1. Generator Interconnection Studies & Agreements Charles Hendrix

2. Generator Interconnection Service Energy Resource Interconnection Service – allows a generator to be eligible to use the existing firm or non-firm capacity of the Transmission System on an “as available” basis –Customer must still request Transmission Service Network Resource Interconnection Service – allows the Transmission Owner to construct the necessary upgrades to integrate the generator into the Transmission System in a manner comparable with other Network Resources –Customer must still request Transmission Service 2

3. Generator Interconnection Service Neither Energy Resource Interconnection Service or Network Resource Interconnection Service gives the generator any right to deliver energy to any customer or point of delivery 3

4. Generator Interconnection Studies Process Definitive Interconnection System Impact Study (DISIS) – Studied in Clusters Facility Study Limited Operation Study Interconnection Agreement 4

5. DISIS – Powerflow Analysis Models built from the Integrated Transmission Planning Models Includes all upgrades with NTC Includes a look over the 10 year planning horizon so no short term outages accounted for SPP Footprint divided into 12 sub-regions (groups) for interconnection study purposes 5

6. DISIS – Powerflow Analysis Distinct dispatch for each interconnection request in the cluster study for each season All Energy studied to be sunk in SPP footprint 6

7. DISIS – Powerflow Analysis AC Contingency Analysis Constraints Identified and transmission reinforcements required for –ERIS – overloads with 20% sensitivity factor –NRIS – overloads with 3% sensitivity factor Neither ERIS nor NRIS conveys right to deliver Upgrade Costs shared on a MW impact basis 7

8. DISIS – Transmission Upgrades If long lead time upgrades with NTC are found to mitigate the constraints identified in the DISIS Study, this is documented in the study as a required upgrade for the Generator This requirement also documented in the Generator Interconnection Agreement (GIA) 8

9. Facility Studies Performed by the transmission owner +/- 20% estimate of interconnection facilities and network upgrades Short Circuit Analysis – verify circuit breaker duty ratings 9

10. Limited Operation Impact Study (LOIS) Customer may request to interconnect before the completion of long lead time upgrades identified in the DISIS An additional study (LOIS) is evaluated taking the following into consideration –Customer’s requested COD –Higher-queued generation in service  Neglecting generators that haven’t built –Existing transmission infrastructure 10

11. Limited Operation Impact Study (LOIS) AC Contingency Analysis Constraints Identified – LOIS may be denied (or temporary cap identified) for –Overloads with 20% sensitivity factor Otherwise Generator can interconnect on ‘as available’ basis until higher queued generator comes into service Conditions documented in GIA 11

12. Interconnection Agreement Draft GIA presented to Customer after completion of Facility Study Customer given 60 days to negotiate with transmission owner for construction milestones GIA is finalized, executed, and filed at FERC if necessary 12

13. Questions 13