Dennis Reed September 17, 2012 1
� To provide an overview of the October/November Compliance filing � The general layout of the proposed Tariff language � Solicit input from various Working Groups ◦ Input must be received by the RTWG prior to its September 26-27 meeting 2
� Order 1000 impacts planning and who builds approved projects � Must eliminate the Federal Right of First Refusal (ROFR) for any projects approved through a regional plan for purposes of regional funding ◦ Elimination of the ROFR is not universal ◦ Affects new lines over new right-of-ways (“green field” projects) � ROFR is retained for most projects ◦ Upgrades/rebuilds of existing facilities ◦ If required by State or local laws ◦ Does not receive Regional Funding (i.e. multi zonal) 3
Attachment O defines how projects are � selected and which Transmission Owner (TO) gets to build it 1. If an upgrade to an existing facility, then the owner gets the NTC 2. If a new line, If the facilities the new line is connected to on both � ends of the line is owned by one TO, that TO gets the NTC If the end points of the new line are owned by � different TO.s, then both get an NTC 4
Customer NTC (s) Transmission Signs issues as Service Agreement needed Host TO builds Customer Generation and NTC(s) Signs Interconnect issued as Agreement needed Is BOD Y NTCC ITP Approves NTCC issued Needed Projects ? N Sponsor Sponsored signs Projects agreement NTC issued Published in STEP 5
� General policy related to the planning and ROFR issues was approved by the SPC and the BOD in April with more detailed information in July � Tariff language is based upon those reports � The RTWG did change some of the terminology for Tariff purposes – References to entities that applied or were qualified to participate in the RFP process as “TOs” could be confusing ◦ Applicant TO = Applicant ◦ Qualified TO = Qualified RFP Participant ◦ Many references to the BOD selecting a DTO were changed to “selected RFP proposal” ◦ Selected TO = Selected RFP proposal 6
Does the Y Project meet criteria? BOD Approves ITP Projects N Host TO builds Customer TO(s) Selected Generation and NTC(s) TO Selection Signs using current Interconnect issued as Process process (ROFR) Agreement needed (ROFR) Customer NTC (s) issues Transmission Signs as needed Service (ROFR) Agreement Is N NTCC Needed ? Sponsored Sponsor NTCC Projects Agrees to pay Y issued All Projects Y NTC Cost Published in issued OK? STEP N Project Review Y Cancel N Project- Tracking Project Still proceed? 7
Tariff Map Tariff Map Attachment Y: Transmission Owner Designation Process Attachment O Section ction I I: Ov Overview erview � Describes the subsequent Sections of the Attachments Sections I and II Sections I and II � Defines which projects go through TO Opening and general ITP Upgrad ITP Upgrades Selection Process in Section III information � All other projects go through Incumbent TO ition s condition process Section IV condition Section II: Defi Sec n II: Defini nitions Sectio Section III n III ITP Planning Meets c Meet cond Section ction I III: II: T TO Selection lection Pr Proc ocess for ss for QRP can QRP can get get Competitiv etitive U e Upgr grades ades Inc Incent ntive points points Does not Meet Section III.8 (b) Sectio n III.8 (b) � Qualification Process For DPP For DPP Detailed Project Proposal � Selection Process/RFP/Scoring Does not Incentive Points (Detailed Project ** NEW ** ** NEW ** � Proposal) � Selected DTO can not assign project Sectio Section IV n IV � Default by DTO Other Planning Processes GI Upgrades GI Upgrad es Section Sec n IV: Incum IV: Incumbent TO TO Sel Selection n Process Process When needed When neede � Basically, current Attachment O, Section Sectio Section V n V VI.6 language. STEP Report and approval / entity gets gets � Maintains ability of TO to assign a project endorsement of projects Selected entity Sect Sectio ion V: n V: Notifi Notificat cation to to Construct Construct An NTC An NTC Section VI Sectio n VI � Basically the same as in current Tariff, Attachment O, Section VI.6 Construction of Selected � All entities being assigned a project Transmission Facilities through either Section III or Section IV will (Parts moved to Spons Sponsored red Upgr Upgrades es get an NTC Wh When n en needed eeded Attachment Y) � Defines an NTC for a cost estimate Section VI: Sec n VI: Projec Project Track t Tracking ng Process Process Remaining Sections VII Remaining Sections VII to XI to XI � All projects are tracked by the TP � Project costs changes are reported 8
� Section I: Overview ◦ If Upgrade meets the following conditions, then the project is considered a Competitive Upgrade and TO selected in accordance with Section III � ITP Upgrade � Nominal operating voltage of >= 300 kV � Not a rebuild or expansion of existing facilities � Must not violate relevant law ◦ Otherwise SPP uses the process in Section IV (Incumbent TO) ◦ SPP may select a TO for a project under Section IV even if it meets the criteria of a Competitive Upgrade � If needed for reliability of the grid � If the need date can not be met if Section III is followed � No other transmission or non-transmission mitigation exists � Requires BOD approval 9
� Section III.1: Application and Qualification Process ◦ Any entity which desires to participate in the process must pre-qualify (Qualified RFP Participant or QRP), including existing T.O.s � Application must be to SPP by June 30 � Minimum level qualifications are defined � Managerial and Financial Criteria � Must be willing to join SPP as a TO if not a TO already � Annual application fee equal to membership fee ($6,000), but the fee is waived if already a member ◦ Detailed application is good for 5 years � Must submit an recertification letter by June 30 each year attesting that no material changes to its information has occurred ◦ QRP status may be terminated by SPP if a material adverse change has occurred 10
� Section III.2: T.O. Selection Process ◦ Industry Expert Panel (IEP) ◦ RFP data, process, and timeline � RFP sent to all QRPs � QRP must submit its RFP proposal(s) within 90 days with a complete set of information and RFP fee ◦ RFP Fee � Fee is paid for each proposal submitted � Designed to cover the costs of the selection process � Based on actual cost � Initial fee is estimated and “trued up” at the end of the process 11
� Section III.2(f): Scoring ◦ Industry Expert Panel (IEP) will score each RFP proposal � 1000 base points � 200 Engineering � 200 Project Management � 250 Operations � 225 Rate Analysis/Cost to customers � 125 Financial Viability and Creditworthiness ◦ 100 incentive points � The entity which submitted the RFP proposal must have been the stakeholder to suggest the project and the project qualified as a Detailed Project Proposal (DPP) in accordance with Section III.8(b), Attachment O [new process discussed later] � This is a all or nothing incentive 12
� Section III.2: Selection of the Designated Transmission Owner ◦ IEP submits a full report to SPP based on the data it received through the RFP process � The IEP shall recommend one RFP proposal plus an alternate (if more than one respond to the RFP) � SPP will produce two reports � The BOD report which has all the information, but with the names of the RFP respondents redacted � The public report which is the BOD report, with any confidential information redacted as well ◦ The BOD will select one proposal, plus an alternate � The entity which submitted the selected proposal has 7 days to accept the project and sign any necessary paperwork � If the first entity declines, then the entity which submitted the alternate proposal has 7 days to accept � If neither entity accepts, then the SPP goes to the Section IV process to select an incumbent T.O. 13
� Section III.2: Failure of the DTO to complete the Upgrade ◦ If the DTO is unwilling or unable to complete the Competitive Upgrade then SPP can either: � Reevaluate the project to determine if needed � Select another TO to complete the Competitive Upgrade � Through the Section III process if time allows or � Through Section IV 14
� Section IV: ◦ Generally tried to maintain current Tariff language from Attachment O, Section VI.6 ◦ Gives 90 days for the T.O. to respond to an NTC ◦ Maintains the ability of the T.O. to assign the NTC to another entity � The entity getting the assignment must meet the T.O. Qualifications listed in Section III ◦ If the DTO declines the NTC, and does not assign it, SPP will find another TO using the selection process in Section III � If no other entity can be found to build the project, the incumbent must construct it in accordance with the membership agreement 15
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