1. SPP One Year Later Mid-West 2016 Annual Meeting
Jody Sundsted, VP of Power Marketing for UGP
Mid-West 2016 Annual Meeting
Dec. 7, 2016
Denver, Colorado

2. SPP One Year Later Expectations Merchant Settlements
Transmission/Reliability
Summary
Questions
SPP Membership Update

3. Current Operations: Cut Over
Midnight Oct. 1, 2015:
UGP transferred operational control over to SPP
Smooth transition:
No significant issues
SPP Membership Update

4. Expectations for SPP Membership
Improved market access to buy/sell surplus energy
Cost sharing of high-voltage transmission projects
WAPA transmission revenues/expenses remain relatively unchanged
Settlements work expected to increase
Anticipated changes in Transmission/Generation Control/Reliability
Administrative costs would be somewhat greater, however overall net benefit with membership
SPP Membership Update

5. Merchant:
Experienced only one transmission loading relief cut for a few hours one day in May 2016
Bilateral contracts not used to buy/sell energy, operate fully in the SPP energy market
Federal Service Exemption (market carve-out) applied successfully
Regulation up/down, spin, and reserves offered but mostly not accepted
Hydro units run on Day-Ahead schedule in the Market
SPP Membership Update

6. Oahe Generation: Actuals April 9, 2016 (4 second data)
SPP Membership Update

7. Oahe Generation: Actuals - 2015 v. 2016
SPP Membership Update

8. Settlements:
UGP receives weekly invoice from SPP for market activities and monthly SPP transmission invoices
Re-organized distributed settlements and power billing work into one new Settlements division
Settlements analytics are key to understanding financial results of your activities
Volume of work is higher than expected
SPP Membership Update

9. Market Settlements:
62 settlement charge types are shadowed to verify the market charges from SPP are correct.
SPP Membership Update

10. Transmission/Reliability:
Merged WAPA east-side (WAUE) BA into SPP BA
Reliability Coordinator Services transferred from MISO to SPP
Planning Coordinator Services transferred from Mid-Continent Area Power Pool to SPP
Eliminated OASIS Desk (40 hr/week)
Some operational issues ongoing
Accelerated number of Transmission Owners in the SPP Upper Missouri Zone (formerly IS footprint)
SPP Membership Update

11. Summary SPP provides greater flexibility
Creates more options for buying and selling
Reduces constraints in delivering power
Helps keep costs low for customers
Alternate Operations Study
$11.5 M net benefits predicted initial year savings/cost avoidance
Savings estimated to be greater
SPP Membership Update

12. Thank you
SPP Membership Update