1. Z2 Crediting Project Update RTWG
November 19, 2015
Chuck Jennings, PMO
Charles Locke, Regulatory

2. Current Project Status
Project Phase: Execution
Status: Green
Changes to requirements/scope: 5*
Removed the LCI interface Addition of an interface for the Triple R file
New Inbound Interface for redirects Treatment of Long Term Redirects
End Dating needed for CSS data
In process work:
Module 2 Testing is underway
Module 3 Technical Design & Development is underway
Module 3 Test Planning is ongoing
Business Process & SOC1 Audit Control documentation is underway
What’s been completed since the last update:
Module 3 Functional Design completed later than scheduled. Should not impact end date
TSR Stacking is complete
Completed Module 2 R2 Development

3. Project Issues and Risks
Issue: Missing/Incorrect upgrade sponsor information
SPP did not receive the necessary final upgrade costs from several sponsors by the November 1st deadline
Mitigation: SPP Customer Relations is aggressively reaching out to upgrade sponsors to collect the needed data as well as working with SPP Legal and Executive Staff to secure the missing information
Implications if not mitigated:
Calculations could be in error and resettlements would be needed once the data is corrected
Workarounds
None

4. Project Next Steps Upcoming Activities
Complete technical design and approval of Module 3
Complete testing of Module 2
Continue building business processes and audit controls
Complete Module 3 Test Planning and Preparation
Obtain final costs from upgrade sponsors
Project Milestone Tracking (November – December)
Complete Technical Design Module 3
Complete Module 3 Development
Complete Module 2 SAT/SIT
Complete Module 3 SAT/SIT

5. Z2 Communication Strategy
Communication branches
Ongoing updates to
RTWG, Z2 PPTF, and CPTF
CWG
Additional updates to
MOPC at each quarterly meeting
SUG
Updated as information becomes available
Member Impacting Project Overview (MIPO)
Technical Specifications for Shadow Settlement purposes

6. Z2 System Implementation Steps
Task Name
Start
Finish
Status
Functional Design
Mon 4/27/15
Wed 10/13/15
Module 1 - FD - Core, Workflow, Inbound APIs & Staging, MODULE 1 UI
Tue 6/16/15
Completed
Module 2 - FD - ST/LT Stacking, Gross CPO Calcs, MODULE 2 UI
Fri 6/5/15
Wed 7/22/15
Module 3 - FD - Offsets, Settlement Calcs, MODULE 3 UI, Outbound APIs
Wed 7/15/15
Tue 10/13/15
Completed / Late
Technical Design
Mon 6/1/15
Tue 10/6/15
Module 1 - TD - Core, Workflow, Inbound APIs & Staging, MODULE 1 UI
Mon 7/13/15
Module 2 - TD - ST/LT Stacking, Gross CPO Calcs, MODULE 2 UI
Thu 7/9/15
Wed 8/26/15
Module 3 - TD - Offsets, Settlement Calcs, MODULE 3 UI, Outbound APIs
Tue 9/1/15
Tue 11/3/15
 In process / Lagging**
Build & Unit Test & FAT
Mon 6/29/15
Tue 11/24/15
Module 1 - Build, UT/FAT - Core, Workflow, Inbound APIs & Staging, MODULE 1 UI
Mon 8/10/15
Module 2 - Build, UT/FAT - ST/LT Stacking, Gross CPO Calcs, MODULE 2 UI
Thu 8/13/15
Thu 10/8/15
Module 3 - Build, UT/FAT - Offsets, Settlement Calcs, MODULE 3 UI, Outbound APIs
Wed 10/7/15
 In Process / Lagging**
Testing
Tue 8/11/15
Wed 1/13/16
Installation & SAT/SIT/FIT
Fri 12/18/15
Module 1 - SAT/SIT/FIT - Core, Workflow, Inbound APIs & Staging, MODULE 1 UI
Tue 9/15/15
Completed 
Module 2 - SAT/SIT/FIT - Stack, Gross CPO Calcs, MODULE 2 UI
Fri 10/9/15
Tue 12/1/15
Module 3 - SAT/SIT/FIT - Offsets, Settlement Calcs, MODULE 3 UI, Outbound APIs
Mon 11/30/15
End-to-End Test / UAT
Mon 12/28/15
Unstructured Member Testing
Wed 12/30/15
Tue 1/19/16
Performance Testing
Tue 12/29/15
Final Installation and system prep - Credit Stacking System
Fri 1/29/16
Code Freeze
Production Ready System*
*Note: System is ready for production processing to begin. Production processing will not begin until the MOPC has had an opportunity to review the historical amounts. Timing to complete the historical processing is yet to be determined.
**Note: This delay is not expected to delay the overall project schedule.

7. Z2 Settlement Implementation Steps
Calculation of historical period estimates for stakeholders March 2016
MOPC and working groups provide feedback on estimates April 2016
Update historical values to settlements Start Month
Begin settlement of historical period amounts (1)(2) Start Month
Begin settlement of monthly amounts going forward (2) Start Month
Method and timing of settling historical amounts is under discussion in the Z2 Payment Plan Task Force
Settlement of monthly amounts going forward and settlement of historical amounts are anticipated to start in the same month

8. Interest on Creditable Balances
Before the Start Month, interest will be accrued on the Creditable Balances of initial sponsors only
Beginning with the Start Month, interest will be accrued on the Creditable Balances of all Upgrade Sponsors
This interest will increase the amount each sponsor is eligible to receive over time
This interest will not increase the monthly credit payments of subsequent transmission reservations but might increase the number of future reservations that must pay credits
This interest is distinct from interest that may be charged and distributed due to implementation of a payment plan

9. FERC Filings
SPP is currently reviewing whether any FERC filings will be necessary prior to implementation due to the delay in implementing the crediting process
SPP Legal/Regulatory working with FERC counsel
Will follow up with the RTWG and CPTF once the review is complete

10. Member Action Items Provide final upgrade costs ASAP
Complete Unstructured Member Testing between 12/30/15 and 1/19/16
Review session for all stakeholders planned for January
New confidentiality agreements will be needed
Communicate Z2 status within your respective companies

11. Key Takeaways Unstructured Member Testing 12/30/15 – 1/19/16
Members onsite at SPP for system validation January 2016
Members tentatively scheduled to receive historical numbers March 2016

12. Questions 5

13. Z2 Crediting Update Point of Contact Chuck Jennings, cjennings@spp.org