Structured Unstructured Market Trials Weekly Update Friday Meeting

Structured / Unstructured Market Trials Weekly Update – Friday Meeting August 23, 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 2

Agenda • TCR / ECT Update (5 min) 9: 00 -9: 05 A • Analysis Aug 12 – Aug 18 (35 min) 9: 05 -9: 40 A • Settlements (10 min) 9: 40 -9: 50 A • Announcements & Outstanding Questions (5 min) 9: 50 -9: 55 A • Commitment Parameters (10 min) 9: 55 -10: 05 A • Look-Ahead Aug 26 – Sept 2 (10 min) 10: 05 -10: 15 A • Updates (10 min) 10: 15 -10: 25 A • Release Scorecard • Migration Report • Known Issues Log • Questions (5 min) 10: 25 -10: 30 A 3

TCR Summary • Allocation Process • Auction Process • Revenue • Next Steps John Snyder 4

TCR: Allocation Percentage • Allocated MW lower than Annual • Due to Baseloading TCRs & Model Changes MW Total Nominated MWs Allocated MWs 3200 2800 2400 2000 1600 1200 800 400 0 Sep_13_ON Sep_13_OFF John Snyder 5

TCR: Auction Participation Self-Converts Buy Bids Sell Offers 2500 2250 Number Attempted 2000 1750 1500 1250 1000 750 500 250 0 Annual Sep_13_ON Annual Sep_13_OFF Monthly Sep_13_ON Monthly Sep_13_OFF John Snyder 6

TCR: Revenue by AO: September On-peak $150 000 Net Revenue $171, 140 Net Auction Revenue $100 000 Charges $50 000 $0 ($50 000) Credits ($100 000) John Snyder 7

TCR Participation / Model Changes Drive Revenue $2 000 Annual Auction $1 750 000 Monthly Auction Net Auction Revenue $1 500 000 $1 250 000 $1 000 $750 000 $500 000 $250 000 $0 ($250 000) Sep_13_ON Sep_13_OFF John Snyder 8

TCR Participation Self Converts (MW) • 883 MW On-Peak • 853 MW Off-Peak Buy Bid & Sell Offers (#) • 222 On-Peak • 153 Off-Peak ARR MW with no set Price (%) • 43% in On-Peak • 61% in Off-Peak John Snyder 9

TCR Next Steps • ARR Level 3 Training: August 27, September 4 • Phase 2 Monthly Processes • Allocation Nominations: September 9 • Auction Bids/Offers: September 16 -17, 23 -24 August September 1 2 3 1 8 9 10 18 19 20 21 22 23 24 9 10 11 12 13 14 9 15 16 16 17 17 18 19 20 21 22 23 23 24 24 25 26 27 28 25 26 27 27 28 29 30 31 29 30 4 5 6 7 11 12 13 14 15 16 17 2 3 4 5 6 7 8 John Snyder 10

TCR: Go-Live Preparation • Submit Your Historical Peak Load • Who: Only those MPs with NITS Service • What: Historical Peak Loads (Load + Transmission Losses) for 2010, 2011 & 2012 for the historical coincident peak load for your system. • Why: Validation purposes to compare against what we pull from settled EIS transmission settlements. • When: by September 18, 2013 John Snyder 11

Extended Connectivity Testing • ECT Test Execution (occurs between 8/5 and 8/30): • MPs have been assigned a week during test execution time frame to perform their testing. • Weekly Execution Assignments • Tests are performed independently during the assigned week. No appointment is necessary. • Issues with test execution handled via RMS. • Metrics updated as of Wednesday 8/14 at 12: 00 pm CPT • i. Dashboard – Market Trials Connectivity External Dashboard Michael Hodges 12

• Extended Connectivity Testing Test Execution: Test Execution Week #1: August 5 th - August 9 th Week #2: August 12 th - August 16 th Market Participant BJ Energy, LLC (PASS) DTE Energy Trading Inc (PASS) Entegra Power Services (PASS) Franklin Power, LLC (PASS) JP MORGAN VENTURES ENERGY CORP (PASS) MONTEREY SW, LLC (PASS) APX, Inc (PASS) DC Energy Midwest, LLC (PASS) MONTEREY SWF, LLC ETC ENDURE ENERGY LLC Vitol, Inc. (PASS) Sustaining Power Solutions (PASS) APEX (PASS) BLUE CANYON 5 (PASS) BUFFALO DUNES WIND PROJECT (PASS) City of Fremont Merrill Lynch Commodities, Inc. TWIN EAGLE RESOURCE MANAGEMENT, LLC Active Power Investments, LLC (PASS) Michael Hodges 13

• Extended Connectivity Testing Test Execution: Test Execution Week #3: August 19 th - August 23 rd Week #4: August 26 th - August 30 th Market Participant CITIGROUP ENERGY INC CONOCO PHILLIPS COMPANY (PASS) DENVER ENERGY, LLC (PASS) Denver Energy 2, LLC (PASS) Durable Electric Power (PASS) EDP Renewable NA, LLC (PASS) INFINITY WIND HOLDINGS, LLC J ARON & COMPANY Midwest Energy Trading East LLC (MET 1) NORTHPOINT ENERGY SOLUTIONS, Inc. NSP Energy Marketing (NSPP) NSP Energy Trading (NSPT) EDF TRADING NORTH AMERICA, LLC POWEREX CORP PSCO Energy Trading Public Service Company of Colorado PSCO Energy Marketing SARACEN ENERGY WEST TENNESSEE VALLEY AUTHORITY TRADEMARK MERCHANT ENERGY, LLC (Former Kansas Energy, LLC) UNION ELECTRIC COMPANY DBA AMEREN MISSOURI UNION POWER PARTNERS L P UTILITIES PLUS XO ENERGY SW, LP XO ENERGY SW 2, LP Michael Hodges 14

Extended Connectivity Testing • The following MPs have not submitted an Connectivity Test Checklist (due 8/2): CITIGROUP ENERGY INC CITY OF FREMONT INFINITY WIND HOLDINGS, LLC J ARON & COMPANY MERRILL LYNCH COMMODITIES, INC. SARACEN ENERGY WEST TRADEMARK MERCHANT ENERGY, LLC (Former Kansas Energy, LLC) TWIN EAGLE RESOURCE MANAGEMENT, LLC UNION ELECTRIC COMPANY DBA AMEREN MISSOURI Michael Hodges 15

Extended Connectivity Testing • The following MPs have missed their scheduled Connectivity Test Execution (scheduled 8/5 – 8/6): CITY OF FREMONT ETC ENDURE ENERGY LLC MERRILL LYNCH COMMODITIES, INC. MONTEREY SWF, LLC TWIN EAGLE RESOURCE MANAGEMENT, LLC Michael Hodges 16

Analysis: August 12 – August 18 • Structured Market Trials Statistics posted the day after each OD 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 Aug 13, 14 and 15 Operating Days posted Tues to spp. org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder > Structured Market Trials Presentations, Statistics, MP Meetings Alan Adams 17

Market Settlements Outstanding Questions • Question: Is there a way to automatically download (via API) the PDF Invoices from the Portal? • Answer: • The API only returns the XML Invoice. • Most systems that are using the API's are getting the results to load into a database and XML is format being used. • A PDF Invoice will be available and can be downloaded manually through the Portal UI (coming soon). Tony Alexander 18

Market Settlements Outstanding Questions • Question: Can SPP provide a list of Charge Types by MP type (Financial Only, Load Only, Resource Only, etc. )? • Answer: • Settlements Reference Tools includes 3 charge type documents. • Charge Type be Transaction Chart shows all charge types triggered by specific market activity (Loads, Resources, Virtuals, etc. ) • Developing a report specific to this question. Tony Alexander 19

Market Settlements Progress • Initial Settlements for ODs 8 -5 thru 8 -15 are posted. • Initial Settlements for ODs 8 -16 thru 8 -17 are complete and being validated. • Final Settlements for ODs 8 -5 thru 8 -8 are posted. • Final Settlements for ODs 8 -9 thru 8 -10 are complete and being validated. • Weekly Invoice for 8 -22 is posted. Tony Alexander 20

Settlement Issues • KIL#TBD: TCR to Settlements Transactions - Sell Indicator Logic Change • The interface between TCR/ARRs and Settlements sets the sign convention. • TCR Self-Convert quantities were being incorrectly reversed (error). • TCR Sell quantities were being correctly reversed (correct). • The fix has been implemented. • Initial Settlements for ODs Aug 14 forward will reflect correct data. • Final Settlements for ODs Aug 11 forward will reflect correct data. Tony Alexander 21

Settlements Scorecard Delay • Settlements Scorecard is still being developed and tested. • Targeting delivery next week. Tony Alexander 22

Settlements BSS and Meter Data Submission • CWG follow up. • Issue: Market Participants would prefer to use their own BSS and Meter Data submissions in Settlements. • The intent of the following slides is to raise awareness of the SMT settlement impacts. Tony Alexander 23

Settlements BSS Data Submission • The CWG has already decided that BSS metrics are not required for Market Trials. • MPs are not required to submit BSS data or participate in BSS testing. • Should BSS testing be removed from SMT scenarios? • SPP will continue to settle and report BSS activity based on MP participation. Tony Alexander 24

Settlements Meter Data Submission • Meter data is an input to over 50% of the charge types and over 80% of the scenarios. • Triggering charge types and scenarios requires the meter data to be; • less than set point, • more than set point, • or zero, • and must align to the same intervals as dispatch instructions. • Different variations are required to trigger desired charge types and scenarios. Tony Alexander 25

Settlements Meter Data Submission • Additional considerations: • If MAs are not submitting meter data according to set point there will be high amounts of deviation charges and credits. • If MAs are not balancing Settlement Area generation, interchange, and load in their meter data submittals there will be high amounts of calibration. • Settlements needs to continue to run on OD+2 until the settlement systems are able to operate according to OD+4 timeline. • Meter Data submitted after OD+1 will be included on Final Settlements. Tony Alexander 26

Settlements Meter Data Submission • Below are some options to consider if MAs will be submitting their own meter data: • 1) Remove charge types and settlement scenarios from Market Trials metrics. • 2) Treat charge types and settlement scenarios as non-metrics, MPs will not hit them all (metrics are for reporting purposes only). • 3) Settlements can trigger as many charge types and scenarios as possible by Aug 31 and then begin using MA Meter Data only. • Open to other suggested options. Tony Alexander 27

Announcements & Outstanding Questions • Update on Markets v 1. 5 • Installation postponed • Scenario Schedule adjusted accordingly • Scenario 33 A & 33 B Ramp Reservation: SPP Analysis ongoing • SPP Pass/Fail status to be determined • No Scenario 33 Email to be sent today • Known Issue Log Meetings scheduled to review Defects prior to their migration to Production • Monday, August 26 9: 00 -10: 00 A CPT register here • Monday, September 9 9: 00 -10: 00 A CPT register here • Monday, October 28 9: 00 -10: 00 A CPT register here Carrie Simpson / Ginny Watson 28

Day Ahead Coverage of September SMT • Beginning in September, SMT will provide 5 supported days per week (Mon – Fri) • The Day Ahead Market’s Supported solutions will be executed Monday through Friday for Operating Days that fall on Tuesday through Saturday. • Aligns the Day Ahead executions with other SMT support functions – such as Hot Line, IT Support, etc. • Aligns the Day Ahead executions with MP’s work week for bid/offer submittal and DA Results review. Jeff Fruit 29

Resource Offer Commitment Parameters Presentation to be posted to spp. org: spp. org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder > Structured Market Trials Reference Documents Ginny Watson 30

Look-Ahead: August 26 – Sept 1 • Aug 26 – Sept 1 Daily Calendar 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 > Calendars • Scheduled Scenarios • Unstructured Testing Days – Tues 8/27, Wed 8/28 & Thurs 8/29 • 20. 0 CRD Retest Appointment via Conf. Call scheduled with individual MPs • MPs wishing to participate in the retest: submit an RMS Ticket by 5 P Mon 8/26 • Official Operating Days – Tues Aug 27, Weds Aug 28, Thurs Aug 29 • Friday Maintenance • Saturday reserved for MP Testing Ginny Watson 31

22. 0 Manual and ID RUC Commitment *Scenario 22 to be executed the week of Sept 9 Scenario Description • RUC process will change the commitment period of a resource already committed in the COP either by starting the resource earlier or running the resource for additional hours. For this Scenario to work, the Resources have to be online and generating. If they are not online and generating, they are not eligible for the MWP. The following conditions will be simulated: • RTBM extension of DA Market Commitment by SPP RUC Operator • RTBM extension of DA Market Commitment by MP • • This Scenario does not apply to NDVERS and VERS with SPP provided forecast Submit an RMS Ticket labeled “Scenario 22” indicating what resources will be used in this Scenario by Sept 6 • Should include the hours that the selected Resource plans to be running in the EIS Market. If possible, select a Resource that will be online all 24 hours. Alan Adams 32

Release Scorecard posted to spp. org: spp. org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder Ginny Watson 33

Migration and Maintenance Report posted to spp. org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder MT Tagged Transactions documentation posted to spp. org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder > Structured Market Trials Reference Documents Wendy Reynolds 34

Known Issues Log Market Trials Known Issues Log posted to spp. org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder Issue # RMS # Issue Type Synopsis Severity 1: Critical 631 Markets Other When the DAMKT case is approved at 4 pm, the cleared transactions for the case that was just approved (for the next OD) is not sent. Instead, the cleared transactions for the current operating day are sent to OATI, causing current OD transactions to get updated with DA cleared results. For example, on 08/15/2013 at 4 pm, the DA case for 08/16/2013 was approved, but when the interface executed, it sent DA schedules for OD 08/15/2013 (current operating day), resulting in updates to the current OD schedules instead of the next day schedules. 655 Markets Systems Committed Resource with Fixed Regulation Dispatch Status should always be on Regulation Markets Systems Currently the Fixed OR Dispatch status for regulation logic is that if the resources Offer Price is above the MCP the resource will not be selected for regulation and will not clear its fixed amount. The way the logic should work is to clear the resource for the defined amount Severity 2: High of fixed MWs regardless of the offer price. The selection of Regulation resources by SCUC should not consider offerprice if the resource has a fixed dispatch status with a specified MW amount. The current logic is in conflict with the protocols section 4. 2. 2. 612 3739 Severity 2: High Carrie Simpson 35

Scheduled Scenarios • Aug 26 – Sept 1 • Unstructured Test Days • 20. 0 - CRD Retest Appointments • Sept 2 – Sept 8 • 5. 1 – Day Ahead Capacity Shortage • 5. 2 – RUC Capacity Shortage Ginny Watson 36

Market Trials Useful Resources SMT Hotline: 501 -482 -2222 for critical & high issues Mon-Fri 8 A – 5 P Please submit all other inquiries via the 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 Guide • • • SMT Presentations, Statistics, MP Meetings Folder SMT Reference Documents Folder SMT Scenarios Folder Change Tracker spp. org > Integrated Marketplace > Marketplace Documents 37