Evolving Economic Dispatch in SPP Midwest Electric Consumers Association Jon Sunneberg - NPPD December 13, 2017

SPP Generation Capacity Coincident Peak Load: 50,622 MW Minimum Load: 20,540 MW SPP forecasts minimal load growth

SPP Wind Development SPP is the “Saudi Arabia” of wind: 60,000-90,000 MW potential More wind energy than SPP uses during peak demand 17,550 MW capacity of in-service wind 43,839 MW wind in all stages of development Includes 36,790 MW in the Generation Interconnection queue and 7,049 MW of executed Interconnection Agreements SPP Forecast show $2 - $3/MWh reduction in average LMP (Locational Margin Price) in 2021 Modeling The SPP region is rich in wind resources. There is more potential wind energy in the footprint than SPP could absorb. NOTE: We do not have a way to track wind that doesn't or hasn't gone through the SPP planning process - such as wind that predates different stages of our generation interconnection process and wind that is not SPP-jurisdictional (including distribution wind).

SPP Generation Interconnection Requests (Pending) The SPP region is rich in wind resources. There is more potential wind energy in the footprint than SPP could absorb. NOTE: We do not have a way to track wind that doesn't or hasn't gone through the SPP planning process - such as wind that predates different stages of our generation interconnection process and wind that is not SPP-jurisdictional (including distribution wind).

SPP Market Pricing Impact (Is it only Wind?) Negative Energy prices during low overnight demand and high wind output

SPP Dispatch Considerations

SPP Market Inefficacies Self committed generation Self Dispatched Coal Fuel Contract concerns Market Design limitations related to Start Up timing and cost recovery Nuclear Only 2 nuclear plants in SPP Non-dispatchable wind (NDVER) 6,000 MW NDVER Typically older installations All new wind must be dispatchable

NPPD Dispatch Concerns Self Committed Generation Coal - Mix of Market and Self Dispatch Sheldon Units – 26 individual starts in 2017 Cycling and ramping causes additional wear and tear on the units Cooper Nuclear Station – 800 MW Non Dispatchable Wind SPP values flexibility in dispatch model Flexibility has a cost (ramping, cycling) Ensuring accurate information to SPP (cost, timing)

Proposed Market Enhancements Wind Convert NDVER generation to Dispatchable Overall market benefit, but there is cost to utilities Baseload Generation Multi Day Market view Place a value on reliability benefits provided Transmission infrastructure Ensure a tie between generation and transmission improvement processes Need to reduce transmission congestion

Questions?