Attachment A Page 1 of 5

Attachment O-RUS Non-Levelized Generic page 1 of 5

Formula Rate - Non-Levelized Rate Formula Template For the 12 months ended 12/31/13 Utilizing RUS Form 12 Data

Arkansas Electric Cooperative Corporation

Line Allocated No. Amount 1 GROSS REVENUE REQUIREMENT (page 3, line 31) $ 1,518,687

REVENUE CREDITS (Note T) Total Allocator 2 Account No. 454 (page 4, line 30) 0 TP 0.07515 0 3 Account No. 456 (page 4, line 33) 0 TP 0.07515 0 4 Revenues from Grandfathered Interzonal Transactions 0 TP 0.07515 0 5 Revenues from service provided by the ISO at a discount 0 TP 0.07515 0 6 TOTAL REVENUE CREDITS (sum lines 2-5) 0

7 NET REVENUE REQUIREMENT ( minus ) $ 1,518,687

DIVISOR 8 Average of 12 coincident system peaks for requirements (RQ) service (Note A) 200,176 9 Plus 12 CP of firm bundled sales over one year not in (Note B) 0 10 Plus 12 CP of Network Load not in line 8 (Note C) 0 11 Less 12 CP of firm P-T-P over one year (enter negative) (Note D) 0 12 Plus Contract Demand of firm P-T-P over one year 0 13 Less Contract Demand from Grandfathered Interzonal transactions over one year (enter negative) (Note S) 0 14 Less 12 CP or Contract Demands from service over one year provided by ISO at a discount (enter negative) 0 15 Divisor (sum lines 8-14) 200,176

16 Annual Cost ($/kW/Yr) ( / ) 7.587 17 Network & P-to-P Rate ($/kW/Mo) ( / 12) 0.632

Peak Rate Off-Peak Rate 18 Point-To-Point Rate ($/kW/Wk) (line 16 / 52; line 16 / 52) 0.146 $0.146 19 Point-To-Point Rate ($/kW/Day) (line 16 / 260; line 16 / 365) 0.029 Capped at weekly rate $0.021 20 Point-To-Point Rate ($/MWh) (line 16 / 4,160; line 16 / 8,760 1.824 Capped at weekly $0.866 times 1,000) and daily rates

21 FERC Annual Charge ($/MWh) (Note E) $0.000 Short Term $0.000 Short Term 22 $0.000 Long Term $0.000 Long Term Attachment A Page 2 of 5

Attachment O-RUS Non-Levelized Generic page 2 of 5

Formula Rate - Non-Levelized Rate Formula Template For the 12 months ended 12/31/13 Utilizing RUS Form 12 Data

Arkansas Electric Cooperative Corporation (1) (2) (3) (4) (5) RUS Form 12 Transmission Line Reference Company Total Allocator (Col 3 times Col 4) No. RATE BASE: GROSS PLANT IN SERVICE (Note Y) 1 Production 12h.A.6.e 2,057,295,459 NA 2 Transmission 12h.A.11.e 123,363,889 TP 0.07515 9,270,533 3 Distribution 12h.A.16.e 0 NA 4 General & Intangible 12h.A.1&18.e 32,223,377 W/S 0.00990 319,148 5 Common 0 CE 0.00000 0 6 TOTAL GROSS PLANT (sum lines 1-5) 2,212,882,725 GP= 0.433% 9,589,681

ACCUMULATED DEPRECIATION (Note Y) 7 Production 12h.B.1-4.f 1,066,149,988 NA 8 Transmission 12h.B.5.f 49,218,659 TP 0.07515 3,698,677 9 Distribution 12h.B.6.f 0 NA 10 General & Intangible 12h.B.7.f & 12h.B.12.f 13,669,071 W/S 0.00990 135,382 11 Common 0 CE 0.00000 0 12 TOTAL ACCUM. DEPRECIATION (sum lines 7-11) 1,129,037,718 3,834,059

NET PLANT IN SERVICE 13 Production (line 1- line 7) 991,145,471 14 Transmission (- line 8) 74,145,230 5,571,856 15 Distribution ( - ) 0 16 General & Intangible ( - ) 18,554,306 183,766 17 Common ( - ) 0 0 18 TOTAL NET PLANT (sum lines 13-17) 1,083,845,007 NP= 0.531% 5,755,622

ADJUSTMENTS TO RATE BASE (Note F) 19 Account No. 281 (enter negative) 0 zero 0 20 Account No. 282 (enter negative) 0 NP 0.00531 0 21 Account No. 283 (enter negative) 0 NP 0.00531 0 22 Account No. 190 0 NP 0.00531 0 23 Account No. 255 (enter negative) 0 NP 0.00531 0 24 TOTAL ADJUSTMENTS (sum lines 19 - 23) 0 0

25 LAND HELD FOR FUTURE USE (Note G) 0 TP 0.07515 0

WORKING CAPITAL (Note H) 26 CWC calculated 3,358,157 97,153 27 Materials & Supplies (Note G) 12h.G.4.d + 5.d. 3,166,787 TE 0.07485 237,041 28 Prepayments 12a.B.25 2,009,513 GP 0.00433 8,708 29 TOTAL WORKING CAPITAL (sum lines 26 - 28) 8,534,457 342,903

30 RATE BASE (sum lines 18, 24, 25, and 29) 1,092,379,464 6,098,525 Attachment A Page 3 of 5

Attachment O-RUS Non-Levelized Generic page 3 of 5

Formula Rate - Non-Levelized Rate Formula Template For the 12 months ended 12/31/13 Utilizing RUS Form 12 Data

Arkansas Electric Cooperative Corporation (1) (2) (3) (4) (5)

Line RUS Form 12 Transmission No. Reference Company Total Allocator (Col 3 times Col 4) O&M (Note Z) 1 Transmission 12a.A.8.b + A.17.b 72,331,596 TE 0.07485 5,414,182 2 Less Account 565 12i.A.8.a 66,412,406 TE 0.07485 4,971,117 3 A&G 12a.A.14.b + A.20.b 25,317,260 W/S 0.00990 250,748 4 Less FERC Annual Fees 348,209 W/S 0.00990 3,449 5 Less EPRI & Reg. Comm. Exp. & Non-safety Ad. (Note I) 5,973,853 W/S 0.00990 59,166 5a Plus Transmission Related Reg. Comm. Exp. (Note I) 1,950,871 TE 0.07485 146,027 6 Common 0 CE 0.00000 0 7 Transmission Lease Payments 0 NA 1.00000 0 8 TOTAL O&M (sum lines 1, 3, 5a, 6, 7 less lines 2, 4, 5) 26,865,259 777,225

DEPRECIATION AND AMORTIZATION EXPENSE (Note Y) 9 Transmission 12h.B.5.c 3,590,873 TP 0.07515 269,846 10 General & Intangible 12h.B.7.c & 12h.B.12.c 1,497,118 W/S 0.00990 14,828 11 Common 0 CE 0.00000 0 12 TOTAL DEPRECIATION (sum lines 9 - 11) 5,087,991 284,674

TAXES OTHER THAN INCOME TAXES (Note J) LABOR RELATED 13 Payroll 0 W/S 0.00990 0 14 Highway and vehicle 0 W/S 0.00990 0 15 PLANT RELATED 16 Property 150,436 GP 0.00433 652 17 Gross Receipts 0 zero 0 18 Other 0 GP 0.00433 0 19 Payments in lieu of taxes 0 GP 0.00433 0 20 TOTAL OTHER TAXES (sum lines 13 - 19) 150,436 652

INCOME TAXES (Note K) NA 21 T=1 - {[(1 - SIT) * (1 - FIT)] / (1 - SIT * FIT * p)} = 0.00% 22 CIT=(T/1-T) * (1-(WCLTD/R)) = 0.00% where WCLTD = (page 4, line 22) and R= (page 4, line 24) and FIT, SIT & p are as given in footnote K. 23 1 / (1 - T) = (from ) 0.0000 24 Amortized Investment Tax Credit (enter negative) 0

25 Income Tax Calculation = line 22 * line 28 0 NA 0 26 ITC adjustment (line 23 * line 24) 0 NP 0.00531 0 27 Total Income Taxes (line 25 plus line 26) 0 0

28 RETURN 81,704,061 NA 456,137 [Rate Base (page 2, line 30) * Rate of Return (page 4, line 24)]

29 REV. REQUIREMENT (sum lines 8, 12, 20, 27, 28) 113,807,746 1,518,687

30 LESS ATTACHMENT GG ADJUSTMENT [Attachment GG, page 2, line 3, column 10] (Note U) [Revenue requirement for facilities included on page 2, line 2, and also included in Attachment GG] 0 0

30a LESS ATTACHMENT MM ADJUSTMENT [Attachment MM, page 2, line 3, column 14] (Note W) [Revenue requirement for facilities included on page 2, line 2, and also included in Attachment MM] 0 0 31 REV. REQUIREMENT TO BE COLLECTED UNDER 113,807,746 1,518,687 ATTACHMENT O (line 29 - line 30 - line 30a) Attachment A Page 4 of 5

Attachment O-RUS Non-Levelized Generic page 4 of 5

Formula Rate - Non-Levelized Rate Formula Template For the 12 months ended 12/31/13 Utilizing RUS Form 12 Data

Arkansas Electric Cooperative Corporation Line No. SUPPORTING CALCULATIONS AND NOTES TRANSMISSION PLANT INCLUDED IN ISO RATES 1 Total transmission plant (page 2, line 2, column 3) 123,363,889 2 Less transmission plant excluded from ISO rates (Note M) 114,093,356 3 Less transmission plant included in OATT Ancillary Services (Note N ) 0 4 Transmission plant included in ISO rates (line 1 less lines 2 & 3) 9,270,533

5 Percentage of transmission plant included in ISO Rates (line 4 divided by line 1) TP= 0.07515

TRANSMISSION EXPENSES

6 Total transmission expenses (page 3, line 1, column 3) 72,331,596 7 Less transmission expenses included in OATT Ancillary Services (Note L) 284,551 8 Included transmission expenses (line 6 less line 7) 72,047,045

9 Percentage of transmission expenses after adjustment (line 8 divided by line 6) 0.99607 10 Percentage of transmission plant included in ISO Rates (line 5) TP 0.07515 11 Percentage of transmission expenses included in ISO Rates (line 9 times line 10) TE= 0.07485

WAGES & SALARY ALLOCATOR (W&S) $ TP Allocation 12 Production 11,881,190 0.00 0 13 Transmission 1,962,481 0.08 147,476 14 Distribution 0 0.00 0 W&S Allocator 15 Other 1,046,543 0.00 0 ($ / Allocation) 16 Total (sum lines 12-15) 14,890,213 147,476 = 0.00990 = WS

COMMON PLANT ALLOCATOR (CE) (Note O) $ % Electric Labor Ratio 17 Electric 0 ( / ) (line 16) CE 18 Gas 0 0.00000 * 0.00990 = 0.00000 19 Water 0 20 Total (sum lines 17-19) 0

RETURN (R) $ 21 Long Term Interest 12a.A.24.b $33,024,462

Cost $ % (Note P) Weighted 22 Long Term Debt 12a.B.46 + B.47 + B.52 + B.53 + B.54 771,228,806 61% 0.0428 0.0259 =WCLTD 23 Proprietary Capital 12a.B.39 503,194,746 39% 0.1238 0.0489 24 Total (sum lines 22-23) 1,274,423,552 100% 0.0748 =R

25 Proprietary Capital Cost Rate = 12.38% 26 TIER = 0.57 REVENUE CREDITS Load ACCOUNT 447 (SALES FOR RESALE) 27 a. Bundled Non-RQ Sales for Resale (Note Q) 0 28 b. Bundled Sales for Resale included in Divisor on page 1 0 29 Total of (a)-(b) 0

30 ACCOUNT 454 (RENT FROM ELECTRIC PROPERTY) (Note R) $0

ACCOUNT 456 (OTHER ELECTRIC REVENUES) 31 a. Transmission charges for all transmission transactions $0 32 b. Transmission charges for all transmission transactions included in Divisor on page 1 $0 32a c. Transmission charges from Schedules associated with Attachment GG (Note V) $0 32b d. Transmission charges from Schedules associated with Attachment MM (Note X) $0 33 Total of (a)-(b)-(c)-(d) $0 Attachment A Page 5 of 5

Attachment O-RUS Non-Levelized Generic page 5 of 5 Formula Rate - Non-Levelized Rate Formula Template For the 12 months ended 12/31/13 Utilizing RUS Form 12 Data

Arkansas Electric Cooperative Corporation General Note: References to pages in this formulary rate are indicated as: (page#, line#, col.#) References to data from RUS Form 12 are indicated as: #.x.y.z (page,section, line, column) Note To the extent the page references to RUS Form 12 are missing, the entity will include a "Notes" section in the RUS 12 to provide this data Letter A The utility's maximum monthly megawatt load (60-minute integration) for RQ service at time of applicable pricing zone coincident monthly peaks. RQ service is service which the supplier plans to provide on an on-going basis (i.e., the supplier includes projected load for this service in its system resource planning). B Includes LF, IF, LU, IU service. LF means "firm service" (cannot be interrupted for economic reasons and is intended to remain reliable even under adverse conditions), and long-term (duration of at least five years); does not meet definition of RQ service. IF is "firm service" for a term longer than one but less than five years. LU is service from a designated generating unit, of a term no less than five years. LI is service from a designated generating unit for a term between one and five years. Measured at time of applicable pricing zone coincident monthly peaks. C LF as defined above at time of applicable pricing zone coincident monthly peaks. D LF as defined above at time of applicable pricing zone coincident monthly peaks. E The FERC's annual charges for the year assessed the Transmission Owner for service under this tariff, if any. F The balances in Accounts 190, 281, 282 and 283, as adjusted by any amounts in contra accounts identified as regulatory assetsor liabilities related to FASB 106 or 109. Balance of Account 255 is reduced by prior flow throughs and excluded if the utility chose to utilize amortization of tax credits against taxable income as discussed in Note K. Account 281 is not allocated. G Transmission related only. H Cash Working Capital assigned to transmission is one-eighth of O&M allocated to transmission at page 3, line 8, column 5. Prepayments are the electric related prepayments booked to Account No. 165 and reported on Section B, line 25 in the RUS 12. I Line 5 - EPRI Annual Membership Dues, all Regulatory Commission Expenses, and non-safety related advertising. Line 5a - Regulatory Commission Expenses directly related to transmission service, ISO filings, or transmission siting. J Includes only FICA, unemployment, highway, property, gross receipts, and other assessments charged in the current year. Taxes related to income are excluded. Gross receipts taxes are not included in transmission revenue requirement in the Rate Formula Template, since they are recovered elsewhere. K The currently effective income tax rate, where FIT is the Federal income tax rate; SIT is the State income tax rate, and p = "the percentage of federal income tax deductible for state income taxes". If the utility is taxed in more than one state it must attach a work paper showing the name of each state and how the blended or composite SIT was developed. Furthermore, a utility that elected to utilize amortization of tax credits against taxable income, rather than book tax credits to Account No. 255 and reduce rate base, must reduce its income tax expense by the amount of the Amortized Investment Tax Credit multiplied by (1/1-T) (page 3, line 26). Inputs Required: FIT = 0.00% SIT= 0.00% (State Income Tax Rate or Composite SIT) p = 0.00% (percent of federal income tax deductible for state purposes) L Removes dollar amount of transmission expenses included in the OATT ancillary services rates, including all of Account No. 561. M Removes transmission plant determined by Commission order to be state-jurisdictional according to the seven-factor test (until RUS 12 balances are adjusted to reflect application of seven-factor test). N Removes dollar amount of transmission plant included in the development of OATT ancillary services rates and generation step-up facilities, which are deemed included in OATT ancillary services. For these purposes, generation step-up facilities are those facilities at a generator substation on which there is no through- flow when the generator is shut down. O Enter dollar amounts P Debt cost rate = long-term interest (line 21) / long term debt (line 22). The Proprietary Capital Cost rate is implicit, a residual calculation after TIER is determined. TIER will be supported in the filing and no change in TIER may be made absent a filing with the ISO and the FERC, if the entity is under FERC's jurisdiction. Q Line 29 must equal zero since all short-term power sales must be unbundled and the transmission component reflected in Account No. 456 and all other uses are to be included in the divisor. R Includes income related only to transmission facilities, such as pole attachments, rentals and special use. S Grandfathered agreements whose rates have been changed to eliminate or mitigate pancaking - the revenues are included in line 4, page 1 and the loads are included in , page 1. Grandfathered agreements whose rates have not been changed to eliminate or mitigate pancaking - the revenues are not included in line 4, page 1 nor are the loads included in line 13, page 1. T The revenues credited on page 1, lines 2-5 shall include only the amounts received directly (in the case of grandfathered agreements) or from the ISO (for service under this tariff) reflecting the Transmission Owner's integrated transmission facilities. They do not include revenues associated with FERC annual charges, gross receipts taxes, ancillary services, facilities not included in this template (e.g., direct assignment facilities and GSUs) which are not recovered under this Rate Formula Template. U Pursuant to Attachment GG of the Midwest ISO Tariff, removes dollar amount of revenue requirements calculated pursuant to Attachment GG. V Removes from revenue credits revenues that are distributed pursuant to Schedules associated with Attachment GG of the Midwest ISO Tariff, since the Transmission Owner's Attachment O revenue requirements have already been reduced by the Attachment GG revenue requirements. W Pursuant to Attachment MM of the Midwest ISO Tariff, removes dollar amount of revenue requirements calculated pursuant to Attachment MM. X Removes from revenue credits revenues that are distributed pursuant to Schedules associated with Attachment MM of the Midwest ISO Tariff, since the Transmission Owner's Attachment O revenue requirements have already been reduced by the Attachment MM revenue requirements. Y Plant in Service, Accumulated Depreciation, and Depreciation Expense amounts exclude Asset Retirement Obligation amounts unless authorized by FERC. Z Schedule 10-FERC charges should not be included in O&M recovered under this Attachment O. Attachment B Page 1 of 63

Arkansas Electric Cooperative Corporation June 1, 2014 posting file related to the 2013 Attachment O update

Per Protocols: Section II D.

1. This file is a workable data-populated Formula Rate Template and underlying workpap 2. The data is based on the Cooperative's RUS/CFC Form 7 or Form 12 data (file embed 3. Supporting documentation and workpapers are included 4. Sufficient information has been provided to enable Interested Parties to replicate the ca 5. There have been no changes in MISO standard Attachment O formula references 6. There have been no adjustments made to the Applicable Form data in determining form 7. Greater granularity is included in the workpaper tabs included in this file 8. There have been no changes in accounting that affects inputs to the formula rate or res Attachment B Page 2 of 63 Attachment B Page 3 of 63

ers. ded below) alculation of the formula results

mula inputs

sulting charges under the formula Attachment B Page 4 of 63 Attachment B Page 5 of 63 Attachment B Page 6 of 63 Attachment B Page 7 of 63 Attachment B Page 8 of 63 Attachment B Page 9 of 63 Attachment B Page 10 of 63 Attachment B Page 11 of 63 Attachment B Page 12 of 63 Attachment B Page 13 of 63 Attachment B Page 14 of 63 Attachment B Page 15 of 63 Attachment B Page 16 of 63 Attachment B Page 17 of 63 Attachment B Page 18 of 63 Attachment B Page 19 of 63 Attachment B Page 20 of 63 Attachment B Page 21 of 63 Attachment B Page 22 of 63 Attachment B Page 23 of 63 Attachment B Page 24 of 63 Attachment B Page 25 of 63 Attachment B Page 26 of 63 Attachment B Page 27 of 63 Attachment B Page 28 of 63 Attachment B Page 29 of 63 Attachment B Page 30 of 63 Attachment B Page 31 of 63 Attachment B Page 32 of 63 Attachment B Page 33 of 63 Attachment B Page 34 of 63 Attachment B Page 35 of 63 Attachment B Page 36 of 63 Attachment B Page 37 of 63 Attachment B Page 38 of 63 Attachment B Page 39 of 63 Attachment B Page 40 of 63 Attachment B Page 41 of 63 Attachment B Page 42 of 63 Attachment B Page 43 of 63 Attachment B Page 44 of 63 Attachment B Page 45 of 63 Attachment B Page 46 of 63 Attachment B Page 47 of 63 Attachment B Page 48 of 63 Attachment B Page 49 of 63 Attachment B Page 50 of 63 Attachment B Page 51 of 63 Attachment B Page 52 of 63 Attachment B Page 53 of 63 Attachment B Page 54 of 63

Arkansas Electric Cooperative Corporation NOT APPLICABLE - AECC's load is included within Entergy Arkansas load 12/31/2013

Attachment O divisor

Report peak conincident with the pricing zone for each month in KWhs

Jan - Feb - Mar - Apr - May - Jun - Jul - Aug - Sep - Oct - Nov - Dec - Sub total -

Average _1/, _2/ - should be reported on Attachment O, page 1, line 8,

_1/ Indicate Midwest ISO Pricing Zone in which this load is located. _2/ Indicate if the amount reported represents bundled load only. ______

Do the above numbers include any GFA related load? If yes, provide the following By month for each GFA, provide the GFA #, the GFA load, and the GFA transmission revenues Attachment B Page 55 of 63

Arkansas Electric Cooperative Corporation None for AECC 12/31/2013

Attachment O, page 2, line 25

Land Held For Future Use

Production $ - Transmission - should be reported on Attachment O, page 2, line 25 Distribution - Other - 0 should tie to RUS Form 12 Part H Section A, line 22, column e please provide an explanation if the total does not tie

Note: Amounts reported on this work paper must meet the definition of USofA account 105.

Below - Provide a brief but descriptive list of the Transmission land held for future use and the amounts related to each item of Transmission land held for future use Attachment B Page 56 of 63

Arkansas Electric Cooperative Corporation 12/31/2013

Attachment O, page 2, line 27

Materials and Supplies

Transmission Other Total RUS Form 12, Part H, Section G, Line 4, Column d $ 109,883 $ - $ 109,883 RUS Form 12, Part H, Section G, Line 5, Column d $ 3,056,904 $ - $ 3,056,904 $ - $ - $ 3,166,787 $ - $ 3,166,787 should tie to RUS Form 12 Part H Section G, lines Rept on Attach O 4 and 5, column d. Provide an explanation if the pg 2, line 27 total does not tie Attachment B Page 57 of 63

Arkansas Electric Cooperative Corporation 12/31/2013

Attachment O, page 3, line 4 Account FERC fees recorded to expense during the year Charged Amount Brief Description

FERC Assessment - SPP $297,521 FERC Assessment in Southwest Power Pool - From AECC Accounting FERC fees paid to MISO via Schedule 10-FERC 50,688 Other FERC fees paid -

Total 348,209 Should be reported on Attach O, page 3, line 4 Attachment B Page 58 of 63

Arkansas Electric Cooperative Corporation 12/31/2013

Attachment O, page 3, lines 5 and 5a

EPRI Costs/Dues $ 1,762,914.24 Recorded in Accounts 921.3 and 930.2

Regulatory Commission Expense (provide a brief but descriptive list of charges) Indicate by yellow highlight if Transmission Related Non-Transmission Related proceedings - Legal and Consultants $ 216,764.00 recorded in account 923 Transmission Related proceedings - Legal and Consultants $ 1,950,871.00 recorded in account 923 Other - provide description $ - Other - provide description $ - recorded in account ______Total Regulatory Commission Expense $ 2,167,635.00 Per AECC Accounting

Non Safety Advertising (provide a brief but descriptive list of charges

Advertising Expense - Informational & Instructional Advertising $ 94,581 Recorded in Account 909 Advertising Expense - Economic Develop - Commercial & Ind. Mktg $ 141,933 Recorded in Account 912.201 Advertising Expense - Sales $ 532,000 Recorded in Account 913 Misc. General Advertising Expenses $ 840 Recorded in Account 930.1 Co-op Advertising $ 356,154 Recorded in Account 930.15 Image Awareness Advertising $ 917,797 Recorded in Account 930.16 Total Non-safety Advertising Expense $ 2,043,304

Total EPRI, Reg Comm exp, & non-safety adv $ 5,973,853 Should be reported on Attachment O, page 3, line 5

Total of transmission related reg comm $ 1,950,871.00 Total of amounts highlighted in yellow above should be reported on Attachment O, page 3, line 5a. You will need to adjust this formula to pick up the yellow highlighted cells

If a zero is reported for any category above, please provide a brief explanation as to why. Attachment B Page 59 of 63

Arkansas Electric Cooperative Corporation 12/31/2013

Taxes Other Than Income Taxes

Payroll $ - Attachment O, page 3, line 13 Highway & Vehicle - Attachment O, page 3, Property 150,436 Attachment O, page 3, line 16 Gross - Attachment O, page 3, line 17 Other - please explain - Attachment O, page 3, Fed & State income Tax - Not reported on Attach O Total $ 150,435.71 Should tie to RUS Form 12 Part A, Section A, line 23, column b please provide explanation if it doesn't

NOTE: Amounts reported on this work paper must meet the definition of USofA account 408.1.

(1) AECC records payroll taxes directly to each function, except for a small amount of property tax related to General Plant shown above. (2) The property tax is for general plant. There are no Gross Receipts tax, no income tax, no highway and vehicle other than that included in property tax (related to General Plant) and no other taxes.

The bulk of property taxes is recorded directly to O&M Accounts Attachment B Page 60 of 63

Transmission Plant Excl from ISO Rates - Attach O, pg 4, line 2 Balances at 12/31/2013 Brief Description Amount Transmission Investment in SPP $114,093,356.00 SPP Area Investment Transmission Investment in MISO $ 9,270,533.00 Dell to Blytheville N. 161 kV Line (MISO area investment) Total Trans Investment $ 123,363,889.00 AECC Form 12 - 2013 Transmission Inv. Excluded from MISO $ 114,093,356.00 Report on Attach O, pg 4, line 2

Items that are recorded to the transmission plant accounts that are not transmission should be reported here.

If your Company has received a Commission (state or FERC) Order related to the seven-factor test, please provide a copy of the Commission Order and fill out the above worksheet. The Order should support the amounts reported above.

If your Company is not regulated (state or FERC) MISO will perform a seven factor analysis. If, per MISO's analysis, some of the facilities that are recorded to transmission asset accounts are not transmission facilities, those amounts should be reported here.

If a zero is reported above, please confirm here in writing that you have no transmission plant that should be excluded from ISO rates.

AECC Dell to Blytheville North Cost Study

LINE COSTS Date to CPR mi Line 1 Dell AECC 161 to Nucor-Yamato $1,715,956 4/21/1988 14.79 Line 5 Nucor-Yamato to Nucor Steel $426,346 2/7/1992 5.37 Line 9 Nucor II to Hickman North $387,352 9/12/2002 0.72 Line 10 Hickman North to Blytheville North $4,187,079 7/22/2009 8.67 Total 29.55

EQUIPMENT COSTS At Dell AECC 161 1 Breaker & 1 Sw $123,919 Reginold Line Switches by MCECI At Nucor-Yamato 3 Breakers & 7 Sw $345,125 Includes N.O. Transfer Hickman South Line Switches by MCECI Hickman West Line Switches by MCECI Hickman East Line Switches by MCECI At Nucor II 2 Breakers & 4 Sw $306,248 Hickman North Line Switches by MCECI At Blytheville North Total Cost $1,778,508

TOTAL COST OF TRANSMISSION FACILITIES FROM DELL $9,270,533 AECC 161 TO BLYTHEVILLE NORTH Attachment B Page 61 of 63

Arkansas Electric Cooperative Corporation None for AECC 12/31/2013

Transmission Plant Included in OATT Ancillary Services - Attach O, pg 4, line 3 rief Description Amount _1/ XXXXX $ - XXXXX - XXXXX - XXXXX - XXXXX - XXXXX - Total $ - Report on Attach O, pg 4, line 3

_1/ Should reflect the dollar amount of transmission plant included in the development of OATT ancillary services rates and generation step-up facilities (which are deemed included in OATT ancillary services). For these purposes, generation step-up facilities are those facilities at a generator substation on which there is no through-flow when the generator is shut down.

If a zero is reported above, please confirm here in writing that you have no transmission plant that is included in the development of OATT ancillary services. Attachment B Page 62 of 63

Arkansas Electric Cooperative Corporation 12/31/2013

Attachment O, page 4, lines 12 - 15

Production $ 11,881,190 Report on Attachment O, page 4, Transmisssion $ 1,962,481 Report on Attachment O, page 4, line 13 Distribution $ - Report on Attachment O, page 4, line 14 Other _1/ $ 1,046,543 Report on Attachment O, page 4, line 15 Subtotal $ 14,890,213 A&G $ 8,679,163 Not reported on Attachment O Total $ 23,569,376 Does this tie to RUS Form 12 Part H, Section J line 4? if not, please provide an explanation.

(1) The above amounts do not contain any capitalized wages. (2) The above amountd do not contain any A&G related wages. Please indicate here if your company performs work for others and where those costs and related revenues are recorded Also please indicate what line item of the Form 12 includes these costs and related revenues

_1/ Other is to include salaries charged to administer customer accounts 901 - 916 as defined by the USofA Attachment B Page 63 of 63

Arkansas Electric Cooperative Corporation None for AECC - No transmsision Customers 12/31/2012

Attachment O, page 4, lines 30 - 32

Include on Include on Page 4, Source Include on Page 4, Total Line 32- of Page 4, Line 31- All Descripti Account Transmissi Account Transmis Line 30- transmissio on Balance for on sion Account n the Year transaction Revenue 454 transaction s included s in Divisor 1 $ - $ - $ - $ - 2 $ - $ - $ - $ - 3 $ - $ - $ - $ - 4 $ - $ - $ - $ - 4 $ - $ - $ - $ - 4 $ - $ - $ - $ - 5 $ - $ - $ - $ - 5 $ - $ - $ - $ - 6 Totals $ - $ - $ - $ -