1. Basin Electric SPP Market Update
Ken Rutter

2. Agenda - Market Prices - Economic Dispatch - Congestion
- Other Benefits
- Transmission
- Summary
Lyn

3. Market Pricing Overview:
Low market prices due to low natural gas prices and new wind energy
Significant purchased power savings
Very low volatility in day-ahead prices
Regional constraints
Surprises:
Very low congestion
Amount of negative prices
Wind impact
Price disparity North to South
$20.27/MWh Average

4. Economic Dispatch Overview: Plants performing well to 5 minute market
Higher than expected nat gas generation
Limited value for ancillary services
Limited short-term economic shutdowns
Surprises:
Nat gas peaking generation dispatch
Low ancillary value
Coal shut downs
Very solid fuel savings MW
AVS Baseload Coal
Lonesome Creek Nat Gas Peaker

5. Congestion Management
Overview:
Day-Ahead exposure covered by financial hedging tools
Congestion has not been significant
Surprises:
Financial hedges sufficient
Good funding levels
How much transmission outage changes impact congestion outcomes
Locational Marginal Price

6. Other Benefits Overview:
Meaningful fuel savings due to better dispatch
Lower financial losses in SPP vs. old physical scheduled market
Wind additions have significant impacts on prices
Member benefits of transmission additions
Surprises:
Growth in wind additions
Financial losses almost 2% below old market
WAPA allocations effective

7. Transmission Overview: Smooth transition
No interruption to reliability
Completed FERC settlement process
Benefit of regional cost sharing on transmission expansion
Strong Member driven processes

8. Summary of Some Market Benefits
Purchase Power Access $37.2 million
Ancillary Services $ 2.8
Market Fees $(5.1)
Optimized Sales / Purchase Opportunities $ 6.0
Congestion $ 6.1
Losses $ 5.0
Economic Dispatch (50% of coal fuel savings) $ 7.5
Subtotal: $59.6 million

9. Questions