SPP Presentation Stakeholder Meeting April 16, 2008 Austin, Texas UPDATE: Retail Open Access for ETI within SPP

2 Solution Goals  Implement ROA for ETI in accordance with Commission directive  Leverage existing ERCOT and SPP systems and rules – make as few changes as possible

3 Task Completion Since Last Meeting  Coordinated with ERCOT staff regarding data available – have solution which will not require new functionality for ERCOT  Further explored options for roles of REPs/ETI under SPP tariff

4 Major Components of ROA for ETI in SPP 1. ETI & REP retail transactions with ERCOT (set-up and on-going interaction) 2. ESI ID data collected from ERCOT’s customer registration system and aggregated 3. REP access to transmission and scheduling in SPP 4. Energy and Transmission Settlement and Invoicing for REPs

5 Data Flow Process * Registration the same regardless if ETI is part of ERCOT or SPP Set-Up and Registration ESI ID Data Collected Transmission & Scheduling Settlements Invoicing

6 Part 1: ETI and REPs - retail transactions with ERCOT  ETI and REPs (including ETI’s affiliated REP) must register, set up and test with ERCOT  Registration process and retail transactions are the same whether ETI is part of ERCOT or SPP region  ERCOT has an existing data validation and dispute process (MarketTrak)  Setting ETI up in ERCOT’s customer registration system will be similar to the process ERCOT uses for setting up a municipal or cooperative utility which decides to opt into competition (See the opt in checklist at

7 7 Part 2: Data Collection  Best solution – Data Extract from ERCOT:  ESI ID Service History and Usage Extract (called SCR727)  Will provides raw usage data by REP needed to settle with REPs in the ETI area  Data Available: choice of provider, usage levels, profile codes, region codes, nodal codes, loss codes, station codes, zip codes, ESI ID, etc.  For more information, see the user guide at:  ETI (as a TDSP) would receive SCR727 extracts from ERCOT. REPs receive same information, but for own customers only.  Data in the SCR727 is not aggregated. It must be aggregated before it can be used in SPP’s systems. Either ETI or SPP could perform this function. If SPP performs aggregation, SPP would need access SCR727 extra data through a digital certificate provided by ETI.  This solution does not require a direct relationship between ERCOT and SPP for data transfer.

8 Part 3: Transmission Access and Scheduling Two options: 1) ETI interfaces with SPP on behalf of REPs operating in its area (Umbrella Option) ETI takes transmission service (Network Integration Service) and schedules (resource plans, ancillary service plan) for ETI area ETI would (allocate pro rata share of network service and ancillary service costs to REPs Under this scenario, ETI is the Transmission Customer for its region and REPs do not need to be Transmission Customers ETI would designate network resources for the entire area (Need process to allow REPs to identify resources to ETI) 2) REPs function as Transmission Customers under the SPP tariff and make own transmission access and scheduling arrangements (REPs as TCs) REPs would have to designate resources and comply with all other requirements for operation as a Transmission Customer – uses existing SPP systems REPs can be settled using SPP’s existing system (if needed data from ERCOT is aggregated and entered)

9 Part 4: Settlement  SPP can calculate a zonal load price and assign that price to one or more LSE settlement locations, eliminating the need to incorporate real time variable load share data into its real-time system  SPP can use its current system to establish price by zone with ETI as a single zone (or possibly two zones based on transmission constraints) with boundary meters used to establish initial load values for the entire area  If ETI takes service and schedules on behalf of REPs in the area, a separate system will be needed to invoice REPs for their share of balancing energy  ETI will need to invoice REPs for TDSP/TO charges (similar interaction whether in ERCOT or SPP)

10 NEW functionality needed to support ETI - SPP ROA  Data from ERCOT must be aggregated and entered in a manner that allows for settlement of REPs  ETI needs ability to bill REPs for TDSP/TO services [Similar functionality whether part of ERCOT or SPP]  REPs must be settled and receive invoices for balancing energy (if REPs function as Transmission Customers, SPP’s existing system may be able to accommodate this)

11 Next Steps  Identify impacts to SPP staffing in supporting ROA  Determine high level cost estimates for potential solutions (for data aggregation, settlement and balancing energy invoicing)

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