Southwest Power Pool REGIONAL TARIFF WORKING GROUP 8th ...

Southwest Power Pool REGIONAL TARIFF WORKING GROUP

8th Floor Conference Room Renaissance Tower (AEP Offices) – Dallas, TX

March 20, 2013 – 1:00 P.M. – 5:00 P.M. March 21, 2013 – 8:30 A.M. – 2:00 P.M.

March 20, 2013 -MINUTES-

Agenda Item 1 – Call to Order, Introductions and Receipt of Proxies Chair Dennis Reed, Westar, called the meeting to order at 1:03 P.M. on March 20, 2013, and asked for a round of introductions. There were 34 persons in attendance either in person or via phone. (Attachment 1 – Attendance March 20, 2013). No proxies were reported. Agenda Item 2 – Review of Agenda and Additional Agenda Items Chair Reed asked if there were any changes or additions to be made to the agenda. Chair Reed requested we begin the meeting with Agenda Item 4 – TRR 085 – Determination of Credits and Distribution of Credit Revenue. Agenda Item 4 – TRR 085 – Determination of Credits and Distribution of Credit Revenue David Kays, OG&E, began the overview in Attachment H – Annual Transmission Revenue Requirement for Network Integration Transmission Service. Charles Locke, KCPL, noted Columns 6 and 7 of Attachment H, Table 1 should be reversed. The changes made to make Column 6 reflect ATRRs Reallocated to Balanced Portfolio Region-wide ATRR and Column 7 reflect Base Plan Zonal ATRR to pay Upgrade Sponsors. It was agreed to incorporate tariff language to Attachment L from TRR 080 – Attachment L Modifications for Balanced Portfolios that was approved by the Board in January, 2013. Staff noted the tariff language in TRR 080 is scheduled to be filed with FERC in the near future. The language will be added to TRR 085 as italicized language (pending language) for the RTWG review on March 21, 2013. The group’s review concluded in Attachment L, Section II – Distribution of Transmission Service Revenues Associated with the Zonal Annual Transmission Revenue Requirement.

Adjournment – Day 1 Chair Reed adjourned the meeting at 5:41 P.M. on March 20, 2013, to reconvene at 8:30 A.M. on March 21, 2013.

Regional Tariff Working Group

March 20 – 21, 2013

March 21, 2013

-MINUTES-

Agenda Item 6– Call to Order, Introductions and Receipt of Proxies Chair Dennis Reed (Westar) called the meeting to order at 8:31 A.M. on March 21, 2013, and asked for a round of introductions. There were 31 persons in attendance either in person or via phone (Attachment 6 – Attendance – March 21, 2013). No proxies were reported. Agenda Item 7 – Review of Agenda and Additional Agenda Items Chair Dennis Reed (Westar) asked if there were any changes or additions to be made to the agenda. There were no changes or additions to the agenda. Agenda Item 9 – TRR 089 – Order 1000 Seams Tariff Revisions Matt Harward, SPP, led the discussion on TRR 089 – Order 1000 Seams Tariff Revisions beginning with Attachment H. It was noted TRR 085 tariff revisions in Attachment H and Attachment L will need to be incorporated into TRR 089. A new line in Table 2 of Attachment H was added for Other Interregional Planning Region ATRR. New language was added in Attachment L, Section III identifying the process of the distribution of the revenues associated with approved Interregional Projects collected by the Transmission Provider under Schedule 11. Revenues associated with approved Interregional Projects received by the Transmission Provider from an Interregional Planning Region will be distributed to the owning Transmission Owner(s) in proportion to their respective annual transmission revenue requirements for the approved Interregional Project. Additional edits were made in Attachment O, Section I. It was noted Interregional Projects should be added to the flow chart in Figure 1 – SPP Transmission Planning. The group’s review concluded with Addendum 3 to Attachment O – Midwest Independent Transmission System Operator, Inc. Agenda Item 8 - TRR 085 – Determination of Credits and Distribution of Credit Revenue – Review of Attachment L Charles Locke, KCP&L, incorporated the language in the approved TRR 080 (Attachment L, Section III) into TRR 085. He divided the language in Attachment III into three separate sub-sections – A. Distribution of Revenues Based on Annual Transmission Revenue Requirements; B. Distribution of Revenues for Creditable Upgrades Included in Schedule 11 Rates, and C. Distribution of Revenues for Creditable Upgrades Included in Schedule 11 Rates.

Regional Tariff Working Group

March 20 – 21, 2013

Agenda Item No. 11 Future Meetings

March 27 – 28, 2013 – Dallas, TX (1:00 P.M. – 5:00 P.M.) (8:30 A.M. – 2:00 P.M.)

April 25, 2013 – Dallas, TX (9:00 A.M. – 3:00 P.M.)

May 22 - 23, 2013 – Dallas, TX (1:00 P.M. – 5:00 P.M.) (8:30 A.M. – 2:00 P.M.)

June 26 - 27, 2013 – Dallas, TX (1:00 P.M. – 5:00 P.M.) (8:30 A.M. – 2:00 P.M.)

July 25, 2013 – Dallas, TX (9:00 A.M. – 3:00 P.M.)

August 22, 2013 – Dallas, TX (9:00 A.M. – 3:00 P.M.)

September 26, 2013 – Dallas, TX (9:00 A.M. – 3:00 P.M.)

October 24, 2013 – Dallas, TX (9:00 A.M. – 3:00 P.M.)

November 21, 2013 – Dallas, TX (9:00 A.M. – 3:00 P.M.)

Adjournment – Day 2 Chair Dennis Reed adjourned the meeting at 2:19 P.M. on March 21, 2013.

Respectively Submitted, Brenda Fricano Staff Secretary

Regional Tariff Working Group Meeting

Date March 20, 2013

Last Name First

Name Company Email

Attend

Members

Andrysik Richard LES [email protected] Phone

Cecil Walt MoPSC [email protected] X

Dowling Bill Midwest Energy, Inc. [email protected]

Haner Luke Omaha Public Power District [email protected] Phone

Hestermann

Tom Sunflower Electric Power Corp. [email protected] X

Janssen Rob Dogwood Energy [email protected] Phone

Kays David Oklahoma Gas & Electric [email protected] X

Kolb Lloyd Golden Spread Electric

Cooperative [email protected] X

Littleton Tom OMPA [email protected] X

Liu Bernard Xcel Energy [email protected] X

Locke Charles Kansas City Power & Light

Company [email protected] X

Malone Paul NPPD [email protected] Phone

Pennybaker

Robert American Electric Power [email protected] Phone

Reed Dennis Westar Energy [email protected]

m X

Rowland Neil Kansas Municipal Energy Agency

[email protected] X

Shields Robert Arkansas Electric Cooperative

Corporation [email protected] X

Tynes Keith ETEC [email protected] Phone

Varnell John Tenaska Power

Services [email protected] X

Warren Bary Empire District [email protected] Phone

Williams Mitchell Western Farmers Electric

Cooperative [email protected] Phone

Wagner Nicole Southwest Power Pool [email protected] Phone

Fricano Brenda Southwest Power Pool [email protected] X

Last Name First

Name Company Email

Anderson Gene OMPA

Anthony Gay Southwest Power Pool [email protected]

Binette Matt Wright & Talisman [email protected] Phone

Bumgarner Carrie Wright & Talisman [email protected]

Busbee Alfred Southwest Power Pool [email protected] Phone

Camp Wayne Accenture [email protected]

mailto:[email protected]

Cates Charles Southwest Power Pool [email protected]

Last Name First

Name Company Email

Choate Marisa Southwest Power Pool [email protected]

Fox Kip AEP [email protected]

Gallup Terri AEP [email protected]

Gaw Steve Wind Coalition [email protected] Phone

Gay Ryan Southwest Power Pool [email protected]

Giessmann Dena Southwest Power Pool [email protected]

Greenwalt Jared Southwest Power Pool [email protected]

Hamilton Sherry Southwest Power Pool [email protected]

Harward Matt Southwest Power Pool [email protected] X

Hayes Alison Southwest Power Pool [email protected]

Kelly Patti Southwest Power Pool [email protected]

Kentner Tessie Southwest Power Pool [email protected]

Lucas Antoine Southwest Power Pool [email protected]

Miller Brittney Arkansas PSC [email protected] Phone

Mitchell Ty Southwest Power Pool [email protected]

Moffet Michael Sunflower Electric Power Coop [email protected]

Mooney Catherin

e Southwest Power Pool [email protected]

Mosier Pat APSC [email protected]

Onnen Katy KCPL [email protected] Phone

Polk Susan Southwest Power Pool [email protected]

Purdy Steve Southwest Power Pool [email protected]

Reed Wendy Wright and Talisman [email protected]

Roach Temujin SPP [email protected]

Shumate Walt Shumate & Associates [email protected]

Simpson Carrie Southwest Power Pool [email protected]

Sundman Roy Training and Support Services, Inc. [email protected]

Thomas Mena PUC Texas State

Claborn Shawnee PUC Texas State Phone

Cade Bruce Xcel

DeBaun Tom KCC Phone

McKinnie Adam

Nickell Lanny SPP

Hocker Jeff SWPA

Dobson Alex OMPA

Hooten Brett SPP Phone

Safuto Robert Customized Energy Solutions Phone

Sidman Kara [email protected] Phone

Sunderman Derek [email protected]

m Phone

Samson Eric SPP Phone


Tariff Revision Request (TRR)

Page 1 of 53

TRR Number

085 TRR Title

Determination of Credits and Distribution of Credit Revenue - Tariff Attachment Z2 Implementation

Cross Reference #

PRR BRR Other (Specify) _ _____________

Sponsor

Name David Kays

E-mail Address Kays, David <[email protected]>

Company OG&E

Phone Number (405)553-3538

Date 12/31/2012

Tariff Section(s) Requiring Revision

Section No.

Part I.

1 Definitions

Definition C - Add new term “Creditable Upgrade”

Definition D – Revise “Directly Assigned Upgrade Costs” definition

Definition U – Add new term “Upgrade Sponsor”

Part IV Attachment H – reflect Base Plan Zonal ATRR to pay upgrade

sponsors

Part iV. Attachment J, Sec III, B.1.d.ii and B.1.f - add / revise language

about allocating DAUC

Part IV Attachment Z1, Section V

a. Insert letters a & b in front of original paragraphs (format change)

b. Change reference in new sub-part b to Section V

c. Add new sub-part c which defines the process for allocating

DAUC to Network Upgrades & requests

Part IV. Attachment Z2

Section I - Add new language re: Creditable Upgrades

Section II – bifurcate Section I into two sections; Section II to

address Revenue Crediting

Section III – Revise language in previous Section II to address

Inclusion of Creditable Upgrades into Rates

Requested Resolution Normal Urgent (provided justification below for urgent

request)


Page 2 of 53

Revision Description

1) to set out the CPTF’s understanding of the provisions contained in Tariff Attachment Z2 Revenue Crediting for Upgrades, 2) to outline a recommended process to be used by SPP Staff to implement the crediting provisions of the Tariff, 3) to provide recommendations for specific modifications to the Tariff that the task force believes might be necessary in order to clarify the crediting process

Reason for Revision Clarify requirements of existing tariff provisions regarding implementation of Attachment Z2, Crediting

Stakeholder Approval Required (specify date and record outcome of vote; n/a for those stakeholders not required)

MWG BPWG (n/a) TWG (n/a) ORWG (n/a) Other (specify) (n/a) RTWG MOPC Board of Directors

Legal Review Completed

Yes (Include any comments resulting from the review)

No

Market Protocol Implications or Changes

Yes (Include a summary of impact and/or specific changes & PRR #)

No

Business Practice Implications or Changes

Yes (Include a summary of impact and/or specific changes & BPR #) TBD

No


Page 3 of 53

Criteria Implications or Changes

Yes (Include a summary of impact and/or specific changes)

No

Other Corporate Documents Implications (i.e., SPP

By-Laws, Membership Agreement, etc.)

Yes (Include which corporate documents)

No

Credit Implications

Yes (Include a summary of impact and/or specific changes)

No

Impact Analysis Required

Yes

No


Page 4 of 53

Proposed Tariff Language Revisions (Redlined)

C - Definitions

Calendar Day: Any day including Saturday and Sunday.

Commission: The Federal Energy Regulatory Commission.

Completed Application: An Application that satisfies all of the information and other requirements

of the Tariff, including a Credit Application and any required Financial Security.

Control Area: An electric power system or combination of electric power systems to which a

common automatic generation control scheme is applied in order to:

(1) match, at all times, the power output of the generators within the electric power system(s) and

capacity and energy purchased from entities outside the electric power system(s), with the load

within the electric power system(s);

(2) maintain scheduled interchange with other Control Areas, within the limits of Good Utility

Practice;

(3) maintain the frequency of the electric power system(s) within reasonable limits in accordance

with Good Utility Practice; and

(4) provide sufficient generating capacity to maintain operating reserves in accordance with Good

Utility Practice.

Credit Policy: The Credit Policy set forth in Attachment X to the Tariff.

Creditable Upgrade: Any Network Upgrade which meets the requirements of Section I of Attachment

Z2.

Curtailment: A reduction in firm or non-firm transmission service in response to a transmission


Page 5 of 53

capacity shortage as a result of system reliability conditions.

D - Definitions

Delivering Party: The entity supplying capacity and energy to be transmitted at Point(s) of Receipt.

Delivery Point Transfer: The transfer of responsibility for serving an existing delivery point from

one Network Customer or Transmission Customer to a different Network Customer or Transmission

Customer.

Designated Agent: Any entity that performs actions or functions required under the Tariff on behalf

of the Transmission Provider, a Transmission Owner, an Eligible Customer, or the Transmission

Customer.

Designated Resource: Any designated generation resource owned, purchased or leased by a

Transmission Customer to serve load in the SPP Region. Designated Resources do not include any

resource, or any portion thereof, that is committed for sale to third parties or otherwise cannot be

called upon to meet the Transmission Customer's load on a non-interruptible basis.

Directly Assigned Upgrade Costs: An Eligible Customer’s share of the cost of a Service Upgrade or

Network Upgrade, or a Project Sponsor’s share of the cost of a Sponsored Upgrade, determined in

accordance with Attachments J, V and Z1, which includesincluding: (i) any Network Upgrade costs

that are: (i) directly assigned to an Eligible Customer for a Service Upgrade in excess of the normally

applicable transmission access charges for the associated transmission service; (ii) any costs directly

assigned to an Eligible Customer that are in excess of the Safe Harbor Cost Limit for Service

Upgrades associated with new or changed Designated Resource; and (iii) any costs directly assigned

to a Project Sponsor for a Sponsored Upgrade; or (iv) directly assigned to a Generation

Interconnection Customer resulting from a request for generation interconnection.


Page 6 of 53

Direct Assignment Facilities: Facilities or portions of facilities that are constructed by any

Transmission Owner(s) for the sole use/benefit of a particular Transmission Customer or a particular

group of customers or a particular Generation Interconnection Customer requesting service under the

Tariff. Direct Assignment Facilities shall be specified in the Service Agreements that govern service

to the Transmission Customer(s) and Generation Interconnection Customer(s) and shall be subject to

Commission approval.

U - Definitions

Users: Transmission Customers or other entities that are parties to transactions under the Tariff.

Upgrade Sponsor: A Transmission Customer, Network Customer, Generation Interconnection

Customer, or Project Sponsor paying Directly Assigned Upgrade Costs for a Creditable Upgrade.

ATTACHMENT H

ANNUAL TRANSMISSION REVENUE REQUIREMENT FOR NETWORK INTEGRATION

TRANSMISSION SERVICE

SECTION I: General Requirements

1. The Zonal Annual Transmission Revenue Requirement (“Zonal ATRR”) for each Transmission

Owner for purposes of determining the charges under Schedule 9, Network Integration Transmission

Service, is specified in Column (3) Section I, of Table 1. The Base Plan Zonal Annual Transmission

Revenue Requirement (“Base Plan Zonal ATRR”) used to determine the zonal charges under

Schedule 11 for Base Plan Upgrades issued a Notification to Construct (“NTC”) prior to June 19,

2010 is specified in Column (4) Section I, of Table 1. The Base Plan Zonal ATRR used to determine

the zonal charges under Schedule 11 for Base Plan Upgrades issued an NTC on or after June 19, 2010

is specified in Column (5) of Section I, Table 1. The amount of Zonal ATRR and Base Plan Zonal

ATRR that is included in Columns (3), (4), and (5), and (7) and reallocated to the Region-wide

Annual Transmission Revenue Requirement (“Region-wide ATRR”), in accordance with Attachment

J, is specified in Column (6) of Section I, Table 1. The Base Plan Zonal ATRR to pay Upgrade


Page 7 of 53

Sponsors in accordance with Attachment Z2 is specified in Column (7) of Section I, Table 1.

Table 1

(See Note A below)

(1)

Zone

(2) (3)

Zonal ATRR

(4)

Base

Plan

Zonal

ATRR

(5)

Base Plan

Zonal

ATRR after

June 19,

2010

(6)

ATRR

Reallocated

to Balanced

Portfolio

Region-

wide ATRR

(67)

R

Base Plan

Zonal ATRR

to pay Upgrade

Sponsors [LC1]

1 American Electric Power –West

(Total)

See Att. H tab,

posted RRR File See Att. H

tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

[BGF2]

1a

American Electric Power (Public

Service Company of Oklahoma

and Southwestern Electric Power

Company) See Section II.3

See Att. H tab,

posted RRR File

See Att. H

tab, posted

RRR File

1b East Texas Electric Cooperative,

Inc. $2,733,879

1c Tex-La Electric Cooperative of

Texas, Inc. $588,874

1d Deep East Texas Electric

Cooperative, Inc. $428,131

1e Oklahoma Municipal Power

Authority $748,647

1f

AEP West Transmission

Companies (AEP Oklahoma

Transmission Company, Inc and

AEP Southwestern Transmission

Company, Inc)

See Att. H tab,

posted RRR File

See Att. H

tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

2 Reserved for Future Use

3 City Utilities of Springfield,

Missouri $8,651,509

See Att. H

tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

4 Empire District Electric

Company $14,075,000

See Att. H

tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

5 Grand River Dam Authority See Att. H tab,


tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File


Page 8 of 53

6 Kansas City Power & Light

Company

See Att. H tab,

posted RRR File

See Att. H

tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

7 Oklahoma Gas and Electric

(Total)

See Att. H tab,

posted RRR File

See Att. H

tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

7a Oklahoma Gas and Electric

See Att. H tab,


tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

7b Oklahoma Municipal Power

Authority $368,501

See Att. H

tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

8 Midwest Energy, Inc. See Att. H tab,

posted RRR File

See Att. H

tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

9 KCP&L Greater Missouri

Operations Company

See Att. H tab,

posted RRR File

See Att. H

tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

10 Southwestern Power

Administration $14,267,100

See Att. H

tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

11 Southwestern Public Service

Company (Total)

See Att. H tab,

posted RRR File

See Att. H

tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

11a Southwestern Public Service Company See Att. H tab,

posted RRR File

See Att. H

tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

11b Tri-County Electric Cooperative See Att. H tab,

posted RRR File

See Att. H

tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

12 Sunflower Electric Power

Corporation $14,484,045

See Att. H

tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

13 Western Farmers Electric

Cooperative $20,719,639 See Att. H

tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

14 Westar Energy, Inc. (Kansas

Gas & Electric and Westar

Energy) (Total)

See Att. H tab,

posted RRR File

See Att. H

tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

14a Westar Energy, Inc. (Kansas Gas

& Electric and Westar Energy) See Att. H tab,

posted RRR File

See Att. H

tab, posted

See Att. H

tab, posted

See Att. H tab,

posted RRR

See Att. H tab,

posted RRR File


Page 9 of 53

RRR File RRR File File

14b Prairie Wind Transmission, LLC. See Att. H tab,

posted RRR File

See Att. H

tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

14c Kansas Power Pool See Att. H tab,

posted RRR File

See Att. H

tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

15 Mid-Kansas Electric Company

(Total)

See Att. H tab,

posted RRR File

See Att. H

tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

15a Mid-Kansas Electric Company $15,142,441

See Att. H

tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

15b ITC Great Plains

See Att. H tab,

posted RRR File

See Att. H

tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

15c Prairie Wind Transmission, LLC. See Att. H tab,

posted RRR File

See Att. H

tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

16 Lincoln Electric System See Att. H tab,


tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

17 Nebraska Public Power District See Att. H tab,

posted RRR File

See Att. H

tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

18 Omaha Public Power District See Att. H tab,

posted RRR File

See Att. H

tab, posted

RRR File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

See Att. H tab,

posted RRR File

19 Total

See Att. H tab,

posted RRR File

Note A: The Annual Transmission Revenue Requirements (“ATRR”) for each Zone are set forth

in the Revenue Requirements and Rates File (“RRR File”) posted on the SPP website.

2. For the purposes of determining the Region-wide Charges under Schedule 11, the Region-wide

ATRR, as shown in Line 56 of Section I, Table 2, shall be the sum of (i) the Base Plan Region-wide

Annual Transmission Revenue Requirements (“Base Plan Region-wide ATRR”)(reflected in Line 1

and Line 2), and (ii) the total Balanced Portfolio Region-wide Annual Transmission Revenue


Page 10 of 53

Requirements (“Balanced Portfolio Region-wide ATRR”)(reflected in Line 3 and Line 4) and (iii)

anythe Base Plan Region-wide ATRRamount required to to be paidpay to y an Upgrade Sponsors

(reflected in Line 5) to include a Creditable Upgrade in the Schedule 11 Region-wide charges

determined in accordance with Attachment Z2 of this Tariff.

Table 2

(See Note B below)

1 Base Plan Region-wide ATRR (NTC prior to June 19, 2010) See Att. H tab, posted

RRR File

2 Base Plan Region-wide ATRR (NTC on or after June 19, 2010) See Att. H tab, posted

RRR File

3 Total ATRR reallocated to Balanced Portfolio Region-wide ATRR

Total,from Column (6), Section I, Table 1

See Att. H tab, posted

RRR File

4 Balanced Portfolio Region-wide ATRR See Att. H tab, posted

RRR File

5 Amount usedBase Plan Region-wide ATRR to pay Upgrade

Sponsors


RRR File

56 Region-wide ATRR (Line 1 + Line 2 + Line 3 + Line 4 + Line 5) See Att. H tab, posted

RRR File

Note B: The Region-wide ATRRs are set forth in the RRR File posted on the SPP website.

3. A Transmission Owner’s revenue requirement referenced or stated in this Attachment H shall not be

changed absent a filing with the Commission, accompanied by all necessary cost support, unless such

Transmission Owner utilizes Commission-approved formula rate processes contained in this Tariff to

determine its revenue requirements.

4. A new or amended revenue requirement referenced or stated in this Attachment H shall not be filed

with the Commission by the Transmission Provider unless such revenue requirements have been

provided by or for a Transmission Owner. Such revenue requirements shall have been accepted or

approved by the applicable regulatory or governing authority except in the event of a simultaneous

filing with the Commission by the Transmission Owner and Transmission Provider.


Page 11 of 53

5. If a Transmission Owner has a Commission-approved formula rate, the successful completion of its

approved annual formula rate update procedures shall constitute regulatory acceptance sufficient to

authorize the Transmission Provider to update that Transmission Owner’s revenue requirements

posted on the SPP website. Such update by the Transmission Provider shall not require a filing with

the Commission, provided that the Transmission Owner posts the populated formula rate for public

review and comment as required under the applicable protocols and/or procedures contained in this

Attachment H. The Transmission Provider shall follow any special procedures related to updating a

Transmission Owner’s revenue requirements as outlined in Section II of this Attachment.

6. The Transmission Provider shall allocate the accepted or approved revenue requirement associated

with a Base Plan Upgrade, in accordance with Attachment J to this Tariff, to the Base Plan Region-wide

ATRRs in Section I, Table 2 above and to the appropriate Base Plan Zonal ATRR in Column (4) or (5) in

Section I, Table 1.

Attachment J

III. Base Plan Upgrades

A single Base Plan Upgrade is comprised of any upgrade or group of upgrades required to be made to

a single transmission circuit, where a transmission circuit is comprised of all load carrying elements between

circuit breakers or the comparable switching devices. A load carrying element within a Base Plan Upgrade

that is connected at two different voltage levels (e.g. a 345kV/138kV transformer) shall, for the purposes of

this Attachment J, be considered to have a nominal operating voltage of its lower voltage level (excluding any

tertiary windings) and its costs shall be allocated in accordance with the rules governing the lower voltage

level in this Attachment J. A waiver may be requested to use a transformer’s higher voltage level instead of

the lower voltage level for the purposes of cost allocation under this Attachment J based on the anticipated

utilization of the transformer. Such request must be made in writing with supporting analysis and submitted

to the Transmission Provider not later than one hundred eighty (180) days following the inclusion of the

transformer in an approved SPP Transmission Expansion Plan. Any waiver request submitted shall be

evaluated based upon the following general factors, including but not limited to: (i) whether the power flows

through the transformer predominately are from the lower voltage to the higher voltage; (ii) whether the

transformer is not necessary for the support of, or does not substantially benefit, the lower voltage system in

the host zone to which it is connected. The Transmission Provider shall make a recommendation to accept or


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deny the waiver, on a non-discriminatory basis, to the Markets and Operations Policy Committee. The

Markets and Operations Policy Committee will consider the waiver request and the Transmission Provider’s

recommendation, and will provide its own recommendation (along with the Transmission Provider’s

recommendation) regarding such waiver to the SPP Board of Directors. Barring unusual circumstances, the

recommendation to approve or reject such waiver request will be submitted to the SPP Board of Directors

within one hundred twenty (120) days following the receipt of the waiver request.

A. Allocation of Base Plan Upgrade Costs Eligible for Cost Allocation

1. If the cost of a Base Plan Upgrade is less than or equal to $100,000, the annual

transmission revenue requirement associated with such Base Plan Upgrade shall be

allocated to the Base Plan Zonal Annual Transmission Revenue Requirement of the

Zone in which the Base Plan Upgrade is located.

2. If a) the Base Plan Upgrade is included in and constructed pursuant to the SPP

Transmission Expansion Plan in order to ensure the reliability of the Transmission

System or is an approved high priority upgrade, and the cost for that upgrade is not

allocable under Section III.A.1; or b) the Base Plan Upgrade cost eligible for cost

allocation under Section III.B.1 is not associated with a new or changed Designated

Resource for a wind generation plant, then:

i. X% of the annual transmission revenue requirement associated with such Base

Plan Upgrade costs eligible for cost allocation shall be allocated to the Base

Plan Region-wide Annual Transmission Revenue Requirement and recovered

through the Region-wide Charge, where X shall be set as follows:

a. For all Base Plan Upgrades issued a Notification to Construct prior to

June 19, 2010 or whose nominal operating voltage level is less than 300

kV but greater than 100 kV, X shall be 33%.

b. For all other Base Plan Upgrades whose nominal operating voltage level

is greater than or equal to 300 kV, X shall be 100%.

c. For all other Base Plan Upgrades whose nominal operating voltage level

is less than or equal to 100 kV, X shall be 0%.

ii. (100-X)% of the annual transmission revenue requirement associated with such


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Base Plan Upgrade costs eligible for cost allocation shall be allocated to the

Base Plan Zonal Annual Transmission Revenue Requirement and recovered

through the Base Plan Zonal Charge as follows:

a. For Base Plan Upgrades issued a Notification to Construct prior to June

19, 2010, this portion of the annual transmission revenue requirement

for Base Plan Upgrade costs eligible for cost allocation shall be

allocated to the Base Plan Zonal Annual Transmission Revenue

Requirement of specific Zones based on the Zones’ share of the

incremental positive MW-mile benefits as computed in Section 4 of

Attachment S to this Tariff. Each Zone with a benefit of at least 10

MW-miles from a given Base Plan Upgrade shall be allocated a portion

of the Base Plan Zonal Annual Transmission Revenue Requirement for

such upgrade based on its incremental positive MW-mile benefit

divided by the sum of the incremental positive MW-mile benefits for all

of those Zones with a benefit of at least 10 MW-miles from the upgrade,

provided that such allocation represents an engineering and construction

cost of at least $100,000.

b. For all other Base Plan Upgrades, this portion of the annual

transmission revenue requirement for Base Plan Upgrade costs eligible

for cost allocation shall be allocated solely to the Base Plan Zonal

Annual Transmission Revenue Requirement of the Zone in which the

Base Plan Upgrade is located.

3. If the Base Plan Upgrade cost eligible for cost allocation under Section III.B.1 of

Attachment J is a) associated with a new or changed Designated Resource that is a

wind generation plant and b) the Base Plan Upgrade is located within the same zone as

the Transmission Customer’s Point of Delivery, then:

i. X% of the annual transmission revenue requirement associated with the portion

of the Base Plan Upgrade costs eligible for cost allocation shall be allocated to

the Base Plan Region-wide Annual Transmission Revenue Requirement and


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recovered through the Base Plan Region-wide Charge, where X shall be set as

follows:


19, 2010 or whose nominal operating voltage level is less than 300 kV

and greater than 100 kV, X shall be 33%.

b. For all other Base Plan Upgrades whose nominal operating voltage level

is greater than or equal to 300 kV, X shall be 100%.

c. For all other Base Plan Upgrades whose nominal operating voltage level

is less than or equal to 100 kV, X shall be 0%.

ii. (100-X)% of the annual transmission revenue requirement associated with the

portion of the Base Plan Upgrade costs eligible for cost allocation shall be

allocated to the Base Plan Zonal Annual Transmission Revenue Requirement

and recovered through the Base Plan Zonal Charge as follows:


19, 2010, this portion of the annual transmission revenue requirement

for Base Plan Upgrade costs eligible for cost allocation shall be

allocated to the Base Plan Zonal Annual Transmission Revenue

Requirement of specific Zones based on the Zones’ share of the

incremental positive MW-mile benefits as computed in Section 4 of

Attachment S to this Tariff. Each Zone with a benefit of at least 10

MW-miles from a given Base Plan Upgrade shall be allocated a portion

of the Base Plan Zonal Annual Transmission Revenue Requirement for

such upgrade based on its incremental positive MW-mile benefit

divided by the sum of the incremental positive MW-mile benefits for all

of those Zones with a benefit of at least 10 MW-miles from the upgrade,

provided that such allocation represents an engineering and construction

cost of at least $100,000.

b. For all other Base Plan Upgrades, this portion of the annual

transmission revenue requirement for Base Plan Upgrade costs eligible


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for cost allocation shall be allocated to the Base Plan Zonal Annual

Transmission Revenue Requirement of the Zone in which the Base Plan

Upgrade is located.

4. If the Base Plan Upgrade cost eligible for cost allocation under Section III.B.1 of

Attachment J is a) associated with a new or changed Designated Resource that is a

wind generation plant and b) the Base Plan Upgrade is located within a zone(s) other

than the Transmission Customer’s Point of Delivery, then:

i. Y% of the annual transmission revenue requirement associated with the Base

Plan Upgrade costs eligible for cost allocation shall be allocated to the Base

Plan Region-wide Annual Transmission Revenue Requirement and recovered

through the Base Plan Region-wide Charge, where Y shall be set as follows:


19, 2010 or whose nominal operating voltage level is less than 300 kV,

Y shall be 67%.

b. For all other Base Plan Upgrades Y shall be 100%.

ii. (100-Y)% of the annual transmission revenue requirement associated with the

Base Plan Upgrade costs eligible for cost allocation shall be directly assigned

to the Transmission Customer.

B. Conditions for Classifying Service Upgrade Costs Associated with Designated Resources

As Base Plan Upgrade Costs Eligible for Cost Allocation

1. Except as provided in Section III.A.1 and subject to the limits and rules set forth in

Subsections d and f below, the costs of Service Upgrades associated with new or

changed Designated Resources shall be classified as Base Plan Upgrade costs eligible

for cost allocation if the conditions in the following Subsections a and b are met, and if

the condition in Subsection c is met as applicable.

a. The Transmission Customer’s commitment to the Designated Resource has a

duration of at least five years

b. In the first year the Designated Resource is planned to be used by the

Transmission Customer, the accredited capacity of the Transmission


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Customer’s existing Designated Resources plus the lesser of: (a) the planned

maximum net dependable capacity applicable to the Transmission Customer or

(b) the requested capacity; shall not exceed 125% of the Transmission

Customer’s projected system peak responsibility determined pursuant to SPP

Criteria 2.

c. If the Designated Resource is a wind generation plant, then the sum of: (1) the

requested capacity and (2) the transmission capacity reserved for the

Transmission Customer’s existing Designated Resources that are wind

generation plants shall not exceed 20% of the Transmission Customer’s

projected system peak responsibility as determined pursuant to SPP Criteria 2

in the first year the Designated Resource is planned to be used by the

Transmission Customer.

d. Safe Harbor Cost Limit for Eligibility of the Costs of Base Plan Upgrade for

Cost Allocation

i. For Base Plan Upgrades that cost over $100,000, the aggregate cost of

such upgrades assigned to each individual transmission service request

that is less than or equal to the Safe Harbor Cost Limit of $180,000 /

MW times the requested capacity is eligible for cost allocation in

accordance with:

1) Section III.A.2 for a new or changed Designated Resource other

than a wind generation plant; or

2) Sections III.A.3 and 4 for a new or changed Designated

Resource that is a wind generation plant.

ii. Unless a waiver of the Safe Harbor Cost Limit is granted pursuant to

Section III.C, ii. Aany costs that exceed the Safe Harbor Cost

Limit for a transmission service request shall be directly assigned to the

Transmission Customer and allocated among the upgrades affected by

the transmission service request in accordance with Section V.c of

Attachment Z1 of this Tariffunless a waiver of the Safe Harbor Cost


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Limit is granted pursuant to Section III.C.

e. Base Plan Upgrade costs eligible for allocation as a result of the granting of a

waiver shall be allocated in accordance with Sections III.A.2, III.A.3, or III.A.4,

as applicable.

f. For each Ttransmission Sservice Rrequest, the amount of Base Plan Upgrade

costs eligible for cost allocation shall be allocatedpro-rated among all Base Plan

Upgrades required to grant the Ttransmission Sservice Rrequest based upon the

remaining cost after subsequent based upon each Upgrade’s cost that is

allocated to the allocation of any Directly Assigned Upgrade

CostsTransmission Service Request in accordance with Section III.B.1d(ii) of

this Attachment JZ1.

2. The Transmission Customer must provide the Transmission Provider the information

that the Transmission Provider deems necessary to verify that the new or changed

Designated Resource meets conditions in Section III.B.1.a,b and c above.

3. If an upgrade for a new or changed Designated Resource meets the requirements set

forth in Section III.B.1.a, b, and c above, the costs up to the $180,000/MW Safe Harbor

Cost Limit will be classified as Base Plan Upgrade costs eligible for cost allocation.

4. If the conditions set forth in Section III.B.1.a, b, and c above are not met, and the

Transmission Customer does not secure a waiver of the relevant condition(s), the costs

of the upgrades will be directly assigned to the Transmission Customer. If the costs of

upgrades associated with a new or changed Designated Resource exceeds the Safe

Harbor Cost Limit and the Transmission Customer does not secure a waiver of that

limit, the costs of the upgrades in excess of the limit will be directly assigned to the

Transmission Customer. The Transmission Customer shall receive transmission

revenue credits in accordance with Attachment Z2 to this Tariff for any such directly

assigned costs.

C. Waiver of Conditions for Classifying Service Upgrade Costs Associated with Designated

Resources As Base Plan Upgrade Costs Eligible for Cost Allocation

1. Waiver Process


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If one or more of the conditions in Section III.B.1.a, b, c are not met or if the Base Plan

Upgrade cost exceeds the Safe Harbor Cost Limit, the Transmission Customer may seek a

waiver from the Transmission Provider in order that the costs of any Service Upgrade(s) that

otherwise would be directly assigned to the Transmission Customer may be classified in whole

or in part as Base Plan Upgrade costs eligible for cost allocation.

To obtain a waiver for the conditions set forth in Section III.B.1.a, b, c, the

Transmission Customer must submit a request for a waiver to the Transmission Provider

simultaneous with its request for long-term transmission service, submitted in accordance with

Attachment Z1 to this Tariff, for the new or changed Designated Resource.

Aggregate Facilities Studies performed by the Transmission Provider as part of the

Aggregate Transmission Service Study procedure, which is described in Attachment Z1, will

determine whether the costs for Service Upgrades associated with a new or changed

Designated Resource might exceed the Safe Harbor Cost Limit. If the Transmission Provider

determines that the costs for Service Upgrades associated with a new or changed Designated

Resource might exceed the Safe Harbor Cost Limit, the Transmission Provider shall notify the

affected Transmission Customer when the Transmission Provider posts the associated

Facilities Study. The affected Transmission Customer may request a waiver regarding the

costs in excess of the Safe Harbor Cost Limit within 15 days of such notice form the

Transmission Provider.

Following the receipt of a request for a waiver, the Transmission Provider will review

the request and make a determination on a non-discriminatory basis of whether a waiver

should be granted based upon consideration of the factors described in Section III.C.2. of this

Attachment. The Transmission Customer requesting the waiver shall be responsible for the

reasonable costs of any studies that the Transmission Provider performs in making its

determination. The Transmission Provider will provide a report and recommendation to the

Markets and Operations Policy Committee for each requested waiver. The Markets and

Operations Policy Committee will consider the waiver request and the Transmission

Provider’s report and recommendation, and will provide its own recommendation (along with

the Transmission Provider’s report and recommendation) regarding each requested waiver to


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the SPP Board of Directors. Barring unusual circumstances, a valid waiver request will be

reviewed and submitted to the SPP Board of Directors within 120 days following the receipt of

the waiver request.

2. Factors to be Considered in Evaluating Waiver Requests

Any waiver request submitted by a Transmission Customer pursuant to Section III.C.1.

of this Attachment shall be evaluated based upon the following general factors, including but

not limited to:

i. There are insufficient competitive resource alternatives for one or more Transmission

Customers.

ii. In the event that the aggregate costs of a Service Upgrade associated with a new or

changed Designated Resource exceed the Safe Harbor Cost Limit, (i) those costs up to

the level of the Safe Harbor Cost Limit shall be classified as Base Plan Upgrade costs

eligible for cost allocation, and (ii) those costs that exceed the Safe Harbor Cost Limit

may be classified in whole or in part as Base Plan Upgrade costs eligible for cost

allocation taking into account the extent to which the duration of the Transmission

Customer’s commitment to the new or changed Designated Resource exceeds the five-

year commitment period set forth in paragraph III.B.1. above.

iii. The five-year commitment period for the new or changed Designated Resource may be

waived if: (i) the associated Service Upgrade costs are significantly less than the Safe

Harbor Cost Limit; or (ii) the associated Service Upgrades provide benefits to other

Transmission Customers that would offset in less than five years any costs allocated to

them as a result of the upgrade being classified as a Base Plan Upgrade.

iv. If a request for a waiver is received by the Transmission Provider based upon other

circumstances, such waiver request shall also be considered pursuant to the waiver

process described in Section III.C.1. of this Attachment.

If the costs of the Service Upgrade(s) required for a new or changed Designated

Resource are not eligible for classification as Base Plan Upgrade costs, the Transmission

Customer may nevertheless request the construction of such upgrades. In such event, the costs

of such upgrades shall be allocated in accordance with Attachment Z1 to this Tariff.


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D. Review of Base Plan Allocation Methodology

1. The Transmission Provider shall review the reasonableness of the regional allocation

methodology and factors (X% and Y%) and the zonal allocation methodology at least

once every three years in accordance with this Section III.D. The Transmission

Provider and/or the Regional State Committee may initiate such review at any time.

Any change in the regional allocation methodology and factors or the zonal allocation

methodology shall be filed with the Commission.

2. For each review conducted in accordance with Section III.D.1, the Transmission

Provider shall determine the cost allocation impacts of the Base Plan Upgrades with

Notifications to Construct issued after June 19, 2010 to each pricing Zone within the

SPP Region. The Transmission Provider in collaboration with the Regional State

Committee shall determine the cost allocation impacts utilizing the analysis specified

in Section III.e of Attachment O and the results produced by the analytical methods

defined pursuant to Section III.D.4(i) of this Attachment J.

3. The Transmission Provider shall review the results of the cost allocation analysis with

SPP’s Regional Tariff Working Group, Markets and Operations Policy Committee, and

the Regional State Committee. The Transmission Provider shall publish the results of

the cost allocation impact analysis and any corresponding presentations on the SPP

website.

4. The Transmission Provider shall request the Regional State Committee provide its

recommendations, if any, to adjust or change the costs allocated under this Attachment

J if the results of the analysis show an imbalanced cost allocation in one or more

Zones.

i) One year prior to each three-year planning cycle (starting in 2013) the Markets

and Operations Policy Committee and Regional State Committee will define

the analytical methods to be used to report under this Section III.D and suggest

adjustments to the Regional State Committee and Board of Directors on any

imbalanced zonal cost allocation in the SPP footprint; and

ii) Starting in 2015 and at any time thereafter, any member company that feels that


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it has an imbalanced cost allocation may request relief through the Markets and

Operations Policy Committee. The Markets and Operations Policy Committee

recommendation, if any, will be forwarded with the request for relief to the

Regional State Committee and Board of Directors for review.

5. In accordance with the SPP Bylaws, the SPP Board of Directors will initiate the

appropriate actions, including any necessary filings with the Commission, consistent

with the Regional State Committee recommendations.

ATTACHMENT L TABLED – 2-27-2013

ATTACHMENT L

TREATMENT OF REVENUES

I. Payments And Distribution Of Revenues

Payment will be made in accordance with Part I, Section 7 of this Tariff to the Transmission Provider

as agent for the Transmission Owners for all services provided under this Tariff except that payments to the

Transmission Provider for use of Energy Imbalance Service will be made in accord with Section 6 of

Attachment AE. The Transmission Provider will distribute the revenues received to the Transmission

Owners, and to the providers of ancillary services, and to customersany Upgrade Sponsor(s) due revenue

credits pursuant to Attachment Z2 of this Tariff in accordance with the provisions of this Attachment L.

II. Distribution Of Transmission Service Revenues Associated With The Zonal Annual

Transmission Revenue Requirement

Transmission service revenues associated with the Zonal Annual Transmission Revenue Requirement

shall be distributed in accordance with the following:

A. Grandfathered Agreements

Except by mutual agreement of the Parties to Grandfathered Agreements, the Transmission Provider

shall have no claim to the revenues collected under such agreements, and shall not collect or allocate any

revenues for transmission service related to such transactions. The Transmission Owner providing the

transmission service under the Grandfathered Agreements, therefore, will continue to receive payment

directly from the customer under the Grandfathered Agreement. Nothing herein is intended to supersede or


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otherwise affect rights that any party to a Grandfathered Agreement may have with respect to termination of

the Grandfathered Agreement. In the event that a Grandfathered Agreement remains in effect between or

among two or more Transmission Owners in a multi-owner Zone other than Zone 1, the associated charges

and revenues will be treated as set forth in Section II.B.2(b) below for purposes of determining the

appropriate distribution of revenues among the Transmission Owners in that Zone.

B. Revenue Distribution – Network Integration Transmission Service

1. Single-Owner Zones

Where there is only one Transmission Owner in a Zone, revenues associated with facilities with a

Zonal Annual Transmission Revenue Requirement shall be distributed as follows:

(a) Except to the extent required under paragraph II.B.1(b) of this Attachment L,

revenues collected by the Transmission Provider under Schedule 9 in connection with the provision of

Network Integration Transmission Service shall be distributed to the Transmission Owner in the Zone where

the Network Load is located.

(b) When a Network Customer has designated Network Load not physically

interconnected with the Transmission System under Section 31.3 of the Tariff, revenues collected by the

Transmission Provider for Network Integration Transmission Service for that portion of the Network

Customer’s Network Load shall be distributed among Transmission Owners on the same basis as the

revenues collected in connection with the provision of Point-To-Point Transmission Service.

2. Multi-Owner Zones

When more than one Transmission Owner within a single Zone has established its owner-specific

zonal annual revenue requirement (“OZRR”), the Transmission Provider shall distribute revenues owed to the

Transmission Owners in the Zone as described below.

(a) Except to the extent required under paragraph II.B.2(e) of this Attachment L,

the Transmission Provider shall distribute revenues it collects under Schedule 9 to each Transmission Owner

in the Zone where the load is located in proportion to its respective share of the Zonal Annual Transmission

Revenue Requirements (“ZRR”) shown in Attachment H for that Zone, as adjusted in accordance with

paragraph II.B.2(b) below. The resulting adjusted OZRRs of the Transmission Owners in the Zone as

calculated in paragraph II.B.2(b) below will be combined to provide the basis for distribution of revenues


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from Schedule 9 charges.

(b) For any year in which a Transmission Owner is a seller of transmission service

to another Transmission Owner within the same Zone under one or more Grandfathered Agreements, the

selling Transmission Owner’s OZRR used to allocate revenue from Schedule 9 charges shall be reduced by

the revenues associated with these Grandfathered Agreements in that year, but only to the extent that such

costs have not already been credited against the selling Transmission Owner’s OZRR. For any year in which

a Transmission Owner is a purchaser of transmission service from a Transmission Owner within the same

Zone under one or more Grandfathered Agreements, the purchasing Transmission Owner’s OZRR shall be

increased by the charges payable under these Grandfathered Agreements in that year, but only to the extent

those charges are not already included in the purchasing Transmission Owner’s OZRR.

(c) For each Transmission Owner in the Zone that has elected not to take Network

Integration Transmission Service for its Native Load Customers or that has elected not to make payments to

the Transmission Provider for its OZRR in taking Network Integration Transmission Service for its Native

Load Customers and/or that provides long term transmission service under Grandfathered Agreements (other

than those addressed in paragraph II.B.2(b) above), the Transmission Provider shall compute hypothetical

NITS payments equal to the cost to serve its Native Load Customers and to serve long-term customers served

under Grandfathered Agreements (other than those addressed in paragraph II.B.2(b) above) as if those

customers were paying for service under Schedule 9.

(d) For each Transmission Owner, the Transmission Provider shall calculate an

amount equal to the sum of hypothetical NITS payments determined in accordance with paragraph II.B.2(c)

above, if any, plus distributed Schedule 9 charges in accordance with paragraph II.B.2(a) above, less its

OZRR as adjusted pursuant to paragraph II.B.2(b) above. If the resulting amount is positive, the

Transmission Owner shall pay the Transmission Provider this amount. If the resulting amount is negative,

the Transmission Provider shall pay the Transmission Owner this amount.

(e) The treatment described in paragraphs II.B.2(b)-(d) above is premised on the

assumption that the annual transmission revenue requirement of the Transmission Owner that is the seller

under a Grandfathered Agreement has not been reduced by the amount of the charges associated with the

Grandfathered Agreement. In such circumstances, the parties to the Grandfathered Agreement will attempt to

reach agreement on a treatment of the Grandfathered Agreement that results in appropriate compensation to


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the Transmission Owners in the Zone while preventing the imposition of excessive costs on others. If the

Transmission Owners in the Zone are unable to reach agreement, either Transmission Owner may invoke the

dispute resolution procedures of the Tariff or seek a determination from FERC as to the appropriate treatment

of the Grandfathered Agreement charges.

(f) When a Network Customer has designated Network Load outside the

Transmission Provider’s Transmission System under Section 31.3 of the Tariff, revenues collected by the

Transmission Provider for Network Integration Transmission Service for that portion of the Network

Customer’s Network Load shall be distributed among Transmission Owners on the same basis as the

revenues collected in connection with the provision of Point-To-Point Transmission Service.

(g) Sections II.B.2(a) through II.B.2.(e) above do not apply to Zone 1. In the event

a Transmission Owner within Zone 1 other than American Electric Power establishes its owner-specific zonal

annual revenue requirement (“OZRR”) as stated in Attachment H, that subsequent Transmission Owner will

be entitled to receive revenue, collected by the Transmission Provider from other Transmission Customers

within Zone 1 including any Transmission Owner within Zone 1 taking service under Section 39, in an

amount equal to one minus that Transmission Owner’s Load Ratio Share of the Zone 1 total Network Load

multiplied by that Transmission Owner’s OZRR.

(h) Nothing herein is intended to supersede or otherwise affect rights that any

Transmission Owner in a multi-owner Zone may have to seek designation of its facilities as a separate Zone

under the Tariff.

3. Revenue Credits – Tariff Attachment Z2

Network Integration Transmission Service Rrevenue collected by the Transmission Provider

attributed from Network Integration Transmission Service Customers to the use of Creditable Upgradesto be

paid to Upgrade Sponsors for use of Creditable Upgrades, pursuant to the provisions of Attachment Z2 of this

Tariff shall be paid to Upgrade Sponsors in accordance with Attachment Z2. will be distributed to those

Upgrade Sponsors in accordance with the provisions of that attachment.

C. Revenue Distribution -- Point-To-Point Transmission Service

Irrespective of the number of Transmission Owners in a Zone, and except to the extent required under

Section IV of this Attachment L, revenues collected by the Transmission Provider under Schedules 7 and 8

and revenues allocated pursuant to paragraphs II.B.1(b) and II.B 2(f). shall be distributed as follows:


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(a) In the event thatIf a Point-To-Point Transmission Service transactionreservation

could not be granted but for is enabled by the creditable use of one or more Creditable Upgrades, pursuant to

the provisions of Tariff Attachment Z2, the revenue from that transactionreservation will first be distributed

to the Upgrade Sponsors of such Creditable uUpgrades to satisfy the revenue credits due each in accordance

with the provisions of that aAttachment Z2. Any remaining revenue shall be distributed in accordance with all

other provisions of this Section C.

(ab) If the generation source(s) and load(s) are located within a single Zone, 50% of

the revenues shall be distributed to the Transmission Owner(s) in that Zone in proportion to their respective

shares of the ZRR, and 50% of the revenues shall be distributed to the Transmission Owner(s) in that Zone in

proportion to the MW-mile impacts incurred by each such Transmission Owner.

(bc) In all instances other than that described in the preceding paragraph : 50% of

the revenues shall be distributed to the Transmission Owners in proportion to their respective shares of the

sum of the Zonal Annual Transmission Revenue Requirements for all Zones; and 50% of the revenues shall

be distributed to the Transmission Owners whose facilities incur MW-mile impacts due to the transaction, in

proportion to the MW-mile impacts incurred by each such Transmission Owner. A Transmission Owner’s

OZRR used for this purpose shall be that stated in Attachment H. The MW-mile impacts shall be determined

by use of the procedures in Attachment S.

III. Distribution Of Revenues From Base Plan Zonal Charges and Region-wide Charges

A. Distribution of Revenues Based on Annual Transmission Revenue Requirements

Revenues derived from the component of the Region-wide Charge for Point-To-Point Transmission

Service that is associated with any amount reallocated from the Zonal Annual Transmission Revenue

Requirements, in accordance with Section IV.A of Attachment J, shall be distributed to Transmission

Owners proportionately to the distribution of revenues collected under Schedules 7 and 8 as provided in

Section II.C of this Attachment L. All other rRevenues associated with the Base Plan Zonal Annual

Transmission Revenue Requirements and with the Region-wide Annual Transmission Revenue Requirement,

specified in Attachment H and collected by the Transmission Provider under Schedule 11 of the Tariff but

excluding revenues collected pursuant to Sections III.B, III.C, and III.D of this Attachment L, and revenues

received by the Transmission Provider from another Interregional Planning Region for Interregional Projects,


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shall be distributed to Transmission Owners owning Base Plan Upgrades or upgrades within approved

Balanced Portfolios or Interregional Projects and to Transmission Owners with facilities in Zones from

which any amount has been reallocated from the Zonal Annual Transmission Revenue Requirements in

accordance with Section IV.A of Attachment J. Such revenue distribution shall be in proportion to the

Transmission Owners’ respective annual transmission revenue requirements for Base Plan Upgrades, annual

transmission revenue requirements for upgrades within approved Balanced Portfolios, annual transmission

revenue requirements for Interregional Projects, and amounts reallocated from the Zonal Annual

Transmission Revenue Requirements in accordance with Section IV.A of Attachment J.

B. Distribution of Point-To-Point Revenues under Zonal ATRR Reallocation

Revenues derived from the component of the Region-wide Charge for Point-To-Point Transmission

Service that is associated with any amount reallocated from the Zonal Annual Transmission Revenue

Requirements, in accordance with Section IV.A of Attachment J, shall be distributed to Transmission Owners

proportionately to the distribution of revenues collected under Schedules 7 and 8 as provided in Section II.C

of this Attachment L.

C. Distribution of Revenues for Creditable Upgrades Included in Schedule 11 Rates

Revenue collected by the Transmission Provider under Schedule 11 attributed to use of

Creditable Upgrades shall be distributed to the Upgrade Sponsors to which such revenues are due in

accordance with Section III.C.2 of Attachment Z2.

D. Distribution of Revenues to Other Interregional Planning Regions

Revenues associated with approved Interregional Projects receivedcollected by the Transmission

Provider under Schedule 11of the Tariff to compensate another Interregional Planning Region in accordance

with the interregional cost allocation pursuant to the Addendum(s) to Attachment O shall be distributed by

the Transmission Provider to the applicable Interregional Planning Region(s).

Section III with Charles Locke’s Revisions which include TRR 080 Tariff Revisions – 3/21/2013

IV. Distribution Of Other Revenues

1. Revenues associated with redispatch service will be paid to the generation owner providing the


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service for the Transmission Provider.

2. Revenues associated with Reactive Supply and Voltage Control from Generation Sources

Services under Schedule 2 of the Tariff will be paid to the generation owner providing the

service for the Transmission Provider consistent with the development of the charges under

Schedule 2.

3. Energy or revenues received as compensation for transmission losses shall be distributed

consistent with Attachment M to the Tariff.

4. Revenues associated with Scheduling, System Control and Dispatch Service under Schedule 1

shall be allocated to the Transmission Owners whose Control Area Operators within the

transmission system provide such service as follows:

a. For Firm or Non-Firm Point-To-Point Transmission Service, for through and out

transactions, Schedule 1 charge revenues shall be allocated to Transmission

Owners in proportion to the respective scheduling revenue requirement of each

such Transmission Owner associated with the provision of this service.

b. For Customers taking Firm or Non-Firm Point-To-Point Transmission Service, for

transactions into and within the Transmission System, Schedule 1 charge revenues

shall be allocated to Transmission Owner whose Zone is the Point of Delivery.

c. For Customers taking Network Integration Transmission Service, Schedule 1

charge revenues shall be allocated to Transmission Owner in whose Zone the load

is located.

5. Revenues associated with Tariff Administration Service under Schedule 1 will remain with

the Transmission Provider to pay for the costs of providing that service.

6. Payments associated with penalties imposed under this Tariff will be used to reduce the

Transmission Provider's Scheduling and Tariff Administration Service costs (though the non-

penalty portion of the charge will go back to the Transmission Owner(s) that actually provided

the service).

7. Transmission Owner costs associated with System Impact and Facilities Studies compensated

by the Transmission Customer shall go to the appropriate Transmission Owner(s).

8. The revenues associated with Direct Assignment Facilities shall go directly to the


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Transmission Owner(s) owning the facilities.

9. The revenues associated with Network Upgrades, not otherwise provided for in Section III of

this Attachment L, shall be first assigned to the Transmission Owner building the Network

Upgrades to meet the annual revenue requirements of such facilities. If multiple Transmission

Owners construct the facilities, the revenues shall be shared in accordance with each

Transmission Owner’s respective revenue requirement for such facilities or as otherwise

agreed by the Transmission Owners. The remaining revenues shall be allocated in accordance

with Section II of this Attachment L.

10. The revenues associated with Wholesale Distribution Service shall go directly to the

Transmission Owner(s) owning the facilities consistent with Schedule 10.

11. Any additional revenues received under Section 22.1 of the Tariff shall be treated in the same

manner as revenues under Section II.B.2 for single-owner Zones, and Section II.C.2 for multi-

owner Zones, of this Attachment L.

12. All revenues received by the Transmission Provider to compensate a Transmission Owner(s)

not party to a generation interconnection agreement for the construction of Network Upgrades

and Distribution Upgrades (as defined in Attachment V to the Tariff) associated with such

generation interconnection agreement will be distributed by the Transmission Provider to the

applicable Transmission Owner(s).

V. Adjustments To Revenue Allocations in the Event of Customer Non-Payments

If the amounts collected by the Transmission Provider for Transmission Services and Market Services

are insufficient to fully pay the Transmission Owners and providers of Market Services, then the following

procedures apply:

A. Definitions

The following definitions apply in this Section V of Attachment L. Capitalized terms used in this

Attachment L and not defined herein shall be given the meaning assigned to them under the Tariff.

1. Credit Support Documents: Any agreement or instrument in any way guaranteeing or

securing any or all of a Market Participant’s obligations under the Tariff (including, without limitation, the

Credit Policy), any agreement entered into under, pursuant to, or in connection with the Tariff or any


Page 29 of 53

agreement entered into under, pursuant to, or in connection with the Tariff or the Credit Policy, and/or any

other agreement to which the Transmission Provider and Market Participant are parties, including, without

limitation, any Guaranty, Letter of Credit, Credit and Security Agreement (Attachment B to the Credit Policy)

or agreement granting a security interest.

2. Default: Any default under Article Eight or otherwise under the Credit Policy.

3. Defaulting Market Participant: A Market Participant that defaults under section 8.1 of the

Credit Policy.

4. FERC: The Federal Energy Regulatory Commission.

5. Market Services: Services taken and/or provided pursuant to the Tariff, excluding

Transmission Services and interconnection obligations.

6. Non-Defaulting Market Participants: Market Participants, other than the Defaulting Market

Participant, who conducted business in the market during the time covered by the invoice(s) containing the

Unpaid Obligation.

7. Unpaid Obligation: An unpaid past due amount of an invoice pursuant to Section 7 of the

Tariff or for Market Services for which SPP does not reasonably expect payment in full and which SPP has

declared to be an Unpaid Obligation.

8. Uncollectible Obligation: An Unpaid Obligation that has not been paid within ninety (90)

days after SPP declared an invoice an Unpaid Obligation, or sooner, should by any means the Market

Participant’s Service Agreement be terminated.

B. General

SPP shall only be required to remit to the Transmission Owners, and providers of Market Services,

and customersUpgrade Sponsors due revenue credits, the revenues that it has collected, without dispute,

under the SPP Tariff for Market Services or Transmission Services, as applicable.

C. Procedures for Non-Payment of Amounts Invoiced for Market Services

1. The following procedures apply to defaults in payment of amounts invoiced for Market

Services. (With respect to defaults of amounts invoiced pursuant to Section 7 of the Tariff, see Section V.D.

of this Attachment L.) At such time as SPP concludes that SPP does not reasonably expect payment in full of

an unpaid past due amount, which SPP may conclude as early as within 1 day after the due date, then SPP

shall declare such unpaid past due amount to be an Unpaid Obligation. SPP will notify Market Participants of


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the declaration of an Unpaid Obligation by posting a notice to the OASIS. Such notification will identify the

Defaulting Market Participant, the amount of the Unpaid Obligation, the applicable week(s) of service for

which the Defaulting Market Participant was initially invoiced the Unpaid Obligation, and the future billing

week(s) in which SPP will, because of the Unpaid Obligation, reduce the revenues to be paid to all Non-

Defaulting Market Participants who conducted business in the market during the time covered by the invoice

applicable to the Unpaid Obligation.

SPP will then make reduced payments on the corresponding payout date to the Non-Defaulting

Market Participants receiving revenues for Market Services associated with the Unpaid Obligation. A

payment to a Non-Defaulting Market Participant will be reduced in amount equal to such Non-Defaulting

Market Participant’s pro rata share of the Unpaid Obligation.

Upon the earliest feasible date after declaring an Unpaid Obligation, SPP will take the following

additional steps: (i) identify and segregate all funds held by SPP with respect to the Defaulting Market

Participant; (ii) recover the Unpaid Obligation by drawing upon the entire amount of collateral provided by

the Defaulting Market Participant, provided that any amount of the Unpaid Obligation not paid by such draw

shall continue to be an Unpaid Obligation; (iii) seek to recover the Unpaid Obligation from any guarantor of

the Defaulting Market Participant’s obligations; (iv) seek to exercise other remedies under the Credit Support

Documents provided by the Defaulting Market Participant; and (v) pursue other available remedies for

Defaults, including, without limitation, initiating a filing with FERC to terminate the Service Agreement of

the Defaulting Market Participant. SPP may deviate from steps (i) through (v), including omission of steps

and use of other measures as SPP may determine, in its discretion, are appropriate to maximize collection,

minimize collection costs, and produce cost effective collection efforts relative to, for example, the likelihood

of collection of the Unpaid Obligation.

Any amounts received by SPP pursuant to this Section V.C.1. of this Attachment L shall be applied to

reduce the amount of the Unpaid Obligation if those amounts are received prior to the issuance of a notice to

cure the Default. After the notice to cure is issued, Section V.C.2. of this Attachment L will apply.

2. Payments by Defaulting Market Participants of Unpaid Obligations. This Section V.C.2

applies to amounts invoiced to Market Participants for Market Services only.

After SPP has declared an Unpaid Obligation, SPP will send the Defaulting Market Participant a

notice to cure the Default as specified in Section 8.3 of the SPP Credit Policy. The Defaulting Market


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Participant must take the following steps to cure its Default: (i) pay all unpaid obligations to SPP, including,

without limitation, the amount of the Unpaid Obligation, interest, and enforcement and collection costs; and

(ii) meet the creditworthiness requirements of SPP, including, without limitation, any additional financial

assurances that may be required by SPP given the Defaulting Market Participant’s prior Default.

In the event the Defaulting Market Participant attempts to cure its Default by making partial payment

of the Unpaid Obligation, the partial payment shall not be applied to reduce the Unpaid Obligation but shall

instead be segregated from other SPP funds. Such segregated partial payments shall accumulate until the full

amount of the Unpaid Obligation is cured by a series of two or more partial payments. In the event SPP

determines that the Unpaid Obligation is uncollectible pursuant to Section V.C.2. of this Attachment L and is

an Uncollectible Obligation, the segregated partial payments along with any interest shall be applied using the

formula set forth in Section V.C.3.b. of this Attachment L, and the funds will be distributed as described in

Section V.C.3.c. of this Attachment L. Section V.E. of this Attachment L applies if a Market Participant

provides partial payments for Unpaid Obligations of both Market Services and Transmission Services.

In the event the full amount of the Unpaid Obligation is paid by the Defaulting Market Participant

prior to SPP declaring the Uncollectible Obligation, those revenues will be distributed to Market Participants

in the same percentages as the previous reduction of revenues associated with the Unpaid Obligation.

3. Uplift. This Section V.C.3 of Attachment L applies to amounts invoiced to Market

Participants for Market Services only. Ninety (90) days after declaring an invoice an Unpaid Obligation or

sooner, should by any means the Market Participant’s Service Agreement be terminated, SPP will declare that

Unpaid Obligation an Uncollectible Obligation. SPP shall proceed to recover the Uncollectible Obligation

from all Market Participants who conducted business in the market during the period covered by the

invoice(s) associated with the Uncollectible Obligation(s) on a pro rata basis, with the amount of the

Uncollectible Obligation adjusted by the amount of the Unpaid Obligation recovered pursuant to Section

V.C.1. of this Attachment L and partial payments pursuant to Sections V.C.2. and V.E. of this Attachment L.

a. Eligibility for Share of Uncollectible Obligation.

The Uncollectible Obligation shall be allocated by SPP to all Non-Defaulting Market Participants that

had been invoiced by SPP during the same period of time as the unpaid invoice(s) of the Market Participant

whose Unpaid Obligation has been declared an Uncollectible Obligation.

b. Uncollectible Obligation Allocation Methodology.


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The formula below is the basis for allocating the Uncollectible Obligation to all Non-Defaulting

Market Participants who conducted business in the market during the time covered by the invoice(s)

containing the Uncollectible Obligation(s).

% Loss for MPA

=

MPA

Market Charges +

Market Credits in weekly invoicing cycle/

MPALL

(Market Charges + Market Credits) in weekly invoicing cycle.

Loss Obligation of MPA

= ((% Loss for MPA) x $ Amt of Uncollectible Obligation) minus

(-) (Reduction of Payments + Pro rata share of partial payment(s))

Where:

MP = Market Participant

Market Charges = The absolute value of all charge amounts associated with

invoices for Market Services.

Market Credits = The absolute value of all credit amounts associated with invoices

for Market Services.

MPALL

= All Market Participants other than Market Participants with Uncollectible

Obligations.

Reduction of Payment = The amount of the Unpaid Obligation originally assessed

to Market Participant as described in Section V.C.1. above.

Pro rata share of partial payment(s) = Any partial payments received during cure

period as described in Section V.C.2.

All individual charge amounts and all individual credit amounts invoiced for Market Services shall be

included in the calculation of Market Charges and Market Credits. The Market Charges and Market Credits

of Market Participants with Uncollectible Obligations will not be included in the calculation of the percentage

of the loss to be allocated to all Non-Defaulting Market Participants that had been invoiced by SPP during the

same period of time as the unpaid invoice(s) of the Defaulting Market Participant whose Unpaid Obligation

has been declared an Uncollectible Obligation.


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c. Application of Recovered Uncollectible Obligation.

Any funds that are attributable to an Uncollectible Obligation that are recovered by SPP (other than

amounts recovered by the uplift of the Uncollectible Obligations) after the Uncollectible Obligation has been

uplifted pursuant to Section V.C.3.b. of this Attachment L, shall first be applied to satisfy outstanding costs of

enforcement and collection of the Unpaid Obligation or Uncollectible Obligation, and any other amount due

to SPP under the Tariff or any other agreements. Any remaining funds attributable to an uplifted

Uncollectible Obligation, together with any remaining interest and late charges collected with respect to the

uplifted Uncollectible Obligation, shall be distributed pro rata to the Non-Defaulting Market Participants,

using the same formula specified under Section V.C.3.b. of this Attachment L to whom the Uncollectible

Obligation was uplifted and who satisfied their obligation to pay the uplifted Uncollectible Obligation.

D. Procedures for Non-Payment of Amounts Invoiced Pursuant to Section 7 of the Tariff

1. The following procedures apply to a Defaulting Market Participant with respect to defaults of

amounts invoiced pursuant to Section 7 of the Tariff. (With respect to defaults of amounts invoiced for

Market Services, see Section V.C. of this Attachment L.) Transmission Owners and customersUpgrade

Sponsors due revenue credits will receive revenues in accordance with Sections I and V.A. of this Attachment

L.

At such time as SPP concludes that SPP does not reasonably expect payment in full of an unpaid past

due amount, which SPP may conclude as early as within 1 day of the due date, then SPP shall declare such

unpaid past due amount to be an Unpaid Obligation. SPP will notify Market Participants of the declaration of

an Unpaid Obligation by posting a notice to the OASIS. Such notification will identify the Defaulting Market

Participant, the amount of the Unpaid Obligation, the applicable month of service for which the Defaulting

Market Participant was initially invoiced the Unpaid Obligation, and the future billing month in which SPP

will, because of the Unpaid Obligation, reduce the revenues to be paid to all Transmission Owners and

customersUpgrade Sponsors due revenue credits who received payments during the time covered by the

invoice containing the Unpaid Obligation.

SPP will then make reduced payments on the corresponding payout date to the Transmission Owners

and customersUpgrade Sponsors due revenue credits receiving revenues for invoices associated with the

Unpaid Obligation. A payment to a Transmission Owner or customerUpgrade Sponsor due revenue credits

will be reduced in amount equal to such Transmission Ownerentity’s pro rata share of the Unpaid Obligation.


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Upon the earliest feasible date after declaring an Unpaid Obligation, SPP will take the following

steps: (i) identify and segregate all funds held by SPP with respect to the Defaulting Market Participant; (ii)

recover the Unpaid Obligation by drawing upon the entire amount of collateral provided by the Defaulting

Market Participant, provided that any amount of the Unpaid Obligation not paid by such draw shall continue

to be an Unpaid Obligation; (iii) seek to recover the Unpaid Obligation from any guarantor of the Defaulting

Market Participant’s obligations; (iv) seek to exercise other remedies under the Credit Support Documents

provided by the Defaulting Market Participants; and (v) pursue other available remedies for Defaults,

including, without limitation, initiating a filing with FERC to terminate the Service Agreement of the

Defaulting Market Participant. SPP may deviate from steps (i) through (v), including omission of steps and

use of other measures as SPP may determine, in its discretion, are appropriate to maximize collection,

minimize collection costs, and produce cost effective collection efforts relative to, for example, the likelihood

of collection of the Unpaid Obligation. Any amounts received by SPP pursuant to this Section V.D.1. of this

Attachment L shall be applied to reduce the amount of the Unpaid Obligation if those amounts are received

prior to the issuance of a notice to cure the Default. After the notice to cure is issued, Section V.D.2. of this

Attachment L will apply.

2. Payments by Defaulting Market Participants of Unpaid Obligations. This Section V.D.2

applies to amounts invoiced to Market Participants pursuant to Section 7 of the Tariff only.

After SPP has declared an Unpaid Obligation, SPP will send the Defaulting Market Participant a

notice to cure their Default as specified in Section 8.3 of the SPP Credit Policy. The Defaulting Market

Participant must take the following steps to cure its Default: (i) pay all Unpaid Obligations to SPP, including,

without limitation, the amount of the Uncollectible Obligation, interest, and enforcement and collection costs;

and (ii) meet the creditworthiness requirements of SPP, including, without limitation, any additional financial

assurances that may be required by SPP given the Defaulting Market Participant’s prior Default.

In the event the Defaulting Market Participant attempts to cure its Default by making partial

payments, rather than apply a partial payment to the Unpaid Obligation, SPP shall segregate such partial

payments from other funds. Such segregated partial payments shall accumulate until the full amount of the

Unpaid Obligation is cured by a series of two or more partial payments. In the event that the Defaulting

Market Participant does not satisfy the entire Unpaid Obligation in full within 90 days of Default, SPP shall

remit to the Transmission Owners the segregated partial payments in the same percentage as the amount each


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Transmission Owner was originally owed of the original unpaid invoice. This remittance will occur 90 days

after the date of Default or sooner should by any means the Defaulting Market Participant’s Service

Agreement be terminated.

In the event the full amount of the Unpaid Obligation is paid by the Market Participant within 90 days

of Default, those revenues will be distributed in the same percentages as the previous reduction of revenues

associated with the Unpaid Obligation.

3. Application of Additional Recovered Unpaid Obligation

Any funds that are attributable to an Unpaid Obligation that are recovered by SPP subsequent to the

ninety (90) day period after SPP declares the Unpaid Obligation pursuant to Section V.D.1. of this

Attachment L, shall first be applied to satisfy outstanding costs of enforcement and collection of the Unpaid

Obligation, and any other amount due to SPP under the Tariff or any other agreements. Any remaining funds

attributable to such an Unpaid Obligation, together with any remaining interest and late charges collected

with respect to the Unpaid Obligation, shall be distributed pro rata to the Transmission Providers and

customers due revenue creditsUpgrade Sponsors, using the same procedure specified under Section V.D.2. of

this Attachment L.

E. Default of Both Market Service and Tariff Section 7 Invoices

In the event a Market Participant simultaneously Defaults on invoices for Market Services and Tariff

Section 7 charges, and notices to cure have been sent as specified in Section 8.3 of the SPP Credit Policy and

if the Defaulting Market Participant has attempted to cure its Defaults by making partial payments to the

Unpaid Obligations, SPP shall segregate such partial payment(s) from other funds. Such segregated partial

payments shall accumulate until the full amount for all Unpaid Obligations is cured by a series of two or more

partial payments. In the event that the Defaulting Market Participant does not satisfy the entire Unpaid

Obligation in full within 90 days of the Default, SPP shall remit to the Transmission Owners impacted by

Section V.D. of this Attachment L and to Market Participants impacted by Section V.C. of this Attachment L

the segregated amount pursuant to Sections V.D. and V.C., respectively. To the extent the Defaulting Market

Participant has identified the invoice(s) with which such partial payments were associated or to the extent

SPP reasonably identifies such invoice(s), such partial payments shall be distributed in accordance with the

provisions for the type of service identified for the associated invoice(s). In the event the Defaulting Market

Participant has not indicated the invoice(s) that partial payments are directed to and SPP does not reasonably


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determine which invoice(s) are associated with such partial payments, SPP shall remit to all Market

Participants the percentage of such partial payments as the amount they were originally owed of the combined

unpaid invoices. This remittance will occur 90 days after the date of Default or sooner should by any means

the Market Participant’s Service Agreement be terminated.

6 VI. Exception to the Provisions of Section II.C of this Attachment L

Pursuant to the Agreement of the Southwest Power Pool Transmission Owners and Southwest Power

Pool for the Upgrade for the LaCygne to Stilwell 345 kV Transmission Line (“LaCygne-Stilwell

Agreement”) submitted to the FERC on February 20, 2003 in Docket No. ER03-547, and conditionally

accepted by the Commission in an order dated April 10, 2003, the Transmission Provider and the

Transmission Owners agreed to create an exception to the provisions of this attachment L for the sole purpose

of distributing revenues associated with upgrades to the LaCygne to Stilwell 345 kV line, as set forth in the

LaCygne-Stilwell Agreement, which has been incorporated into this Attachment L.

[BGF3]

Attachment Z1

V. Cost Recovery for Service Upgrades

a. The cost of Service Upgrades shall be recovered in accordance with this Section. For Point-to-

Point Service, the levelized monthly revenue requirement derived from the cost allocation

process shall be compared to the charge applicable for each request under the transmission

access charges of Schedule 7, Sections 1 and 7; and each customer shall be required to pay the

higher of the total monthly transmission access charges or the monthly revenue requirement

associated with the directly assigned portion of the Service Upgrade, if any. For Network

Integration Transmission Service, the charge shall be a direct assignment charge pursuant to

Schedule 9, Section 4; and each customer will be required to pay the monthly revenue

requirement associated with the directly assigned portion of the Service Upgrade, if any, in

addition to the total monthly transmission access charges applicable under Schedule 9,

Sections 1 and 6. Cost recovery from a customer of the revenue requirement for the directly

assigned portion of a Service Upgrade allocated to such customer will be accomplished over


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the duration of the customer’s transmission service request.

b. For Service Upgrades associated with Designated Resources, to the extent a waiver is not

granted pursuant to Section III of Attachment J, the cost in excess of the Safe Harbor Cost

Limit of Service Upgrades associated with Designated Resources shall be recovered in

accordance with this Section VVI. Transmission Customers paying the above charges may

receive credits in accordance with Attachment Z2 of this Tariff.

c. The following process shall be used to allocate Directly Assigned Upgrade Costs in order to

minimize the total number of new Creditable Upgrades created out of an Aggregate

Transmission Service Study.

1. Identify each Network Upgrade that is not ineligible for one hundred percent (100%)

base plan funding and will become a Creditable Upgrade and each existing Creditable

Upgrade that is impacted by theany transmission service requests in the current

Aggregate Transmission Service Study.

2. Any Directly Assigned Upgrade Costs associated with a transmission service request

shall be Aallocated to the NetworkCreditable Upgrade(s) identified in step

oneaccordance with Section V.c.1 of this Attachment Z1 the Directly Assigned

Upgrade Costs from each transmission service request up to the maximum amount of

upgrade costs allocated to thethe transmission service request for such

NetworkCreditable Upgrade(s). in the current Aggregate Transmission Service Study.

3. For each transmission service request, aAny Directly Assigned Upgrade Costs

associated with a transmission service request that are not allocated in accordance with

Section V.c.2 of this Attachment Z1step two shall be allocated to the upgrades

associated with that transmission service request so as to: i) minimize the number of

new Creditable Upgrades arising from the current Aggregate Transmission Service

Study; and ii) when possible, allocate any remaining Directly Assigned Upgrade Costs


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to the an associated Network Upgrade(s) required by that request that which is

affected by the most transmission service requests.

Attachment Z2

I. Creditable Upgrades

A. Any Network Upgrade which was paid for, in whole or part, through revenues collected from a

Transmission Customer, Network Customer, or Generation Interconnection Customer through

a Directly Assigned Upgrade Costs shall be considered to be a Creditable Upgrade.

B. A Sponsored Upgrade is not automatically a Creditable Upgrade nor is it automatically eligible

to receive revenue credits since Sponsored Upgrades are not built to satisfy a need identified

by the Transmission Provider. For a Sponsored Upgrade to become a Creditable Upgrade, the

Transmission Provider must determine that the Sponsored Upgraded is needed as part of the

Transmission System. as a result of an ITP Near Term Assessment as described in Attachment

O, an Aggregate Transmission Service Study, or a Generation Interconnection Request. At the

time the Sponsored Upgrade becomes a Creditable Upgrade, the Transmission Provider shall

determine the direction of flow which caused the Creditable UpgradeSponsored Upgrade to be

needed and the capability in the opposite direction.

C. A Creditable Upgrade shall cease being a Creditable Upgrade when: (1) either the facility is

permanently removed from service, (2) all the Upgrade Sponsors have been fully

compensated, or (3) the costs have been fully included in rates in accordance with Section III

of this Attachment Z2.

6.8 MOVED TO Z2, SEC II I. Revenue Crediting

Transmission Customers paying Directly Assigned Upgrade Costs for Service Upgrades or that are in

excess of the Safe Harbor Cost Limit for Network Upgrades associated with new or changed Designated

Resources and Project Sponsors paying Directly Assigned Upgrade Costs for Sponsored Upgrades shall

receive revenue credits in accordance with this Attachment Z2. Generation Interconnection Customers paying

for Network Upgrades shall receive credits for new transmission service using the facility as specified in

Attachment Z1. The credit amount shall be recovered, with interest calculated in accordance with 18 CFR


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§35.19a(a)(2)(ii), from new transmission service using the facility as defined below until the credit due is

zero. The provisions of this Attachment Z2 are applicable to Transmission Owners subject to the provisions

of Section 39.1 of this Tariff.

1. New Point-To-Point Transmission Service: Revenues from new Point-to-Point Transmission

Service that could not be provided but for the new Network Upgrade will be included for

crediting purposes. For each new point-to-point reservation that could not be provided but for

the new Network Upgrade, made after (i) the commitment for such new Network Upgrade by a

Project Sponsor or (ii) the request causing the need for such new Network Upgrade, with

service commencing after or extending beyond the date the facility upgrade is completed, the

Transmission Customer or Project Sponsor shall receive a portion of the transmission service

charge equal to the positive response factor of such new reservation on the new Network

Upgrade times the portion of the new reservation capacity that could not be provided but for

the new Network Upgrade times the rate applicable to such new reservation.

For crediting purposes, the Transmission Provider shall perform a one-time calculation of the

response factor of such new reservation on the new Network Upgrade. This allocation from

new service shall continue until the Transmission Customer or Project Sponsor has been fully

compensated for all charges paid in excess of the normally applicable transmission access

charges pursuant to Schedules 7, 8 or 9 and 11.

2. New Network Integration Transmission Service and Service to Transmission Owners

Taking Service Under Non-Rate Terms and Conditions: Credits will be provided for (i)

new Long-Term Network Integration Transmission Service, and (ii) new transmission service

taken under the non-rate terms and conditions of this Tariff by Transmission Owners subject to

Section 39.1 of this Tariff, that could not be provided but for the new Network Upgrade to

accommodate designation of new Network Loads or Transmission Owner’s(s’) loads, new

Designated Resources or increases in the designation of existing Designated Resources above

previously designated levels. Credits shall be determined based upon the subsequent


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incremental use of the Network Upgrade for such new or increased Network Load or

Transmission Owner load or Network Resource.

The annual credit amount to be billed and paid monthly by a Network Customer, or included

in rates, for each such new or increased use shall be the product of the annual revenue

requirement associated with the Network Upgrade and the ratio of the incremental impact

placed on the Network Upgrade by each such new or increased use to the total of the

incremental impacts placed on the Network Upgrade by all currently and previously identified

incremental Network Integration Transmission Service and Long-Term Firm Point-To-Point

Transmission Service uses of the Network Upgrade. For the calculation of such credits to be

given to a Project Sponsor paying Directly Assigned Upgrade Costs associated with the

Network Upgrade, the incremental use assigned to such Project Sponsor shall be the capacity

of the Network Upgrade minus all currently and previously identified incremental Network

Integration Transmission Service and Long-Term Firm Point-To-Point Transmission Service

uses. The cost of such credit amount shall be paid by the Network Customer making such new

or increased use of the Network Upgrade, or included in rates pursuant to the Base Plan and

Balanced Portfolio funding formulas in Attachment J, in addition to all other applicable

charges under this Tariff.

a. For use of Service Upgrades, such credits shall be given to the original Transmission

Customer paying Directly Assigned Upgrade Costs for the Service Upgrade and to all

previously identified incremental Network Integration Transmission Service and Long-

Term Firm Point-To-Point Transmission Service uses, including prior incremental

Network Integration Transmission Service uses that resulted in the obligation to pay

credits. The grant of such credits shall be in proportion to the fraction of the annual

revenue requirement associated with the Network Upgrade for which they are

responsible, net of any credits previously applied.

b. For use of Sponsored Upgrades, such credits to a Project Sponsor paying Directly


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Assigned Upgrade Costs for a Sponsored Upgrade shall be given first to the Project

Sponsor from new transmission service using the Sponsored Upgrade until the credit

due to the Project Sponsor for that Sponsored Upgrade is zero. Then such credits shall

be given to all previously identified incremental Network Integration Transmission

Service and Long-Term Firm Point-To-Point Transmission Service uses, including

prior incremental Network Integration Transmission Service uses that resulted in the

obligation to pay credits. The grant of such credits shall be in proportion to the fraction

of the annual revenue requirement associated with the Network Upgrade for which they

are responsible, net of any credits previously applied.

3. Power Controlling Devices:

a. New Network Integration Transmission Service: Credits will be provided for new

Long-Term Network Integration Transmission Service using the device in either direction to

accommodate designation of new Network Loads, new Designated Resources or increases in

the designation of existing Designated Resources above previously designated levels. Credits

shall be determined based upon the subsequent additional incremental use of the device by any

such new or increased use.


in rates, for each such new or increased use shall be the product of the annual revenue

requirement associated with the device and the ratio of the incremental impact placed on the

device by each such new or increased use to the total of the incremental impacts placed on the

device by all currently and previously identified incremental Network Integration

Transmission Service and Long-Term Firm Point-To-Point Transmission Service uses of the

device in both directions. For the calculation of such credits to be given to a Project Sponsor

paying Directly Assigned Upgrade Costs associated with the device, the incremental use

assigned to such Project Sponsor shall be the capacity of the device in both directions minus

all currently and previously identified incremental Network Integration Transmission Service

and Long-Term Firm Point-To-Point Transmission Service uses of the device in both


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directions. The cost of such credit amount shall be paid by the Network Customer making

such new or increased use of the device, or included in rates pursuant to the Base Plan and



i. For use of Service Upgrades, such credits shall be given to the original Transmission

Customer paying Directly Assigned Upgrade Costs for the Service Upgrade and to all

previously identified incremental Network Integration Transmission Service and Long-

Term Firm Point-To-Point Transmission Service uses, including prior incremental

Network Integration Transmission Service uses that resulted in the obligation to pay


revenue requirement associated with the Network Upgrade for which they are

responsible, net of any credits previously applied.

ii. For use of Sponsored Upgrades, such credits to a Project Sponsor paying Directly

Assigned Upgrade Costs for a Sponsored Upgrade shall be given first to the Project

Sponsor from new transmission service using the Sponsored Upgrade until the credit

due the Project Sponsor for that Sponsored Upgrade is zero. Then such credits shall be

given to all previously identified incremental Network Integration Transmission



obligation to pay credits. The grant of such credits shall be in proportion to the fraction

of the annual revenue requirement associated with the Network Upgrade for which they

are responsible, net of any credits previously applied.

b. New Point-To-Point Transmission Service: Crediting for Long-Term Firm Point-To-

Point Transmission Service using the power controlling device in either direction shall be a

portion of the transmission service charge equal to the positive response factor of such new

reservation on the device times the new reservation capacity times the rate applicable to such


Page 43 of 53

new reservation less any revenue credits applicable to other Network Upgrades on the

transmission path. Crediting for Short-Term Firm Point-To-Point Transmission Service and

Non-Firm Point-To-Point Transmission Service using the device in either direction shall be the

percent usage of the total revenue received by the Transmission Provider that is not required

for other transmission funding obligations.

II. Revenue Crediting

An Upgrade Sponsor shall be eligible to receive revenue credits in accordance with this Attachment

Z2. The Directly Assigned Upgrade CostsTransmission Customers paying Directly Assigned Upgrade Costs

for Service Upgrades or that are in excess of the Safe Harbor Cost Limit for Network Upgrades associated

with new or changed Designated Resources and Project Sponsors paying Directly Assigned Upgrade Costs

for Sponsored Upgrades shall receive revenue credits in accordance with this Attachment Z2. Generation

Interconnection Customers paying for Network Upgrades shall receive credits for new transmission service

using the facility as specified in Attachment Z1. The credit amount shall be are recoverableed, with interest

calculated in accordance with 18 CFR §35.19a(a)(2)(ii), from new transmission service using the facility as

defined below until the amount owed the Upgrade Sponsorcredit due is zero. The provisions of this

Attachment Z2 are applicable to Transmission Owners subject to the provisions of Section 39.1 of this Tariff.

A1. New Point-To-Point Transmission Service:

Revenues from new Point-to-Point Transmission Service that could not be provided but for the

Creditablenew Network Upgrade(s) will be used, in whole or in part,included for crediting

purposes. For each new point-to-point reservation that could not be provided but for one or

more Creditable Upgradesthe new Network Upgrade, made after (i) the commitment for such

Creditablenew Network Upgrade by an ProjectUpgrade Sponsor or (ii) the request causing the

need for such Creditablenew Network Upgrade, with service commencing after or extending

beyond the date the Creditablefacility uUpgrade is completed, the UpgradeTransmission

Customer or Project Sponsor for each affected Creditable Upgrade shall receive a portion of

the transmission service charge equal to the positive response factor of such new reservation

on the Creditablenew Network Upgrade times the portion of the new reservation capacity that


Page 44 of 53

could not be provided but for the Creditablenew Network Upgrade times the rate applicable to

such new reservation.

For crediting purposes, the Transmission Provider shall perform a one-time calculation of the

response factor of such new reservation on the Creditablenew Network Upgrade. This

allocation from new service shall continue until the UpgradeTransmission Customer or Project

Sponsor has been fully compensated for all charges paid in excess of the normally applicable

transmission access charges pursuant to Schedules 7, 8 or 9 and 11.

RTWG Reviewed – March 20, 2013

B2. New Network Integration Transmission Service and Service to Transmission Owners

Taking Service Under Non-Rate Terms and Conditions:

Revenue for Credits will be provided fromfor (i) new Long-Term Network Integration

Transmission Service, and (ii) new transmission service taken under the non-rate terms and

conditions of this Tariff by Transmission Owners subject to Section 39.1 of this Tariff, that

could not be provided but for one or more Creditable Upgradesthe new Network Upgrade to

accommodate designation of new Network Loads or Transmission Owner’s(s’) loads, new

Designated Resources or increases in the designation of existing Designated Resources above

previously designated levels. Credits shall be determined based upon the subsequent

incremental use of each affected Creditablethe Network Upgrade for such new or increased

Network Load or Transmission Owner load or Network Resource.


in rates, for each such new or increased use of a Creditable Upgrade shall be the product of the

total [BGF4]annual revenue requirement associated with the CreditableNetwork Upgrade and the

ratio of the incremental impact placed on the CreditableNetwork Upgrade by each such new or

increased use to the total of the incremental impacts placed on the CreditableNetwork Upgrade

by all currently and previously identified incremental Network Integration Transmission

Service and Long-Term Firm Point-To-Point Transmission Service uses of the

CreditableNetwork Upgrade.


Page 45 of 53

For the calculation of such credits to be given to an ProjectUpgrade Sponsor for subsequent

use of a Creditablepaying Directly Assigned Upgrade Costs associated with the Network

Upgrade, the incremental use assigned to such ProjectUpgrade Sponsor shall be the capacity of

the CreditableNetwork Upgrade minus all currently and previously identified incremental

Network Integration Transmission Service and Long-Term Firm Point-To-Point Transmission

Service uses. The cost of such credit amount shall be paid by the Network Customer making

such new or increased use of the CreditableNetwork Upgrade, or included in rates pursuant to

the Base Plan and Balanced Portfolio funding formulas in Attachment J, in addition to all other

applicable charges under this Tariff.

1a. For use of Creditable Upgrades which are also Service Upgrades, such credits shall be

given to the original Transmission Customer paying Directly Assigned Upgrade

Sponsor Costs for the Service Upgrade and to all previously identified Upgrade

Sponsors from incremental Network Integration Transmission Service and Long-Term

Firm Point-To-Point Transmission Service uses, including prior incremental Network

Integration Transmission Service uses that resulted in the obligation to pay credits.

The grant of such credits shall be in proportion to the fraction of the annual revenue

requirement associated with the CreditableNetwork Upgrade for which each Upgrade

Sponsor isthey are responsible, net of any credits previously applied.

2b. For use of Sponsored Upgrades that qualify as Creditable Upgrades, such revenue

credits to a Project Sponsor paying Directly Assigned Upgrade Costs for a Sponsored

Upgrade shall be given first to the Project Sponsor from new transmission service

using the CreditableSponsored Upgrade until the credit due to the Project Sponsor for

that CreditableSponsored Upgrade is zero. Then such revenue credits shall be given to

all other Upgrade Sponsor(s) of the Creditable Upgrade. The grant of such credits

shall be in proportion to the fraction of the annual revenue requirement associated with

the Creditable Upgrade for which theyeach Upgrade Sponsor are is responsible, net of

any credits previously applied.


Page 46 of 53

3. For use of Creditable Upgrades associated with a Generator Interconnection

Agreement, revenue credits from new transmission service using the Creditable

Upgrade shall be given firstidentified incremental Network Integration Transmission



obligation to the Generation Interconnection Customer(s) associated with the

Creditable Upgrade until the credit due is zero. Then such revenue credits shall be

given to all other Upgrade Sponsors of the Creditable Upgrade.pay credits. The grant

of such credits shall be in proportion to the fraction of the annual revenue requirement

associated with the CreditableNetwork Upgrade for which theyeach Upgrade Sponsor

are is responsible, net of any credits previously applied.

C3. Power Controlling Devices:

1 a. New Network Integration Transmission Service: Credits will be provided for new

Long-Term Network Integration Transmission Service using the device in either direction to

accommodate designation of new Network Loads, new Designated Resources or increases in

the designation of existing Designated Resources above previously designated levels. Credits

shall be determined based upon the subsequent additional incremental use of the device by any

such new or increased use.

The annual credit amount to be be billed and paid monthly by a Network Customer, or

included in rates, for each such new or increased use of a Creditable Upgrade shall be the

product of the annual revenue requirement associated with the device and the ratio of the

incremental impact placed on the device by each such new or increased use to the total of the

incremental impacts placed on the device by all currently and previously identified incremental

Network Integration Transmission Service and Long-Term Firm Point-To-Point Transmission

Service uses of the device in both directions.


Page 47 of 53

For the calculation of such credits to be given to an ProjectUpgrade Sponsor for subsequent

use ofpaying Directly Assigned Upgrade Costs associated with the device, the incremental use

assigned to such ProjectUpgrade Sponsor shall be the capacity of the device in both directions

minus all currently and previously identified incremental Network Integration Transmission

Service and Long-Term Firm Point-To-Point Transmission Service uses of the device in both

directions. The cost of such credit amount shall be paid by the Network Customer making

such new or increased use of the device, or included in rates pursuant to the Base Plan and



i. For use of Creditable Upgrades which are also Service Upgrades, such credits shall be

given to the original Transmission Customer paying Directly Assigned Upgrade

Sponsor Costs for the Service Upgrade and to all previously identified Upgrade

Sponsors from incremental Network Integration Transmission Service and Long-Term

Firm Point-To-Point Transmission Service uses, including prior incremental Network

Integration Transmission Service uses that resulted in the obligation to pay credits.

The grant of such credits shall be in proportion to the fraction of the annual revenue

requirement associated with the Creditable Network Upgrade for which each Upgrade

Sponsor isthey are responsible, net of any credits previously applied.

ii. For use of Sponsored Upgrades that qualify as Creditable Upgrades, such credits to a

Project Sponsor paying Directly Assigned Upgrade Costs for a Sponsored Upgrade

shall be given first to the Project Sponsor from new transmission service using the

CreditableSponsored Upgrade until the credit due the Project Sponsor for that

CreditableSponsored Upgrade is zero. Then such credits shall be given to other

Upgrade Sponsor(s) of Then such credits shall be given to all previously identified

incremental Network Integration Transmission Service and Long-Term Firm Point-To-

Point Transmission Service uses, including prior incremental Network Integration

Transmission Service uses that resulted in the Creditable Upgrade.obligation to pay


Page 48 of 53


revenue requirement associated with the Creditable Upgrade for which theyeach

Upgrade Sponsor areis responsible, net of any credits previously applied.

iii. For use of Creditable Upgrades associated with a Generator Interconnection

Agreement, credits from new transmission service using the Creditable Upgrade shall

be given first to the Generation Interconnection Customer(s) associated with the

Creditable Upgrade until the credit due is zero. Then such credits shall be given to all

other Upgrade Sponsor(s) of the Creditable Upgrade. The grant of such credits shall be

in proportion to the fraction of the annual revenue requirement associated with the

CreditableNetwork Upgrade for which theyeach Upgrade Sponsor areis responsible,

net of any credits previously applied.

b2. New Point-To-Point Transmission Service:

Crediting for Long-Term Firm Point-To-Point Transmission Service using the power

controlling device in either direction shall be a portion of the transmission service

charge equal to the positive response factor of such new reservation on the device times

the new reservation capacity times the rate applicable to such new reservation less any

revenue credits applicable to other Network Upgrades on the transmission path.

Crediting for Short-Term Firm Point-To-Point Transmission Service and Non-Firm

Point-To-Point Transmission Service using the device in either direction shall be the

percent usage of the total revenue received by the Transmission Provider that is not

required for other transmission funding obligations.

6.9 II. Future Roll-In

When a facility upgrade being paid for pursuant to the provisions of Attachment Z1 to this Tariff is

rolled into the revenue requirements used for the development of generally applicable transmission service

rates, the Transmission Owner that constructed the facility upgrade shall pay the remaining balance of each


Page 49 of 53

customer’s unrecovered payments described in Sections VI.A and VI.B of Attachment Z1 that are applicable

to that facility upgrade. All customers who have upgraded facilities and have remaining balances subject to

cost recovery pursuant to Section VI of Attachment Z1, shall be paid in full. The customer shall continue to

pay the charges specified in the customer’s transmission service agreement for the transmission service

initially reserved.

6.8 III. Future Inclusion of Creditable Upgrades Into Rates

All or part of a Creditable Upgrade may be included in the revenue requirements used for the

development of generally applicable transmission service rates in accordance with this Section III of

Attachment Z2.

A. Qualifications

Each year as part of the ITP Near Term Assessment described in Section III of Attachment O,

the Transmission Provider will evaluate each Creditable Upgrade to determine if the cost of

the upgrade is eligible for inclusion in the generally applicable transmission rates. In order for

a Creditable Upgrade to be included in rates, loading on the Creditable Upgrade in the summer

peak planning model for the first year of the ITP Near Term Assessment must be greater than

or equal to: (i) 30% of the added capacity of the Creditable Upgrade under normal system

conditions; and (ii) 65% of the added capacity of the Creditable Upgrade under a single

contingency reliability analysis.

B. Buy out amount

When eligibility is established, the Transmission Provider will offer to pay the Upgrade

Sponsor an amount in lieu of revenue credits as described below:

1. If the Upgrade Sponsor paid for the Network Upgrade with a single payment of the

engineering and construction cost, the Transmission Provider will offer to pay the

Upgrade Sponsor the lesser of the revenue credits the Upgrade Sponsor is eligible to

receive in accordance with Section II of this Attachment Z2 or the depreciated book

value of the upgrade[LC5].


Page 50 of 53

2. If the Upgrade Sponsor paid, or is paying, the net present value of the annual revenue

requirements of the Creditable Upgrade over a period of time, the Transmission

Provider will offer to pay the Upgrade Sponsor the lesser of the following:

a. The remaining revenue credits the Upgrade Sponsor is eligible to receive;

b. The Net Plant value (or depreciated book value) of the facility; or

c. The greater of:

i. The net present value (“NPV”) of the benefits received by the region

between the in-service date and the buy-out date, which shall be

calculated by determining the NPV of the yearly differences between

the payments made by the Upgrade Sponsor and the annual transmission

revenue requirements of the Creditable Upgrade and the payments made

by the Upgrade Sponsor;[LC6] or

ii. The NPV[LC7] of the estimated future credits for the remainder of the life

of the Network Upgrade assuming that the future annual credits shall be

equal to the historical annual average credits paid to the Upgrade

Sponsor. For purposes of this calculation the life of the Network

Upgrade shall be 40 years.

C. Accepting an Offer

Within ninety (90) days, the Upgrade Sponsor may accept the offer from the Transmission

Provider. Ootherwise, the Upgrade Sponsor shall continue to receive credits in accordance

with this Attachment Z2. If the Upgrade Sponsor elects to accept the offer, the Transmission

Provider will pay the Upgrade Sponsor in the following manner:

1. For a Creditable Upgrade, or portions of a Creditable Upgrade, paid for with an upfront

payment:

a. The Transmission Provider shall collect the amount of the offer from the


Page 51 of 53

Transmission Owner which owns the Creditable Upgrade. At its sole

discretion, tThe Transmission Owner mayshall increase its book valueamount

for the Creditable Upgrade by anthe amount up to the payment amountof the

payment.[LC8]

b. The Transmission Provider shall pay the Upgrade Sponsor the amount agreed to

and the portion of the Creditable Upgrade related to the Upgrade Sponsor will

cease to be a Creditable Upgrade and all revenue credits to that Upgrade

Sponsor shall cease.

2. For a Creditable Upgrade, or portion of a Creditable Upgrade, paid for through a series

of payments due to an agreement under this Tariff:

a. If the Upgrade Sponsor is still obligated to make payments due to an contract-

agreement under this Tariff with the Transmission Provider, tThe Upgrade

Sponsor will continue to make the payments,; however, the Transmission

Provider will pay the Upgrade Sponsor a credit that is exactly equal to the

Upgrade Sponsor’s payment.

b. The amount to be paid to the Upgrade Sponsor shall be collected through Base

Plan rates by increasing the amount of the ATRR in the Zone as shown in Table

1, Column 76 of Attachment H or through regional rates by increasing the

amount in Table 2, line 5 of Attachment H, as appropriate[LC9]. The amount

added to the Base Plan rates shall be capped at no more than a 5%

increase[LC10]. in a single month. If the amount owed the Upgrade Sponsor is

greater than a 5% monthly increase, then the payment to the Upgrade Sponsor

shall be made in equal monthly amounts over the shortest period of time, with

interest in accordance with 18 CFR §35.19a(a)(2)(ii), not to exceed a 5%

increase from the base ATRR in a single month[BGF11].[BGF12] The change in

either the Table 1 or Table 2 totals in Attachment H shall be reflected in the

RRR file and posted on the Transmission Provider’s website.


Page 52 of 53

b. RT

c.

Proposed Market Protocol Language Revision (Redlined) n/a


Page 53 of 53

Proposed Business Practices Language Revision (Redlined)

n/a

Proposed Criteria Language Revision (Redlined)

n/a

Revisions to Other Corporate Documents (Redlined)

n/a

Regional Tariff Working Group Meeting

Date March 21, 2013 Last Name First Name Company Email Attend

Members

Andrysik Richard LES [email protected] Phone

Cecil Walt MoPSC [email protected]

Dowling Bill Midwest Energy, Inc. [email protected]

Haner Luke Omaha Public Power District [email protected] Phone

Hestermann Tom Sunflower Electric Power Corp. [email protected] X

Janssen Rob Dogwood Energy [email protected] Phone

Kays David Oklahoma Gas & Electric [email protected] X

Kolb Lloyd Golden Spread Electric Cooperative [email protected] X

Littleton Tom OMPA [email protected] X

Liu Bernard Xcel Energy [email protected] X

Locke Charles Kansas City Power & Light

Company [email protected] X

Malone Paul NPPD [email protected] Phone

Pennybaker Robert American Electric Power [email protected] Phone

Reed Dennis Westar Energy [email protected] X

Rowland Neil Kansas Municipal Energy Agency

[email protected] X

Shields Robert Arkansas Electric Cooperative

Corporation [email protected] Phone

Tynes Keith ETEC [email protected] X

Varnell John Tenaska Power

Services [email protected] X

Warren Bary Empire District [email protected]

Williams Mitchell Western Farmers Electric

Cooperative [email protected] Phone

Wagner Nicole Southwest Power Pool [email protected] Phone

Fricano Brenda Southwest Power Pool [email protected] X

Last Name First Name Company Email

Anderson Gene OMPA

Anthony Gay Southwest Power Pool [email protected]

Binette Matt Wright & Talisman [email protected] Phone

Bumgarner Carrie Wright & Talisman [email protected]

Busbee Alfred Southwest Power Pool [email protected] Phone

Camp Wayne Accenture [email protected]

Cates Charles Southwest Power Pool [email protected]

Last Name First Name Company Email

Choate Marisa Southwest Power Pool [email protected]

Fox Kip AEP [email protected]


Gallup Terri AEP [email protected]

Gaw Steve Wind Coalition [email protected] Phone

Gay Ryan Southwest Power Pool [email protected]

Giessmann Dena Southwest Power Pool [email protected]

Greenwalt Jared Southwest Power Pool [email protected]

Hamilton Sherry Southwest Power Pool [email protected]

Harward Matt Southwest Power Pool [email protected]

Hayes Alison Southwest Power Pool [email protected]

Kelly Patti Southwest Power Pool [email protected]

Kentner Tessie Southwest Power Pool [email protected]

Lucas Antoine Southwest Power Pool [email protected]

Miller Brittney Arkansas PSC [email protected] Phone

Mitchell Ty Southwest Power Pool [email protected]

Moffet Michael Sunflower Electric Power Coop [email protected]

Mooney Catherine Southwest Power Pool [email protected]

Mosier Pat APSC [email protected]

Onnen Katy KCPL [email protected] Phone

Polk Susan Southwest Power Pool [email protected]

Purdy Steve Southwest Power Pool [email protected]

Reed Wendy Wright and Talisman [email protected]

Roach Temujin SPP [email protected]

Shumate Walt Shumate & Associates [email protected]

Simpson Carrie Southwest Power Pool [email protected]

Sundman Roy Training and Support Services, Inc. [email protected]

Thomas Mena PUC Texas State

Claborn Shawnee PUC Texas State Phone

Cade Bruce Xcel

DeBaun Tom KCC Phone

McKinnie Adam

Nickell Lanny SPP

Hocker Jeff SWPA

Dobson Alex OMPA

Hooten Brett SPP Phone

Safuto Robert Customized Energy Solutions Phone

Sidman Kara [email protected] Phone

Sunderman Derek [email protected] Phone

Samson Eric SPP Phone


RTWG Review

TRR 089 - Order 1000 Seams Agreement Tariff Revisions

March 27 – 28, 2013

I - Definitions

Interregional Planning Process: The process whereby an Interregional Projects are is

evaluated and approved for construction by the participating Interregional Planning

Regions in accordance with the procedures identified in Attachment O.

Interregional Planning Region(s): A Commission approved planning region as

identified in Section VIII of Attachment O.

Interregional Project: A Network Upgrades that hasve been approved through the

Interregional Planning Process in accordance with Attachment O.

Interruption: A reduction in non-firm transmission service due to economic reasons

pursuant to Section 14.7.

ITP Upgrades: Those upgrades identified and analyzed through the integrated

transmission planning process described in Section III of Attachment O.

Effective Date: 7/26/2010 - Docket #: ER10-1960

Page 2

Receiving Party: The entity receiving the capacity and energy transmitted by the Transmission

Provider to Point(s) of Delivery.

Region-wide Annual Transmission Revenue Requirement: The sum of the Base Plan

Region-wide Aannual Ttransmission Rrevenue Rrequirements and each Balanced

Portfolio Region-wide Annual Transmission Revenue Requirement, as set forth in

Attachment H, Table 2.

Region-wide Charge: Regional component of the charge assessed by the Transmission

Provider in accordance with Schedule 11 to recover the Region-wide Annual

Transmission Revenue Requirement.

Region-wide Load Ratio Share: Ratio of a Network Customer's or Transmission

Owner’s Resident Load in the SPP Region to the total load in the SPP Region computed

in accordance with Section II.B to Schedule 11 of this Tariff and calculated on a calendar

year basis, for the prior calendar year.

Region-wide Rate: Regional component of the rate per kW of Reserved Capacity

assessed by the Transmission Provider in accordance with Schedule 11 to recover the

Region-wide Annual Transmission Revenue Requirement.

Regional State Committee: A voluntary organization comprised of one designated

commissioner from each participating state regulatory commission having jurisdiction

over an SPP Member, established to collectively provide both direction and input on all

matters pertinent to the participation of the Members in SPP pursuant to the SPP Bylaws.

Regional Transmission Group (RTG): A voluntary organization of Transmission

Owners, transmission users and other entities approved by the Commission to efficiently

coordinate transmission planning (and expansion), operation and use on a regional (and

interregional) basis.

Page 3

Reported Load: A Market Participant's actual value of energy withdrawn from the

Transmission System at a Settlement Location, including Transmission System losses,

adjusted as described under Section 5.1 of Attachment AE to be consistent with

Settlement Area Net Load.

Reserved Capacity: The maximum amount of capacity and energy that the

Transmission Provider agrees to transmit for the Transmission Customer over the

Transmission Provider's Transmission System between the Point(s) of Receipt and the

Point(s) of Delivery under Part II of the Tariff. Reserved Capacity shall be expressed in

terms of whole megawatts on a sixty (60) minute interval (commencing on the clock

hour) basis.

Resident Load: The load specified in Section 41 of the Tariff.

Revenue Requirements and Rates File (RRR File): A file posted on the SPP website

as a reference to: (i) Annual Transmission Revenue Requirements (ATRRs) for Network

Integration Transmission Service, as referenced in Attachment H to this Tariff; (ii) Base

Plan ATRR allocation; (iii) allocation factors for Base Plan funded projects; (iv) notes on

the calculation of Base Plan ATRR amounts on a Region-wide and Zonal basis; (v)

ATRR reallocation for Balanced Portfolio projects; (vi) the calculation of Base Plan

Point-To-Point Transmission Service rates on a Region-wide and Zonal basis in

accordance with Schedule 11; and (vii) the rates for Point-To-Point Transmission Service

as referenced in Attachment T in accordance with Schedules 7 and 8.

Page 4

ATTACHMENT H

ANNUAL TRANSMISSION REVENUE REQUIREMENT FOR NETWORK

INTEGRATION TRANSMISSION SERVICE

[BGF1]SECTION I: General Requirements

1. The Zonal Annual Transmission Revenue Requirement (“Zonal ATRR”) for each

Transmission Owner for purposes of determining the charges under Schedule 9, Network

Integration Transmission Service, is specified in Column (3) Section I, of Table 1. The

Base Plan Zonal Annual Transmission Revenue Requirement (“Base Plan Zonal ATRR”)

used to determine the zonal charges under Schedule 11 for Base Plan Upgrades issued a

Notification to Construct (“NTC”) prior to June 19, 2010 is specified in Column (4)

Section I, of Table 1. The Base Plan Zonal ATRR used to determine the zonal charges

under Schedule 11 for Base Plan Upgrades issued an NTC on or after June 19, 2010 is

specified in Column (5) of Section I, Table 1. The amount of Zonal ATRR and Base

Plan Zonal ATRR that is included in Columns (3), (4), and (5) and reallocated to the

Region-wide Annual Transmission Revenue Requirement (“Region-wide ATRR”), in

accordance with Attachment J, is specified in Column (6) of Section I, Table 1.

Table 1

(See Note A below)

(1)

Zone

(2) (3)

Zonal ATRR

(4)

Base Plan

Zonal ATRR

(5)

Base

Plan

Zonal

ATRR

after

June 19,

2010

(6)

ATRR

Reallocated

to Balanced

Portfolio

Region-wide

ATRR

1 American Electric Power –West

(Total)

See Att. H tab,

posted RRR File See Att. H tab,

posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

1a

American Electric Power

(Public Service Company of

Oklahoma and Southwestern

Electric Power Company) See

Section II.3

See Att. H tab,

posted RRR File

See Att. H tab,

posted RRR

File

1b East Texas Electric Cooperative, $2,733,879

Page 5

Inc.

1c Tex-La Electric Cooperative of

Texas, Inc. $588,874

1d Deep East Texas Electric

Cooperative, Inc. $428,131

1e Oklahoma Municipal Power

Authority $748,647

1f

AEP West Transmission

Companies (AEP Oklahoma

Transmission Company, Inc and

AEP Southwestern Transmission

Company, Inc)

See Att. H tab,

posted RRR File

See Att. H tab,

posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

2 Reserved for Future Use

3 City Utilities of Springfield,

Missouri $8,651,509

See Att. H tab,

posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

4 Empire District Electric

Company $14,075,000

See Att. H tab,

posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

5 Grand River Dam Authority See Att. H tab,


posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

6 Kansas City Power & Light

Company

See Att. H tab,

posted RRR File

See Att. H tab,

posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

7 Oklahoma Gas and Electric

(Total)

See Att. H tab,

posted RRR File

See Att. H tab,

posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

7a Oklahoma Gas and Electric

See Att. H tab,


posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

7b Oklahoma Municipal Power

Authority $368,501

See Att. H tab,

posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

8 Midwest Energy, Inc. See Att. H tab,

posted RRR File

See Att. H tab,

posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

9 KCP&L Greater Missouri

Operations Company

See Att. H tab,

posted RRR File

See Att. H tab,

posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

10 Southwestern Power

Administration $14,267,100

See Att. H tab,

posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

11 Southwestern Public Service

Company (Total)

See Att. H tab,

posted RRR File

See Att. H tab,

posted RRR

See Att. H

tab, posted

See Att. H tab,

posted RRR

Page 6

File RRR File File

11a Southwestern Public Service

Company

See Att. H tab,

posted RRR File

See Att. H tab,

posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

11b Tri-County Electric Cooperative See Att. H tab,

posted RRR File

See Att. H tab,

posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

12 Sunflower Electric Power

Corporation $14,484,045

See Att. H tab,

posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

13 Western Farmers Electric

Cooperative $20,719,639

See Att. H tab,

posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

14 Westar Energy, Inc. (Kansas

Gas & Electric and Westar

Energy) (Total)

See Att. H tab,

posted RRR File

See Att. H tab,

posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

14a Westar Energy, Inc. (Kansas Gas

& Electric and Westar Energy) See Att. H tab,

posted RRR File

See Att. H tab,

posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

14b Prairie Wind Transmission, LLC. See Att. H tab,

posted RRR File

See Att. H tab,

posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

14c Kansas Power Pool See Att. H tab,

posted RRR File

See Att. H tab,

posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

15 Mid-Kansas Electric Company

(Total)

See Att. H tab,

posted RRR File

See Att. H tab,

posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

15a Mid-Kansas Electric Company $15,142,441

See Att. H tab,

posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

15b ITC Great Plains

See Att. H tab,

posted RRR File

See Att. H tab,

posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

15c Prairie Wind Transmission, LLC. See Att. H tab,

posted RRR File

See Att. H tab,

posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

16 Lincoln Electric System See Att. H tab,


posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

17 Nebraska Public Power District See Att. H tab,

posted RRR File

See Att. H tab,

posted RRR

File

See Att. H

tab, posted

RRR File

See Att. H tab,

posted RRR

File

18 Omaha Public Power District See Att. H tab,

posted RRR File

See Att. H tab,

posted RRR

See Att. H

tab, posted

See Att. H tab,

posted RRR

Page 7

File

RRR File

File

19 Total

See Att. H tab,

posted RRR

File

Note A: The Annual Transmission Revenue Requirements (“ATRR”) for each Zone are set forth

in the Revenue Requirements and Rates File (“RRR File”) posted on the SPP website.

2. For the purposes of determining the Region-wide Charges under Schedule 11, the

Region-wide ATRR, as shown in Line 65 of Section I, Table 2, shall be the sum of (i) the

Base Plan Region-wide Annual Transmission Revenue Requirements (“Base Plan

Region-wide ATRR”), and (ii) the total Balanced Portfolio Region-wide Annual

Transmission Revenue Requirements (“Balanced Portfolio Region-wide ATRR”) and

(iii) the approved Interregional Project Region-wide Annual Transmission Revenue

Requirements (“Interregional Project Region-wide ATRR”)..

Table 2

(See Note B below)

1 Base Plan Region-wide ATRR (NTC prior to June 19, 2010) See Att. H tab, posted

RRR File

2 Base Plan Region-wide ATRR (NTC on or after June 19, 2010) See Att. H tab, posted

RRR File

3 Total Balanced Portfolio Region-wide ATRR Total, Column (6),

Section I, Table 1


RRR File

4 Balanced Portfolio Region-wide ATRR See Att. H tab, posted

RRR File

5 SPP Interregional PlanningProject Region-wWide ATRR See Att. H tab, posted

RRR File

6 Other Interregional Planning Region ATRR See Att. H tab posted

RRR File

567 Region-wide ATRR (Sum of Lines 1through 6 + Line 2 + Line 3 +

Line 4 + Line 5)


RRR File

Note B: The Region-wide ATRRs are set forth in the RRR File posted on the SPP website.

Page 8

3. A Transmission Owner’s revenue requirement referenced or stated in this Attachment H

shall not be changed absent a filing with the Commission, accompanied by all necessary

cost support, unless such Transmission Owner utilizes Commission-approved formula

rate processes contained in this Tariff to determine its revenue requirements.

4. A new or amended revenue requirement referenced or stated in this Attachment H shall

not be filed with the Commission by the Transmission Provider unless such revenue

requirements have been provided by or for a Transmission Owner. Such revenue

requirements shall have been accepted or approved by the applicable regulatory or

governing authority except in the event of a simultaneous filing with the Commission by

the Transmission Owner and Transmission Provider.

5. If a Transmission Owner has a Commission-approved formula rate, the successful

completion of its approved annual formula rate update procedures shall constitute

regulatory acceptance sufficient to authorize the Transmission Provider to update that

Transmission Owner’s revenue requirements posted on the SPP website. Such update by

the Transmission Provider shall not require a filing with the Commission, provided that

the Transmission Owner posts the populated formula rate for public review and comment

as required under the applicable protocols and/or procedures contained in this Attachment

H. The Transmission Provider shall follow any special procedures related to updating a

Transmission Owner’s revenue requirements as outlined in Section II of this Attachment.

6. The Transmission Provider shall allocate the accepted or approved revenue requirement

associated with a Base Plan Upgrade, in accordance with Attachment J to this Tariff, to

the Base Plan Region-wide ATRRs in Section I, Table 2 above and to the appropriate

Base Plan Zonal ATRR in Column (4) or (5) in Section I, Table 1.

SECTION II: Transmission Owner-Specific Requirements

1. Westar Energy, Inc.

For Westar Energy, Inc., the ATRR for purposes of the Network Integration

Transmission Service shall be calculated using the rate formula set forth in Attachment H

Addendum 3 of this Tariff (“Westar Formula Rate”). The results of the formula

calculation shall be posted on the Transmission Provider’s website and in an accessible

location on Westar’s OASIS website by October 15 of each calendar year and shall be

Page 9

effective on January 1 of the following year. The Zonal Revenue Requirement to be used

for the Westar zone, Column (3) of Section I, Table 1 of this Attachment H, shall be

calculated by taking the SPP Zonal Revenue Requirement as identified on the Projected

Net Revenue Requirements page, line 10 of the Westar Formula Rate; less the sum of the

current year’s revenue requirement associated with all transmission facilities owned by

Westar in other pricing zones when such revenue requirements are included in the

revenue requirements specified in the Westar Formula Rate on the Projected Net Revenue

Requirements page, line 10; plus the previous calendar year’s total firm Point-To-Point

transmission revenue allocated to Westar under Attachment L provided such Point-to-

Point transmission revenue is deducted from Westar’s ATRR under Section 34.1 of this

Tariff.

The revenue requirements for Base Plan Funded projects owned by Westar shall be the

amount contained on the Projected Net Revenue Requirements page, line 9 of the Westar

Formula Rate.

The revenue requirements for Balanced Portfolio funded projects owned by Westar shall

be the amount contained on the Projected Net Revenue Requirements page, line 9a of the

Westar Formula Rate. Following its posting of the updated revenue requirements by

October 15 of each calendar year as discussed above, the Transmission Provider shall

immediately update the various Base Plan and Balanced Portfolio funded costs and

allocations contained in the Tariff and file them with the Commission no later than

December 15 of each calendar year with a requested effective date of January 1.

2. Southwestern Public Service Company

For Southwestern Public Service Company (“SPS”), the Existing Zonal ATRR for Zone

11 in Column (3), of Section I, Table 1 of this Attachment H shall be calculated using:

(1) the formula rate as specified in Attachment O – SPS of the Xcel Energy Operating

Companies Joint Open Access Transmission Tariff (“Xcel Energy OATT”), (2) will be

equal to the Current Year Revenue Requirement with True Up as specified on line 6,

page 1 of Attachment O – SPS of the Xcel Energy OATT, (3) and subject to the

Page 10

Implementation Procedures in Appendix 1 of Attachment O – SPS of the Xcel Energy

OATT. The results of the formula calculation shall be posted on the SPP website and in

an accessible location on SPS’s OASIS website by October 1 of each calendar year and

shall be effective on January 1 of the following year. The Existing Zonal ATRR for Zone

11, in Column (3), Section I, Table 1 of this Attachment H shall not be subject to

adjustment pursuant to section 34.1 for the previous calendar year’s total firm Point-to-

Point transmission revenue allocated to SPS under Attachment L when determining the

monthly zonal Demand Charge for Zone 11.

3. American Electric Power

The American Electric Power ATRR for purposes of the Network Integrated

Transmission Service shall be (i) calculated using the formula rate set forth in Addendum

1 to this Attachment H, (ii) posted on the SPP website by May 25 of each calendar year,

and (iii) effective on July 1 of such year.

4. Nebraska Public Power District: Formula Rate Implementation Protocols and

Formula Rate Template

Section 1. Annual Updates

The Formula Rate Template set forth in Addendum 7 and these Formula Rate

Implementation Protocols (“Protocols”) together comprise the filed rate by

Southwest Power Pool (“SPP”) for calculating Nebraska Public Power District’s

(“NPPD”) Zonal ATRR for Transmission Service under the SPP OATT. NPPD

must follow the instructions specified in the Formula Rate Template to calculate

the rates for NITS, the rates for Schedule 1 Service, the rates for Point-to-Point

services over facilities in SPP Zone 17 and the ATRR for Base Plan Upgrades and

other network upgrades.

The initial Zonal ATRR and the initial rates will be in effect for a partial year

from the effective date of NPPD’s transfer of operational control of its

transmission facilities to SPP until December 31, 2009. The Formula Rate shall

Page 11

be recalculated each year with the resulting rates to become effective on and after

January 1 of each year through December 31 of such year. The resulting rates

implemented each January 1 will be subject to review and true-up as further

provided in the Protocols.

No later than September 1, 2009 and September 1 of each year thereafter, NPPD,

upon initial approval of NPPD’s Board of Directors, shall determine its projected

Zonal ATRR, and resulting rates for the following calendar year, in accordance

with the Protocols and the Formula Rate Template of Addendum 7 of this

Attachment H. NPPD will post such determination on its website and will send

such determination to SPP for posting on the publicly accessible portion of the

SPP website. Contemporaneously, NPPD shall provide notice to its wholesale

customers and interested parties of its projected Zonal ATRR and resultant rates,

including all inputs in sufficient detail to identify the components of NPPD’s

Zonal ATRR. Commencing September 1 of each year, such parties may submit

written questions and answers will be provided by NPPD within ten (10) business

days. NPPD will post on the NPPD website responses to any such inquiries and

information regarding frequently asked questions. No later than September 30 of

each year, NPPD will hold a meeting with wholesale customers and interested

parties to explain the formula rate input projections and provide an opportunity

for oral and written comments. Written comments must be submitted no later

than October 30. No later than December 15 of each year, NPPD will provide to

SPP for posting on the publicly accessible portion of the SPP website NPPD’s

final Zonal ATRR and resulting rates to become effective January 1 of the

following calendar year.

Section 2. True-Up Adjustments

On or before June 1, 2010 and on or before June 1 of each year thereafter, NPPD

will calculate the True-Up Adjustment with supporting data inputs in sufficient

detail to identify the projected and actual cost of each element of NPPD’s Zonal

Page 12

ATRR and actual revenues. NPPD will reflect the True-Up Adjustment as a line

item in its Zonal ATRR noticed on September 1, 2010 and in the ATRR noticed

on September 1 of each year thereafter. The True-Up Adjustment will be

determined in the following manner:

(1) Actual transmission revenues associated with transactions included in the Divisor

of the Formula Rate Template for the previous calendar year will be compared to

the Actual Zonal ATRR. The Actual Zonal ATRR shall be calculated in

accordance with the Formula Rate Template and actual data for the previous year.

For each year, NPPD will complete and make available for review, on its website,

actual data as recorded in accordance with FERC’s Uniform System of Accounts,

including an affidavit of the Chief Financial Officer of NPPD attesting to the

accuracy of the cost and revenue data set forth therein. In addition, NPPD shall

provide an explanation of any change in accounting policies and practices that

NPPD employed during the preceding twelve-month period that affect

transmission accounts or the allocation of common costs to transmission. Actual

costs incurred during the applicable calendar year will be compared to actual

revenues recovered during such period to determine whether there was any under-

recovery or over-recovery. The True-Up Adjustment and related calculations

shall be posted no later than June 1 on NPPD’s website and on the publicly

accessible portion of the SPP website. Commencing June 1 of each year, any

interested party may submit written questions and answers will be provided by

NPPD within ten (10) business days. NPPD will post on the NPPD website

responses to any such inquiries and information regarding frequently asked

questions. Written comments must be submitted no later than July 15 of each

year. NPPD will post on the NPPD website the final True-Up Adjustment no

later than September 1 of each year.

(2) Interest on any over-recovery or under-recovery of the Zonal ATRR shall be

based on the interest rate equal to NPPD’s actual short-term debt costs, capped at

the applicable interest rate set forth in 18 C.F.R. §35.19a of the Commission’s

Page 13

regulations. The interest rate equal to NPPD’s actual short-term debt costs shall

be calculated in accordance with Worksheet K to the Formula Rate Template.

(3) The Zonal ATRR for transmission services for the following year shall be the sum

of the projected Zonal ATRR for the following year and a True-Up Adjustment

for the previous year, including interest as explained above.

Section 3. NPPD Formula Rate Blank Template

NPPD’s Formula Rate Template to be used for calculating the Zonal ATRR and

NITS rates, Schedule 1 rates, Point-to-Point rates, ATRR Base Plan Upgrade and

other network upgrades set forth in Attachment H – Addendum 7. The provisions

of such Formula Rate Template are not subject to changes except through a filing

under Section 205 or 206 of the Federal Power Act.

5. Omaha Public Power District

For the Omaha Public Power District (“OPPD”), the ATRR for purposes of the Network

Integration Transmission Service, Base Plan Upgrades, Scheduling, System Control, and

Dispatch Service, and for the determination of Point-to-Point rates shall be calculated

using the Formula-based Rate Template set forth in Attachment H - Addendum 8 of this

Tariff. The ATRR and rates calculated pursuant to the formula-based rate template shall

be revised annually. The results of such annual calculations shall be posted on OPPD’s

OASIS website and in a publically accessible location on the Transmission Provider’s

website by May 15 of each calendar year. Written comments will be accepted until June

15 and the annual revenue requirement and rates shall become effective from August 1 of

such year through July 31 of the following year. Initially, the rates calculated pursuant to

the formula-based rate template and incorporated into this SPP OATT will be in place

through July 31, 2009.

6. Lincoln Electric System

Page 14

For the Lincoln Electric System (“LES”), ATRR of Network Integration Transmission

Service, Base Plan Upgrades, Scheduling, System Control and Dispatch Service, and for

the determination of Point-to-Point rates shall be calculated using the forward-looking

Formula Rate Template set forth in Attachment H - Addendum 6 of this Tariff. The

ATRR and rates calculated pursuant to the forward-looking formula rate template shall be

revised annually. The results of such annual calculations shall be posted on LES’ public

page of the SPP OASIS website by October 31 of each calendar year. Customers will be

given an opportunity to ask questions by November 30 and to seek information regarding

the calculations. Written comments will be accepted until November 15. The annual

revenue requirement and rates derived therefrom shall become effective from January 1

through December 31 of the following year. Initially, the rates calculated pursuant to the

historical formula based rate template and incorporated into this SPP OATT will be in

place through December 31, 2012. Rates calculated pursuant to the forward-looking

formula rate template and incorporated into this SPP OATT will be in place through

December 31, 2013.

1. Actual Net Revenue Requirement (calculated in accordance with page 1, line

7 of Attachment H, Addendum 6) for the previous year shall be compared to

the projections made for that same year (True-Up Year) to determine any

excess or shortfall in the projected revenue requirement that was used for

billing purposes in the True-Up Year. In addition, actual divisor loads (based

on a 12 CP average) will be compared to projected divisor loads (page 1, line

10 of Attachment H, Addendum 6) and the difference multiplied by the rate

actually billed to determine any excess or shortfall in collection due to

volume. The sum of the excess or shortfall due to the actual versus projected

revenue requirement and the excess or shortfall due to volume shall constitute

the True-up Adjustment. The True-up Adjustment and related calculations

shall be posted to the Transmission Provider’s public webpage of the SPP

OASIS website no later than June 1. LES will provide an explanation of the

True-up Adjustment in response to customer

Page 15

inquiries and will post on its public page of the SPP OASIS website

information regarding frequently asked questions.

2. Interest on any over recovery of the net revenue requirement or any over

recovery due to volume changes shall be determined based on the

Commission’s regulation at 18 C.F.R. § 35.19a. Interest on any under

recovery of the net revenue requirement or any under recovery due to volume

changes shall be determined using the interest rate equal to LES’s actual

short-term debt costs capped at the applicable FERC refund interest rate. In

either case, the interest payable shall be calculated using an average interest

rate for the twenty-four (24) months during which the over or under recovery

in the revenue requirement or volume changes exists. The interest rate to be

applied to the over or under recovery amounts will be determined using the

average rate for the nineteen (19) months preceding August of the current

year. The interest amount (page 1, line 6e of Attachment H, Addendum 6) will

be included in the projected costs made available October 31.

3. The Net Revenue Requirement for transmission services for the following

year shall be the sum of the projected revenue requirement for the following

year (page 1, line 1 of Attachment H, Addendum 6) minus Total Transmission

Revenue Credits (page 1, line 5 of Attachment H, Addendum 6), plus or

minus the True-up Adjustment (page 1, line 6c minus line 6d plus line 6e of

Attachment H, Addendum 6) from the previous year, if any, including

interest, as explained.

4. Example True-up of 2012 Net Revenue Requirement

• 2012 Projected Net Revenue Requirement was $20,000,000, projected load

was 500,000 kW and the resulting rate was $40.0000 per kW-year.

• 2012 Actual Net Revenue Requirement was $19,500,000, actual 12 CP load

was 475,000 kW resulting in a rate of $41.0526 per kW-year.

5. True-Up Calculation

• There is an over recovery of the net revenue requirement equal to $500,000

($20,000,00 - $19,500,000 = $500,000).

Page 16

• There is a $1,000,000 shortfall in revenue collection due to volume

((500,000 kW – 475,000 kW) x $40.00 per kW-year = $1,000,000).

• The total True-up Adjustment amount would be a net under recovery of

$500,000 ($500,000 (over recovery) - $1,000,000 (shortfall) = -$500,000

(shortfall))

6. Interest on True-up Adjustment

Interest will be applied to the True-up Adjustment for the twenty-four (24)

months during which the under recovery existed, from January 1, 2012

through December 31, 2013. The interest rate applied will be Lincoln Electric

System’s average monthly short-term debt interest rate, capped at the FERC

refund interest rate, in effect January 1, 2012 through July 31, 2013.

7. Informational Posting

Lincoln Electric System will post all information relating to the True-up

Adjustment no later than June 1, 2014, affording interested parties at least

seven months to review these calculations in advance of the related January 1

rate change. LES will provide an explanation of the True-up Adjustment

amounts in response to customer inquiries and will post on the OASIS

information regarding frequently asked questions. This True-up Adjustment

with interest will be included in the projected 2015 net revenue requirement

and estimated rates will be made available to customers by October 31, 2014.

New rates will take effect on January 1, 2015.

ATTACHMENT J

RECOVERY OF COSTS ASSOCIATED WITH NEW FACILITIES


I. Direct Assignment Facilities

Where a System Impact and/or Facilities Study indicates the need to construct

Direct Assignment Facilities to accommodate a request for Transmission Service, the

Transmission Customer shall be charged the full cost of such Direct Assignment

Facilities. Such costs shall be specified in a Service Agreement.


II. Network Upgrades

Where applicable the costs of completed Network Upgrades shall be allocated as

specified in Sections III, IV, and V and VI of this Attachment. The revenue requirements

of approved Interregional Projects, Base Plan Upgrades, and approved Balanced

Portfolios, and approved Interregional Projects will be recovered through Schedule 11,

subject to filing such rate or revenue requirements with the Commission, and where

applicable Directly Assigned Upgrade Costs. These costs may be recovered in whole or

in part through the Base Plan Zonal Charge, Base Plan Region-wide Charge, and/or a

direct assignment charge. The cost allocable to each of these charges shall be determined

in accordance with Section III of this Attachment. The revenue requirements for other

Network Upgrades may be recovered by Transmission Owners through Schedules 7, 8,

and 9 subject to their filing such rate or revenue requirements with the Commission.


III. Base Plan Upgrades

A single Base Plan Upgrade is comprised of any upgrade or group of upgrades

required to be made to a single transmission circuit, where a transmission circuit is

comprised of all load carrying elements between circuit breakers or the comparable

switching devices. A load carrying element within a Base Plan Upgrade that is connected

at two different voltage levels (e.g. a 345kV/138kV transformer) shall, for the purposes

of this Attachment J, be considered to have a nominal operating voltage of its lower

voltage level (excluding any tertiary windings) and its costs shall be allocated in

accordance with the rules governing the lower voltage level in this Attachment J. A

waiver may be requested to use a transformer’s higher voltage level instead of the lower

voltage level for the purposes of cost allocation under this Attachment J based on the

anticipated utilization of the transformer. Such request must be made in writing with

supporting analysis and submitted to the Transmission Provider not later than one

hundred eighty (180) days following the inclusion of the transformer in an approved SPP

Transmission Expansion Plan. Any waiver request submitted shall be evaluated based

upon the following general factors, including but not limited to: (i) whether the power

flows through the transformer predominately are from the lower voltage to the higher

voltage; (ii) whether the transformer is not necessary for the support of, or does not

substantially benefit, the lower voltage system in the host zone to which it is connected.

The Transmission Provider shall make a recommendation to accept or deny the waiver,

on a non-discriminatory basis, to the Markets and Operations Policy Committee. The

Markets and Operations Policy Committee will consider the waiver request and the

Transmission Provider’s recommendation, and will provide its own recommendation

(along with the Transmission Provider’s recommendation) regarding such waiver to the

SPP Board of Directors. Barring unusual circumstances, the recommendation to approve

or reject such waiver request will be submitted to the SPP Board of Directors within one

hundred twenty (120) days following the receipt of the waiver request.

A. Allocation of Base Plan Upgrade Costs Eligible for Cost Allocation

1. If the cost of a Base Plan Upgrade is less than or equal to

$100,000, the annual transmission revenue requirement associated

with such Base Plan Upgrade shall be allocated to the Base Plan

Zonal Annual Transmission Revenue Requirement of the Zone in

which the Base Plan Upgrade is located.

2. If a) the Base Plan Upgrade is included in and constructed pursuant

to the SPP Transmission Expansion Plan in order to ensure the

reliability of the Transmission System or is an approved high

priority upgrade, and the cost for that upgrade is not allocable

under Section III.A.1; or b) the Base Plan Upgrade cost eligible for

cost allocation under Section III.B.1 is not associated with a new

or changed Designated Resource for a wind generation plant, then:

i. X% of the annual transmission revenue requirement

associated with such Base Plan Upgrade costs eligible for

cost allocation shall be allocated to the Base Plan Region-

wide Annual Transmission Revenue Requirement and

recovered through the Region-wide Charge, where X shall

be set as follows:

a. For all Base Plan Upgrades issued a Notification to

Construct prior to June 19, 2010 or whose nominal

operating voltage level is less than 300 kV but

greater than 100 kV, X shall be 33%.

b. For all other Base Plan Upgrades whose nominal

operating voltage level is greater than or equal to

300 kV, X shall be 100%.

c. For all other Base Plan Upgrades whose nominal

operating voltage level is less than or equal to 100

kV, X shall be 0%.

ii. (100-X)% of the annual transmission revenue requirement

associated with such Base Plan Upgrade costs eligible for

cost allocation shall be allocated to the Base Plan Zonal

Annual Transmission Revenue Requirement and recovered

through the Base Plan Zonal Charge as follows:

a. For Base Plan Upgrades issued a Notification to

Construct prior to June 19, 2010, this portion of the

annual transmission revenue requirement for Base

Plan Upgrade costs eligible for cost allocation shall

be allocated to the Base Plan Zonal Annual

Transmission Revenue Requirement of specific

Zones based on the Zones’ share of the incremental

positive MW-mile benefits as computed in Section

4 of Attachment S to this Tariff. Each Zone with a

benefit of at least 10 MW-miles from a given Base

Plan Upgrade shall be allocated a portion of the

Base Plan Zonal Annual Transmission Revenue

Requirement for such upgrade based on its

incremental positive MW-mile benefit divided by

the sum of the incremental positive MW-mile

benefits for all of those Zones with a benefit of at

least 10 MW-miles from the upgrade, provided that

such allocation represents an engineering and

construction cost of at least $100,000.

b. For all other Base Plan Upgrades, this portion of the



be allocated solely to the Base Plan Zonal Annual

Transmission Revenue Requirement of the Zone in


3. If the Base Plan Upgrade cost eligible for cost allocation under

Section III.B.1 of Attachment J is a) associated with a new or

changed Designated Resource that is a wind generation plant and

b) the Base Plan Upgrade is located within the same zone as the

Transmission Customer’s Point of Delivery, then:

i. X% of the annual transmission revenue requirement

associated with the portion of the Base Plan Upgrade costs

eligible for cost allocation shall be allocated to the Base

Plan Region-wide Annual Transmission Revenue

Requirement and recovered through the Base Plan Region-

wide Charge, where X shall be set as follows:



operating voltage level is less than 300 kV and

greater than 100 kV, X shall be 33%.

b. For all other Base Plan Upgrades whose nominal

operating voltage level is greater than or equal to

300 kV, X shall be 100%.

c. For all other Base Plan Upgrades whose nominal

operating voltage level is less than or equal to 100

kV, X shall be 0%.

ii. (100-X)% of the annual transmission revenue requirement

associated with the portion of the Base Plan Upgrade costs

eligible for cost allocation shall be allocated to the Base

Plan Zonal Annual Transmission Revenue Requirement

and recovered through the Base Plan Zonal Charge as

follows:


Construct prior to June 19, 2010, this portion of the




Transmission Revenue Requirement of specific

Zones based on the Zones’ share of the incremental

positive MW-mile benefits as computed in Section

4 of Attachment S to this Tariff. Each Zone with a

benefit of at least 10 MW-miles from a given Base

Plan Upgrade shall be allocated a portion of the

Base Plan Zonal Annual Transmission Revenue

Requirement for such upgrade based on its

incremental positive MW-mile benefit divided by

the sum of the incremental positive MW-mile

benefits for all of those Zones with a benefit of at

least 10 MW-miles from the upgrade, provided that

such allocation represents an engineering and

construction cost of at least $100,000.

b. For all other Base Plan Upgrades, this portion of the




Transmission Revenue Requirement of the Zone in


4. If the Base Plan Upgrade cost eligible for cost allocation under

Section III.B.1 of Attachment J is a) associated with a new or

changed Designated Resource that is a wind generation plant and

b) the Base Plan Upgrade is located within a zone(s) other than the

Transmission Customer’s Point of Delivery, then:

i. Y% of the annual transmission revenue requirement

associated with the Base Plan Upgrade costs eligible for

cost allocation shall be allocated to the Base Plan Region-

wide Annual Transmission Revenue Requirement and

recovered through the Base Plan Region-wide Charge,

where Y shall be set as follows:



operating voltage level is less than 300 kV, Y shall

be 67%.

b. For all other Base Plan Upgrades Y shall be 100%.

ii. (100-Y)% of the annual transmission revenue requirement

associated with the Base Plan Upgrade costs eligible for

cost allocation shall be directly assigned to the


B. Conditions for Classifying Service Upgrade Costs Associated with

Designated Resources As Base Plan Upgrade Costs Eligible for Cost

Allocation

1. Except as provided in Section III.A.1 and subject to the limits and

rules set forth in Subsections d and f below, the costs of Service

Upgrades associated with new or changed Designated Resources

shall be classified as Base Plan Upgrade costs eligible for cost

allocation if the conditions in the following Subsections a and b are

met, and if the condition in Subsection c is met as applicable.

a. The Transmission Customer’s commitment to the

Designated Resource has a duration of at least five years

b. In the first year the Designated Resource is planned to be

used by the Transmission Customer, the accredited capacity

of the Transmission Customer’s existing Designated

Resources plus the lesser of: (a) the planned maximum net

dependable capacity applicable to the Transmission

Customer or (b) the requested capacity; shall not exceed

125% of the Transmission Customer’s projected system

peak responsibility determined pursuant to SPP Criteria 2.

c. If the Designated Resource is a wind generation plant, then

the sum of: (1) the requested capacity and (2) the

transmission capacity reserved for the Transmission

Customer’s existing Designated Resources that are wind

generation plants shall not exceed 20% of the Transmission

Customer’s projected system peak responsibility as

determined pursuant to SPP Criteria 2 in the first year the

Designated Resource is planned to be used by the


d. Safe Harbor Cost Limit for Eligibility of the Costs of Base

Plan Upgrade for Cost Allocation

i. For Base Plan Upgrades that cost over $100,000,

the aggregate cost of such upgrades assigned to

each individual transmission service request that is

less than or equal to the Safe Harbor Cost Limit of

$180,000 / MW times the requested capacity is

eligible for cost allocation in accordance with:

1) Section III.A.2 for a new or changed

Designated Resource other than a wind

generation plant; or

2) Sections III.A.3 and 4 for a new or changed

Designated Resource that is a wind

generation plant.

ii. Any costs that exceed the Safe Harbor Cost Limit

for a transmission service request shall be directly

assigned to the Transmission Customer unless a

waiver of the Safe Harbor Cost Limit is granted

pursuant to Section III.C.

e. Base Plan Upgrade costs eligible for allocation as a result

of the granting of a waiver shall be allocated in accordance

with Sections III.A.2, III.A.3, or III.A.4, as applicable.

f. For each Transmission Service Request, the amount of

Base Plan Upgrade costs eligible for cost allocation shall be

pro-rated among all Base Plan Upgrades required to grant

the Transmission Service Request based upon each

Upgrade’s cost that is allocated to the Transmission Service

Request in accordance with Attachment Z1.

2. The Transmission Customer must provide the Transmission

Provider the information that the Transmission Provider deems

necessary to verify that the new or changed Designated Resource

meets conditions in Section III.B.1.a,b and c above.

3. If an upgrade for a new or changed Designated Resource meets the

requirements set forth in Section III.B.1.a, b, and c above, the costs

up to the $180,000/MW Safe Harbor Cost Limit will be classified

as Base Plan Upgrade costs eligible for cost allocation.

4. If the conditions set forth in Section III.B.1.a, b, and c above are

not met, and the Transmission Customer does not secure a waiver

of the relevant condition(s), the costs of the upgrades will be

directly assigned to the Transmission Customer. If the costs of

upgrades associated with a new or changed Designated Resource

exceeds the Safe Harbor Cost Limit and the Transmission

Customer does not secure a waiver of that limit, the costs of the

upgrades in excess of the limit will be directly assigned to the

Transmission Customer. The Transmission Customer shall receive

transmission revenue credits in accordance with Attachment Z2 to

this Tariff for any such directly assigned costs.

C. Waiver of Conditions for Classifying Service Upgrade Costs

Associated with Designated Resources As Base Plan Upgrade Costs

Eligible for Cost Allocation

1. Waiver Process

If one or more of the conditions in Section III.B.1.a, b, c are not

met or if the Base Plan Upgrade cost exceeds the Safe Harbor Cost Limit,

the Transmission Customer may seek a waiver from the Transmission

Provider in order that the costs of any Service Upgrade(s) that otherwise

would be directly assigned to the Transmission Customer may be

classified in whole or in part as Base Plan Upgrade costs eligible for cost

allocation.

To obtain a waiver for the conditions set forth in Section III.B.1.a,

b, c, the Transmission Customer must submit a request for a waiver to the

Transmission Provider simultaneous with its request for long-term

transmission service, submitted in accordance with Attachment Z1 to this

Tariff, for the new or changed Designated Resource.

Aggregate Facilities Studies performed by the Transmission

Provider as part of the Aggregate Transmission Service Study procedure,

which is described in Attachment Z1, will determine whether the costs for

Service Upgrades associated with a new or changed Designated Resource

might exceed the Safe Harbor Cost Limit. If the Transmission Provider

determines that the costs for Service Upgrades associated with a new or

changed Designated Resource might exceed the Safe Harbor Cost Limit,

the Transmission Provider shall notify the affected Transmission

Customer when the Transmission Provider posts the associated Facilities

Study. The affected Transmission Customer may request a waiver

regarding the costs in excess of the Safe Harbor Cost Limit within 15 days

of such notice form the Transmission Provider.

Following the receipt of a request for a waiver, the Transmission

Provider will review the request and make a determination on a non-

discriminatory basis of whether a waiver should be granted based upon

consideration of the factors described in Section III.C.2. of this

Attachment. The Transmission Customer requesting the waiver shall be

responsible for the reasonable costs of any studies that the Transmission

Provider performs in making its determination. The Transmission

Provider will provide a report and recommendation to the Markets and

Operations Policy Committee for each requested waiver. The Markets and

Operations Policy Committee will consider the waiver request and the

Transmission Provider’s report and recommendation, and will provide its

own recommendation (along with the Transmission Provider’s report and

recommendation) regarding each requested waiver to the SPP Board of

Directors. Barring unusual circumstances, a valid waiver request will be

reviewed and submitted to the SPP Board of Directors within 120 days

following the receipt of the waiver request.

2. Factors to be Considered in Evaluating Waiver Requests

Any waiver request submitted by a Transmission Customer

pursuant to Section III.C.1. of this Attachment shall be evaluated based

upon the following general factors, including but not limited to:

i. There are insufficient competitive resource alternatives for one or

more Transmission Customers.

ii. In the event that the aggregate costs of a Service Upgrade

associated with a new or changed Designated Resource exceed the

Safe Harbor Cost Limit, (i) those costs up to the level of the Safe

Harbor Cost Limit shall be classified as Base Plan Upgrade costs

eligible for cost allocation, and (ii) those costs that exceed the Safe

Harbor Cost Limit may be classified in whole or in part as Base

Plan Upgrade costs eligible for cost allocation taking into account

the extent to which the duration of the Transmission Customer’s

commitment to the new or changed Designated Resource exceeds

the five-year commitment period set forth in paragraph III.B.1.

above.

iii. The five-year commitment period for the new or changed

Designated Resource may be waived if: (i) the associated Service

Upgrade costs are significantly less than the Safe Harbor Cost

Limit; or (ii) the associated Service Upgrades provide benefits to

other Transmission Customers that would offset in less than five

years any costs allocated to them as a result of the upgrade being

classified as a Base Plan Upgrade.

iv. If a request for a waiver is received by the Transmission Provider

based upon other circumstances, such waiver request shall also be

considered pursuant to the waiver process described in Section

III.C.1. of this Attachment.

If the costs of the Service Upgrade(s) required for a new or

changed Designated Resource are not eligible for classification as Base

Plan Upgrade costs, the Transmission Customer may nevertheless request

the construction of such upgrades. In such event, the costs of such

upgrades shall be allocated in accordance with Attachment Z1 to this

Tariff.

D. Review of Base Plan Allocation Methodology

1. The Transmission Provider shall review the reasonableness of the

regional allocation methodology and factors (X% and Y%) and the

zonal allocation methodology at least once every three years in

accordance with this Section III.D. The Transmission Provider

and/or the Regional State Committee may initiate such review at

any time. Any change in the regional allocation methodology and

factors or the zonal allocation methodology shall be filed with the

Commission.

2. For each review conducted in accordance with Section III.D.1, the

Transmission Provider shall determine the cost allocation impacts

of the Base Plan Upgrades with Notifications to Construct issued

after June 19, 2010 to each pricing Zone within the SPP Region.

The Transmission Provider in collaboration with the Regional

State Committee shall determine the cost allocation impacts

utilizing the analysis specified in Section III.e of Attachment O

and the results produced by the analytical methods defined

pursuant to Section III.D.4(i) of this Attachment J.

3. The Transmission Provider shall review the results of the cost

allocation analysis with SPP’s Regional Tariff Working Group,

Markets and Operations Policy Committee, and the Regional State

Committee. The Transmission Provider shall publish the results of

the cost allocation impact analysis and any corresponding

presentations on the SPP website.

4. The Transmission Provider shall request the Regional State

Committee provide its recommendations, if any, to adjust or

change the costs allocated under this Attachment J if the results of

the analysis show an imbalanced cost allocation in one or more

Zones.

i) One year prior to each three-year planning cycle (starting in

2013) the Markets and Operations Policy Committee and

Regional State Committee will define the analytical

methods to be used to report under this Section III.D and

suggest adjustments to the Regional State Committee and

Board of Directors on any imbalanced zonal cost allocation

in the SPP footprint; and

ii) Starting in 2015 and at any time thereafter, any member

company that feels that it has an imbalanced cost allocation

may request relief through the Markets and Operations

Policy Committee. The Markets and Operations Policy

Committee recommendation, if any, will be forwarded with

the request for relief to the Regional State Committee and

Board of Directors for review.

5. In accordance with the SPP Bylaws, the SPP Board of Directors

will initiate the appropriate actions, including any necessary filings

with the Commission, consistent with the Regional State

Committee recommendations.


IV. Approved Balanced Portfolios

One hundred percent (100%) of the annual transmission revenue

requirement for an approved Balanced Portfolio shall be recovered through the

Region-wide Charge.

A. Reallocation of Zonal Revenue Requirements for Deficient Zone(s)

For an approved Balanced Portfolio, the balance may have been

achieved by transferring a portion of the Base Plan Zonal Annual

Transmission Revenue Requirement and/or the Zonal Annual

Transmission Revenue Requirement (“Reallocated Revenue

Requirements”) from the deficient Zone(s) to the Balanced Portfolio

Region-wide Annual Transmission Revenue Requirement in accordance

with Section IV.4.c of Attachment O to this Tariff.

1. Implementation of Reallocated Revenue Requirements

The initial reallocation of the Reallocated Revenue

Requirements from the deficient Zone(s) to the Balanced Portfolio

Region-wide Annual Transmission Revenue Requirement shall

occur when at least 10% of the estimated levelized annual

transmission revenue requirements for the approved Balanced

Portfolio has been included in rates under the Tariff (the “Trigger

Date”).

On the Trigger Date and on the anniversary of the Trigger

Date in each of the subsequent four years, 20% of the Reallocated

Revenue Requirements required to balance the portfolio for the

deficient Zone(s), as estimated in accordance with Section IV.4.c

of Attachment O to this Tariff, shall be reallocated to the Balanced

Portfolio Region-wide Annual Transmission Revenue

Requirement. However, if all the upgrades in the approved

Balanced Portfolio are completed and included in rates under the

Tariff and the actual costs of any third party impacts identified

under Section IV.3.c of Attachment O are determined prior to the

fourth anniversary of the Trigger Date, the remaining Reallocated

Revenue Requirements shall be reallocated and the true-up

specified in Section IV.A.2 of this Attachment shall be performed.

The reallocation of the Reallocated Revenue Requirements

shall be from the Base Plan Zonal Annual Transmission Revenue

Requirement of the deficient Zone(s) first, then, if necessary, from

the Zonal Annual Transmission Revenue Requirement of the

deficient Zone(s).

2. Final Reallocation of Reallocated Revenue Requirements and

True-up

Upon the completion and inclusion in rates under the Tariff

of all of the upgrades that are part of the approved Balanced

Portfolio and the determination of the actual cost of any third party

impacts attributable to the Balanced Portfolio under Section IV.3.c

of Attachment O, the final amount of costs to be reallocated from

the Reallocated Revenue Requirements for the deficient Zone(s) to

the Balanced Portfolio Region-wide Annual Transmission Revenue

Requirement to balance the approved Balanced Portfolio shall be

trued-up based on the applicable fixed charge rate and actual costs.

The final reallocation shall be performed using the same benefits

estimated at the time the Balanced Portfolio was approved.

Notwithstanding the foregoing, if the ten-year net present value of

levelized annual transmission revenue requirements based on

actual costs and third party impact costs under Section IV.3.c of

Attachment O exceeds the ten-year net present value of estimated

benefits for the entire approved Balanced Portfolio, then the

reallocation for each Zone shall be set at a level that equates the

benefit to cost ratio in each Zone to the trued-up benefit to cost

ratio for the approved Balanced Portfolio.

B. Reconfiguration of an Approved Balanced Portfolio

1. Conditions Under Which an Approved Balanced Portfolio may

be Reconfigured

Under certain conditions, the Transmission Provider shall

review an approved Balanced Portfolio for unintended

consequences and may recommend reconfiguring a previously

approved Balanced Portfolio. Conditions that would initiate such

review include but are not limited to:

i. Cancellation of an upgrade that is part of an approved

Balanced Portfolio;

ii. Unanticipated decreases in benefits or increases in the costs

of upgrades that are part of an approved Balanced Portfolio

or increases in the costs of third party impacts under

Section IV.3.c of Attachment O; and

iii. Significant unanticipated changes in the transmission

system.

2. Factors to be Considered in Determining Whether a Balanced

Portfolio Should be Reconfigured

Reconfiguration of a Balanced Portfolio shall be evaluated

based upon the following general factors, including but not limited

to, the impact of the reconfiguration on:

i. Meeting the conditions for a Balanced Portfolio specified in

Section IV.3.e of Attachment O to this Tariff;

ii. The number of deficient Zones as defined in Section IV.4.a

of Attachment O to this Tariff;

iii. The amount of Reallocated Revenue Requirements that

needs to be transferred from the deficient Zone(s) to the

Balanced Portfolio Region-wide Annual Transmission

Revenue Requirement in order to balance the reconfigured

portfolio; and

iv. The increase in the overall cost of the reconfigured

Balanced Portfolio, if upgrades are added to the portfolio.

3. Reallocation of Reallocated Revenue Requirements

If a reconfigured portfolio is to be balanced by transferring

a portion of the Reallocated Revenue Requirements from the

deficient Zone(s) to the Balanced Portfolio Region-wide Annual

Transmission Revenue Requirement, the reallocation of the

revenue requirements specified in Section IV.A of this Attachment

shall be adjusted based on the costs and benefits of the proposed

reconfigured Balanced Portfolio as approved.

4. Recommendation and Approval of a Reconfigured Balanced

Portfolio

Based on the analysis performed in accordance with

Sections IV.B.1 through IV.B.3 of this Attachment, the

Transmission Provider shall provide a report and make a

recommendation in regard to reconfiguration of the Balanced

Portfolio to the Markets and Operations Policy Committee. The

Markets and Operations Policy Committee shall consider the

Transmission Provider’s report and recommendation, and shall

provide its own recommendation (along with the Transmission

Provider’s report and recommendation) to the SPP Board of

Directors. Based upon these recommendations, the SPP Board of

Directors shall take action regarding reconfiguration of the

Balanced Portfolio.


V. Other Network Upgrades

A. Sponsored Upgrades

The Directly Assigned Upgrade Cost of a Sponsored Upgrade shall

be borne voluntarily by the Project Sponsor. The Project Sponsor shall

execute an Agreement for Sponsored Upgrade in which it agrees to bear

these Directly Assigned Upgrade Costs. In the Agreement, the Project

Sponsor shall elect to pay for the Sponsored Upgrade by (1) a lump sum

payment or (2) periodic charges calculated in accordance with

Commission policy (both hereafter referred to as “Project Sponsor’s

Payment”). Such periodic charges shall be paid on a monthly basis over a

twenty year period unless a different frequency and/or shorter term is

established in the Agreement for Sponsored Upgrade. The present value of

the Project Sponsor’s Payment shall equal the present value of the annual

revenue requirements of the Sponsored Upgrade over a twenty year plant

life. The annual revenue requirements of the Sponsored Upgrade shall be

calculated by multiplying the levelized fixed charge rate of the

Transmission Owner, based on full depreciation over a 20 year plant life

and including operating and maintenance expenses and any applicable tax

consequences, by the nondepreciated actual cost of the Sponsored

Upgrade.

The Transmission Provider shall file the Agreement initially

utilizing good faith estimates of the construction costs for the assigned

upgrade. Upon completion of the Sponsored Upgrade, the Transmission

Provider shall true up the Directly Assigned Upgrade Costs to the actual

construction costs as appropriate and calculate the Project Sponsor’s

Payment.

In addition, the Directly Assigned Upgrade Cost of the Sponsored

Upgrade shall be reduced as provided in Section VII of this Attachment J

and by any revenue credits granted to a Transmission Owner for the use of

the Sponsored Upgrade.

The Project Sponsor shall receive transmission revenue credits in

accordance with Attachment Z2.

B. Service Upgrades

The cost of a Service Upgrade shall be allocated in accordance

with Attachment Z1 to this Tariff. The Transmission Customer shall

receive transmission revenue credits in accordance with Attachment Z2.

C. Generation Interconnection Related Network Upgrades

The cost of a generation interconnection related Network Upgrade

shall be allocated in accordance with Attachment V to this Tariff. The

Interconnection Customer shall receive transmission revenue credits in

accordance with Attachment Z2.

D. Zonal Reliability Upgrades

1. The cost of Zonal Reliability Upgrades (i) included in the

2005 SPP Transmission Expansion Plan and (ii) placed in

service prior to January 1, 2008 shall be allocated in

accordance with Section III to this Attachment.

2. The cost of all other Zonal Reliability Upgrades shall be

includable in the applicable Zonal Annual Transmission

Revenue Requirement.


VI. Interregional Projects as Network Upgrades

The annual transmission revenue requirements associated with the costs allocated

to the SPP Region for the approved Interregional Projects shall be added toincluded in the

Region-wide Annual Transmission Revenue Requirement and recovered through the

Region-wide Charge.

Reserved


VII. Treatment of Upgrades that Permit Deferral or Displacement of Network

Upgrades

A. Deferred Upgrade

In the case of a Base Plan Upgrade, an upgrade that is part of an approved

Balanced Portfolio, a Zonal Reliability Upgrade, or a Service Upgrade that may

be deferred (“Deferred Upgrade”) as a result of a proposed Network Upgrade, the

achievable Accredited Revenue Requirements shall be equal to the time value of

the affected Transmission Owner’s(s’) revenue requirement(s) for the Deferred

Upgrade over the period of the deferral, calculated as follows:

1. A Transmission Owner’s annual revenue requirement for a

Deferred Upgrade shall be determined using the same method as is

used by the Transmission Owner to calculate its revenue

requirement for transmission facilities for other purposes, but

applying that method to the projected incremental investment in

the Deferred Upgrade.

2. The time value of the deferral shall be calculated by discounting to

present value the accredited annual revenue requirements for each

individual year in the deferral period and summing the resulting

values. For each individual year in the deferral period, the time

value of the deferral will be determined by discounting the annual

revenue requirement for that year first from January 1 of that year

and then from December 31 of that year, summing the two

resulting values, and dividing by two. For any partial year

encompassed by the deferral period, the time value of the deferral

shall be calculated in the same manner as indicated in the

immediately preceding sentence, except that the resulting value

will be pro-rated based on the number of months in the partial year

divided by 12.

B. Displaced Upgrade

In the case of a Base Plan Upgrade, an upgrade that is part of an approved

Balanced Portfolio, a Zonal Reliability Upgrade, or a Service Upgrade that may

be displaced (“Displaced Upgrade”) as a result of a proposed Network Upgrade,

the achievable Accredited Revenue Requirements shall be equal to the time value

of the affected Transmission Owner’s(s’) revenue requirement(s) for the

Displaced Upgrade over the expected service life of the facility that is displaced.

The methodology for calculating the Accredited Revenue Requirements shall be

the same as set forth in Section VII.A. of this Attachment, except that the

expected service life of the facility shall be substituted for the deferral period in

all instances.

C. Application of Accredited Revenue Requirements

The Transmission Provider shall calculate the Accredited Revenue

Requirements that are achievable due to a Deferred Upgrade or Displaced

Upgrade. The Accredited Revenue Requirements shall be based on the estimated

project costs for the approved upgrade which is deferred or displaced.

1. If a proposed Network Upgrade defers or displaces the need for a

Base Plan Upgrade associated with a new or changed Designated

Resources for which there are Directly Assigned Upgrade Costs,

the Accredited Revenue Requirements related to Base Plan

Upgrade charges shall only include the costs that are allocated to

the Base Plan Zonal Annual Transmission Revenue Requirement

and the Base Plan Region-wide Annual Transmission Revenue

Requirement.

2. If a proposed Network Upgrade defers or displaces the need for an

upgrade that is part of an approved Balanced Portfolio, the

Accredited Revenue Requirements related to Balanced Portfolio

charges shall only include the costs that are allocated to the

Balanced Portfolio Region-wide Annual Transmission Revenue

Requirement.


Zonal Reliability Upgrade, the Accredited Revenue Requirements

related to Zonal Reliability Upgrade charges shall only include the

costs that are assigned to the Zonal Annual Transmission Revenue

Requirement.


Service Upgrade required to provide Long-Term Firm Point-to-

Point Transmission Service, the Accredited Revenue Requirements

related to the transmission service charges shall only include the

expected increase in revenue that can be distributed through

Section II.C of Attachment L to this Tariff, for service under

Schedule 7, as a result of displacement or deferral of the Service

Upgrade.

D. Assignment and Recovery of Accredited Revenue Requirements

1. For a proposed Network Upgrade, other than an upgrade included in a

Balanced Portfolio, that results in a Deferred Upgrade or Displaced

Upgrade:

i. The entity responsible for paying the cost of the Network Upgrade

shall be responsible for any positive difference between the present

value of the total costs for its upgrade and the present value of the

Accredited Revenue Requirements.

ii. The Accredited Revenue Requirements of the deferred or displaced

upgrades shall be recovered through charges specified in:

a. Section III.A of this Attachment for deferred or displaced

Base Plan Upgrades;

b. Section IV of this Attachment for deferred or displaced

upgrades associated with a Balanced Portfolio;

c. Section V.D of this Attachment for deferred or displaced

Zonal Reliability Upgrades; and

d. Section V.B. of this Attachment for deferred or displaced

Service Upgrades.

iii. The calculations for determining the Accredited Revenue

Requirements shall be filed with the Commission by the

Transmission Provider prior to the imposition of any charges or

credits hereunder.

2. The costs of the upgrades included in an approved Balanced Portfolio that

result in a Deferred Upgrade or Displaced Upgrade shall be included in the

Balanced Portfolio Region-wide Annual Transmission Revenue

Requirement and shall be recovered through the Region-wide Charge.

i. The costs of a Network Upgrade that is deferred or displaced by

the upgrades included in an approved Balanced Portfolio shall not

be recovered through the original recovery mechanism for such

upgrade.

ii. In the evaluation of the benefits of the Balanced Portfolio as

specified in Section IV.3.d of Attachment O to this Tariff, the

Accredited Revenue Requirements associated with the deferred or

displaced Base Plan Upgrade(s), Zonal Reliability Upgrade(s) and

Service Upgrade(s) shall be treated as benefits to the Zones to

which those Accredited Revenue Requirements are distributed or

would have been otherwise assigned or recovered as specified in:

a. Section III.A of this Attachment for deferred or displaced

Base Plan Upgrades;

b. Section V.D of this Attachment for deferred or displaced

Zonal Reliability Upgrades; and

c. Section II.C of Attachment L for service under Schedule 7

for deferred or displaced Service Upgrades.


VIII. Uncompleted Network Upgrades

The costs of Network Upgrades that are not completed through no fault of the

Transmission Owner charged with construction of the upgrades shall be handled

as follows:

If a proposed Network Upgrade was accepted and approved by the Transmission

Provider, the Transmission Provider shall develop a mechanism to recover such

costs and distribute such revenue on a case by case basis. Such recovery and

distribution mechanism shall be filed with the Commission. The Transmission

Owner(s) that incurred the costs shall be reimbursed for those costs by the

Transmission Provider. These costs shall include, but are not limited to: the costs

associated with attempting to obtain all necessary approvals for the project, study

costs, and any construction costs.


Schedule 1 to Attachment J

Agreement For Sponsored Upgrade

This Agreement For Sponsored Upgrade ("Agreement") is entered into this _______ day

of _____________________, ________, by and between _____________________________

("Project Sponsor"), and Southwest Power Pool, Inc. ("Transmission Provider") on behalf of

itself and the designated Transmission Owner(s). The Project Sponsor and Transmission

Provider shall be referred to as "Parties."

WHEREAS, the Transmission Provider administers an Open Access Transmission Tariff

(“Tariff”) to provide Transmission Service within the Southwest Power Pool and acts as agent

for the Transmission Owners in providing service under the Tariff; and

WHEREAS, the Sponsored Upgrade identified in the Specifications attached hereto has

been endorsed by the Markets and Operations Policy Committee and the Board of Directors of

the Transmission Provider; and

WHEREAS, the Project Sponsor has agreed to bear the cost of the Sponsored Upgrade;

and

WHEREAS, the Parties intend that capitalized terms used herein shall have the same

meaning as in the Tariff;

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein,

the Parties agree as follows:

1.0 This Agreement shall become effective on the later of (l) the date of the execution

of this Agreement by both Parties or (2) such other date as it is permitted to become effective by

the Commission. (“Effective Date”)

2.0 This Agreement shall terminate on the later of the following events: (1) the

Project Sponsor has fulfilled its obligation to make Project Sponsor’s Payment pursuant to

section 3.0 or (2) the Transmission Provider has fulfilled its obligation to pay the Project Sponsor

all revenue credits pursuant to section 5.0, recognizing that no obligation to pay revenue credits

will remain after the Sponsored Upgrade has been permanently removed from service.

3.0 Project Sponsor agrees to pay the Directly Assigned Upgrade Costs of the

Sponsored Upgrade pursuant to Attachment J of the Tariff. Project Sponsor has elected to pay for

the Sponsored Upgrade in one of the following manners, as indicated in the Specifications

attached hereto: (1) by a lump sum payment or (2) a periodic charge, both hereinafter referred to

as “Project Sponsor’s Payment.” The Parties recognize that the initial Project Sponsor’s

Payment will be based on an estimate of the Directly Assigned Upgrade Costs. While

Transmission Provider represents that the Project Sponsor’s Payment is based on a good faith

estimate of the Directly Assigned Upgrade Costs, such estimate shall not be binding, and the

Project Sponsor shall compensate the Transmission Provider and designated Transmission

Owner(s) for all costs incurred pursuant to the provisions of the Tariff. Promptly after the

Sponsored Upgrade is placed in service, Transmission Provider shall adjust the Project Sponsor’s

Payment to reflect all such costs incurred, as appropriate.

4.0 Project Sponsor shall maintain a Letter of Credit in the amount specified in this

Agreement or such other form of security acceptable to Transmission Provider pursuant to

Attachment X of the Tariff until such time as the Project Sponsor has fulfilled its obligation to

make Project Sponsor’s Payment pursuant to section 3.0.

5.0 Transmission Provider agrees to provide Project Sponsor with revenue credits

pursuant to Attachment Z2 of the Tariff. Revenue credits shall be the exclusive compensation of

the Project Sponsor under this Agreement.

6.0 Transmission Provider agrees to arrange for the construction of the Sponsored

Upgrade in accordance with the Tariff, the SPP Membership Agreement and the construction

timeline specified herein.

7.0 Any notice or request made to or by either Party regarding this Agreement shall

be made to the representative of the other Party as indicated below.

Southwest Power Pool, Inc.:

_____________________________________

201 Worthen Drive

Little Rock, AR 72223-4936

Project Sponsor:

_____________________________________

_____________________________________

_____________________________________

8.0 The Tariff is incorporated herein and made a part hereof for all purposes.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by

their respective authorized officials.

Southwest Power Pool, Inc.:

By:______________________ _____________________ _____________________

Name Title Date

Project Sponsor:

By:______________________ _____________________ _____________________

Name Title Date

Specifications

1.0 Designated Transmission Owner(s): _________________________________________

2.0 Description of Sponsored Upgrade: __________________________________________

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

3.0 Project Sponsor’s Payment:* The Project Sponsor shall elect to pay the Directly Assigned

Upgrade Grade Costs of the Sponsored Upgrade by (1) a lump sum payment or (2) a

periodic charge as indicated below:

_____ Lump Sum Payment:_________________________________________________

Payment Due Date:_____________________________________________

_____Periodic Charge:_____________________________________________________

_______________________________________________________________________

_______________________________________________________________________

* The Project Sponsor’s Payment specified herein shall initially be based on a good faith

estimate of Directly Assigned Upgrade Costs. The Project Sponsor’s Payment shall be

subject to adjustment and true up after the Sponsored Upgrade is placed in service.

4.0 Project Timeline (Milestones): ______________________________________________

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

5.0 Letter of Credit:__________________________________________________________

Effective Date: 1/15

Attachment L

III. Distribution Oof Revenues From Base Plan Zonal Charges and Region-wide Charges and Interregional Projects

Revenues associated with the Base Plan Zonal Annual Transmission Revenue

Requirements and with the Region-wide Annual Transmission Revenue Requirement, specified

in Attachment H and collected by the Transmission Provider under Schedule 11 of the Tariff,

shall be distributed to Transmission Owners owning Base Plan Upgrades,or upgrades within

approved Balanced Portfolios, or an approved Interregional Project in proportion to their

respective annual transmission revenue requirements for Base Plan Upgradesand, upgrades

within approved Balanced Portfolios and approved Interregional Projects.

Revenues associated with approved Interregional Projects receivedcollected by the

Transmission Provider under Schedule 11of the Tariff to compensate an Interregional Planning

Region in accordance with the interregional cost allocation pursuant to the Addendum(s) to

Attachment O will be distributed by the Transmission Provider to the applicable Interregional

Planning Region.

Revenues associated with approved Interregional Projects received by the Transmission

Provider from an Interregional Planning Region in accordance with the interregional cost

allocation pursuant to the Addendum(s) to Attachment O will be distributed by the Transmission

Provider to the owning Transmission Owner(s) in proportion to their respective annual

transmission revenue requirements for the approved Interregional Project.

ATTACHMENT O

TRANSMISSION PLANNING PROCESS


I. Overview of Planning Process

The Transmission Provider’s transmission planning process is an open process. New and

proposed transmission facilities can come from several different areas of the Tariff.

These areas are: 1) transmission service requests; 2) Generation Interconnection Service

requests; 3) the integrated transmission planning process (ITP Upgrades); 4) the Balanced

Portfolio process; 5) the high priority study process (high priority upgrades); and 6)

requests for Sponsored Upgrades; and 7) the evaluation of proposed Interregional

Projects. Figure 1 illustrates the planning processes within SPP and how these result in a

comprehensive regional plan called the SPP Transmission Expansion Plan (STEP).

Each of these sources of potential upgrades has its own evaluation and approval process.

Transmission Service requests are evaluated in accordance with Attachment Z1.

Generator interconnection requests are assessed under the provisions of Attachment V.

In addition, the process for adding new delivery points is described in Attachment AQ.

The integrated transmission planning process and other study processes for Sponsored

Upgrades, Balanced Portfolios, and high priority upgrades, and proposed Interregional

Projects are described in this Attachment O.

The results from all these sources are collected and reported in the annual SPP

Transmission Expansion Plan which gives a twenty (20) year projection of transmission

changes in the SPP Region. The SPP Transmission Expansion Plan, as endorsed by the

Markets and Operations Policy Committee, is presented to the SPP Board of Directors

once a year for their review and approval, as required in accordance with Section V of

this Attachment O. The SPP Board of Directors may modify upgrades that are part of

approved Balanced Portfolios in accordance with Section IV of Attachment J, ITP

Upgrades, or high priority upgrades in the SPP Transmission Expansion Plan throughout

the year in accordance with Section V of this Attachment O. Projects associated with

transmission service requests, and Generation Interconnection Service requests, and

Sponsored Upgrades and Interregional Projects may also be added throughout the year as

Service Agreements and interconnection agreements are executed. described in this

Attachment O.

SPP’s long range transmission planning is conducted over a three year planning cycle as

shown in Figure 2. A 20-Year Assessment is conducted during the first half of this three

year cycle. A 10-Year Assessment is conducted in the second half of the three year

cycle. The Near Term Assessment is conducted each year and generally looks over the

next five to seven years. Each of these assessments and the approval process is set forth

in this Attachment O.

Upgrades from

Transmission

Requests

(Sections 19, 32,

and Attachment

Z1) (Section III.7)

Upgrades from GI

Procedures

(Attachment V)

(Section III.7)

Policy, Reliability

and Economic

Inputs

(Section III.6)

Perform Integrated

Transmission

Planning Study

and Analysis

(Sections III.3 –

III.5)

Integrated Transmission

Planning Studies (20-Year/

10-Year/Near Term) and

Other Studies Endorsed by

Stakeholder Working Groups

Integrated

Transmission Planning

Upgrades Approved or

Endorsed by SPP BOD

Annual SPP

Transmission

Expansion Plan

(Section V)

Sponsored

Upgrades

(Section IV)

Reviewed by

Transmission

Provider

“Out of Cycle”

Reviewed by

Stakeholder

Working Groups

Endorsed by

BOD

Financial

Commitment by

Requesting

Entity

Figure 1 - SPP Transmission Planning

Initial Planning

Model

Include Appropriate

Planning Upgrades in

Models (Sections 19, 32,

Attachment Z1,

Attachment V)

Issue Notifications

To Construct if

applicable

(Section VI)

Reviewed by

Stakeholder

Working Groups

Other Studies

(High Priority Studies,

Balanced Portfolio)

(Section IV)

[BGF2]

Year 1 Year 2 Year 3

Figure 2 - SPP Integrated Transmission Planning Process 3-Year Cycle

10

-Ye

ar

Ne

ar

Te

rm2

0-Y

ea

r

S = Scenarios

A = Analysis

R = Results

Jan - Jun Jul - Dec Jan - JunJan - Jun Jul - DecJul - Dec

RAS

S A R S A R S A R

S A RNote: At the End of Year

Three Repeat ITP Process

from Beginning


II. Roles and Responsibilities

References to the “stakeholder working group” is a generic term that references those working

group(s) as defined in the SPP Bylaws, Sections 3 through 6 that are charged with the

transmission planning process. The current names of all the working groups shall be posted on

the SPP website.

1. Division of Responsibilities

a) The rights, powers and obligations for planning are set forth in the SPP

Membership Agreement in (i) Article 2.0 for the Transmission Provider

and (ii) Article 3.0 for the Members. The division of responsibility

between the Transmission Provider and the Members is set forth in the

SPP Criteria and in this Attachment O. The SPP Membership Agreement,

the SPP Criteria and the Tariff shall be posted on the SPP website.

b) The Transmission Provider shall be responsible for developing the list of

projects in accordance with the stakeholder process set forth in Sections II,

III and V of this Attachment O, and including inter-regional coordination

set forth in Section VIII of this Attachment O.

c) The Transmission Provider shall perform transmission planning studies to

assess the reliability and economic operation of the Transmission System

in accordance with Section III of this Attachment O.

d) As inputs to the planning process, the Transmission Provider shall include

and maintain requirements to serve existing commitments for long-term

transmission service and interconnection service in accordance with

Section III.7 of this Attachment O and any applicable roll-over rights as

set out in Section 2.2 of the Tariff. It shall also take into account all

previously approved projects.

e) The Transmission Provider shall review, and include as appropriate, all

local area upgrades to meet local area reliability criteria as proposed by the

Transmission Owners including those plans developed by Transmission

Owners that have their own FERC approved local planning process to

ensure coordination of the projects set forth in such plans with the

potential solutions developed in the regional planning process.

f) The Transmission Provider shall review and include, as appropriate, all

reasonable expected demand resource, transmission, or generation options

identified by stakeholders.

g) The Transmission Provider shall describe the details regarding expansion

planning methodology, criteria, assumptions and data in the SPP

Transmission Expansion Planning Manual which shall be posted on the

SPP website.

h) In accordance with its NERC reporting requirements, the Transmission

Provider shall publish an annual reliability report that shall include a list of

the following:

i) Regional upgrades required to maintain reliability in accordance

with the NERC Reliability Standards and SPP Criteria;

ii) Zonal upgrades required to maintain reliability in accordance with

more stringent individual Transmission Owner planning criteria;

and

iii) Inter-regional uUpgrades developed with neighboring

Transmission Providers to meet inter-regional needs, including

results from the coordinated system plans.

2) Stakeholder Working Groups

a) The purpose of the stakeholder working groups is to provide technical

advice, assistance and oversight to the Transmission Provider in all

aspects of the regional, sub-regional and local planning process, including

but not limited to:

i) Review and development of coordinated planning among the

Transmission Provider and the Transmission Owners including

accepted Network Upgrades developed by those Transmission

Owners that have their own FERC approved local planning process

to meet local area reliability criteria;

ii) Review and development of regional planning criteria;

iii) Review and development of Available Transfer Capability related

calculation criteria as specified in Attachment C to the Tariff;

iv) Review and development of transmission rating criteria;

v) Compliance with NERC Reliability Standards concerning

transmission assessment, transfer capability and ratings of

transmission facilities; and

vi) Review and Development of the list of transmission needs driven in

whole or in part by Public Policy Requirements for which

transmission solutions will be evaluated.; and

vii) Review of Interregional Projects in accordance with Section IV.6

(e) of this Attachment O.

b) All the stakeholder working group representation shall be appointed and

chaired in accordance with Article 3.0 of the SPP Bylaws. All meetings of

the stakeholder working groups are open to all entities.

c) Voting in the various stakeholder working groups shall conform to Article

3.9 of the SPP Bylaws.

d) The data, information, and technical support necessary for the

Transmission Provider to perform studies as required by the planning

process and to develop the regional reliability projects are provided by the

Transmission Owners, Transmission Customers and Generation

Interconnection Customers and other entities. This process is described in

Section VII of this Attachment O.

e) Stakeholder working groups that work with the Transmission Provider on

transmission planning shall meet at least quarterly and additional

meetings, web conferences and teleconferences shall be scheduled as

needed. Teleconference capability will be made available for stakeholder

working group meetings. Notice of meetings of the stakeholder working

groups shall be posted on the SPP website and distributed via email

distribution lists. Meeting agendas and minutes shall be posted on the SPP

website.

3) Participation by State Regulators

In accordance with the SPP Bylaws, any regulatory agency having utility rates or

services jurisdiction over a Member may participate fully in all SPP planning

activities.

4) Adherence to Regional Planning Criteria

i) The regional planning criteria are comprised of the NERC Reliability

Standards and SPP Criteria.

ii) The regional planning criteria may change from time to time based upon

the then current process for changing reliability criteria.

iii) The individual Transmission Owners shall be obligated under the NERC

Reliability Standards and SPP Criteria to resolve reliability violations and

compliance needs identified by the Transmission Provider or by the

individual Transmission Owners themselves in accordance with these

standards and criteria. The SPP Criteria shall be posted on the SPP

website.

5) Use of Local Planning Criteria

i) Individual Transmission Owners within the SPP Region may develop

company-specific planning criteria that, at a minimum, conform to the

NERC Reliability Standards and SPP Criteria.

ii) For each annual planning cycle, Transmission Owners, including those

Transmission Owners that have their own FERC approved local planning

process, must provide to the Transmission Provider at least once a year, by

April 1st, their company-specific planning criteria in order for the need for

Zonal Reliability Upgrades to be assessed and included in the SPP

Transmission Expansion Plan.

iii) Transmission Owner planning criteria and assumptions may be modified

at any time provided that, if the planning criteria are made more stringent,

the increased requirements will not apply retroactively to studies

previously completed or studies already underway by the Transmission

Provider. Access to the individual Transmission Owner’s planning criteria

shall be made available via an electronic link on the SPP website.

iv) The individual planning criteria of each Transmission Owner, including

those Transmission Owners that have their own FERC approved local

planning process, shall be the basis for determining whether a reliability

violation exists for which a need for a new Zonal Reliability Upgrade

should be considered.

v) The Transmission Owner shall apply its local planning criteria comparably

to all load in its service territory.

vi) Transmission Owners’ company-specific planning criteria and local

planning processes must provide for: (a) the identification of transmission

needs driven in whole or in part by Public Policy Requirements; and (b)

the evaluation of potential solutions to meet those needs.


III. The Integrated Transmission Planning Process

The ITP process is an iterative three-year process that includes 20-Year, 10-Year and Near Term

Assessments. The 20-Year Assessment identifies the transmission projects, generally above

300 kV, and provides a grid flexible enough to provide benefits to the region across multiple

scenarios. The 10-Year Assessment focuses on facilities 100 kV and above to meet the system

needs over a ten-year horizon. The Near Term Assessment is performed annually and assesses

the system upgrades, at all applicable voltage levels, required in the near term planning horizon.

1) Commencement of the Process

At the beginning of each calendar year the Transmission Provider shall notify

stakeholders as to which part(s) of the integrated transmission planning cycle will

take place during that year and the approximate timing of activities required to

develop the SPP Transmission Expansion Plan. Notice of commencement of the

process shall be posted on the SPP website and distributed via email distribution

lists.

2) Transmission Planning Forums

The transmission planning forums include planning summits and sub-regional

planning meetings and these are conducted as follows:

a) Planning Summits

i) The purpose of the planning summits is for the Transmission

Provider and the stakeholders to share current SPP transmission

network issues, develop the study scopes, provide solution

alternatives and review study findings. These summits also

provide an open forum where all stakeholders have an opportunity

to provide advice and recommendations to the Transmission

Provider to aid in the development of the SPP Transmission

Expansion Plan.

ii) The planning summits shall be open to all entities.

iii) The Transmission Provider shall chair and facilitate the planning

summits.

iv) Planning summits shall be held at least semi-annually, including

sub-regional breakout sessions of the SPP Region. Teleconference

capability will be made available for planning summits. Planning

summit web conferences shall be held as needed.

v) Notice of the planning summits and web conferences shall be

posted on the SPP website and distributed via email distribution

lists.

b) Sub-regional Planning Meetings

i) The Transmission Provider shall define sub-regions from time to

time to address local area planning issues.

ii) The purpose of the sub-regional planning meetings is to identify

unresolved local stakeholder issues and transmission solutions at a

more granular level. The sub-regional planning meetings shall

provide stakeholders with local needs the opportunity to provide

advice and recommendations to the Transmission Provider and to

the Transmission Owners. The sub-regional planning meetings

shall provide a forum to review local planning criteria and needs as

specified in Section II of this Attachment O.

iii) The sub-regional planning meetings shall be open to all entities.

iv) The Transmission Provider shall facilitate the sub-regional

planning meetings.

v) A planning meeting shall be held at least annually for each

individual sub-region.

vi) The sub-regional planning meetings shall be held in conjunction

with the stakeholder working group meetings. Teleconference

capability will be made available for sub-regional planning

meetings. Sub-regional planning web conferences shall be held as

needed.

vii) Notice of the sub-regional planning meetings, teleconferences and

web conferences shall be posted on the SPP website and

distributed via email distribution lists.

3) Preparation of the 20-Year Assessment

a) The Transmission Provider shall perform a 20-Year Assessment once

every three years. The timing of this assessment shall generally be in the

first half of each three-year cycle.

b) The 20-Year Assessment shall review the system for a twenty-year

planning horizon and address, at a minimum, facilities 300 kV and above

needed in year 20. This assessment is not intended to review each

consecutive year in the planning horizon. The Transmission Provider

shall work with stakeholders to identify the appropriate year(s) to study in

developing the assessment study scope.

c) The 20-Year Assessment shall assess the cost effectiveness of proposed

solutions over a forty-year time horizon.

d) The Transmission Provider shall develop the assessment study scope with

input from the stakeholders. The study scope shall take into consideration

the input requirements described in Section III.6.

e) The assessment study scope shall specify the methodology, criteria,

assumptions, and data to be used.

f) The Transmission Provider, in consultation with the stakeholder working

groups, shall finalize the assessment study scope.

g) The assessment study scope shall be posted on the SPP website and will

be included in the published annual SPP Transmission Expansion Plan

report. The assessment study scope shall include an explanation of which

transmission needs driven by Public Policy Requirements will be

evaluated for potential solutions in the local and regional transmission

planning process, as well as an explanation of why other suggested

transmission needs will not be evaluated.

h) In accordance with the assessment study scope, the Transmission Provider

shall analyze potential solutions following the process set forth in Section

III.8.

4) Preparation of the 10-Year Assessment

a) The Transmission Provider shall perform a 10-Year Assessment once

every three years as part of the three year planning cycle. The timing of

this assessment shall generally be in the second half of the three-year

planning cycle.

b) The 10-Year Assessment shall review the system for a ten-year planning

horizon and address, at a minimum, facilities 100 kV and above needed in

year 10. This assessment is not intended to review each consecutive year

in the planning horizon. The Transmission Provider shall work with

stakeholders to identify the appropriate year(s) to study in developing the

assessment study scope.

c) The 10-Year Assessment shall assess the cost effectiveness of proposed

solutions over a forty-year time horizon.

d) The Transmission Provider shall develop the assessment study scope with

input from the stakeholders. The study scope shall take into consideration

the input requirements described in Section III.6.

e) The assessment study scope shall specify the methodology, criteria,

assumptions, and data to be used.

f) The Transmission Provider, in consultation with the stakeholder working

groups, shall finalize the assessment study scope.

g) The assessment study scope shall be posted on the SPP website and will







h) In accordance with the assessment study scope, the Transmission Provider

shall analyze potential solutions, including those upgrades approved by the

SPP Board of Directors from the most recent 20-Year Assessment,

following the process set forth in Section III.8.

5) Preparation of the Near Term Assessment

a) The Transmission Provider shall perform the Near Term Assessment on an

annual basis.

b) The Near Term Assessment will be performed on a shorter planning

horizon than the 10-Year Assessment and shall focus primarily on

identifying solutions required to meet the reliability criteria defined in

Section III.6.

c) The assessment study scope shall specify the methodology, criteria,

assumptions, and data to be used to develop the list of proposed near term

upgrades.

d) The Transmission Provider, in consultation with the stakeholder working

groups, shall finalize the assessment study scope. The study scope shall

take into consideration the input requirements described in Section III.6.

e) The assessment study scope shall be posted on the SPP website and will







f) In accordance with the assessment study scope, the Transmission Provider

shall analyze potential solutions, including those upgrades approved by the

SPP Board of Directors from the most recent 20-Year Assessment and 10-

Year Assessment, following the process set forth in Section III.8.

6) Policy, Reliability, and Economic Input Requirements to Planning Studies

The Transmission Provider shall incorporate, as appropriate for the assessment

being performed, the following into its planning studies:

a) NERC Reliability Standards;

b) SPP Criteria;

c) Transmission Owner-specific planning criteria as set forth in Section II;

d) Previously identified and approved transmission projects;

e) Zonal Reliability Upgrades developed by Transmission Owners, including

those that have their own FERC approved local planning process, to meet

local area reliability criteria;

f) Long-term firm Transmission Service;

g) Load forecasts, including the impact on load of existing and planned

demand management programs, exclusive of demand response resources;

h) Capacity forecasts, including generation additions and retirements;

i) Existing and planned demand response resources;

j) Congestion within SPP and between the SPP Region and other regions and

balancing areas;

k) Renewable energy standards;

l) Fuel price forecasts;

m) Energy efficiency requirements;

n) Other relevant environmental or government mandates;

o) Transmission needs driven by Public Policy Requirements identified by

the Transmission Provider and stakeholders; and

p) Other input requirements identified during the stakeholder process.

q) In developing the long term capacity forecasts, the studies will reflect

generation and demand response resources capable of providing any of the

functions assessed in the SPP planning process, and can be relied upon on

a long-term basis. Such demand response resources shall be permitted to

participate in the planning process on a comparable basis. These studies

will consider operational experience gained from markets operated by the


7) Inclusion of Upgrades Related to Transmission Service and Generator

Interconnection in Planning Studies

a) Transmission upgrades related to requests for Transmission Service are

described in Sections 19 and 32 of the Tariff and Attachment Z1 to the

Tariff. These upgrades are included as part of the future expansion of the

Transmission System, upon the execution of the various Service

Agreements with the Transmission Customers. Transmission upgrades

related to an approved request for Transmission Service may be deferred

or supplemented by other upgrades based upon the results of subsequent

studies. Changes in planned upgrades do not remove the obligation of the

Transmission Provider to have adequate transmission facilities available to

start or continue the approved Transmission Service.

b) Interconnection facilities and other transmission upgrades related to

requests for generation interconnection service are described in

Attachment V. These upgrades are included as part of the future

expansion of the Transmission System upon the execution of the various

interconnection agreements with the Generation Interconnection

Customers. Transmission upgrades related to an approved interconnection

agreement may be deferred or supplemented by other upgrades based upon

the results of subsequent studies. Changes in planned upgrades do not

remove the obligation of the Transmission Provider to have adequate

transmission facilities available to start or continue the approved

interconnection service.

c) The studies performed under this Section III of Attachment O shall

accommodate and model the specific long-term firm Transmission Service

of Transmission Customers and specific interconnections of Generation

Interconnection Customers no later than when the relevant Service

Agreements and interconnection agreements are accepted by the

Commission.

8) Process to Analyze Transmission Alternatives for each Assessment

The following shall be performed, at the appropriate time in the respective

planning cycle, for the 20-Year Assessment, 10-Year Assessment and Near Term

Assessment studies:

a) The Transmission Provider shall perform the required studies to analyze

the potential alternatives for improvements to the Transmission System,

provided by the Transmission Provider and by the stakeholders, in order to

address the final assessment study scope agreed to with the stakeholders.

This analysis shall consider the current and anticipated future needs of the

SPP Region within the parameters of the study scope. The analysis shall

also consider the value brought to the SPP Region by incremental changes

to the proposed solutions.

b) For all potential alternatives provided by the stakeholders, including

reliability upgrades that Transmission Owners (which includes those

Transmission Owners that have their own FERC approved local planning

process), propose to address violations of company-specific planning

criteria pursuant to Section II.5 of this Attachment O, and upgrades to

address transmission needs driven in whole or in part by identified Public

Policy Requirements, the Transmission Provider shall determine if there is

a more comprehensive regional solution to address the reliability needs,

economic needs, and needs driven by Public Policy Requirements

identified in the assessment.

c) In addition to recommended upgrades, the Transmission Provider will

consider, on a comparable basis, any alternative proposals which could

include, but would not be limited to, generation options, demand response

programs, “smart grid” technologies, and energy efficiency programs.

Solutions will be evaluated against each other based on a comparison of

their relative effectiveness of performance and economics.

d) The Transmission Provider shall assess the cost effectiveness of proposed

solutions. Such assessments shall be performed in accordance with the

Integrated Transmission Planning Manual, which shall be developed by

the Transmission Provider, in consultation with stakeholders, and

approved by the Markets and Operations Policy Committee. SPP shall

post this manual on its website.

e) The analysis described above shall take into consideration the following:

i) The financial modeling time frame for the analysis shall be 40

years (with the last 20 years provided by a terminal value).

ii) The analysis shall include quantifying the benefits resulting from

dispatch savings, loss reductions, avoided projects, applicable

environmental impacts, reduction in required operating reserves,

interconnection improvements, congestion reduction, and other

benefit metrics as appropriate.

iii) The analysis shall identify and quantify, if possible, the benefits

related to any proposed transmission upgrade that is required to

meet any regional reliability criteria.

iv) The analysis scope shall include different scenarios to analyze

sensitivities to load forecasts, wind generation levels, fuel prices,

environmental costs, and other relevant factors. The Transmission

Provider shall consult the stakeholders to guide the development of

these scenarios.

v) The results of the analysis shall be reported on a regional, zonal,

and state-specific basis.

vi) The analysis shall assess the net impact of the transmission plan,

developed in accordance with this Attachment O, on a typical

residential customer within the SPP Region and on a $/kWh basis.

f) The Transmission Provider shall make a comprehensive presentation of

the preferred potential solutions, including the results of the analysis

above, to the stakeholder working groups and at a planning summit

meeting or web conference. The presentation shall include a discussion of

all the Transmission Provider and stakeholder alternatives considered and

reasons for choosing the particular preferred solutions.

g) The Transmission Provider shall solicit feedback on the solutions from the

stakeholder working groups and through the stakeholders attending the

various planning summits. The Transmission Provider will also include

feedback from stakeholders through other meetings, teleconferences, web

conferences, and via email or secure web-based workspace. Stakeholders

may propose any combination of demand resources, transmission, or

generation as alternate solutions to identified reliability and economic

needs.

h) Upon consideration of the results of the cost effectiveness analysis and

feedback received in the subsequent review process, the Transmission

Provider shall prepare a draft list of projects for review and approval in

accordance with Section V.


IV. Other Planning Studies

1) Sponsored Upgrade Studies

Any entity may request that a Sponsored Upgrade be built. SPP will evaluate the

impact of any Sponsored Upgrade on Transmission System reliability and identify

any necessary mitigation of these impacts. Such entity must be willing to assume

the cost of such Sponsored Upgrade, study costs, and any cost associated with

such necessary mitigation. The proposed Sponsored Upgrade will be submitted to

the proper stakeholder working group for their review as a part of the

transmission planning process.

2) High Priority Studies

a) The Transmission Provider shall perform high priority studies in

accordance with this Attachment O and the Transmission Network

Economic Modeling & Methods manual which shall be maintained on the

SPP website.

b) Potential Balanced Portfolios, as developed through the process specified

in Section IV.3, shall be considered to be high priority studies.

c) The stakeholders may request high priority studies, including a request for

the Transmission Provider to study potential upgrades or other

investments necessary to integrate any combination of resources, whether

demand resources, transmission, or generation, identified by the

stakeholders. Annually, the costs of up to three high priority studies

requested by the stakeholders and performed by the Transmission Provider

shall be recovered pursuant to Schedule 1-A of this Tariff. A high priority

study of a potential Balanced Portfolio initiated by the Transmission

Provider will not be considered a stakeholder request pursuant to this

Section IV.2.c.

d) The Transmission Provider, in consultation with the stakeholders, shall

develop the scope for each high priority study and post the scope(s) on the

SPP website.

e) Each study shall include:

i) Quantification of benefits and costs in accordance with this

Attachment O and the Transmission Network Economic Modeling

and Methods manual; and

ii) An analysis of the sensitivity of the economics of the upgrades

included in the high priority study to changes in assumptions.

f) The Transmission Provider shall solicit input from the stakeholders and

the Regional State Committee regarding the appropriate sensitivity

analyses to be performed.

g) For each high priority study the Transmission Provider shall publish a

report, including but not limited to, the study input assumptions, the

estimated cost of the upgrades, any third party impacts, the expected

economic benefits of the upgrades, and identify reliability impacts, if any,

of the upgrades. The report and related studies and the criteria,

assumptions and data underlying the report shall be posted on the SPP

website, with password protected access if required to preserve the

confidentiality of information in accordance with the provisions of the

Tariff and the SPP Membership Agreement and to address Critical Energy

Infrastructure Information (CEII) requirements. The CEII compliant

redacted version of the report shall be posted on the SPP website. The

redacted version shall include instructions for acquiring the complete

version of the report.

h) The Transmission Provider may recommend, based on the results of a high

priority study, a high priority upgrade for inclusion in the SPP

Transmission Expansion Plan in accordance with the approval process set

forth in Section V.

3) Evaluation of Potential Balanced Portfolios

a) The Transmission Provider shall solicit input from stakeholders on

combinations of potential economic upgrades to be evaluated as potential

Balanced Portfolios.

b) Each economic upgrade to be included in a potential Balanced Portfolio:

i) Must include a 345 kV or higher voltage facility;

ii) May include lower voltage transmission facilities needed to

integrate the 345 kV or higher facilities and achieve the benefits;

however, the cost of the lower voltage transmission facilities

cannot exceed the cost of the 345 kV or higher facilities included

in the economic upgrade; and

iii) An economic upgrade that includes lower voltage transmission

facilities for which the cost of such facilities exceeds the cost of

the 345 kV or higher facilities constituting the economic upgrade

may be included in the evaluation of a potential Balanced

Portfolio, if a Project Sponsor agrees to bear the portion of the cost

of the lower voltage facilities that is in excess of the cost of the 345

kV or higher facilities.

iv) Will include an evaluation of the costs of the upgrades, including

any cost impacts potentially allocable to the Transmission Provider

or a Zone(s) from third party upgrade(s) required to relieve

congestion on a neighboring system due to the construction of the

potential Balanced Portfolio.

c) The Transmission Provider shall determine for each Zone the net present

value of the revenue requirements of each potential Balanced Portfolio as

follows:

i) The revenue requirements for each potential Balanced Portfolio

shall be calculated as if all of the upgrades associated with the

potential Balanced Portfolio are simultaneously available to the

power system. This requirement is for evaluation purposes only

and shall not restrict the timing of the construction of individual

upgrades within a Balanced Portfolio approved by the SPP Board

of Directors.

ii) Based on input from the Transmission Owners and other pertinent

information, the Transmission Provider shall estimate the

construction costs of each upgrade in the potential Balanced

Portfolio.

iii) For each upgrade in the potential Balanced Portfolio, the

Transmission Provider shall use the transmission fixed charge

rate(s) for the appropriate Transmission Owner(s) to estimate the

revenue requirements. In each annual planning cycle, the

Transmission Owner shall supply its fixed charge rate to the


iv) The fixed charge rate(s) shall take account of all costs necessary to

support the upgrade in the potential Balanced Portfolio, including

but not limited to, operation and maintenance expenses,

depreciation, property and payroll taxes, income taxes, if

applicable, return on investment and any other factors affecting the

revenue requirement associated with the upgrade.

v) The revenue requirements also shall include any specific costs that

are projected to be incurred by the Transmission Provider or a

Zone(s) as a result of third-party impacts due to one or more

upgrades within a proposed Balanced Portfolio.

vi) The revenue requirements for the potential Balanced Portfolio shall

equal the sum of the revenue requirements of the upgrades that

comprise the potential Balanced Portfolio.

vii) The Transmission Provider shall estimate the cost for each Zone by

allocating the revenue requirements for the potential Balanced

Portfolio to each Zone based on its Region-wide Load Ratio Share

forecasted over the ten year period analyzed.

viii) If any costs of an upgrade in the potential Balanced Portfolio will

be borne by other funding mechanisms, such costs shall not be

included in the determination of the net present value of the

revenue requirements for the potential Balanced Portfolio.

d) The Transmission Provider shall determine for each Zone the net present

value of the benefits of each potential Balanced Portfolio as follows:

i) The benefits from each potential Balanced Portfolio shall be

calculated as if all of the upgrades associated with the potential

Balanced Portfolio are simultaneously available to the power

system.

ii) The Transmission Provider shall use an adjusted production cost

metric to analyze the benefits of the potential Balanced Portfolio,

where adjusted production cost is the production cost minus

revenues from sales plus cost of purchases. As described in

Section IV.5 of this Attachment O, the Transmission Provider shall

continue to evaluate and explore with the stakeholders any

additional metrics and criteria which have quantifiable economic

effects.

iii) The adjusted production cost benefit for each Zone shall equal the

difference between the adjusted production cost with the potential

Balanced Portfolio modeled and without the potential Balanced

Portfolio modeled.

iv) The Transmission Provider shall estimate the annual benefits for

each Zone over the same ten-year period as used to determine the

costs by calculating the annual benefits for at least three specific

years in the ten-year time period and interpolating the annual

benefits for the remaining years.

e) A potential Balanced Portfolio shall meet the following conditions:

i) Cost Beneficial: The sum of the benefits of the potential Balanced

Portfolio determined in Section IV.3.d must equal or exceed the

sum of the costs determined in Section IV.3.c; and

ii) Balanced: For each Zone, the sum of the benefits of the potential

Balanced Portfolio determined in Section IV.3.d must equal or

exceed the sum of the costs determined in Section IV.3.c.

Additionally, the balance may be achieved through the provisions

set forth in Section IV.4.

f) In developing a potential Balanced Portfolio, the Transmission Provider

shall timely publish a report, including but not limited to, the study input

assumptions, the estimated costs included in the potential Balanced

Portfolio, and the expected economic benefits of the potential Balanced

Portfolio. With regard to such report, the Transmission Provider shall

comply with the information sharing and reporting requirements in Part

VII (Information Exchange) and Section IV.2 (High Priority Studies) of

this Attachment O, including the requirements for treatment of

confidential information.

4) Options for Achieving a Balanced Portfolio

a) Section IV.3 of this Attachment O sets forth provisions to achieve a

Balanced Portfolio when there are deficient Zones. A deficient Zone is a

Zone where the costs allocated to the Zone in Section IV.3.c exceed the

benefits allocated to the Zone in Section IV.3.d, including any additional

costs or benefits derived from the application of the provisions in this

Section IV.4.

b) In order to achieve a Balanced Portfolio, the Transmission Provider may

include transmission upgrades that do not adhere to the voltage

requirements of Sections IV.3.b.i and ii of this Attachment O.

c) If including the lower voltage transmission facilities does not achieve a

Balanced Portfolio, the Transmission Provider may balance the portfolio

by transferring a portion of the Base Plan Zonal Annual Transmission

Revenue Requirement and/or the Zonal Annual Transmission Revenue

Requirement from the deficient Zone(s) to the Balanced Portfolio Region-

wide Annual Transmission Revenue Requirement. Transmission Provider

shall include the following constraints in this assessment:

i) Limit the amount to be transferred from the Base Plan Zonal

Annual Transmission Revenue Requirement and/or the Zonal

Annual Transmission Revenue Requirement to the Balanced

Portfolio Region-wide Annual Transmission Revenue Requirement

to the minimum amount that will balance the portfolio over the

ten-year period analyzed;

ii) Transfer from the Base Plan Zonal Annual Transmission Revenue

Requirement first, then, if necessary, transfer from the Zonal

Annual Transmission Revenue Requirement; and

iii) For each Zone, meet the conditions specified in Section IV.3.e.ii of

this Attachment O.

5) Development of Additional Benefit Metrics for Balanced Portfolios

a) The Transmission Provider shall continue to evaluate and explore with the

stakeholders via the transmission planning process any additional metrics

and criteria which have quantifiable economic effects, such as:

i) Reduction in system losses;

ii) Differing environmental impacts;

iii) Improvement to capacity margin and operating reserve

requirements;

iv) Energy, capacity and ancillary service market facilitation;

v) Increased competition in wholesale markets;

vi) Reliability enhancement, including storm hardening and black start

capability; and

vii) Critical infrastructure and homeland security.

b) Any subsequent adjustment to the metrics and criteria for evaluating

potential Balanced Portfolios developed by the Transmission Provider,

with input from the stakeholders, shall be proposed through Tariff

amendments.

6) Evaluation of Proposed Interregional Projects

a) Proposed Interregional Projects shall be developed through the

Transmission Provider’s participation in an Interregional Planning Process

with one or more Interregional Planning Regions in accordance with the

provisions of Section VIII of this Attachment O.

b) The Transmission Provider shall facilitate a regional review of the

proposed Interregional Projects identified in the Coordinated System Plan

(“CSP”) report developed and issued by the Joint Planning Committee

pursuant to the applicable Interregional Planning Process. The regional

review will be subject to the timelines identified in the respective

Interregional Planning Region procedures providedin accordance with in

the applicable Addendum(s) to this Attachment O.

c) The Transmission Provider shall, in consultation with stakeholders,

develop the regional review methodology which shall be posted on the

Transmission Provider’s website. The methodology will contain, at a

minimum, the specific procedures to:

i. Determine the assumptions and criteria necessary to

complete the regional review of proposed Interregional Projects.

ii. Determine the regional models to be used in the evaluation

of the proposed Interregional Projects.

iii. Determine the appropriate updates to the regional models to

be used in the evaluation of the proposed Interregional Projects.

iv. Quantify the benefits of theeach proposed Interregional

Project using the Transmission Provider’s regional benefit metrics

consistent with Section III.6 of this Attachment O.

d) For each regional review of a proposed Interregional Project, the

Transmission Provider shall publish a report which includes, but is not

limited to, the following:

i. The results of the regional review analysis and a

comparison to the results contained in the CSP report;

ii. The study input assumptions and criteria used to assess the

proposed Interregional Project;

iii. The proposed Interregional Project’s reliability impacts on

the Transmission Provider’s system and impacts on third parties

not participating in the applicable Interregional Planning Process;

iv. Any expected economic and reliability benefits of the

proposed Interregional Project; and

v. The Transmission Provider shall make a recommendation

whether to approve the proposed Interregional Project and the

allocation of proposed Interregional Project costs between the

Interregional Planning Regions.

e) The Transmission Provider’s report shall be posted on the

Transmission Provider’s website., If the Transmission Provider’s report

contains confidential information with password protected access if

required to preserve the confidentiality of information in accordance with

the provisions of the Tariff, the SPP Membership Agreement, andor

Critical Energy Infrastructure Information (“CEII”) requirements the

report will be password protected to preserve the confidentiality of

information. and a redacted version of the report shall be posted on the

Transmission Provider’s website. The redacted version shall include

instructions for acquiring the complete version of the report.

f) The Transmission Provider’s report shall be reviewed by the

appropriate stakeholder group(s) in accordance with the provisions of

Section II of Attachment O. The stakeholder group(s) and the

Transmission Provider will each provide a recommendation to the Markets

and Operations Policy Committee. The Markets and Operations Policy

Committee shall make a recommendation to the SPP Board of Directors

regarding the approval of a proposed Interregional Projectmay endorse a

report and recommendation for approval by the SPP Board of Directors.

g) The SPP Board of Directors shall review all reports and

recommendations related to the regional review of the proposed

Interregional Project.

i. In order for tThe SPP Board of Directors tomay approve a

proposed Interregional Project, only where the regional benefits

must equal or exceed the regional costs for the SPP Region.

ii. The Transmission Provider shall notify the applicable

interregional Jjoint Pplanning Ccommittee whether a proposed

Interregional Project has been approved by the SPP Board of

Directors.

h) To qualify as an approved Interregional Project, the proposed

Interregional Project must be approved by the SPP Board of Directors and

the corresponding Interregional Planning Region in accordance with the

applicable Interregional Planning Process.

i) Upon approval by the corresponding Interregional Planning

Region and the Transmission ProviderSPP Board of Directors, the

Transmission Provider’s portion of the approved Interregional Project will

be constructed in accordance with Section VI of this Attachment O.


V. The SPP Transmission Expansion Plan

The SPP Transmission Expansion Plan shall be a comprehensive listing of all

transmission projects in the SPP for the twenty-year planning horizon. Projects included

in the SPP Transmission Expansion Plan are: 1) upgrades required to satisfy requests for

Transmission Service; 2) upgrades required to satisfy requests for generation

interconnection; 3) approved projects from the 20-Year Assessment, 10-Year Assessment

and Near Term Assessment (ITP Upgrades); 4) upgrades within approved Balanced

Portfolios; 5) approved high priority upgrades; and 6) endorsed Sponsored Upgrades; and

7) approved Interregional Projects. A specific endorsed Sponsored Upgrade will be

included in the Transmission System planning model upon execution of a contract that

financially commits a Project Sponsor to such upgrade or when such upgrade is otherwise

funded pursuant to the Tariff. An approved Interregional Project will be included in the

Transmission System Pplanning model upon approval for construction in accordance

with Section IV.6 of this Attachment O. To be included in the SPP Transmission

Expansion Plan, each project must have been endorsed or approved through its proper

process. This Section V describes the process used to approve or endorse the specific

upgrades identified in 20-Year, 10-Year and Near Term Assessments, high priority

upgrades, and Balanced Portfolios.

1) Development of the Recommended Set of Upgrades from Planning

Studies

a) Upon completion of the analysis, studies and stakeholder review

and comment on the results in accordance with Sections III and IV

of this Attachment O, the Transmission Provider shall prepare a

draft list of all projects for review by the stakeholders. The

Transmission Provider shall post the draft project list on the SPP

website and shall identify the assessment process with which they

are associated.

b) Upon posting of the draft project list, the Transmission Provider

shall invite written comments to be submitted to the Transmission

Provider.

c) The Transmission Provider shall review the draft project list with

the stakeholder working groups and the Regional State Committee.

d) Considering the input from the stakeholders through this review

process, the Transmission Provider shall prepare a recommended

list of proposed ITP Upgrades based upon the analysis as described

in Section III, upgrades within proposed Balanced Portfolios, and

proposed high priority upgrades for review and approval.

2) Disclosure of the Recommended Set of Upgrades and Supporting

Information from Planning Studies

a) The Transmission Provider shall disclose planning information,

which includes the recommended list of proposed upgrades and the

underlying studies, by providing:

i) All stakeholders equal access, notice and opportunity to

participate in planning summits, the stakeholder working

group meetings and the sub-regional planning meetings as

well as any associated web conferences or teleconferences

as set forth in Section II of this Attachment O; and

ii) For the contemporaneous availability of such meeting

handouts on the SPP website.

b) The related study results, criteria, assumptions, analysis results,

and data underlying the studies used to develop the proposed ITP

Upgrades, the list of upgrades within proposed Balanced

Portfolios, and proposed high priority upgrades shall be posted on

the SPP website, with password protected access if required to

preserve the confidentiality of information in accordance with the

provisions of the Tariff and the SPP Membership Agreement and

to address CEII requirements. Additionally, Transmission Owner

specific local plans and criteria shall be accessible via an electronic

link on the SPP website in accordance with Section VII of this

Attachment O. The CEII compliant redacted version of the SPP

Transmission Expansion Plan and individual Transmission Owner

specific local plans shall be posted on the SPP website. Redacted

versions shall include instructions for acquiring the complete

version of the SPP Transmission Expansion Plan and individual

Transmission Owner specific local plans. An electronic link shall

be provided on the SPP website by which stakeholders may send

written comments on the SPP Transmission Expansion Plan and

Transmission Owner specific local plans and criteria.

3) Approval and Endorsement Process

a) The Markets and Operations Policy Committee shall make a

recommendation regarding the approval of ITP Upgrades.

Approval by the SPP Board of Directors is required for the

inclusion of ITP Upgrades in the SPP Transmission Expansion

Plan.

b) The Markets and Operations Policy Committee shall make a

recommendation regarding the inclusion of a proposed Balanced

Portfolio in the SPP Transmission Expansion Plan. Approval by

the SPP Board of Directors is required for inclusion of a Balanced

Portfolio in the SPP Transmission Expansion Plan. SPP is not

required to have a Balanced Portfolio each year.

c) If the SPP Board of Directors approves a list of ITP Upgrades,

upgrades within Balanced Portfolios, or high priority upgrades

other than those recommended by the Markets and Operations

Policy Committee, the explanation for the deviation shall be

included in the SPP Transmission Expansion Plan.

d) The Markets and Operations Policy Committee shall make a

recommendation regarding the approval of a high priority upgrade

recommended by the Transmission Provider. Approval by the SPP

Board of Directors is required for the inclusion of a high priority

upgrade in the SPP Transmission Expansion Plan.

e) The Markets and Operations Policy Committee shall make a

recommendation regarding endorsement of a proposed Sponsored

Upgrade. Endorsement by the SPP Board of Directors is required

for the inclusion of a Sponsored Upgrade in the SPP Transmission

Expansion Plan.

f) The list of projects shall be posted on the SPP website by the

Transmission Provider. The Transmission Provider shall, in

addition to the posting, e-mail notice of such posting to the

stakeholders at least ten days prior to a meeting at which the SPP

Board of Directors is expected to take action on accepting or

modifying the list.

g) The list of approved ITP Upgrades, upgrades within approved

Balanced Portfolios, approved high priority upgrades, and

endorsed Sponsored Upgrades may be modified throughout the

year by the SPP Board of Directors provided that such action shall

be posted and noticed pursuant to this section.

h) The list of upgrades for Transmission Service are approved in

accordance with the provisions of Attachment Z1 and included in

the STEP accordingly.

i) The list of interconnection facilities and other transmission

upgrades related to requests for generation interconnection service

are approved in accordance with the provisions of Attachment V

and included in the STEP accordingly.

j) The list of approved Interregional Projects is approved in

accordance with Section IV.6 of this Attachment O and is included

in the STEP accordingly.

k) The SPP Transmission Expansion Plan shall be presented to the

SPP Board of Directors at least once a year. Approval of the ITP

Upgrades, Balanced Portfolios, and high priority upgrades, and the

endorsement of the other projects contained in the SPP

Transmission Expansion Plan by the SPP Board of Directors shall

certify a regional plan for meeting the transmission needs of the

SPP Region.

4) Updates to the SPP Transmission Expansion Plan

a) Modifications to the SPP Transmission Expansion Plan may be

made between the annual approvals as required to maintain system

reliability and to meet new business opportunities as they are

identified.

b) The Transmission Provider shall work with the stakeholders on an

on-going basis throughout the year analyzing any newly identified

issues and incorporating any necessary adjustments to the SPP

Transmission Expansion Plan on an out of cycle basis.

c) On a quarterly basis, the Transmission Provider shall post any

modifications to the SPP Transmission Expansion Plan on the SPP

website.

d) The modifications shall be reviewed by the stakeholders and the

Regional State Committee, endorsed by the stakeholder working

groups, and approved or endorsed by the SPP Board of Directors,

in accordance with Section V of this Attachment O.

5) Removal of an Upgrade from the SPP Transmission Expansion Plan.

The Transmission Provider, in consultation with the stakeholders in

accordance with Section V of this Attachment O, may remove an upgrade

from an approved SPP Transmission Expansion Plan. A Transmission

Owner that has incurred costs related to the removed upgrade shall be

reimbursed for any expenditure pursuant to Section VIII of Attachment J

to the Tariff.

6) Status of Upgrades Identified in the SPP Transmission Expansion Plan

a) The Transmission Provider shall track the status of planned system

upgrades to ensure that the projects are built in time or that

acceptable mitigation plans are in place to meet customer and

system needs.

b) On a quarterly basis, at a minimum, the Transmission Provider

shall:

i) Report to the Markets and Operations Policy Committee,

the Regional State Committee and the SPP Board of

Directors on the status of the upgrades identified in the SPP

Transmission Expansion Plan; and

ii) Post the status of the upgrades on the SPP website.


VI. Construction of Transmission Facilities

1) The Transmission Provider shall not build or own transmission facilities. The

Transmission Provider, with input from the Transmission Owners and other

stakeholders, shall designate in a timely manner within the SPP Transmission

Expansion Plan (“STEP”) one or more Transmission Owners to construct, own,

and/or finance each project in the plan.

2) Any owner of Transmission Facilities, as defined in Attachment AI of this Tariff,

which are or are capable of being used by the Transmission Provider to provide

transmission service pursuant to Part II and Part III of this Tariff, shall have the

right to sign the SPP Membership Agreement as a Transmission Owner and

thereby acquire all of the rights and obligations of a Transmission Owner

described therein, including all of the rights and obligations of a Transmission

Owner described in this Tariff and specifically this Section VI. Each

Transmission Owner and every other entity designated to construct a project by

the Transmission Provider pursuant to this Section VI shall use due diligence to

construct transmission facilities as directed by the SPP Board of Directors subject

to such siting, permitting, and environmental constraints as may be imposed by

state, local and federal laws and regulations, and subject to the receipt of any

necessary federal or state regulatory approvals. Such construction shall be

performed in accordance with Good Utility Practice, applicable SPP Criteria,

industry standards, the applicable Transmission Owner’s specific reliability

requirements and operating guidelines (to the extent these are not inconsistent

with other requirements), and in accordance with all applicable requirements of

federal or state regulatory authorities. Each Transmission Owner shall be fully

compensated to the greatest extent permitted by the Commission for the costs of

construction undertaken by such Transmission Owner in accordance with this

Tariff.

3) A specific endorsed Sponsored Upgrade in the SPP Transmission Expansion Plan

will be deemed approved for construction upon execution of a contract that

financially commits a Project Sponsor to such upgrade.

4) After a new transmission project is (i) approved under the SPP Transmission

Expansion Plan; or (ii) an approved as an Interregional Project with a portion to

be constructed within the SPP Region in accordance with Section IV.6 (i) of this

Attachment O; or (iii) required pursuant to a Service Agreement; or (ivii) required

by a generation interconnection agreement to be constructed by a Transmission

Owner(s) other than the Transmission Owner that is a party to the generation

interconnection agreement, the Transmission Provider shall direct the appropriate

Transmission Owner(s) to begin implementation of the project for which financial

commitment is required prior to the approval of the next update of the SPP

Transmission Expansion Plan. At the discretion of the SPP Board of Directors,

the Transmission Provider may direct the appropriate Transmission Owner(s) to

begin implementation of other such approved or required transmission projects for

which financial commitment is not required prior to approval of the next SPP

Transmission Expansion Plan. The direction from the Transmission Provider

shall be provided in writing to the Transmission Owner(s) designated to construct

the project (“Designated Transmission Owner(s)”). The written notification to the

Designated Transmission Owner(s) shall include but not be limited to: (1) the

specifications of the project required by the Transmission Provider and (2) a

reasonable project schedule, including a project completion date (“Notification to

Construct”). If the project forms a connection with facilities of a single

Transmission Owner, that Transmission Owner shall be designated to construct

the project. If the project forms a connection with facilities owned by multiple

Transmission Owners, the applicable Transmission Owners will be designated to

provide their respective new facilities. If there is more than one Transmission

Owner designated to construct a project, the Designated Transmission Owners

will agree among themselves which part of the project will be provided by each

entity. If the Designated Transmission Owners cannot come to a mutual

agreement regarding the assignment and ownership of the project the

Transmission Provider will facilitate their discussion. Each project or segment of

a project being built by a single Designated Transmission Owner shall be

considered a separate project for purposes of Section VI.6 and each Designated

Transmission Owner will receive a separate Notification to Construct for each

project or segment of a project they are responsible to construct.

5) Network Upgrade(s) and Distribution Upgrades (as defined in Attachment V to

the Tariff) identified in a generation interconnection agreement will be

constructed pursuant to the generation interconnection agreement or pursuant to

Section VI.4 of this Attachment O. Network Upgrades and Distribution Upgrades

(as defined in Attachment V to the Tariff) identified in a generation

interconnection agreement required to be constructed by the Transmission Owner

who is a party to the generation interconnection agreement shall be constructed

pursuant to the generation interconnection agreement. All other Network

Upgrades and Distribution Upgrades (as defined in Attachment V to the Tariff)

identified in a generation interconnection agreement to be constructed by

Transmission Owners not a party to the generation interconnection agreement

shall be constructed pursuant to Section VI.4 of this Attachment O.

6) In order to maintain its right to construct the project, the Designated Transmission

Owner shall respond within ninety (90) days after the receipt of the Notification

to Construct with a written commitment to construct the project as specified in the

Notification to Construct or a proposal for a different project schedule and/or

alternative specifications in its written commitment to construct (“Designated

Transmission Owner’s proposal”). The Transmission Provider shall respond to

the Designated Transmission Owner’s proposal within ten (10) days of its receipt

of the proposal. If the Transmission Provider accepts the Designated

Transmission Owner’s proposal, the Notification to Construct will be modified

according to the accepted proposal and the Designated Transmission Owner shall

construct the project in accordance with the modified Notification to Construct. If

the Transmission Provider rejects the Designated Transmission Owner’s proposal,

the Designated Transmission Owner’s proposal shall not be deemed an acceptable

written commitment to construct the project. However, the Transmission

Provider’s rejection of such proposal shall not preclude a Designated

Transmission Owner from providing a written commitment to construct the

project after such rejection, provided the subsequent written commitment to

construct the project is made within the ninety day time period after the issuance

of the Notification to Construct.

If a Designated Transmission Owner does not provide an acceptable written

commitment to construct within the ninety (90) day period, the Transmission

Provider shall solicit and evaluate proposals for the project from other entities and

select a replacement designated provider. The Transmission Provider shall solicit

proposals from entities that meet certain specified legal, regulatory, technical,

financial and managerial qualifications, specifically including the following:

i) Entities that have obtained all state regulatory authority necessary to

construct, own and operate transmission facilities within the state(s) where

the project is located,

ii) Entities that meet the creditworthiness requirements of the Transmission

Provider,

iii) Entities that have signed or are capable and willing to sign the SPP

Membership Agreement as a Transmission Owner upon the selection of its

proposal to construct and own the project, and

iv) Entities that meet such other technical, financial and managerial

qualifications as are specified in the Transmission Provider’s business

practices.

The Transmission Provider shall evaluate each proposal with regard to the cost,

reliability and timeliness of the proposed construction of the project and shall

make a recommendation to the Board of Directors. The Board of Directors shall

thereafter select an entity making a proposal and arrange for that entity to

construct the project and become the Designated Transmission Owner.

At any time, a Designated Transmission Owner may elect to arrange for another

entity or another existing Transmission Owner to build and own all or part of the

project in its place subject to the qualifications in Subsections i, ii, iii, and iv

above.

Nothing in this Section VI.6 shall relieve a Transmission Owner of its obligation

to construct an upgrade as specified in Section VI.2 of this Attachment O and

Section 3.3(a) of the SPP Membership Agreement in the event that no other

qualified entity can be found to construct the project.


VII. Information Exchange

1) Data Requirements

a) Any entity that is subject to the NERC Reliability Standards is

required to provide data to the Transmission Provider in

accordance the NERC Reliability Standards for Modeling, Data

and Analysis (the “NERC MOD Standards”).

b) When an entity has developed a preliminary engineering concept

for new facilities that impact the interconnected operation of the

Transmission System, it shall contact the Transmission Provider so

that the optimal integration of any new facilities and potentially

benefiting parties can be identified.

c) In preparation for the annual update of transmission planning

models for each annual planning cycle, Members, Transmission

Customers, Transmission Owners, Generation Interconnection

Customers and all other stakeholders must provide to the

Transmission Provider the data specified in this Section VII.

d) During the course of the annual planning cycle, if material changes

to the data occur, the data owners must provide timely written

notice to the Transmission Provider.

e) The format required to submit modeling data shall be posted on the

SPP website.

f) The modeling data shall be posted on the SPP website with

password protected access.

2) Owners of transmission facilities shall provide to the Transmission

Provider:

a) Modeling data for power flow, short-circuit and stability analysis;

b) Detailed power system models of their transmission systems and

provide updates to their models via a password protected web

based application;

c) Data regarding the design and operation of their transmission

facilities;

d) Their FERC Form 715;

e) Their individual company-specific planning criteria;

f) Planning grade cost estimates and schedules for upgrades in the

SPP Transmission Expansion Plan in a timely manner;

g) Their five-year transmission construction plans; and

h) Their transmission fixed charge rate.

3) Generator owners shall provide to the Transmission Provider:

a) Modeling data for power flow, short-circuit and stability analysis;

b) Data for planned additions or upgrades, including status and

expected in-service dates, planned retirements and environmental

restrictions; and

c) Modeling data to perform economic planning studies in accordance

with Sections III and IV of this Attachment O. Data required to

model generating units for the economic planning studies is

documented in the Transmission Network Economic Modeling and

Methods manual which shall be posted on the SPP website.

4) Transmission Customers

a) Network Customers shall provide the Transmission Provider an

update of the information on its Network Integration Transmission

Service application with a ten year forecast of summer and winter

load at each delivery point and ten year projection of network

resources and with any other information that has changed from

the original application.

b) Point-to-point Transmission Customers shall provide to the

Transmission Provider their good faith projections on their need

for service including transmission capacity, duration and points of

delivery and receipt over the ten year planning horizon.

c) Transmission Customers with existing and planned demand

response resources, including demand response resources, shall

provide information on such resources.

5) Neighboring Transmission Providers and RTOs

In accordance with applicable agreements and Section VIII of this

Attachment O, the Transmission Provider shall exchange with neighboring

Transmission Providers and RTOs the data required for the development

of power flow cases, short-circuit cases and stability cases over the ten

year planning horizon.

6) Stakeholder Access to Transmission Planning Information

a) The planning information, data, and models provided pursuant to

this Section VII shall be sufficient to allow parties to replicate

results of the planning studies.

b) The Transmission Provider shall provide a secure web-based

workspace for hosting and sharing planning information, data, and

models.

c) The secure web-based workspace shall be password protected and

require CEII clearance in accordance with Section VII.8 of this

Attachment O.

d) Instructions to obtain access to the Transmission Provider’s power

flow models shall be posted on the SPP website.

e) Instructions to obtain copies of the Transmission Provider’s

transmission planning maps shall be posted on the SPP website.

7) Confidentiality Requirements

a) The Transmission Provider shall make all reasonable efforts to

preserve the confidentiality of information in accordance with the

provisions of the Tariff and the SPP Membership Agreement.

b) For those entities that have executed a confidentiality agreement,

the Transmission Provider shall provide password protected access

to confidential information related to the SPP Transmission

Expansion Plan and the underlying studies and models via the SPP

website.

c) The form of confidentiality agreement shall be posted on the SPP

website.

d) Resource specific data shall not be made available by the

Transmission Provider if the data has been designated confidential

by the data provider or if the data can be used to:

i) Determine security constrained unit commitment or

economic dispatch for resources; or

ii) Perform an economic evaluation of costs and benefits.

e) Other transmission planning information shall be posted on the

SPP website and may be password protected, as appropriate.

f) Confidentiality agreements shall be required for Members and

Market Participants to receive data where the owner of the data has

given permission to the Transmission Provider to release the data.

8) Critical Energy Infrastructure Information (CEII) Requirements

a) The Transmission Provider shall take appropriate steps to protect

CEII information.

b) The Transmission Provider shall screen Members and Market

Participants prior to providing access to CEII information.

Individuals that do not belong to a confirmed pre-screened

Member or Market Participant shall be directed to the

Commission’s website for instructions for access to CEII

information.

c) For those entities that have met the CEII requirements in Section

VII.8.b of this Attachment O, the Transmission Provider shall

provide password protected access to CEII information related to

the SPP Transmission Expansion Plan and the underlying studies

and models via the SPP website.

d) The Transmission Provider shall follow the guidelines set forth by

the Commission to flag data which shall be treated as CEII

sensitive.


VIII. Inter-regional CoordinationPlanning Process

1) The Transmission Provider shall participate in Iinterregional Pplanning

undertake to coordinate any studies required to assure the reliable,

efficient, and effective operation of the Transmission System with the

following Interregional Planning Regions listed in the respective

Addendums to this Attachment O:

Addendum 3- The Midwest Independent Transmission System Operator,

Inc. (“MISO”)

Addendum 4- Mid-Continent Area Power Pool (“MAPP”)

Addendum 5- Southeastern Regional Transmission Planning (“SERTP”),

at a minimum, first-tier adjacent interconnected systems. Such

coordination shall include:

a) Sharing system plans to ensure that such plans are simultaneously

feasible and otherwise use consistent assumptions and data; and

b) Identifying system enhancements that could relieve inter-regional

congestion or integrate new resources on an aggregate basis.

2) The portion of an approved Interregional Project to be constructed by each

Interregional Planning Regions’ shall be determined in accordance with

respective obligations to construct an approved Interregional Projects shall

be determined in accordance with the applicable Addendums to this

Attachment O. The Transmission Provider shall undertake to coordinate

any studies with other transmission providers primarily through

participation in the agreements listed in Addendum 1 to this Attachment

O.

3) The costs of an approved Interregional Projects shall be allocated to each

Interregional Planning Region in accordance with the applicable

Addendums to this Attachment O. On an annual basis, the Transmission

Provider shall review the ongoing planning activities under the agreements

specified in Addendum 1 to this Attachment O to determine the need for

any additional inter-regional studies. The Transmission Provider shall

share this review with the stakeholders at a planning summit and solicit

input regarding additional inter-regional studies that should be initiated by

the Transmission Provider.

4) The Transmission Provider’s obligation to construct an approved

Interregional Projects within the SPP Region shall be determined in

accordance with Section IV.6 of this Attachment O.


IX. Recovering Costs Associated with the Planning Process

1) The Transmission Provider’s costs associated with the planning process

and associated studies set forth in this Attachment O shall be recovered

pursuant to Schedule 1-A of the Tariff.

2) The Transmission Provider’s costs associated with studies for potential

Sponsored Upgrades, shall be the responsibility of the entities requesting

such studies.

3) The Transmission Provider’s costs for studies associated with requests for

long-term firm transmission service shall be recovered pursuant to

Sections 19 and 32 of the Tariff.

4) The Transmission Provider’s costs for studies associated with requests for

interconnection service shall be recovered pursuant to Attachment V of the

Tariff.


X. Cost Allocation

The costs associated with new or upgraded transmission facilities shall be

allocated in accordance with Attachment J to the Tariff.


XI. Dispute Resolution

Any dispute regarding the planning process shall be resolved utilizing the

procedures identical to those set forth in Section 12 of the Tariff.


ADDENDUM 1 TO ATTACHMENT O

INTER-REGIONAL COORDINATION AGREEMENTS

1) In addition to Iinterregional Pplanning pursuant to accordance with Section VIII of

Attachment O, the Transmission Provider shall undertake to coordinate any studies with other

transmission providers primarily through participation in the agreements listed below:

1) The Joint Operating Agreement between the Midwest Independent Transmission

System Operator, Inc. (MISO) and Southwest Power Pool, Inc. (SPP);

2a) The Transmission Coordination Agreement between the Associated Electric

Cooperative, Inc. (AECI) and the Southwest Power Pool, Inc. (SPP);

3b) The United States Department of Energy Southwestern Power Administration

Agreement Between United States of America and Southwest Power Pool, Inc.

(the “SPA Agreement”);

4c) The Eastern Interconnection Reliability Assessment Group; and

5d) All other Bilateral bilateral agreements between the Transmission Provider and

transmission systems to which the SPP Region is interconnected and which are

not identified in Section VIII of this Attachment O.do not participate in

Iinterregional Pplanning.

2) On an annual basis, the Transmission Provider shall review the ongoing planning

activities under the coordination agreements specified in this Addendum 1 to determine theany

need for any additional interregional studies. The Transmission Provider shall share this review

with the stakeholders at a planning summit and solicit input regarding any additional inter-

regional studies that should be initiated by the Transmission Provider.

3) Any Network Upgrade approved pursuant to the coordination agreements under this

Addendum 1 shall not be considered an approved Interregional Project pursuant to the

Interregional Planning Process identified in Section VIII of Attachment O.

2) SPP shall continue its efforts to formalize and improve seams

agreements with its neighbors and affected systems to facilitate

inter-regional and interconnection wide transmission planning and

expansion.


ADDENDUM 3 TO ATTACHMENT O COORDINATED INTERREGIONAL

TRANSMISSION EXPANSION PLANNING WITH THE

MIDWEST INDEPENDENT TRANSMISSION SYSTEM OPERATOR, INC.

Pursuant to Section VIII of Attachment O, the Transmission Provider and the Midwest

Independent Transmission System Operator, Inc. (“MISO”) shall undertake coordinated

interregional transmission planning in accordance with the provisions of Article IX of the Joint

Operating Agreement between the Midwest Independent Transmission System Operator, Inc.

and Southwest Power Pool, Inc. (“JOA”). The agreement can be accessed at the following link:

[LINK HERE]

The objective of coordinated interregional transmission planning with MISO is to identify

potential Interregional Projects, calculate the benefits to each region and present that information

to the Transmission Provider and MISO. The process for Ccoordinated interregional

transmission planning between SPPthe Transmission Provider and MISO provides the process

for joint identification and analysis of proposed iInterregional transmission facilities pProjects

which may benefit the regions served by the Transmission Provider and MISO. The process

includes, but is not limited to:

i. Establishment of a joint planning committee and stakeholder committee;

ii. Establish vVoting procedures whereby proposed iInterregional transmission pProjects

may be approved for construction by both parties;

iii. Data exchange requirements;

iv. Coordinated system planning between the parties to identify and evaluate proposed

iInterregional transmission pProjects;

v. Determination of costs and benefits for each party; and

Cost allocation principles

vi. Construction and ownership of approved iInterregional transmission facilitiespProjects.

The result of coordinated interregional Transmission expansion planning process is to identify

potential Interregional Projects, calculate the benefits to each region and present that information

to the Transmission Provider and MISO. SuchAny proposed Interregional Projects shall be

reviewed by the Transmission Provider in accordance with Section IV.6 of this Attachment O.

The Transmission Provider will construct its part of any approved iInterregional transmission

pProjects in accordance with Section VI of this Attachment O. Any costs obligation of the SPP

Region related to Interregional Projects shall be allocated in accordance with Section VI of

Attachment J.The Transmission Provider shall evaluate A proposed interregional transmission

projects identified pursuant to this Addendum shall be reviewed by the Transmission Provider in

accordance with Section __IV.6 of Attachment O.

RTWG Reviewed 3-21-2013