Here's an update on what's going on at ATC.

ATC demonstrates environmental leadership and commitment
ATC is the first utility to apply for Wisconsin's Green Tier program for exceptional environmental performance. ATC is among the first three companies in Wisconsin to apply for acceptance into the program. Wisconsin's Green Tier is the first and only legislatively-approved program in the country that seeks to improve environmental protection through performance-based oversight.

The Green Tier program, administered by the Wisconsin Department of Natural Resources, admits companies whose environmental practices go above and beyond what is required by state law. The program strives to encourage responsible environmental decision making and to protect and restore natural resources.

As part of the program, ATC has committed to establishing an environmental stewardship fund that would be administered by the Natural Resources Foundation (NRF). If accepted, the fund will be dedicated to supporting State Natural Areas an grant decisions would be made by the NRF. ATC will contribute a portion of its construction budget for larger projects to the fund. The funding level has yet to be established.

A decision by the DNR on ATC's Green Tier application is expected in the first half of 2005.

Planning holds access meetings; modifies department structure
ATC held several meetings with customers and stakeholders to discuss transmission access and the potential costs and benefits of increasing transmission access. The meetings also included discussion of ATC's intended approach to exploring the topic and solicited feedback, reaction and ideas from ATC customer and stakeholders. Meeting notes and materials are available on OASIS at the following link.

http://www.atcllc.com/oasis/Customer_Notices/Access.html

Meetings for 2005 have not yet been scheduled, but will be announced at a later date.

ATC Planning changed its department structure to better serve customer needs. Planning is divided into four specific focus areas.

• Access Group - focuses on transmission service and generator-to- transmission interconnections, including studies and project scopes, and has the lead on access/transfer capability study initiatives. Contact: Dale Burmester, Manager - Access Group, dburmester@atcllc.com.
• Regional Group - handles the regional study initiatives and planning relationships, transmission interconnections outside ATC's service territory, and covers industry development and regional operations planning issues. Contact: Jay Porter, Manager - Regional Group, jporter@atcllc.com.
• Reliability Group - focuses on ATC zone planning and load interconnections, and takes the lead on model building, planning standards and assessing new technologies. Contact: David Smith, Manager - Reliability Group, dsmith@atcllc.com.
• Strategy Group - oversees the public planning process (including the 10-Year Assessment reports), and handles planning strategies for siting and regulatory concerns as well as ATC zone umbrella plans. Contact: Scott Barnhart, Manager - Strategy Group, sbarnhart@atcllc.com.

System Operations modifies Cottage Grove Control Center
In the spirit of continuous improvement and with a focus to provide greater system reliability and operational efficiency for all customers, System Operations is modifying its Cottage Grove Control Center. The proposed expansion plan increases the combined control center and backup control center by 1,225 square feet and relocates the backup control center to an area adjacent to the existing control room. These modifications will increase flexibility so that any operator, from any ATC system, can be seated at any console and perform his/her assigned duties. It will also provide operator training in an environment that mirrors the control room floor, and will relocate and reconfigure operations support positions that will maintain proximity to the real-time operator for assistance and guidance but will provide a better work environment for both functions.

The project also satisfies some of the recommendations made by the U.S. - Canada Power System Outage Task Force in response to the 2003 Northeast Blackout. One pending requirement is to provide a fully operational backup control room and to provide a wide-area view of the regional system. ATC intends to satisfy this objective utilizing video cubes (exclusive video displays). The traditional mosaic map board limits flexibility in the placement of operator positions and the manner in which an operator can view information. The introduction of video cubes will greatly enhance ATC's ability to optimize its wide-area view of the system as well as its use of visualization tools. Construction was completed in December 2004.

Local Relations Hosts Open houses
ATC's Local Relations department hosted public open house events for the Femrite-Sprecher Project, the construction of four miles of new 138 kV transmission line connecting the Femrite Substation near the I-90/USH 12/18 interchange with the Sprecher Substation located near Sprecher and Cottage Grove Roads near Madison. This project would support growth in demand for electricity in the area, provide backup for critical facilities, maintain electric system reliability for the east side of Madison, and carry power into Dane County from new sources of generation that are coming online. After further environmental and engineering analysis, ATC intends to host additional open houses this fall to announce its preferred and alternate route options. ATC then plans to submit its application to the Public Service Commission of Wisconsin. The line is expected to be in service in spring 2007.

ATC's Environmental Department develops & implements "Fred"
"Fred" is a environmental management system that provides a systematic means of organizing, evaluating, maintaining and improving ATC's environmental perfomance. It uses the ISO 14001 standard as a model but incorporates an emphasis on stakeholder outreach and transparency to outside organizations and individuals. "Fred" consists of various interrelated management practices in the form of written procedures, work instructions and standards. Each practice is designed to translate ATC's Statement of Environmental Commitment into the daily operations of ATC, its employees and its contractors. "Fred" includes audit training programs as well as the resources necessary to meet ATC's environmental goals.

The team's next focus is to develop procedures that will serve as standards for how ATC does construction, and environmental feature avoidance and protection.

State Regulatory updates status of projects in 2004
ATC's State Regulatory department updated its project application and approval list for 2004. Applications were filed with the Public Service Commission of Wisconsin for the projects listed below. Projects highlighted in italics have also received commission approval.

Morgan - Stiles
Plains - Amberg - Stiles - West Marinette
Columbia - North Madison
Navitas Blue Sky - Green Field
Oak Creek #1 - Elm Road
Delavan - Darien Reliability I
Turtle - Darien
Wempleton - Paddock (Wisconsin)
Femrite - Sprecher