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The major electric load-serving entities (LSEs) of North Carolina, including Duke Energy Carolinas, Duke Energy Progress, ElectriCities of NC (municipals) and the North Carolina Electric Membership Corporation (cooperatives), have created the North Carolina Transmission Planning Collaborative (the "Process"). The Process was formed to enhance transmission planning by allowing all stakeholders to participate in shaping the future transmission network in the areas of North Carolina and South Carolina served by the LSEs. An administrator has been selected to facilitate the Process and to ensure that the interests of all stakeholders are fairly and meaningfully represented.

Specifically, the Process is intended to create an integrated long-term transmission expansion plan that will result in a reliable (i.e., meets all applicable reliability criteria) and cost effective (i.e., lowest overall cost to consumers) transmission system. A Transmission Advisory Group ("TAG") will provide advice and recommendations to the LSEs for consideration for incorporation into the coordinated transmission expansion plan. The TAG membership is open to all parties interested in the development of the Process.

The NCTPC Process satisfies the Federal Energy Regulatory Commission's Order Nos. 890 and 1000 compliance requirements for "local" transmission planning. Regional planning, as required in Order No. 1000, is provided by the Southeastern Regional Transmission Planning (SERTP) process. For more information on the SERTP Process, see http://www.southeasternrtp.com/.