Structured / Unstructured Market Trials Weekly Update – Friday Meeting August 23, 2013

Call Reminders Please help to minimize disruptions: Mute your phones Do not dial-in from a recorded line Do not put the call on hold, even if you are on mute 2

Agenda TCR / ECT Update (5 min) 9:00-9:05A Analysis Aug 12 – Aug 18 (35 min) 9:05-9:40A Settlements (10 min) 9:40-9:50A Announcements & Outstanding Questions (5 min) 9:50-9:55A Commitment Parameters (10 min) 9:55-10:05A Look-Ahead Aug 26 – Sept 2 (10 min) 10:05-10:15A Updates (10 min) 10:15-10:25A Release Scorecard Migration Report Known Issues Log Questions (5 min) 10:25-10:30A 3

TCR Summary Allocation Process Auction Process Revenue Next Steps 4 John Snyder

TCR: Allocation Percentage Allocated MW lower than Annual Due to Baseloading TCRs & Model Changes 5 John Snyder

TCR: Auction Participation 6 John Snyder

TCR: Revenue by AO: September On-peak 7 Net Revenue $171,140 Charges Credits John Snyder

TCR Participation / Model Changes Drive Revenue 8 John Snyder

TCR Participation Self Converts (MW) 883 MW On-Peak 853 MW Off-Peak Buy Bid & Sell Offers (#) 222 On-Peak 153 Off-Peak ARR MW with no set Price (%) 43% in On-Peak 61% in Off-Peak 9 John Snyder

TCR Next Steps ARR Level 3 Training: Phase 2 Monthly Processes Allocation Nominations: Auction Bids/Offers: 10 September September 9 September 16-17, August August 27, September John Snyder

TCR: Go-Live Preparation Submit Your Historical Peak Load Who: Only those MPs with NITS Service What: Historical Peak Loads (Load + Transmission Losses) for 2010, 2011 & 2012 for the historical coincident peak load for your system. Why: Validation purposes to compare against what we pull from settled EIS transmission settlements. When: by September 18, John Snyder

Extended Connectivity Testing 12 ECT Test Execution (occurs between 8/5 and 8/30): MPs have been assigned a week during test execution time frame to perform their testing. Weekly Execution Assignments Tests are performed independently during the assigned week. No appointment is necessary. Issues with test execution handled via RMS.RMS Metrics updated as of Wednesday 8/14 at 12:00pm CPT iDashboard – Market Trials Connectivity External Dashboard Michael Hodges

Extended Connectivity Testing 13 Test Execution: Test Execution WeekMarket Participant Week #1: August 5th - August 9th BJ Energy, LLC (PASS) DTE Energy Trading Inc (PASS) Entegra Power Services (PASS) Franklin Power, LLC (PASS) JP MORGAN VENTURES ENERGY CORP (PASS) MONTEREY SW, LLC (PASS) APX, Inc (PASS) DC Energy Midwest, LLC (PASS) MONTEREY SWF, LLC Week #2: August 12th - August 16th ETC ENDURE ENERGY LLC Vitol, Inc. (PASS) Sustaining Power Solutions (PASS) APEX (PASS) BLUE CANYON 5 (PASS) BUFFALO DUNES WIND PROJECT (PASS) City of Fremont Merrill Lynch Commodities, Inc. TWIN EAGLE RESOURCE MANAGEMENT, LLC Active Power Investments, LLC (PASS) Michael Hodges

Extended Connectivity Testing 14 Test Execution: Test Execution WeekMarket Participant Week #3: August 19th - August 23rd CITIGROUP ENERGY INC CONOCO PHILLIPS COMPANY (PASS) DENVER ENERGY, LLC (PASS) Denver Energy2, LLC (PASS) Durable Electric Power (PASS) EDP Renewable NA, LLC (PASS) INFINITY WIND HOLDINGS, LLC J ARON & COMPANY Midwest Energy Trading East LLC (MET1) NORTHPOINT ENERGY SOLUTIONS, Inc. NSP Energy Marketing (NSPP) NSP Energy Trading (NSPT) Week #4: August 26th - August 30th EDF TRADING NORTH AMERICA, LLC POWEREX CORP PSCO Energy Trading Public Service Company of Colorado PSCO Energy Marketing SARACEN ENERGY WEST TENNESSEE VALLEY AUTHORITY TRADEMARK MERCHANT ENERGY, LLC (Former Kansas Energy, LLC) UNION ELECTRIC COMPANY DBA AMEREN MISSOURI UNION POWER PARTNERS L P UTILITIES PLUS XO ENERGY SW, LP XO ENERGY SW2, LP Michael Hodges

Extended Connectivity Testing The following MPs have not submitted an Connectivity Test Checklist (due 8/2): 15 CITIGROUP ENERGY INC CITY OF FREMONT INFINITY WIND HOLDINGS, LLC J ARON & COMPANY MERRILL LYNCH COMMODITIES, INC. SARACEN ENERGY WEST TRADEMARK MERCHANT ENERGY, LLC (Former Kansas Energy, LLC) TWIN EAGLE RESOURCE MANAGEMENT, LLC UNION ELECTRIC COMPANY DBA AMEREN MISSOURI Michael Hodges

Extended Connectivity Testing The following MPs have missed their scheduled Connectivity Test Execution (scheduled 8/5 – 8/6): 16 CITY OF FREMONT ETC ENDURE ENERGY LLC MERRILL LYNCH COMMODITIES, INC. MONTEREY SWF, LLC TWIN EAGLE RESOURCE MANAGEMENT, LLC Michael Hodges

Analysis: August 12 – August Alan Adams Structured Market Trials Statistics posted the day after each OD Structured Market Trials Statistics spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder > Structured Market Trials Presentations, Statistics, MP Meetings Analysis of Aug 13, 14 and 15 Operating Days posted Tues to spp.org Analysis spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder > Structured Market Trials Presentations, Statistics, MP Meetings

Market Settlements Outstanding Questions 18 Question: Is there a way to automatically download (via API) the PDF Invoices from the Portal? Answer: The API only returns the XML Invoice. Most systems that are using the API's are getting the results to load into a database and XML is format being used. A PDF Invoice will be available and can be downloaded manually through the Portal UI (coming soon). Tony Alexander

Market Settlements Outstanding Questions 19 Question: Can SPP provide a list of Charge Types by MP type (Financial Only, Load Only, Resource Only, etc.)? Answer: Settlements Reference Tools includes 3 charge type documents. Settlements Reference Tools Charge Type be Transaction Chart shows all charge types triggered by specific market activity (Loads, Resources, Virtuals, etc.) Charge Type be Transaction Chart Developing a report specific to this question. Tony Alexander

Market Settlements Progress 20 Initial Settlements for ODs 8-5 thru 8-15 are posted. Initial Settlements for ODs 8-16 thru 8-17 are complete and being validated. Final Settlements for ODs 8-5 thru 8-8 are posted. Final Settlements for ODs 8-9 thru 8-10 are complete and being validated. Weekly Invoice for 8-22 is posted. Tony Alexander

Settlement Issues 21 KIL#TBD: TCR to Settlements Transactions - Sell Indicator Logic Change The interface between TCR/ARRs and Settlements sets the sign convention. TCR Self-Convert quantities were being incorrectly reversed (error). TCR Sell quantities were being correctly reversed (correct). The fix has been implemented. Initial Settlements for ODs Aug 14 forward will reflect correct data. Final Settlements for ODs Aug 11 forward will reflect correct data. Tony Alexander

Settlements Scorecard Delay 22 Settlements Scorecard is still being developed and tested. Targeting delivery next week. Tony Alexander

Settlements BSS and Meter Data Submission 23 CWG follow up. Issue: Market Participants would prefer to use their own BSS and Meter Data submissions in Settlements. The intent of the following slides is to raise awareness of the SMT settlement impacts. Tony Alexander

Settlements BSS Data Submission 24 The CWG has already decided that BSS metrics are not required for Market Trials. MPs are not required to submit BSS data or participate in BSS testing. Should BSS testing be removed from SMT scenarios? SPP will continue to settle and report BSS activity based on MP participation. Tony Alexander

Settlements Meter Data Submission 25 Meter data is an input to over 50% of the charge types and over 80% of the scenarios. Triggering charge types and scenarios requires the meter data to be; less than set point, more than set point, or zero, and must align to the same intervals as dispatch instructions. Different variations are required to trigger desired charge types and scenarios. Tony Alexander

Settlements Meter Data Submission 26 Additional considerations: If MAs are not submitting meter data according to set point there will be high amounts of deviation charges and credits. If MAs are not balancing Settlement Area generation, interchange, and load in their meter data submittals there will be high amounts of calibration. Settlements needs to continue to run on OD+2 until the settlement systems are able to operate according to OD+4 timeline. Meter Data submitted after OD+1 will be included on Final Settlements. Tony Alexander

Settlements Meter Data Submission 27 Below are some options to consider if MAs will be submitting their own meter data: 1) Remove charge types and settlement scenarios from Market Trials metrics. 2) Treat charge types and settlement scenarios as non-metrics, MPs will not hit them all (metrics are for reporting purposes only). 3) Settlements can trigger as many charge types and scenarios as possible by Aug 31 and then begin using MA Meter Data only. Open to other suggested options. Tony Alexander

Announcements & Outstanding Questions Update on Markets v 1.5 Installation postponed Scenario Schedule adjusted accordingly Scenario 33A & 33B Ramp Reservation: SPP Analysis ongoing SPP Pass/Fail status to be determined No Scenario 33 to be sent today Known Issue Log Meetings scheduled to review Defects prior to their migration to Production Monday, August 26 9:00-10:00A CPT register hereregister here Monday, September 9 9:00-10:00A CPT register hereregister here Monday, October 28 9:00-10:00A CPT register hereregister here 28 Carrie Simpson / Ginny Watson

Day Ahead Coverage of September SMT Beginning in September, SMT will provide 5 supported days per week (Mon – Fri) The Day Ahead Market’s Supported solutions will be executed Monday through Friday for Operating Days that fall on Tuesday through Saturday. Aligns the Day Ahead executions with other SMT support functions – such as Hot Line, IT Support, etc. Aligns the Day Ahead executions with MP’s work week for bid/offer submittal and DA Results review. 29 Jeff Fruit

Resource Offer Commitment Parameters 30 Commitment Parameters Presentation to be posted to spp.org: spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder > Structured Market Trials Reference Documents Ginny Watson

Look-Ahead: August 26 – Sept 1 31 Aug 26 – Sept 1 Daily Calendar Aug 26 – Sept 1 spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder Includes some Settlements Dates. All details on Settlements Calendar marketplace.spp.org > Public > Settlements > CalendarsSettlements Calendar Scheduled Scenarios Unstructured Testing Days – Tues 8/27, Wed 8/28 & Thurs 8/ CRD Retest Appointment via Conf. Call scheduled with individual MPs MPs wishing to participate in the retest: submit an RMS Ticket by 5P Mon 8/26 Official Operating Days – Tues Aug 27, Weds Aug 28, Thurs Aug 29 Friday Maintenance Saturday reserved for MP Testing Ginny Watson

22.0 Manual and ID RUC Commitment *Scenario 22 to be executed the week of Sept 9 Scenario Description RUC process will change the commitment period of a resource already committed in the COP either by starting the resource earlier or running the resource for additional hours. For this Scenario to work, the Resources have to be online and generating. If they are not online and generating, they are not eligible for the MWP. The following conditions will be simulated: RTBM extension of DA Market Commitment by SPP RUC Operator RTBM extension of DA Market Commitment by MP This Scenario does not apply to NDVERS and VERS with SPP provided forecast Submit an RMS Ticket labeled “Scenario 22” indicating what resources will be used in this Scenario by Sept 6 Should include the hours that the selected Resource plans to be running in the EIS Market. If possible, select a Resource that will be online all 24 hours. 32 Alan Adams

Release Scorecard 33 Release ScorecardRelease Scorecard posted to spp.org: spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder Ginny Watson

Migration and Maintenance Report 34 Migration and Maintenance Report Migration and Maintenance Report posted to spp.org spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder MT Tagged Transactions MT Tagged Transactions documentation posted to spp.org spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder > Structured Market Trials Reference Documents Wendy Reynolds

Known Issues Log 35 Market Trials Known Issues Log Market Trials Known Issues Log posted to spp.org spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder Carrie Simpson Issue #RMS #Issue TypeSynopsisSeverity 631 Markets - Other When the DAMKT case is approved at 4pm, the cleared transactions for the case that was just approved (for the next OD) is not sent. Instead, the cleared transactions for the current operating day are sent to OATI, causing current OD transactions to get updated with DA cleared results. For example, on 08/15/2013 at 4pm, the DA case for 08/16/2013 was approved, but when the interface executed, it sent DA schedules for OD 08/15/2013 (current operating day), resulting in updates to the current OD schedules instead of the next day schedules. Severity 1: Critical 655 Markets Systems Committed Resource with Fixed Regulation Dispatch Status should always be on Regulation Severity 2: High Markets Systems Currently the Fixed OR Dispatch status for regulation logic is that if the resources Offer Price is above the MCP the resource will not be selected for regulation and will not clear its fixed amount. The way the logic should work is to clear the resource for the defined amount of fixed MWs regardless of the offer price. The selection of Regulation resources by SCUC should not consider offerprice if the resource has a fixed dispatch status with a specified MW amount. The current logic is in conflict with the protocols section Severity 2: High

Scheduled Scenarios 36 Aug 26 – Sept 1 Unstructured Test Days CRD Retest Appointments Sept 2 – Sept – Day Ahead Capacity Shortage 5.2 – RUC Capacity Shortage Ginny Watson

Market Trials Useful Resources SMT Hotline: for critical & high issues Mon-Fri 8A – 5P Please submit all other inquiries via the Request Management System (RMS)Request Management System (RMS) Settlements Calendar marketplace.spp.org > Public > Settlements > Calendars Integrated Marketplace Market Trials Project Documentation Folder spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder Documents found here include: Daily Calendar, Release Scorecard, Migration Report, Known Issues Log, Market Participant Guidehere SMT Presentations, Statistics, MP Meetings Folder SMT Reference Documents Folder SMT Scenarios Folder Change Tracker spp.org > Integrated Marketplace > Marketplace Documents 37