Structured Unstructured Market Trials Weekly Update Friday Meeting

Structured / Unstructured Market Trials Weekly Update – Friday Meeting September 6, 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 • When asking a question on the phone, please state your name and the entity you represent 2

Agenda • TCR Update (5 min) 9: 00 -9: 05 A • Analysis Aug 26 – Sept 1 (30 min) 9: 05 -9: 35 A • Settlements (15 min) 9: 35 -9: 50 A • Announcements & Outstanding Questions (10 min) 9: 50 -10: 00 A • Commitment Parameters (20 min) 10: 00 – 10: 20 A • Look-Ahead Sept 9 – 15 (15 min) 10: 20 -10: 35 A • Updates (10 min) 10: 35 -10: 45 A • Release Scorecard • Migration Report • Known Issues Log • Questions (5 min) 10: 45 -10: 50 A 3

TCR Market Trials • 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 Brett Crane 4

TCR Market Trials • Participation in the October Monthly Process • Please plan on participating in the Incremental Allocation starting Monday (9/9). • Market Participants with Network TSRs § Action Required: Communicate your companies intentions for this final Monthly Process as well as in the Production TCR Market. § What: For those Market Participants whom this applies to, the TCR Team will be assigning TCR Liaisons a RMS ticket with questions surrounding participation intentions. Please answer the 5 questions via RMS. § When: Responses via RMS are required by 4 pm on September 9 th § Participation is important. If you do not plan to participate the same way you will typically participate in Monthly Allocations/Auctions, please indicate why Brett Crane 5

TCR Market Trials • Phase 2 Monthly Processes • Good Participation is Requested/Expected • 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 Brett Crane 6

Analysis: August 26 – Sept 1 • 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 27, 28 and 29 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 7

Market Settlements Progress • Initial Settlements for ODs Aug 5 thru 29 are posted. • Final Settlements for ODs Aug 5 thru 22 are posted. • Weekly Invoice for 9 -3 is posted. • The Aug 20 Final Settlement failed and is not recoverable. • KIL#342 If a settlement run fails for an OD, the process will lock up the day and we will need to skip the failed OD and the failed OD+1. This means that statements will not be available for the days that were skipped. Invoices for the week will also be missing the skipped days. • This settlement will also be missing from weekly invoices. • Subsequent runs and postings will not be impacted. Tony 8

Market Settlement System (MSS) Known Issues • KIL# 691 Settlements is unable to receive Day Ahead Commitment Data from upstream systems. • Fix is expected by September 11 • KIL# 692 Settlements is unable to receive RUC Commitment Data from upstream systems. • Fix is expected by September 6 • KIL# 693 Real Time As Dispatched Offer Commitment Data is overlapping between runs. This is failing Settlements Validations and causing settlements to fill the data with test data. • Fix is expected by September 13 Tony 9

Market Settlement System (MSS) Known Issues • KIL# 694 DA Commitment issue with shortened commitment data. • Fix is expected by September 11 • KIL# 695 and 696 Month end Arr. Payback. Mnthly. Amt and Tcr. Payback. Mnthly. Amt are incorrect. • A fix is pending Tony 10

Settlements Data Quality Status Key UPSTREAM GHD Mix X ALL Priority 1 1 1 1 Table Name PS_RTSE 5 MINQTY PS_RTSELOSS 5 MINQTY PS_BASELINEHRLYQTY PS_DISPATCHINSTRUCTION PS_DACLRDHRLYQTY PS_DALMP PS_DAMCP PS_RTBMOFFERASDISPPER PS_RTBMOFFERASDISPSEG PS_RTCLRD 5 MINQTY PS_RTLMP PS_RTMCP PS_STLMNTLOCRESERVEZONEREL PS_RTNETINTRCHNGSPP 5 MINQTY All Upstream Data was consumed for this day and no groundhog test data was mixed in. All Groundhog Data was consumed for this day and no upstream data was mixed in. A mix of both Groundhog and Upstream Data was used. No data was used - This can only be done on an optional table. Interface Name 5 min SE Meter Data 5 min SE Loss Quantities Baseline Hourly Quantity RTBM Results (Dispatch Instructions) Day-Ahead Market Cleared Transactions Day-Ahead Prices Day-Ahead Market Clearing Prices RTBM as Dispatched Offers Commit RTBM as Dispatched Offers Period RTBM as Dispatched Offers Segments Real Time Cleared Operating Reserves RTBM Prices Real Time Balancing Market Clearing Prices Settlement Loc to Reserves Zone Mapping NAI (from POPS) Priority Key 1 2 3 Required Semi-Required Optional 30 -Aug 31 -Aug 1 -Sep Expected MIX UPSTREAM GHD GHD 20 -Sep UPSTREAM UPSTREAM UPSTREAM GHD GHD GHD 13 -Sep UPSTREAM UPSTREAM UPSTREAM UPSTREAM Tony 11

Settlements Data Quality Status Key UPSTREAM GHD Mix X ALL Priority 2 2 2 2 2 3 3 3 Table Name PS_DACLRDVHRLYQTY PS_DAVTXNDLYCNT PS_DAMCOMMITPER PS_DAMCOMMITSEG PS_RUCCOMMITPER PS_RUCCOMMITSEG PS_RTIMPEXP 5 MINQTY PS_DAIMPEXP 5 MINQTY PS_CONTRESDEPLOY PS_EMERGENCYCONDITION PS_RESOBLCONTRHRLYQTY PS_RUCCANCEL PS_XMPTDEV 5 MINFLG PS_DECOMMIT All Upstream Data was consumed for this day and no groundhog test data was mixed in. All Groundhog Data was consumed for this day and no upstream data was mixed in. A mix of both Groundhog and Upstream Data was used. No data was used - This can only be done on an optional table. Interface Name Day-Ahead Market Cleared Transactions Day Ahead Market Commitment Periods Day Ahead Market Commitment Segments Day Ahead and ID RUC Commitment Periods Day Ahead and ID RUC Commitment Segments Market Transactions --> Interchange Schedules Contengency Reserve Deployment Emergency Condition Supplemental Reserve Obligation Credits Startup Cancellation URD Exemptions De-Commits Priority Key 1 2 3 Required Semi-Required Optional 30 -Aug 31 -Aug 1 -Sep Expected UPSTREAM UPSTREAM GHD GHD GHD 11 -Sep GHD GHD GHD 6 -Sep UPSTREAM UPSTREAM UPSTREAM UPSTREAM X all 13 -Sep UPSTREAM X all 13 -Sep Tony 12

Settlements Charge Type Scorecard – Initials Key 4 Complete 4 In Progress 4 Not Started 4 Groundhog Data Week of 8/19/2013 4 Roll-Up Charge Type Da. Energy. Hrly. Amt Rt. Energy 5 Min. Amt Da. Reg. Up. Hrly. Amt Da. Reg. Dn. Hrly. Amt Da. Spin. Hrly. Amt Da. Supp. Hrly. Amt Rt. Reg. Up 5 min. Amt Rt. Reg. Dn 5 min. Amt Rt. Spin 5 min. Amt Rt. Supp 5 min. Amt Da. Reg. Up. Dist. Hrly. Amt Da. Reg. Dn. Dist. Hrly. Amt Da. Spin. Dist. Hrly. Amt Da. Supp. Dist. Hrly. Amt Rt. Reg. Up. Dist. Hrly. Amt Rt. Reg. Dn. Dist. Hrly. Amt Rt. Spin. Dist. Hrly. Amt Rt. Supp. Dist. Hrly. Amt Rt. Reg. Adj 5 min. Amt Da. Ocl. Dist. Hrly. Amt Rt. Ocl. Dist. Hrly. Amt % MPs Hit 37% 40% 17% 18% 12% 18% 18% 17% 37% 39% 38% 30% 30% 13% 22% 41% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Scenario ‘Base’ Energy and Operating Reserve Settlement Make-Whole Payment Regulation Non-Performance Contingency Reserve Deployment Failure Day Ahead Non-Asset Energy Real Time Non-Asset Energy ‘Base’ Energy Import/Export % MPs Hit 6% 0% 0% 6% 17% 31% 21% Energy Import/Export – Make Whole Payment Distribution Real Time Regulation Adjustment Out Of Merit Energy and Reserve ‘Base’ Virtual Energy Transaction ‘Base’ TCR Auction Settlements TCR Auction Settlement - End of Month ‘Base’ TCR Settlement - End of Month TCR Settlement - DA Market Fails to Solve Tony 0% 12% 0% 0% 24% 0% 25% 0% 0% 13

Settlements Charge Type Scorecard - Initials Key 4 Complete 4 In Progress 4 Not Started 4 Groundhog Data Week of 8/19/2013 4 Roll-Up Charge Type Da. Mwp. Cp. Amt Da. Mwp. Dist. Hrly. Amt Rt. Mwp. Cp. Amt Rt. Reg. Non. Perf 5 min. Amt Rt. Reg. Non. Perf. Dist. Hrly. Amt Rt. CRDepl. Fail. Amt Da. NEnergy. Hrly. Amt Rt. NEnergy 5 min. Amt Rt. CRDepl. Fail. Dist. Hrly. Amt Rt. Oom 5 min. Amt Da. VEnergy. Hrly. Amt Rt. VEnergy 5 min. Amt Da. VTxn. Fee. Ao. Amt Arr. Auc. Txn. Dly. Amt Arr. Uplift. Dly. Amt Arr. Payback. Mnthly. Amt Rt. Rnu. Hrly. Amt Tcr. Fund. Hrly. Amt Tcr. Uplift. Dly. Amt Tcr. Payback. Mnthly. Amt % MPs Hit 0% 0% 0% 7% 17% 31% 28% 1% 10% 11% 24% 0% 0% 26% 0% Scenario % MPs Hit Tony 14

Announcements & Outstanding Questions • Scenario 15. 0 Commitment Mismatch – Retest next week? • In the MOS 1. 5 release, mock schedule data has been added to allow participants to test the Day-Ahead Cleared Transactions methods. This test data is available in the Markets UI as well as in the API (Get. Energy. Cleared. Transaction. Set. By. Day). • Real data is scheduled to replace the test data for MOS 1. 7, which should be in the Market Trials environment in mid-October What are SPP's expectations of participants during the proposed 7 x 24 staffing period 10/21 - 10/28? • • The week of October 21 st through 28 th was meant to be a dry run of 24 x 7 Parallel Operations when the original SMT guide was created. This week will be a full supported week, however the expectations for the MPs will remain the same as the Structured Market Trials timeframe. Ginny Watson 15

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 16

Look-Ahead: Sept 9 – Sept 15 • Sept 9 – Sept 15 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 • 19. 0 Emergency Logic • 8. 0 DA Scarcity Pricing • 22. 0 Manual and ID RUC Commitment • Official Operating Days Monday - Friday • DA • Friday Maintenance • Saturday reserved for MP Testing Ginny Watson 17

19. 0 RTBM Emergency Logic Scenario Description • There is a capacity surplus on a system-wide basis calculated as the sum of Self. Committed capacity at minimum output, fixed Import Interchange Transactions and the Regulation-Down requirement that is in excess of the sum of Short Term Load Forecast and fixed Export Interchange Transaction. • There is a capacity shortage on a system-wide basis calculated as the sum of Self. Committed capacity at maximum output, fixed Import Interchange Transactions and the Regulation-Up and Contingency Reserves requirements that are in shortage of the sum of Short Term Load Forecast and fixed Export Interchange Transaction. • The RTBM Operator manually specifies the emergency condition as an input into RTBM. • Submit an RMS Ticket labeled “Scenario 19” by Sept 6 indicating what resources will have different limits for use by RTBM in this Scenario Alan Adams 18

19. 0 RTBM Emergency Logic Expected Result • Emergency limits are released for selected resources and units are dispatched in the emergency range. • This Scenario will take place on Sept 10. • Emergency capacity surplus will occur from 0900 to 1100 CPT • Emergency capacity shortage will occur from 1300 to 1500 CPT MP Activities • Submit at least one dispatchable resource with Emergency min < Eco. Min • Resource should not be on a regulation status • Submit at least one resource with an Emergency Max > Eco Max • Resources should not have a fixed Spinning or Supplemental reserve status • The resource should not be on a regulation status • MPs should observe activation of emergency limits Alan Adams 19

8. 0 DA Scarcity Pricing Scenario Description • At 0700 Day-Ahead, System-Wide and Zonal Operating Reserve Requirements and the MPs estimated Operating Reserve obligations are posted by SPP. After 1100 DA, in separate intervals, scarcity pricing will be accomplished through SPP making any combination of the following changes: – The System-Wide operating reserve requirement will be updated to create a system-wide shortage of operating reserves. – The minimum Zonal operating reserve requirements will be updated to create an operating reserve shortage in a zone. – The System-Wide regulation up reserve requirement will be updated to create a system-wide shortage of regulation up. – The System-Wide regulation down reserve requirement will be updated to create a system-wide shortage of regulation down ***The MP’s submitted data will be updated as necessary to create shortage conditions. Alan Adams 20

8. 0 DA Scarcity Pricing Expected Result • Using the commitment results from the SCUC, SCED will clear Resource Offers and Import Interchange Transaction Offers to meet Demand Bids, Virtual Energy Bids, Export Interchange Transaction Bids and Operating Reserve requirements at minimum cost for each hour of the upcoming Operating Day wile respecting Resource operating constraints and transmission constraints. • To ensure rational pricing of clearing Operating Reserve products, the SCED algorithm will include product substitution logic. • When an Operating Reserve shortage occurs in any hour, Scarcity Pricing will be invoked as described under Section 4. 1. 5 of the Integrated Marketplace Protocols. Alan Adams 21

8. 0 DA Scarcity Pricing Expected Result • This Scenario will look at the following, with the assumption that there is no capacity shortage: – – OPERATING DAY 1: § System-Wide OR shortage only § Zonal OR shortage only § System-Wide REGUP shortage only § System-Wide REGDN shortage only OPERATING DAY 2 § System-wide OR shortage, Zonal OR shortage § System-wide OR shortage, System-wide REGUP shortage § System-wide REGUP shortage, Zonal OR shortage § System-wide OR shortage, System-wide REGUP shortage, Zonal OR Shortage Alan Adams 22

8. 0 DA Scarcity Pricing MP Activities *Applicable to MPs with Load • Offer sufficient Resources and Import Transactions to the DA Market to cover their load and Firm exports plus Operating Reserve obligation to the extent the Resources are available (e. g. not on forced outage, planned outage or Reserve Shutdown) • Only Resources submitted with a Commitment Status of Market or Self may be used to satisfy this requirement • Load for purposes of this section shall be equal to the expected daily peak Resident Load • Operating Reserve obligation shall be equal to the sum of MP’s maximum daily Regulation-Up, Regulation-Down and Contingency Reserve obligation as calculated by SPP Alan Adams 23

8. 0 DA Scarcity Pricing MP Activities *Applicable to MPs with Resources • Submit Resource Offers for each Resource for use in the DA Market. For the DA Market, Resource Offers must include: • A Start-Up Offer, a No-Load Offer and an Energy Offer Curve for Resources qualified to provide Energy • A Reg-Up Offer for Reg-Up Qualified Resources • A Reg-Down Offer for Reg-Down Qualified Resources • A Spinning Reserve Offer for Spin Qualified Resources • A Supplemental Reserve Offer for Supplemental Qualified Resources • Submit Mitigation Offers for all Resources • Review cleared MW for consistency between energy offers and cleared LMP values at each settlement location. • Make sure market committed resources are within submitted notification times • Ensure all market committed resources do not exceed maximum energy requirements and minimum energy requirements or run times. Alan Adams 24

8. 0 DA Scarcity Pricing MP Activities *Applicable to all MPs • Submit all offers and bids for thee Operating day, the Day before DA to allow SPP additional analysis time for the inputs that will need to be adjusted to meet the scenarios • May submit Dispatchable or Up to Congestion Schedules to the ITE RTOSS for testing • All EIS Production schedules that cross the SPP boundary will be pre-populated each day prior to the execution of the DA Market • MPs should not replicate any tag names that are in the EIS Market Production system when submitting additional test schedules to ITE RTOSS • Dispatchable and Up to TUC transactions should be 10 MW or less and no more than 2 per hour Alan Adams 25

Release Scorecard posted to spp. org: spp. org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder Ginny Watson 26

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 27

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 # Issue Type Synopsis 649 Markets Systems AC EDRs with a ‘NOTQUALIFIED’ energy status are put into a 3 CMode-Echo SCADA. 650 Markets Systems AC EDRs are unable to clear Regulation due to ‘NOTQUALIFIED’ energy status forcing EDR into a 3 CMode 651 Markets Systems AC EDRs that are in the Markets database with the correct data (no energy offer curve or energy ramp rates) are put in a 3 CMode with a “No offer data” reason. 652 Markets Systems AC EDRs with a ‘NOTQUALIFIED’ energy status are put in a 3 CMode but still clear contingency reserves. 666 Markets Systems EDRs are being dispatched outside operating limits Ginny Watson 28

Scheduled Scenarios • Sept 9 – Sept 13 • 19. 0 – Emergency Logic • 8. 0 – DA Scarcity Pricing • Sept 16 – Sept 20 • 16. 1 – DA Offer Curve Mitigation • 16. 2 – RUC Offer Curve • 16. 3 – RTBM Mitigation • 31. 0 – Block Demand Response Ginny Watson 29

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 30