SPP One Year Later Mid-West 2016 Annual Meeting Jody Sundsted, VP of Power Marketing for UGP Mid-West 2016 Annual Meeting Dec. 7, 2016 Denver, Colorado

SPP One Year Later Expectations Merchant Settlements Transmission/Reliability Summary Questions SPP Membership Update

Current Operations: Cut Over Midnight Oct. 1, 2015: UGP transferred operational control over to SPP Smooth transition: No significant issues SPP Membership Update

Expectations for SPP Membership Improved market access to buy/sell surplus energy Cost sharing of high-voltage transmission projects WAPA transmission revenues/expenses remain relatively unchanged Settlements work expected to increase Anticipated changes in Transmission/Generation Control/Reliability Administrative costs would be somewhat greater, however overall net benefit with membership SPP Membership Update

Merchant: Experienced only one transmission loading relief cut for a few hours one day in May 2016 Bilateral contracts not used to buy/sell energy, operate fully in the SPP energy market Federal Service Exemption (market carve-out) applied successfully Regulation up/down, spin, and reserves offered but mostly not accepted Hydro units run on Day-Ahead schedule in the Market SPP Membership Update

Oahe Generation: Actuals April 9, 2016 (4 second data) SPP Membership Update

Oahe Generation: Actuals - 2015 v. 2016 SPP Membership Update

Settlements: UGP receives weekly invoice from SPP for market activities and monthly SPP transmission invoices Re-organized distributed settlements and power billing work into one new Settlements division Settlements analytics are key to understanding financial results of your activities Volume of work is higher than expected SPP Membership Update

Market Settlements: 62 settlement charge types are shadowed to verify the market charges from SPP are correct. SPP Membership Update

Transmission/Reliability: Merged WAPA east-side (WAUE) BA into SPP BA Reliability Coordinator Services transferred from MISO to SPP Planning Coordinator Services transferred from Mid-Continent Area Power Pool to SPP Eliminated OASIS Desk (40 hr/week) Some operational issues ongoing Accelerated number of Transmission Owners in the SPP Upper Missouri Zone (formerly IS footprint) SPP Membership Update

Summary SPP provides greater flexibility Creates more options for buying and selling Reduces constraints in delivering power Helps keep costs low for customers Alternate Operations Study $11.5 M net benefits predicted initial year savings/cost avoidance Savings estimated to be greater SPP Membership Update

Thank you SPP Membership Update