rated capacity

**Includes long-term PPAs & anticipated g pRate REP contracts; plans subject to Commission approval

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DISCUSSION OF INDUSTRY QUESTIONSQUESTIONS

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INDIANA UTILITIES ARE ENGAGED IN THE GOVERNOR’S ENERGY PLANTHE GOVERNOR’S ENERGY PLAN

• Work in progress• IEA supports an inclusive plan• Indiana’s current regulatory structure serves

customers well

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IPL WILL CONTINUE TO OFFER A BROAD PORTFOLIO OF DSM PROGRAMSPORTFOLIO OF DSM PROGRAMS

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AES HAS RECENT EXPERIENCE IN THE RESTRUCTURED RETAIL MARKET IN OHIORESTRUCTURED RETAIL MARKET IN OHIO

Restructuring comes with risks/costs:• Confusion and difficult products for

customers to understandcustomers to understand• Retired generation is not being replaced in

OhioOhio• Utilities attempting to sell generating assets• State regulator has less oversightState egulato as less ove s g t• Significant costs associated with billing

changes

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ELECTRICITY RATE INCREASESELECTRICITY RATE INCREASES

The State Utility Forecasting Group (SUFG) The State Utility Forecasting Group (SUFG) is predicting electricity rate increases in Indiana during the next decade.Indiana during the next decade.

SUFG COST DRIVERS:

E i t l li

IPL:

E i t l • Environmental compliance

• Resources required to meet future demand

• Environmental Controls (MATS)

• Eagle Valley CCGT*

• Additions/modifications to extend power plant life

• Unit refueling to natural gas*

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*pending approval

IPL’S MISSIONIPL S MISSION

Improving lives by providing safe, reliable, and affordable energysolutions in the communities we serve.

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