Missouri River Energy Services and MMU FLTY Attachment O Customer Meeting October 24, 2017 Terry Wolf, Manager of Transmission Services

Agenda Meeting Purpose MRES Profile MRES and MMU FLTY for 2017 Question/Answer

Meeting Purpose MRES background Regulatory Changes / Timelines MRES and MMU specific rate information MRES true-up info on Attachment O/GG/M from 2015 incorporated into rates MMU true-up info on Attachment O from 2015 incorporated into rates True-ups from 2015 along with forecast for 2017 will be incorporated into rates to be effective on January 1, 2017.

Worthington Wind Project Red Rock Hydroelectric Plant 60 Members served Transmission: ~362 miles Generation: ~744 MW Renewable: ~86 MW Missouri River Energy Services Odin Wind Project Worthington Wind Project Marshall Wind Project Laramie River Station Exira Station Watertown Power Plant Missouri River Yellowstone River Big Horn River Canyon Ferry Dam Fort Peck Dam Yellowtail Dam Garrison Dam Oahe Dam Big Bend Dam Fort Randall Dam Gavin’s Point Dam Rugby Wind Project Point Beach Nuclear Plant Red Rock Hydroelectric Plant MBPP Irv Simmons CapX Fargo Brookings ITA MRES Member MRES Generation Resource Planned MRES Generation Resource Federal Hydroelectric Dam Transmission Projects (MBPP, Irv Simmons, ITA, CapX (Fargo, Brookings)

MRES FERC Background Transmission facilities are owned by Western Minnesota Municipal Power Agency (WMMPA) FERC Declaratory Order (EL08-22, 12/08) combines financial statements for ATRR Attachment O effective 6/1/11 Incentive filing (EL11-45, 6/11) CapX; Fargo P2 & P3, and Brookings CWIP, Abandon Plant, Hypothetical cap structure 205 filing (ER12-351, 11/11) FERC Approved ER12-351, and EL 11-45 on January 20, 2012

Regulatory / FERC Issues Complaint against MISO TOs regarding ROE and certain TOs regarding capital structure (EL14-12) and (EL15-45) EL14-12 Decision issued 9/28 10.32 ROE for MRES 10.82 ROE for MMU includes RTO adder EL15-45 Decision expected ~2/17

Regulatory / FERC Issues, Procedures and Timing cont. By June 1st Post actual calculations and true-ups based on prior year’s Rate Information By September 1st Meet with Interested Parties to discuss the actual prior year’s Rate information By October 1st Post FLTY info for MRES and MMU December 1st Deadline for information requests By January 10th Must respond to information requests January 31st Deadline for informal challenges March 15th Annual Informational filing March 31st Deadline for formal challenges

Attachment O / GG / MM MRES and MMU Forward Rate Requirements MMU doesn’t have any GG or MM costs Forward Rate Requirements Rate Base Operating Expenses Revenue Requirement and Rate Network Rate Summary

MRES 2017 FLTY Attachment O $2,730,335 Attachment GG $9,430,700 Attachment MM $4,593,543

2017 MRES Annual Transmission Revenue Requirement Distribution MRES Total ATRR Attachment O, GG, MM $20,368,825 Attachment O $6,344,582 31% $5,911,367 (After True-up) Non-MISO (SPP) UMZ PRICING ZONE $3,181,032 54% of Att O MISO OTP PRICING ZONE $2,730,335 46% of Att O Attachment GG CapX Fargo $9,430,700 46% Attachment MM CapX Brookings $ 4,593,543 23%

MRES member Attachment O Information MRES is MISO TO on behalf of 6 MRES members MRES has an agency agreement with MMU (6th agency agreement in MISO) MRES is contact for any initial questions NSP JPZ – MMU – FLTY Only member with FLTY

MMU FERC Activities Transmission facilities are owned by Marshall Municipal Utilities Commission (MMU) FERC approved filing effective 1/1/15, ER15-142 MRES filing to request RTO incentive adder ER15-2724, accepted Nov 2015 MMU is subject to refund

MMU 2017 FLTY Attachment O – Gross $3,788,123 Historic Year –True-up $151,200 Attachment O – Net $1,926,406

Questions If you have any questions after the meeting, please submit via e-mail to Terry Wolf: twolf@mrenergy.com All questions and answers will be posted on the MRES OASIS website along with any follow-up questions received within two weeks from the date of inquiry on the OASIS site. (http://oasis.midwestiso.org/OASIS/MRET )