1. 2016-2017 Annual ARR Registration Workshop January 7, 2015

2. Disclaimer The following materials are intended for use as training materials only and are not intended to convey, support, prescribe or limit any market participant activities. These materials do not act as a governing document over any market rules or business practices manual. The data used in the scenarios is test data in a test environment, and should not be used to support market analyses. This material is based on current system and process designs, and Business Practices Manuals in effect as of the date of the training and are subject to change based on stakeholder input.

3. Outline Key takeaways Objectives Registration Calendar Overview ARR Registration Walkthrough Appendix –Definitions –Abbreviations –References

4. Key takeaways Market Participants will now be reviewing the entire set of PTP, GFA, and Network ARR Entitlements in a single Entitlement Validation/Review phase (02/01/2016 – 02/05/2016) Only electronic approval is required for PTP and GFA ARR Entitlements Market Participants can review their NPLF by ARR Zone from 01/18/2016 – 01/22/2016

5. Objective of this Workshop ARR Registration Calendar ARR Registration Walkthrough ARR Admin Tool Training 5

6. 2016-2017 Calendar https://www.misoenergy.org/_layouts/MISO/ECM/Redirect.aspx?ID=211771

7. ARR Registration ARR Registration is the process of converting eligible Transmission Entitlements into ARR Entitlements which can then be nominated by the Market Participant in the ARR Allocation –Market Participants that are eligible for ARRs must participate in ARR Registration to receive them –MISO works with Market Participants to establish the set of Transmission Entitlements that are eligible for ARR allocation –Transmission services eligible for conversion to ARRs must be registered with MISO Point-to-Point Firm Transmission Service Grandfathered Agreements (GFAs) Network Integration Transmission Service (NITS) 7

8. PTP and GFA ARR Entitlements Review

9. PTP and GFA Transmission Entitlements Review Market Participants will review their GFA and PTP transmission entitlements which usually remains unchanged and carry over from the previous year’s ARR Registration –Electronic approval only is required for these entitlements. There is no need for a signed paper copy. Market Participants will be able to request changes to the ARR Entitlements created based on previous year’s ARR Registration –January 08, 2016 is the deadline for requesting such changes 9

10. New Point-to-Point transmission services Market Participants can request inclusion of Firm Yearly Point-to- Point transmission services in the upcoming 2016-2017 ARR Registration if they have not qualified/included in the recently concluded RSP process These new Point-to-Point transmission services are eligible for Stage 2 ARR compensation, and may be submitted for inclusion in Stage 1A/1B in future RSP request periods. –January 08, 2016 is the deadline for requesting such addition 10

11. PTP/GFA approval process Market Participants with GFA and PTP entitlements review their Transmission Entitlements and submit for MISO review MISO reviews and enables MPs to select Sign Off option MPs electronically approves the entitlements 11 Review and accept TEs Submit for MISO Review Review and Accept TEs Open Signoff Report Sign Off (button at the end of the Signoff report) Market Participant MISO Enable MP for Signoff

12. PTP/GFA Transmission Entitlement Approval Overview MP clicks on the pencil, changes the status to "Processed", adds a comment, closes window (this will refresh the screen with the change) or Use Select All function and then clicks on “Set to Processed” button MP clicks box next to each Entitlement individually and subsequently selects “Process MP Status” to accept or Use Select All function and then clicks on “Process MP Status” button Once the MP has Processed and Accepted all of their Entitlements, they select “Ready for Review”MISO reviews and accepts the EntitlementsMISO enables MP to electronically SignoffMP selects Signoff Report, scrolls to bottom, prints and selects "Sign Off“ 12

13. Login Access to ARR Admin Tool The MISO Market Portal contains the links for accessing the ARR Admin Tool. For any new Market Portal users created for participation in the ARR Registration, the “ARR Administration” role to grant privileges must be properly set. Please contact your Client Account Representative at (866) 296-6476 or clientrelations@misoenergy.org for additional details on any login issues. clientrelations@misoenergy.org 13

14. Login to the ARR Admin Tool 14

15. PTP/GFA Entitlements Validation and Signoff screen Filter to display entitlements through various fields 15

16. PTP/GFA Entitlements Validation and Signoff screen Processing and Accepting Transmission Entitlements Processed Status changes to Processed once the MP selects the pencil next to the specific Transmission Entitlement and changes the Processed Status to “Processed” or uses “Set to Processed” functionality to update all Entitlements at the same time When the user checks the box corresponding to a TE and chooses “Process MP Status” the MP Status field is updated to reflect the action taken 16

17. PTP/GFA Entitlements-Submit for MISO Review SUBMIT FOR REVIEW button is enabled After submitted the button is disabled 17

18. PTP/GFA Entitlements-Electronic Signoff Once MISO reviews and accepts all entitlements and enables the Market Participant to electronically sign off SIGN OFF REPORT button is enabled 18

19. PTP/GFA Entitlements-Signoff Report “SIGN OFF REPORT” button brings up the report 19

20. PTP/GFA Entitlements-Signoff Report Market Participants with PTP/GFA entitlements must scroll down to the bottom of the report and click the signoff button Market Participants must click SIGN OFF to complete the official signoff. 20

21. PTP/GFA Entitlements-Signoff Report The “SIGN OFF” button at the bottom of the report MUST be clicked for the signoff to be registered on the tool –This is necessary to accept any GFA/PTP ARR Entitlements The Signoff Report may be retrieved as many times as needed by clicking on the “SIGN OFF REPORT” button on the Entitlement Validation Signoff screen 21

22. How to view PTP/GFA ARR Entitlements Transmission Entitlement MP Status MISO Status ARR Entitlements 22

23. Network ARR Entitlements review

24. NITS ARR Entitlements Market Participants can review their Network ARR Entitlements using the ARR Definition link on the ARR Admin Tool –Entitlements carry over from prior year’s ARR Registration –ARR Entitlements removed based on approved RSP Terminations –ARR Entitlements added/changed based on approved RSP processes Market Participants will not be able to view the following ARR Entitlements in the ARR Admin Tool but will be available for review prior to ARR Nomination : –ARR Entitlements based on “PRSS Option” selection in the approved RSP requests –ARR Entitlements eligible for Stage 2 Allocation only 24

25. ARR Entitlement Screenshot Transmission Entitlement ARR Entitlements 25

26. How to download ARR Entitlements? Market Participants can review and download their ARR Entitlements using the ARR Definition link on the ARR Admin Tool Market Participants may also download their existing set of LTTRs from this screen 26

27. NITS Peak Load Forecast Review

28. NPLF Review Prior to the 2013-2014 annual process, the NPLF values were uploaded to the MISO ARR Admin via the MW profile column on the Network Transmission Entitlements page For the 2016-2017 annual process, this data will be uploaded directly to the Nomination interface screen on the MUI –Notification will be posted after this data has been uploaded –Please verify the uploaded NPLF value. It represents the NITS Peak Load Forecast (NPLF) value that will determine the nomination cap for the Annual ARR Allocation. This value is based on the Non Coincident Peak Forecast submitted via the Module E Capacity Tool 28

29. NPLF Review (Continued) NPLF Values 29

30. Who to contact? Please route all Registration-related inquiries through the MISO Client Relations department at 866.296.6476. The team can also be reached via e-mail at clientrelations@misoenergy.org. 30

31. Appendix

32. ARR Entitlements Overview ARR Entitlement consists of converting Transmission Entitlements into ARR Entitlements by assigning a MW amount to each one of a set of eligible source/sink CPNode combinations TE Source: AREA1 Sink: AREA2 MW profile: 10 MW AE1 Source: A1.CPNode1 Sink: A2.CPNode2 MW amount: 3 MW AE2 Source: A1.CPNode1 Sink: A2.CPNode3 MW amount: 3 MW AE3 Source: A1.CPNode4 Sink: A2.CPNode5 MW amount: 4 MW Definition TE: Transmission Entitlement AE: ARR Entitlements 32

33. Definitions Auction Revenue Rights (ARR): A Market Participant’s entitlements to a share of the revenues generated in the Annual FTR Auction Long-term Transmission Right (LTTR): ARRs allocated in Stage 1A of the Annual ARR Allocation process. LTTRs carry annual rollover rights lasting ten (10) years or more Reference Year: March 1, 2004 to February 28, 2005 (North and Central Regions) or June 1, 2012 to May 31, 2013 (Southern Region) Baseload usage: 50% of the forecasted non-coincident peak load for a Market Participant (MP) for the upcoming allocation year Year 1: ARR Allocation year for the period of June 1, 2008 to May 31, 2009 or June 1, 2014 to May 31, 2015 ARR Zones: Electrical areas defined for the purpose of allocating ARRs based upon locations where a Market Participant serves Load

34. Definitions (Continued) Reserved Source Point (RSP): A resource that has met the Resource Qualification Requirements for an ARR Zone Peak Reserved Source Set (PRSS): All RSPs corresponding to an ARR Zone Baseload Reserved Source Set (BRSS): RSPs that have 50% or greater capacity/scheduling factor Transmission Entitlement: Representation of the transmission usage that serves as a basis for definition of ARR Entitlements ARR Entitlement: The transmission usage, upgrades or other basis for a Market Participant’s right to nominate and be allocated ARRs

35. References FTR/ARR related documentation –ARR Registration Manual http://www.misoenergy.org > Markets and Operations > Market Information > Financial Transmission Rights and Auction Revenue Rights > FTR ARR Reference Documentshttp://www.misoenergy.org –FTR User Manual http://www.misoenergy.org > Markets and Operations > Market Information > Financial Transmission Rights and Auction Revenue Rightshttp://www.misoenergy.org –ARR/FTR Training http://www.misoenergy.org > Markets and Operations > Market Information > Financial Transmission Rights and Auction Revenue Rights > FTR ARR Reference Documentshttp://www.misoenergy.org –General ARR/FTR Reference Material http://www.misoenergy.org > Markets and Operations > Market Information > Financial Transmission Rights and Auction Revenue Rights > FTR ARR Reference Documentshttp://www.misoenergy.org Business Practices Manual (BPM) for Financial Transmission Rights and Auction Revenue Rights http://www.misoenergy.org > Library > Business Practices Manuals (BPMs)http://www.misoenergy.org

36. References (Continued) FTR/ARR related documentation –ARR/FTR 100 Level Training http://www.misoenergy.org > Training > Market Participant Training > 100 Levelhttp://www.misoenergy.org –ARR/FTR 200 Level Training http://www.misoenergy.org > Training > Market Participant Training > 200 Levelhttp://www.misoenergy.org

37. Common Abbreviations AE– ARR Entitlement ARR– Auction Revenue Rights GFA – Grandfathered Agreement LTTR – Long Term Transmission Right MP – Market Participant NITS – Network Integration Transmission Service NPLF – NITS Peak Load Forecast PTP – Point-to-Point RE – Responsible Entity RSPs – Reserved Source Points SFT – Simultaneous Feasibility Test TE – Transmission Entitlement