Balanced Portfolio

1

Project Original Cost Estimate Q3 2012 Latest Update Cost Variance % Change

Sooner - Cleveland 345 kV $33,530,000 $58,906,000 $59,880,000 $26,350,000 78.6%

Seminole - Muskogee 345 kV $129,000,000 $161,700,000 $161,700,000 $32,700,000 25.3%

Tuco - Woodward 345 kV $227,727,500 $328,733,021 $328,645,462 $101,917,692 44.3%

Iatan - Nashua 345 kV $54,444,000 $64,800,000 $64,800,000 $10,356,000 19.0%

Spearville - Post Rock - Axtell 345 kV $236,557,015 $224,000,000 $224,000,000 ($12,557,015) -5.3%

Swissvale - Stilwell Tap 345 kV $2,000,000 $2,000,000 $1,922,840 ($77,160) -3.9%

Gracemont Substation $8,000,000 $15,200,000 $15,966,210 $7,966,210 99.6%

Total $691,258,515 $855,339,021 $857,002,071 $165,743,556 24.0%

Tuco - Stateline 345 kV Ckt 1 (SPS)

2

Original Cost

EstimateIn-Service

DateLatest Cost

EstimateCost

Variance%

ChangeExpenditure

to Date

% of Latest

Estimate

$122,597,500 5/19/2014 $170,247,072 $47,649,572 38.9% $4,195,822 2.5%

Percentage of Completion

Material Procurement 7% Environmental Studies 50%

Construction 0% Engineering 38%

Siting and Routing 95% Permit Status 35%

Cost Estimate Increase

Justifications

CREZ projects in same area elevating ROW costs 30%

13% increase in line length (178 to 202.4 miles) 30%

43% increase in number of corner/angle structures 30%

Switch from in-house engineering and construction to consultants and contractors 10%

Potential Future Cost

Increase Factors

Increased costs of purchasing easements (due to recent awards for CREZ projects)

Number of corner/angle structures may increase for minor route adjustments

Labor/material costs could increase due to steel/aluminum price fluctuations and availability of contract labor

In-service date may change due to length of time to acquire easements

Final Pedestrian survey could cause archeological or biological mitigation requirements

Tuco 345/230 kV Transformer Ckt 2 (SPS)

3

Original Cost

EstimateIn-Service

DateLatest Cost

EstimateCost

Variance%

ChangeExpenditure

to Date

% of Latest

Estimate

$11,250,000* 3/31/2013 $15,498,390 $4,248,390 37.8% $7,086,641 45.7%

Percentage of Completion

Material Procurement 7% Environmental Studies N/A

Construction 25% Engineering 85%

Siting and Routing N/A Permit Status N/ACost Estimate

Increase Justifications

None provided

Potential Future Cost

Increase Factors

None mentioned

*SPS estimate at time of Modified NTC issuance