1. SPP.org 1

2. DRCC June 2008 National Town Meeting SPP Regional Transmission Organization Update

3. SPP.org 3 SPP RTO Update on DR Developments SPP has three organizational units working on various aspects of demand response:  Demand Response Task Force  Customer Response Task Force  Cost Benefit Task Force

4. SPP.org 4 Demand Response Task Force (DRTF)  The purpose is to incorporate demand response into SPP’s real-time energy imbalance market. This market was successfully implemented on February 1, 2007.  A Protocol Revision Request (PRR) has been drafted and still is in committee review at SPP.  Variable Dispatch Demand Response - offer and deployment identical to current generation resources  Block Dispatch Demand Response - offer is for fixed MW blocks at a price SPP RTO Update on DR Developments

5. SPP.org 5 SPP RTO Update on DR Developments Customer Response Task Force (CRTF)  Conduct a "State-of-the-art" (within SPP) DR survey & dissemination of such;  This is in process and Lawrence Berkeley National Laboratory is providing guidance and analysis  Provide for Member education as to potential benefits and institutional barriers;  An educational forum for SPP’s Members, Board, and State Regulators is being planned for July 2008.  Conduct an analysis of the discontinuities between wholesale and retail markets as to DR; and  Conduct an analysis of the interplays of DR with performing future benefit/cost analyses.

6. SPP.org 6 Cost Benefit Task Force (CBTF)  The CBTF is coordinating with an independent third party consultant (Ventyx) in development of a cost – benefit analysis that will determine the projected overall costs and benefits to the SPP members of a Day-Ahead Market (DAM) and Ancillary Services Markets (ASM), both separately and jointly.  One of several prime objectives of the cost – benefit study is to seek ways to increase participation by demand response resources in SPP markets. SPP RTO Update on DR Developments

7. William L. Wylie, PE Executive Director 501-614-3200 wwylie@spp.org