1. Steve Caison Director of Member Services

2. Christmas gift warning

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9. Smart Grid Update • Approximately 50% of the Grant has been received • DOE site visit and review occurred on June 29th and 30th • Update on Progress • Review of Cyber Security Plan • Invoicing • Metrics/Benefits reporting • Implementation is in three phases • Phase I – Software - Complete • Phase II – Hardware – In Progress • Phase III – Software – 2013/2014

10. 9,169 MWh 8,863 MWh

12. Bulk Electric System Audit • 2011 SERC BES Audit • Audited by SERC, June 13th – 15th , 2011 • 18 Bulk Electric System (BES) Standards with 137 Requirements • Passed with no violation findings • Identified some improvements • Continuing to maintain daily compliance

13. GSOC Tax Exempt Status • GSOC first formed as a taxable, non-profit Corporation • Began research to become non-taxable in 2007 • Submitted application to the IRS in January 2011

14. Current Status • Approved August 10, 2011 • 501(c)(4) Civic League • Eliminates ~ $350,000 in accrued Federal tax liabilities • Annual Federal Tax Filing will be replaced with Annual Form 990 filing

15. Fourth Quarter • Upcoming Changes and Events • New Murray Combined Cycle Resource

16. Fourth Quarter • Upcoming Changes and Events • New Murray Combined Cycle Resource • Walton EMC moving SM Groups

17. Fourth Quarter • Upcoming Changes and Events • New Murray Combined Cycle Resource • Walton EMC moving SM Groups • SERC Critical Infrastructure Protection (CIP) Audit • December 5th – 9th • December 12th – 16th

18. 2011 Corporate Strategic Initiatives • FERC/NERC/SERC Compliance • Infrastructure Improvements • SharePoint Initiative • Data Delivery • Smart Grid • Telecommunications • EMS Upgrade • Health Care Reform • Workforce Strategy

19. Questions / Comments