Southwest Power Pool CREDIT PRACTICES minutes 20150924... Southwest Power Pool CREDIT PRACTICES WORKING

Southwest Power Pool CREDIT PRACTICES WORKING GROUP

September 24, 2015 In Person/Teleconference

Minutes

Agenda Item 1 – Administrative Items Mark Holler called the meeting to order at 9:00 a.m.

Agenda Item 2 – Introductions

The following members were in attendance: Mark Holler (Tenaska); Terri Wendlandt (Westar); Cassandra Strange (OGE); Bill Thompson (AEP); Gina Wilson (ITC); Steve Johnson (Basin); and Ronnie Hall (KCPL). Also in attendance were; Nathan Case (ACES); Matt Robson (SESCO); Bryan Willnerd (LES); Matt Holstein (TEA); Jill Jones (MEAN); Jack Clark (NextEra); Donald Ellis (Empire); Michael Erbrick (MIS); Ryan Johnson (AEP); Brian Lawson (TexLa); Eric Levine (Exelon) and Scott Smith, Phil McCraw, Jared Barker, Erin Brown, Annette Holbert, Charles Cates, and Lisa Caserta (SPP).

Mark Holler asked if there were changes to the August meeting minutes (Attachment 2 – CPWG Minutes 20150820). Gina Wilson made a motion to accept the minutes and Ronnie Hall seconded. The minutes were unanimously accepted without amendment.

Agenda Item 3 – Stakeholder Prioritization Process Annette Holbert presented concerning the new process to prioritize system changes (Attachment 3 – Stakeholder Prioritization Project WG Presentation 2015 20150924). This is the process that will be followed when enhancements to system functionality are requested by members.

Agenda Item 4 – ARR/TCR Allocation Process

Charles Cates discussed the ARR/TCR allocation process and answered members questions

Agenda Item 5 – Tariff Changes for TCR Auction Netting

The Group discussed proposed credit policy language changes (Attachment 4 – Tariff Changes to Allow Netting of Existing TCR Portfolio with Auction Submissions 20150924). There was a motion from Ronnie Hall to accept the language as presented and Terri Wendlandt seconded. In a roll call vote the motion was unanimously accepted. Bill Thompson was not present at the time of the vote.

Agenda Item 6 – TCR Reference Prices and Possible Alternatives

Mark Holler presented analysis of reference prices calculated on a daily verses hourly basis as they are now (Attachment 5 -- SPP TCR Reference Prices 092415). After discussion there was consensus that this is an area that will be further analyzed and brought before the Group again at a future meeting.

Scott Smith also discussed Z2 charges and credits that will be settled through the transmission system. When other information becomes available he will report to the group.

Agenda Item 7 – Lunch Lunch

Agenda Item 8 – Roundtable Discussion

Several topics were discussed including:

• Section 4.3.1 of the Credit Policy should be reviewed. It was suggested that this provision should be extended to include cooperatives as well as municipalities which are currently covered by this section.

• Letters of Credit issued by US branches of foreign banks could be subject to country risk in the case of the bankruptcy of a foreign bank. This issue will be watched as it develops.

• SEC Rule 287

• SPP and the Integrated Systems (Attachment 6 – SPP and the Integrated Systems 20150924)

Agenda Item 9 – Other Items and Recap There being no further business, the meeting was adjourned at 2:20 p.m. Respectfully submitted,

Phil McCraw, Secretary

Relationship-Based • Member-Driven • Independence Through Diversity

Evolutionary vs. Revolutionary • Reliability & Economics Inseparable

Southwest Power Pool, Inc. CREDIT PRACTICES WORKING GROUP MEETING

September 24, 2015 SPP Campus – Little Rock, AR

• A G E N D A •

8:30am – 2:00pm

1. Administrative Items ............................................................................................................... Mark Holler

2. Introductions ........................................................................................................................... Mark Holler

3. Stakeholder Prioritization Process (9:00am – 9:30am) ................................................... Annette Holbert

4. ARR/TCR Allocation Process (9:30am – 10:00am) .......................................................... Charles Cates

5. Tariff Changes for TCR Auction Netting (10:00am – 11:00am) ............................................. Scott Smith

6. TCR Reference Prices and Possible Alternatives (11:00am – 11:30am) .............................. Mark Holler

7. Lunch (11:30am – 1:00pm) ................................................................................................ SPP Campus

8. Roundtable Discussion (1:00pm – 2:00pm) ........................................................................... Mark Holler

9. Other Items and Recap(2:00pm – 2:30pm) ............................................................................ Mark Holler

Southwest Power Pool CREDIT PRACTICES WORKING GROUP

August 20, 2015 Teleconference

Minutes

Agenda Item 1 – Call to Order Mark Holler called the meeting to order at 1:32 p.m. The following members were in attendance: Mark Holler (Tenaska); Cassandra Strange (OGE); Malcolm Booker (OMPA); Bill Thompson (AEP); Gina Wilson (ITC); and Ronnie Hall (KCPL). Also in attendance were; Nathan Case (ACES); Christi Nicolay (Macquarie); Matt Robson (SESCO); Bryan Willnerd and Jessica Kasparek (LES); Cassandra Wallace and Matt Holstein (TEA); Jeff Bieker (Sunflower); Seth Cochran (DC Energy); Jill Jones (MEAN); and Scott Smith, Phil McCraw, Jared Barker, Erin Brown and Lisa Caserta (SPP).

Agenda Item 2 – Approval of Minutes from July Meeting

Mark Holler asked if there were changes to the July meeting minutes (Attachment 2 – CPWG Minutes 20150716). Gina Wilson made a motion to accept the minutes and Cassandra Strange seconded. The minutes were unanimously accepted without amendment.

Agenda Item 3 – TCR Exposure Issues Matt Holstein presented various scenarios pertaining to netting TCR positions during an auction (Attachment 3 – SPP TCR Netting Scenarios (TEA and KCPL)). The proposal is to allow the netting of current positively-valued TCR portfolios with bids, offers and ARR self-converts for the same period in annual and monthly auctions. After discussion most members were in favor of this approach. Ronnie Hall will draft tariff language changes and bring those to a smaller sub-group which will meet on September 2 to finalize a proposal that will be brought to the members of the Group at the face to face meeting on September 24.

Agenda Item 4 – IFRS Language Change Update

Scott Smith advised the Group that the language changes had passed the Board and SPP’s legal area was preparing the FERC filing. The filing should be made within the next week and would be effective after FERC approval which was expected in 60 or 90 days after filing.

Agenda Item 5 – September Meeting Agenda Items

Scott Smith advised the Group to send him any items they would like to see on the agenda or any SPP personnel they would like to hear from. The Group will also discuss proposals of changes in reference prices calculations.

Agenda Item 6 – Next Meeting September 24

The next meeting will be a face to face meeting at the SPP offices on September 24.

Agenda Item 7 – Adjournment There being no further business, the meeting was adjourned at 2:55 p.m. Respectfully submitted,

Phil McCraw, Secretary

Stakeholder Prioritization Process

September/October 2015

Definitions

• Revision Request (RR) - a request to make additions, edits, deletions, revisions, or clarifications to the SPP Business Practices, SPP Criteria, SPP Market Protocols, or SPP Open Access Transmission Tariff including any attachments and exhibits to these documents, except for Appendix F of the Market Protocols.

• Enhancement Request - a request for new or changed system functionality that does not require updates to the SPP Market Protocols, SPP Business Practices, SPP Criteria, or SPP Open Access Transmission Tariff.

2

Background

• Stakeholders requested increased transparency and stakeholder input into: – Enhancement request evaluation – Enhancement requests, revision requests, and project

prioritization – Portfolio reporting

• Stakeholder Prioritization Task Force (SPTF) – Defined process, approved by MOPC – Temporary Task Force (development & initial monitoring of

process)

3

Process Summary

4

Portfolio Inputs Processed •Projects, RRs, Enhancements

Portfolio Report

Published

Stakeholders Send

Questions/ Feedback

Quarterly Meeting with Stakeholders

Portfolio Adjustments

Portfolio Published for

MOPC

Breakdown of Quarterly Process • Formalized submission of enhancement requests via

RMS (similar to RR process)

• Initial priority scoring of Revision Requests (RRs) and enhancements using standardized scoring tool – RRs initially scored by Primary Working Group

– Capital projects & enhancements initially scored by SPP staff

• SPP Portfolio Report Published – Projects, RRs, Enhancements, Defects – Score, Estimate, Target implementation date (if known) – SPP.org

• Stakeholders Send Que