SPP.org 1

Status Update: Retail Open Access for ETI within SPP Stakeholder Meeting June 20 th, 2008 Austin, TX

SPP.org 3 Solution Goals Implement ROA for ETI in accordance with Commission directive Leverage existing ERCOT and SPP systems and rules to make as few changes as possible

SPP.org 4 Activities Completed Since Last Meeting Determined SCR727 will be used to collect meter data from ERCOT Began work with SPP Settlements team to develop a list of activities, system changes, and associated complexities as inputs to cost estimates Determined preferred option for REP interaction (transmission access, scheduling and settlement) with ETI and SPP – REPs interact directly with SPP Developed list of activities associated with REPS becoming transmission customers

SPP.org 5 REPs as Transmission Customers in SPP Major Functions Registration  Each REP will be identified as a Transmission Customer and register as such with SPP  Existing ERCOT processes for registration, testing, data management, and disputes of retail system data will apply to REPs (no significant difference over current ERCOT-REP interaction) Reservation of Transmission Service and Capacity Adequacy  Load Serving members have responsibility for capacity planning under SPP Criteria 2  Assumption: ETI will continue to provide this function  Alternatives to this scenario can be discussed and selected prior to implementation

SPP.org 6 REPs as Transmission Customers in SPP Major Functions – (cont) Ancillary Services Obligations  REPs will need to procure required Ancillary Services (“AS”).  AS can currently be procured through utility’s tariffs.  SPP is a provider of last resort for AS.  No tariff changes will be required. Transmission Load Relief  Assumption: ETI would be provider of last resort. Scheduling  REPs would be required to schedule energy, identify AS and submit resource plans.  SPP’s Balancing Energy Market (EIS) market would be available to resolve shortfalls.

SPP.org 7 REPs as Transmission Customers in SPP Major Functions – (cont) Transmission and Distribution Settlements  ETI will need to bill REPs for services provided pursuant to the ETI tariff.  Interaction is similar to the relationship between TDSPs and REPs in ERCOT.

SPP.org 8 REPs as Transmission Customers in SPP Major Functions – (cont) Market Settlements  Settlement for REPs will occur within SPP’s existing settlement system. If using zonal pricing, no system changes to the core settlement system.  If more than one zone in ETI area, REPs would have to reserve transmission for each zone.  REPs act as full Market Participants and would receive invoices directly from SPP’s settlement system.  Aggregated ESI ID meter data will be needed within 45 days in order to complete settlements within SPP’s settlement timelines.  A new application/module will need to be built to aggregate data from the SCR727 database.

SPP.org 9 Activities In Progress Working with SPP team to determine aggregation/data flow processes for SCR767 data Developing cost estimates for settlement system changes related to data aggregation Researching credit processes/procedures Developing options for capacity adequacy

SPP.org 10 Next Steps Continue work on ROA data flow processes incorporating SCR767 data Work with Settlements team to drive out high level costs for aggregation processes and application changes. Research current credit processes and procedures Expand options for managing capacity adequacy Identify impacts to SPP staffing in supporting ROA

SPP.org 11 Questions?

SPP.org 12 Beth Miller Accenture accenture.com