SPP’s 2013 Energy Consumption and Capacity212% annual capacity margin requirementCapacity ConsumptionTotal Capacity66 GWTotal Peak Demand49 GWSPP’s Operating Region3Current•77,366 MW of generating capacity•46,136 MW of peak demand•48,930 miles transmission:− 69 kV –12,569miles− 115 kV –10,239miles− 138 kV –9,691miles− 161 kV –5,049miles− 230 kV –3,889miles− 345 kV –7,401miles− 500 kV –93milesFuture (October 2015)•Adding 3 new members (WAPA,BEPC, and HCPD)•+ 5,000 MW of peak demand•+ 7,600 MW of generating capacity•50% increase in SPP’s current hydrocapacity5,12728505,000 (MW)Kansas1,1007805,000 (MW)ArkansasSPP’s Current Coal Status for 2018Derated CapacityRetired CapacityRemaining CapacityLEGEND52030 Goals for States in SPP177117831714149974114791544104891089588379124392368233123202256216220101798172215621533142005001,0001,5002,0002,5003,000 Montana N. Dakota Wyoming Kansas S. Dakota Nebraska Missouri New Mexico Arkansas Oklahoma Louisiana TexasFinal GoalEnergy EfficiencyRenewableNuclearRedispatch CCsHeat Rate Improvement*Includes Future States with IS Generation in SPP (N.Dakota, S. Dakota, Montana, and Wyoming)Fossil Unit CO2 Emission Rate Goals and Block Application (lbs/MWh)SPP StateAverage 2012Rate = 1,699SPP StateAverage 2030Rate = 1,0456% Emission Reduction Goals for States in SPP*Includes Future States with IS Generation in SPP (N.Dakota, S. Dakota, Montana, andWyoming)01020304050607080 S. Dakota Arkansas Texas Oklahoma Louisiana New Mexico Kansas Nebraska Montana Wyoming N. Dakota MissouriTotal CO2Emission Reduction Goals(%)Average of SPPStates = 38.5%7NGCC Capacity Factors(For SPP and Select Neighboring States)8EPA’s Renewable Energy Assumptions(For SPP and Select Neighboring States)•Initial analysis requested by SPP’s Strategic Planning Committee– Reliability analysis– Use existing ITP 2024 models– Model EPA’s projected EGU retirements– Replace retired EGUs with a combination of increased outputfrom existing CCs, new CCs, Energy Efficiency, and increasedrenewables (with input from member utility experts)– Assessment underway, initial results expected week of August 18th•SPP’s Regional State Committee requested analysis comparingboth individual state and regional approaches– Will discuss approach during their August 25thconference call9SPP’s CPP Impact Assessments10EPA Projected 2016-2020 EGU Retirements(For SPP and Select Neighboring States)*Extracted from EPA IPM data**THESE RETIREMENTS ARE ASSUMED BY EPA – NOT SPP!010002000300040005000600070008000900010000110001200013000AR KS MO MT ND NE NM OK SD TX IA LA

MWCoal SteamOil/Gas SteamCT11EPA’s Projected 2016-2020 EGU Retirements(For SPP and Select Neighboring States)*Excludes committed retirements prior to 2016**Extracted from EPA IPM data***THESE RETIREMENTS ARE ASSUMED BY EPA – NOT SPP!•Before considering the impacts of contingencies, preliminaryresults indicate increased thermal overloads and low voltagesdue to EPA’s assumed retirements•Summer peak cases are not solving under single contingency•Indicative of significant low voltages due to lack of reactive support•Remaining steps to be taken•Continue to take steps to get all cases to solve and note what stepswere required•Determine the amount of reactive support required tomaintainreliable voltages•Identify the number and significance of overloads and low voltagesthat would have to be solved to comply with NERC Standards12SPP Reliability Impact Assessment Results•Used current load forecasts supplied by SPP members, currentlyplanned generator retirements, currently planned newgenerator capacity with GIAs, and EPA’s assumed retirements•SPP’s minimum required reserve margin is 13.6%•By 2020, SPP’s anticipated reserve margin would be5.0%,representing a capacity margin deficiency of approximately4,500 MW•By 2024, SPP’s anticipated reserve margin would be-3.8%,representing a capacity margin deficiency of approximately10,000 MW•Out of 14 load serving members assessed, 9 would bedeficientby 2020 and 10 by 202413SPP Reserve Margin Assessment•SPP is responsible to FERC and NERC– Required to ensure reliability and perform in accordance with tariff– Rules, behavior, pricing, and revenue distributionare subject to FERC approval– Penalties may be levied by FERC/NERC for failure to comply (up to $1MM/day/violation)•SPP operates regional security-constrained, economically dispatched markets– Considers both reliability and economics– Generation dispatch provides reliable and economicsolutions to needs over amulti-state area•SPP plans and directs regional transmission construction– Addresses expected reliability, economic, and public policy needs– Generator interconnection and transmission servicemust be requested of SPP andprocessed by SPP– Takes up to 8.5 years to perform applicable planning processes and constructtransmission upgrades14State Plans Need to Consider the FollowingTransmission Build Cycle15GI Study(12 mo.)NTCProcess(3-12 mo.)Construction(2-6 yr.)Planning Study(12-18 mo.)TSStudy(6 mo.)NTCProcess(3-12 mo.)Construction(2-6 yr.)

3 1⁄4 yr. 8 1⁄2 yr.

3 1⁄2 yr. 8 1⁄2 yr.Transmission Planning ProcessGI and Transmission Service ProcessLanny NickellVice President, Engineering501-614-3232lnickell@spp.org16