Southwest Power Pool REGIONAL TARIFF WORKING GROUP Kansas City Airport Mariott Kansas City, MO July 29-30, SUMMARY OF ACTIONS TAKEN-

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1 Southwest Power Pool REGIONAL TARIFF WORKING GROUP Kansas City Airport Mariott Kansas City, MO July 29-30, SUMMARY OF ACTIONS TAKEN- 1. The RTWG approved the minutes of the following meetings: June 25, 2009 July 1, 2009 (Conference Call) July 2, 2009 (Conference Call) July 20, 2009 (Conference Call) Page 1 of 153

2 Regional Tariff Working Group July 29-30, 2009 Southwest Power Pool REGIONAL TARIFF WORKING GROUP Kansas City Airport Mariott Kansas City, MO July 29-30, MINUTES- Agenda Item 1 Call to Order, Introductions and Receipt of Proxies Chair Dennis Reed called the meeting of the Regional Tariff Working Group (RTWG) to order at 1:00 p.m. and asked for a round of introductions. There were 26 persons in attendance in person or via phone (Attachment 1 Attendance). Roy Sundman, Acting Secretary, reported that there were two proxies (Attachment 2 Proxies). Agenda Item 2 Review Agenda and Additional Agenda Items The agenda was approved with no modifications. (Attachment 3 Agenda). Agenda Item 3 Approval of Minutes Dennis Reed asked if there were any additions or corrections to the minutes of the June 25, 2009, July 1, 2009, July 2, 2009, and July 20, 2009 meetings. There were no modifications. The minutes of the June 25, 2009, July 1, 2009, July 2, 2009, and July 20, 2009 meetings were unanimously approved. Agenda Item 4 Review of Action Items Roy Sundman led a review the Action Items list (Attachment 4 RTWG Action Items). Several Action Items were revised or updated. Action Item 22c Roy Sundman noted that contact with RTWG members to discuss Tariff language intent had been initiated and noted that he would like to make a brief report at the August meeting and have the opportunity to discuss issues that arise as a result of this effort. Gene Anderson expressed concern that there is likely a need to repair the language of Attachment J for holes that he believes exist. Action Item 39 The MWG approved the RTWG s changes to PRR 195 and it will go to the MOPC for their October meeting. Action Item 40 Patti Kelly gave an update on the TRR process. It will soon be going through a trial run. Action Item 44 Robert Shields clarified that his primary interest is to have synchronization in the effectiveness of the revised rates calculated annually and of the primary events set out in the protocols of each Transmission Owner s formula that lead up to such revised rates. The group concluded that all interested parties should Katy Onnen with their thoughts on the subject. Agenda Item 5 Regulatory Filing and Updates Heather Starnes gave an update on SPP s recent regulatory filings. Agenda Item 6 Transmission Constructor Selection Process 2 Page 2 of 153

3 Regional Tariff Working Group July 29-30, 2009 Dennis Reed stated that nominations to the Transmission Constructor Task Force should be ed to Katy Onnen and him via . The group will report to the RTWG and a chair has not yet been named. Discussion was held on the processes the group is to establish i.e. what constitutes delinquency and what constitutes failure to perform. Additionally, there was discussion about how Transmission Owner replacement should be effected. Dennis Reed stated that he would draft a scope document for the task force. Agenda Item 7 DPATF Tariff Language Robert Pennybaker stated that several issues raised in conjunction with discussion about the delivery point additions have been dismissed as outside the scope of the task force. Robert then reviewed the proposed tariff language, discussion occurred, and some modifications were made (Attachment 5 DPATF Base Tariff). The need for other modifications was discussed. Robert Pennybaker will work with the DPATF to revise the language for presentation at the next meeting. Agenda Item 8 Interim Interconnection Agreements Charles Hendrix completed the review of the proposed Interim LGIA (Attachment 6 Interim LGIA). The RTWG made some additional changes to the proposed language. Charles Hendrix and Carrie Bumgarner will create a redline copy of the document for final review. A conference call was scheduled for Monday, August 10 th, 2009 from 10:00 a.m. 12:00 p.m. for the RTWG s review. Agenda Item 9 NTC Whitepaper Keith Tynes continued the review of the NTC Whitepaper with Section 8 (Attachment 7 NTC Whitepaper). Discussion was held on use of the word modification in terms of an NTC. Keith Tynes was tasked to revise Section 8 to differentiate between two situations: (1) a change to the facility being constructed and (2) change of Transmission Owner by novation. In the case of scenario 1, the general consensus of the group was to cancel the existing NTC and reissue a new NTC and in the case of scenario 2, the NTC would be modified to change the TO. Keith Tynes requested that RTWG members with suggested changes to Section 8 them to him for inclusion in his draft. Agenda Item 10 Task Force Updates Billing Determinant Task Force (Charles Locke) The BDTF has identified most of the issues that it needs to address, including entities that don t report load data on time and what constitutes resident load, among others. There is a conference call scheduled for Wednesday, August 5 th, 2009 to continue discussion. Conditional Firm Task Force (Bernard Liu) The CFTF will reconvene soon, hopefully within the next month. Bernie Liu is hoping that there are more options for implementing Conditional Firm with OATI tools. Crediting Process Task Force (David Kays) The CPTF is meeting every other Friday. They began their work with short term service and thought they had a solution identified, but after beginning work on long term service they realized that short term would need to be revised. They are now working on developing a concept paper and hope to complete their work by the end of Page 3 of 153

4 Regional Tariff Working Group July 29-30, 2009 Generation Interconnection Task Force (Bob Tumilty) The GITF is meeting weekly. They are working to convert the LGIA to encompass the SGIA to result in one agreement. Generation Station Power Task Force (Robert Janssen) The GSPTF had a meeting July 1 st to discuss the next steps the task force wanted to take. They agreed to model SPP s Schedule 13 after MISO s Schedule 20. They will meet again sometime in August. Unintended Consequences Task Force (Gene Anderson) Gene Anderson has reviewed requests, direct assignments, and waivers and believes that the tariff language seems to work as designed. He plans to give a report of these items at the next RTWG meeting. Agenda Item 11 Future Meetings August 10, :00 a.m. 12:00 p.m. Interim Interconnection Agreement Web Conference/Teleconference August 27, 2009 Dallas, TX September 24, 2009 Dallas, TX October 28-29, 2009 Tulsa, OK Agenda Item 12 Adjournment Dennis Reed adjourned the meeting at 12:02 p.m. Respectfully Submitted- Katy Onnen RTWG Secretary 4 Page 4 of 153

5 Regional Tariff Working Group Meeting July 29-30, 2009 Last Name First Name Company Members Attend 7/29 Anderson Gene OMPA X X Bowser Robert Kansas Electric Power Cooperative rbowser@kepco.org X X Brian David East Texas Cooperatives David.brian@gdsassociates.com Dowling Bill Midwest Energy, Inc. bdowling@mwenergy.com X X Attend 7/30 Easton Angela Calpine Energy Services, L.P. eastona@calpine.com Phone Ferry Steve Sunflower Electric Power Corp. sferry@sunflower.net X Gary Ronald Lafayette Utilities System rwgary@lus.org X X Janssen Rob Dogwood Energy Rob.janssen@kelsonenergy.com Phone Phone Kays David Oklahoma Gas & Electric kaysdl@oge.com X X Kosch Rich LES rpkosch@les.com X X Leopold Brett ITC Great Plains bleopold@itctransco.com X Liu Bernard Xcel Energy bernard.liu@xcelenergy.com X X Locke Charles Kansas City Power & Light Company charles.locke@me00.kcpl.com X X Malone Paul NPPD phmalon@nppd.com X X Pennybaker Robert American Electric Power rlpennybaker@aep.com X X Proctor Mike Missouri PSC Mike.Proctor@psc.mo.gov Reed Dennis Westar Energy dennis.l.reed@westarenergy.com X X Shields Robert Arkansas Electric Cooperative Corporation rshields@aecc.com Phone Phone Warren Bary Empire District bwarren@empiredistrict.com Proxy Proxy Williams Mitchell Western Farmers EC M_williams@wfec.com Wise Michael Golden Spread Electric Coop mwise@gsec.coop Onnen Katy Southwest Power Pool, Inc. konnen@spp.org X Starnes Heather Southwest Power Pool, Inc. hstarnes@spp.org X X Observers Alexander Tony Southwest Power Pool talexander@spp.org Atwood Jason Kelson Energy Jason.Atwood@kelsonenergy.com Ayers- Brasher Jennifer EON Jennifer.ayers-brasher@eon.com Baum John Novus Windpower mail@dwsllc.net X Blaylock Jeff Hilliard Energy Bourne Patrick Southwest Power Pool pbourne@spp.org X Braun Susan KCPL Susan.braun@kcpl.com Brown Seth ETEC Bumgarner Carrie Wright & Talisman bumgarner@wrightlaw.com Phone Page 5 of 153

6 Last Name First Name Company Attend 4/29 Attend 4/30 Burke Oliver Entergy Burns Kevin Camp Wayne Accenture Caspary Jay SPP Cates Charles SPP Collins Jessica Xcel Energy Cripps Matthew Cleco Power, LLC D Antuono Michelle Occidental Davis Emily SPP DeBaun Tom KCC Dillahunty Les Southwest Power Pool X X Eeg Justin Tenaska Emery Beth Sunflower / MKEC bemery@trpsalaw.com Foreman Mark Tenaska mforeman@tnsk.com Fortik Jason LES jfortik@les.com Fox Kip AEP kfox@aep.com Gaw Steve Wind Coalition rsgaw@gmail.com Grace Gene AWEA ggrace@awea.org Gunesch John Retired OGE gunescj@pldi.net Hadlind Harold NPPD hlhadla@nppd.com Harris Brenda Occidental brenda_harris@oxy.com X X Harvey John John Deere Wind Energy HarveyJohnA@JohnDeere.com Hendrix Charles Southwest Power Pool chendrix@spp.org Henry Cynthia Xcel Energy cynthia.m.henry@xcelenergy.com Helyer Scott Tenaska shelyer@tnsk.com Hewitt Douglas KCPL Doug.hewitt@kcpl.com Horak Frank Astek Windenergy frank@astek.us Hossain Shah Westar Energy, Inc shah.hossain@westarenergy.com Hotovy Jim NPPD jrhotov@nppd.com Hulett Rachel SPP rhulett@spp.org Jannsen Bruse KMEA bruse@kmea.com X Jenkins Joshua GDS Associates/ETEC Joshua.jenkins@gdsassociates.com Phone Phone Jones Dan SPP djones@spp.org Kelly Patti Southwest Power Pool pkelli@spp.org Kozlowski Pamela Gestalt, LLC pkozlowski@gestalt-llc.com Linton David David C. Linton, LLC gjlinton@charter.net Martino Omar Res Americas Omar.martino@res-americas.com McCord Rick Empire District rmccord@empiredistrict.com McKinnie Adam Missouri PSC Adam.mckinnie@psc.mo.gov X Meyer Greg Missouri PSC greg.meyer@psc.mo.gov Meyer Alan Miller Beth Accenture Beth.miller@accenture.com Mills John SPP jmills@spp.org Monroe Carl Southwest Power Pool cmonroe@spp.org Myers Alan ITC Great Plains amyers@itcgreatplains.com Newell Gary LAFA Counsel Patel Purvi ITC Great Plains ppatel@itctransco.com Page 6 of 153

7 Last Name First Name Company Attend 4/29 Attend 4/30 Payton Tom Occidental Redden Ronda Oklahoma Gas & Electric Reed Wendy Wright and Talisman Phone Rew Bruce SPP Rome Aaron Midwest Energy Rooker Jeff SPP Ross Richard American Electric Power Rossi Mark Accenture Russell Joe OGE Phone Sailors Margaret OPPD Phone Phone Sanson Kevin SPP Savoy Clint SPP Segers Matt Wright and Talisman Shields Tom Shumate Walt Shumate & Accociates Smith Anna Southwestern Power Administration Soles Tim Occidental Energy Ventures Corp Spector Barry Wright and Talisman Stephens John SPRM Stewart Tracey Southwestern Power Administration Sundman Roy Training and Support Services, Inc. Tadros Lorees OPPD Tharp Ronnie Western Farmers Electric Cooperative Thumm Brian ITC Great Plains Tumilty Bob American Electric Power Tynes Keith Southwest Power Pool Useldinger Jim Kansas City Power & Light Company Wagner Nicole Southwest Power Pool Walker Richard Sustainable Energy Strategies, Inc Walker Robert Cargilll Wilson Bryn Oklahoma Gas & Electric Womack Jimmy SPP Wrenbeck Thomas ITC Great Plains Page 7 of 153

8 From: Bary Warren Sent: Thursday, July 23, :30 PM To: Reed, Dennis; Katy Onnen Subject: RTWG Meeting - Proxy Due to a very important persona (and much needed) meeting on TableRock Lake Missouri on the 30 th, I will be not able to attend/participate in the RTWG meeting. Charles Locke with KCPL will have my/ede s proxy for the meeting. Thx. Bary/Empire From: Robert Shields [mailto:rshields@aecc.com] Sent: Tuesday, July 28, :30 AM To: Katy Onnen; Reed, Dennis; Anderson, Gene Subject: Partial Proxy I will be attending the RTWG meeting by net conference. I should be available for the entire meeting on both days. In the off chance that a vote is taken and I am not present on the phone, I give my proxy to Gene Anderson. Thanks Robert Page 8 of 153

9 Southwest Power Pool REGIONAL TARIFF WORKING GROUP Kansas City Airport Mariott Kansas City, MO July 29, :00 p.m. 5:00 p.m. July 30, :00 a.m. 12:00 p.m. - AGENDA - July 29, Call to Order & Introductions, Receipt of Proxies... (5 Min.) 1:00 2. Review of Agenda and Additional Agenda Items... (5 Min.) 1:05 3. Approval of Minutes... (5 Min.) 1:10 June 25, 2009 July 1, 2009 (Conference Call) July 2, 2009 (Conference Call) July 20, 2009 (Conference Call) 4. Review of Action Items... Roy Sundman (5 Min.) 1:15 5. Regulatory Filing and Updates... Heather Starnes (10 Min.) 1:20 6. Transmission Constructor Selection Process... Dennis Reed (15 Min.) 1:30 7. DPATF Tariff Language... Robert Pennybaker (60 Min.) 1:45 Break... (15 Min.) 2:45 8. Interim Interconnection Agreements... Charles Hendrix (120 Min.) 3:00 Recess... 5:00 July 30, NTC Whitepaper... Keith Tynes (90 Min.) 8: Task Force Updates... (25 Min.) 9:30 Billing Determinant Task Force Conditional Firm Task Force Crediting Process Task Force Generation Interconnection Task Force Generation Station Power Task Force Unintended Consequences Task Force 11. Future Meetings... (5 Min.) 9:55 August 27, 2009 Dallas, TX September 24, 2009 Dallas, TX October 28-29, 2009 Tulsa, OK Page 9 of 153

10 12. Adjournment... 10:00 Page 10 of 153

11 Southwest Power Pool, Inc. REGIONAL TARIFF WORKING GROUP Pending Action Items Status Report July 29, 2009 Action Item Date Originated Priority Status Comments 2 The Delivery Point Addition TF is to provide a document detailing the procedures for existing customers to add new load delivery points. August, 2006 By the RTWG 2 In Progress The RTWG directed the DPATF to revise Attachment AQ to contain a procedure for the addition of new delivery points, rather than be structured as a form of agreement. (April 29-30, 2009) 3 The SPP Settlements group is to provide a draft refund procedure and impact analysis of revenue reallocation. January 3, 2008 By the RTWG 2 In Progress SPP Settlements provided a report to the RTWG at the January 31, 2008 meeting. As a result, the RTWG requested that settlements continue with the development of a procedure along with researching the amount of funds required to be reallocated. The subject was further discussed at the July 30-31, 2008 RTWG meeting. Tony Alexander will present a draft refund procedure and impact analysis of revenue reallocation at the July 2009 RTWG meeting. (May 28, 2009) Due to work on the new Settlements system, Tony will present at the August 2009 RTWG meeting. 12 Develop a uniform calculation of Net Energy For Load January 30, 2008 MOPC 2 In Progress The Billing Determinate Task Force is addressing this issue. (April 29-30, 2009) 22 Balanced Portfolio Parking Lot Issues July 2, 2008 RTWG 1 In Progress Page 11 of 153

12 Action Item Date Originated Priority Status Comments 22 c What happens when a project has been directly assigned when it is deferred or displaced by a new project? June 25-26, In Progress Roy Sundman is reviewing the tariff and consulting with RTWG members to clarify the RTWG s intent. (April 29-30, 2009) Initial discussion had. Expect a report at the August RTWG meeting. 31 Schedule 11 December 4, In Progress The issue is being addressed by the Billing Determinate Task Force. (April 29-30, 2009) 34 Schedule 2 Charges January 6 7, In Progress The Billing Determinate Task Force will be addressing this issue. (April 29-30, 2009) 36 Complete Schedule 13 Development April 29-30, 2009 In Progress The Generation Station Power Task Force will be addressing this issue. (April 29-30, 2009) 37 Review Crediting Process of Attachment Z2 April 29-30, 2009 In Progress The Crediting Process Task Force will be addressing this issue. (April 29-30, 2009) 39 Revise Attachment AM Meter Agent Agreement April 29-30, 2009 In Progress The RTWG approved changes to the tariff language as amended at the June 25, 2009 meeting. It is now going back to the MWG for their review of the changes. (June 25, 2009) The MWG passed the RTWG s changes to PRR 195 at their meeting on 7/20/2009. It will go to MOPC for their October meeting. Page 12 of 153

13 Action Item Date Originated Priority Status Comments 40 Establish a Tariff Revision Request Process April 29-30, 2009 In Progress Patti Kelly distributed a draft TRR form to the RTWG on May 19, (May 28, 2009) Patti provided a verbal report during the meeting. 41 Determine the load to which Schedule 1A is to be applied April 29-30, 2009 In Progress The Billing Determinate Task Force is addressing this issue. (April 29-30, 2009) 43 Review through-andout rate determination. April 29-30, 2009 In Progress The Billing Determinate Task Force is addressing the issue. (April 29-30, 2009) 44 Synchronize existing formula rates used by TOs. May 28, 2009 In Progress Robert Shields asked that the RTWG consider reactivation of the Formula Rates Task Force in an effort to synchronize (timing of the rate recomputation and related events in the protocols of each TO. pursuant to protocols of each TO) the existing formula rates used by Transmission Owners, to the extent possible. (May 28, 2009) The Group s pleasure on this? See what customers or TOs want to do on this have them thoughts into Katy at SPP. Page 13 of 153

14 Completed Action Items Report April 29, 2009 Action Item Date Originated Priority Status Comments 1 SPP Staff is to investigate and report to the RTWG its findings concerning whether Schedule 2 adequately accommodates new participating generators January 3, 2008 By the RTWG - Completed SPP Staff provided draft language to reinsert the procedure to accommodate new participating generators into Schedule 2. The RTWG approved the draft language at it s January 3, 2008 meeting. 5 BPGTF brought a change to its recommendations to the RTWG to allow ineffective TODs to become reliability upgrades January 3, 2008 By the RTWG - Completed Keith Tynes brought the subject up to the RTWG, which passed the recommendation. RTWG also suggested that SPP Staff talk to the CAWG. Keith Tynes informed the RTWG at the January 31 meeting of the CAWG discussion which was also positive. 6 SPP Staff to file the base plan guidelines and cost allocation Tariff changes along with the alternate version of the Order 890-compliant Attachment O, once approved by the BOD. November 29, 2007 By the RTWG - Completed May 1, 2008 SPP Staff filed with FERC on Friday, March 28 8 Robin Kittel was directed to form a task force to review the language regarding tax information July 25, 2006 BOD - Completed The report was made to the MOPC and BOD on the results of the Task force in January Page 14 of 153

15 Action Item Date Originated Priority Status Comments 9 The MOPC directs SPP Staff to provide a white paper to explain the rationale behind Agreements points 37 of the BPGTF recommendation. January 16-17, 2007 MOPC - Completed Staff will present as a recommendation on "Base Plan Funding" to the MOPC as approved by the BPGTF and supported by the RTWG and CAWG. This item was completed as requested by MOPC. 13 SPP Staff to develop an Order 890-A Compliance Strawman February 28 th, Completed May 1, 2008 The Order 890-A Compliance filing was made on April 15, Develop a proposal concerning PRR 141 Tariff Language February 28 th, Completed May 1, 2008 SPP staff presented PRR 141 proposed tariff language which was approved by the RTWG at the March 25-26, 2008 Meeting. The PRR tariff language was unanimously approved. 15 Legal Opinion concerning PRR 165 February 28 th, Completed May 1, 2008 Wright and Talisman provided a legal opinion on PRR 165 at the March th RTWG meeting. 7 RTWG to establish a task force to address self-supply of station power and provide an interim report back to the MOPC in the October 2006 meeting with final tariff language expected by January July 11-12, 2006 MOPC 1 Completed July 28 29, 2008 The GSPTF presented tariff language (Schedule 13) at the March 25-26, 2008 meeting and May 1, The RTWG approved Schedule 13 at the May 29 th meeting, MOPC approved Schedule 13 at the July th meeting, and the BOD approved Schedule 13 at the July th BOD Meeting. Page 15 of 153

16 Action Item Date Originated Priority Status Comments 11 Tariff Language for the Economic Upgrades as approved by the BOD and RSC. January 31, Completed July 30 31, 2008 The Tariff language has been discussed at the following RTWG Meetings: March 25-26, April 7, and April 18, May 1, May 29, 2008 RTWG meeting. The RTWG approved the Balanced Portfolio Tariff Language at the July 8th meeting, MOPC approved the Balanced Portfolio Tariff Language at the July th meeting, and the BOD approved the language at the July th BOD Meeting. 21 PRR 185 June RTWG 1 Completed July 8, 2008 PRR 185 was initially reviewed by the RTWG at the June th RTWG meeting. The tariff language was approve by the RTWG at the July 8 th RTWG meeting. 16 Transmission Project Sponsor Agreement February 28 th, Completed October 23, 2008 The Transmission Project Sponsor Agreement has been presented in several iterations to the RTWG at the following meetings: January 31, February 28, March 25-26, May 1, May 29, July 30-31, and August A sub-section of RTWG members met on April 11, 17, and August 22, Mr. David Linton will discuss the requested changes at the September 25, RTWG Meeting. 17 NERC Penalty Allocations May 29, 2008 RTWG 1 Completed October 23, 2008 An initial draft was provided for review at the May 29 th RTWG meeting. A second draft was distributed for discussion at the June RTWG meeting but was not discussed due to time constraints. The subject was further discussed at the July 30-31, 2008 RTWG meeting and Ms Wendy Reed is verifying that the tariff language covers all potentially affected parties. The subject will be discussed further at the September 25-26, 2008 meeting. Page 16 of 153

17 Action Item Date Originated Priority Status Comments Mr. John Mills presented tariff language on May 29 th which was agreed to in principle by the RTWG. FERC had rejected these sections in the latest Aggregate study filing and SPP Staff is to work with Wright and Talisman to develop next steps. 18 Update Sections 19.4, 32.4, and Attachment Z for the Aggregate Study May 29, 2008 RTWG 1 Completed October 23, 2008 Further, Robert Pennybaker and Gene Anderson will provide comments to John Mills for consideration into the next iteration of tariff modifications. Mr. John Mills will present the latest tariff language at the August 28, 2008 meeting. PRR 176 was initially reviewed by the RTWG on the June th RTWG meeting and Mr. David Linton provided draft tariff for RTWG at the July 30 31, 2008 meeting. 20 PRR 176 June 25-26, 2008 RTWG 1 Completed August 28, 2008 Shah Hossain, Gene Anderson, Tim Soles, and David Linton was unable to connect via conference call and was used to collect feedback. The MWG reviewed the tariff language at their August 20-21, 2008 meeting and held a conference call on August 22 to finalized their proposed tariff modifications. The PRR 176 tariff modifications will be discussed at the August 28, 208 Meeting. 19 Aggregate Study Improvement TF Tariff Language May 29, 2008 RTWG 1 Completed SPP Staff Mr. Jason Atwood presented the concepts of the ASITF at the May 29 th RTWG meeting which was approved in principle by the RTWG. SPP Staff will develop tariff language based on the outline provided by Mr. Atwood. The tariff language was reviewed at the December 4, 2008 Meeting. The tariff language was approved by the SPP BOD on January 27, 2009 and has been placed as a priority for filing with FERC. will be further discussed at the December 15, 2008 RTWG Meeting. Page 17 of 153

18 Action Item 24 Attachment AI 23 RTWG Charter Update Date Originated July 30 31, 2008 July 15 16, 2008 (confirm) MOPC Priority Status Comments 1 Closed SPP Staff 1 Completed The RTWG will discuss Attachment AI at the January 26-27, 2009 meeting. The item has been discussed at several RTWG meetings. Mr. Dennis Reed and Mr. Gerrud Wallaert will meet with the TWG Chair and Secretary to discuss the proper charter modifications to absorb the areas of responsibility of the proposed Transmission Policy Working Group. The SPP BOD approved the Charter on January 27, Business Practice Business Practice for Daily Non-Firm Peak and Non-peak 27 TOCTF Tariff Language 29 Organizational Group Survey July 30 31, 2008 July 30-31, 2008 July 30 31, 2008 November 20, Completed BPWG Completed SPP Staff Completed RTWG Completed RTWG Mr. Shah Hossain will research the requirements of conditional firm service in regards to Business Practice The BPWG will research this issue further. Mr. Jimmy Womack will provide an update at the August 28, 2008 Meeting. Mr. Jimmy Womack will provide a background for the subject of Daily Peak and Non-Peak firm transmission service and provide to the RTWG at the August meeting. Further, the RTWG is to review the tariff modifications concerning Daily Peak and Non-Peak Non-firm transmission service and be ready to discuss at the December 15, 2008 RTWG meeting. The RTWG will discuss the TOCTF Tariff language at the December 4, 2008 meeting. The TOCTF tariff language is due at the SPP BOD at the January meeting. The SPP BOD approved that tariff language on January 27, 2008 and will be filed with FERC by February 6, In the SPP Stakeholder Chairs / Secretaries meeting, each Stakeholder Group is to review the Organizational Group Survey results. Mr. Gerrud Wallaert reviewed the results at the January 6 7, 2009 RTWG meeting. Page 18 of 153

19 30 33 Action Item Attachment J Wind Cost Allocation OATT References of the $180,000 Safe Harbor Lime 28 Order Balanced Portfolio Implementation Issues Unintended Consequences St. Joseph Power and Light Unintended Consequences Gene Anderson Comments Billing for Extended Weekly Yearly Transmission Service Date Originated September 25-26, 2008 December 4, 2008 October 23, 2008 December 4, 2008 January 6 7, 2009 January 6 7, 2009 January 6 7, 2009 Priority Status Comments Completed RTWG Completed SPP Staff Completed SPP Staff 1 Completed 1 Completed 1 Completed 1 Completed SPP Staff will present the Attachment J Wind Cost Allocation tariff language. The tariff language is expected to be presented to the SPP BOD in the January meeting cycle. The SPP BOD of approved the tariff language at the January 27, 2009 meeting and will be filed in the near future. Gerrud Wallaert will determine where the $180,000 Safe Harbor Limit is referenced in the SPP OATT. Patti Kelly reviewed the Order 719 requirements at the December 4, 2008 RTWG meeting. The subject will continually be discussed at each RTWG meeting until SPP makes the compliance filing. The Order 719 tariff language has been approved and will be reviewed by the MOPC in their April Meeting. Bary Warren expressed a desire to discuss the implementation issue of the Balanced Portfolio concerning the transfer form zonal to regional. The subject was discussed during the March 4, 2009 RTWG meeting. Mr. Jason Speer will follow up with Mr. Charles Locke concerning how St. Joseph Power and Light is being modeled in the Unintended Consequences analysis. The issue has been resolved. Mr. Gene Anderson will provide further comment concerning Unintended Consequences to Mr. Gerrud Wallaert SPP Staff will determine how SPP bills for Extended Weekly and Yearly transmission service. Page 19 of 153

20 Action Item Date Originated Priority Status Comments SPP Staff has held several internal discussions on this issue. SPP Staff will request a legal opinion from Wright and Talisman upon conclusion of the Staff assessment. 4 SPP Staff will research the potential of waiving the interest related to the reallocation of revenue between TOs January 31, 2008 By the RTWG 2 Completed At the July 30-31, 2008 meeting, Mr. Pat Bourne discussed the potential of waiving the interest related to the reallocation of revenue between TOs. It was decided that if the RTWG desired to include interest in the revenue reallocation, the methodology will need to be reflected within the SPP OATT. Mr. Dennis Reed will setup a conference call in which the Transmission Owners will attempt to reach a conclusion on this provision. 22 a The selection process of 3 high priority studies which are performed at no cost Review Non-Firm Service Discount Policy Formula Rate Recomputation Cycle Synchronization June 25-26, 2008 RTWG April 29-30, 2009 April 29-30, Closed Completed Closed SPP Staff will determine high priority studies as they are identified and will ask for guidance if necessary. The RTWG voted eliminate any discount for non-firm point-to-point service. SPP Staff to meet with Settlements to determine achievable effective date to eliminate the discount. SPP Settlements Department presentation (Tony and Philip want to initiate). 22 b How to distribute revenue credits to TOs of the Base Plan and Balanced Portfolio? June 25-26, 2008 RTWG 1 Closed Charles Locke and Gene Anderson reviewed their meeting notes and could not ascertain what issue this was created to address. (June 25, 2009) Page 20 of 153

21 39 Action Item Revise Attachment AM Meter Agent Agreement Date Originated April 29-30, 2009 Priority Status Comments Completed The RTWG approved changes to the tariff language as amended at the June 25, 2009 meeting. It is now going back to the MWG for their review of the changes. (June 25, 2009) The MWG passed the RTWG s changes to PRR 195 at their meeting on 7/20/2009. It will go to MOPC for their October meeting. Page 21 of 153

22 1.3l Business Day: A day on which the Federal Reserve System is open for business. 1.3m Calendar Day: Any day including Saturday and Sunday. 1.49b Wholesale Distribution Service: The provision of service over a Transmission Owner's Distribution Facilities necessary to effectuate Network Integration Transmission Service or Point-To-Point Transmission Service under this Tariff. To the extent such Wholesale Distribution Service is required; it shall be specified in the Service Agreement for the associated service being provided under the Tariff. The charges for Wholesale Distribution Service are described in Schedule Designated Resources Using Long-Term Firm Point-to-Point Transmission Service If a Transmission Customer requests Long-Term Firm Point-to-Point Transmission Service to deliver the output from a Designated Resource to a load in the SPP Region, the Transmission Customer shall provide to the Transmission Provider all the information required in Section 29.2 for (i) its load in the SPP Region and (ii) its Designated Resources. This information shall be used for the purposes of (i) performing Aggregate Transmission Service Studies in accordance with Attachment Z1, (ii) classifying Service Upgrades associated with Designated Resources as Base Plan Upgrades pursuant to Section III.B of Attachment J and (iii) developing the SPP Transmission Expansion Plan pursuant to Attachment O. The requirements for Network Resources in Sections 30.1, 30.2 and 30.7 shall apply to Designated Resources using Long-Term Firm Point-to-Point Transmission Service Interconnection of Delivery Points The addition, modification, or abandonment of any Delivery Point in conjunction with the provision of Point-to-Point Transmission Service shall be governed by the applicable provisions of Sections 31.2, 31.3, and Attachment AQ. Page 22 of 153

23 31 Designation of Network Load 31.1 Network Load: The Network Customer must designate the individual Network Loads on whose behalf the Transmission Provider will provide Network Integration Transmission Service. The Network Loads shall be specified in the Service Agreement. Page 23 of 153

24 31.2 Delivery Points Connected with the Transmission Provider: With respect to physical load connections to the Transmission System, Tthe addition, modification, or abandonment of any Delivery Point shall be governed by the provisions of section 31.2 and Attachment AQ. The Network Customer shall provide the Transmission Provider and the Transmission Owner with as much advance notice as reasonably practicable of any physical addition or abandonment of a Delivery Point, or any modifications requiring action by the Transmission Owner to existing Delivery Points. Such notice shall be provided in writing by the Network Customer and generally in a manner and form as shown in the sample Request for Change in Local Delivery Facilities attached to this Tariff as Addendum 1 to Attachment AQ, Delivery Point Addition Process. (i) 31.2.a New Delivery Points Connected to the Transmission System: The cost of new facilities, other than Network Upgrades, installed at the a new Delivery Pointpoint of interconnection, required to interconnect an additional Delivery Point shall be charged to the Network Customer in accordance with this Tariff and Commission policies. The study required to identify any necessary Network Upgrades related to such an addition will be treated as a reliability study-related modificationspursuant to Attachments O and AQ (reference relevant sections of Attachment O and AQ). Network Upgrades necessary to accommodate such new Delivery Point will be treated as Base Plan Upgrades or Zonal Reliability Upgrades, as appropriate. The Transmission Provider together with affected Transmission Owner(s) will use due diligence to install any transmission facilities required to interconnect a new Network Load designated by the Network Customer. (ii) When a request for the addition of a new Delivery Point involves use of an associated new Designated Resource, or in the case where there are no preexisting transmission service rights from an existing Designated Resource to serve existing Page 24 of 153

25 Delivery Points in the zone where the new delivery point is to be added, request for such Delivery Point must be made through a modification of service pursuant to a new Application in accordance with Attachment Z1. Formatted: Not Highlight (iii) A request for the addition of a new Delivery Point that involves the use of existing Designated Resources in a zone where preexisting transmission service rights to serve existing Delivery Points from an existing Designated Resource will be performed in accordance with Attachment AQ. Network Upgrades necessary to accommodate such new Delivery Point will be treated as Base Plan Upgrades or Zonal Reliability Upgrades, as appropriate. In the event that the addition of such new Delivery Point results in an obligation to pay credits pursuant to Attachment Z2, section I.2., such credits will be base plan funded or included in zonal rates as appropriate. Formatted: Highlight 31.2b Abandonment of Delivery Points Connected to the Transmission System: In the event that a Network Customer desires to abandon an existing Delivery Point, it shall initiate the process of abandonment by notifying the Transmission Provider and Transmission Owner. Such notification and processing of such request shall be governed by the provisions of Attachment AQ hereto. In the event that there are modifications to other Delivery Points associated with the abandonment, all such desired changes in Delivery Point configuration shall be noticed and processed simultaneously. 31.2c Modification of Delivery Points Connected to the Transmission System: In the event that a Network Customer desires to modify an existing Delivery Point in a manner requiring action by a Transmission Owner, it shall initiate such modification by notifying the Transmission Provider and Transmission Owner of this desired change. Such notification and processing of such request shall be governed by the provisions of 31.2 a. above and Attachment AQ hereto. Page 25 of 153

26 31.3 Taxes on Contributions in Aid of Construction: When the Network Customer funds the construction of Host Transmission Owner-owned facilities pursuant to a contribution in-aid of construction ( CIAC ), the Network Customer also shall reimburse Host Transmission Owner for the tax effect of such CIAC (a Tax Effect Recovery Factor or TERF ), where such payment is considered taxable income and subject to income tax under the Internal Revenue Service (IRS) and/or a state department of revenue (State) requirements. The TERF shall be computed consistent with the methodology set forth in Ozark Gas Transmission Corp., 56 F.E.R.C 61,349 as reflected in the following formula: TERF = (Current Tax Rate x (Gross Income Amount - Present Value of Tax Depreciation))/(1-Current Tax Rate). The Present Value of Tax Depreciation Amount shall be computed by discounting Host Transmission Owner s anticipated tax depreciation deductions with respect to the constructed property by Host Transmission Owner s current weighted average cost of capital. If, based on current law, Host Transmission Owner determines such contribution by the Network Customer shall not be taxable, Host Transmission Owner will not charge a TERF; however, in the event that such contribution is later determined by the IRS or state tax authority to be taxable, the Network Customer shall reimburse Host Transmission Owner in the amount of the TERF, including any interest and penalty charged to Host Transmission Owner by the IRS and/or state. Such reimbursement is due within thirty (30) Calendar Days of the date upon which Host Transmission Owner notifies the Network Customer of such determination. If, based on current law, Host Transmission Owner determines such contribution by the Network Customer is taxable, Host Transmission Owner will charge a TERF; however, in the event that such contribution is later determined by the IRS or state tax authority not to be taxable, the Host Transmission Owner shall reimburse Network Customer in the amount of the TERF, including any interest calculated in accordance with the methodology set forth in FERC's regulations at 18 CFR 35.19a(a)(2)(iii). Such reimbursement is due within thirty (30) Calendar Days of the date upon which the Page 26 of 153

27 IRS or state tax authority notifies Host Transmission Owner of such determination. At Network Customer's request and expense, Host Transmission Owner shall file with the IRS a request for a private letter ruling as to whether any CIAC paid, or to be paid, by Network Customer to Host Transmission Owner is subject to federal income taxation. Network Customer will prepare the initial draft of the request for a private letter ruling, and will certify under penalties of perjury that all facts represented in such request are true and accurate to the best of Network Customer's knowledge. Host Transmission Owner and Network Customer shall cooperate in good faith with respect to the submission of such request. Host Transmission Owner shall keep Network Customer fully informed of the status of such request for a private letter ruling and shall execute either a privacy act waiver or a limited power of attorney, in a form acceptable to the IRS that authorizes Network Customer to participate in all discussions with the IRS regarding such request for a private letter ruling. Host Transmission Owner shall allow Network Customer to attend all meetings with IRS officials about the request and shall permit Network Customer to prepare the initial drafts of any follow-up letters in connection with the request. If Network Customer shall have reimbursed Host Transmission Owner for the TERF, upon request by Network Customer and at Network Customer s expense, Host Transmission Owner shall contest the taxability of such CIAC; provided, however, that Host Transmission Owner shall not be required to contest such taxability if Host Transmission Owner waives the payment by Network Customer of any amount that might otherwise be payable by Network Customer Delivery Points Not Physically Interconnected with the Transmission Provider: This section applies to both initial designation pursuant to Section 31.1 and the subsequent addition of new Network Load not physically interconnected with the Transmission System. To the extent that the Network Page 27 of 153

28 Customer desires to obtain transmission service for a load outside the Transmission System, the Network Customer shall have the option of (1) electing to include the entire load as Network Load for all purposes under Part III of the Tariff and designating Network Resources in connection with such additional Network Load, or (2) excluding that entire load from its Network Load and purchasing Point-To-Point Transmission Service under Part II of the Tariff. Notwithstanding the provisions of any agreement Network Customer may have with the other transmission provider, the addition, modification, or abandonment of any Delivery Point shall be governed by the provisions of this section and, as applicable, Attachment AQ hereto. To the extent that the Network Customer gives notice of its intent to add a new Delivery Point as part of its Network Load pursuant to this section and such request for the addition of a new Delivery Point involves the use of existing Designated Resources across an interface where preexisting transmission service rights to serve existing Delivery Points from an existing Designated Resource exist, such new Delivery Point shall be governed by the applicable provisions in section 31.2a through 31.2c and Attachment AQ hereto. When such request for the addition of a new Delivery Point involves use of an associated new Designated Resource, or iin the case where there is a no preexisting transmission service rights from an existing Designated Resource across the interface to serve the new Delivery Point, such request for a new Delivery Point must be made through a modification of service pursuant to a new Application Changes in Service Requests: Under no circumstances shall the Network Customer's decision to cancel or delay a requested change in Network Integration Transmission Service (e.g. the addition of a new Network Resource or designation of a new Network Load) in any way relieve the Network Customer of Page 28 of 153

29 its obligation to pay the costs of transmission facilities caused to be constructed by the Transmission Provider and charged to the Network Customer as reflected in the Service Agreement. However, the Transmission Provider must treat any requested change in Network Integration Transmission Service in a nondiscriminatory manner. Page 29 of 153

30 31.6 Annual Load and Resource Information Updates: The Network Customer shall provide the Transmission Provider with annual updates of Network Load and Network Resource forecasts consistent with those included in its Application for Network Integration Transmission Service under Part III of the Tariff including, but not limited to, any information provided under section 29.2(ix) pursuant to the Transmission Provider s planning process in Attachment O. The Network Customer also shall provide the Transmission Provider with timely written notice of material changes in any other information provided in its Application relating to the Network Customer's Network Load, Network Resources, its transmission system or other aspects of its facilities or operations affecting the Transmission Provider's ability to provide reliable service. Page 30 of 153

31 SCHEDULE 10 Wholesale Distribution Service Wholesale Distribution Service will be provided by the individual Transmission Owners as necessary to provide Point-to-Point Transmission Service or Network Integration Transmission Service under this Tariff. The transaction-specific information, including all customer-specific rates and charges, will be set forth in the Service Agreement between the Transmission Provider and the Transmission Customer for the associated service being provided pursuant to the Tariff. All rates and charges for Wholesale Distribution Service shall be on file with the appropriate agency as required by law or regulation. To the extent that a Service Agreement containing provisions for Wholesale Distribution Service is required to be filed with the Commission, the Transmission Provider, in consultation with the appropriate Transmission Owner, shall provide along with the filing, adequate cost support to justify the customer-specific rates and charges being assessed under this Schedule 10. Wholesale Distribution Service will be provided subject to the same scheduling deadlines and procedures for alternative dispute resolution as apply to the associated service. Unless otherwise specified, the provision of Wholesale Distribution Service will commence on the same day as service for the associated transaction, and shall terminate on the same day as service for the associated transaction. Page 31 of 153

32 Southwest Power Pool Original Sheet No. 449DRAFT FERC Electric Tariff RTWG Appendix 6 to the Standard LargeAPPENDIX 8 Generator Interconnection Procedures STANDARD LARGE GENERATOR INTERCONNECTION AGREEMENT (LGIA)TABLE OF CONTENTS Page Recitals Article 1. Definitions Article 2. Effective Date, Term, and Termination Effective Date Term of Agreement Termination Procedures Written Notice Default Termination Costs Disconnection Survival Article 3. Regulatory Filings Filing Article 4. Scope of Service Interconnection Product Options Energy Resource Interconnection Service The Product Transmission Delivery Service Implications Network Resource Interconnection Service The Product L. Patrick Bourne, Director1 Issued on: April 2, 2007 Effective: February 1, 2007 Filed to comply with order of the Federal Energy Regulatory Commission, Docket Nos. ER and ER , issued October 31, 2006, 117 FERC 61,139 (2006). Page 32 of 153

33 Southwest Power Pool Original Sheet No. 449DRAFT FERC Electric Tariff RTWG Transmission Delivery Service Implications Provision of Service Performance Standards No Transmission Delivery Service Interconnection Customer Provided Services Article 5. Interconnection Facilities Engineering, Procurement, and Construction Options Standard Option Option to Build Negotiated Option General Conditions Applicable to Option to Build Liquidated Damages Power System Stabilizers Equipment Procurement Construction Commencement Work Progress Information Exchange Limited Operation Interconnection Customer s Interconnection Facilities ( ICIF ) Interconnection Customer s Interconnection Facility Specifications Transmission Provider s Review ICIF Construction Updated Information Submission By Interconnection Customer Information Supplement Transmission Provider s Interconnection Facilities Construction A 5.12 Access Rights L. Patrick Bourne, Director2 Issued on: April 2, 2007 Effective: February 1, 2007 Filed to comply with order of the Federal Energy Regulatory Commission, Docket Nos. ER and ER , issued October 31, 2006, 117 FERC 61,139 (2006). Page 33 of 153

34 Southwest Power Pool Original Sheet No. 449DRAFT FERC Electric Tariff RTWG 5.13 Lands of Other Property Owners Permits Early Construction of Base Case Facilities Suspension Exemptions Taxes Interconnection Customer Payments Not Taxable Representations and Covenants Indemnification for the Cost Consequences of Current Tax Liability Imposed Upon the Transmission Owner Tax Gross-Up Amount Private Letter Ruling or Change or Clarification of Law Subsequent Taxable Events Contests Refund Taxes Other Than Income Taxes Tax Status Modification General Standards Modification Costs Article 6. Testing and Inspection Pre-Commercial Operation Date Testing and Modifications Post-Commercial Operation Date Testing and Modifications Right to Observe Testing L. Patrick Bourne, Director3 Issued on: April 2, 2007 Effective: February 1, 2007 Filed to comply with order of the Federal Energy Regulatory Commission, Docket Nos. ER and ER , issued October 31, 2006, 117 FERC 61,139 (2006). Page 34 of 153