1. 2006 SPP RTO Expansion Plan Carl A. Monroe July 30, 2006

2. www.spp.org 2 Overview SPP RTO Expansion Plan Reliability Planning Economic Planning

3. www.spp.org 3 Basic Planning Principles Stakeholder input throughout the process Ensure transmission system reliability through compliance with planning criteria The SPP planning process is an open and participatory process

4. www.spp.org 4 Regional Plan Objectives Focus on reliability needs 1 st, commercial market needs 2 nd Create an effective long-range expansion plan with a comprehensive assessment of mitigation plans to maintain planning standards Evaluate alternatives from all stakeholders

5. www.spp.org 5 2006 SPP Expansion Plan Basic Principles Stakeholder input throughout the process Ensure transmission system reliability through compliance with planning criteria: NERC, SPP and Transmission Owner The SPP planning process is open and participatory process

6. www.spp.org 6 Major Changes 2006 SPP Expansion Plan 12 month Planning cycle SPP Transmission Projects that had start of construction beyond to 2008 beyond January 1, 2008 were not included in the Expansion Plan load flow model Included 69 kV contingencies More interaction between SPP Aggregate Study group and SPP Planning group The initial Steady State analysis will identify all violations without using operating guides/directives and determine reinforcements for all violations Included 10 year out model Included winter peak model Included additional NERC C and D contingencies Reactive margin/reserve study

7. www.spp.org 7 12 month Planning Cycle

8. www.spp.org 8 Additional Projects Rolled Into Expansion Plan OATT TSR Aggregate Study Process Signed Contracts SPP RTO Expansion Plan Generation Interconnect Process GI Study Process Signed IA Attachment AA Review Process Identify facilities to upgrade Letter of authorization to construct Economic/ Requested Upgrade Signed Agreement TSR GIAA Others Letter of authorization to construct

9. Carl A. Monroe Sr. VP Ops & COO Voice: 501.614.3218 cmonroe@spp.org cmonroe@spp.org