Structured / Unstructured Market Trials Weekly Update – Friday Meeting September 27, 2013

Call Reminders Please help to minimize disruptions: Mute your phones Do not dial-in from a recorded line Do not put the call on hold, even if you are on mute When asking a question on the phone, please state your name and the entity you represent 2

Agenda Preliminary Results Sept 23 – 27 (5 min) 9:00 – 9:05A Analysis Sept 16 – 20 (40 min) 9:05–9:45A Settlements (20 min) 9:45–10:05A Announcements & Outstanding Questions (15 min) 10:05–10:20A COP True-Up Report – Matt Johnson, TEA (5 min) 10:20 – 10:25A Look-Ahead Sept 30 – Oct 3 (15 min) 10:25 – 10:40A Updates (10 min) 10:40 – 10:50A Release Scorecard Migration Report Known Issues Log Questions (10 min) 10:50 – 11:00 A TCR Meeting 11:00A 3

Preliminary Results from Sept Alan Adams Scheduled Scenarios 21.0 RTBM Scarcity Shortages 15.0 Commitment Mismatch Questions?

Analysis: Sept 16 – Sept 20 5 Alan Adams Structured Market Trials Statistics posted the day after each OD Structured Market Trials Statistics spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder > Structured Market Trials Presentations, Statistics, MP Meetings Analysis of Sept 16 – 20 Operating Days posted Tues to spp.org Analysis spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder > Structured Market Trials Presentations, Statistics, MP Meetings

Market Settlement System (MSS) Known Issues Goal to be at 100% upstream data by October 1. Only 2 upstream data issues remaining. KIL# 622 Baseline Hourly Quantity (DRLs). KIL# 732 Day Ahead Commitments 6 Tony Alexander

Market Settlement System (MSS) Known Issues KIL# 622 Fill in missing data with DRL Snapshot prior to commitment. If MPs do not submit their Baseline data for DRLs then POPS will fill the missing data. Until this is fixed, Settlements will need to use test data for Baseline data. Fix is expected to be installed in Production by September Tony Alexander

Market Settlement System (MSS) Known Issues KIL# 732 Settlements not able to receive Day Ahead Commitments from Markets. Fix is expected to be installed in Production by September 27. Settlements for Sep-25 OD forward will include upstream DA Commitment data. 8 Tony Alexander

Settlements Charge Type Scorecard 9 Key Week of  Complete  9/2/2013  In Progress   Not Started  Charge Types by Scenario  Groundhog Data  Roll-Up Charge Type% MPs Hit Scenario% MPs Hit DaEnergyHrlyAmt94%1‘Base’ Energy and Operating Reserve Settlement79% RtEnergy5MinAmt98%2Make-Whole Payment0% DaRegUpHrlyAmt96%3Regulation Non-Performance55% DaRegDnHrlyAmt98%4Contingency Reserve Deployment Failure74% DaSpinHrlyAmt98%5Day Ahead Non-Asset Energy38% DaSuppHrlyAmt94%6Real Time Non-Asset Energy57% RtRegUp5minAmt100%7‘Base’ Energy Import/Export91% RtRegDn5minAmt100%8Energy Import/Export – Make Whole Payment Distribution0% RtSpin5minAmt98%9Real Time Regulation Adjustment98% RtSupp5minAmt100%10Out Of Merit Energy and Reserve32% DaRegUpDistHrlyAmt100%11‘Base’ Virtual Energy Transaction0% DaRegDnDistHrlyAmt100%12‘Base’ TCR Auction Settlements24% DaSpinDistHrlyAmt100%13TCR Auction Settlement - End of Month24% DaSuppDistHrlyAmt100%14‘Base’ TCR Settlement25% RtRegUpDistHrlyAmt100%15TCR Settlement - End of Month25% RtRegDnDistHrlyAmt100%16TCR Settlement - DA Market Fails to Solve0% RtSpinDistHrlyAmt100%17Miscellaneous0% RtSuppDistHrlyAmt100% RtRegAdj5minAmt98% DaOclDistHrlyAmt96% RtOclDistHrlyAmt96% Tony Alexander

Settlements Charge Type Scorecard 10 RtSuppDistHrlyAmt100% RtRegAdj5minAmt98% DaOclDistHrlyAmt96% RtOclDistHrlyAmt96% DaMwpCpAmt0% DaMwpDistHrlyAmt0% RtMwpDistHrlyAmt0% RtMwpCpAmt0% RtRegNonPerf5minAmt55% RtRegNonPerfDistHrlyAmt55% RtCRDeplFailAmt79% DaNEnergyHrlyAmt38% RtNEnergy5minAmt57% RtCRDeplFailDistHrlyAmt64% RtOom5minAmt28% DaVEnergyHrlyAmt21% RtVEnergy5minAmt20% DaVTxnFeeAoAmt22% ArrAucTxnDlyAmt23% ArrUpliftDlyAmt23% ArrPaybackMnthlyAmt22% RtRnuHrlyAmt0% TcrFundHrlyAmt27% TcrUpliftDlyAmt23% TcrPaybackMnthlyAmt22% TcrAucTxnDlyAmt27% MiscDlyAmt0% Tony Alexander

Charge types not using stubbed data 11 DaEnergyHrlyAmtDaSuppDistHrlyAmtRtCRDeplFailDistHrlyAmt RtEnergy5minAmtRtRegUpDistHrlyAmtRtOom5minAmt DaRegUpHrlyAmtRtRegDnDistHrlyAmtDaVEnergyHrlyAmt DaRegDnHrlyAmtRtSpinDistHrlyAmtRtVEnergy5minAmt DaSpinHrlyAmtRtSuppDistHrlyAmtDaVTxnFeeAoAmt DaSuppHrlyAmtRtRegAdj5minAmtArrAucTxnDlyAmt RtRegUp5minAmtDaOclDistHrlyAmtArrUpliftDlyAmt RtRegDn5minAmtRtOclDistHrlyAmtArrPaybackMnthlyAmt RtSpin5minAmtRtRegNonPerf5minAmtTcrFundHrlyAmt RtSupp5minAmtRtRegNonPerfDistHrlyAmtTcrUpliftDlyAmt DaRegUpDistHrlyAmtRtCRDeplFailAmtTcrPaybackMnthlyAmt DaRegDnDistHrlyAmtDaNEnergyHrlyAmtTcrAucTxnDlyAmt DaSpinDistHrlyAmtRtNEnergy5minAmt These 38 Charge Types (86%) are not using stubbed data. MPs should validate these Charge Types “Bid to Bill”. Tony Alexander

Commercial Model Update Commercial Model Oct 1 Update Oct 1 update will terminate/change/split/merge any Asset Owners and/or Settlement Locations used in the commercial model –Settlements will no longer be able to settle any of the affected Market Trials ARRs/TCRs for Market Trials Settlements  All SMT ARR/TCR records with an Asset Owner or Settlement Location that is being terminated will be settled up to the termination date  Any MP with a single TCR instrument that is terminated will not be included in any SMT TCR Settlements beyond the termination date –TCR team will inform Settlements of affected records and Settlements Team will remove records from pre-staging tables so they don’t get settled  Results may look slightly “off”  Please note that there will be some records missing when conducting Revenue Analysis on Market Trials 12 Casey Cathey

Announcements & Outstanding Questions MP Feedback on Scenario Documents Please review Scenario Documents on spp.orgScenario Documents spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder > Structured Market Trials Scenarios Provide any feedback via RMS prior to execution of the ScenarioRMS Use the “Structured Market Trials” Quick Pick in RMS IDT MP Guide 2.0 *Applicable to Asset Owning MPs Please review the IDT MP Guide 2.0 on spp.orgIDT MP Guide 2.0 spp.org > Integrated Marketplace > Market Trials > Integrated Deployment Test (as part of Parallel Ops) Respond with feedback and/or questions via RMS by Oct 4RMS Use the “Parallel Operations” Quick Pick in RMS 13 Ginny Watson

Critical Notifications ‘Critical’ Notifications If you have ‘critical’ notifications to your business processes, please submit an RMS Ticket with the subject line ‘Critical Notifications’RMS Ticket Use the “Structured Market Trials” Quick Pick in RMS 14 Casey Cathey

COP True Up Report (Commitment Report) Feedback from Matt Johnson – TEA 15 Ginny Watson

Look-Ahead: Sept 30 – Oct 4 16 Sept 23 – Sept 29 Daily Calendar Sept 23 – Sept 29 spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder Includes some Settlements Dates. All details on Settlements Calendar marketplace.spp.org > Public > Settlements > CalendarsSettlements Calendar Scheduled Scenarios 6.1 DA Capacity Excess 6.2 RUC Capacity Excess Official Operating Days Monday - Friday Friday Maintenance Saturday reserved for MP Testing Ginny Watson

6.1 DA Capacity Excess Scenario Description This Scenario will simulate a capacity surplus on a system-wide basis calculated as the sum of Self-Committed capacity at minimum output, Fixed Import Interchange Transaction Offers and the Regulation-Down requirement that is in excess of the sum of Fixed Demand Bids and Fixed Import Interchange Transaction Bids. The intent is to run the DA Market and hit all levels of Capacity Excess at some point throughout the day. This will mean transitioning from the highest level of excess requiring Firm Import Curtailments and Resource Clearing below Emergency Minimum Resource Limits during some of the off-peak hours to no Excess condition near peak of the day. 17 Alan Adams

6.1 DA Capacity Excess Expected Result 1. Curtail non-firm Fixed Import Interchange Transactions 2. Incorporate capacity down to Resources’ Minimum Emergency Capacity Operating Limit on an economic basis, while attempting to maintain the Regulation Down requirement to the extent possible. If, after SCUC, the sum of the Minimum Emergency Capacity Operating Limits on self- committed resources plus the Regulation Down requirement plus firm Fixed Import Interchange Transactions is in excess of the cleared bid-in demand in any hour, the SCED algorithm will: –1. If Regulation Down shortage exists, Regulation-Down MCPs will be using the Regulation Demand Curve (Scarcity Pricing) –2. If a capacity excess still exists after all Regulation-Down capability is removed, the SCED algorithm will reduce the firm Fixed Import Interchange Transactions and Resources emergency minimum limits on a pro-rata reduction basis such that the resulting sum of minimum limits and cleared transactions matches the bid-in demand and Scarcity Pricing will continue to be invoked. 18 Alan Adams

6.1 DA Capacity Excess MP Activities *Applicable to MPs with Load 50% of their Load as Fixed Demand Bids No Price-sensitive Demand Bids should be submitted * Applicable to MPs with Resources Submit resources with a commit Status of Self to meet Demand Bid or more. All Resources expected to be online in the EIS Market that have not met their minimum run times will be included in the set of Resources that have a commitment Status of Self. Ensure that some resources have different Economic and Emergency Minimum limits Additional Resources should be offered with a Commit Status of Market Submit OR Offers as normal 19 Alan Adams

6.1 DA Capacity Excess MP Activities *Applicable to All MPs Do not submit Virtual Bids (Optionally) continue to submit a limited amount of Virtual Offers (should not clear in hours with excess) Submit Firm and Non-Firm Fixed Import Interchange Transactions Each MP should submit a 50 MW non-firm Import and a 50 MW Firm Import schedule for each hour of the day. Each MP should submit a disptachable Import Schedule for all hours for 25 MW. These schedules should not clear during excess conditions. SPP will continue to load Fixed Export transactions into ITE RTOSS from EIS Production RTOSS. MPs should not submit any additional Fixed Firm and Non-Firm Export Interchange Transactions. No Export Dispatchable or Up-to-TUC Export schedules should be submitted 20 Alan Adams

6.1 DA Capacity Excess MP Activities *Applicable to All MPs (continued) Prior to Market Close: Ensure the sum of Self-Committed Resource Offers at minimum and firm Fixed Import Interchange transactions is greater than the sum of their bid-in Fixed Demand Bids and firm Fixed Export Interchange Transactions, for at least some of the lowest load times of the off peak hours. This will be a manual check. SPP does not want all hours of the day to be in the highest state of excess for this Scenario, so the off peak hours are sufficient. After Market Clearing: For those hours in which capacity excess exist, ensure there are no cleared virtual offers or price- sensitive Import Interchange transactions Confirm that Non-firm schedules were curtailed during shortage conditions For hours in which firm Fixed Import Interchange Transactions and Resource minimum limits are reduced: –No resources cleared for Regulation Down –The Firm Schedule Curtailments are shown in RTOSS For those hours –Self-Scheduled Resources cleared below their submitted Emergency Minimums –No other Market Offer Resources were cleared 21 Alan Adams

6.2 RUC Capacity Excess Scenario Description This Scenario will simulate a Generation Surplus. The sum of the Mid-Term Load Forecast and Fixed Export Interchange Transactions are less than the amount of online generation capacity and Fixed Import Interchange Transactions leading to a Generation Surplus Condition. The purpose of this Scenario is to step through the Emergency Logic that will be used to alleviate the Surplus Condition. MPs will be able to see the decommittment of Resources without outages. MPs will be made aware of any other Emergency Logic anomalies seen by SPP during the Generation Surplus Scenario 22 Alan Adams

6.2 RUC Capacity Excess Expected Result If the sum of Self-Committed capacity at minimum output, Fixed Import Interchange Transaction and the system-wide Regulation-Down requirement is in excess of the sum of the SPP system-wide Mid-Term Load Forecast and fixed Export Interchange Transactions, the RUC SCUC algorithm study will, in priority order: –1. Curtail non-firm Fixed Import Interchange Transactions until the capacity surplus is eliminated.  MPs will not see this action as this is internal to the RUC solution and Real-Time curtailment in RSS is not taking place. –2. Incorporate capacity down to Resources’ Minimum Emergency Capacity Operating Limit on an economic basis until the capacity surplus is eliminated while attempting to maintain the Regulation-Down requirement to the extent possible.  MPs will not see this action as this is internal to the RUC solution. The actual releasing of Emergency Limits will only occur in Real-Time. 23 Alan Adams

6.2 RUC Capacity Excess Expected Result (continued) –3. De-commit Resources that were committed in the DA Market with a Commit Status of Market until the capacity surplus is eliminated  MPs will receive a STOP or OFF commitment in the MUI. These notifications are located on the Resource Offers tab, under Resource Name -> Date -> Commitment -> View  MPs will receive a STOP or OFF commitment in the PostEnergyCommitmentSetXML notification –4. De-commit Self-Committed Resources until the capacity surplus is eliminated  MPs will receive a STOP or OFF commit notification in the MUI. These notifications are located on the Resource Offers tab, under Resource Name -> Date -> Commitment -> View  MPs will receive a STOP or OFF commitment in the PostEnergyCommitmentSetXML notification A notification via the MUI/API will be sent no later than 2000 notifying MPs of the potential Capacity Excess. This notification will identify the hours of the expected Capacity Excess and potential steps to eliminate the problem. –MUI notifications will be located on the Market tab, under Date > General > Messages –XML notification will be located in the postMessageSet 24 Alan Adams

6.2 RUC Capacity Excess *Applicable to MPs with Resources MPs are to offer in the following: Submit some offers where the Resource’s Emergency Minimum Limit is less than the economic Minimum Limit –Once all Non-Firm Imports have been curtailed, Emergecny Limits will be released –To verify that the Emergency Limits are utilized and Resources are being dispatched under its EcoMin, the Emergency Minimum Limit must be less than the Economic Minimum Limit –MPs will not see this action as this is internal to the RUC solution and the actual releasing of Emergency Limits will occur in Real-Time. Submit at least one Resource with a Commit Status of “Market” –If the Emergency Condition still exists after all Non-Firm Imports have been curtailed and Emergency Limits have been released, Resources with a Commit Status of “Market” will be decommitted. Submit at least one Resource with Commit Status of Self –If the Emergency Condition still exists after all Non-Firm Imports have been curtailed, Emergency Limits have been released, and decommitment of Resources with a Commit Status of “Market”, Resources with a Commit Status of “Self” will be decommitted. MPs should ensure the receive a STOP or OFF commitment via the MUI or XML. 25 Alan Adams

6.2 RUC Capacity Excess *Applicable to All MPs Submit some Firm fixed Import Interchange Transactions –In a Capacity Surplus, the first step to alleviate the surplus is to curtail Non-Firm Imports. –Submit Firm Imports to verify that Firm Import are not being curtailed. Submit 50 MWs of Non-Firm Fixed Import Interchange Transactions –In a Capacity Surplus, the first step to alleviate the shortage is to curtail Non-Firm Imports –Submit Non-Firm Imports to ensure Non-Firm transactions are being curtailed Do not submit Export Interchange Transactions –Export Interchange Transactions should be zero to help induce the Capacity Surplus Ensure receipt of Potential Capacity Excess notification via the MUI/XML. –The MUI notification will be located on the Market tab under Date > General > Messages –XML notification will be located in the postMessageSet MT Tagged Transactions MT Tagged Transactions documentation posted to spp.org. **Additional Tags entered for this Scenario would be for Real Time Only. spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder > Structured Market Trials Reference Documents 26 Alan Adams

Release Scorecard 27 Release ScorecardRelease Scorecard posted to spp.org: spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder Ginny Watson

Migration and Maintenance Report 28 Migration and Maintenance Report Migration and Maintenance Report posted to spp.org spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder Annette Holbert

Known Issues Log 29 Market Trials Known Issues Log Market Trials Known Issues Log posted to spp.org spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder Carrie Simpson Issue #RMS ID #Component Synopsis Severity Markets Systems Market system is not respecting commitment or dispatch status updates to a resource after the resource is initially committed to the current operating plan. For example, a status change to "outage" after the initial commitment of the resource is not being used in the subsequent RUC studies Severity 1: Critical 725Markets - Other When an OOME is issued for an NDVER, the "follow" flag is not being set and is not being picked up to send to Wind Resouce Forecast System. Severity 2: High Markets UI The UI and API should not return a successful response when submissions are not saved to the Markets system. This behavior has been seen when participants attempt to update Energy or Operating Reserve Resource Offers that do not already exist in the Markets system. Background Information: As part of the modeling process, SPP is responsible for inserting the initial Energy and Operating Reserve Resource Offers for all resources based on the MPs registration data. Since SPP is responsible for the initial resource offers, the Markets UI and API do not allow MPs to inserting resource offers; they are only allowed to make updates. There have been instances reported where MPs submitted a resource offer, received a "COMMITTED" response, but the data was not actually saved. The MP discovered the data was not saved when attempting to view their submission. In each of these occurrences, the initial resource offer had not been created in the Markets system which explains why the data was not saved. The UI and API should return an error instead of a "COMMITTED" response. Severity 2: High

Known Issues Log 30 Carrie Simpson Issue #RMS ID #Component Synopsis Severity 724 Markets UI If a reserve cap spans multiple days, the timestamp and effective day displayed always match the start of the operating day not the actual time the reserve cap was originally implemented Severity 3: Medium 729Markets UI Remove Markets UI screens and API operations related to Mitigation Hours Severity 3: Medium

Scheduled Scenarios 31 Sept 30 – Oct DA Capacity Excess 6.2 – RUC Capacity Excess Oct – Manual and ID RUC Commitment 32 – Day before Day Ahead RUC Ginny Watson

Market Trials Useful Resources SMT Hotline: for critical & high issues Mon-Fri 8A – 5P Please submit all other inquiries via the Request Management System (RMS)Request Management System (RMS) Settlements Calendar marketplace.spp.org > Public > Settlements > Calendars Integrated Marketplace Market Trials Project Documentation Folder spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder Documents found here include: Daily Calendar, Release Scorecard, Migration Report, Known Issues Log, Market Participant Guidehere SMT Presentations, Statistics, MP Meetings Folder SMT Reference Documents Folder New! Tag Validation Criteria for MT TestingTag Validation Criteria for MT Testing SMT Scenarios Folder New! SMT Scenarios ScheduleSMT Scenarios Schedule Change Tracker spp.org > Integrated Marketplace > Marketplace Documents 32