Southwest Power Pool

MARKET WORKING GROUP MEETING

April 19, 2016

AEP Offices – Dallas, TX • Summary of Motions •

Motions: Agenda Item 2 – Consent Agenda Lee Anderson (LES) motioned and Ann Scott (TNSK) seconded to approve the consent agenda as presented to the MWG. The motion passed with no oppositions and no abstentions. Agenda Item 9 – Electrically Equivalent Settlement Locations Cost Estimate Ann Scott (TNSK) motioned and Cliff Franklin (WR) seconded to approve the cost estimate as presented to the MWG and to direct SPP Staff to draft a Revision Request for clarification to the EESL language and bring back to MWG. The motion passed with no oppositions and one (KCPL) abstention. Agenda Item 11 – RR153 Offer Database Roll Forward Kevin Galke (CUS) motioned and Brad Johnston (AECC) seconded to approve SPP comments to RR153 and the impact assessment with a ranking of low as presented to the MWG. The motion passed with one (KCPL) opposition and five (TNSK, GSEC, Midwest, AEP, OGE) abstentions.

Minutes No. [241]

Southwest Power Pool

MARKET WORKING GROUP MEETING

April 19, 2016

AEP Offices – Dallas, TX • M I N U T E S •

Agenda Item 1 — Call to Order, Proxies, Agenda Discussion Richard Ross (AEP) called the meeting to order at 8:00 a.m. The attendance was recorded and proxies were announced (Attachment 1 - MWG Attendance April 19 2016). The following members were represented by proxy:

Dirk Dietz (NPPD) for Ronald Thompson (NPPD) (Attachment 1a - Ronald Thompson Proxy) Adam Bigknife (OGE) for Shawn McBroom (OGE) (Attachment 1b - Shawn McBroom Proxy) Terry Wright (EDE) for Rick McCord (EDE) (Attachment 1c - Rick McCord Proxy)

The group reviewed the agenda (Attachment 2 - MWG Agenda for April 2016). Agenda Item 2 — Consent Agenda Richard Ross (AEP) introduced the consent agenda items and asked if anyone would like to remove any items (Attachment 3 - MWG March 22 2016 Minutes). Lee Anderson (LES) motioned and Ann Scott (TNSK) seconded to approve the consent agenda as presented to the MWG. The motion passed with no oppositions and no abstentions. Agenda Item 3a — Working Group/Committee Updates - Price Formation Task Force Update Matt Moore (GSEC) provided an update from the April’s face to face Price Formation Task Force (PFTF) meeting. The PFTF reviewed price formation concerns that were submitted by stakeholders. The next PFTF face to face will be held in Dallas on Wednesday, May 25, 2016. Agenda Item 3b — Working Group/Committee Updates – April MOPC Update Richard Ross (AEP) informed the MWG all consent agenda items from the MWG were approved by MOPC. MOPC approved RR145 and Richard informed the MWG RR154 was remanded back to the MWG for further review and clarification. Agenda Item 4 — Marketplace RR October 2016 MOPC Schedule Erin Cathey (SPP) displayed the October 2016 MOPC Schedule and explained the date of 07/06/2016 as the submission deadline for non-expedited MWG Revision Requests to make it to the October 2016 MOPC (Attachment 4 - October MOPC Schedule for RRs). Agenda Item 5 — 2016 Marketplace Symposium Michael Daily (SPP) updated the MWG on the 2016 Marketplace Symposium (Attachment 5 - Marketplace Working Group Update April 2016). Michael recapped last year’s successes. He asked the

Minutes No. [241]

MWG to provide any topic that they would like to see at 2016’s Marketplace Symposium and informed the MWG on upcoming training. Agenda Item 6 — RR161 Commitment Level Cost Recovery and MCR Settlement Design Enhancements John Luallen (SPP) presented an overview of the changes in RR161 Commitment Level Cost Recovery and MCR Settlement Design Enhancements to the MWG (Attachment 6 - RR161 Commitment Level Cost Recovery and MCR Settlement Design Enhancements.ppt and Attachment 7 - RR161 Commitment Level Cost Recovery and MCR Settlement Design Enhancements.doc). John explained all of the Settlement changes for a Multi-Configuration Combined Cycle Resource (MCR) and all of the Settlement changes for a Non-MCR. MWG requested that the Settlement User Group review RR161 and provide feedback at the May 2016 MWG meeting. Agenda Item 7 — RR135 Revision of Physical Withholding Rules Serhat Guney (SPP) updated the MWG on MMU’s progress on RR135 (Attachment 9 - RR135 WR Comments 1-15-2016, Attachment 10 - RR135 WR Comment 2-15-2016, Attachment 11 - RR135 Revision of Physical Withholding Rules, Attachment 12 - RR135 ITCGP Comments 1-27-16, and Attachment 13 - RR135 GSEC Comments 01052016). MWG members expressed concerns about RR135 (Attachment 8 - RR135 Update to Stakeholder Feedback) and asked for feedback from the MMU. Some members are concerned that the penalty is unnecessary and believe that the FERC referral is enough of a deterrent for physical withholding Resources. Serhat explained that the FERC referral will be replaced by the penalty and a FERC informational report. Some members expressed concern that the 5% conduct threshold for frequently constrained areas was too narrow, and requested to change the threshold to 10%. Serhat stated that the MMU believes that the 5% threshold is appropriate when there is market power. MMU will post comments to RR135 for discussion at the May 2016 MWG meeting. Agenda Item 8 — MWG Action item #236 adding Price admin for System Ramp Violations Nick Parker (SPP) presented to the MWG action item #236 on considering price administration for system ramp violations (Attachment 14 - Action Item 236 - Ramp Violation Price Administration). Action item #236 was given to SPP Staff in the February 2014 MWG meeting. Nick informed the MWG that SPP Staff has discussed this action item at other meetings and has documented SPP’s position in comments to FERC NOPR AD14-14. MWG directed SPP Staff to close action item #236.

Agenda Item 9 — Electrically Equivalent Settlement Locations Cost Estimate Nick Parker (SPP) presented to the MWG an impact assessment for the TCR systematic validation process for Electrically Equivalent Settlement Locations (EESLs) (Attachment 15 - EESL MWG Presentation). In the 2014 Annual State of the Market Report, SPP MMU recommended to impose a systematic block of TCR bidding between EESL pairs to prevent ongoing Tariff violations. Nick explained that iHedge could be updated for $134,370 to prevent MPs from submitting TCR bids between EESL pairs. SPP would create a list of prohibited EESL pairs and add those pairs to a validation that would prevent submission of TCR bids from the list. Ann Scott (TNSK) motioned and Cliff Franklin (WR) seconded to approve the cost estimate as presented to the MWG and to direct SPP Staff to draft a Revision Request for clarification to the EESL language and bring back to MWG. The motion passed with no oppositions and one (KCPL) abstention. Agenda Item 10a — Action items from RR139 Real-Time Loss of Opportunity MWP - Action item 295

Minutes No. [241]

Jim Gonzalez (SPP) presented action item #295 to the MWG (Attachment 16 - Action Item 295-Wind Turbine Type). MWG requested SPP Staff to provide NDVER wind capacity by turbine class. Jim informed MWG on the number of NDVERs that have control functionality and the number of NDVERs that do not have control functionality. The MWG had concerns with the amount of Resources and the amount of capacity of NDVERs labeled as having control functionality. The MWG discussed the possibility of providing the right incentive to NDVERs to have them register as DVERs. Jim will meet with the Wind Coalition and bring back some suggestions on how the market could incent NDVERs to become DVERs. The MWG directed SPP Staff to close action item #295. Agenda Item 10b — Action items from RR139 Real-Time Loss of Opportunity MWP - Action item 297 Debbie James (SPP) presented action item #297 to the MWG (Attachment 17 - Action Item 297-NDVER Transmission Service). MWG requested that SPP identify how many NDVERs do not have Firm Transmission Service. Debbie explained by fuel type the percentage of NDVERs that do not have Firm Transmission Service. The MWG directed SPP Staff to close action item #297. Agenda Item 11 — RR153 Offer Database Roll Forward Micha Bailey (SPP) presented action item #298 to the MWG (Attachment 18 - Resource Offers Roll-Forward Logic, Attachment 19 - RR153 SPP Comments 4-11-2016, Attachment 19a. - RR153 Recommendation Report, Attachment 20 - RR153 Offer Database Roll Forward, and Attachment 21 - RR153 Impact Analysis). MWG requested SPP Staff educate the group on how the roll forward logic works today and explain how RR153 will change the current logic. When a Market Participant submits offer parameters for seven operating days in the future and then makes an intra-day change to one of those offer parameters, the intra-day change will continue to roll forward until updated. Micha explained the roll forward logic is dependent on the order of operating dates to which the MP makes the intra-day update. If RR153 gets approved, the only time the roll forward logic will roll forward an offer parameter is when the MP does not submit an offer parameter for a given operating day or for a given interval. MWG directed SPP Staff to close action item #298. Kevin Galke (CUS) motioned and Brad Johnston (AECC) seconded to approve SPP comments to RR153 and the impact assessment with a ranking of low as presented to the MWG. The motion passed with one (KCPL) opposition and five (TNSK, GSEC, Midwest, AEP, OGE) abstentions. Agenda Item 12 — Congestion Hedging Quarterly Update Ty Mitchell (SPP) presented the Congestion Hedging Quarterly Update and answered questions from the group (Attachment 22 - Congestion Hedging Quarterly Update). Agenda Item 13a — MMU Marketplace Update Jason Bullock (SPP MMU) presented the MMU Marketplace Update and answered questions from the group (Attachment 23 - 201603 MWG MMU Market Update). Agenda Item 13b — RTO Marketplace Update Ricky Finkbeiner (SPP) presented the highlights from the RTO Marketplace Update and answered questions from the group (Attachment 24 - April 2016 RTO Update). Agenda Item 13c — Regulatory Report Marisa Choate (SPP) presented the Regulatory Report and answered questions from the group (Attachment 25 - 2016 04 Regulatory Report to MWG).

Minutes No. [241]

Agenda Item 13d — Quarterly RR Report Erin Cathey (SPP) presented the Quarterly RR Report to the group (Attachment 26 - RR IA QTRLY Report QTR 1 2016). Agenda Item 13e — Quarterly MWG Action Items Micha Bailey (SPP) presented the Quarterly MWG Action Items Report and answered questions from the group (Attachment 27 - MWG Action Items). Agenda Item 14a — Written Reports – GFA Quarterly Report The GFA Quarterly Report was included in the background materials (Attachment 28 - GFA Quarterly Report 20160414 MWG). Agenda Item 15 - Review of Motions, Action Items and Future Meetings

Motions: Agenda Item 2 – Consent Agenda Lee Anderson (LES) motioned and Ann Scott (TNSK) seconded to approve the consent agenda as presented to the MWG. The motion passed with no oppositions and no abstentions. Agenda Item 9 – Electrically Equivalent Settlement Locations Cost Estimate Ann Scott (TNSK) motioned and Cliff Franklin (WR) seconded to approve the cost estimate as presented to the MWG and to direction SPP Staff to draft a Revision Request for clarification to the EESL language and bring back to MWG. The motion passed with no oppositions and one (KCPL) abstention. Agenda Item 11 – RR153 Offer Database Roll Forward Kevin Galke (CUS) motioned and Brad Johnston (AECC) seconded to approve SPP comments to RR153 and the impact assessment with a ranking of low as presented to the MWG. The motion passed with one (KCPL) opposition and five (TNSK, GSEC, Midwest, AEP, OGE) abstentions. Action Items:

• Agenda Item 6 - MWG requested that the Settlement User Group review RR161 and provide feedback at the May 2016 MWG meeting.

Future Agenda Items: RR154 Repricing Timelines and Requirements RR114 Add Energy Storage Rules to Marketplace RR135 Revision of Physical Withholding Rules RR161 Commitment Level Cost Recovery and MCR Settlement Design Enhancements Removing BSSs from OCL Distribution RR Discussion Future Meetings: MWG Meeting: Tuesday, May 24, 2016 (8:00 a.m. – 6:00 p.m.)

Minutes No. [241]

Location: AEP Office – Dallas, TX Room: 8th Floor PFTF Meeting: Wednesday, May 25, 2016 (8:00 a.m. – 12:00 p.m.) Location: AEP Office – Dallas, TX Room: 8th Floor MWG Meeting: Tuesday, June 21, 2016 (8:00 a.m. – 6:00 p.m.) Location: AEP Office – Dallas, TX Room: 8th Floor PFTF Meeting: Wednesday, June 22, 2016 (8:00 a.m. – 12:00 p.m.) Location: AEP Office – Dallas, TX Room: 8th Floor Agenda Item 16 — RR4_MPRR 130b Must Offer Penalty Calculation and Clarification This item was postponed. Agenda Item 17 — RR7_MPRR 155 Modification of OOME Rules This item was postponed. Agenda Item 18 — RR10_MPRR 169 Clear and Unambiguous Must Offer Proposal This item was postponed. Agenda Item 19 — RR114 Add Energy Storage Rules to Marketplace This item was postponed until May’s MWG meeting.

Agenda Item 20 – Adjournment Richard Ross (AEP) adjourned the meeting at 4:30pm.

Respectfully Submitted, Debbie James Secretary

Minutes No. [241]

Attachments Attachment 1 - MWG Attendance April 19 2016 Attachment 1a - Ronald Thompson Proxy Attachment 1b - Shawn McBroom Proxy Attachment 1c - Rick McCord Proxy Attachment 2 - MWG Agenda for April 2016 Attachment 3 - MWG March 22 2016 Minutes Attachment 4 - October MOPC Schedule for RRs Attachment 5 - Marketplace Working Group Update April 2016 Attachment 6 - RR161 Commitment Level Cost Recovery and MCR Settlement Design Enhancements.ppt Attachment 7 - RR161 Commitment Level Cost Recovery and MCR Settlement Design Enhancements.doc Attachment 8 - RR135 Update to Stakeholder Feedback Attachment 9 - RR135 WR Comments 1-15-2016 Attachment 10 - RR135 WR Comment 2-15-2016 Attachment 11 - RR135 Revision of Physical Withholding Rules Attachment 12 - RR135 ITCGP Comments 1-27-16 Attachment 13 - RR135 GSEC Comments 01052016 Attachment 14 - Action Item 236 - Ramp Violation Price Administration Attachment 15 - EESL MWG Presentation Attachment 16 - Action Item 295-Wind Turbine Type Attachment 17 - Action Item 297-NDVER Transmission Service Attachment 18 - Resource Offers Roll-Forward Logic Attachment 19 - RR153 SPP Comments 4-11-2016 Attachment 19a. - RR153 Recommendation Report Attachment 20 - RR153 Offer Database Roll Forward Attachment 21 - RR153 Impact Analysis Attachment 22 - Congestion Hedging Quarterly Update Attachment 23 - 201603 MWG MMU Market Update Attachment 24 - April 2016 RTO Update Attachment 25 - 2016 04 Regulatory Report to MWG Attachment 26 - RR IA QTRLY Report QTR 1 2016 Attachment 27 - MWG Action Items Attachment 28 - GFA Quarterly Report 20160414 MWG

X = In PersonP = By Phone* = By Proxy

Day 1 Full Name Company E-mail Business Phone Other PhoneX Richard Ross (Chair) AEP rross@aep.com (918) 599-2966 (918) 284-8702X Jim Flucke (V-Chair) KCPL jim.flucke@kcpl.com (816) 701-7836P Aaron Rome Midwest Energy arome@mwenergy.com (785) 625-1431X Ann Scott Tenaska ascott@tnsk.com (817) 462-1514X Brad Johnston AECC brad.johnston@aecc.comX Carrie Dixon Xcel Energy carrie.e.dixon@xcelenergy.comP Chris Lyons Exelon chris.lyons@exeloncorp.com (410) 470-2465X Cliff Franklin Westar clifford.franklin@westarenergy.com (443) 226-7787X Debbie James (Sec) SPP djames@spp.org (501) 614-3577X Kevin Galke City Utilities, Springfield kgalke@teainc.org (904) 360-1460X Lee Anderson LES landerson@les.com (402) 467-7591X Matt Moore Golden Spread Electric Coop mmoore@gsec.coop (806) 379-7766X Mike Mushrush OMPA mmushrush@ompa.comP Neal Daney KMEA daney@kmea.com (913) 660-0242

P / * Rick McCord EDE rmccord@empiredistrict.com (417) 625-5129 (402) 616-3522P Rick Yanovich OPPD ryanovich@oppd.com (402) 514-1031

P / * Ron Thompson NPPD rfthomp@nppd.com (402) 845-5202* Shawn McBroom OGE mcbroosr@oge.com (405) 239-0255 (405) 553-3267P Valerie Weigel Basin Electric Power Co. vweigel@bepc.com (701) 557-5430P Adam Bigknife OGE bigkniaw@oge.comX Alan McQueen SPP amcqueen@spp.orgP Angie Folds SPP afolds@spp.orgP Austin Hoekman MRES ahoekman@mrenergy.comP Becky Gifford SPP bgifford@spp.orgP Bob Wittmeyer Longhorn Power bwittmeyer@longhornpower.comX Brandon McCranken WFEC b_mccracken@wfec.com 405-247-3351P Brenda Fricano SPP bfricano@spp.orgP Brian Buffington Xcel brian.g.buffington@xcelenergy.comP Brian Rounds AESL Consulting brian.rounds@aeslconsulting.comP Chris Giles TCEC cgiles@tcec.coopP Chris Winburn INDN cwinbrun@indepmo.orgP Dan Trent AECI dtrent@aeci.orgP David Binkley ICT dbinkley@itctransco.comX David Daniels SPP ddaniels@spp.orgP Dirk Dietz NPPD drdietz@nppd.comP Douglas Clark SPP dclark@spp.orgP Ella Caillouette Northwestern ella.caillouette@northwestern.comP Eric Alexander GRDA ealexander@grda.com (918) 824-7245X Erin Cathey SPP ecathey@spp.orgX Esat Guney SPP eguney@spp.org

Market Working GroupApril 19, 2016

Conference Call

mailto:rross@aep.commailto:jim.flucke@kcpl.commailto:arome@mwenergy.commailto:ascott@tnsk.commailto:brad.johnston@aecc.commailto:carrie.e.dixon@xcelenergy.commailto:chris.lyons@exeloncorp.commailto:clifford.franklin@westarenergy.commailto:djames@spp.orgmailto:kgalke@teainc.orgmailto:landerson@les.commailto:mmoore@gsec.coopmailto:mmushrush@ompa.commailto:daney@kmea.commailto:rmccord@empiredistrict.commailto:ryanovich@oppd.commailto:rfthomp@nppd.commailto:vweigel@bepc.commailto:bigkniaw@oge.commailto:amcqueen@spp.orgmailto:afolds@spp.orgmailto:ahoekman@mrenergy.commailto:bgifford@spp.orgmailto:bwittmeyer@longhornpower.commailto:b_mccracken@wfec.commailto:brian.g.buffington@xcelenergy.commailto:brian.rounds@aeslconsulting.commailto:cgiles@tcec.coopmailto:cwinbrun@indepmo.orgmailto:dtrent@aeci.orgmailto:dbinkley@itctransco.commailto:ddaniels@spp.orgmailto:drdietz@nppd.commailto:dclark@spp.orgmailto:ella.caillouette@northwestern.commailto:ealexander@grda.commailto:ecathey@spp.orgmailto:eguney@spp.org

X Gary Cate SPP gcate@spp.orgX Geoffrey M Rush Oklahoma Corp Comm g.rush@occemail.comP Ginny Watson SPP gwatson@spp.orgP Hailey McKewon GRDA hmckewon@grda.comP Heather Starnes MJMEUC/CUS/SCMCN hstarnes1969@gmail.comP Jack Clark NEE jack.clark@nee.comX Jack Madden GDS Associates jack.madden@gdsassociates.comX Jake Pannell SPP jpannell@spp.orgP Jared Greenwalt SPP jgreenwalt@spp.orgX Jason Bulloch SPP jbullock@spp.orgP Jason Russell SPP jrussell@spp.orgP Jerin Purtee KBPU jpurtee@bpu.comP Jerry Tielke MREnergy jtielke@mrenergy.comP Jessica Kasparek LES jkasparek@les.comP Jill Coffey KCPL jill.coffey@kcpl.comP Jill Jones MEAN jjones@nmppenergy.orgX Jim Gonzalez SPP jgonzalez@spp.orgP Jodi Woods SPP jwoods@spp.orgX John Krajewski NEPRB jk@jenergyconsulting.comX John Luallen SPP jluallen@spp.orgP John Seck KMEA seck@kmea.comX John Tennyson City Utilities john.tennyson@cityutilities.netX John Varnell Tenaska jvarnell@tnsk.com (817) 462-1037P Kevin Bates SPP kbates@spp.orgX Kim Sullivan WFEC k_sullivan@wfec.comP Leann Poteet SPP lpoteet@spp.orgP Marisa Choate SPP mchoate@spp.org (501) 688-1707P Mark Messerli WAPA messerli@wapa.govP Mark Trumble OPPD mtrumble@oppd.comX Marquerite Wagner ICT Transco mwagner01@itctransco.comP McCord Stowater HCPD mstowater@hcpd.comX Micha Bailey SPP mcbailey@spp.org (501) 688-2522P Michael Daly SPP mdaly@spp.orgP Michael Hodges SPP mhodges@spp.orgP Michelle Trenary TNSK mtrenary@tnsk.comP Natasha Brown WFEC natasha.brown@wfec.comP Neil Robertson SPP nrobertson@spp.orgP Nick Parker SPP nparker@spp.org (501) 614-3574P Nicole Wagner SPP jwagner@spp.orgP Patrick Shoop CES-LTD pshoop@ces-ltd.comP Patti Kelly SPP pkelly@spp.org (501) 614-3381P Peter Tucker SPP ptucker@spp.orgP Raleigh Mohr SPP rmohr@spp.orgP Randy Root GRDA rroot@grda.com

mailto:gcate@spp.orgmailto:g.rush@occemail.commailto:g.rush@occemail.commailto:gwatson@spp.orgmailto:hmckewon@grda.commailto:hstarnes1969@gmail.commailto:jack.clark@nee.commailto:jack.madden@gdsassociates.commailto:jpannell@spp.orgmailto:jgreenwalt@spp.orgmailto:jbullock@spp.orgmailto:jrussell@spp.orgmailto:jtielke@mrenergy.commailto:jkasparek@les.commailto:jill.coffey@kcpl.commailto:jjones@nmppenergy.orgmailto:jgonzalez@spp.orgmailto:jwoods@spp.orgmailto:jk@jenergyconsulting.commailto:jluallen@spp.orgmailto:seck@kmea.commailto:john.tennyson@cityutilities.netmailto:jvarnell@tnsk.commailto:kbates@spp.orgmailto:k_sullivan@wfec.commailto:lpoteet@spp.orgmailto:mchoate@spp.orgmailto:messerli@wapa.govmailto:mtrumble@oppd.commailto:mwagner01@itctransco.commailto:mstowater@hcpd.commailto:mcbailey@spp.orgmailto:mdaly@spp.orgmailto:mhodges@spp.orgmailto:mtrenary@tnsk.commailto:natasha.brown@wfec.commailto:nrobertson@spp.orgmailto:nparker@spp.orgmailto:jwagner@spp.orgmailto:pshoop@ces-ltd.commailto:pkelly@spp.orgmailto:ptucker@spp.orgmailto:rroot@grda.com

P Raymond Kershaw ITC Transco rkershaw@itctransco.comP Rebecca Schwarz AEP raschwarz@aep.comP Ricky Finkbeiner SPP rfinkbeiner@spp.orgP Robert Janssen Kelson Energy rob.janssen@kelsonenergy.comP Robert Safuto Customized Energy Solutions rsafuto@ces-ltd.com (917) 446-2579P Robyn Vanover SPP rvanover@spp.orgX Ron Chartier SECI rchartier@sunflower.netP Roy True Aces Power Marketing (APM) royt@acespower.com (317) 695-4146 (317) 695-4146P Ryan Turner CUS ryan.turner@cityutilities.netP Sherry Hamilton SPP shamilton@spp.orgP Sonya Hall SPP shall@sppp.orgP Stephen B. McKee AEP sbmckee@aep.comP Steve Gaw Wind Capital Group RSGaw1@gmail.com (573) 645-0727P Steve White SPP swhite@spp.orgP Temper Williams SPP trwilliams@spp.orgP Terry Gates AEP tlgates@aep.com (614) 716-6232 (614) 361-5235P Terry Wright EDE twright@empiredistrict.comP Tom Sandoz NextEra thomas.sandoz@nee.comX Tony Alexander SPP talexander@spp.orgP Ty Mitchell SPP tmitchell@spp.orgP Yassar Bahbaz SPP ybahbaz@spp.org

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mailto:raschwarz@aep.commailto:rfinkbeiner@spp.orgmailto:rob.janssen@kelsonenergy.commailto:rsafuto@ces-ltd.commailto:rvanover@spp.orgmailto:rchartier@sunflower.netmailto:royt@acespower.commailto:ryan.turner@cityutilities.netmailto:shamilton@spp.orgmailto:shall@sppp.orgmailto:sbmckee@aep.commailto:RSGaw1@gmail.commailto:swhite@spp.orgmailto:trwilliams@spp.orgmailto:tlgates@aep.commailto:twright@empiredistrict.commailto:thomas.sandoz@nee.commailto:talexander@spp.orgmailto:tmitchell@spp.orgmailto:ybahbaz@spp.org

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Micha Bailey

From: Thompson Jr., Ronald F. Sent: Tuesday, April 19, 2016 8:09 AMTo: Micha BaileyCc: Dietz, Dirk; Debbie JamesSubject: **External Email** RE: April 19-20 MWG Meeting

Micha and Debbie  Dirk Dietz will be the Proxy for NPPD starting at 1200 today  rft  From: Micha Bailey [mailto:mcbailey@spp.org] Sent: Thursday, April 14, 2016 8:43 AM To: Thompson Jr., Ronald F. Subject: RE: April 19-20 MWG Meeting  **WARNING** This message originated outside of NPPD. DO NOT click on any links or attachments unless you have confirmed that it is from a trusted sender.

Thank you Ron. When you get your proxy, please send me an email.  Thank you, Micha Bailey  From: Thompson Jr., Ronald F. [mailto:rfthomp@nppd.com] Sent: Wednesday, April 13, 2016 9:43 AM To: Micha Bailey Subject: **External Email** RE: April 19-20 MWG Meeting  Micha  I will not be able to make the meeting in period but will  be on the call but will have a proxy for a short period in the afternoon  rft  From: Micha Bailey [mailto:mcbailey@spp.org] Sent: Monday, April 11, 2016 1:33 PM To: SPP MWG (Members Only) Subject: April 19-20 MWG Meeting  **WARNING** This message originated outside of NPPD. DO NOT click on any links or attachments unless you have confirmed that it is from a trusted sender.

MWG Members,      Please reply to me and let me know if you are planning on attending the April 19‐20, meeting in person, by phone or if you will have a proxy. 

1

Micha Bailey

From: McBroom, Shawn Sent: Monday, April 11, 2016 2:02 PMTo: Micha BaileyCc: Bigknife, AdamSubject: **External Email** Re: April 19-20 MWG Meeting

Adam Bigknife with OG&E will be serving as my proxy via phone call for the April 2016 MWG meeting.  Thank you Shawn McBroom 

 On Apr 11, 2016, at 1:33 PM, Micha Bailey  wrote: 

MWG Members,      Please reply to me and let me know if you are planning on attending the April 19‐20, meeting in person, by phone or if you will have a proxy. Thank you, Micha Bailey 

____________________________________ Micha Bailey | Southwest Power Pool | Market Design Analyst | 501.688.2522 201 Worthern Drive | Little Rock, AR 72223 |  mcbailey@spp.org       

Confidentiality Warning: This message and any attachments are intended only for the use of the recipient(s), are confidential, and may be privileged. If you are not the intended recipient, you are hereby notified that any review, retransmission, conversion to hard copy, copying, circulation or other use of all or any portion of this message and any attachments is strictly prohibited. If you are not the intended recipient, please notify the sender immediately by return email and delete this message and any attachments from your system.

1

Micha Bailey

From: Richard McCord Sent: Monday, April 11, 2016 5:54 PMTo: Micha BaileyCc: Wright, TerrySubject: **External Email** Re: [EXTERNAL] April 19-20 MWG Meeting

Proxy Please accept Terry Wright as my proxy  Sent from my iPad  On Apr 11, 2016, at 12:33 PM, Micha Bailey  wrote:  MWG Members,      Please reply to me and let me know if you are planning on attending the April 19‐20, meeting in person, by phone or if you will have a proxy. Thank you, Micha Bailey ____________________________________ Micha Bailey |  Southwest Power Pool |  Market Design Analyst | * 501.688.2522 201 Worthern Drive | Little Rock, AR 72223 | * mcbailey@spp.org    ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Note: To protect against computer viruses, e‐mail programs may prevent sending or receiving certain types of file attachments.  Check your e‐mail security settings to determine how attachments are handled.  ‐‐ This e‐mail and any files transmitted with it are the property of THE EMPIRE DISTRICT ELECTRIC COMPANY, are confidential, and are intended solely for the use of the individual or entity to whom this email is addressed. If you are not one of the named recipients or otherwise have reason to believe that you have received this message in error, please delete this message immediately from your computer and contact the sender by telephone at (417)‐625‐5100. Any other use, retention, dissemination, forwarding, printing or copying of this email is strictly prohibited. 

Relationship-Based • Member-Driven • Independence Through Diversity

Evolutionary vs. Revolutionary • Reliability & Economics Inseparable

MARKET WORKING GROUP MEETING

April 19, 2016

AEP Office – Dallas, TX

• A G E N D A •

Day 1: 8:00 a.m. – 6:00 p.m.

1. Call to Order, Proxies, Agenda Discussion ............................................................................ Richard Ross

2. Consent Agenda (approval item)

a. MWG March 22 Minutes Approval .................................................................... Richard Ross

3. Working Group/Committee Updates ................................................................................... Richard Ross

a. Price Formation Task Force Update ................................................................... Matt Moore

b. April MOPC Update ............................................................................................ Richard Ross

4. Marketplace RR October 2016 MOPC Schedule .................................................................... Erin Cathey

5. 2016 Marketplace Symposium ........................................................................................... Michael Daily

6. RR161 Commitment Level Cost Recovery and MCR Settlement Design Enhancements

(approval item) ......................................................................................... John Luallen and Micha Bailey

7. RR135 Revision of Physical Withholding Rules (approval item) ........................................ Serhat Guney

a. Updates to Stakeholder Feedback ............................................................... Jared Greenwalt

8. MWG Action item #236 adding Price admin for System Ramp Violations ............................ Nick Parker

9. Electrically Equivalent Settlement Locations Cost Estimate .................................................. Nick Parker

10. Action items from RR139 Real-Time Loss of Opportunity MWP ................................................ SPP Staff

a. MWG Action item #295 Capacity of NDVERs by Turbine Class ......................... Jim Gonzalez

b. MWG Action item #297 Firm Transmission for NDVERs .................................. Debbie James

Relationship-Based • Member-Driven • Independence Through Diversity

Evolutionary vs. Revolutionary • Reliability & Economics Inseparable

11. RR153 Offer Database Roll Forward IA (approval item) ........................................................ Kevin Galke

a. Action Item #298 - Offer Database Roll Forward Education .............................. Micha Bailey

12. Congestion Hedging Quarterly Update .................................................................................. Ty Mitchell

13. Marketplace Updates

a. MMU Marketplace Update .............................................................................. Jason Bulloch

b. RTO Marketplace Update ................................................................................... Jason Russel

c. Regulatory Report ........................................................................................... Marisa Choate

d. Quarterly RR Report ............................................................................................. Erin Cathey

e. Quarterly MWG Action Items ............................................................................. Micha Bailey

14. Written Reports

a. GFA Quarterly Report ......................................................................................... John Luallen

15. Review of Motions, Action Items and Future Meetings ....................................................... Micha Bailey

16. RR4_MPRR 130b Must Offer Penalty Calculation and Clarification (postpone)............. Jared Greenwalt

17. RR7_MPRR 155 Modification of OOME Rules (postpone).............................................. Jared Greenwalt

18. RR10_MPRR 169 Clear and Unambiguous Must Offer Proposal (postpone) ....................... Richard Ross

19. RR114 Add Energy Storage Rules to Marketplace (postpone until May) ............................... Erin Cathey

20. Adjournment ........................................................................................................................ Richard Ross

Southwest Power Pool

MARKET WORKING GROUP MEETING

March 22, 2016

AEP Offices – Dallas, TX • Summary of Motions •

Motions: Agenda Item 2 – Consent Agenda Ron Thompson (NPPD) motioned and Lee Anderson (LES) seconded to approve the consent agenda as presented to the MWG. The motion passed with no oppositions and no abstentions. Agenda Item 5 – RR91 Annual Allocation Percent Change SPP Comments Shawn McBroom (OGE) motioned and Bruce Walkup (AECC) seconded to approve SPP comments dated on 3/11/2016 for RR91 as presented to the MWG. The motion passed with no oppositions and two abstentions (NPPD, Xcel). Agenda Item 6 – RR2_MPRR 116 Settlement Area Tie-Line Meter Data Submittal IA Cliff Franklin (WR) motioned and Rick McCord (EDE) seconded to approve RR2_MPRR116 impact analysis as presented to the MWG and to update the RR2_MPRR116 to the current Protocols. The motion passed with four oppositions (AEP, KCPL, OGE, OPPD) and two abstentions (CUS, KMEA). Agenda Item 10 – RR153 Offer Database Roll Forward Tabled motion from 2/23/2016 - Kevin Galke (CUS) motioned and Valerie Weigel (Basin) seconded to approve RR153 as submitted to the MWG. This motion to approve RR153 was withdrawn by CUS. Kevin Galke (CUS) motioned and Cliff Franklin (WR) seconded to table RR153 until April’s MWG meeting. The motion passed with ten in favor (Xcel, Exelon, WR, CUS, LES, GSEC, OMPA, Midwest, NPPD, Basin), six in oppositions (AEP, KCPL, TNSK, AECC, KMEA, OGE) and one abstention (EDE). Agenda Item 11 – RCWG RR Task Force Recommendation Tabled motion from 2/23/2016 - Richard Ross (AEP) motioned and Chris Lyons (Exelon) seconded to reject the recommendations from the RCWG RR Task Force as presented to the MWG. This motion to reject was withdrawn by AEP. Kevin Galke (CUS) motioned and Jim Flucke (KCPL) seconded to approve the RCWG RR recommendation as presented to the MWG on 2/23/2016. The motion passed with no oppositions and no abstentions. Agenda Item 14 – RR125 Removal of Day-Ahead Limited Must Offer Jim Flucke (KCPL) motioned to move RR125 forward to April’s MOPC. The motion failed for approval because there was no second to the motion.

Minutes No. [241]

Southwest Power Pool

MARKET WORKING GROUP MEETING

March 22, 2016

AEP Offices – Dallas, TX • M I N U T E S •

Agenda Item 1 — Call to Order, Proxies, Agenda Discussion Richard Ross (AEP) called the meeting to order at 8:00 a.m. The attendance was recorded and proxies were announced (Attachment 1 - MWG Attendance March 22 2016). The following members were represented by proxy:

Bruce Walkup (AECC) for Brad Johnston (AECC) (Attachment 1a - Brad Johnston Proxy)

The group reviewed the agenda (Attachment 2 - MWG Agenda for March 2016). Agenda Item 2 — Consent Agenda Richard Ross (AEP) introduced the consent agenda items and asked if anyone would like to remove any items (Attachment 3 - MWG February 23 2016 Minutes). Ron Thompson (NPPD) motioned and Lee Anderson (LES) seconded to approve the consent agenda as presented to the MWG. The motion passed with no oppositions and no abstentions. Agenda Item 3a — Working Group/Committee Updates - Price Formation Task Force Update Matt Moore (GSEC) provided an update from the March Price Formation Task Force (PFTF) meeting. The PFTF discussed the draft definition and metrics of “market efficiency”. Matt updated the MWG that the PFTF would have a conference call on March 31th and the first face to face meeting would be on April 18th in Dallas. Agenda Item 4 — Marketplace RR July 2016 MOPC Schedule Erin Cathey (SPP) displayed the July 2016 MOPC Schedule and explained the date of 04/04/2016 as the submission deadline for non-expedited MWG Revision Requests to make it to the July 2016 MOPC (Attachment 4 - July MOPC Schedule for RRs). Agenda Item 5 — RR91 Annual Allocation Percent Change SPP Comments Nick Parker (SPP) presented SPP’s comments on FERC compliance Order ER16-13 (Attachment 5 - RR91 Recommendation Report, Attachment 6 - RR91 SPP Comments 03-11-2016 and Attachment 7 - RR91 Conditional Acceptance Order). FERC conditionally accepted the Tariff revisions in RR91. FERC directed SPP to make available 60 percent of the transmission system capability for the fall, winter and spring seasons during the annual ARR allocation process. Shawn McBroom (OGE) motioned and Bruce Walkup (AECC) seconded to approve SPP comments dated on 3/11/2016 for RR91 as presented to the MWG. The motion passed with no oppositions and two abstentions (NPPD, Xcel).

Minutes No. [241]

Agenda Item 6 — RR2_MPRR 116 Settlement Area Tie-Line Meter Data Submittal IA Jared Greenwalt (SPP) reviewed RR2_MPRR116 and presented the impact analysis to the MWG (Attachment 8 - RR2_MPRR 116 Recommendation Report and Attachment 9 - RR2_MPRR116 Impact Analysis). RR2_MPRR116 was previously approved by the MWG and was awaiting an impact analysis to be completed. RR2_MPRR116 allows the submission of Settlement Area Tie Lines meter data to be submitted to SPP in five minute intervals instead of hourly intervals. Cliff Franklin (WR) motioned and Rick McCord (EDE) seconded to approve RR2_MPRR116 impact analysis as presented to the MWG and to update the RR to the current Protocols. The motion passed with four oppositions (AEP, KCPL, OGE, OPPD) and two abstentions (CUS, KMEA). Agenda Item 7 — Removing BSSs from OCL MMU ASOM Recommendation Jason Bulloch (SPP MMU) and John Luallen (SPP) discussed removing Bilateral Settlement Schedules (BSSs) from the Over Collected Losses (OCL) Distribution from the Annual State of the Market MMU Recommendation (Attachment 10 - Bischeds and OCL). Jason explained to the MWG that the SPP MMU recommended removing BSSs from OCL rebates because of the potential “past post” gaming opportunities and because of the dilution BSSs have on the OCL rebates. OCL rebates are paid to BSSs that are withdrawing MWs regardless of whether those MWs contributed to the over collection of losses and can be placed or modified up to 44 days after the operating date. John illustrated the issues by showing the MWG examples of how “past post” gaming and dilution could happen in SPP’s Integrated Marketplace. Members were concerned about removing all BSSs from the OCL rebate, and recommended that SPP only remove the OCL rebate for BSSs that game the market. MWG agreed to close Action Item 291 and to update the MMU ASOM presentation to the MOPC. Agenda Item 8 — MCR Settlement Design Enhancements John Luallen (SPP) presented to the MWG the MCR Settlement Design Enhancements (Attachment 11 - MCR Settlement Design Enhancements). Don Shipley advised the group that SPP identified issues with the Settlements market design related to complexity of adjacent and overlapping commitments during the requirements gathering phase of the ECC project. SPP developed market design changes to address this issue, and is moving forward with the changes to keep the ECC project on schedule.

John Luallen explained that there is an issue with cost recovery and allocation for start-up and transitions, and there is an issue with cost recovery and allocation for Energy and Operating Reserve Products for Multi Configuration-Based Combined Cycle Resources (MCRs). He provided examples to demonstrate the problem, and to illustrate the solution. SPP developed a "netting approach" that nets Day-Ahead Market and RTBM start-up and transition costs together. John also explained that SPP plans to use this "netting approach" for non-MCRs. The benefits of having non-MCRs settle using the netting approach includes: 1) one set of start-up cost recovery rules applied to all Resources in Settlements and SCUC; 2) non-MCRs can adopt the netting approach for start-up recovery, and MCRs cannot be settled using the current non-MCR rules; and 3) there would be consistency between the assumptions about start-up/transition cost recovery between SCUC and Settlements.

SPP staff will create a Revision Request and present the changes at the April MWG meeting. Agenda Item 9a — Action items from RR139 Real-Time Loss of Opportunity MWP - Action item 296 Jason Bullock (SPP MMU) updated the MWG on Action Item 296. MWG requested the SPP MMU to research how they would monitor the mitigated offer and actual offer curve of VERs if an opportunity

Minutes No. [241]

cost make whole payment were to be implemented. Jason explained the SPP MMU would use the current physical withholding screens and the mitigated offer reviews to monitor the negative offers of VERs. MWG directed SPP to close MWG Action Item 296. Agenda Item 10 — RR153 Offer Database Roll Forward IA Tabled motion from 2/23/2016 - Kevin Galke (CUS) motioned and Valerie Weigel (Basin) seconded to approve RR153 as submitted to the MWG. This motion to approve RR153 was withdrawn by CUS. Micha Bailey (SPP) presented the impact analysis to the MWG (Attachment 12 - RR153 Offer Database Roll Forward and Attachment 13 - RR153 Impact Analysis). Micha explained member impacts of RR153 would be to the Market User Interface and/or Markets API. Members were concerned with changing the current offer database roll forward logic. Some members are not affected by the same issue as described in RR153. When a Market Participant submits a week’s worth of data and then makes an intraday change to one of the operating days that intraday change is rolled forward to all operating days. Some members do not want the intraday change to roll forward. Other members update all of their offers daily which overwrites any intraday change and prevents it from rolling forward to the next Operating Day. MWG requested SPP Staff educate the group on how the roll forward logic works today, and explain how RR153 will change the current logic. Kevin Galke (CUS) motioned and Cliff Franklin (WR) seconded to table RR153 until April’s MWG meeting. The motion passed with ten in favor (Xcel, Exelon, WR, CUS, LES, GSEC, OMPA, Midwest, NPPD, Basin), six in oppositions (AEP, KCPL, TNSK, AECC, KMEA, OGE) and one abstention (EDE). Agenda Item 11 — RCWG RR Task Force Recommendation Tabled motion from 2/23/2016 - Richard Ross (AEP) motioned and Chris Lyons (Exelon) seconded to reject the recommendations from the RCWG RR Task Force as presented to the MWG. This motion to reject was withdrawn by AEP. RCWG Revision Request Task Force (RRTF) reviewed Tariff, Criteria, Market Protocols and Business Practices to determine sections which require RCWG secondary approval. Based on the RRTF recommendation, the RCWG requests to be secondary approvers for seven sections in the Integrated Marketplace Protocols (Attachment 14 - RCWG-RRTF Recommendation Report to MWG-20150223). Kevin Galke (CUS) motioned and Jim Flucke (KCPL) seconded to approve the RCWG RR recommendation as presented to the MWG on 2/23/2016. The motion passed with no oppositions and no abstentions. Agenda Item 12 — RR99 STRUC with QS Carve Out Update Gary Gate (SPP) updated the MWG on the implementation of the Short Term Reliability Unit Commitment (STRUC) (Attachment 15 - STRUC March 2017 MWG). Gary presented an overview of the market design of STRUC. He explained that STRUC went into production on February 23, 2016 and ran only for a couple of days. STRUC had two issues that were discovered during the two days of operations. SPP operations fixed both issues and will move STRUC back into production after testing is completed. Agenda Item 13 — Individual DA Dispute Threshold John Luallen (SPP) and Micha Bailey (SPP) presented the individual Day-Ahead Market dispute threshold to the MWG (Attachment 16 - Individual DA Dispute Threshold). Using a threshold defined by the MWG,

Minutes No. [241]

SPP will review the dispute, perform analysis to determine the potential amount to be granted and apply the granted dispute amount through miscellaneous adjustment charge type. SPP proposed a threshold amount of $25,000, and explained that the threshold should include SPP and Market Participant’s estimated cost to resettle. Members acknowledged that there should be a threshold in the DAMKT, but were concerned $25,000 was too high of a threshold. MWG directed SPP to draft a revision request and bring back for further discussion. Agenda Item 14 — RR125 Removal of Day-Ahead Limited Must-Offer Richard Ross (AEP) discussed RR125 with the MWG (Attachment 17 - RR125 Recommendation Report). At the December MWG meeting, the MWG approved to postpone RR125 from going to the January MOPC until after the MWG had further discussion on Physical Withholding. Richard asked the MWG to move RR125 forward to April’s MOPC since the MWG did discuss Physical Withholding at previous meetings. Jim Flucke (KCPL) motioned to move RR125 forward to April’s MOPC. The motion failed for approval because there was no second to the motion. Members determined that further discussion was needed in the April MWG meeting on Physical Withholding before the MWG could make a decision to move RR125 forward to MOPC. Agenda Item 15 — Current Market Conditions Effect on Pricing Gary Cate (SPP) presented the current market conditions effect on pricing (Attachment 18 - Current Market Conditions Effect on Pricing). Gary explained to the MWG that SPP has a large amount of excess capacity above obligation in some hours and large amounts of Day-Ahead “Self” commitments which causes depressed prices in both Day-Ahead Market and RTBM. Agenda Item 16 — RR104 DVER Minimum Limit Carrie Dixon (Xcel) withdrew RR104 DVER Minimum Limit (Attachment 19 - RR 104 DVER Minimum Limit & Ramp Rate Requirement Change, Attachment 20 - RR104 SPP Comments 9-6-2015, Attachment 21 - RR104 Xcel Comments 7-8-2015 and Attachment 22 - RR104 Xcel Comments 8-28-2015). Agenda Item 17a — MMU Marketplace Update Jason Bullock (SPP MMU) presented the MMU Marketplace Update and answered questions from the group (Attachment 23 - 201602 MWG MMU Market Update). Agenda Item 17b — RTO Marketplace Update Jeremy Verzosa (SPP) presented the highlights from the RTO Marketplace Update and answered questions from the group (Attachment 24 - March 2016 RTO Update). Agenda Item 17c — Regulatory Report Marisa Choate (SPP) presented the Regulatory Report and answered questions from the group (Attachment 25 - 2016 03 Regulatory Report to MWG). Agenda Item 18 - Review of Motions, Action Items and Future Meetings

Motions: Agenda Item 2 – Consent Agenda Ron Thompson (NPPD) motioned and Lee Anderson (LES) seconded to approve the consent agenda as presented to the MWG. The motion passed with no oppositions and no abstentions.

Minutes No. [241]

Agenda Item 5 – RR91 Annual Allocation Percent Change SPP Comments Shawn McBroom (OGE) motioned and Bruce Walkup (AECC) seconded to approve SPP comments dated on 3/11/2016 for RR91 as presented to the MWG. The motion passed with no oppositions and two abstentions (NPPD, Xcel). Agenda Item 6 – RR2_MPRR 116 Settlement Area Tie-Line Meter Data Submittal IA Cliff Franklin (WR) motioned and Rick McCord (EDE) seconded to approve RR2_MPRR116 impact analysis as presented to the MWG and to update the RR2_MPRR116 to the current Protocols. The motion passed with four oppositions (AEP, KCPL, OGE, OPPD) and two abstentions (CUS, KMEA). Agenda Item 10 – RR153 Offer Database Roll Forward Tabled motion from 2/23/2016 - Kevin Galke (CUS) motioned and Valerie Weigel (Basin) seconded to approve RR153 as submitted to the MWG. This motion to approve RR153 was withdrawn by CUS. Kevin Galke (CUS) motioned and Cliff Franklin (WR) seconded to table RR153 until April’s MWG meeting. The motion passed with ten in favor (Xcel, Exelon, WR, CUS, LES, GSEC, OMPA, Midwest, NPPD, Basin), six in oppositions (AEP, KCPL, TNSK, AECC, KMEA, OGE) and one abstention (EDE). Agenda Item 11 – RCWG RR Task Force Recommendation Tabled motion from 2/23/2016 - Richard Ross (AEP) motioned and Chris Lyons (Exelon) seconded to reject the recommendations from the RCWG RR Task Force as presented to the MWG. This motion to reject was withdrawn by AEP. Kevin Galke (CUS) motioned and Jim Flucke (KCPL) seconded to approve the RCWG RR recommendation as presented to the MWG on 2/23/2016. The motion passed with no oppositions and no abstentions. Agenda Item 14 – RR125 Removal of Day-Ahead Limited Must Offer Jim Flucke (KCPL) motioned to move RR125 forward to April’s MOPC. The motion failed for approval because there was no second to the motion. Action Items:

• Agenda Item 10 - MWG requested SPP Staff educate the group on how the roll forward logic works today, and explain how RR153 will change the current logic.

Future Agenda Items: RR Removing OCL distribution from BSSs RR114 Add Energy Storage Rules to Marketplace RR135 Revision of Physical Withholding Rules RR MCR Settlement Design Enhancement Future Meetings: PFTF Meetings: April 18, 2016 (1:00 p.m. – 6:00 p.m.) Location: AEP Office – Dallas, TX Room: 8th Floor

Minutes No. [241]

MWG Meetings: April 19, 2016 (8:00 a.m. – 6:00 p.m.) April 20, 2016 (8:00 a.m. – 12:00 p.m.) Location: AEP Office – Dallas, TX Room: 8th Floor May 24, 2016 (8:00 a.m. – 6:00 p.m.) May 25, 2016 (8:00 a.m. – 12:00 p.m.) Location: AEP Office – Dallas, TX Room: 8th Floor Agenda Item 19 — RR4_MPRR 130b Must Offer Penalty Calculation and Clarification This item was postponed. Agenda Item 20 — RR7_MPRR 155 Modification of OOME Rules This item was postponed. Agenda Item 21 — RR10_MPRR 169 Clear and Unambiguous Must Offer Proposal This item was postponed. Agenda Item 22 — RR114 Add Energy Storage Rules to Marketplace This item was postponed until April’s MWG meeting. Agenda Item 23 — RR135 Revision of Physical Withholding Rules This item was postponed until April’s MWG meeting.

Agenda Item 24 – Adjournment Richard Ross (AEP) adjourned the meeting at 4:15pm.

Respectfully Submitted, Debbie James Secretary

Minutes No. [241]

Attachments Attachment 1 - MWG Attendance March 22 2016 Attachment 1a - Brad Johnston Proxy Attachment 2 - MWG Agenda for March 2016 Attachment 3 - MWG February 23 2016 Minutes Attachment 4 - July MOPC Schedule for RRs Attachment 5 - RR91 Recommendation Report Attachment 6 - RR91 SPP Comments 03-11-2016 Attachment 7 - RR91 Conditional Acceptance Order Attachment 8 - RR2_MPRR 116 Recommendation Report Attachment 9 - RR2_MPRR116 Impact Analysis Attachment 10 - Bischeds and OCL Attachment 11 - MCR Settlement Design Enhancements Attachment 12 - RR153 Offer Database Roll Forward Attachment 13 - RR153 Impact Analysis Attachment 14 - RCWG-RRTF Recommendation Report to MWG-20150223 Attachment 15 - STRUC March 2017 MWG Attachment 16 - Individual DA Dispute Threshold Attachment 17 - RR125 Recommendation Report Attachment 18 - Current Market Conditions Effect on Pricing Attachment 19 - RR 104 DVER Minimum Limit & Ramp Rate Requirement Change Attachment 20 - RR104 SPP Comments 9-6-2015 Attachment 21 - RR104 Xcel Comments 7-8-2015 Attachment 22 - RR104 Xcel Comments 8-28-2015 Attachment 23 - 201602 MWG MMU Market Update Attachment 24 - March 2016 RTO Update Attachment 25 - 2016 03 Regulatory Report to MWG

1

MWG RR October 2016 MOPC ScheduleMWG RR Submission Deadline for Non-Expedited

7/6/2016MWG RR Posting Deadline for Non-Expedited

7/8/2016MWG Meeting before MOPC for RRs

7/19/2016ORWG Meeting before MOPC for RRs

8/4/2016RTWG Meeting before MOPC for RRs

8/25/2016TWG Meeting before MOPC for RRs

9/14/2016MOPC Meeting Materials due date

9/30/2016

IntegratedMarketplace Training Update

April 2016

2016 Marketplace Symposium

Wednesday, October 5 and Thursday, October 6SPP Corporate Center

Registration will open in June

Last Year was a Success

• 99 registered out of 100 seats

• 93 of 100 participants attended

• Feedback was very positive

Image: askmesuccess.com

“Having the SMEs available for questions as

they arose during the training was great.”

What Will 2016 Look Like?

Duplicate successes from 2015

• Length of sessions

• Variety of speakers

• Interaction with SPP Staff and Subject Matter Experts

Modify based on opportunities identified from 2015

• Shorter lunch

• End earlier on Day 2

What Do You Want to Talk About?

Are any of the below of interest? Any other topics on your radar? Submit any and all suggestions to training@spp.org.

Questions and Answers with SPP Operations Out-of-Merit Energy (OOME)

Enhanced Combined Cycle (ECC) Overview Headroom/Floorroom

Scenarios in the Day-Ahead Market Variable Energy Resources (VERs)

Emergency Operating Plan (EOP) How SPP Operator and Market Participant Actions Impact Settlements (Part 2)

Congestion Management Events (CMEs) Reliability Unit Commitment (RUC) Scenarios

Make-Whole Payment (Day-Ahead vs. Real-Time) Flags: What do they do and What do they mean?

mailto:training@spp.org

Upcoming Training

Commitment Considerations in the Day-Ahead Market

Thursday, May 26th 9:00 am

Wednesday, September 7th 2:00 pm

Thursday, December 1st 2:00 pm

Myth Busting Ramp in the Integrated Marketplace

Wednesday, June 1st 2:00 pm

Tuesday, August 9th 2:00 pm

Thursday, November 17th 2:00 pm

Questions about this training update?

Amy Casavechia, Sr. Customer Traineracasavechia@spp.org

Becky Gifford, Instructional Designer/Trainerbgifford@spp.org

Michael Daly, Sr. Customer Trainermdaly@spp.org

For all other Questions: Submit a Request via RMS

mailto:acasavechia@spp.orgmailto:bgifford@spp.orgmailto:mdaly@spp.org

RR161 Commitment Level Cost Recovery and MCR Settlement Design EnhancementsJohn Luallen and Micha Bailey (SPP)

MWG April 19-20, 2016

2

• NON-MCRs Account for cost avoidance in Start-Up costs through netting Allocation of Start-Up costs between DA Market and RUC MWP

• MCRs Start-Up and Transition cost eligibility through netting Incremental Energy costs in RUC MWP Incremental OR product costs in RUC MWP

Including Unused Mileage

Hold harmless for buying back OR products during transition Hold harmless for buying back Energy for canceled DA transitions Allocation of RUC MWP for deviations

3

RR161 – Settlement Changes

• Make Start-Up and Transition costs “Commitment-Level” Calculation of start-up and transition costs eligible for recovery Allocation eligible start-up and transition costs

• RUC commitments overlapping DA Market commitments Calculation of incremental Energy and OR costs between RUC and DA

Market MWPs Calculation of URD quantity

• RUC MWP Allocation Allocation of Deviation MWs to MCRs

• Hold MCRs harmless for buying back OR products during non-forced transition

• Hold MCRs harmless for a RUC de-commitment of a DA Market committed configuration

4

RR161 – Market Design Settlement Changes

RR161 – Commitment-Level Costs

• MWPs are determined by adding all eligible costs and all eligible revenue for the eligibility period

• Current Design – Start-up costs are allocated hourly or 5-minute across the lessor of 24 hours or the Resource’s Minimum Run Time And then summed back up within an eligibility period

• MCRs have transition costs in addition to start-up costs, and each configuration has a Minimum Run

• Rather than split costs out across time and then sum them back up to the eligibility period, start-up and transitions costs will become a commitment cost, associated with a MWP eligibility period

5

RR161 – Commitment-Level Costs

• The following costs are considered commitment-level costs: Start-Up costs – All Resources (current and future) Canceled Start-Up costs - All Resources (current and future) Transition costs – MCR Resources (future) RUC Remainder costs – All Resources (current and future) DA-to-RUC Shared costs – All Resources (future) Canceled Transition costs – MCR Resources (future)

• Adjustments to commitment-level costs for determining eligible costs (future): Pre-existing Start-Up and transition costs – All Resources

Costs already settled

Costs incurred by MP but not eligible for recovery

Non-Performance costs - All Resources Costs made ineligible due to eligibility rules

6

RR161 – Commitment-Level Costs

• Canceled Start-Up costs Costs incurred in starting a Resource for a commitment that is canceled

by SPP during the start-up window Time based pro-rata share of Resource Start-Up Offer

• Actual Start-Up and Transition costs Costs associated with contiguous commitments which represent the

final schedule for a Market (DA Market or RTBM) Subject to replacement when adjacent to forced start and/or transition Subject to eligibility rules

• Canceled Transition costs Costs incurred in transitioning an MRC to a configuration that is

canceled by SPP during the transition window Time based pro-rata share of Resource Transition Offer

7

RR161 – Commitment-Level Costs

• Pre-Existing Start-Up and Transition costs Costs already settled

RTBM – DA Market commitments (Market or Self)

Costs not eligible for recovery DA Market – DA Market commitments in “Self” status

RTBM – RUC commitments in “Self” status

• Non-Performance costs Start-Up and/or Transition costs that are not eligible for recovery due to

eligibility criteria Start-Up and/or Transition must be in a commitment containing a “Self” status

8

RR161 – Commitment-Level Costs

• RUC Remainder costs Start-Up costs from a RUC commitment that are eligible for recovery in

an adjacent and following DA Market Commitment RUC Commitment made prior to DA Market Commitment

RUC Commitment less than group minimum runtime

• Day-Ahead to RUC shared costs Start-Up costs from a DA Market commitment that are shared with an

adjacent and preceding RUC Commitment RUC Commitment made after DA Market Commitment

9

RR161 – Calculate Commitment-Level Costs

• Netting Process – DA Market MWP DA Market Start-Up Offer – subject to eligibility

plus DA Market Transition Offer

plus Remainder of RUC Start-Up / Transition costs

minus DA Market commitment-level costs shared with RUC Commitment

minus DA Market Pre-Existing costs

plus RTBM non-Performance costs

10

RR161 – Calculate Commitment-Level Costs

• Netting Process – RUC MWP RTBM Canceled Start-Up cost

OR RTBM Start-Up Offer – subject to eligibility

plus RTBM Transition Offer – subject to eligibility

plus RTBM Canceled Transition costs

plus DA Market commitment-level costs shared with RUC Commitment –

subject to eligibilityminus

RTBM Pre-Existing costsplus

DA Market non-Performance costs

11

RR161 – DA Market and RUC Commitments

• DA Market “market” commits may include multiple transitions

• DA Market “self” commits will not be modified by the DA Market solution

• RUC “market” commits may include multiple transitions

• RUC “self” commits will not be modified by the RUC process

• RUC commitments can: Stand alone (current) Be adjacent to DA Market commitments (current) Overlap DA Market commitments (future) Be adjacent and overlapping DA Market commitments (future)

12

RR161 – DA Market and RUC Commitments

13

Day-Ahead

RUC

Possible MCR commitment schedule Two dis-jointed Day-Ahead commitments Three dis-jointed RUC commitments

RUC commitments could be from the same or multiple RUC studies

Cost recovery and allocation for Adjacent and Overlapping commitments Start-Up and Transition costs Energy and Operating Reserve product costs

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

M M MM M M M M M M M M M M M

M M M M M M M M M M M M M

Configuration 3Configuration 2Configuration 1

Example 305 (2)

DAM OFFER

Time$TransOD - 1ODOD + 1OD + 2

1051to2Hour Ending:192021222324123456789101112131415161718192021222324123456789101112131415161718192021222324123456

1561to3CONFIG

542to33: 3 X 1MMM

222to12: 2 X 1MMMMMMMMMMMM

433to11: 1 X 1MMMMMMMMMMMMM

313to2

SUCMRT

Contractor-Ken Donald: Assume no groupsCONFIGAllocated to DA only

2513 X 1Allocated to RUC only

2022 X 1Allocated to RUC then DA (remainder)

1031 X 1DAMCOMMITOD.06OD.17010OD-1.16

9PLT

RUCCOMMITOD.06OD.12011OD-1.18

RUC OFFERRUCCOMMITOD.13OD.15011OD-1.18CCTRANSCOSTCCCONFIGTIME

Time$TransTERMINATIONDATECCTRANSTIME

Contractor-Ken Donald: 0 when Resource not scheduled to make a transition

Contractor-Ken Donald: 0 regardless of the commitment pattern… the field is not used for MCR

Contractor-Ken Donald: max(plant, grp, config) MRT remaining from the original commitment, then relaxed for SELF hours

Contractor-Ken Donald: Assume no groupsCCMINRUNTIMECCSTARTUPCOST

1161to2EFFECTIVEDATESTATNAMECCCONFIG

1671to3

652to3

332to1

543to1

423to2

DAMPEROD.04OD.06MARKET2 X 101200OD-1.16

SUCMRTCONFIGDAMPEROD.06OD.08MARKET1 X 12102OD-1.16

3023 X 1DAMPEROD.08OD.09SELF1 X 101100OD-1.11

2522 X 1DAMPEROD.09OD.12MARKET3 X 115106OD-1.16

1521 X 1DAMPEROD.12OD.12MARKET2 X 13101OD-1.16

10PLTDAMPEROD.12OD.13SELF2 X 101200OD-1.11

DAMPEROD.13OD.14SELF1 X 12102OD-1.11

DAMPEROD.14OD.15MARKET1 X 10100OD-1.16

DAMPEROD.15OD.17MARKET2 X 110105OD-1.16

RUCPEROD.06OD.09SELF2 X 10200OD-1.17

RUCPEROD.09OD.12MARKET2 X 10200OD-1.18

RUCPEROD.13OD.15MARKET2 X 10200OD-1.18

DA to RUC/DA = $4 = min ($20, $4). Following the rule to allocate only to RUC hours where no DA, I assume the allocation goes back to DA from hour 5 on.

DA costs: prexisting -10SUC & -20SUC & -2TC actual 20SUC & 2TC & 6TC & 1TC & 2TC & 5TC

RUC costs: prexisting -20SUC & -4TC & -1TC & -2TC & -5TC actual 15SUC & 6TC

Example 301

DAM OFFER

Time$TransOD - 1ODOD + 1OD + 2

1051to2Hour Ending:192021222324123456789101112131415161718192021222324123456789101112131415161718192021222324123456

1561to3CONFIG

542to33: 3 X 1

222to12: 2 X 1MMMMMMMMMM

433to11: 1 X 1MMM

313to2STARTTIMESTOPTIMESTARTUPCOST

Contractor-Ken Donald: 0 regardless of the commitment pattern… the field is not used for MCRMINRUNTIME

Contractor-Ken Donald: max(plant, grp, config) MRT remaining from the original commitment, then relaxed for SELF hoursCOMMITTIME

SUCMRT

Contractor-Ken Donald: Assume no groupsCONFIGAllocated to DA only

2513 X 1Allocated to RUC only

2022 X 1Allocated to RUC then DA (remainder)

1031 X 1DAMCOMMITOD.07OD.17010OD-1.16

9PLT

RUCCOMMITOD.10OD.13011OD-1.18

RUC OFFERCCTRANSCOSTCCCONFIGTIME

Time$TransTERMINATIONDATECCTRANSTIME

Contractor-Ken Donald: 0 when Resource not scheduled to make a transition

Contractor-Ken Donald: 0 regardless of the commitment pattern… the field is not used for MCR

Contractor-Ken Donald: max(plant, grp, config) MRT remaining from the original commitment, then relaxed for SELF hours

Contractor-Ken Donald: Assume no groupsCCMINRUNTIMECCSTARTUPCOST

1161to2EFFECTIVEDATESTATNAMECCCONFIG

1671to3

652to3

332to1

543to1

423to2

SUCMRTCONFIG

Contractor-Ken Donald: Always 0 for this type of "no duration" record

Contractor-Ken Donald: The "DAM saw it as a free start" logic can't be applied here as this may be a value settlement needs later on3023 X 1DAMPEROD.07OD.17MARKET2 X 102200OD-1.16

2522 X 1

1521 X 1

10PLT

RUCPEROD.10OD.13MARKET1 X 13203OD-1.18

RUCPEROD.13OD.13MARKET2 X 111206OD-1.18

DA costs: prexisting actual 20SUC

RUC costs: prexisting -20SUC actual 20SUC & 3TC & 6TC

Example 302

DAM OFFER

Time$TransOD - 1ODOD + 1OD + 2

1051to2Hour Ending:192021222324123456789101112131415161718192021222324123456789101112131415161718192021222324123456

1561to3CONFIG

542to33: 3 X 1MMMM

222to12: 2 X 1MMMMMMMMM

433to11: 1 X 1MMMMM

313to2STARTTIMESTOPTIMESTARTUPCOST

Contractor-Ken Donald: 0 regardless of the commitment pattern… the field is not used for MCRMINRUNTIME

Contractor-Ken Donald: max(plant, grp, config) MRT remaining from the original commitment, then relaxed for SELF hoursCOMMITTIME

SUCMRT

Contractor-Ken Donald: Assume no groupsCONFIGAllocated to DA only

2513 X 1Allocated to RUC only

2022 X 1Allocated to RUC then DA (remainder)

1031 X 1DAMCOMMITOD.06OD.17010OD-1.16

9PLT

RUCCOMMITOD.10OD.13011OD-1.18

RUC OFFERCCTRANSCOSTCCCONFIGTIME

Time$TransTERMINATIONDATECCTRANSTIME

Contractor-Ken Donald: 0 when Resource not scheduled to make a transition

Contractor-Ken Donald: 0 regardless of the commitment pattern… the field is not used for MCR

Contractor-Ken Donald: max(plant, grp, config) MRT remaining from the original commitment, then relaxed for SELF hours

Contractor-Ken Donald: Assume no groupsCCMINRUNTIMECCSTARTUPCOST

1161to2EFFECTIVEDATESTATNAMECCCONFIG

1671to3

652to3

332to1

543to1

423to2

SUCMRTCONFIG

Contractor-Ken Donald: Always 0 for this type of "no duration" record

Contractor-Ken Donald: The "DAM saw it as a free start" logic can't be applied here as this may be a value settlement needs later on3023 X 1DAMPEROD.06OD.09MARKET1 X 103100OD-1.16

2522 X 1DAMPEROD.09OD.12MARKET3 X 115106OD-1.16

1521 X 1DAMPEROD.12OD.17MARKET2 X 13201OD-1.16

10PLT

RUCPEROD.08OD.12MARKET2 X 111206OD-1.18

RUCPEROD.12OD.13MARKET3 X 16205OD-1.18

RUCPEROD.13OD.15MARKET1 X 15204OD-1.18

RUCPEROD.15OD.15MARKET2 X 111206OD-1.18

DA costs: prexisting actual 10SUC & 6TC & 1TC

RUC costs: prexisting -10SUC & -6TC & -1TC actual 10SUC & 6TC & 5TC & 4TC & 6TC

Example 303

DAM OFFER

Time$TransOD - 1ODOD + 1OD + 2

1051to2Hour Ending:192021222324123456789101112131415161718192021222324123456789101112131415161718192021222324123456

1561to3CONFIG

542to33: 3 X 1MMMM

222to12: 2 X 1MMSMSMMMM

433to11: 1 X 1MMSMM

313to2STARTTIMESTOPTIMESTARTUPCOST

Contractor-Ken Donald: 0 regardless of the commitment pattern… the field is not used for MCRMINRUNTIME

Contractor-Ken Donald: max(plant, grp, config) MRT remaining from the original commitment, then relaxed for SELF hoursCOMMITTIME

SUCMRT

Contractor-Ken Donald: Assume no groupsCONFIGAllocated to DA only

2513 X 1Allocated to RUC only

2022 X 1Allocated to RUC then DA (remainder)

1031 X 1DAMCOMMITOD.06OD.17010OD-1.16

9PLT

RUCCOMMITOD.08OD.15011OD-1.18

RUC OFFERCCTRANSCOSTCCCONFIGTIME

Time$TransTERMINATIONDATECCTRANSTIME

Contractor-Ken Donald: 0 when Resource not scheduled to make a transition

Contractor-Ken Donald: 0 regardless of the commitment pattern… the field is not used for MCR

Contractor-Ken Donald: max(plant, grp, config) MRT remaining from the original commitment, then relaxed for SELF hours

Contractor-Ken Donald: Assume no groupsCCMINRUNTIMECCSTARTUPCOST

1161to2EFFECTIVEDATESTATNAMECCCONFIG

1671to3

652to3

332to1

543to1

423to2

Contractor-Ken Donald: The "DAM saw it as a free start" logic can't be applied here as this may be a value settlement needs later onSUCMRTCONFIGDAMPEROD.06OD.08MARKET1 X 101100OD-1.16

3023 X 1DAMPEROD.08OD.09SELF1 X 101100OD-1.11

2522 X 1DAMPEROD.09OD.12MARKET3 X 115106OD-1.16

1521 X 1DAMPEROD.12OD.12MARKET2 X 13101OD-1.16

10PLTDAMPEROD.12OD.13SELF2 X 101200OD-1.11

DAMPEROD.13OD.17MARKET2 X 10100OD-1.16

RUCPEROD.08OD.10MARKET2 X 111106OD-1.18

RUCPEROD.10OD.11SELF2 X 10100OD-1.17

RUCPEROD.11OD.12MARKET2 X 10100OD-1.18

RUCPEROD.12OD.13MARKET3 X 16205OD-1.18

RUCPEROD.13OD.15MARKET1 X 15204OD-1.18

DA costs: prexisting -10SUC & -20SUC actual 10SUC & 6TC & 1TC

RUC costs: prexisting -10SUC & -6TC & -2TC & -5TC & -1TC actual 10SUC & 6TC & 5TC & 4TC & 6TC

Example 304

DAM OFFER

Time$TransOD - 1ODOD + 1OD + 2

1051to2Hour Ending:192021222324123456789101112131415161718192021222324123456789101112131415161718192021222324123456

1561to3CONFIG

542to33: 3 X 1MMM

222to12: 2 X 1MMSSSMMMSMMMM

433to11: 1 X 1MMSSM

313to2STARTTIMESTOPTIMESTARTUPCOST

Contractor-Ken Donald: 0 regardless of the commitment pattern… the field is not used for MCRMINRUNTIME

Contractor-Ken Donald: max(plant, grp, config) MRT remaining from the original commitment, then relaxed for SELF hoursCOMMITTIME

SUCMRT

Contractor-Ken Donald: Assume no groupsCONFIGAllocated to DA only

2513 X 1Allocated to RUC only

2022 X 1Allocated to RUC then DA (remainder)

1031 X 1DAMCOMMITOD.06OD.17010OD-1.16

9PLT

RUCCOMMITOD.06OD.12011OD-1.18

RUC OFFERRUCCOMMITOD.13OD.15011OD-1.18CCTRANSCOSTCCCONFIGTIME

Time$TransTERMINATIONDATECCTRANSTIME

Contractor-Ken Donald: 0 when Resource not scheduled to make a transition

Contractor-Ken Donald: 0 regardless of the commitment pattern… the field is not used for MCR

Contractor-Ken Donald: max(plant, grp, config) MRT remaining from the original commitment, then relaxed for SELF hours

Contractor-Ken Donald: Assume no groupsCCMINRUNTIMECCSTARTUPCOST

1161to2EFFECTIVEDATESTATNAMECCCONFIG

1671to3

652to3

332to1

543to1

423to2

DAMPEROD.04OD.06MARKET2 X 101200OD-1.16

SUCMRTCONFIGDAMPEROD.06OD.08MARKET1 X 12102OD-1.16

3023 X 1DAMPEROD.08OD.09SELF1 X 101100OD-1.11

2522 X 1DAMPEROD.09OD.12MARKET3 X 115106OD-1.16

1521 X 1DAMPEROD.12OD.12MARKET2 X 13101OD-1.16

10PLTDAMPEROD.12OD.13SELF2 X 101200OD-1.11

DAMPEROD.13OD.14SELF1 X 12102OD-1.11

DAMPEROD.14OD.15MARKET1 X 10100OD-1.16

DAMPEROD.15OD.17MARKET2 X 110105OD-1.16

RUCPEROD.06OD.09SELF2 X 10200OD-1.17

RUCPEROD.09OD.12MARKET2 X 10200OD-1.18

RUCPEROD.13OD.15MARKET2 X 10200OD-1.18

DA costs: prexisting -10SUC & -20SUC & -2TC actual 20SUC & 2TC & 6TC & 1TC & 2TC & 5TC

RUC costs: prexisting -20SUC & -4TC & -1TC & -2TC & -5TC actual 20SUC

Example 305

DAM OFFER

Time$TransOD - 1ODOD + 1OD + 2

1051to2Hour Ending:192021222324123456789101112131415161718192021222324123456789101112131415161718192021222324123456

1561to3CONFIG

542to33: 3 X 1MMM

222to12: 2 X 1MMSSSMMMSMMMM

433to11: 1 X 1MMMMMMSSM

313to2STARTTIMESTOPTIMESTARTUPCOST

Contractor-Ken Donald: 0 regardless of the commitment pattern… the field is not used for MCRMINRUNTIME

Contractor-Ken Donald: max(plant, grp, config) MRT remaining from the original commitment, then relaxed for SELF hoursCOMMITTIME

SUCMRT

Contractor-Ken Donald: Assume no groupsCONFIGAllocated to DA only

2513 X 1Allocated to RUC only

2022 X 1Allocated to RUC then DA (remainder)

1031 X 1DAMCOMMITOD.06OD.17010OD-1.16

9PLT

RUCCOMMITOD.06OD.12011OD-1.18

RUC OFFERRUCCOMMITOD.13OD.15011OD-1.18CCTRANSCOSTCCCONFIGTIME

Time$TransTERMINATIONDATECCTRANSTIME

Contractor-Ken Donald: 0 when Resource not scheduled to make a transition

Contractor-Ken Donald: 0 regardless of the commitment pattern… the field is not used for MCR

Contractor-Ken Donald: max(plant, grp, config) MRT remaining from the original commitment, then relaxed for SELF hours

Contractor-Ken Donald: Assume no groupsCCMINRUNTIMECCSTARTUPCOST

1161to2EFFECTIVEDATESTATNAMECCCONFIG

1671to3

652to3

332to1

543to1

423to2

DAMPEROD.04OD.06MARKET2 X 101200OD-1.16

SUCMRTCONFIGDAMPEROD.06OD.08MARKET1 X 12102OD-1.16

3023 X 1DAMPEROD.08OD.09SELF1 X 101100OD-1.11

2522 X 1DAMPEROD.09OD.12MARKET3 X 115106OD-1.16

1521 X 1DAMPEROD.12OD.12MARKET2 X 13101OD-1.16

10PLTDAMPEROD.12OD.13SELF2 X 101200OD-1.11

DAMPEROD.13OD.14SELF1 X 12102OD-1.11

DAMPEROD.14OD.15MARKET1 X 10100OD-1.16

DAMPEROD.15OD.17MARKET2 X 110105OD-1.16

RUCPEROD.06OD.09SELF2 X 10200OD-1.17

RUCPEROD.09OD.12MARKET2 X 10200OD-1.18

RUCPEROD.13OD.15MARKET2 X 10200OD-1.18

DA to RUC/DA = $4 = min ($20, $4). Following the rule to allocate only to RUC hours where no DA, I assume the allocation goes back to DA from hour 5 on.

DA costs: prexisting -10SUC & -20SUC & -2TC actual 20SUC & 2TC & 6TC & 1TC & 2TC & 5TC

RUC costs: prexisting -20SUC & -4TC & -1TC & -2TC & -5TC actual 15SUC & 6TC

NEEDS UPDATE!

RR161 – Calculate incremental cost of Energy between RUC and DA commitments

• Incremental cost of No-Load RUC As-Committed No-Load Offer

minus DA Market As-Committed No-Load Offer

• Incremental cost of Energy RTBM As-Committed Energy Offer from zero to Minimum Energy

plus RTBM As-Dispatched Energy Offer from Minimum Energy to Dispatch

minus DA Market As-Committed Energy Offer from zero to DA Cleared Qty

14

RR161 – Calculate incremental cost of Energy between RUC and DA commitments

15

Incremental Real-Time costs for Configuration 2

• Incremental Energy Costs DA Energy Cost: $ 1,750 RT Energy Cost: $ 4,150 $4,150 - $1,750 = $ 2,400

05

101520253035404550

0 25 50 75 100 125 150 175 200

$/MWhMW $/MWh

0 18

75 18

100 23

125 28

150 33

175 38

200 43

MW $/MWh

0 15

50 15

75 20

100 25

125 30

150 35

175 40

RR161 – Calculate incremental cost of OR products between RUC and DA commitments

• Incremental cost of cleared OR products RTBM As-Dispatched OR product Offer * RTBM Cleared OR product MW

minus DA Market OR product Offer * DA Market Cleared OR product MW

• Incremental cost of unused mileage RTBM As-Dispatched Mileage MCP – RTBM As-Dispatched Mileage Offer

minus RTBM As-Dispatched Mileage MCP – DA Market As-Dispatched Mileage Offer

difference times DA Market Unused MW Miles

16

Cost Recovery for Operating Reserve

17

Spin Costs –

• Day-Ahead Offer Parameters for Configuration 1

o$ 10/MWh

• Day-Ahead Cleared Spin

o20MWh

• Real-Time Offer Parameters for Configuration 2

o$ 9/MWh

• Real-Time Cleared Spin

o25MWhIncremental Operating Reserve Costs

DA Spin Cost: $ 200RT Spin Cost: $ 225

$225 - $200 = $25

RR161 – Calculate URD

• URD calculation Energy cost from RTBM Effective Minimum to RT Meter using RTBM As-

Dispatched Offerminus

Energy cost from RTBM Effective Minimum to RT Desired Energy using RTBM As-Dispatched Offer

18

RR161 – Adjustments to RUC MWP allocation• Minimum Limit deviation

Include MCR with a RUC “self” Commitment overlapping a DA Market Commitment

• Maximum Limit deviation Include MCRs with a RUC “self” Commitment overlapping a DA Market

Commitment

• Status deviation MCRs that are not in their expected configuration per ICCP will be

placed in “manual” Control Status

• Exemption to Self-commit deviation Exempt RUC “self” Commitments because they are eligible to receive

either a Minimum Limit deviation or a Maximum Limit deviation

19

RR161 – Hold MCR harmless for buying back OR products during non-forced transition

• Buy back OR products in DA Market due to non-forced transition Resource is transitioning in RTBM (per ICCP data) Resource is within DA Market Commitment transition time Resource is not within a RUC Committed transition time Resource is not able to clear OR Product in RTBM due to transition

DA Market Cleared Contingency Reserve Quantitytimes

RTBM Contingency Reserve MCP

20

RR161 – Hold MCR harmless for buying back OR products during non-forced transition

• Buy back OR products in RUC commitment due to non-forced transition Resource clears more than “fixed” MWh in RTBM Resource is transitioning in RTBM (per ICCP data) Resource is within RUC Commitment transition time Resource is not able to clear OR Product in RTBM due to transition

RTBM Charge from OR Product not Cleared minus

DA Market Revenue from Cleared OR Product

21

RR161 – Hold MCR harmless for RUC de-commitment of a DA Market committed MCR configuration• Via OOME Charge Type

• Energy adjustment is calculated as an OOME in the down direction When RTBM LMP > DA Market LMP RT LMP – DA Market LMP

times RTBM Metered MWh (Capped at RTBM Set Point) – DA Market Cleared MWh

• OR Product adjustment is calculated as an OOMOR When DA Market Cleared OR Product MWh > RTBM Cleared OR Product MWh When RTBM OR Product MCP > DA Market OR Product MCP DA Market Cleared OR Product MWh – RTBM Cleared OR Product MWh

times RTBM OR Product MCP – DA Market OR Product MCP

22

Revision Request Form SPP STAFF TO COMPLETE THIS SECTION

RR #: 161 Date: 04/07/2016

RR Title: Commitment Level Cost Recovery and MCR Settlement Design Enhancements System Changes No Yes Process Changes? No Yes Impact Analysis Required? No Yes (included in the Enhanced Combined Cycle Project)

SUBMITTER INFORMATION

Name: John Luallen / Micha Bailey Company: Southwest Power Pool

Email: jluallen@spp.org / mcbailey@spp.org Phone: 501.688.1655 / 501.688.2522 Only Qualified Entities may submit Revision Requests.

Please select at least one applicable option below, as it applies to the named submitter(s).

SPP Staff SPP Market Participant SPP Member An entity designated by a Qualified Entity to submit

a Revision Request “on their behalf”

SPP Market Monitor Staff of government authority with jurisdiction over

SPP/SPP member Rostered individual of SPP Committee, Task Force or

Working Group Transmission Customers or other entities that are parties to

transactions under the Tariff REVISION REQUEST DETAILS

Requested Resolution Timing: Normal Expedited Urgent Action

Reason for Expedited/Urgent Resolution:

Type of Revision (select all that apply):

Correction

Clarification

Design Enhancement

New Protocol, Business Practice, Criteria, Tariff

NERC Standard Impact (Specifically state if revision relates to/or impacts NERC Standards, list standard(s))

FERC Mandate (List order number(s))

REVISION REQUEST RISK DRIVERS

Are there existing risks to one or more SPP Members or the BES driving the need for this RR? Yes No

If yes, provided details to explain the risk and timelines associated:

Compliance (Tariff, NERC, Other)

Reliability/Operations

Financial SPP Documents Requiring Revision: Please select your primary intended document(s) as well as all others known that could be impacted by the requested revision (e.g. a change to a protocol that would necessitate a criteria or business practice revision).

mailto:jluallen@spp.orgmailto:mcbailey@spp.org

Market Protocols Section(s): 4.5.8.12; 4.5.9.8; 4.5.9.9; 4.5.9.10; 4.5.9.28; 4.5.9.29; 8.2.2.6 Protocol Version: 36.a

Operating Criteria Section(s): Criteria Date: Planning Criteria Section(s): Criteria Date: Tariff (OATT) Section(s): SPP staff is currently drafting conforming Tariff changes. Business Practice Business Practice Number:

Objectives of Revision Request: Describe the problem/issue this revision request will resolve.

While gathering the requirements for the rules established in RR1_MPRR101, RR5_MPRR140 and RR112 for Mult-Configuration Combined Cycle Resources (MCRs), SPP staff could not predict the unknown complexity of adjacent and overlapping MCR configuration commitments when determining Start-up and Transition cost recovery. The rules established in the RRs did not capture every possible settlement cost recovery scenario that could arise from dispatching an MCR over and/or adjacent to its Day-Ahead position. Instead of creating “one off” rules for every possible settlement cost recovery scenario from the previous stated RRs, SPP decided to use a netting approach to reflect the SPP decision making process when determining how costs would be included in the DA Market and RUC Make-Whole Payments (MWPs). For Resources committed in the marketplace, the netting approach views Start-Up and Transition Offer costs associated with prior commitment decisions and “Self” commitments as given costs to which incremental changes are made. Those input Start-Up Offer and/or Transition State Offer costs are netted against the Start-Up Offer amd Transition State Offer costs associated with the scheduled actual solution to determine the commitment level costs associated with SPP decisions for inclusion in the DA Market and RUC MWPs.

SPP staff also made changes to MCR’s cost recovery for Energy and Operating Reserve Offer costs in the RUC MWP. The RUC MWP will include costs that are incremental to those associated with a Resource’s Day-Ahead position. For example, if a RUC commitment runs an MCR in a different configuration than was cleared in the DA Market, the MCR’s change in Offer cost to meet the Day-Ahead position which is caused by the SPP RUC decision to use the new configuration will be included in the RUC MWP. Instead of evaluating the costs associated with only MW amount in Real-Time minus the Day-Ahead position MW amount and ignoring the change in costs to produce the Day-Ahead MW amount, SPP will use the difference between the area under the Real-Time Offer curve for the Real-Time MW amount and the area under the Day-Ahead Offer curve for the Day-Ahead MW in the RUC MWP calculation.

SPP staff made conforming changes to the Protocols and Tariff to allow the netting approach for Start-Up and Transittion Offer costs and the incremental Energy and Operating Reserve Offer cost approach for quantitiy changes between Day-Ahead and Real-Time.

Describe the benefits that will be realized from this revision.

The netting approach allocates costs across the Day-Ahead MWPs, shared costs between the Day-Ahead and RUC MWPs and across the RUC MWP more consistenly with the SPP commitment processes without additional complex rules. The netting approach also works well with non-MCRs. All Resources will use the netting approach to determine the amount of commitment level costs that are elgibile for recovery in the marketplace. This will allow one set of rules to settle all Resources. This will keep the SCUC and Settlement consistent in their assumptions about commitment level cost recovery across all Resources.

REVISIONS TO SPP DOCUMENTS In the appropriate sections below, please provide the language from the current document(s) for which you are requesting revision(s), with all edits redlined.

Market Protocols

4.5.8.12 Day-Ahead Make-Whole-Payment Amount

(1) The Day-Ahead Make-Whole-Payment Amount is a credit or charge1 to a Resource Asset Owner and is calculated for each Resource with an associated DA Market Commitment Period, that was committed by SPP with a Day-Ahead Market Resource Offer Commitment Status of “Market” or “Reliability” as defined under Section 4.2.2.2.1, or was committed as part of including the commitments from the Multi-Day Reliability Assessment as defined under Section 4.2.6.3. Asset Owners of Resources previously committed by a local transmission operator to address a Local Emergency Condition are eligible to receive a Day-Ahead Market make whole payment if such commitment is included in the Day-Ahead Market; except that, if the Market Monitor determines such Resources were selected in a discriminatory manner by the local transmission operator, as determined pursuant to Section 6.1.2.1 of Attachment AE to the Tariff, and such Resources were affiliated with the local transmission operator, then such Resources are not eligible to receive a Day-Ahead Market make whole payment. A payment is made to the Resource Asset Owner when the sum of the Resource’s eligible costs DA Market Start-Up Offer costs, No-Load Offer costs, Transition State Offer costs, Energy Offer Curve and Operating Reserve Offer costs associated with cleared DA Market amounts for Energy and Operating Reserve areis greater than the Energy and Operating Reserveeligible DA Market revenues received for that Resource over during the Resource’s DA Market Make-Whole-Payment Eligibility Period.

(2) A Resource’s DA Market Make-Whole-Payment Eligibility Period is equal to a Resource’s DA Market Commitment Period except as defined in (a) below:

(a) For Resources with an associated DA Market Commitment Period that begins in one Operating Day and ends in the next Operating Day, two DA Market Make-Whole-Payment Eligibility Periods are created. The first period begins in the first Operating Day in the hour that the DA Market Commitment Period begins and ends in the last hour of the first Operating Day. The second period begins in the first hour of the next Operating Day and ends in the last hour of the DA Market Commitment Period.

(3) The following cost recovery eligible rules apply to each DA Market Make-Whole-Payment Eligibility Period. Offer costs are calculated using the DA Market Offer prices

1 Note that this charge type will almost always produce a credit. The charge is included here for the rare occasion when a charge may be produced as a result of a data error and/or a resettlement.

Commented [MPRR101.1]: MPRR101 awaiting FERC filing

in effect at the time the commitment decision was made except under the situation described under Section (b)(ii)(1) and under Section (b)(iv) below.

(a) There may be more than one DA Market Make-Whole Payment Eligibility Period for a Resource in a single Operating Day for which a credit or charge is calculated. A single DA Market Make