1. ATSS New Aggregate Facilities Study Process Customer Workshop September 18, 2015

2. Welcome! Introductions... 2

3. Purpose This presentation provides an overview of what’s new in the new Aggregate Facilities Study (AFS) process, the new timelines, the new requirements, and the transition period. 3

4. Overview A look at the reduction in request backlog queue. Requirements for the “Completed Application” New Aggregate Facilities Study Process Third-party Impacts Process Waiver Processes Transition Period, now until the new Aggregate Facilities Study process starts 4

5. Changing The Aggregate Study Process Progress of the Backlog Clearing Process to date 5 Studies completed under BCP Study remaining to be completed

6. NEW AGGREGATE STUDY 6

7. New Aggregate Study Status May 19 FERC accepted ER15-1414 to implement the new aggregate study process. The new tariff language and new process became effective June 1, 2015. The first open season of the new process extends from June 1 through November 30, 2015. The first study will commence on December 1, 2015 as aggregate study 2015-AG2. Legacy study 2015-AG1 will continue under the old rules until completion later this year. 7

8. BCP 2015-AG1 8 2015 Today Tentative Timeline 2016 New Process 2015-AG2 Open Season New Process 2015-AG2 Open Season New Process 2015-AG2 Study New Process 2015-AG2 Study 2017 JanFebMarAprMayJunJulAugSepOctNovDecJanFebDecNovOct New Process 2016-AG1 Open Season New Process 2016-AG1 Open Season AugSep New Process 2016-AG1 Study New Process 2016-AG1 Study New Process 2016-AG2 Open Season New Process 2016-AG2 Open Season New Process 2016-AG2 Study New Process 2016-AG2 Study 2015-AG2 First Iteration Posting (approx.) 2015-AG2 Completed Applications Due 2015-AG2 Completion (approx.)

9. New Aggregate Study Flowchart 9 Retract requests outside the parameters Open Season Study Iterations #2, #3, etc. Tender Service Agreements 165 Days Day 1165 Dec 1 June 1 Remove requests outside parameters from analysis Completed Application Accept/Confirm all requests within parameters Process continues without customer intervention until all remaining requests are within the specified parameters Prohibit “mutually- exclusive” requests Post study results with cost estimates for all requests, including removed OASIS request Executed AFSA Study Deposit NITS Application (NITS only) Attestation Statement (NITS only) OASIS request Executed AFSA Study Deposit NITS Application (NITS only) Attestation Statement (NITS only) Third-Party Process Aggregate Facilities Study #1 Increase in Parameters May 15 Nov 15 Only requests with specified parameters that ARE NOT met may increase their parameters, all others move to the next iteration, unchanged. Study deemed complete At least one request with parameters not met? NO YES At least one request with unmet parameters not increased? YES NO

10. APPLICATION PROCESS 10

11. Open Season 11 Open season will be 6 months in duration. The TC will submit a completed application by the close of open season to have their request included in the upcoming study. Studies will be identified by the Study ID listed in the table, where {Year} is the calendar year in which the Open Season ends. Study IDOpen Season {Year}-AG1December 1 – May 31 {Year}-AG2June 1 – November 30

12. Completed Application Requirements 12 At the close of an open season, only Completed Applications will be included in the related study. 1.SPP OASIS request 2.Aggregate Facilities Study Agreement (AFSA) 3.Study Deposit 4.NITS Application (NITS only) 5.Attestation Statement (NITS only)

13. Completed Application - SPP OASIS Request Guidelines: Requests may be submitted and withdrawn without any obligation during an open season. Request for service is required to begin no earlier than 6 months after the close of the open season. Customers are encouraged to submit requests as much in advance as possible. 13

14. 14 Completed Application – AFSA Contents AFSA Guidelines: Download the AFSA from the SPP OASIS Transmission Service Study (TSS) page. Specify the parameters for which you will accept the requested transmission service. Sign and submit the AFSA to SPP by the close of open season, otherwise the request will be withdrawn. AFSA Guidelines: Download the AFSA from the SPP OASIS Transmission Service Study (TSS) page. Specify the parameters for which you will accept the requested transmission service. Sign and submit the AFSA to SPP by the close of open season, otherwise the request will be withdrawn.

15. Completed Application – AFSA 15 Acceptable addresses: Physical mailing address PO Box Email address Fax phone number Customer must enter date and name on page 1 of AFSA. Similar to ACA

16. Completed Application – AFSA 16 List any related GI number(s). List all OASIS requests covered by agreement.

17. Completed Application – Executing the AFSA 17 Ensure that the bottom of Section 17.0 is signed and dated. By executing the AFSA, the customer is agreeing to take the transmission service if all specified parameters are met in the study. (AFSA, Section 2.0, “Obligations of Applicant”)

18. Completed Application – AFSA Appendix 1 18 If cost parameters are specified in Section (3), then it will SUPERSEDE cost parameters that are specified in Sections (1) and (2). If no parameters are specified in Section (3), then parameters in Sections (1) and (2) will be applied individually. Revised from the ACA

19. Completed Application – AFSA Appendix 1 19 If Section (4) is left blank, then Start Date in the OASIS request will be the study parameter. If Section (5) is left blank, then no Interim Redispatch service will be used to start service as soon as possible. If Section (6) is left blank, then Section (1) or (3) will be used as the LOC amount specified.

20. Completed Application - Study Deposit Guidelines: A deposit will be required for each request when the AFSA is submitted. The deposit amount will be equal to $100 per MW times the maximum requested transmission capacity or $5000, whichever is greater. Submit the deposit by the close of open season. 20

21. Completed Application - NITS Application (NITS) Complete the NITS Application and submit via email to ATSS@spp.org.ATSS@spp.org All fields must be completed for study purposes, unless listed as an exception. If all requests submitted represent proposed service under the same NITS Agreement, then a single application will suffice. Submit the NITS Application by the close of the open season. 21

22. Completed Application – Attestation Statement (NITS) Submit a signed Attestation Statement regarding the DR ownership/purchase in the NITS Application. A template is available on SPP OASIS link.link Email signed statement by the close of open season to ATSS@spp.org. 22

23. Commencement of the New Aggregate Study The study will begin at the close of an open season. SPP will post the results from the first iteration of the Aggregate Study once it is completed. Once the results have been posted, the parameters modification window will open for customers to increase their request parameters if one or more of their conditions were not met. 23

24. PARAMETER MODIFICATION WINDOW 24

25. Parameter Modification Window If the parameters for a request were not met, the customer will have one opportunity to increase them. –Increasing parameters in the AFSA to accommodate the results of the study:  To be completed within 5 Business Days of the posting of the results of the first iteration.  If customer does not adjust the conditions that were violated during the open modification window, then the request will be withdrawn from the study. If all conditions are met for all requests in the first iteration of the study, then SPP will deem the study complete. 25 * A Business Day is defined in the Tariff as “a day on which the Federal Reserve System is open for business.”

26. Study Process Continues... After the posting of the first iteration... As iteration of the study proceeds, if one or more customer’s conditions are not met, then SPP will remove the request from the study. –For a request(s) removed from the study as a result of not meeting the customer’s conditions, SPP will refuse the customer’s request in SPP’s OASIS. For the requests remaining in the study, SPP will conduct an additional iteration, if necessary. The study will be deemed complete once all remaining customers’ conditions have been met. 26

27. Study Completion Upon completion, SPP will: Finalize the solutions for the study and the cost estimates for upgrades necessary to provide the request. Determine allocation of the estimated cost to provide the request. Post results for all requests, including refused. Advise the Customer of any required changes to the OASIS requests to align with the final study results. Accept all requests that have met the completion conditions on SPP OASIS. Refuse all requests whose parameters were not met on SPP OASIS. 27

28. Costs for New Aggregate Study All customers entering a study shall be responsible for the cost of the study. The study costs will be prorated among the customers based on the maximum requested transmission capacity. The customer’s study deposit will be used as payment for the study and if a customer’s cost for the study is: –less than the deposit, SPP will refund any remaining deposit with accrued interest, if any. –greater than the deposit, the customer will be responsible for any cost in excess of its deposit. The amount billed for the Study shall not exceed the actual cost of the study. 28

29. 3 RD PARTY IMPACTS 29

30. 3 rd Party Process Agreement is not reached with 3 rd party or time expires Agreement is not reached with 3 rd party or time expires Request is Accepted and Service Agreement is Tendered Applicable 3 rd Party Evaluation Process Third-Party Clears Request Customer Confirms Service (and Executes Service Agreement) Request is terminated and withdrawn Re-Run Cost Allocation Notify Customer of MWP and Tender Sponsored Upgrade Agreements Settlement of Make Whole Payment Incorporate into Creditable Upgrades Database or document ILTCR 30

31. 3 rd Party Impacts Customers with unresolved 3rd party impacts after study completion may postpone confirmation of service until the earlier of: –the service start date, or –one year after study completion Extension of time of up to 90 days may be requested If the 3 rd party impact is not resolved, the request will be terminated and withdrawn, and the customer may be subject to a make- whole payment. 31

32. 3 rd Party Process: Make-Whole Payment If the request is terminated due to unresolved 3 rd party impacts, the customer will pay for any shared upgrade costs in the form of a Make-Whole Payment (MWP). Customers that pay a MWP will execute a Sponsored Upgrade agreement. Sponsored Upgrades are eligible to receive revenue credits or Incremental LTCR (ILTCR). 32

33. WAIVER PROCESS 33

34. Waiver Types Eligibility Waiver –Service request does not meet the requirements for Base Plan funding in Section III.B.1, Attachment J of the SPP OATT. –NITS Application, Table 8 was added to assist in determining eligibility. Cost exceeds Safe Harbor Waiver –Service request meets the requirements for Base Plan funding, but the allocated costs exceed the SHCL. 34

35. 35 Waiver Timeline

36. Eligibility Waiver Timelines: Submit by: –AG1 -> February 1 –AG2 -> August 1 BOD Action by: –AG1 -> May 1 –AG2 -> November 1 36

37. Cost exceeds Safe Harbor Waiver Timelines: Submit within 15 days following of AFS-1 –Include duplicate TSR BOD Action –AG1 -> November 1 –AG2 -> May 1 Applies to current study or to next study with duplicate TSR 37

38. New Aggregate Study Flowchart 38 Retract requests outside the parameters Open Season Study Iterations #2, #3, etc. Tender Service Agreements 165 Days Day 1165 Dec 1 June 1 Remove requests outside parameters from analysis Completed Application Accept/Confirm all requests within parameters Process continues without customer intervention until all remaining requests are within the specified parameters Prohibit “mutually- exclusive” requests Post study results with cost estimates for all requests, including removed OASIS request Executed AFSA Study Deposit NITS Application (NITS only) Attestation Statement (NITS only) OASIS request Executed AFSA Study Deposit NITS Application (NITS only) Attestation Statement (NITS only) Third-Party Process Aggregate Facilities Study #1 Increase in Parameters May 15 Nov 15 Only requests with specified parameters that ARE NOT met may increase their parameters, all others move to the next iteration, unchanged. Study deemed complete At least one request with parameters not met? NO YES At least one request with unmet parameters not increased? YES NO

39. Eligibility Waiver Process Flowchart 39 Retract requests outside the parameters Open Season Study Iterations #2, #3, etc. Tender Service Agreements 165 Days Day 1165 Dec 1 June 1 Remove requests outside parameters from analysis Completed Application Accept/Confirm all requests within parameters Process continues without customer intervention until all remaining requests are within the specified parameters Prohibit “mutually- exclusive” requests Post study results with cost estimates for all requests, including removed OASIS request Executed AFSA Study Deposit NITS Application (NITS only) Attestation Statement (NITS only) OASIS request Executed AFSA Study Deposit NITS Application (NITS only) Attestation Statement (NITS only) Third-Party Process Aggregate Facilities Study #1 Increase in Parameters May 15 Nov 15 Only requests with specified parameters that ARE NOT met may increase their parameters, all others move to the next iteration, unchanged. Study deemed complete At least one request with parameters not met? NO YES At least one request with unmet parameters not increased? YES NO Submit Waiver Request CAWG / MOPC / BOD Evaluates Waiver request granted or not granted Result Applied to Study Eligibility Waiver

40. Cost exceeds Safe Harbor Waiver Process Flowchart 40 Retract requests outside the parameters Open Season Study Iterations #2, #3, etc. Tender Service Agreements 165 Days Day 1165 Dec 1 June 1 Remove requests outside parameters from analysis Completed Application Accept/Confirm all requests within parameters Process continues without customer intervention until all remaining requests are within the specified parameters Prohibit “mutually- exclusive” requests Post study results with cost estimates for all requests, including removed OASIS request Executed AFSA Study Deposit NITS Application (NITS only) Attestation Statement (NITS only) OASIS request Executed AFSA Study Deposit NITS Application (NITS only) Attestation Statement (NITS only) Third-Party Process Aggregate Facilities Study #1 Increase in Parameters May 15 Nov 15 Only requests with specified parameters that ARE NOT met may increase their parameters, all others move to the next iteration, unchanged. Study deemed complete At least one request with parameters not met? NO YES At least one request with unmet parameters not increased? YES NO Submit Waiver Request CAWG/MOPC /BOD Evaluation Waiver request granted or not granted Parameters not Increased Submit Waiver Request and TSR in Next Study CAWG/MOPC /BOD Evaluation Waiver request granted or not granted Result Applied to Service Agreement Result Applied in Next Study Cost exceeds Safe Harbor Waiver

41. TRANSITION PERIOD 41

42. 42 Now Until November 30, 2015 Transitioning Requests Requests that were queued for study between March 1 and May 31, 2015 (“Transitioning Requests”) will be included in the 2015-AG2 study along with all new requests received during the open season for 2015- AG2. Transitioning Requests must satisfy all requirements of a completed application under the new process, including study agreement, start date, and deposit. 2015-AG1 Study will continue under the old process until it is complete.

43. Posting of Documents on spp.org 43 * Updated Documents will be posted to the folder as they become available. * Please note that spp.org will be updated by the time the new process begins so folder locations may change.

44. Posting of Process Guidelines on spp.org 44 * Updated Documents will be posted to the folder as they become available. * Please note that spp.org will be updated by the time the new process begins so folder locations may change.

45. 45 ATSS Contact Information Steve Purdy, Managerspurdy@spp.org (501) 614-3371spurdy@spp.org Eric Samson, Sr. Engineeresamson@spp.org(501) 614-3375esamson@spp.org James Bailey, Engineerjbailey@spp.org(501) 688-8243jbailey@spp.org David Duhart, Engineerdduhart@spp.org(501) 688-1705dduhart@spp.org Charlton Hill, Engineerchill@spp.org(501) 688-1716chill@spp.org Caitlin Shank, Engineercshank@spp.org(501) 482-2232cshank@spp.org John O’Dell, Analystjodell@spp.org(501) 688-8285jodell@spp.org General email: ATSS@spp.orgATSS@spp.org

46. EventEvent Timing Open seasonDec 1 st - May 31 th and June 1 st - Nov 30 th Completed Application Eligibility WaiverDeadline of Feb 1 st and Aug 1 st Posting of first iteration resultsWhen first iteration of the study is complete Parameters modification windowPosting of first iteration results (5 business days) Adjust conditions in AFSA Waiver submittal windowPosting of first iteration results (15 calendar days) Cost exceeds Safe Harbor Waiver Remaining study iterationsClose of waiver submittal window Study completion165 calendar days after open season starts unless notified Post study results with cost estimates Accept customer requests within parameters Retract requests outside parameter Customer confirm accepted request15 calendar days after SPP OASIS request is accepted SPP to tender Service AgreementsAfter customer confirms accepted SPP OASIS request Customer Executes Service Agreement30 calendar days after receipt of the Service Agreement Service start datePrior to service start date Service Agreement for NITS Network Operating Agreement Completion of Technical Arrangements Third-Party AgreementsStart date of request or 1 year after study completion 90-day Extension for Third-Party Agreement Completion Customer request (end of Third-Party Agreement window) New Aggregate Study Timeline 46

47. Definitions New Aggregate Study –First study under new methodology commences 12/1/2015. Backlog Clearing Process (BCP) –The process implemented upon FERC acceptance of SPP’s filing in ER13-2164 47

48. Definitions OASIS: Open Access Same-Time Information System PTP: Point-to-Point Transmission Service NITS: Network Integrated Transmission Service DR: Designated Resource SPP OATT: SPP Open Access Transmission Tariff SHCL: Safe Harbor Cost Limit DAUC: Directly Assigned Upgrade Costs MWP: Make-Whole Payment TC: Transmission Customer 48