1. Missouri River Energy Services
and Member Attachment O Customer Meeting
August 25, 2017
Terry Wolf, Manager of
Transmission Services

2. Agenda Meeting Purpose MRES Profile MRES and MMU True-up for 2016
MRES member historical rate information
Question/Answer

3. Meeting Purpose MRES background Regulatory Changes / Timelines
MRES and MMU specific rate information
MRES true-up info on Attachment O/GG/M from 2016.
MMU true-up info on Attachment O from 2016.
True-up from 2016 along with forecast for 2018 will be incorporated into rates to be effective on January 1, 2018.
MRES member rate information
ALP Utilities (ALP), Benson Municipal Utilities (BMU), Detroit Lakes Public Utilities (DLPU), Hutchinson Utilities Commission (HUC), and Worthington Public Utilities (WPU).

4. Worthington Wind Project Red Rock Hydroelectric Plant
60 Members served
Transmission: ~362 miles
Generation: ~740 MW
Renewable: ~86 MW
Missouri River
Energy Services
Odin Wind Project
Worthington Wind Project
Marshall Wind Project
Laramie River Station
Exira Station
Watertown Power Plant
Missouri River
Yellowstone River
Big Horn River
Canyon Ferry Dam
Fort Peck Dam
Yellowtail Dam
Garrison Dam
Oahe Dam
Big Bend
Dam
Fort Randall Dam
Gavin’s Point Dam
Rugby
Wind Project
Point Beach Nuclear Plant
Red Rock Hydroelectric Plant
MBPP
Irv
Simmons
CapX
Fargo
Brookings
ITA
MRES Member
MRES Generation Resource
Planned MRES Generation Resource Federal Hydroelectric Dam
Transmission Projects (MBPP, Irv Simmons,
ITA, CapX (Fargo, Brookings)

5. MRES FERC Background
Transmission facilities are owned by Western Minnesota Municipal Power Agency (WMMPA)
FERC Declaratory Order (EL08-22, 12/08) combines financial statements for ATRR
Attachment O effective 6/1/11
Incentive filing (EL11-45, 6/11)
CapX; Fargo P2 & P3, and Brookings
CWIP, Abandon Plant, Hypothetical cap structure
205 filing (ER12-351, 11/11)
FERC Approved ER12-351, and EL on January 20, 2012

6. Regulatory / FERC Issues
Complaint against MISO TOs regarding ROE and certain TOs regarding capital structure (EL15-45)
Unknown timing and impacts
Resolved in 2017??
MRES filed for direct assignment of property taxes (ER )
FERC accepted 7/25/17
MRES will implement for 2018 FLTY
MRES will perform 2 True-ups for 2017; 1 with changes, 1 without
Does not impact 2016 True-up

7. Regulatory / FERC Issues, Procedures and Timing cont.
By June 1st
Post actual calculations and true-ups based on prior year’s Rate Information
By September 1st
Meet with Interested Parties to discuss the actual prior year’s Rate information
By October 1st
Post FLTY info for MRES and MMU
December 1st
Deadline for information requests
By January 10th
Must respond to information requests
January 31st
Deadline for informal challenges
March 15th
Annual Informational filing
March 31st
Deadline for formal challenges

8. True-up of Attachment O / GG / MM
MRES and MMU
MMU doesn’t have any GG or MM costs
Forward Rate Requirements
Rate Base
Operating Expenses
Revenue Requirement and Rate
Network Rate Summary

9. MRES 2016 True-Up Adjustment Overview
Actual Projected Difference
Net Revenue Requirement $4,922,271 $6,190,292 $1,268,021 (a)
Divisor True-Up
Divisor (kW) 682, ,773 (1,360)
Projected Rate ($/kW/Yr) $9.093
True-Up (Divisor Difference x Projected Rate) ($12,366) (b)
Interest - (a+b) * interest rate $89,115 (c)
Total 2016 True-Up Adjustment (Under Recovery) $1,369,502 (a+b+c)

10. 2016 MRES Annual Transmission Revenue Requirement Distribution
MRES Total ATRR
Attachment O, GG, MM
$19,133,645
Attachment O
$4,922,271
25.7%
$4,834,860
(After True-up)
MISO
Attachment GG
CapX Fargo
$9,490,269
49.6%
Attachment MM
CapX Brookings
$4,721,105
24.7%

11. MRES member Attachment O Information
MRES is MISO TO on behalf of 6 MRES members
MRES is contact for any initial questions
Standard MISO templates for 5, and FLTY for 1
OTP Zone
ALP – Prior Year
BMU – 1 Year Lag
DLPU– 1 Year Lag
GRE Zone – HUC - Prior Year
ITC-M Zone - WPU– 1 Year Lag
NSP Zone – MMU - FLTY

12. MMU 2016 True-Up Adjustment Overview
Actual Projected Difference
Net Revenue Requirement $2,014,184 $2,056,792 $(42,608) (a)
Divisor True-Up
Divisor 76,308 81,166 4,858
Projected Rate ($/kW/Yr) $
True-Up (Divisor Difference x Projected Rate) $123,105 (b)
Interest ((a + b) * interest rate) $5,680 (c)
Total 2016 True-Up Adjustment (Under Recovery) $86,177 (a+b+c)

13. Revenue Requirements for 2016 TU / 2017 ALP BMU DLPU HUC MMU WPU
Net Attachment O
Revenue Requirement
$ ,806
$ ,944
$ ,665
$ 1,013,483
$ 2,014,184
$ ,781

14. Questions
If you have any questions after the meeting, please submit via to Terry Wolf: All questions and answers will be posted on the MRES OASIS website along with any follow-up questions received within two weeks from the date of inquiry on the OASIS site. ( )