1. Parallel Operations External MP Kick - Off Meeting 10/8/2013 SPP Parallel Operations Team

2. Agenda 2 Purpose and Objectives Purpose, Processes, Outcomes, Differences from SMT Role of SPP and MPs during Parallel Operations Parallel Operations Success Metrics/Readiness Purpose, Processes, Outcomes of Integrated Deployment Tests IDT Success metrics

3. PURPOSE AND OBJECTIVES 3

4. Market Trials – Where Are We? 4 Connectivity Test Structured Testing Unstructured Test Parallel Operations Testing (Integrated Deployment Testing) Go-Live

5. Purpose of Kickoff 5 Provide Market Participants with: Understanding of objectives of Parallel Operations and Integrated Deployment Testing How to Support the Objectives of Parallel Operations and IDT What are we doing? Why are we doing it? What are the expectations of the individual Market Participants? How will IDTs work?

6. OBJECTIVES Section 2 6

7. Parallel Operations Objectives 7 Process – How is this different from SMT Explain Integrated Deployment Testing Expectations Timelines Metrics Roles Expected Outcome Communication Plan

8. PARALLEL OPERATIONS PURPOSE, PROCESS, OUTCOMES, CHANGES FROM SMT 8

9. The Goal of Parallel Operations Exercise all SPP systems with full use of all policies and procedures as developed and tested during earlier phases of Market Trials. During the Integrated Deployment Tests (IDTs) the Real-Time systems focus on verifying the ability of SPP to maintain Area Control Error (ACE), to meet CPS1 and CPS2 standards, with all MPs and all available Resources being dispatched by the Integrated Marketplace. 9

10. Parallel Operations Processes Every day of the week is an “Official Operating Day”. DA, RUC, RTBM, RTGEN, & Settlements run daily. Seven scenarios not tested in SMT will be executed in Parallel Operations: –Scenario #7 - Must Offer –Scenario #13 - DDR with Settlements –Scenario #24 - Repricing (Part 2) with Study MCE –Scenario #28 - NFT with CMS –Scenario #29 - Reserve Sharing Group –Scenario #31 - BDR with Settlements –Grandfathered Agreements carve-out 10

11. Parallel Operations Processes All critical systems will be live and running in parallel with EIS systems. The EIS Market will continue to determine the Resources’ actual Dispatch Instructions and serve as the basis for all Settlements. Integrated Marketplace Setpoint Instructions will be sent to Market Participants for information only purposes. Offer Curves should continue to be consistent with EIS costs, and all submission items should continue to reflect EIS systems in such a way that same amounts of generation to be dispatched and same active transmission constraints are reflected in both systems. 11

12. Parallel Operations Outcomes/Exit Criteria Successful completion of Parallel Operations must demonstrate the robustness of the Integrated Marketplace software, processes, and systems, both from a technical and commercial perspective including the ability of SPP to reliably maintain ACE for the SPP Balancing Authority footprint within Compliance Standards. –Successful completion of Deployment Tests. –Successful execution of Integrated Marketplace Bid to Bill functionality consistently for 7 consecutive Operating Days according to protocol timelines. 12

13. Parallel Operations is not Integrated Deployment Testing The requirements to start Parallel Operations is decoupled from IDT –IDT may start without Parallel Operations –Parallel Operations may start without IDT The current timeline includes IDTs as specific tests within the Parallel Operations Market Trials testing sub-stage 13

14. Changes from SMT to Parallel Operations Communications –Hotline will be used during the first 2 weeks of Parallel Operations (11/12 – 11/27). –Hotline process ends on 11/27; no weekend or Holiday coverage. Additional Communications channels (Starting 11-12) –For Real-Time Operational issues.  Contact SPP Operations Desk (24x7). –For Questions, Inquiries, Requests, etc.:  Submit an RMS with your issue, inquiry or request (24x7).  Contact your SPP Customer Relations Representative by phone or email (8 AM – 5 PM CDT). 14

15. Changes from SMT to Parallel Operations Logistics –Parallel Operations will operate from Maumelle in November. –Resource planning will look similar to SMT. –First 2 IDTs will be performed from Maumelle and are tentatively scheduled to run from 9:30-11:30 am on 11/19 and 11/21. –All appropriate access, systems should be tested and support staff engaged for the IDTs. –Staffing to support all IDTs. –Move to ODC beginning of December. 15

16. Changes from SMT to Parallel Operations Tracking Mechanisms –RMS reports will continue throughout Parallel Operations. –Known Issues Log continue. –Release Scorecard will continue to be updated until everything is operational for Go-Live. –Scenario Tracker continues. 16

17. Changes from SMT to Parallel Operations Weekly Meetings –External Meetings – Additional meetings will be held for Deployment Tests. Current weekly schedule will remain in place for November/December, possibly phasing out in January. –Phase out the weekly calls’ overview of the previous OD. Focus instead on anomalies, defects, IDTs, & Parallel Operations scenarios only. Single thorough weekly meeting. –One registration for all meetings, continue using SMT bridge/ WebEx. Participation Report –Readiness metrics will be the same list of SMT reports 17

18. Changes from SMT to Parallel Operations Daily Calendar –Current 3 month calendar will be supplemented with a 3 week look ahead to provide a thorough, single member-facing calendar. –Plan for 1st 3 week release October 22 (3 weeks prior to November 12). RMS –Quick picks will be revised. –New CPOCs will be defined and trained by 11/1/13. External email distribution lists –Phased out in December. 18

19. Changes from SMT to Parallel Operations Processes for Analysis of Statistics –Analysis for Deployment Tests. –Reviewing current metrics lists. Integrated Deployment Tests (IDT) –15 separate tests planned, each will have its own checklist/plan. –Communication line opens 1 hour before test.  Requires two conference bridge lines. During IDT, we will have the ‘walled’ MP-side and the ‘non-walled’ Reliability side in separate rooms. 19

20. 20 OctoberNovemberDecemberJanuaryFebruaryMarch Structured Market Trials Parallel OperationsGo-Live Production Support Process Parallel Operations Support Process SMT Support Process Interim Support Process MP’s contact SPP through RMS or Hotline. Customer Relations routes RMS tickets to Workstreams. Defects are tracked in SILK. MP’s contact Real-Time Operations or for Non Real-Time issues contact Customer Relations or log issues directly into RMS by selecting the appropriate CPOC. If Customer Relations is contacted they will route RMS tickets to appropriate CPOCs (Departments, Desks, IT, etc). System defects will continue to be tracked in SILKCentral. Remedy will continue to track Change Requests and emergency fixes. Same as Parallel Operations Support Processes. Market Trials Hotline will continue to be operational. Hotline will address issues or reroute as appropriate while transitioning to Parallel Operations Support. Changes from SMT to Parallel Operations IT Support Processes

21. Transition from SMT -> Parallel Operations How 24x7 operations will work: –18 operators available to run 24x7 – performing all key IM processes – Balancing Coordinator, Reliability Unit Commitment, & Real-time Balancing Market; Day-Ahead will be staffed at Go-Live levels. –Weekday 8 AM to 5 PM window, operators and coordinators available to assist/interact with MPs to simulate production. –Less than a full host of operators in place to cover all functions in the “off peak” hours/weekends (specifically scheduling, Tariff and Gen Dispatch).  Issue resolution for these functions may require a slower response time during these hours. –The main focus during that time will be to maintain the systems and continue to test/work through our processes and procedures. –During the IDTs, every function supported by multiple operators, engineers and other operations staff. 21

22. Parallel Operations Timeline 22 Structured/ Unstructured Test June 3, 2013 – Nov 3, 2013 Systems Down for Parallel Operations Preparation Activities Nov 4, 2013 – Nov 11, 2013 Parallel Operations Nov 12, 2013 – Jan 30, 2014 11/03/13 – Structured/Unstructured testing complete. 11/4/13 - 11/11/13 – Systems are scheduled to be down for data cleanup and updates. Will ensure data is available to run Settlements on DST OD. ETSE data purge prior to Parallel Operations after DST OD. 11/12/2013 – Parallel Operations is scheduled to start on

23. Key Dates 11/03/13 - The end of SMT will include this 25 hour Daylight Savings Time day. 11/04/13 - 11/11/13: Test data purge for Settlements. 11/12/13 - Parallel Operations begins – Moving to 7 Operating days per week and the Hotline will be open 24x7. 11/19/13 - First Integrated Deployment Test. 12/02/13 - Start of production processes for all systems. 23

24. ROLE OF SPP AND MPS DURING PARALLEL OPERATIONS 24

25. SPP Activities During Parallel Operations, SPP will: Execute Multi-day Reliability Assessment, DA Market, DA-RUC, and ID-RUC. Execute and monitor Real-Time system components, including RTBM/AGC, State Estimator and all Real-Time security applications. Execute all EMS 2.5 Production studies, RTNET, RTRFCALC, RTCA, Losses, etc. Execute RTBM every 5 minutes using Market Participant data from ICCP and Portal submissions. Execute all rolling Forecasting applications, Wind, Parallel Loop Flow, Mid-Term, & Short-Term Load Forecasts. Verify Market Participant submission activities. 25

26. SPP Activities cont’d Work with Market Participants to resolve issues. Generate Setpoints, LMPs, MCPs and Shadow Prices. Execute AGC every 4 seconds. Execute Deployment Tests to deploy generation from the new Integrated Marketplace systems. Communicate Real-Time reports and outputs. Update Counterparty credit limits with self-selected credit limits submitted by Market Participants. Generate Awards, Day-Ahead LMPs/MCPs, and other reports. Produce Meter Agent Reports. Communicate DA Market and RUC reports and outputs to the market. Produce Settlement Statements, Invoices. 26

27. Market Participant Activities During Parallel Operations, Market Participants will: Submit, update, and cancel DA Market submission items: –Three-Part Supply Offers (including Start up and No Load Costs) –OR Offer –OR Self-Arrangement –Energy-Only –Demand Bids –Virtual Offers and Bids Verify ability to receive Resource Setpoints via ICCP & XML. 27

28. Market Participant Activities cont’d Report non-conforming Loads. Create and Submit Meter data for each day. Report any issues through the RMS Download and review pre-DA Market and post-DA Market Report postings. Download and view Meter Agent reports from Portal. Download and review RUC postings, as applicable. Download and review Real-Time postings. Submit self-selected credit limit to SPP, if desired, as often as weekly. Create and Submit Bilateral Settlement Schedules. Download and review Settlement Statements and invoices. 28

29. Market Participant Activities cont’d During Parallel Operations RTBM submissions need to be in closer tolerance then during SMT. –Update a unit’s min/max capacity if it changes by >10% or 5 MW, whichever is greater (for SMT it was >20% or 10 MW). –Update a unit’s offer curve if it changes by >10% or $2 per 5 MWs, whichever is greater (for SMT it was >20%). 29

30. INTEGRATED DEPLOYMENT TESTS PURPOSE, PROCESS, OUTCOMES 30

31. Deployment Test Purpose These tests will be the first time the entire footprint will follow SPP Integrated Marketplace Setpoint Instructions. EIS BA’s AGC system should still be able to calculate ACE, CPS1, and CPS2 during the Deployment Tests, but not adjust any Setpoints to control for the EIS BA’s ACE. All EIS BAs have received waivers from SPP RE and MRO. –CPS1/CPS2 violations waived with the requirement of the BA’s to maintain logs of start/stop times. A mock Deployment Test will be planned for the week prior to the 1 st scheduled IDT – Tentatively set for 11/14/13. 31

32. Deployment Test Purpose 32 Verify that SPP can transmit proper AGC signals to Resources and that the EIS BAs within the SPP footprint can receive the new information. Verify SPP can calculate a single ACE and respond to it appropriately. Verify that Resources respond to AGC signals received from SPP. Verify that Resources can respond to a Congestion Management Event (CME/TLR). Verify that AGC is correctly biased in response to a Reserve Sharing System event (RSS/CRD). Verify that SPP and Resources can respond to a Contingency Reserve Deployment (CRD).

33. Deployment Test Processes 33 During the Integrated Deployment Test: EIS and Integrated Marketplace systems will continue to operate in parallel. Resources will be switched from EIS to Integrated Marketplace and back. RTBM will provide Base Points and manage congestion. AGC will maintain ACE, provide Regulation dispatch instructions and dispatch Contingency Reserves (including Supplemental) during RSS events. The Market will settle based on EIS dispatch. –Uninstructed deviation penalties will be waived for a period before, during, and after the Deployment Tests.

34. Deployment Test Processes 34 During the Integrated Deployment Test: Schedules will be mirrored from EIS production and convert the LCA/GCA for internal Balancing Authorities to an SPP CBA for calculating NSI for use in RTBM and AGC. No tags should be input by Market Participants for the period during the Integrated Deployment Test. Integrated Deployment Tests will be scheduled to ramp in/out at the bottom of the hour to minimize the impacts of transactions ramping at the top of the hour.

35. Deployment Test Processes Timing of tests will be designed so SPP can test for operational control in various conditions throughout the day: –Demonstrate AGC operation during extended heavy load pick up during morning period. –Demonstrate AGC operation during an evening load pick up period. –Demonstrate crossing midnight period and operational continuation between days. –A daily calendar has been developed with specific dates and times for the tests. 35

36. 36 01:15 Begin Cutover Window EIS-IM 01:30 03:30 3:45 Cutover Complete Timing of Integrated Deployment Test (2 Hr) 01:30 Cutover Complete 03:30 Begin Cutover Window IM - EIS Integrated Marketplace Dispatch 00:30 Initiate MP Conference Call 04:30 Close MP Conference Call

37. Timing of Integrated Deployment Test (2 Hr) 00:30 – One hour prior to the start of the IDT, SPP will begin the open conference call. 01:15 – 15 minutes prior to the start of the IDT, SPP will notify the BAs that they should prepare to be cutover from EIS to IM by 01:30 – if the BA cutover process only takes 2 minutes then they should begin that process at 01:28. 01:30-03:30 – 2 Hour IDT – Resources respond to IM Setpoints and SPP manages the SPP BA ACE. 3:30 – SPP will notify the BAs that they should begin their cutover from IM to EIS and all BAs should be following EIS setpoints by no later than 03:45. 4:30 - One hour following the end of the IDT, SPP will end the open conference call 37

38. Integrated Deployment Test 38 Real-time T act T ini T tar 05 10 15 target Every 5 minutes, both EIS and Marketplace snap where physical Resources are in time. The updated dispatch instruction is sent via unique ICCP Object IDs. Marketplace Setpoint EIS Setpoint

39. IDT Calendar 39 November 2013 SundayMondayTuesdayWednesdayThursdayFridaySaturday 1 2 Tentative release of Settlements Update Model Upload Window for November 1 3 4 5 6 7 8 9 Par. Ops Go/No GoSPP Test forMarket-Wide DecisionMock IDT on 11/14Conference Call ETSE Dbase Purge SERC Site VisitTrainer Forum REOPs Classes 10 11 12 13 14 15 16 Tentative week Parallel Ops Begins Run SMT Scenario #28aAll days color-coded for MOS v1.8SPP to Confirm 1st IDTRun SMT Scenario #7Mock IDT with MPsCMS Outage NFTlike this are available to be in ProductionAGC/CPSMust OfferVolt. Control/CROWMarket-Widefor unstructured Net Conference Conference Calltesting by MPS 17 18 19 20 21 22 2 Hour IDT Market-Wide 9:30 AM - 11:30 AM Conference Call Regional Restoration Drill 24 25 26 27 28 29 SMT Hotline ClosedThanksgiving Holiday Transition Parallel Operations from Maumelle to Chenal ODC Model Upload Window for December 1 Network and Commercial Model Upload Window SPP Training SPP Holiday MP Unstructured Test Dates

40. IDT Calendar 40 December 2013 SundayMondayTuesdayWednesdayThursdayFridaySaturday 1 2 3 4 5 6 7 2 Hour IDTRun SMT Scenario #242 Hour IDTMarket-Wide 6:30 AM - 8:30 AMRe-Pricing7:30 AM - 9:30 AMConference Call 8 9 10 11 12 13 14 Run SMT Scenario #13 Market-Wide 2 Hour IDTDDR w/Settlements4 Hour IDTConference Call 1:30 PM - 3:30 PMRun SMT Scenario #316:30 AM - 10:30 AM BDR w/Settlements 154 Hour IDT16 17 18 19 20 21 12:30 PM - 4:30 PM Tentative week 4 Hour IDTRun SMT Scenario #292 Hour IDTMarket-Wide for MOS v1.9 9:30 PM - 1:30 AMRSG6:30 AM - 8:30 AMConference Call to be in Production (Crossing Midnight) 22 23 24 25 26 27 28 Christmas Holiday Market-Wide Conference Call Model Upload Window for January 1 29 30 31 Model Upload Window for January 1 Network and Commercial Model Upload Window SPP Training SPP Holiday MP Unstructured Test Dates

41. IDT Calendar 41 January 2014 SundayMondayTuesdayWednesdayThursdayFridaySaturday 1 2 3 4 New Year's Day Market-Wide Holiday Conference Call 5 6 7 8 9 108 Hour IDT11 8 Hour IDT 2 Hour IDT6:30 AM - 2:30 PM 3:30 PM - 11:30 PM 9:30 AM - 11:30 AMMarket-Wide Conference Call 12 13 14 15 16 17 18 Tentative week Market-Wide for MOS v1.10 Conference Call to be in Production 19 20 21 22 23 24 25 2 Hour IDT Market-Wide 5:30 PM - 7:30 PM Conference Call Upload Window 26 27 28 29 30 31 4 Hour IDT 2 Hour IDTParallel Ops Ends 5:30 PM - 9:30 PM 9:30 AM - 11:30 AM Model Upload Window for February 1 Network and Commercial Model Upload Window SPP Training SPP Holiday MP Unstructured Test Dates

42. Integrated Deployment Test Go Criteria If at any point in the IDT communication plan, a Resource owning MP deems it is not capable of participating and that MP’s Resources are scheduled to be online, SPP shall consider cancelling the IDT. –This will be case-by-case. –EIS-BA MPs must 100% be ready for each IDT. 42

43. Deployment Tests: Unit Commitment 43 Unit Commitment will continue to be managed by the existing Balancing Authorities. Important all normal EIS functions occur in parallel with Integrated Marketplace during Deployment Tests. RTBM does not require RUC systems to operate to produce Base Points. RTBM will use Resource’s metered MW, telemetered Control Mode, CROW outage information and RTBM offer parameters for dispatch during Deployment Tests. When Resources are online, coming online or going offline in EIS, MPs must update RTBM offer, telemetered Control Mode, and Commitment status to “Self” in the Integrated Marketplace. Otherwise, RTBM may not be able to dispatch them accordingly. –All online Resources must have a valid commitment status in the Current Operating Plan (COP) in order to be eligible for dispatch by RTBM. –MPs can offer a commitment status of “Self” for all online resources.

44. Deployment Tests: Unit Commitment 44 Note that the Integrated Marketplace will NOT be the basis for Unit Commitment. The SPP Integrated Marketplace tariff doesn’t take effect until 03/01/14 and SPP cannot be responsible for Unit Commitment until then. Therefore, following the DA RUC, SPP will perform a COP True-Up to essentially substitute EIS BA’s unit commitment plans for the results of the DA RUC.

45. Deployment Tests: COP True-up 45 Allows the RTBM to dispatch resources based on real-time (EIS) operating conditions. If Resources are online in EIS and not in the COP, they are unable to be dispatched economically by RTBM. –Output will be echoed. –Not eligible to clear reserves. After the DA RUC run, SPP checks the EIS Resource Plan statuses for the OD to identify Resources with conflicting status with the COP. SPP uses the ID-RUC to commit or de-commit resources that have a conflicting EIS status with the COP. –If the resource has a EIS status of “Unavailable” and is committed in the COP, it will be de-committed by the ID-RUC. Process repeats at least 2 hours a day from 8am-4pm during supported ODs. –During unsupported days, the COP True-Up runs once a day.

46. Deployment Tests: Energy Offers 46 In order to minimize differences between RTBM Dispatch Instructions and EIS Market Dispatch Instructions: Resource Offers should be consistent with operational parameters submitted in the EIS Market Resource Plans and the Energy Offer curves submitted for use in the EIS Market. Regulation Ramp Rate curves and Contingency Reserve Ramp Rate curves should be set equal to the Ramp Rate Curve submitted in for use in the Up direction in the EIS Market.

47. Deployment Tests: Regulation Deployment 47 Regulation will be deployed by the Integrated Marketplace during Deployment Tests. –All Regulation Resources should have been self verified or tested by SPP during Structured Market Trials. All Resources scheduled to provide Regulation during the Deployment Test window in EIS should self schedule those Resources in Integrated Marketplace for Regulation for both up and down regulation. –Regulation dispatch status “Fixed”. –Fixed amount should be equal to capability of the Resource. –Offer price of $0/MW. –All other Resources eligible to provide regulation should offer in with a status of “Market” with an appropriate $/MW offer.

48. Deployment Test: Contingency Reserve Deployment 48 Contingency Reserve Deployment will be deployed by the Integrated Marketplace during Deployment Tests. All Resources scheduled to provide contingency reserves during the Deployment Test window in EIS Ancillary Services Resource plans should self schedule those Resources in Integrated Marketplace for contingency reserves. –Spinning dispatch status “Fixed” at specified MW amount with $0/MW offer. –On-Line dispatch status “Fixed” at specified MW amount with $0/MW offer. –Off-line dispatch status “Fixed” at specified MW amount with $0/MW offer. –All other Resources eligible to provide spinning and/or supplemental reserves should offer in with a status of “Market” with an appropriate $/MW offer. Any event that would trigger a reserve sharing event will be entered into the EIS RSS as well as the Integrated Marketplace RSS.

49. Regulation-Qualified Resources 49 For Integrated Deployment Tests (IDTs) for Reg-Qualified Resources, ensure: Dispatch Status = Fixed

50. Regulation-Qualified Resources (cont’d.) 50 Commitment Status = Self

51. Regulation-Qualified Resources (cont’d.) 51 Min. and Max. Reg Limits = Eco Min. and Eco Max. in EIS Offer Why? Mitigate lost opportunity costs

52. Regulation-Qualified Resources (cont ’d.) Reg. Up or Reg. Down Example *Can clear more than fixed amount if ramp is available. 52 Resource A—EIS Market Min. Econ. Limit150MW Max. Econ. Limit600MW Dispatch StatusAvailable EIS Carried Reg.10MW Resource A—Integrated Marketplace Min. Econ. Limit150MW Max. Econ. Limit600MW Min. Reg. Limit150MW Max. Reg. Limit600MW Fixed MW Amount10MW Offer (Reg. Up or Down)$0* Commit StatusSelf Dispatch Status (Reg.)Fixed ICCP Control Mode2

53. Contingency Reserves Spinning Reserve Example *Can clear more than fixed amount if ramp is available. 53 Resource A—EIS Market Min. Econ. Limit150MW Max. Econ. Limit600MW Dispatch StatusAvailable EIS Carried Reg.10MW Resource A—Integrated Marketplace Min. Econ. Limit150MW Max. Econ. Limit600MW Min. Reg. Limit150MW Max. Reg. Limit600MW Fixed MW Amount10MW Offer$0* Commit StatusSelf Dispatch StatusFixed ICCP Control Mode1

54. Contingency Reserves (cont’d.) On-line Supplemental Reserve Example *Can clear more than fixed amount if ramp is available. 54 Resource A—EIS Market Min. Econ. Limit150MW Max. Econ. Limit600MW Dispatch StatusAvailable EIS Carried Reg.10MW Resource A—Integrated Marketplace Min. Econ. Limit150MW Max. Econ. Limit600MW Min. Reg. Limit150MW Max. Reg. Limit600MW Fixed MW Amount10MW Offer$0* Commit StatusSelf Dispatch StatusFixed ICCP Control Mode1

55. Contingency Reserves (cont’d.) Off-line Supplemental Reserve Example *Can clear more than fixed amount if ramp is available. 55 Resource A—EIS Market Min. Econ. Limit150MW Max. Econ. Limit600MW Dispatch StatusAvailable EIS Carried Reg.10MW Resource A—Integrated Marketplace Min. Econ. Limit150MW Max. Econ. Limit600MW Min. Reg. Limit150MW Max. Reg. Limit600MW Fixed MW Amount10MW Offer$0* Commit StatusMarket Dispatch StatusFixed ICCP Control Mode0

56. Telemetered Control Mode 56 It is critical the Resource submit correct Telemetered Control Mode. –All Resources on outage for off-line should submit a Telemetered Control Mode equal of “0”. –All Resources capable of providing contingency reserves, online and are dispatchable should provide a telemetered Control Mode of “1” if they are not qualified to provide regulation. –All Resources capable of providing regulation, online and are dispatchable should provide a telemetered Control Mode of “2”. –All Resources that are coming on-line, going off-line or otherwise not able to follow dispatch instructions should provide a telemetered Control Mode of “3”.

57. What is a Resource Control Mode? Resource Control Mode is a signal sent to SPP via ICCP for each Resource Asset. Resource Control Mode is also referred to as ICCP System Control Mode (CMOD). 57

58. What are Valid Resource Control Status Values? 58 Off-line CMODE = 0 Off-line MW output is zero Non-Regulating CMODE = 1 On-line Not capable of providing REG Capable of providing CRD Following Setpoint Instruction Manual CMODE = 3 On-line Not following Setpoint Instruction Regulating CMODE = 2 On-line Capable of providing REG Capable of providing CRD Following Setpoint Instruction

59. Importance of Correct Resource Control Status 59 ICCP Resource Control Status (sent by MP) RTBM Control Status (sent to MP from SPP) Effective Control Status

60. Calculating Effective Control Status Special Cases:Effective Control Status 60 NDVERs initial Effective Control Status Pumped Storage Resources (Resource output (-)) Resources excluded from Main Island Resources with Good Quality MW>0 & ICCP Control Status of 0 3 3 3 3 3 3 3 3

61. Deployment Test Communications 61 Market Communication the Friday before the test is scheduled as a reminder to the upcoming test. SPP will host a one-hour conference call the day prior to each scheduled Integrated Deployment Test to review the sequence of events during the testing period and to address any Market Participant concerns. A conference call will established one hour prior to the Integrated Deployment Test and continue until all ramp out activities are complete.

62. Deployment Test Success Criteria No CPS 1, 2, or DCS violation (calculated at SPP BA level and is a ‘what if’ calculation since there are waivers). Minimum Eastern Interconnection hourly inadvertent; develop a number +/- based on that particular month (for example, EIS accumulate 100 MW a week in November for a consistent metric applied to the specified IDT timeframe). Reasonable congestion pricing, dispatch, & response. Reasonable ramping pricing. Zero IROL & SOL violations. 62

63. Deployment Test Success Criteria All Resources respond correctly to Integrated Marketplace Setpoint instructions. STLF accuracy carried over from SMT/Parallel Operations. Availability metrics for RTBM, CHMFC, NHMFC, & Pre-RTBM as applicable for the IDT duration. EMS metrics carried over from SMT/Parallel Operations (MW mismatch to be at production-levels; i.e. 25 MW for Market, 45 MW for external). All anomalies explained on a weekly basis (similar to SMT & Parallel Operations requirement). 63

64. Parallel Operations / Deployment Tests Key information for Market Participants to review on expectations for Parallel Operations and Deployment Tests has been posted on SPP.org. The Parallel Operations Market Participant Guide is posted on SPP.org at: http://www.spp.org/publications/SPP_IM_Market_Trials_Parallel_Ope rations_Test_Market_Participant_Guide_v2%201%20Clean.pdf http://www.spp.org/publications/SPP_IM_Market_Trials_Parallel_Ope rations_Test_Market_Participant_Guide_v2%201%20Clean.pdf The Integrated Deployment Test Market Participant Guide is posted on SPP.org at: http://www.spp.org/publications/SPP_IM_Market_Trials_Integrated_ Deployment_Test_Market_Participant_Guide_v1%200.pdf http://www.spp.org/publications/SPP_IM_Market_Trials_Integrated_ Deployment_Test_Market_Participant_Guide_v1%200.pdf 64

65. Deployment Test MP Cutover Plans SPP developed a list of key activities that should be addressed by the EIS BAs for the cutover to Deployment Tests on SPP.org at: http://www.spp.org/publications/SPP_IM_BA_Cutover_Activities.pdf –The initial drafts of the EIS BA cutover plans have been submitted to SPP and approved on September 16 th A three month Parallel Operations Calendar is posted on SPP.org at: http://www.spp.org/section.asp?group=2702&pageID=27 A Communications plan for Parallel Operations is posted on SPP.org at: http://www.spp.org/section.asp?group=2702&pageID=27 65

66. PARALLEL OPERATIONS READINESS METRICS & GO/NO-GO CRITERIA 66

67. PARALLEL OPERATIONS READINESS METRICS 67

68. Readiness Metrics Developed January 2012, refined throughout the project –Internal Approval: Functional and Readiness Business Owners –External Review: Regular reviews with the Readiness Liaisons and CWG Measure, Monitor, and Report Overall Program Readiness –Measure SPP & MP People, Process, and Technology Readiness Filed with FERC 68

69. Parallel Operations Readiness Metrics 69 MetricReporting StartTarget CompletionCurrent Status TRL-01: Market Trials Participation Currently Tracking End of Market TrialsGreen TRL-02: Structured/Unstructured Test Complete Currently Tracking11/1/2013Yellow TRL-03: Market Trials-Deployment Testing11/1/2013TBD Reporting on 11/1/2013 The following Readiness Metrics will be tracked during Parallel Operations –Metrics inventory and full description document available in the Readiness workstream folder on SPP.org Readiness workstream folder –Metrics status is posted in iDashboard, under the Readiness dropdowniDashboard Market Trials Metrics

70. Parallel Operations Readiness Metrics -Settlements 70 Metric Reporting Start Target CompletionCurrent Status STL-01: Access & Download Statements Currently TrackingMarket Trials – SMTRed STL-02: Access & Download Invoices Currently TrackingMarket Trials –SMTRed STL-03: Submit Meter Data Currently TrackingMarket Trials –SMTGreen STL-05: Submit Dispute Currently TrackingMarket Trials –SMTGreen STL-06: Settlement Statement Timeliness Currently TrackingMarket Trials - Parallel OpsGreen STL-07: SPP Validation of Settlement Charge Types Currently TrackingTBDGray

71. Parallel Operations Readiness Metrics - Operations 71 MetricTarget CompletionCurrent Status OPS-02: State Estimator AvailabilityMarket Trials – Parallel OpsYellow OPS-03: State Estimator AccuracyMarket Trials – Parallel OpsGreen OPS-04: Short-Term Load Forecast AccuracyMarket Trials – Parallel OpsGreen OPS-05a: Mid-Term Load Forecast Accuracy - 4AM ID RUCMarket Trials – Parallel OpsGreen OPS-05b: Mid-Term Load Forecast Accuracy - 12PM ID RUCMarket Trials – Parallel OpsGreen OPS-05c: Mid-Term Load Forecast Accuracy - 5PM DA RUCMarket Trials – Parallel OpsYellow OPS-06a: Wind Forecast Accuracy - Pre RTBMMarket Trials – Parallel OpsYellow OPS-06b: Wind Forecast Accuracy - RTBMMarket Trials – Parallel OpsYellow OPS-06c: Wind Forecast Accuracy - DA RUCMarket Trials – Parallel OpsYellow OPS-07: Market Flow Calculations Availability – Current HourMarket Trials – Parallel OpsGreen OPS-08: Market Flow Calculations Availability – Next HourMarket Trials – Parallel OpsGreen

72. Parallel Operations Readiness Metrics - Operations 72 MetricTarget CompletionCurrent Status OPS-09: DA Market Results PostedMarket Trials – Parallel OpsGreen OPS-10: Generate DA LMPs and Settlement Point PricesMarket Trials – Parallel OpsGreen OPS-11: RTBM Calculation AvailabilityMarket Trials – Parallel OpsGreen OPS-12: Operating Reserves RequirementsMarket Trials – Parallel OpsGreen OPS-13: Regulation Pre-Certification10/31/2013Green OPS-14: ACE PerformanceMarket Trials - Parallel Ops10/1/2013 OPS-15: CROW Outage SubmissionGo-liveTBD OPS-16: MP Response to Deployment TestingMarket Trials - Parallel OpsTBD OPS-17: ICCP Model Validation10/25/2013Yellow OPS-18: ICCP Control Status TrackingMarket Trials – Parallel OpsTBD

73. PARALLEL OPERATIONS GO/NO-GO CRITERIA 73

74. Parallel Operations Go/No-Go Criteria Developed by Readiness & Metrics workstream –Internal Approval: Applicable SMEs and program leadership –External Review: Readiness Liaisons and the CWG Provide quantitative information and analysis to be used as input into the Go/No-Go decision process –SPP Recommendation –CWG Recommendation –Go Live Team Decision A Go-Live Team formed with a purpose to review and analyze, with input from SPP and CWG to determine ‘Go/No-Go’ of major program phases (i.e. TCR, Parallel Operations or Market Go-Live) Details are in the Go/No-Go Folder on the Readiness CenterGo/No-Go Folder 74

75. Parallel Operations Decision Timeline 75

76. Parallel Operations Go/No-Go Criteria 76 IdentifierCriteria PO-01 All known issues/risks that could impact Parallel Operations are published and assessed PO-02Target mass participates in Structured/Unstructured Market Trials PO-03 100% of Structured/Unstructured testing scenarios are successfully executed and completed or removed from scope and successful completion is validated through Readiness Metric TRL-02. PO-04 SPP and member ICCP Models are up to date and the data exchange and values have been validated for all applicable entities and relationships PO-05All MP EMS related changes, including AGC (if applicable), have been completed PO-06 Successfully execute Integrated Marketplace Bid to Bill functionality consistently for 3 consecutive Operating Days according to protocol timelines PO-07 Execute Integrated Marketplace Bid to Bill functionality consistently for 15 supported Unstructured Operating Days according to protocol timelines. PO-08 SAT (Site Acceptance Testing) Stage Exit Criteria is met by all applicable workstreams and Business Owner approval is obtained (with the exception of Markets) PO-09 SIT (System Integration Testing) Stage Exit Criteria is met by all applicable workstreams and Business Owner approval is obtained

77. Parallel Operations Go/No-Go Criteria 77 IdentifierCriteria PO-10 FIT (Functional Integration Testing) Stage Exit Criteria is met by all applicable workstreams and Business Owner approval is obtained (with the exception of Settlements) PO-11 All ICCP and XML inbound and outbound Marketplace data points have been validated with all applicable Market Participants as part of Structured Market Trials PO-12 Impacts of Critical/High defects are deemed acceptable by SPP and Market Participants PO-13MCE Certification sign-off obtained from Markets Business Owners PO-14 All charge types for target mass have been successfully published and verified through Structured Market Trials and Business Owner approval is obtained as demonstrated through the Settlements tracker PO-15 Performance Testing Exit Criteria is met by all applicable workstreams and Business Owner approval is obtained PO-16 Non Functional Testing should be completed and reviewed by SPP Technical Architects validating the systems demonstrate sufficient stability to commence Parallel Operations PO-17 Systems components that are in scope for the start of Parallel Operations have been installed and integrated in Marketplace Production

78. Parallel Operations Go/No-Go Criteria 78 IdentifierCriteria PO-18 All systems supporting Parallel Operations have the latest Commercial/ Network Model PO-19Protocol Compliance has been validated PO-20 CPS1 and CPS2 waivers complete (approved by NERC) or an alternative plan is implemented (approved by CBASC) PO-21The SPP Parallel Operations Go-Live Plan is approved internally PO-22 The SPP Parallel Operations Roll-In/Roll-Out Integrated Deployment Plan is approved internally including IDT MP Guide and Communication Plan PO-23EIS BA procedures/cutover plans have been submitted and validated by SPP PO-24Physical setup of the SPP facilities supporting Parallel Operations is complete PO-25SPP Staff is ready to support Parallel Operations

79. APPENDIX 79

80. Acronyms 80 ACEArea Control Error AGCAutomatic Generation Control BABalancing Authority BCBalancing Coordinator BDRBlock Demand Resource BIBusiness Intelligence CBAConsolidated Balancing Authority CDTCentral Daylight Time CHMFCCurrent Hour Market Flow Calculator CMECongestion Management Event CMSCredit Management System COPCurrent Operating Plan CPOCCentral Point of Contact CPSControl Performance Standard CRDContingency Reserve Deployment CROWControl Room Operations Window DADay Ahead DAMKTDay-Ahead Market DCSDisturbance Control Standard DDRDispatchable Demand Resource DSTDaylight Savings Time EADSEnterprise Architecture Data Services EISEnergy Imbalance Service EMSEnergy Management System ETSEeTerra Settlements GCAGeneration Control Area GFAGrandfathered Agreement ICCPInter-Control Center Communications Protocol IDTIntegrated Deployment Test IROLInter-Regional Operating Limit LCALocal Control Area MCEMarket Clearing Engine MMUMarket Monitoring Unit MPMarket Participant MROMidwest Reliability Organization MTLFMid-Term Load Forecast NDVERNon-Dispatchable Variable Energy Resources NFTNon-Functional Testing NHMFCNext Hour Market Flow Calculator NSINet System Interchange ODCOperations Data Center OROperating Reserves POPSPost Operating Pre-Settlements RMSRequest Management System RSSReserve Sharing System RTBMReal-Time Balancing Market RTGENReal-Time Generation Application RTNETReal-Time Network Application RUCReliability Unit Commitment SCADASupervisory Control and Data Acquisition SERCSERC Reliability Coordinator SLAService Level Agreements SMTStructured Market Trials SOLSystem Operating Limit STLFShort-Term Load Forecast TLRTransmission Loading Relief

81. Feedback The information in this presentation is based on our hypothesis that we have provided you with the information and planning you need to continue with SMT, and move forward with Parallel Operations, and IDT. –What’s your reaction to what we’re doing in terms of SMT, Parallel Operations, IDT? –Is there something you think we should be doing in terms of SMT, Parallel Operations, IDT that we’re not? –Can you see any reason why our current plans and metrics for SMT, Parallel Operations, IDT won’t work? 81