Project Tracking Update July 12, 2011 MOPC

2 STEP List (Excel Spreadsheet) –Engineers enter technical data and analysis on upgrades –Used as a repository for all information on Transmission Upgrades –Cumbersome and hard to update –Historical record  STEP list contains all upgrade information, even when project is completed or withdrawn Project Tracking Tools (Historical)

Project Tracking (New) Project Tracking Database – Phase 1 –Upgrades tracked from NTC creation to rate recovery through the life of the Upgrade – Easier data retrieval  Quicker information response  Eliminates multiple data requests –No impacts to members in Phase 1 –Future phases of project  Member database access  Flexible communications for Transmission Owners and SPP 3

Project Tracking – Member Impact No impact to members –Members will see no changes in their construction project interaction with SPP –SPP employees will gather project information and input into database same as today –Members have data that is more secure 4

ITP Status Update July 12, 2011 MOPC

2011 ITP10 Stakeholder Activities TWG completed the Constraint Assessment ESWG approved the resource plans for the two futures –Future 1 – Business as Usual –Future 2 – EPA Rules with Additional Wind: Adds additional wind generation and approximates the impact of EPA rulemaking by imposing retirements on small coal plants and a tax on carbon emissions ESWG authorized calculation and utilization of metrics for ITP10 6

2011 ITP10 Stakeholder Activities Metric Calculation – 9 metrics from ITP20 – Adjusted Production Cost – Value of Improved Available Transfer Capabilities – Reduced Losses – Impact on Losses Capacity – Levelization of LMP’s – Improved Competition in SPP Markets – Limited Export/Import Improvements – Reduction of Emission Rates and Values – Ability to Serve new Load 7

2011 ITP10 Stakeholder Activities Metric Calculation –Two additional metrics calculated  Backstop to Catastrophic Events  Value of replacing previously approved projects 8

2011 ITP10 Completed Staff Activities Model Development completed –Topology updates, baseline fuel costs, etc. Quality Control –Stakeholder Review –dispatches –flowgate loadings –LMP prices –generator outages 9

2011 ITP10 Upcoming Activities Identifying ITP10 potential violations –Reliability analysis of AC models with economic dispatches –Economic analysis of security-constrained economic dispatch models  List of Top 10 congested constraints will be compiled –ITP20 projects reviewed as potential ITP10 solutions –Staff developing strawman for incorporating seams projects 10

2011 ITPNT Activities Identification of potential violations Developed recommended plan for 100 kV and above upgrades Recommended plan will be presented at upcoming SPP Summit Developing recommended plan for below 100 kV 11

July Planning Summit – Dallas, TX on July 21 st – Discuss ITP10 potential violations (reliability, economic, and stability) – Start selecting ITP10 projects – Discuss ITPNT upgrades – Sub-Regional & Local Area Breakout Discussions September Planning Summit ITP Next Steps 12

October MOPC – Present draft solutions – 2011 ITP10 & ITPNT Draft Report December Workshop – Tentative January MOPC – Present final transmission plan – 2011 ITP10 & ITPNT Final Report – 2011 STEP Report ITP Next Steps 13

Generator Interconnection and Aggregate Study Process Internal review update 14

Background – General dissatisfaction expressed in customer satisfaction survey Goals for Staff review – Understand concerns driving lower survey results  Staff performance?  Dissatisfaction with results?  Process? – Identify opportunities for improvement Background and Purpose 15

Common themes of feedback to-date – Length of time it takes to get through process and have certainty in requirements to approve requested service still too long – Impacts caused by shear volume of wind-related or other “speculative” requests on “ready to-go” projects – Lack of process to finalize third party impacts Staff completing internal process review – Business process review – Tools – Resource requirements Update 16

Initiatives underway – SPP TSR Coordination with Third Party Systems – Third Party TSR Coordination with SPP – DPT Prescreen – Aggregate Study Withdrawal Costs Staff complete internal review Work with appropriate committees to assess potential process improvement proposals ATP Business Practice Next Steps 17

18 Katherine Prewitt Director, Planning Lanny Nickell Vice President, Engineering