Tariff Change Recommendations to the Commercial Practices Committee From the Regional Tariff Working Group

RTWG Roster Company Representative AEP-WestMr. Dennis BethelMember (TO) Arkansas Electric CooP. Corp.Mr. Ricky Bittle Chair (TC) Coral Power TradingMr. Rick Rucker Member (TC) Dynegy Marketing and TradeMs. Kim Casey Member (TC) Empire District Elect. Co.Mr. Rick McCord Member (TO) ENRON Power Marketing, Inc.Mr. Ron McNamara Member (TC) East Texas Electric CooperativeMr. Wayne Miller Member (TC) Jonesboro City Water and LightMr. Rick HenleyMember (TC) Kansas City Power & LightMr. Ron Kite Member (TO) KPL, Western Resources, Inc.Mr. Dennis Reed Vice-Chair (TO) Missouri Public Svc. Comm.Mr. Mike Proctor Member OG+E Electric ServicesMr. John Gunesch Jr.Member (TO) Oklahoma Municipal Power Mr. Gene Anderson Member (TC) Southwest Power PoolMr. Pat Bourne Secretary Southwestern Power Admin.Mr. James Sherwood Member (TO) Southwestern Public Service Co.Mr. David Grover Member (TO) Tenaska Power Services Co.Mr. Mark Foreman Member (TC) Western Farmers ElectricMr. Gary Roulet Member (TO)

Recommended Changes  Revise Attachment P – Timing Requirements for Reservations & Schedules  Incorporate NERC Next-Hour-Market Provisions  Include new Attachment Y – Flexible Use Transmission Service (Experimental)  Revise Scheduling Penalty Provisions -(Sec. 13.7)  Revise NERC TLR Procedures  Revise Sections 2.2 and 22 – Reservation Priority and Right of First Refusal

Revise Attachment P  Background –Attachment P Timing Specifications are not compliant with FERC Order 638 –Although present Attachment P specifications may be arguably better than Order 638 specifications, standardization with adjoining Transmission Providers was viewed to be the greater good  Recommendation –Approve the revisions which reflect compliance

Include Next-Hour-Market Provisions  Background –NERC has proposed tariff modifications which have been approved by the FERC  Recommendation –Approve incorporation of the FERC approved language into the SPP OATT to Facilitate Next- Hour-Market activities

Add New Attachment Y  Background –The EOC has approved a phased implementation of the proposal to increase transmission system utilization –The proposed new Attachment Y provides for a one-year experimental implementation of the first phase  Recommendation –Approve the addition of Attachment Y to the SPP OATT

Scheduling Penalty Change  Background –The proposed change reduces the penalty to 200% of actual excess use –SPP scheduling software has been modified to reject tags that are in excess of the corresponding reservation  Recommendation –Approve the proposed revisions to Sec. 13.7

Revise TLR Procedures  Background –NERC has revised its TLR Procedures –NERC has recently revised its IDC to implement the new procedures –Procedures included in the SPP OATT as Attachment R require replacement  Recommendation –Approve a revision to Attachment R which states that currently effective NERC TLR Procedures are incorporated by reference

Sections 2.2 and 22 ROFR Issues  Background –ROFR issues discussed extensively at the RTWG –These revisions clarify the rights and obligations of both incumbent and new customers

Sections 2.2 ROFR Issues Change Time Frame to Respond to a competing request –Notify Both there is a competing Request –System Impact Study –Current User with ROFR must respond within 60 days of notification of a contingent service agreement –Customer given reservation pays for System Impact Study, If competing request is awarded any service it pays

Sections 22 ROFR Issues Clarify that requesting a change in path for an existing firm transmission reservation with remaining term of less than 1 year does not have ROFR –Treated as a new request

Sections 2.2 and 22 ROFR Issues  Recommendation –Approve the proposed revisions to Sec.2.2 and Sec. 22

Ongoing Consideration of Major Issues  Tariff modifications for state retail restructuring programs  Pro Forma Generation Interconnection Agreement  Consistent standards for rate basing transmission facilities  Ultimate rate design for SPP Tariff