MINUTES NO 50

Southwest Power Pool

STRATEGIC PLANNING COMMITTEE MEETING

April 12, 2007

The Skirvin Hilton Hotel – Oklahoma City, Oklahoma

• M I N U T E S •

Agenda Item 1 – Administrative Items

Chair Richard Spring (KCPL) called the meeting to order at 9:00 a.m. SPC members participating in person were Jim Eckelberger (Director); Josh Martin (Director); Harry Skilton (Director); Tim Woolley (Xcel); Rob Janssen (Redbud); Ricky Bittle (AECC); Mel Perkins (OGE); Tom Grennan (KEPCO); and, Mike Palmer (EDE). SPP Staff participating in person or by teleconference included Michael Desselle, Stacy Duckett, Les Dillahunty, Charles Yeung, Bill Wylie, and Carl Monroe. Guests participating in person or by teleconference included Phyllis Bernard (Director); Larry Altenbaumer (Director); Richard Ross (AEP); Carl Huslig (ITC-Great Plains); Sam Loudenslager (APSC); Walt Shumate (EEI); Tom Stuchlik (Westar); Dennis Reed (Westar); Raj Rana (AEP); and Walter Wolfe (LPSC)(Attendance - Attachment 1).

Richard Spring referred to the January 18, 2007 minutes and asked for additions or corrections or a motion for approval (Minutes 1/18/07 – Attachment 2). Harry Skilton moved and Mel Perkins seconded approval of the minutes as presented. The motion passed.

Agenda Item 2 – Review Past Action Items

Michael Desselle provided a recap of past actions items: • He reported the Organizational Effectiveness Action Plan had been finalized and forwarded to the

appropriate organizational groups for their follow-up and action. • He reported that the Board had passed a motion of the SPC modifying the billing of NERC and

SPP Regional Entity fees from a Balancing Area basis to all Load Serving Entities basis and that a draft filing had been forwarded to the NERC for their submission to the FERC.

• He reported that e-mail ballots were collected from SPC members prioritizing the Strategic Plan Elements and would be a topic of discussion and action in the meeting.

Agenda Item 3 – MOPC Update

Carl Monroe provided a report of the MOPC’s actions and discussions from the meetings held on April 10 and 11 (Attachment 3). Carl discussed proposals made to the MOPC for improving Organizational Effectiveness. Suggestions were made to develop an annual forward looking decision and regulatory filing calendar to aid in alleviating last minute deadline critical decisions coming to the Board. Carl apprised the SPC that PRR137 (dealing with the inclusion of External Generation in the SPP Market) was undergoing further review by the ORWG, MWG and RTWG with then intent of providing a recommendation to the Board on April 24. Carl also updated the SPC on the status of the MWG development efforts on future market steps. Suggestions were made for more frequent communication on MOPC matters.

Agenda Item 4 – Regulatory Update

Les Dillahunty provided a regulatory update report (Regulatory Update – Attachment 4). Les provided a status report on the recent regulatory filings. Les reported that the EHV Overlay Plan is expected to be complete in June. There was discussion about the Texas CREZ Rules and how SPP is working in the ERCOT proceedings on the matter. Les will send additional information to the SPC once the PUCT

Strategic Planning Committee April 12, 2007

issues an Order (expected by July 5, 2007). Les made presentations on FERC Order 890 (Preventing Undue Discrimination and Preference in Transmission Service) and FERC Order 693 (Mandatory Reliability Standards for the Bulk-Power System) and their implications for SPP. Finally, Les reviewed the agenda for the upcoming RSC meeting.

Agenda Item 5 – Review Organizational Effectiveness Action Plan Status

Richard Spring asked for status reports from various committees representatives. Stacy Duckett reported first on the Corporate Governance Committee efforts. Richard Spring reported on the SPC matters; Michael Desselle provided an update on staff activities, and Carl Monroe reported on the MOPC efforts. With respect to MOPC efficiency, a number of suggestions were offered. Phyllis Bernard suggested that working groups provide summaries of concerns expressed during their deliberations, including a record of abstentions and no votes with supporting rationale. Visual mapping was discussed as a meeting facilitation tool. There was also discussion about the power of a staff-developed strawman and “shuttle” diplomacy to be more effective. The group discussed a suggestion to engage in limited but comprehensive discussions prior to the assignment of an issue to working groups. Finally, suggestions to expand the length of MOPC meetings and the inclusion of the CAWG in the chairs and secretaries pre-MOPC preparation meeting were offered. An action item was noted to incorporate the thinking from the Organizational Effectiveness discussions into the SPP structure. The action plan was revised with these status developments (Organizational Effectiveness Action Plan – Attachment 5).

Agenda Item 6 – Finalize Strategic Plan Prioritization

Michael Desselle provided a recap of the straw poll for the Strategic Plan elements prioritization. Mel Perkins moved adoption of the Strategic Plan Priorities and Harry Skilton seconded. The motion passed unanimously. After a discussion about Contract Services customer satisfaction, the committee asked for quarterly reports on Contract Services. A revised Strategic Plan status report is attached (Strategic Plan Objectives – Attachment 6).

Agenda Item 7 – Demand Response (DR) Initiatives

Richard Spring made a presentation on KCPL’s Demand Response Initiatives. There was some discussion about how SPP could be an enabler of DR and Energy Efficiency Initiatives with the collaboration of SPP Staff, members, state regulators and the RSC.

Agenda Item 8 – NERC ERO/RE Update

Charles Yeung provided a status report on SPP Regional Entity (RE) matters underway, including time tracking and 2008 budget development efforts. He noted that it was expected that an Order addressing the NERC/SPP RE Delegation Agreement would be on FERC’s agenda April 19. Charles also provided a status report of NERC’s effort to file for approval SPP’s proposed change to its RE billing basis.

Agenda Item 9 – Planning Retreat Agenda Development

Topics for the upcoming retreat were discussed. An agenda will be forthcoming. The retreat will commence on Thursday, May 31 at 8:00 a.m. and conclude at noon Friday, June 1.

Agenda Item 10 – Summary of Action Items

• Include in the minutes the MWG’s high-level plan for Future Markets development. • Include in the minutes Les Dillahunty’s reports. • Les Dillahunty to send additional information regarding Texas Competitive Renewable Energy Zones

(CREZs) to SPC. • Incorporate the thinking from the Organizational Effectiveness discussions into the SPP structure. • Update Organizational Effectiveness Action Plan Status.

Strategic Planning Committee April 12, 2007

• Develop Regional Entity Comparison. • Update Strategic Plan Status report. • Finalize agenda for SPC planning retreat and arrange facilitator and other expert

attendance/participation.

Agenda Item 11 – Future Meetings

July 12 Kansas City October 18 Tulsa Respectfully Submitted, Michael Desselle Secretary

Southwest Power Pool, Inc. STRATEGIC PLANNING MEETING

April 12, 2007 The Skirvin Hilton Hotel – Oklahoma City, Oklahoma

• A G E N D A •

9 AM – 3 PM

1. Call to Order and Administrative Items............................................................................. Richard Spring

2. Review of Past Action Items..........................................................................................Michael Desselle

3. MOPC Update ...................................................................................................................... Carl Monroe

4. Regulatory Update............................................................................................................. Les Dillahunty

a. Case Load

b. Order 890 Implications

c. Order 693 Implications...............................................................................Michael Desselle

5. Review Organizational Effectiveness Action Plan Status ................................................ Richard Spring

6. Finalize Strategic Plan Prioritization................................................................................. Richard Spring

7. Demand Response (DR) Initiatives .................................................................................. Richard Spring

8. NERC/RE Update............................................................................................................. Charles Yeung

9. Planning Retreat Agenda Development ........................................................................... Richard Spring

10. Summary of Action Items ..............................................................................................Michael Desselle

11. Discussion of Future Meetings ......................................................................................Michael Desselle

July 12 Kansas City

October 18 Tulsa

MINUTES NO 49

Southwest Power Pool

STRATEGIC PLANNING COMMITTEE MEETING

January 18, 2007

Hilton Palacio Del Rio – San Antonio, Texas

• M I N U T E S •

Agenda Item 1 – Administrative Items

Chair Richard Spring (KCPL) called the meeting to order at 8:00 A.M. Due to inclement weather, many were in attendance via teleconference including the Mr. Spring. Other SPC members participating in person or by teleconference were Jim Eckelberger (Director); Josh Martin (Director); Harry Skilton (Director); Tim Woolley (Xcel); Rob Janssen (Redbud); Ricky Bittle (AECC); Mel Perkins (OGE); and Bary Warren (EDE), proxy for Mike Palmer (EDE). SPP Staff participating in person or by teleconference included Nick Brown, Stacy Duckett, Michael Desselle, Les Dillahunty, Charles Yeung and Carl Monroe. Guests participating in person or by teleconference included Richard Ross (AEP); Carl Huslig (ITC-Great Plains); Sam Loudenslager (APSC); and Tracy Stewart (SWPA).

Richard Spring referred to the October 12, and November 30, 2006 minutes and asked for additions or corrections or a motion for approval (Minutes 10/12/06 and 11/30/06 – Attachment 1) Harry Skilton moved and Josh Martin seconded approval of the minutes as presented. The motion passed.

Agenda Item 2 – Review Past Action Items

Richard Spring provided a recap of past actions items: • He reported the final report of the Organizational Chairs and Secretaries was reported to the

Board at its December meeting. • Richard developed a strawman Organizational Effectiveness Action plan which was discussed in

today’s meeting. • Worked with staff to develop a “reminder” process for future Organizational Effectiveness survey

completion efforts.

Agenda Item 3 – MOPC Update

Carl Monroe provided a report of the MOPC’s actions and discussions from the meetings held on January 16 and 17.

Agenda Item 4 – Regulatory Update

Les Dillahunty provided a regulatory update report (Regulatory Update – Attachment 2). He discussed and provided details regarding the upcoming technical conference to be hosted by the SPP Regional State Committee (RSC) in San Antonio on regional resource planning. Les also provided a status report on the recent regulatory filings associated with SPP’s EIS market readiness. Les mentioned pending meetings with the LPSC regarding the issue of rate pancaking between SPP and the Entergy ICT. SPP staff will be cognizant of how the company positions itself in that upcoming conference.

Agenda Item 5 – NERC ERO/RE Fees

Charles Yeung provided an update on NERC’s ERO implementation dockets open at the FERC (including the Delegation Agreement between NERC and SPP). Comments were submitted in the Delegation Agreement docket on January 10, 2007 and an Order would be expected no earlier than 60 days from that date. SPP’s Delegation Agreement included the estimated 2007 SPP RE budget and proposed allocation of such costs on a Balancing Authority basis within the SPP footprint (NERC ERO/RE Fees – Attachment 3). The Committee discussed concerns with the proposed allocation, NERC’s agreement to

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Strategic Planning Committee January 18, 2007

modify the Delegation Agreement to Load Serving Entities (LSE) in lieu of Balancing Areas (BA), and SPP’s efforts to date to facilitate the resolution of the matter. Richard Spring moved and Bary Warren seconded approval of the motion that the SPC recommend to the Board modifying the Delegation Agreement between NERC and SPP to change the allocation of ERO and RE costs from BAs in the SPP footprint to all LSEs in the SPP footprint. The motion passed unanimously.

Agenda Item 6 – Organizational Effectiveness Strawman

Richard Spring led a discussion of the prioritization and delegation of responsibilities associated with the Chairs and Secretaries Organizational Effectiveness recommendations. An action plan was developed (Organizational Effectiveness Action Plan – Attachment 4).

Agenda Item 7 – Strategic Plan Prioritization Strawman

Richard Spring led a discussion of the prioritization of the Strategic Plan components that included an informal poll of the SPC members. Polling results resulted in a revised prioritization (Strategic Plan Objectives – Attachment 5).

Agenda Item 8 – NERC/RE Transition Timeline

Charles Yeung discussed the Regional Entity Implementation Plan steps (NERC/RE Transition Timeline – Attachment 6).

Agenda Item 9 – Planning Retreat

The Strategic Planning retreat dates and locations were finalized and reported. The retreat will commence on Thursday, May 31 at 8:00 AM and conclude at noon Friday, June 1.

Agenda Item 10 – Summary of Action Items

• Finalize Organizational Effectiveness Action Plan • Finalize Regional Entity fees change recommendation to the Board • Work on Strategic Plan prioritization

Agenda Item 11 – Future Meetings

April 12 Oklahoma City July 12 Kansas City October 18 Tulsa Respectfully Submitted, Michael Desselle Secretary

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1

SPP.org 2

Current Organizational Chart

2

SPP.org 3

MOPC Items from Organizational Effectiveness

31 Stacy/Nick to raise in Jan. Board/MC meeting: 65-year Anniversary Event31 Pig Roast

19,20,21 Carl to develop strawman for consideration in April MOPC meeting; Subsequent SPC, Retreat discussion, Board action in July

19 Group names

20 Consolidation

21 MOPC Structure

17&18 Scope of BPWG to include all of the transmission service; Pose question to groups, Annual meeting v. AdHoc meetings part of MOPC reorganization proposal

17 BPWG NITS

18 NITS Operating

15 Abide by meeting materials submission guidelines15 Discussion rules

13 & 28 Develop a structured sequence of meetings; propose meetings for the year on that template and seek groups concurrence, Staff to monitor measures; areas for improvements highlighted for future education

13 see Staff

28 Joint meetings

4 Expand Quarterly pre-meeting conference calls to include Chairs/secretaries4 Annual Chairs Mtg.

Current StatusOperation Effectiveness Item

SPP.org 4

Issues with Current Organization• Inactive Groups and Inactive Members

• Varied levels of policy/technical details in groups

• Too many groups reporting to MOPC

• MOPC involved in detailed debate on technical issues

• MOPC only full representation group

• MOPC voting

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SPP.org 5

Ideas for Changes

SPP.org 6

Ideas for Improvement

• Focus a small number of Working Groups under the MOPC to formulate and debate policy in broad areas

• Matrix detailed Working Groups’ support to those Working Groups

• Rewrite names and scopes to reflect those duties

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SPP.org 7

Reorganized Working Group Suggestions

• Reliability Working Group• Responsible for reliable operations of SPP. Includes Criteria,

Operating Guides, NERC Standards, RE Functions of the Members, etc.

• SPCWG, some of GWG, ORWG, some of TWG, CIPWG, Some of OTWG

• Tariff Working Group• Responsible for SPP OATT and Business Practices/Protocols.• BPWG under this WG.

• Market Working Group• Responsible for Market Development for SPP, suggested Tariff

language for Market Changes, suggested Market Protocol changes, etc.

SPP.org 8

Reorganized Working Group Suggestions

• Planning Working Group• Responsible for Reliability and Economic Transmission

Planning, interaction with CAWG on Transmission Expansion issues, suggested Tariff language for transmission expansion and cost allocation issues in coordination with RSC, supply adequacy, IRP, etc.

• Some of TWG, some of GWG

• Operations Change Working Group• Responsible for coordinating any changes to SPP systems and

functions with members, suggested implementation issues with changes or new functionality, training for changes, focus on information technology, etc.

• Some of OTWG, ODWG, MDWG, OMDWG

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SPP.org 9

Carl A. MonroeSr. VP, Ops & COO501-614-3218cmonroe@spp.org

SPP Regulatory Affairs Activities First Quarter - 2007

SPP Regulatory Staff experienced continued growth in its caseload during the first

quarter of 2007, with a total of 124 cases being tracked at the federal and state levels. SPP is currently involved in 106 dockets at the Federal Regulatory Commission and a combined total of 18 dockets at the state utility commissions of Arkansas, Louisiana, Missouri and Texas.

A summary of significant issues undertaken by SPP Regulatory Staff in 2006 is set out

below, followed by an update for the first quarter of 2007:

Regulatory Summary - 2006

1. Reevaluation of FERC’s Annual Electric Assessment 2. FERC Rulemaking Proceedings

a. Docket Nos. RM05-17 and RM05-25: Order No. 888 Notice of Proposed Rulemaking (“NOPR”) b. Certification of the ERO and Procedures for the Establishment, Approval

and Enforcement of Electric Reliability Standards c. Docket No. RM06-4: Promoting Transmission Investing through Pricing

Reform d. Docket No. RM06-8: Long-Term Firm Transmission Rights in Organized

Electric Markets e. Docket Nos. RM06-16 and RM06-22: Mandatory Reliability Standards

for the Bulk Power System f. Docket No. RM07-3: Facilities Design, Connections and Maintenance

Reliability Standards g. Docket No. RM05-5: NAESB Modifications to WEQ Business Practices

3. FERC Administrative Proceeding a. FERC Federal-State Joint Boards on Security Constraints and Economic Dispatch

4. FERC ERO Rules and Organizational Filings a. NERC Filing of Version 5 Reliability Standards Development Procedure b. NERC Filing of the 2007 Business Plans and Budgets

5. FERC Electric Rate Filings of Interest a. Docket No. ER06-451-000: EIS Market implementation b. Docket No. ER06-729: Attachment M Revisions c. Docket Nos. ER03-765 and ER07-371: Reactive Compensation

d. Docket No. ER06-1362: Attachment X – Transmission Expansion Plan and Credit Policy

e. Docket No. EL07-6: FERC Inquiry Regarding Gas-Electric Coordination Issues 6. Louisiana and New Mexico Appeal for Review of the SPP RTO Orders (Case No. 04-

1398) – Dismissed October 13, 2006; 7. Addressing First Three Waiver Requests under Attachment J 8. Approval of Entergy’s ICT Proposal 9. Arkansas Regulatory Proceedings

a. Docket No. 04-137-U b. Docket Nos. 05-021-U, 06-077-U and 06-142-U

10. Missouri Regulatory Proceedings a. Docket Nos. EO-2006-0141 and EO-2006-0142

11. Kansas Regulatory Proceeding a. Docket No. 06-SPPE-202-COC

12. Texas Regulatory Proceeding a. Texas CREZ Rule: Project No. 31852

13. SPP EHV Overlay Assessment Regulatory Update - First Quarter 2007

1. Reevaluation of FERC’s Annual Electric Assessment On March 8, 2007, members of the RLC subcommittee responsible for this issue met in Columbus, Ohio with Scott Hempling, Director of the National Regulatory Research Institute (“NRRI”). As a result of that meeting, the subcommittee enlisted the services of Jeff DiSciullo of Wright & Talisman to review all of the information prepared by the RLC and Scott and provide a fresh perspective of the problem and the proposed solutions. Jeff provided a draft last week of his reassessment, and that has been forwarded to the RLC subcommittee members for their review. 2. FERC Rulemaking Proceedings

a. Docket Nos. RM05-17 and RM05-25: Order No. 888 NOPR

On February 16, 2007, the Commission issued final rule Order No. 890, amending the regulations and the pro forma OATT adopted in Order Nos. 888 and 889 to ensure that transmission services are provided on a basis that is just, reasonable and not unduly discriminatory or preferential. Order No. 890 impacts SPP by requiring that SPP: conform the SPP OATT to a new pro forma template, post more information online, comply with modified planning standards and monitor the NERC/NAESB process that will incorporate new reliability standards.

Several requests for rehearing/appeal/clarification of Order No. 890 have been filed with the Commission.

b. Docket No. RM06-4: Promoting Transmission Investing through Pricing Reform In January of 2007, several requests for clarification, rehearing or appeal of Order No.

679-A were filed with the Commission, and on February 21, the Commission granted rehearing of the order.

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c. Docket No. RM06-8: Long-Term Firm Transmission Rights in Organized Electric Markets

Rehearing of Order No. 681-A was granted by the Commission on January 17, 2007. ISO-NE, CAISO and the NYISO have filed compliance proposals in this proceeding. Proposals were due to the Commission by January 29, 2007.

d. Docket Nos. RM06-16 and RM06-22: Mandatory Reliability Standards for the Bulk Power System

Several rulemaking comments have been filed in Docket No. RM06-22, with SPP filing

comments on February 12, 2007. The ISO/RTO Council (“IRC”), PJM, and ISO-NE also filed comments.

Numerous rulemaking comments and supplemental comments were filed in Docket No. RM06-16, as well. Notably, comments were filed by the ISO/RTO Council; MISO and PJM; CAISO; ISO-NE; and PJM.

On February 23, 2007, NERC requested that the Commission approve violation risk factors for Version 0 reliability standards. .

On March 16, 2007, the Commission issued Order No. 693 in Docket No. RM06-16-000, approving 83 of 107 proposed Reliability Standards, 6 of the 8 proposed regional differences, and the Glossary of Terms Used in Reliability Standards developed by NERC. As the ERO, NERC must submit “significant improvements” to 56 of the 83 Reliability Standards being approved. The remaining 24 standards are pending at the Commission until further information is provided.

The Final Rule adds regulations stating applicability to all users, owners and operators of

the Bulk-Power System within the United States (other than Alaska or Hawaii) and requires that each Reliability Standard identify the subset of users, owners and operators to which that particular Reliability Standard applies. All approved Reliability Standards are to be maintained on the ERO’s Internet website for public inspection.

e. Docket No. RM07-3: Facilities Design, Connections and Maintenance Reliability Standards

In January of 2007, several comments were filed in response to the Commission’s October 20, 2006 NOPR, as amended November 27, 2006. NOPR comments were due January 3, 2007.

SPP has not acted in this rulemaking.

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f. Docket No. RM05-5: NAESB Modifications to WEQ Business Practices The Commission issued a NOPR in Docket No. RM05-5003 on February 20, 2007, to

amend its regulations under the Federal Power Act to incorporate a revised version of the Coordinate Interchange Standards adopted by the Wholesale Electric Quadrant (“WEQ”) of the North American Energy Standards Board (“NAESB”) on June 22, 2006, and filed with the Commission November 16, 2006.

g. Docket No. RM02-12: Remedying Undue Discrimination through Open Access

Transmission Service and Standard Electricity Market Design, etc. On February 23, 2007, ISO-NE filed proposed amendments to the ISO-NE OATT,

supplementing its October 27, 2006 Filing, pursuant to Order No. 2006-B.

SPP has not acted in this rulemaking. h. Docket No. RM06-10: New PURPA Section 210(m) Regulations Applicable to

Small Power Production and Cogeneration Facilities On October 20, 2006, the Commission issued Order No. 688, modifying the mandatory

power purchase obligation for electric utilities under the Public Utility Regulatory Policies Act of 1978 (“PURPA”) as mandated by the Energy Policy Act of 2005. The Commission declined to evaluate the SPP market, pending market redesign; finding, instead, that SPP would meet the criteria of PURPA section 210(m)(1)(A) once the market redesign becomes effective, and that SPP meets the 210(m)(1)(B)(i) criterion. SPP member electric utilities may rely on the Commission’s partial findings if filing to terminate the mandatory purchase obligation. However, SPP members must make all other required showings under section 210(m)(1)(B).

Several requests for rehearing or appeal and clarification of Order No. 688 were filed, and rehearing was granted on December 20, 2006. Commission action is forthcoming.

i. Docket No. RM06-12: Regulations for Filing Applications for Permits to Site Interstate Electric Transmission Corridors

On January 16, 2007, the Commission granted rehearing of Order No. 689, which was

issued November 16, 2006. Order No. 689 implemented new regulations in accordance with section 1221 of the Energy Policy Act of 2005 to establish filing requirements and procedures for entities seeking to construct electric transmission facilities.

SPP has not acted in this rulemaking.

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3. FERC Administrative Proceeding a. Docket No. AD06-9: RTO and ISO Seams Issues in the Eastern Interconnection A technical conference addressing RTO border utility issues was held March 29, 2007. Carl Monroe presented on behalf of SPP. 4. FERC ERO Rules and Organizational Filings

a. Docket No. RR06-1: NERC Filing of Version 5 Reliability Standards Development Procedure

SPP intervened in this proceeding on January 10, 2007, and on January 12, NERC

submitted a compliance filing pursuant to the Commission’s October 30, 2006 Order, which required certain modifications to section 1302 of NERC’s Rules of Procedures regarding the makeup of NERC committees and subgroups. NERC’s January 12 Filing was conditionally accepted by the Commission on March 9, 2007.

On January 18, 2007, the Commission issued an order accepting in part and rejecting in part NERC’s October 18, 2006 compliance filing.

SPP and the IRC requested clarification, or in the alternative rehearing, of the January 18 Order on February 20 and March 7, 2007, respectively. Rehearing of the January 18 Order was granted by the Commission on March 22, 2007.

b. Docket No. RR06-3: NERC Filing of the 2007 Business Plans and Budgets

A number of comments on NERC’s December 22, 2006 compliance filing were filed with the Commission, and on March 29, 2007, FERC issued a letter order accepting NERC’s compliance filing.

A technical conference was held on March 2, 2007 to explore whether the Western Electricity Coordinating Council’s (“WECC”) reliability coordinator activities should be funded through the ERO.

SPP is an intervenor in this docket. c. Regional Entity Delegation Agreements: Docket Nos. RR07-1, RR07-2, RR07-3,

RR07-4, RR07-5, RR07-6, RR07-7, RR07-8 These dockets involve delegation agreements between the following: (1) NERC and

Texas Regional Entity, a division of ERCOT; (2) NERC and the Midwest Reliability Organization; (3) NERC and Northeast Power Coordinating Council: Cross Border Regional Entity, Inc.; (4) NERC and Reliability First Corporation; (5) NERC and SERC Reliability Corporation; (6) SPP Regional Entity Delegation Agreement (“SPP-NERC RDA”); (7) NERC

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and Western Electricity Coordinating Council; and (8) NERC and Florida Reliability Coordinating Council.

SPP intervened in each docket on January 10, 2007.

5. FERC Electric Rate and Other Formal Filings of Interest a. Docket No. ER06-451: EIS Market implementation SPP made eight (8) filings the first quarter of 2007 concerning implementation of SPP’s real-time energy imbalance (“EIS”) market, which was met by the issuance of several orders. In particular, the Commission accepted SPP’s October 26, November 30, December 15, 2006 and January 25, 2007 compliance filings, but rejected SPP’s December 20, 2006 filing of revisions to Attachment AE. In a separate order, the Commission also directed SPP to either incorporate various demand response provisions into portions of SPP’s OATT relating to its real-time EIS Market or explain why such provisions should not be included. In this quarter, rehearing was granted of both the November 17, 2006 Order and the January 26, 2007 Order. Rehearing of the October 26, 2006 was denied, although clarification was provided. b. Docket No. ER06-729: Attachment M and Attachment AE Revisions On January 26, 2007, the Commission granted SPP’s limited request for rehearing of the October 19, 2006 Order, which conditionally approved SPP’s OATT revisions modifying the loss compensation provisions of Attachment M and Attachment AE to SPP’s OATT to reflect SPP’s proposed EIS Market. In its January 26 Order, the Commission also approved SPP’s November 20, 2006 compliance filing, made pursuant to the Commission’s October 19 Order. c. Docket Nos. ER03-765 and ER07-371: Reactive Compensation On January 31, 2007, SPP responded to all protests of its December 26, 2007 compliance filing, contending that provisions to pay generators within the defined deadband or pay lost opportunity costs are unnecessary; Schedule 2 will not provide SPP or the Balancing Authorities opportunity to favor the Balancing Authorities’ generation; SPP’s proposed qualified generator provisions are just and reasonable; and that Calpine’s claims are beyond the scope of this proceeding. On February 27, 2007, the Commission notified SPP that the December 26, 2006 Filing is deficient, requesting that SPP filed additional information with the Commission by March 29, 2007. SPP has complied with the Commission’s request.

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d. Docket No. ER07-603: Partially Executed Service Agreement between SPP and Golden Spread for Market Participants Selling into SPP’s EIS Market

On March 5, 2007, SPP submitted a partially executed service agreement for Market Participants selling into its real-time energy imbalance service markets with Golden Spread Electric Cooperative, Inc. (“Golden Spread”). An effective date of February 1, 2007 is requested. Commission action is forthcoming. e. Docket No. ER07-643: Executed Meter Agent Service Agreements between AEP and SPP EIS Market Participants On March 21, 2007, SPP filed eight (8) executed Meter Agent Services Agreements between AEP and various participants in SPP’s real-time EIS Market. An effective date of February 1, 2007 is requested.

f. Docket No. EL07-6: FERC Inquiry Regarding Gas-Electric Coordination Issues

On January 16, 2007, SPP filed its response to the Commission’s October 25, 2006 Order, requiring ISOs and RTOs to explain whether any changes were required to ensure effective coordination between the scheduling of electricity transmission and the scheduling practices associated with gas supply and capacity procurement. Comments on SPP’s January 16 Filing were submitted by WPS Resources Corporation and FPL Energy Generators.

g. Docket No. EL07-28: Xcel’s Complaint against SPP Regarding the Registration

of JD Wind Resource Units 1 through 4

On January 4, 2007, Xcel Energy Services, Inc. (“Xcel”) filed a complaint, on behalf of itself and Southwestern Public Service Company (“SPS”) concerning SPP’s registration of JD Wind Resources Units 1 through 4. Xcel requested that the Commission: (1) interpret SPP’s OATT and relevant business practices and find that SPP does not have the authority to unilaterally register assets to SPS without SPS’s consent and (2) direct SPP to remove the assets from the list of generation facilities for which SPS is registered in the SPP EIS Market, until such time as SPS agrees to register these facilities itself. The Commission issued an order March 22, 2007, granting Xcel’s complaint against SPP; finding that, “SPP does not meet the applicable SPP OATT definitions or registration requirements of a Market Participant and, therefore, SPP lacks authority pursuant to the SPP OATT to register generation facilities as resources for the imbalance market.” 6. Addressing First Five Waiver Requests under Attachment J SPP has received five waiver requests. The following is a synopsis of these requests:

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Golden Spread Electric Cooperative (“GSEC”) filed a waiver for reservation 1034404 by letter on May 19, 2006. SPP asked for additional information by letter on August 9 and again on September 25, 2006. SPP made a recommendation to the MOPC and prior to the presentation to discuss the GSEC waiver request. GSEC pulled their waiver request, and the waiver request was not discussed. Oklahoma Gas and Electric (“OG&E”) filed a waiver for reservation 1032973 by letter on May 19, 2006. SPP asked for additional information by letter from OG&E, as was done for the GSEC waiver request. SPP made a recommendation to the MOPC. The MOPC asked the CAWG to review the recommendation because it was the first to move forward. At the same time the MOPC asked the BOD to allow additional time due to unusual circumstances. The CAWG reviewed the waiver in a special meeting on December 20, 2006 and recommended to the MOPC to grant the waiver for the addition of $747,000 of Base Plan funding. The MOPC made a recommendation to the Board of Directors to grant the waiver. The BOD approved the waiver in their January 2007 meeting contingent on the approval of the RSC. The RSC approved the waiver on March 1, 2007. Westar Energy (“Westar”) filed a waiver for reservation 1086655 by letter on October 13, 2006. SPP asked for additional information by letter from Westar in November of 2006. SPP reviewed the Westar waiver with the CAWG. The SPP recommended to the MOPC in a special meeting on January 26, 2007 to approve the waiver to be fully Base Plan funded. The BOD approved the waiver in their January 30, 2007 meeting. Arkansas Electric Cooperative Corporation (“AECC”) and the Oklahoma Municipal Power Authority (“OMPA”) requested waiver for reservations 1161209 and 1159596, respectively. SPP presented a recommendation to the CAWG to approve the waivers in the March 25, 2007 meeting. The CAWG is recommending to the RSC to approve the waivers in their upcoming April 24, 2007 meeting. During the teleconference with the RSC on April 5, 2007, issues were discussed and the discussion will be continued. SPP will be making a presentation to the MOPC April 11, 2007 to approve the waivers. The BOD meets April 24, 2007. Baring unusual circumstances, the BOD will take action on these waivers. 7. Approval of Entergy’s ICT Proposal Entergy’s ICT Proposal is addressed in FERC Docket Nos. ER04-699-000 and ER05-1065-000 (Docket No. ER05-1065 replaced Entergy’s Initial ICT Proposal in Docket No. ER04-699, which closed June 30, 2005), as well as Louisiana Public Service Commission Docket No. U-28155 and Arkansas Public Service Commission Docket No. 04-050-U. On January 16, 2007, Entergy submitted a compliance filing in Docket No. ER05-1065-006 pursuant to the Commission’s October 18, 2006 Order, which accepted in part and modified in part Entergy’s May 24, 2006 compliance filing to establish an ICT. The Louisiana Public Service Commission, Cottonwood and the TDU Intervenors filed protests to Entergy’s January 16 Compliance Filing.

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Entergy made two (2) filings this quarter relating to inaccurate data. Entergy cited OASIS software issues, advising the Commission that Entergy cannot fully construct certain AFC impact logs for the period of October 27, 2006 thru November 12, 2006. SPP filed its first Quarterly Performance Report as the ICT on March 9, 2007 in FERC Docket No. ER05-1065-000. 8. Arkansas Regulatory Proceedings

a. Docket Nos. 05-021-U, 06-142-U and 06-171-U SPP filed in support of a number of Certificate of Convenience and Necessity (“CCN”)

and Certificate of Environmental Capability and Public Need (“CECPN”) applications of member Transmission Owners before the Arkansas Public Service Commission (“APSC”).

A public hearing was held January 3, 2007, and on February 1, the APSC granted

Southwestern Electric Power Company’s (“SWEPCO”) application in Docket No. 05-021-U for a CECPN to construct, operate and maintain new 345 kV electric transmission line, approximately 11.25 miles in length, extending between SWEPCO’s existing Chambers Spring Substation and its existing Tontitown Substation. On March 14, 2007, the APSC granted SWEPCO a CCN in Docket No. 06-142-U to rebuild and convert the voltage of SWEPCO’s North Fayetteville 69 kV station in Washington County.

Arkansas Electric Cooperative Corporation filed a CECPN Application in Docket No. 06-171-U on December 21, 2006. A public hearing was held March 21, 2007, and on March 23, the APSC granted Arkansas Electric Cooperative Corporation a CECPN for the construction, ownership, operation and maintenance of a combustion turbine generating facility in Washington County near Elkins, Arkansas. On December 22, 2006, SWEPCO applied for a CCN in Docket No. 06-172-U to rebuild and convert its existing 69 kV transmission line in Washington County to 161 kV between SWEPCO’s Fayetteville and North Fayetteville substations. A hearing was held April 5, 2007.

b. Docket No. 06-028-R On January 4, 2007, the APSC approved Resource Planning Guidelines for Electric

Utilities. An additional order addressing whether to adopt the PURPA standard may be issued after completion of a study to determine whether Arkansas utilities are already using diverse fuel sources.

c. Docket No. 07-009-U

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On March 8, 2007, the APSC approved SPP’s January 29, 2007 application for authority to issue secured promissory notes in a principal amount not to exceed $5,400,000 with a maturity not to exceed twenty (20) years to U.S. Bank National Association.

9. Texas Regulatory Proceeding

a. Texas CREZ Rule: Project No. 31852

The Public Utility Commission of Texas (“PUCT”) adopted a final CREZ rule December 15, 2006, and SPP continues to be involved in the CREZ selection process.

On April 2, 2007, the elected representatives of the Texas Panhandle/South Plains filed comments with the Commission, expressing their support for transmission infrastructure improvements in SPP and encouraging the Commission to speed development of SPP’s “X Plan.”

b. Proceeding to Designate CREZS: Docket No. 33672 SPP was granted intervenor status in this proceeding on January 25, 2007 and filed an

Analysis of Transmission Alternatives for Competitive Renewable Energy Zones on January 26. A hearing is scheduled for June 11-15, 2007.

c. Entergy Gulf States, Inc.’s TTC Plan: Docket No. 33687

SPP moved to intervene in this proceeding on January 19, 2007, and was granted intervenor status on January 26. On February 20, 2007, PUCT Staff filed a motion for summary decision on Gulf States’ proposed Transition to Competition (“TTC”) Plan. Responses to Staff’s motion were due March 1, 2007. On March 30, 2007, SPP filed a statement under section 4 of the protective order, claiming exemption from disclosure of highly sensitive information. A technical conference followed on April 2-3, 2007, and on April 4, SPP filed confidential responses to ETC 1-2, 1-3, 1-5, 1-6, 1-7, 1-9, and 1-12. A combined ERCOT and SPP technical conference will be held April 11, 2007, with a hearing scheduled for May 21-25, 2007. 10. SPP EHV Overlay Assessment Phase One of the Assessment is complete. This phase, which required development of assumptions based on stakeholder input, included a meeting at the TWG on February 7, 2007, at which the assumptions for the study were finalized. Phase Two, which involves development of futures and sensitivities from Phase One, is in progress, with completion of model development slated for Friday, April 13, 2007.

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Order No. 693 – Background

• April 4, 2006 - ERO submitted Reliability Standards (modified 8/28)

• October 20, 2006 – FERC issued NOPR in RM06-16 requesting comments on proposed Reliability Standards

• December 1, 2006 - “NERC’s Reliability Standards Development Plan: 2007 — 2009” (Work Plan) informational filing

• March 16, 2007 – Order No. 693 Issued• Effective date – 60 days after publication in FR

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Order No. 693 – General Summary

• Approved 83 of 107 Reliability Standards1. 27 approved outright2. 56 require significant improvements3. 24 are pending requiring additional information (“fill-in-

the blanks”)• Approved 6 of 8 regional differences, including:

1. MISO/SPP Financial Inadvertent Settlement (approved)2. MISO/SPP Scheduling Agent (approved)3. PJM/MISO/SPP Enhanced Congestion Management

(pending)• Approved glossary of terms used in Reliability

Standards• Adopted rule changes

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Order No. 693 – Actions taken

• FERC took one of four actions on each Reliability Standard: (1) approve (a); (2) approve as mandatory and enforceable and directed modification (a/dm); (3) requested additional information (pending); or (4) remanded (r).1. NERC must file a revised work plan within 90 days to

reflect modification directives, address Order No. 890 directives and account for stakeholder comments.

2. Fill-in-the-blank standards remain voluntary, a matter of good utility practice pending additional information from NERC.

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Order No. 693 – FERC actions at a glance

BAL: Resource and Demand Balancing(6) - 1(a), 5(a/dm)CIP: Critical Infrastructure Protection(1) - 1(a/dm)COM: Communications(2) - 2(a/dm)EOP: Emergency Preparedness

and Operations(9) - 1(a), 7(a/dm), 1(p)FAC: Facilities Design, Connections, Maintenance,

and Transfer Capabilities(7) - 2(a), 4(a/dm), 1(p)INT: Interchange Scheduling and Coordination(9) - 7(a), 2(a/dm)IRO: Interconnection Reliability Operations

and Coordination(9) - 3(a), 6(a/dm)MOD: Modeling, Data, and Analysis(23) - 1(a), 9(a/dm), 13(p)*PER: Personnel Performance, Training

and Qualifications(4) - 1(a), 3(a/dm)PRC: Protection and Control(21) - 8(a), 6(a/dm), 7(p)TOP: Transmission Operations(8) - 2(a), 6(a/dm)TPL: Transmission Planning(6) - 4(a/dm), 2(p)VAR: Voltage and Reactive Control(2) - 1(a), 1(a/dm)*includes several pending, direct modification

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Order No. 693 – Rule Modifications

• Each Reliability Standard must identify to whom it applies.

• Reliability Standards shall not become effective until approved by the Commission.

• ERO must post each effective Reliability Standard to its web site.

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Order No. 693 - Applicability

• Initially, Reliability Standards apply to bulk electric system as in NERC’s proposed definition rather than FPA Bulk-Power System.

• 90 day informational filing with complete set of regional definitions• ERO or Regional Entity may include additional facilities that are

needed for Bulk-Power System reliability.• ERO compliance registry process will determine the entities

responsible for complying with Reliability Standards.• No “blanket waiver” for small entities

• ERO directed to file procedure whereby a joint action agency, etc. may accept compliance responsibility for its members.

• ERO must assure that there are no “gaps” or “redundancies” in responsibilities between ISOs, RTOs or pools and their members.

• RROs are not responsible entities.• Regional Entities are the compliance monitors.• As an interim measure, data will be provided to RROs.

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Order No. 693 - Enforcement

• Approved Reliability Standards become effective on the later of the Effective Date of the Final Rule or the proposed NERC effective date.

• ERO and Regional Entities shall focus their efforts on the most serious violations until the end of the year.

• ERO and Regional Entities have discretion to calculate but not collect penalties.

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Order No. 693 - SPP Compliance Project

SPP is currently leading an aggressive compliance project to:

• Identify applicable standards, SPP business owners, and violation risk factors [Complete]

• Communicate applicable standard requirements and measures to business owners

• Develop plan to audit compliance with applicable standards

• Develop plan for continued compliance monitoring • Audit Functional Areas

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Order No. 693 – Enforceable Reliability Standards

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Overview – Five Objectives of Order No. 890

(1) Improve transparency and consistency by providing greater consistency in ATC calculation,

(2) Reform transmission planning requirements,(3) Reform certain portions of the pro forma OATT that

permitted utilities to discriminate against new merchant generation,

(4) Provide greater transparency in transmission service by granting greater access to information.

(5) Reform areas of the OATT that have been the source of disputes over the past 10 years.

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Order No. 890 Deadlines

May 14 – Effective date of Order No. 890 and non-RTO compliance filings due

May 29 – Planning Strawman must be posted on the Web site

June 4 – At conclusion of SEARUC Meeting,FERC/State Regional Technical Conference

June 13 – NERC required to file a Work Plan on ATC calculation development

July 13 – Transmission Provider required to file adjustment to point to point rates to reflect CBM adjustment

September 11 – Transmission Providers must file changes to Attachment C (ATC)

October 11 – OATT compliance filing for RTOs

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Order No. 890 – FERC Directives Regarding RTO Compliance

• Compliance filings due October 11, 2007.• RTOs may demonstrate how tariff variations are

consistent with or superior to Order No. 890.• Tariff filings need not rejustify existing procedures

not affected by Order No. 890.• RTOs are encouraged to meet with stakeholders to

discuss necessary improvements to comply.• Transmission Owner members of RTOs must make

conforming compliance filings by October 11.

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Consistency and Transparency of ATC Calculations

Three simultaneous directives:(1) Order No. 890 – Public utilities must work with NERC to

modify ATC-related reliability standards within 270 days and work with NAESB to develop business practices that complement NERC’s standards within 360 days. (NERC has an ATC Standard Development Plan schedule in place.)

(2) Order No. 890 – Transmission Provider must modify their OATT Attachment C to give more detail on their ATC calculations.

(3) Order No. 693 – FERC approved many ERO Reliability Standards and directed further development of others, including certain ATC calculation standards. Per Order No. 890, Attachment C must be updated within 60 days of any change made by NERC or NAESB.

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Consistency and Transparency of ATC Calculations – Attachment C

Transmission Providers must amend their Attachment C to:

• Provide a detailed description for calculating firm and non-firm ATC,

• Identify which NERC -approved methodologies it employs (e.g., contract path, network ATC, or network AFC),

• Provide specific mathematical algorithms,• Give process flow diagrams,• Provide definitions of ATC components,• Give a narrative description detailing CBM practices,• List the databases used.

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Coordinated, Open and Transparent Transmission Planning

Order No. 890 adopted 9 principles for transmission planning:1. Coordination2. Openness3. Transparency4. Information Exchange5. Comparability6. Dispute Resolution7. Regional Participation8. Economic Planning Studies9. Cost Allocation for New Projects

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Coordinated, Open and Transparent Transmission Planning (cont.)

• The planning process must be documented as attachment to the OATT.

• Transmission Owners must also comply with the Planning Principles to the extent they perform part of the planning function.

• Each Transmission Provider must post a planning process proposal (“Strawman”) on its website by May 29.

• Anticipated FERC/State regional technical conferences on the posted strawmen sometime between June 13 and July 13 (for SEARUC region, week of June 4).

• FERC encourages prior consultation with stakeholders.

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Transmission Pricing

• Adopted standard Energy and Generator Imbalance approach but RTOs may justify deviations.

• Penalties for unreserved use must be distributed to non-offending parties.

• Network Customer shall receive credit for facilities added after effective date if facilities are integrated into the system.

• Customers may reassign firm point to point capacity rights to another customer (price cap removed).

• Ancillary Service may be provided by non-generation resources.

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Non-Rate Terms and Conditions – Planning Redispatch and Conditional Firm Service

• Generally, SIS must identify (1) redispatch options, including an estimate of the redispatch cost, and (2) conditional firm service (CFS) options, under certain conditions.1. CFS curtailable either for a specified number of hours in a

year or upon the occurrence of specifically identified system contingencies (secondary network priority).

2. Providers with real time energy markets need not offer conditional firm service.

• RTOs must work with customers to facilitate third party redispatch obligations.

• Must implement mechanisms and business practices within 180 days (Sept. 11).

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Non-Rate Terms and Conditions – Redispatch Rate Transparency

Transmission Providers must post on OASIS the following redispatch information (if redispatch is provided):

• Its monthly average cost of redispatch for each internal congested transmission facility or interface over which it provides planning redispatch or reliability redispatch;

• The high and low redispatch cost for the month for each of these same transmission constraints; and

• Internal constraint or interface data for the month if any planning redispatch or reliability redispatch is provided duringthe month, regardless of whether the transmission customer is required to reimburse the transmission provider for those exact costs.

Transmission Providers must work with NAESB to develop OASIS functionality and business practice standards.

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Non-Rate Terms and Conditions – Roll Over Rights

• Roll over rights now for service agreements of five year or longer.

• One year notification requirement to exercise roll over right.

• New roll over right paradigm effective when FERC accepts the regional planning documentation.

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Non-Rate Terms and Conditions – Processing Transmission Studies

• Must track and post performance metrics related to processing and completion of transmission studies. (~26)

• Must notify the Commission if it processes more than 20% of the studies outside the due diligence deadline for two consecutive quarters.

• Subsequent to notification, additional performance tracking and posting requirements.

• Subject to operational penalties ($500/day) if it completes 10% or more of the studies outside of the due diligence deadlines in two subsequent quarters.

• Must distribute the penalties to customers.• Tracking and reporting obligations begin May 14.

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Order No. 890’s Major Impacts on SPP

Conforming the SPP Tariff to the Order 890 pro forma Tariff. An administrative matter of significance.

Significant task to comply with the Order’s rules concerning the posting of information that is not now required to be posted; i.e. performance metrics for aggregate studies for short and long-term service, redispatch costs (if any).

Planning standards strawman within 75 days and participation in the associated FERC/State Regional Technical Conference on planning, including developing a coordinated planning process with neighboring transmission providers.

Monitoring the NERC/NAESB process that will incorporate new reliability standards for outcomes that may impact SPP’s ATC methods. SPP must post its ATC methodology on its OATT.

Commitment to address conditional service needs in SPP’s energy imbalance market notwithstanding Order No. 890’s directive that RTOs with energy markets need not offer conditional firm service.

Organizational Effectiveness Action Plan

Issue Recommendation 4/12/2007 Status Corporate Governance

1 Proxies 2 Voting 5 Attendance Policy 6 Definitions 9 Term limits

11 Elections 24 Charters 32 Assessment 34 Structure 36 Membership Criteria

• CG debate issues, develop timelines, perform legal interpretations, develop Bylaws modifications,

develop processes, draft proposals • Present to MOPC/SPC in April • Consider feedback and modify if necessary • Final Proposal to SPC Retreat • Board Action in July

• CG has reviewed; Bylaws Modifications to be developed 1 Consensus to modify; must be delivered in advance 2 No changes 9 No set limits; Annual review of rosters & Chairs

11 Adequate notice regarding vacancies 24 Annually reviewed 32 Moved from SPC to CG

34Clarify that seats are for individuals; not Company (Except MOPC)

36 Capture in group charter

SPC

23 Survey 38 NERC

23

SPC to consider timing of Org. Effectiveness and Customer Satisfaction survey responses: in the interim use two forums to gather information prior to the SPC retreat: 1., Annual face-to-face Meeting, and 2., Quarterly expanded MOPC conf. calls

38 Charles Yeung to continue coordination efforts

38 Done

Staff

3 Teleconference 4 Annual Chairs Mtg.

10 Coordination 12 Education

13 Meeting time and locations

14 Metrics 16 RSC relationship 25 Meeting location 26 NAESB

3 Review upgrading technology; Use more mikes/spider mikes; consider ceiling height at meeting locations

4 Add once/year face-to-face meeting to occur in the March/April timeframe prior to SPC annual retreat

10 In addition to added annual face-to-face meeting, also expanding the participation and time to the quarterly pre-MOPC meeting preparation conference call

12 Stacy to continue training at the annual Chairs and Secretaries meeting

13 Develop a structured sequence of meetings; propose meetings for the year on that template and seek groups concurrence

14 Staff to monitor measures; areas for improvements highlighted for future education (item #12)

3 Already underway 4 Still under consideration

10 Done 12 Done 13 Under consideration in MOPC proposals 14 Ongoing 16 Already occuring 25 Done 26 Done

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Organizational Effectiveness Action Plan

27 Training RE Process 29 Secretary debriefs 30 Meeting scheduling 33 Documentation 35 Information 37 Registration 40 HR/FC coordination

16 Continue to foster strong RTWG/CAWG relationship and assist its coordination 25 Keep the current rotation of meetings in member cities of significant size and accessibility 26 Charles Yeung to continue to report, IRC report, Org Report, SPC, and MOPC report 27 SPP February Compliance workshop, host another workshop post-FERC Order 29 Secretary input into Org report, Discuss debrief in Managers meeting 30 Web-site calendar

33 Develop better mapping of location of documents; develop/document processes/flowcharts and centrally locate on web-site; RE voting/registration all to be documented and posted

35 Continue to improve recommendation background development to better educate Board on majority/minority opinions

37 Staff to encourage registration; Evaluate auto-reminder systems 40 Already occurring

27 Done 29 Ongoing 30 Done 33 Ongoing and underway

35Ongoing; See additional SPC comments in 4/12 minutes

37 Additional investigation underway

MOPC

4 Annual Chairs Mtg. 13 see Staff 15 Discussion rules 17 BPWG NITS 18 NITS Operating 19 Group names 20 Consolidation 21 MOPC Structure 28 Joint meetings 31 Pig Roast

4 Expand Quarterly pre-meeting conference calls to include Chairs/secretaries 15 Abide by meeting materials submission guidelines 17, 18

Scope of BPWG to include all of the transmission service; Pose question to groups Annual meeting v. AdHoc meetings part of MOPC reorganization proposal

19,20,21

Carl to develop strawman for consideration in April MOPC meeting; Subsequent SPC Retreat discussion, Board action in July

28 See #13 31 Stacy/Nick to raise in Jan. Board/MC meeting: 65-year Anniversary Event

• Proposals under consideration at MOPC 4 Done and Ongoing

15 Done

17MOPC Reorg proposal under consideration

18 In Process 19,20,21

MOPC Reorg proposal under consideration

28 Scheduling

CC

22 Compliance 39 ERO

• Monitor Order From FERC • Incorporate any changes, post Order

• Pending

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ID Start Task Name1 Tue 1/2/07 SPP Strategic Plan by Priority2 Tue 1/2/07 PRODUCTS3 Tue 1/2/07 PRIORITY A: SPP Regional Entity (RE) Transition4 Tue 1/2/07 Implementation

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6 Tue 1/2/07 PRIORITY A: Transmission Expansion/Economic Upgrade7 Tue 1/2/07 Policy Decision/CAWG Input

8 Tue 4/1/08 FERC Filing

9 Wed 7/2/08 Implementation

10 Wed 10/1/08 Evolutionary Development

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12 Mon 4/2/07 PRIORITY A: Transmission Expansion/Project Tracking13 Mon 4/2/07 Determine reporting enhancements requirements

14 Wed 4/11/07 Develop and test reporting enhancements

15 Fri 5/11/07 Deliver reporting enhancements

16 Tue 6/26/07 Institute enhanced reporting

17 Mon 7/2/07 Evolutionary Development

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19 Mon 4/2/07 PRIORITY B: Market Development and Design20 Mon 4/2/07 Develop plan and timeline by SPC Retreat

21 Mon 7/2/07 Evolutionary Development

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23 Tue 1/2/07 PRIORITY B: Balancing Authority24 Tue 1/2/07 Survey Member Interest

25 Mon 4/2/07 Develop Technical Plan

26 Mon 4/2/07 Cost Benefit Analyses

27 Mon 7/2/07 Vet Tech plan with BAs, select BAs

28 Mon 7/2/07 Evaluate legal, compensation, risk issues

29 Tue 1/1/08 Begin Provision of Service

30 Tue 4/1/08 Evolutionary Development

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32 Tue 1/2/07 PROCESSES33 Tue 1/2/07 PRIORITY B: Communication & Education34 Tue 1/2/07 Develop Plan/Provide Plan by SPC Retreat

35 Mon 7/2/07 Evolutionary Development

36

37 Tue 1/2/07 PRIORITY C: Center of Excellence

4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09

SPP Strategic Plan Prioritization Strawman

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ID Start Task Name38 Tue 1/2/07 Hire Director

39 Mon 4/2/07 Develop Business Plan by SPC Retreat

40 Mon 7/2/07 Implement C of E

41 Mon 7/2/07 Evolutionary Development

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43 Tue 1/2/07 PRIORITY C: Contract Services44 Tue 1/2/07 Evolutionary Development

45

46 Tue 1/2/07 PRIORITY C: Membership Development47 Tue 1/2/07 Ongoing Membership Development Effort

4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09

SPP Strategic Plan Prioritization Strawman

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