Utility Value Chain White Paper Lacks Investigative Leads

Global Utility White Paper CONFIDENTIAL e §=Utility Value Chain The electricity value chain for a modern day fully integrated utility consists of Generation + Transmission + Distribution + Customers (see diagram below). Each segment of the value chain is a different business, with distinct risks and economic drivers. Competition has surfaced in each part of the value chain other than transmission and distribution (which are fully-regulated assets as they are deemed to be natural monopolies). Still, regulators have learned to bring indirect competition even to monopoly-regulated businesses by encouraging returns based on efficiency improvements or benchmarking to comparable companies. Basic Structure of the Electric System Subtransmission Customer 26kV and 69kV Transmission Lines 500, 345, 230, and 138 kV Substation Step-Down Transformer Primary Customer T3KV and 4 kV Generator Step Transmission Up Transformer Customer Generating Station 138kV or 230kV Secondary Customer 120V and 240V Source: US Department of Energy 26 Electron Capital Partners, LLC HOUSE_OVERSIGHT_024227