August 31, 2022

Notice of Intent to Issue a Request for Proposals
2022 Entergy Texas, Inc. Renewables RFP

Entergy Services, LLC (“ESL”), hereby provides notice to interested parties that it intends to issue a Request for Proposals for Renewable Generation Resources (the “RFP”) on behalf of Entergy Texas, Inc. (“ETI”). ESL expects to issue the RFP in September 2022. RFP documents will be posted to ESL’s website for the RFP, https://spofossil.entergy.com/ENTRFP/SEND/2022ETIRenewablesRFP/Index.htm. ESL plans on holding a Bidders Conference in September 2022, prior to the RFP documents being posted. Interested participants should monitor the RFP website for information about the Bidders Conference, including the date, time, and location. Proposals responsive to the RFP may be due as early as November 2022.

Through the RFP, ETI would seek to obtain approximately 2,000 megawatts (AC) (“MW”) of renewable resources that can provide cost-effective energy supply, capacity, fuel diversity, and other benefits to ETI’s customers. ETI reserves the right to acquire more or less capacity than the target amounts set forth in this notice. Only solar photovoltaic (“Solar PV”) and wind turbine (“Wind”) resources would be eligible to be offered into the RFP..

The RFP would solicit build-own-transfer (“B-O-T”) agreements, self-build alternatives, and power purchase agreements (“PPAs”). ETI would seek to procure 500 – 1,000 MW having a guaranteed commercial operation/substantial completion date or delivery term start date no later than May 31, 2026, and the remainder (1,000 - 1,500 MW) with a guaranteed commercial operation/substantial completion date or delivery term start date from June 1, 2026, through January 2, 2027. The delivery term for a PPA arising out of the RFP would be a minimum of ten (10) years and a maximum of twenty (20) years, with an interest in fifteen (15) year or shorter delivery terms. Under the RFP, ETI will not enter into a PPA, or any related agreement, that will or may result in the recognition of a long-term liability on the books of ETI (or any of its Affiliates), whether the long-term liability is due to lease accounting, the accounting for a variable interest entity (“VIE”) or derivatives, or any other applicable accounting standard.

Solar PV PPA or B-O-T resources and Wind B-O-T resources proposed for the RFP would be required to be physically located within the geographic region defined as local resource zone 9 (“LRZ 9”) of Midcontinent Independent System Operator, Inc. (“MISO”) South. Wind PPA resources would be required to be located in either MISO South or Southwest Power Pool, Inc. (“SPP”). ETI has a preference for resources located in the Texas portion of MISO South, especially in the area known as the “Western Region” of ETI’s service territory.

Bidders in the RFP would be permitted to submit proposals for eligible Solar PV or Wind resources that have a fully executed Generator Interconnection Agreement (“GIA”) with MISO or are active in MISO’s 2022 Definitive Planning Phase (“DPP”) studies or an earlier DPP study. Wind resources in SPP would be required to have a fully executed GIA with SPP or be active in the SPP 2021 Definitive Interconnection System Impact Study (“DISIS”) Cluster Study or an earlier DISIS study. Resources that are not included in any of these DPP studies (Wind or Solar PV B-O-Ts or PPAs) or DISIS studies (Wind PPAs) or lack an executed GIA would be ineligible to participate in the RFP. Resources in MISO or SPP would need to be in their respective queues for at least energy resource interconnection service (“ERIS”). Resources in MISO would be required to have or obtain firm transmission service through either network resource interconnection service (“NRIS”) or network integration transmission service (“NITS”). Resources in SPP would be required to have or obtain firm point-to-point service into MISO and either firm delivery in MISO through NITS or External NRIS. Any resource location or RFP schedule question should be directed to the Bid Event Coordinator (see the final paragraph below).

Proposals would be allowed to include a separately priced option for a battery energy storage system (“BESS”) to supplement the energy delivery capabilities of the Solar PV or Wind resource.

The RFP would not preclude consideration of any self-build option that may be submitted on behalf of ETI or any proposal that may be submitted by Entergy Regulated Affiliates or Entergy Competitive Affiliates. The self-build option(s) and/or Affiliate proposal(s) would be considered and evaluated as an alternative to third party proposals submitted in response to the RFP.

Any transaction emerging from the RFP would be subject to ETI’s receipt of all regulatory approvals on terms acceptable to ETI in its sole discretion and other conditions precedent.

Consistent with prior ETI RFPs, the registration process contemplates that Bidders would be required to register each proposal with ETI and pay a proposal submission fee of $10,000 per proposal in advance of the RFP’s proposal submission period. Any alternative proposal submitted into the RFP (e.g., a proposal containing alternative pricing, alternative completion dates, or an alternative transaction structure) would be required to be registered as a separate proposal. A bidder that offers a proposal that also includes a BESS proposal would be required to pay an incremental charge of $1,000 for each BESS option offered.

Bidders are advised that various rules, regulations, and other laws apply to the development of new-build Solar PV and Wind projects. Bidders may be required to demonstrate to ETI that they have timely obtained, or have a plan to timely obtain, the licenses and other authorizations required under such laws to submit its proposal(s) in the RFP or to perform their obligations under any resulting contract with ETI.

All dates and time periods referenced in this notice are subject to change. This notice is intended in part to give prospective bidders interested in participating in the RFP advance notice of the RFP. While ETI expects to issue the RFP, by publishing this notice ETI is not assuming, and expressly disclaims, any obligation or commitment to issue the RFP or any other obligation or liability of any kind of ETI that could result from or arise out of this notice.

ETI has engaged Mr. George Harrison of ESL to serve as the Bid Event Coordinator, and Mr. Keith Oliver of Merrimack Energy Group Inc. to serve as the Independent Monitor (“IM”) for the RFP. Mr. Oliver can be reached via email at MerrimackIM@merrimackenergy.com. Questions about this notice or the RFP should be directed to the Bid Event Coordinator of the RFP at etirfp@entergy.com and to Mr. Oliver at the referenced email address.