1. SPP.org 1

2. SPP: Demand Response and Advanced Metering in Arkansas

3. SPP.org 3 SPP Demand Response Catalysts

4. SPP.org 4 Regulatory March 20, 2006 Order from FERC “SPP is directed to provide a report to the Commission six months from the date of market implementation on ways it can incorporate demand response into its imbalance market”

5. SPP.org 5 Peak Demand

6. SPP.org 6 Capacity Margins

7. SPP.org 7 Reserve Margin by Region (2007E v. 2003A)

8. SPP.org 8 Increases in CO 2 Emissions

9. SPP.org 9 SPP Demand Response Initiatives

10. SPP.org 10 Technical Conference (January 2007) EPRI ISO/RTO Council: EAS US Demand Response Coordinating Committee (Potential) SPP Center of Excellence Strategic Planning Committee Demand Response Task Force Planning SPP Demand Response Initiatives

11. SPP.org 11 EPRI Initiative

12. 12 © 2007 Electric Power Research Institute, Inc. All rights reserved. EIA Base Case 2007 CO 2 Reductions … Technical Potential* TechnologyEIA 2007 ReferenceTarget EfficiencyLoad Growth ~ +1.5%/yrLoad Growth ~ +1.1%/yr Renewables30 GWe by 203070 GWe by 2030 Nuclear Generation12.5 GWe by 203064 GWe by 2030 Advanced Coal Generation No Existing Plant Upgrades 40% New Plant Efficiency by 2020–2030 150 GWe Plant Upgrades 46% New Plant Efficiency by 2020; 49% in 2030 CCSNoneWidely Deployed After 2020 PHEVNone 10% of New Vehicle Sales by 2017; +2%/yr Thereafter DER< 0.1% of Base Load in 20305% of Base Load in 2030 * Achieving all targets is very aggressive, but potentially feasible.

13. 13 © 2006 Electric Power Research Institute, Inc. All rights reserved. Possible R&D Collaboratives Smart Infrastructure Enable energy efficiency and demand response and other potential consumer/utility opportunities Energy Analytics Independent and credible analysis to support innovative markets, rates and CO 2 impact Smart End-Use Devices Maximizing the potential for energy efficiency and demand response in residential/ commercial/industrial sector Infrastructure Smart End-Use Devices Analytics Three broad interconnected areas of possible RD&D presented for reaction and refinement by the workshop attendees

14. 14 © 2006 Electric Power Research Institute, Inc. All rights reserved. Possible Components of Smart Energy Efficiency Infrastructure Efficient Building Systems Utility Communications Dynamic Systems Control Data Management Distribution Operations Distributed Generation & Storage Plug-In Hybrids Smart End-Use Devices Control Interface Advanced Metering Consumer Portal & Building EMS Internet Renewables PV

15. www.spp.org 15 SPP Planning Initiative

16. www.spp.org 16 Planning Questions What current flowgates are being mitigated by the 2006-2016 SPP Transmission Expansion Plan (STEP)? How would Demand Side Management (DSM) affect the current reliability plan? How would SPP handle Enhanced Regional Planning (ERP) in respect to the STEP?

17. www.spp.org 17 Flowgates in SPP SPP performed analysis on the 2006-2016 SPP STEP to determine how the top flowgates would be affected Staff focused on the top 15 flowgates with the highest TLR curtailments 7 of the top 15 flowgates are relieved by the 2006- 2016 STEP

18. www.spp.org 18 Top 15 Flowgates Relieved Not Relieved

19. www.spp.org 19 New Top 15 Flowgates

20. www.spp.org 20 Demand Side Management (DSM) DSM manages the consumption of energy to optimize available generation resources SPP very different geographically than areas in the northeast that have very dense high population areas Staff to initially consider DSM option in top 3 population areas in SPP footprint Oklahoma City Kansas City Tulsa

21. www.spp.org 21 Enhanced Regional Planning (ERP) SPP to potentially consider ERP as a solution to reliability problems identified in the STEP Initially, staff to use engineering judgment to determine what areas would be appropriate for ERP Staff would consider the benefit of a ~500MW resource for initial screens, then use the SPP ERP checklist to determine feasibility

22. Gerrud Wallaert Regulatory and Policy Engineer 501-614-3358 gwallaert@spp.org gwallaert@spp.org