Generation Interconnection at SPP

2. Generation Interconnection at SPP

3. Generation Interconnection QueueAs of 9/30/2010 • 116 Active Interconnection Requests under study for 20,180MW • 103 of the Active Interconnection Requests are for wind for a total of 19,256MW • Interconnection Agreements Pending - 42 • Transition Cluster – 21 GIA for 4,799 MW • DISIS-2009-001 – 21 GIA for 2,773 MW • Wind Requests currently with Interconnection Agreements • 66 GIA for 10,144 MW • Approximately 3,400MW of this is in service with the remainder on suspension or otherwise not built out the full capacity of the GIA.

4. Generation Interconnection Queue as of 9/30/2010

5. Queue Reform • Generation Queuing Task Force (GQTF) formed in March, 2008 • Queue Reform Filing made in June, 2009 (ER09-1254) • Queue Reform Filing Approved by FERC in July, 2009

6. Before Queue Reform • Status (on April 1, 2009) • 278 Active Requests totaling 61,128 MW • 228 for Wind totaling 50,868 MW • 50 for Fossil or Other totaling 10,260 MW • A sequential queue • Once problem areas identified; queue would bog down as upgrade costs increased • 136 new interconnection requests in 2008 brought the issue to a head.

7. Before Queue Reform • Interconnection Customers allowed to sign Interconnection Agreement and then “suspend” the agreement for 3 years. • Suspended Interconnection Agreements pose problems in that Interconnection Customer are “holding” capacity but not using that capacity. • Subsequent (lower queued) customers may be liable for costly upgrades that would not be necessary if the suspended customers were to outright relinquish their queue position.

8. Queue Reform Measures • Site Control – Tighten requirements for site control. Site Control required to enter the queue for an Impact Study • Stricter Milestones for Advancement in process • Different Queues for Feasibility Study and Impact Study. Customers that meet stricter milestones can advance ahead of Customers that cannot.

9. Queue Reform Measures • Cluster Studies • intended to study multiple requests simultaneously and allocate costs of network upgrades that are beneficial to the group. • All interconnection requests in each queue that are received in a 180 day open season period are studied together. • Allows for all interconnection requests in the queue to commence study process within six months and greatly lessens the queue backlog burden

10. Queue Reform Measures • Cluster Studies (continued) • A set of upgrades that is necessary for the interconnection of the entire cluster of interconnection requests is determined. • The upgrade set’s costs are shared by the entire cluster of interconnection request based on a MW usage basis of each interconnection request. • Upgrades that are required for the interconnection of the cluster (i.e. shared upgrades) cannot be suspended.

11. Queue Reform Measures • Increased Study Deposits • Stricter Suspension Requirements • Reduced from 3 years • 6 months – no cost • 6-18 months – Requires payment of allocated costs of network upgrades or minimum payment of $1M - $5M depending on project size. • Shared Network Upgrades cannot be suspended.

12. Wind in the Queue before and after Queue Reform (Queue Reform effective Q2 2009)

13. What’s Next for GI • ITP – Developed in part to ease the pressure on the GI queue • AGCTF – Task Force formed to determine optimum methods of connecting generation including wind farm collector systems • LUPTF – Task Force formed to optimize land use amongst SPP member utilities, non-SPP utilities, generator developers

14. Juliano Freitas