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ATSS Backlog Clearing Process (BCP) Customer Workshop

Join us for a customer workshop on the Backlog Clearing Process (BCP) to learn about the timelines, requirements, and details of the process. Ask questions and provide feedback.

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ATSS Backlog Clearing Process (BCP) Customer Workshop

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  1. ATSS Backlog Clearing Process (BCP) Customer Workshop October 4, 2013

  2. Purpose • Provide overview and details of the Backlog Clearing Process (BCP), including timelines and requirements • Capture questions to include in posted documents

  3. Overview • Overview of the Backlog Clearing Process (BCP) • ATSS Completion Agreement (ACA) • Study Procedure • Third-party Impact Process • Make-Whole Payment (MWP) • Open Season Extension • One-Time Cost-Causer Exemption

  4. Definitions • Current Process • The currently-effective aggregate study process • Backlog Clearing Process (BCP) • The process to be implemented upon FERC acceptance of SPP’s filing in ER13-2164 • Requested effective date of October 12, 2013 • New Process • A new aggregate study process – still in development in SPP’s working groups – for future implementation with a date to be determined • No tariff changes have yet been approved or filed

  5. Current Aggregate Study Process YES Restudy Needed? Open Season (4 months) Facilities Study (60 days) Letter of Intent Response Period (15 days) NO Aggregate Study is an iterative process that continues until no customers withdraw. Write Service Agreement

  6. Overview of the Backlog Clearing Process YES Customers with requests that did not meet parameters may withdraw or must execute ACA amendment to remain Customer with 3rd party impacts may move to next study Did any customers withdraw? NO Start NO Are New Completion Requirements Met? Post AFS-4 and Tender ATSS Completion Agreement (ACA) Accept all requests and Tender Service Agreements Customer Executes ACA Facilities Study YES Customer with 3rd Party impacts postpones action Customer Does Not Execute ACA Customer Action Collect Make-Whole Payments from Customer, if required Request Withdrawn SPP Staff Action Customer Does Not Confirm Service ACA Completion Requirements Maximum directly-assigned upgrade cost Maximum 3rdparty upgrade cost Latest acceptable deferred start date Accept interim redispatch Maximum Letter of Credit Customer Confirms Service (and Executes Service Agreement) Stop

  7. Aggregate study completion agreement (ACA)

  8. ATSS Completion Agreement (ACA) and Process • ACA tendered only for studies that are first in queue and after AFS-4 • ACA covers the request through the completion of the study • Customer commits either to accept service offered within the ACA parameters or to pay a make-whole payment • Baseline values are the values from the pre-ACA study iteration and customers can enter greater “acceptable” values

  9. ACA Contents • Additional components of ACA: • Agreement with Table 1 for OASIS requests • Appendix 1 – Study parameters • Appendix 2 – Mutually exclusive requests

  10. ACA – Table 1 • ACA Table 1 will list all OASIS requests covered by agreement: • Any related GI study number should be included in the ‘GI Study Number’ column

  11. ACA – Appendix 1 Customer selects study option at top of Appendix 1. Remain: Items 1-5 must be completed. Sign and date at bottom.

  12. ACA – Appendix 1 Customer selects Expedited Service, Accepts ATC or Withdraws, then skip items 1-5 and sign and date at bottom.

  13. ACA – Appendix 1 – cont. (1) Directly Assigned Upgrade Costs (DAUC) • Customer can specify a maximum amount, but no less than its DAUC from the iteration prior to signing the ACA • If no maximum amount is provided in (1)(b), the value from the most recently posted study will be utilized

  14. ACA – Appendix 1 – cont. (2) 3rd Party Upgrade Costs • Customer can specify a maximum amount, but no less than its costs from the iteration prior to signing the ACA • Customer can elect to either remain in the current study or move to the next highest priority study in queue if the 3rd party cost is non-zero or listed as indeterminate • If no maximum amount is provided in (2)(b), the value from the most recently posted study will be utilized • If no selection is made for (2)(c), the request will remain in study

  15. ACA – Appendix 1 – cont. (3) Deferred Start Date without redispatch • Customer can specify the latest acceptable start date • If date in (3)(b) is left blank, the Start Date from Most Recently Posted Study will be the default date

  16. ACA – Appendix 1 – cont. (4) Interim Redispatch, if it can provide an earlier Start Date • Customer can specify if Interim Redispatch is acceptable • If no selection is made, then ‘No’ will be the default

  17. ACA – Appendix 1 – cont. (5) Letter of Credit (if required) • Customer can specify a maximum amount • If no maximum amount is provided in (5)(b), the value from the most recently posted study will be utilized

  18. ACA – Appendix 2 • Mutually-exclusive requests • Post AFS-4, customer must select only one (1) request to remain in study. • Customer will withdraw any remaining requests

  19. Bcp study procedure

  20. BCP Study Procedure • BCP Facilities Study begins once initial ACAs are returned • Parameters evaluated from ACA Appendix 1 and 2 • Requests that don’t meet one of the parameters may be • Withdrawn • ACA Amended • Requests that meet all parameters will remain in study • Restudy, if needed • If no requests are withdrawn, begin finalizing study • “Next Steps” emails • Accept all requests • Tender Service Agreements • 3rd Party Process YES Customers with requests that did not meet parameters may withdraw or must execute ACA amendment to remain Did any customers withdraw? NO NO Are New Completion Requirements Met? Accept all requests and Tender Service Agreements Facilities Study YES 3rd Party Process Customer Action SPP Staff Action ACA Completion Requirements Maximum directly-assigned upgrade cost Maximum 3rd party upgrade cost Latest acceptable deferred start date Accept interim redispatch Maximum Letter of Credit

  21. 3rd party impacts

  22. 3rd party impacts • The customer with 3rd party impacts has three options prior to executing the ACA and entering into BCP • Option 1: Withdraw the request • Option 2: Move to next study • Option 3: Continue in study subject to make-whole payment

  23. 3rd Party Impacts – cont. YES Customers with requests that did not meet parameters may withdraw or must execute ACA amendment to remain Customer with 3rd party impacts may move to next study Did any customers withdraw? NO Start Customers with unresolved 3rd party impacts may choose to move to the next aggregate study prior to execution of the ACA NO Are New Completion Requirements Met? Post AFS-4 and Tender ATSS Completion Agreement (ACA) Accept all requests and Tender Service Agreements Customer Executes ACA Facilities Study YES Customer with 3rd Party impacts postpones action Customer Does Not Execute ACA Customer Action Collect Make-Whole Payments from Customer, if required Request Withdrawn SPP Staff Action Customer Does Not Confirm Service ACA Completion Requirements Maximum directly-assigned upgrade cost Maximum 3rd party upgrade cost Latest acceptable deferred start date Accept interim redispatch Maximum Letter of Credit Project Tracking Issue NTCs, if required Customer Confirms Service (and Executes Service Agreement) Stop

  24. 3rd Party Impacts – cont. YES Customers with requests that did not meet parameters may withdraw or must execute ACA amendment to remain Customer with 3rd party impacts may move to next study Did any customers withdraw? NO Customers with un-resolved 3rd party impacts after study completion may postpone the decision to confirm service Start NO Are New Completion Requirements Met? Post AFS-4 and Tender ATSS Completion Agreement (ACA) Accept all requests and Tender Service Agreements Customer Executes ACA Facilities Study YES Customer with 3rd Party impacts postpones action Customer Does Not Execute ACA Customer Action Collect Make-Whole Payments from Customer, if required Request Withdrawn SPP Staff Action Customer Does Not Confirm Service ACA Completion Requirements Maximum directly-assigned upgrade cost Maximum 3rd party upgrade cost Latest acceptable deferred start date Accept interim redispatch Maximum Letter of Credit Project Tracking Issue NTCs, if required Customer Confirms Service (and Executes Service Agreement) Stop

  25. 3rd Party Impacts – Postponing Service Customer Action SPP Staff Action Customer with 3rd Party impacts postpones action Timer Starts (1 year or Service Start Date) Applicable 3rd Party Evaluation Process 3rd Party Action Agreement is not reached with 3rd party or time expires 3rd Party clears Request Request is Accepted and Service Agreement is Tendered Request is Declined and Sponsored Upgrade Agreement is Tendered Customer Confirms Service (and Executes Service Agreement) Make Whole Payment (MWP) is collected from Customer

  26. 3rd Party Impacts – cont. YES Customers with requests that did not meet parameters may withdraw or must execute ACA amendment to remain Customer with 3rd party impacts may move to next study Did any customers withdraw? NO Start Customers with 3rd party impacts that move forward by signing the ACA may be subject to a make-whole payment if service is not confirmed. NO Are New Completion Requirements Met? Post AFS-4 and Tender ATSS Completion Agreement (ACA) Accept all requests and Tender Service Agreements Customer Executes ACA Facilities Study YES Customer with 3rd Party impacts postpones action Customer Does Not Execute ACA Customer Action Collect Make-Whole Payments from Customer, if required Request Withdrawn SPP Staff Action Customer Does Not Confirm Service ACA Completion Requirements Maximum directly-assigned upgrade cost Maximum 3rd party upgrade cost Latest acceptable deferred start date Accept interim redispatch Maximum Letter of Credit Project Tracking Issue NTCs, if required Customer Confirms Service (and Executes Service Agreement) Stop

  27. Make-whole payment (mwp)

  28. Make-Whole Payment (MWP) • Customers that sign an ACA without executing a Transmission Service Agreement (TSA) are obligated to pay for any shared upgrade costs in the form of a MWP • Customers that pay a MWP will execute a Sponsored Upgrade agreement under Attachment J • Sponsored Upgrades are eligible to receive revenue credits under Attachment Z2

  29. Make-Whole Payment (MWP) Process Re-Run Cost Allocation & Prepare Sponsored Upgrade Agreements Notify Customer of MWP and Tender Sponsored Upgrade Agreements Settlement of Make Whole Payment Incorporate into Creditable Upgrades Database

  30. Maximum Potential MWP Example • Excerpt from Table 3 of study report showing Service Upgrades allocated to a request Maximum Potential MWP: $1,098,494 • The highlighted cells depict the potential MWP for each upgrade, based on the revenue requirements. • The non-highlighted upgrades are non-shared upgrades and are not included in the MWP calculation.

  31. Non-Shared Upgrades • Non-shared upgrades will not be included in the Make-Whole Payment for requests that are not confirmed • Exception: • Non-shared upgrades that are allocated to a request with a third-party impact that exercised the option to postpone action will be included in subsequent studies • If service is granted to subsequent requests that rely on the non-shared upgrade, the original request will be assigned a MWP if the request is not confirmed

  32. Open season extension

  33. Open Season Extension • Open season will remain open until either the immediately prior study becomes the highest priority study or SPP Staff determines the Open Season needs to close • SPP will give at least 10 days’ notice before the open season closes • The Open Season will be open for no less than 4 months • 2014-AG1 will be the first open season to be extended

  34. One-time cost-causer exemption

  35. One-Time Cost-Causer Exemption • Customers will have an opportunity to withdraw any pending aggregate study request without incurring an obligation to pay for subsequent restudies • Customers have 45 days after FERC acceptance of the tariff language to exercise the option • This is a one-time exemption

  36. WRAP-UP

  37. Implementation Timeline • Filed Tariff Aug. 15, 2013 • FERC order expected by Oct. 14, 2013 • Letters of Intent due for 2011-AG3-AFS-10 on Oct. 12 • If FERC issues an order by COB October 14, 2013 and accepts the October 12, 2013 effective date, then: • 2011-AG3 will be subject to BCP if it did not complete with AFS-10 (ACA will be tendered) • If October 12th is not the effective date, 2011-AG3 will continue under the Current Process if it did not complete with AFS-10

  38. Posting of Documents on spp.org

  39. ATSS Contact Information Steve Purdy, Manager spurdy@spp.org (501) 614-3371 Chris Jamieson, Lead Engineer cjamieson@spp.org (501) 614-3231 Eric Samson, Sr. Engineer esamson@spp.org (501) 614-3375 James Bailey, Engineer jbailey@spp.org (501) 688-8243 David Duhart, Engineer dduhart@spp.org (501) 688-1705 Terry Fang, Engineer tfang@spp.org (501) 688-1709 Charlton Hill, Engineer chill@spp.org (501) 688-1716 Aaron Stewart, Engineer astewart@spp.org (501) 482-2168 John O’Dell, Analyst jodell@spp.org (501) 688-8285 Sherri Maxey, Analyst smaxey@spp.org (501) 688-1648 General email: ATSS@spp.org

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