1. Missouri River Energy Services
and Member Attachment O Customer Meeting
August 3, 2018
John Weber, Senior Transmission Engineer

2. Agenda Meeting Purpose MRES Profile MRES and MMU True-up for 2017
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 2017.
MMU true-up info on Attachment O from 2017.
True-up from 2017 along with forecast for 2019 will be incorporated into rates to be effective on January 1, 2019.
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. MRES MISO & SPP Members, Generation and Transmission
61 Members served
Transmission: ~362 miles
Generation: ~740 MW
Renewable: ~86 MW
MRES MISO & SPP Members, Generation and Transmission
Fort Peck Dam
Rugby Win Project d
ITA
Garrison Dam
Canyon Ferry Dam
Big Horn River
Yellowtail Dam
Marshall Wind Project
Pierre Solar Project
Irv
Simmons
Watertown Power Plant
Oahe Dam
Point Beach Nuclear Plant
Big Bend Dam
Gavin’s Point Dam
Odin Wind Project
Fort Randall Dam
Worthington Wind Project
Laramie River Station
MBPP
Exira Station
Red Rock Hydroelectric Plant
MRES Member in MISO Market
MRES Member in SPP Market
MRES Generation Resource
MRES Generation Resource Under Construction
Federal Hydroelectric Dam
CapX 2020 Transmission Routes

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)
Resolved in 2017 and the new ROE has been implemented
MRES filed for direct assignment of property taxes (ER )
FERC accepted 7/25/17
MRES has implemented for 2018 FLTY
MRES has performed 2 True-ups for 2017; 1 with changes, 1 without, and weighted the two to get an overall revenue requirement for the year

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. MRES 2017 True-Up Adjustment Overview
Actual Projected Difference
Net Revenue Requirement $5,004,725 $5,957,662 $952,937 (a)
Divisor True-Up
Divisor (kW) 685, ,607 1,704
Projected Rate ($/kW/Yr) $8.8017
True-Up (Divisor Difference x Projected Rate) $14,998 (b)
Interest - (a+b) * interest rate $77,776 (c)
Total 2017 True-Up Adjustment (Under Recovery) $1,045,711 (a+b+c)

9. 2017 MRES Annual Transmission Revenue Requirement Distribution
MRES Total ATRR
Attachment O, GG, MM
$19,786,279
Attachment O
$5,004,725
25.3%
$5,321,694
(After ER )
MISO
Attachment GG
CapX Fargo
$9,552,405
48.3%
Attachment MM
CapX Brookings
$5,229,149
26.4%

10. 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 – 1 Year Lag (was Prior Year)
ITC-M Zone - WPU– 1 Year Lag
NSP Zone – MMU - FLTY

11. MMU 2017 True-Up Adjustment Overview
Actual Projected Difference
Net Revenue Requirement $1,888,488 $1,929,479 $40,991 (a)
Divisor True-Up
Divisor 76, ,259 1,160
Projected Rate ($/kW/Yr) $24.974
True-Up (Divisor Difference x Projected Rate) $28,970 (b)
Interest ((a + b) * interest rate) $993 (c)
Total 2017 True-Up Adjustment (Under Recovery) $13,014 (a+b+c)

12. Revenue Requirements for 2017 TU / 2018 ALP BMU DLPU HUC MMU WPU
Net Attachment O
Revenue Requirement
$ ,879
$ ,018
$ ,128
$ 1,053,887
$ 2,100,897
$ ,052

13. Questions
If you have any questions after the meeting, please submit via to John Weber: 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. ( )