CAWG Teleconference – January 5, 2011 Status Report to CAWG on Area Generation Connection Task Force

AGCTF presentation to CAWG November 30 – December 1, 2010 AGCTF Charter The AGCTF was formed to deal with the following: Multiple generation developers in areas of concentrated generation interest. Issuance of NTCs (Notice To Construct) for new EHV transmission lines near or through such areas. AGCTF Responsibility Developing and recommending policy to guide SPP Staff to determine the optimum method of interconnecting generation given the complex situations generally prevalent.

“Complex situations generally prevalent” Cost allocation – implications. Propriety of building highway-funded transmission for “sole use” customers? Reliability and stability? Close proximity of projects to each other and to substations Land use pressures Uncertain availability of financing for generators using “shared leads” ROW issues - blocked access across existing projects or unwilling property owners Source: AGCTF Status Report to MOPC, October 13-14, 2010

Means of combining generator leads Adding “Hubs” Shared radial generation leads to hubs Adding second circuit to newly approved transmission lines Building collection loops connected to single hub Building connections between two different hubs – collection lines or generator collection systems

AGCTF – Draft White Paper Solutions (Based upon AGCTF 1/4/11 teleconference background materials) Immediate Proposal: Hubs - SPP processes, whether stakeholder processes, or processes such as the Integrated Transmission Planning (ITP) or Generation Interconnection (GI) processes should designate hubs for generation collection on existing transmission lines, priority project transmission lines, and ITP approved transmission lines. (4.2)

AGCTF – Draft White Paper Solutions (continued) Immediate Proposal (continued): 4.2.2. NTCs for Hubs - These Designated Hub Substations will be issued an NTC in accordance with Attachment O of the OATT. Interconnections along these NTC lines will not be accepted until the NTCs have been issued by SPP, a response has been received from the designated Transmission Owner, and such response (if different from the original NTC) has been accepted and approved by SPP and its BOD (if necessary). 4.2.3. Cost Allocation for Hub Substation – Upon approval by the CAWG, these ITP designated hubs for collecting generation will be cost allocated per the Highway/Byway Cost Allocation Methodology. 4.2.4. Cost Allocation for Interconnection Equipment - Subsequent circuit breakers and line terminal equipment for interconnecting generation will follow the current cost allocation methodology in Attachment V of the OATT.

AGCTF – Draft White Paper Solutions (continued) Under consideration: Combining generator leads (5.2.1.1, Proposal A) Generation collector lines - segmented generator connections, hub-to-hub, direct or indirect route (5.2.2.1, Proposal B) Generator collection system – 300 kV collector system not connected to the existing network except at hub points. (5.2.3.1, Proposal C) Cost Allocation – Highway/byway Other: Land Use Policy Task Force Issues

AGCTF – Draft White Paper Solutions (continued) White Paper Conclusions: The recommendations included in Section 4 of this document are the AGCTF’s attempt to address duplicative substation issues and it is the ACGTF recommendation that MOPC approve these items. (6.0)

What’s next for CAWG? Concentrate first on “hub” cost allocation? Examples comparing hub cost allocation – under existing OATT and proposed method? Quantify regional and/or zonal ratepayer benefits of proposed cost allocation? Determine splits between highway (regional) and byway (zonal) cost allocation for hubs?

What’s next for CAWG? (continued) Examples comparing 3-ring vs. breaker-and-one half costs and allocation? How many hubs in region? Maps with possible hub locations? State regulatory considerations? Other?

CAWG Teleconference – January 5, 2011 Tom DeBaun – CAWG Member t.debaun@kcc.ks.gov 785-271-3135