Southwest Power Pool, Inc. PROJECT COST WORKING … minutes...overlap between MOD and SCERT information to identify any gaps. Mod is a platform for submitting change to existing models

Antitrust: SPP strictly prohibits use of participation in SPP activities as a forum for engaging in practices or communications that

violate the antitrust laws. Please avoid discussion of topics or behavior that would result in anti-competitive behavior, including but

not limited to, agreements between or among competitors regarding prices, bid and offer practices, availability of service, product

design, terms of sale, division of markets, allocation of customers or any other activity that might unreasonably restrain competition.

Southwest Power Pool, Inc.

PROJECT COST WORKING GROUP

June 5, 2019

AEP Office, 41st Floor

• AGENDA •

8:30 AM – 2:30 PM

1. Administrative Items ..................................................................................................................... (5 min)

a. Call to Order & Introductions ..................................................................... Tom Hestermann

Tom Hestermann called the meeting to order at 8:30 and asked the group for introductions.

b. Anti-trust Language ............................................................................................ John O’Dell

John O’Dell reviewed the anti-trust language with the group.

c. Receipt of Proxies .............................................................................................. John O’Dell

John O’Dell took receipt of proxies:

Teddy Hutchinson for David Insinger (OPPD)

d. Review of Agenda ..................................................................................... Tom Hestermann

2. Review of Past Action Items* .................................................................................. John O’Dell (10 min)

Action item 200-In progress-Agenda Item 12- Description is updated for clarity.

Brian Johnson presented at May, 2019 CAWG on differences between AACE guidelines for cost

estimate accuracy and accuracy required by SPP Business Practice 7060.

3. Consent Agenda (Approval Items)* .................................................................. Tom Hestermann (5 min)

a. Approval of Meeting Minutes – March 4, 2019

Tom Hestermann reviewed the consent agenda with the group.

Motion to approve March 2019 minutes with the following changes was made:

Add Attendance Roster

Update item 11 to reflect Business Practice 7060, not 760

The motion passed unanimously

4. NTC Withdrawal 200420 Pecos Interchange 230/115 kV Transformer* ................... John O’Dell (5 min)

Group reviews posted information. SPS states that no money has been spent.

5. NTC Withdrawal 200234 Renfrow Cap Bank* ........................................................... John O’Dell (5 min)

Group reviews posted information. NTC Issuance date Oct 28 2013.

6. NTC Withdrawal 200437 Heizer 115/69 kV Transformer* ........................................ John O’Dell (5 min)

Group reviews posted information. PCWG requests that NTC Issuance Date and Total

Expenditures to date are included in the slide presentation. NTC issuance date is Feb 8 2017.

Break: 9:09 – 9:20





7. Line - Iatan - Stranger 345 kV Ckt 1 Voltage Conversion (Approval Item)* ....... Brenda Jessop (30 min)

PCWG reviews posted material on this rebuild.

Motion to accept is made and seconded.


8. Quarterly Report Review* (Approval Item) .............................................................. John O’Dell (30 min)

Group reviews posted information. Discussion ensues regarding Total Cost Estimate for > 300

Type in Executive Summary, Total cost and variance cost for ITP10 2012 in Appendix 2

Discussion ensues on why some Baseline estimates are more than the Study estimates.

Group discusses replacing Study estimate with original baseline estimate in Appendix 3. This

change will begin in Q4 2019. PCWG requests changing the order in the table of the estimate

columns. Discussion about Complete and In Service status and the difference between the 2

ensues. John states that we will cover this in more detail later in the day…

A motion to accept with changes as discussed is made and seconded


9. Action Item 195 Review Training Video (Approval Item) ......................................... John O’Dell (30 min)

John would like to push this to later in the day as he is having technical difficulties.

Video is reviewed after Item 13. There were comments regarding the video and audio quality. PCWG

requests this material to be posted as PowerPoint presentation with audio and script included for

each slide.

Break 10:11 – 10:26

10. Action Item 202 – MDSTF Member Availability* ..................................................... John O’Dell (10 min)

John leads the group on this item. Discussion ensues and action item 202 is marked complete.

11. Action Item 198 – BP 7060 Modification for Grandfathered Applicable Projects* (Approval

Item)…............................................................................................................... John O’Dell (30 min)

PCWG reviews posted material. Group modifies language. Discussion ensues on combining all

BP 7060 revisions to a single RR. .

Motion to accept with changes as discussed is made and seconded


Lunch break 11:11 – 11:40





12. Action Item 200 – Discuss Close-Out Requirements* (Approval Item) ................... John O’Dell (30 min)

PCWG reviews posted material. Brenda questions, 2nd item…Do a non-planned upgrade receive

upgrades? Brian answers that yes they do. Intent of revision is not to require final SCERTs for

close-out, but language does not prohibit SPP from requesting a final SCERT if they wish.

Motion to accept as submitted is made and seconded


13. Action Item 204 – Update on Appendix C for BP 7060* (Approval Item) ................ John O’Dell (30 min)

PCWG reviews posted material. There are concerns on how the flow charts are structured. More

discussion again about bundling Agenda items11-13 into a single RR. Tom states we will table

Action item 204 until a future date. Items Agenda items11-12 will now be combined into a single RR.

14. Summary of Action Items .......................................................................................... John O’Dell (5 min)

Updates to minutes from previous meeting

Add Action Item 205 and roster to previous meeting minutes

Revisions to the report

Submit RR for action items 198 and 200

Edits to the charts in action item 204 will be continued in conjunction with page turn review of

Business Practice 7060

Close Action Item 202

15. Develop Agenda for Next Meeting .................................................................... Tom Hestermann (5 min)

Chair requests page turn of Business Practice 7060, but isn’t sure if we will meet next via conference

call or just wait until next face-to-face.

16. Future Meeting Dates and Locations ..................................................................................... All (30 min)

July 2019 meeting will be canceled

a. Discuss alternate locations for PCWG meetings

Denver, Kansas City, and remaining in Dallas were talked about. No one seemed that

interested in moving

Meeting adjourned at 1:05

Upcoming Meetings: July 2, 2019 Net Conference August 7, 2019 Net Conference September 4, 2019 AEP Dallas Office October 2, 2019 Net Conference November 6, 2019 Net Conference December 4, 2019 AEP Dallas Office





January 8, 2020 Net Conference * Background Materials Included

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Boyd Trester (Phone)BEPC

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James Ging (Phone)KPP

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Teddy Hutchinson (Phone)OPPD

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Travis Hill (Phone)NPPD

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Randy Diede (Phone)WAPA

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Angie Anderson (Phone)Sunflower

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Antitrust Statement

This memorandum is to inform you of a new process endorsed by the Oversight Committee on January 29, 2018 requiring that an antitrust notice be provided for all SPP stakeholder meetings

Antitrust: SPP strictly prohibits use of participation in SPP activities as a forum for engaging in practices or communications that violate the antitrust laws. Please avoid discussion of topics or behavior that would result in anti-competitive behavior, including but not limited to, agreements between or among competitors regarding prices, bid and offer practices, availability of service, product design, terms of sale, division of markets, allocation of customers or any other activity that might unreasonably restrain competition.

1


Project Cost Working Group

Pending Action Items Status Report

June 5, 2019, 8:30 AM to 2:30 PM

No Action Item Date

Originated Status Comments

13

As directed by MOPC at the January meeting, review and recommend any changes to the Quarterly Tracking Report process, including timing, data requested, format of data reporting, interaction with other project cost-related initiatives, etc.

February 7, 2012

Ongoing MOPC Action item complete. Ongoing project to identify improvements

195 Research creation of training

materials for new TAGIT-SCERT users

April 4, 2018

In Progress

Agenda Item 9

Staff will incorporate PCWG feedback into training video. Video will be revised upon implementation of action item 178. Staff to create final version of training video to include action item 178.

198

Investigate potential changes to BP 7060 that would designate future upgrades where an NTC is not issued by SPP but are base plan funding through inclusion in a Tariff attachment as “Applicable”.

June 6, 2018

In Progress

Agenda Item 11

Proposed RR draft included in meeting materials. Staff will research establishing baseline where no NTC is issued. Staff will research whether or not SPP can issue NTCs for Integration Projects. Staff proposed language change to Section 8.6 that would include “integrated” projects and not include GI projects. Research whether or not an NTC could be issued in future cases. Concern is that without language requiring NTC for such projects, there is no guarantee that an NTC would be issued. PCWG reviewed and agreed that changing Section 2.2 in BP 7060 would be more efficient than changing Tariff to issue NTCs for these projects.

No Action Item Date

Originated Status Comments

200

Create list of Upgrades with potential to be closed out. Identify outstanding items required for close-out process.

December 5, 2018

In Progress

Agenda Item 12

PCWG would like to defer action on staff recommendation in order to continue to address issues discussed and possible revision to BP 7060. PCWG agreed on language to revise BP 7060 Section 13 to remove final SCERT as a criteria for close out. Staff will research overlap between MOD and SCERT information to identify any gaps. Mod is a platform for submitting change to existing models. There is no data overlap between models and SCERT. Staff sees no issue with proceeding on this revision.

201

Staff to present history of Conceptual, Study, CPE, & NPE bandwidths to PCWG.

December 5, 2018

In Progress

Staff will discuss internally and report back with findings on potential for change.

202

Research availability of current MDSTF members

December 5, 2018

In Progress

Agenda Item

10Complete

Staff will provide additional Update in April, 2019.

203

SPP Staff will advise of Study Cost Estimate windows for 2020 ITP assessment.

March 2019 In

Progress

Rough Estimate from staff was 4-5 months before estimated study cost estimate windows will be available.

204

Research Revision to BP 7060 to clarify NTC-C reevaluation in Appendix C.

March 2019

In Progress

Agenda Item 13

If formal RR is required, draft staff will draft a recommendation. Revision of BP 7060 for Action Items 198, 200, & 204 should be handled in a single RR if possible.Table for inclusion with page turn of BP 7060

205

Create reference materials for ITP and non-ITP processes. Post materials to PCWG home page on SPP.org

March 2019 In

progress See Agenda Item 7 materials of March 2019, slides 8 & 9.

Withdrawal of NTC for Upgrades 51578, 51566, & 50626SPP Staff

6/5/2019

1

Background

2

Business Practice 7060, Section 7.1 states:

• If SPP confirms that an NTC/NTC-C Project is unnecessary, it will inform the TWG, PCWG, MOPC, and BOD of this fact at their next regularly scheduled meeting and request approval by the BOD, as necessary, to withdraw the NTC/NTC-C.

• After the BOD approves the withdrawal of an NTC/NTC-C, SPP will notify the DTO that the NTC/NTC-C has been withdrawn. If the NTC/NTC-C was due to a Service agreement, then the NTC/NTC-C withdrawal shall not need TWG, MOPC, or BOD approval but shall be addressed by SPP staff. SPP staff will work in coordination with the DTO to properly and safely stop all activities on the Project.

SPP NTC 200237 –Withdrawal

3

Transmission Owner: MIDW

Network Upgrade ID: 51578

Network Upgrade Name: Heizer 115/69 kV Ckt 4 Transformer

Network Upgrade Description: Upgrade the 115/69 kV transformer at Heizer (HEIZER T4) to achieve 44.8 MVA

RTO Determined Need Date: 6/1/2021

Baseline Including Escalation: $2,862,839

Current Estimate: $2,663,963

Cost Variance: -7%

Applicable Project: No

Reason for Change: Upgrade identified in SPP-2015-AG2-AFS-3. MIDW requested re-evaluation of this upgrade on 1/28/2019 via RMS. SPP staff determined that the upgrade is no longer required.


4

Transmission Owner: SPS


Network Upgrade Name: XFR - Pecos 230/115 kV Transformer Upgrade

Network Upgrade Description: Upgrade 230/115 kV transformer at Pecos


Baseline Including Escalation: $3,596,726

Current Estimate: $3,681,706

Cost Variance: 3.6%


Reason for Change: Upgrade identified in SPP-2015-AG1-AFS-6. SPS requested re-evaluation of this upgrade on 1/24/2019 via RMS. SPP staff determined that the upgrade is no longer required.


5

Transmission Owner: WFEC


Network Upgrade Name: Renfrow-Sandridge Capacitor 138 kV

Network Upgrade Description: Install new 138 kV 4.8-Mvar capacitor at Renfrow-Sandridge substation


Baseline Including Escalation: $214,548

Current Estimate: $185,004

Cost Variance: -38.6%


Reason for Change: Upgrade identified in DPAs-2012-MAR-151,154,161, JUL-218, SEP-243. WFEC requested re-evaluation of this upgrade on 1/22/2019 via RMS. SPP staff determined that the upgrade is no longer required.

Project Review: Line - Iatan - Stranger 345 kV Ckt 1 Voltage ConversionPCWG 6/5/2019

2

Line - Iatan - Stranger 345 kV Ckt 1 Voltage Conversion

3

INCORRECT MAP. This must be

replaced with CORRECT MAP

Project 30850 Cost History

4

Project Cost Overview

5

Upgrade ID Owner Upgrade Scope

51151 KCPLInstall any terminal upgrades required at Iatan to convert existing 18.2-mile 161 kV line from Iatan to Stranger Creek to 345 kV operation

51283 GMOConvert GMO's portion of the existing 18.2-mile 161 kV line from Iatan to Stranger Creek to 345 kV operation

51284 WRConvert WR's portion of the existing 18.2-mile 161 kV line from Iatan to Stranger Creek to 345 kV operation. Install any necessary terminal equipment at Stranger Creek

Upgrade ID OwnerBaseline Cost

Estimate(Adj. for Inflation)

Latest Variance Var. %

51151 KCPL $3,513,894 $3,005,339 ($508,555) -14.5%

51283 GMO $6,716,567 $6,582,841 ($133,726) -2.0%

51284 WR $30,163,706 $21,977,566 ($8,186,140) -27.1%

Total $40,394,167 $31,565,746 ($8,828,421) -21.9%

Project In-ServiceDate

6/1/2018

51151 - Iatan 345 kV Voltage Conversion

6

Future Projection (Confidence Level)

Low<50%

Medium50-80%

High>80%

Estimate the probability that final cost will be within +/- 20% of updated cost estimate.

x

Upgrade Cost Estimates

Baseline Cost Estimate ($) $3,513,894

Updated Cost Estimate from Quarterly Update ($) $3,005,339

Variance Amount (Updated less Baseline) ($) ($508,555)

51151 Major Factors Contributing to Variance Variance

Engineering Labor

($124,597)

Construction Labor

Replace 3 KCPL double circuit structures due to line terminal location move to south.

($379,454)

Material $652,542

Escalation ($250,894)

AFUDC ($68,152)Contingency ($338,000)

Total ($508,555)

51283 Iatan - Stranger Creek 345 kV Ckt 1 Voltage Conversion (GMO)

7


Low<50%

Medium50-80%

High>80%

Estimate the probability that final cost will be within +/-20% of updated cost estimate.

x

51283 Major Factors Contributing to Variance VarianceEngineering

Labor$173,330

Construction Labor

$719,042

Right-of-Way ($112,851)

Material $175,286

Escalation ($479,567)AFUDC ($101,966)

Contingency ($507,000)Total ($133,726)


Baseline Cost Estimate ($) $6,716,567 Updated Cost Estimate from Quarterly Update ($) $6,582,841 Variance Amount (Updated less Baseline) ($) ($133,726)

51284 Iatan - Stranger Creek 345 kV Ckt 1 Voltage Conversion (WR)

8


Low<50%

Medium50-80%

High>80%

Estimate the probability that final cost will be within +/- 20% of updated cost estimate.

x

51284 Major Factors Contributing to Variance Variance

Engineering LaborRequired additional line engineering for tire land fill that was close to centerline.

$272,548

Construction LaborObtained favorable fixed firm price contract for line work and 2, 345kV breakers were replaced prior to project due to failures reducing labor costs.

($3,727,212)

Right-of-WayWas able to use existing ROW; only required to purchase additional footage on both sides.

($1,183,582)

MaterialBreakers were replaced by maintenance due to failure prior to project construction.

($123,923)

Escalation ($2,153,706)

AFUDCProject was less than originally planned and done in a shorter window, therefore, reducing the AFUDC carrying costs.

($1,270,265)

ContingencyTotal ($8,186,140)


Baseline Cost Estimate ($) $30,163,706

Updated Cost Estimate from Quarterly Update ($) $21,977,566

Variance Amount (Updated less Baseline) ($) ($8,186,140)

Application of BP 7060The PCWG will provide recommendations to the MOPC and BOD regarding any Applicable Project whose cost estimate exceeded the +/-20% bandwidth of the established baseline cost estimate. Recommended action(s) may include any of the following:

• Accept the cost estimate deviation as reasonable and acceptable and reestablish the baseline used to evaluate future cost estimate deviations.

• Identify all or a portion of the costs related to the variances and recommend any changes to the NTC that would reduce the cost or avoid the issues that may be causing the increase.

• Issue an NTC Suspension on the project while SPP restudies the project to determine appropriate changes to the NTC, possible withdrawal of the NTC or whether an alternative project should replace the project.

9

PCWG QUARTERLY

REPORT June 5, 2019


REVISION HISTORY

DATE OR

VERSION NUMBER AUTHOR

CHANGE

DESCRIPTION COMMENTS

06/05/2019 Staff Initial Draft

06/06/2019 Staff Revision 1 Revised as discussed at PCWG

meeting on 6/5/2019


CONTENTS

Revision History ......................................................................................................................................................................... i

Executive Summary ................................................................................................................................................................ 1

Background ................................................................................................................................................................................ 2

Review Process ......................................................................................................................................................................... 3

Business Practice 7060 ........................................................................................................................................................................... 3

Process Changes ......................................................................................................................................................................................... 3

Projects Outside of Precision Bandwidth (+/-20%) .................................................................................................................. 4

Projects Currently +/- 10% of Baseline Estimate ....................................................................................................................... 5

Observed Trends ...................................................................................................................................................................... 6

Minimum Design Standards Task Force ........................................................................................................................ 7

Recommendations................................................................................................................................................................... 8

Appendix 1 ................................................................................................................................................................................. 9

Appendix 2 ............................................................................................................................................................................... 10

Appendix 3 ............................................................................................................................................................................... 11

Appendix 4 ............................................................................................................................................................................... 14


PCWG Quarterly Report 1

EXECUTIVE SUMMARY

There are fifty-two (52) Applicable Projects and four (4) Projects that are not Applicable included in

this report. Of the fifty-two (52) Applicable Projects, fifteen (15) active Applicable Projects1 are 300 kV

and above and thirty-seven (37) additional Applicable Projects are greater than 100 kV but less than

300 kV. These Projects are subject to review by the Project Cost Working Group (PCWG). Four (4)

Projects in this report do not meet the criteria to be considered Applicable Projects, but are tracked

since they are specifically designated for cost allocation under Attachment J, Section III.A.2 of the SPP

Open Access Transmission Tariff (OATT) and have cost estimates greater than $20 million. Of the

Applicable Projects in Appendix 1, one (1) reported an updated cost estimate that is outside the

established precision bandwidth during this quarter.

The list of all active Projects subject to PCWG review is included in Appendix 1 to this report. Appendix

2 summarizes all reported Projects based on source study.

Table 1 below summarizes the cost estimates of active Applicable Projects in Appendix 1 with

established baseline estimates2. Table 2 below summarizes items not considered to be Applicable

Projects in Appendix 1.

Type No. of

Projects

Total Baseline Cost Estimate Amount (adj. for inflation)

Total Cost Estimate

Variance Var. %

> 300 15 $2,001,618,805

$1,909,425,197 ($92,193,608)

-4.6%

100 - 300

37 $1,422,401,632 $1,324,252,732 ($98,148,900) -6.9%

Total 52 $3,424,020,438 ($3,233,677,93)

($190,342,508)

-5.6%

Table 1: Active Applicable Project Cost Estimate Summary

Type No. of

Projects

Total Baseline Cost Estimate Amount (adj.

for inflation)

Total Cost Estimate

Variance Var. %

> 300 3 $365,184,438 $208,843,318 ($156,341,119) -42.8% 100 - 300

1 $42,993,512 $38,000,000 ($4,993,512) -11.6%

Total 4 $408,177,950 $246,843,318 ($161,334,631) -39.5% Table 2: Non-Applicable Project Cost Estimate Summary

1 Applicable Projects are defined in Business Practice 7060 as those that have an estimated cost greater than $20 million and a nominal operating voltage greater than 100 kV which SPP has authority to direct. 2 All baseline cost estimate values in this report are adjusted for inflation when applicable. For projects that have not had updates to the baseline cost estimate, variance percentages may indicate a negative variance.



BACKGROUND

The PCWG was established to create a group with stakeholder input, oversight, and accountability that

can provide a transparent review of transmission cost variances. To ensure cost estimate variances are

addressed in a timely manner, the PCWG will evaluate projects exceeding allowable variance levels on a

monthly basis.

As a part of the project estimate review, the PCWG will provide recommendations to the Markets and

Operations Policy Committee (MOPC) and Regional State Committee (RSC) for review and to the Board

of Directors (Board) for approval. On a quarterly basis, the PCWG will provide a report of their findings

and comments to Stakeholders.

This report serves as the PCWG’s recommendation to the MOPC, RSC, and Board and the report to

Stakeholders.

The PCWG members are listed below:

Tom Hestermann, Sunflower, TO, Chair Brian Johnson, AEP, TO, Vice-Chair Scott Brunnert, OG&E, TO Randy Diede, WAPA, TO James Ging, KPP, TU Jamie Hajek NWE, TU Travis Hill, NPPD, TO David Insinger, OPPD, TO Brenda Jessop, KCP&L and Westar, Evergy Companies, TO Jonah Martin, Tri-State G&T, TU Kenny Munsell, SPS, TO David Sonntag, WFEC, TO Boyd Trester, Basin Electric, TO Shawnee Claiborn-Pinto, Public Utility Commission of Texas (CAWG Liaison) John O’Dell, SPP Staff Secretary



REVIEW PROCESS

Cost updates were requested from Designated Transmission Owners (DTOs) according to the current

Quarterly Project Tracking Schedule shown in Appendix 4. This information was compiled by SPP staff

and a report was prepared for review by the PCWG at its regular meeting.

BUSINESS PRACTICE 7060 The PCWG reviews projects in accordance with Business Practice No. 7060, which establishes

applicable precision bandwidths for construction projects.

This report covers all Applicable Projects as defined in Business Practice No. 7060 and subject to

update during the current quarterly project tracking update. The list of active Applicable Projects is included in Appendix 1 to this report.

There are fifty-two (52) Applicable Projects and four (4) Projects that are not Applicable included in

this report. Of the fifty-two (52) Applicable Projects, fifteen (15) active Applicable Projects3 are 300 kV

and above and thirty-seven (37) additional Applicable Projects are greater than 100 kV but less than

300 kV. These Projects are subject to review by the Project Cost Working Group (PCWG). Four (4)

Projects in this report do not meet the criteria to be considered Applicable Projects, but are tracked

since they are specifically designated for cost allocation under Attachment J, Section III.A.2 of the SPP

Open Access Transmission Tariff (OATT) and have cost estimates greater than $20 million. Of the

Applicable Projects in Appendix 1, one (1) reported an updated cost estimate that is outside the

established precision bandwidth during this quarter.

PROCESS CHANGES During its October 2013 meeting, the MOPC approved a recommendation from the PCWG to move all

projects applicable to Business Practice No. 7050 to Business Practice No. 7060. Previously, Business

Practice 7050 applied to all Projects issued NTCs prior to January 1, 2012 (Legacy Projects). The

recommendation stipulated that baseline cost estimates for all Legacy Projects would be established as

the values listed in project tracking as of January 31, 2014, in coordination with the Quarterly Project

Tracking Schedule for quarter 2 of 2014. The recommendation directed DTOs to complete and submit

cost estimates using Standardized Cost Estimate Reporting Templates for Legacy Projects only if

project cost estimates increase 10% or greater over the baseline amount provided as of January 31,

2014.

The modifications to Business Practice 7060 that were required to implement the recommendation

were approved by the MOPC in January 2014. The changes resulted in the retirement of Business

Practice 7050.

There are fifteen (15) Applicable Projects that were moved from the purview of Business Practice 7050

to Business Practice 7060, four (4) of which are still active and included in Appendix 1.

3 Applicable Projects are defined in Business Practice 7060 as those that have an estimated cost greater than $20 million and a nominal operating voltage greater than 100 kV which SPP has authority to direct.



PROJECTS OUTSIDE OF PRECISION BANDWIDTH (+/-20%) Of the Applicable Projects listed in Appendix 1, one (1) had updated cost estimates that were outside

the established precision bandwidth during this quarter.

Line - Iatan - Stranger 345 kV Ckt 1 Voltage Conversion SPP identified this Project as part of the Integrated Transmission Planning 10-Year ("ITP10") Assessment. On January 27, 2015, the SPP Board of Directors approved the Network Upgrade(s) listed below to be constructed per results 2015 ITP10. On February 25, 2015, SPP Issued Notification to Construct (NTC) 200328 to Kansas City Power and Light Company (KCPL). KCPL accepted NTC 200328 on May 18, 2015 and provided a cost estimate of $3,263,000 for their portion of the Project. On February 25, 2015, SPP Issued Notification to Construct (NTC) 200337 to Kansas City Power & Light Company, Greater Missouri Operations (KCPL GMO). KCPL GMO accepted NTC 200337 on May 18, 2015 and provided a cost estimate of $6,237,000 for their portion of the Project. On February 25, 2015, SPP Issued Notification to Construct (NTC) 200338 to Westar Energy, Inc. Westar accepted NTC 200338 on May 22, 2015 and provided a cost estimate of $28,010,000. At the time of issuance of NTCs 200328, 200337, and 200338, SPP estimated project costs totaled $15,726,289. Upon acceptance of NTCs above, the DTOs submitted cost estimates totaling $37,510,000. Line - Iatan - Stranger 345 kV Ckt 1 Voltage Conversion became an Applicable Project pursuant Section 2.2 of Business Practice 7060 at that time. On July 28, 2015, SPP Board of Directors approved suspension of activities and future expenditures related to NTCs 200327, 200337, and 200338. This decision was based on Section 6.1 of Business Practice 7060 to allow re-evaluation the project due to study cost estimates used in the 2015 ITP10 ($15.7 million) increasing 133% to ($37.5 million) after NTC issuance. In February, 2016, NTC for these upgrades was reinstated. Between May 1, 2019 and May 13, 2019, the following cost estimate updates were entered:

KCPL Upgrade ID 51151 - $1,885,731 KCPL GMO Upgrade ID 51283 - $7,688,424 Westar Upgrade ID 51284 - $21,977,566

Total cost for the Line - Iatan - Stranger 345 kV Ckt 1 Voltage Conversion project is $31,551,721, which

is a -21.9% variance to the escalated baseline amount.

Evergy (KCPL, GMO and Westar) noted the following reasons for cost Decreases:

Line Sub-Total - Obtained favorable construction contract and conversion of ROW was less

than if being built on new route

Station Sub-Total - Construction and Materials were significantly less than estimated as two

345kV breakers were replaced by Maintenance prior to Substation construction due to

failures

AFUDC - Project costs were less than originally planned and completed in a shorter window,

reducing AFUDC This project went into service on June 1, 2018.



PROJECTS CURRENTLY +/- 10% OF BASELINE ESTIMATE Projects listed in Appendix 3 are within Business Practice 7060’s bandwidth of +/-20% but are over the

+/-10% threshold developed by the PCWG to raise attentiveness to the cost estimates related to these

projects. There are twenty-three (23) projects in the list this quarter.



OBSERVED TRENDS

The PCWG also maintains the Study Estimate Design Guide (SEDG). The PCWG will notify the MOPC if a

trend is developing in cost estimates deviating from the SEDG. The MOPC is responsible for

determining if a review of the SEDG is required. However, this does not preclude the PCWG from

suggesting to the MOPC any other changes to the SEDG.

The PCWG has not observed any adverse trends in the current quarter to report to the MOPC.



MINIMUM DESIGN STANDARDS TASK FORCE

At its April 8, 2014 meeting, the PCWG discussed the role of the SEDG in the Transmission Owner

Selection Process (TOSP) and further discussed how design standards would be applied for

transmission construction across the diverse group of potential builders in the SPP footprint. The group

approved a recommendation to be made to the Strategic Planning Committee Task Force for Order

1000 (SPCTF) to consider implementing minimum design standards for transmission construction

within SPP. The recommendation further stated the SEDG should be considered as a starting point for

the minimum design standards.

On May 9, 2014, the SPCTF unanimously endorsed a motion recommending the implementation of

minimum design standards for SPP transmission construction. The SPCTF asked the PCWG in

coordination with the Transmission Working Group (TWG) to further enhance the SEDG to be used as

the minimum design standards guidebook. The SPCTF requested the work be completed by the October

2014 quarterly meetings of the MOPC, RSC, and Board.

The PCWG formed a task force to complete the work of developing the minimum design standards

guidebook at its May 13, 2014 meeting.

The MDSTF completed the first version of the Minimum Transmission Design Standards for

Competitive Upgrades (MDS) in November 2014 and the PCWG approved an edited version at its

December 2014 meeting. The MOPC approved the MDS unanimously at its January 2015 meeting.

The MDSTF presented the final draft of version 2 of the MDS to the PCWG on October 5, 2016 and it was

approved by a unanimous vote. The final draft of version 2 of the MDS was approved by the MOPC at

the January 2017 meeting.

The PCWG will maintain the MDS going forward.



RECOMMENDATIONS

As described in Business Practice No. 7060, Section 11, the PCWG will provide recommendations to the

MOPC and Board regarding any Applicable Project whose cost estimate exceeds the +/-20% bandwidth

of the established baseline cost estimate. Recommended action(s) may include any of the following:

i. Accept the cost estimate deviation as reasonable and acceptable and reset the baseline used to evaluate future cost estimate deviations.

ii. Identify all or a portion of the costs related to the variances and recommend any changes to the NTC that would reduce the cost or avoid the issues that may be causing the increase.

iii. Suspend all future expenditures on the project while SPP restudies the project to determine appropriate changes to the NTC, possible withdrawal of the NTC, or whether an alternative project should replace the project.

The Board will make the final determination on whether to accept the PCWG recommendation(s) or to

choose an alternative action.

Of the Applicable Projects presented in Appendix 1, one (1) reported updated cost estimates that were

outside the established precision bandwidth during this quarter.

Line - Iatan - Stranger 345 kV Ckt 1 Voltage Conversion PCWG recommends that the MOPC and Board accept the cost estimate deviation for Line - Iatan -

Stranger 345 kV Ckt 1 Voltage Conversion as reasonable and acceptable and reset the baseline used to

evaluate future cost estimate deviations.



APPENDIX 1

{See accompanying list of active Applicable Projects}



APPENDIX 2

Active Projects Summary by Source Study

Source Study No. of

Projects Total Study

Estimate

Total Baseline Estimate With

Escalation

Total Latest Cost

Variance Var. %

2012 ITP10 4 $774,735,922 $814,390,434 $802,849,274 ($11,541,160) -1.4%

2012 ITPNT 1 $9,132,270 $38,743,378 $38,607,163 ($136,215) -0.4%

2013 ITPNT 6 $232,482,551 $243,001,377 $212,796,439 ($30,204,938) -12.4%

2014 ITPNT 7 $331,564,915 $354,439,566 $332,058,251 ($22,381,315) -6.3%

2015 ITP10 1 $15,726,289 $40,394,167 $31,551,721 ($8,842,446) -21.9%

2015 ITPNT 4 $116,513,757 $144,182,784 $135,295,733 ($8,887,051) -6.2%

2016 ITPNT 5 $151,435,957 $155,466,869 $156,472,108 $1,005,239 0.6%

2016 ITPNT/HPILS

1 $133,612,272 $143,787,186 $128,605,777 ($15,181,409) -10.6%

2017 ITPNT 1 $21,780,000 $22,883,663 $21,781,000 ($1,102,663) -4.8%

Ag Studies 1 $11,000,000 $25,635,637 $22,598,424 ($3,037,213) -11.8%

DPA Studies 8 $375,563,007 $407,015,405 $401,586,736 ($5,428,669) -1.3%

HPILS 10 $416,425,485 $503,484,001 $454,474,823 ($49,009,178) -9.7%

IS Integration Study4

4 $383,400,000 $408,177,950 $246,843,318 ($161,334,631) -39.5%

Priority Projects 3 $535,191,250 $530,595,971 $495,000,480 ($35,595,491) -6.7%

Grand Total 56 $3,508,563,676 $3,832,198,387 $3,480,521,248 ($351,677,139) -9.2%

4 Projects associated with this study do not meet the criteria to be considered Applicable Projects, but are tracked since

they are specifically designated for cost allocation under Attachment J, Section III.A.2 of the SPP Open Access

Transmission Tariff (OATT) and have cost estimates greater than $20 million.



APPENDIX 3

Projects Currently within +/- 20% but outside of +/- 10% Baseline Estimate

PID Project Name Project Owner

Voltage Class (kV)

Status Projected In-Service

Date

Study Estimate

Latest Cost Escalated Baseline Estimate

Variance Latest to Esc.

Baseline

Variance Pct. To

Esc. Baseline

772 Line - Carlisle -

Wolfforth 230 kV SPS

100 - 300

IN SERVICE 3/27/2018 $32,790,576 $29,400,000 $36,690,708 ($7,290,708) -19.9%

805 Multi - Bowers -

Howard 115 kV Ckt 1 SPS

100 - 300

COMPLETE 2/28/2016 $25,557,920 $42,796,163 $36,480,174 $6,315,989 17.3%

939 Line - Nebraska City - Mullin Creek 345 kV

(OPPD) OPPD > 300 COMPLETE 12/15/2016 $19,500,000 $59,170,665 $72,120,820 ($12,950,155) -18.0%

30364

Multi - Woodward District EHV - Tatonga

- Matthewson - Cimarron 345 kV

OGE > 300 COMPLETE 2/15/2018 $206,966,741 $159,885,990 $198,746,648 ($38,860,658) -19.6%

30375 Multi - Gentleman - Cherry Co. - Holt Co.

345 kV NPPD > 300 DELAYED 5/1/2021 $287,900,000 $408,565,094 $363,420,807 $45,144,287 12.4%

30376 Multi - Hobbs -

Yoakum 345/230 kV Ckt 1

SPS > 300 ON

SCHEDULE 6/1/2020 $69,907,711 $101,035,365 $120,424,792 ($19,389,427) -16.1%

30469

Multi - Kilgore Switch - South Portales -

Market St. - Portales 115 kV

SPS 100 - 300

COMPLETE 7/11/2018 $24,951,218 $24,573,313 $30,581,497 ($6,008,184) -19.6%

30484

Multi - Viola 345/138kV

Transformer and 138 kV Lines to Clearwater

and Gill

WR 100 - 300

IN SERVICE 11/16/2018 $78,162,713 $56,429,542 $68,743,648 ($12,314,106) -17.9%

30496

Multi - Bobcat Canyon 345/115 kV and Bobcat Canyon -

Scottsbluff 115 kV

BEPC/NPPD 100 - 300

COMPLETE 10/26/2017 $35,000,000 $33,458,264 $37,622,786 ($4,164,522) -11.1%




Voltage Class (kV)


Date

Study Estimate



Baseline

Variance Pct. To

Esc. Baseline

30501 Multi - Renfrow -

Medford Tap - Chikaskia 138 kV

OGE/WFEC 100 - 300

COMPLETE 4/1/2016 $31,892,184 $21,832,236 $25,334,584 ($3,502,348) -13.8%

30560 Line - Sumner County -

Viola 138 kV Ckt 1 WR

100 - 300

DELAYED 6/1/2020 $51,513,963 $48,513,963 $58,283,321 ($9,769,358) -16.8%

30569 Multi - Potash Junction

- Road Runner 230/115 kV Ckt 1

SPS 100 - 300

COMPLETE 10/27/2015 $49,596,223 $62,043,951 $55,015,336 $7,028,615 12.8%

30619 Line - Darlington -

Roman Nose 138 kV Ckt 1

AEP/OGE 100 - 300

COMPLETE 6/29/2017 $26,416,440 $23,135,990 $25,892,128 ($2,756,138) -10.6%

30638 Multi - Kiowa - North Loving - China Draw

345/115 kV Ckt 1 SPS > 300 COMPLETE 5/30/2018 $62,619,690 $65,908,291 $74,636,957 ($8,728,666) -11.7%

30639

Multi - Potash Junction - Road Runner 345 kV

Conv. and Transformers at Kiowa and Road

Runner

SPS > 300 COMPLETE 4/27/2018 $21,560,659 $21,309,725 $25,585,269 ($4,275,544) -16.7%

30695 Multi - Livingston

Ridge - Sage Brush - Cardinal 115 kV

SPS 100 - 300

COMPLETE 11/30/2017 $26,257,165 $28,127,695 $33,671,134 ($5,543,439) -16.5%

30717 Line - Hopi Sub - North

Loving - China Draw 115 kV Ckt 1

SPS 100 - 300

COMPLETE 5/25/2015 $22,240,813 $21,154,466 $23,845,709 ($2,691,243) -11.3%

30732

Multi - Anthony - Bluff City - Caldwell -

Mayfield - Milan - Viola 138 kV Ckt 1

MKEC/WR 100 - 300

IN SERVICE 5/31/2018 $43,265,193 $41,787,223 $51,554,838 ($9,767,615) -18.9%

30850 Line - Iatan - Stranger 345 kV Ckt 1 Voltage

Conversion GMO/WR

100 - 300

COMPLETE 6/1/2018 $15,726,289 $32,574,155 $40,394,167 ($7,820,012) -19.4%




Voltage Class (kV)


Date

Study Estimate



Baseline

Variance Pct. To

Esc. Baseline

30914 Multi - Road Runner 115 kV Loop Rebuild

SPS 100 - 300

DELAYED 4/15/2019 $22,043,187 $18,815,589 $22,216,865 ($3,301,276) -14.9%

31032

Multi - Plaza 115 kV Substation and

Blaisdell - Plaza 115 kV New Line

BEPC 100 - 300

COMPLETE 2/1/2018 $19,042,308 $19,042,308 $21,225,300 ($2,182,992) -10.3%

31042

Multi - DeGrasse - Knob Hill 138 kV New

Line and DeGrasse 345/138 kV Transformer

OGE/WFEC 100 - 300

DELAYED 7/1/2020 $30,500,000 $34,458,334 $30,265,401 $4,192,933 13.9%

31068 Multi - Tuco - Yoakum

345/230 kV Ckt 1 SPS > 300 DELAYED 6/1/2020 $133,612,272 $128,605,777 $143,787,186 ($15,181,409) -10.6%



APPENDIX 4

Quarter 3 2019 MAY Format Legend S M T W T F S

1 TOs submit updates 1 2 3 4

15 SPP staff notifies TOs & PCWG of cost estimates outside precision bandwidth of +/- 20%

5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

17 TOs provide cost increase justifications

26 27 28 29 30 31

29 SPP staff prepares cost increase data for PCWG background Materials

31 SPP Staff prepares and submits Quarterly Project Tracking Report for MOPC

JUNE S M T W T F S

1

6 PCWG Face to Face 2 3 4 5 6 7 8

17 MOPC 9 10 11 12 13 14 15

30 RSC & BOD 16 17 18 19 20 21 22

23 24 25 26 27 28 29

30

JULY S M T W T F S

1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30 31



Quarter 4 2019 AUGUST Format Legend S M T W T F S

1 TOs submit updates 1 2 3

13 SPP staff notifies TOs & PCWG of cost estimates outside precision bandwidth of +/- 20%

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

15 TOs provide cost increase justifications

25 26 27 28 29 30 31

27 SPP staff prepares cost increase data for PCWG background Materials

29 SPP Staff prepares and submits Quarterly Project Tracking Report for MOPC

SEPTEMBER S M T W T F S

1 2 3 4 5 6 7

4 PCWG Face to Face 8 9 10 11 12 13 14

15 MOPC 15 16 17 18 19 20 21

28 RSC & BOD 22 23 24 25 26 27 28

29 30 31

OCTOBER

S M T W T F S

1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30 31

PID Project NameProject

OwnerSource Study

Voltage

Class

(kV)

StatusIn-

ServiceComplete

Projected In-

Service DateStudy Estimate Latest Cost Baseline Estimate

Variance Latest

to Baseline

Variance

Pct. to

Baseline

Baseline

Estimate

Year

Escalated Baseline

Estimate

Variance Latest

to Esc. Baseline

Variance Pct.

To Esc.

Baseline

Comment

461 Line - Curry - Bailey 115kV SPS 2012 ITPNT 100 - 300 COMPLETE Y Y 9/29/2016 $9,132,270 $38,607,163 $35,099,588 $3,507,575 10.0% 2012 $38,743,378 ($136,215) -0.4%

772 Line - Carlisle - Wolfforth 230 kV SPS 2013 ITPNT 100 - 300 COMPLETE Y Y 3/27/2018 $32,790,576 $29,400,000 $32,429,240 ($3,029,240) -9.3% 2013 $36,690,708 ($7,290,708) -19.9%

805 Multi - Bowers - Howard 115 kV Ckt 1 SPS DPA Studies 100 - 300 COMPLETE Y Y 2/28/2016 $25,557,920 $38,922,978 $33,951,078 $4,971,900 14.6% 2013 $36,480,174 $2,442,804 6.7%

936 Line - Valliant - NW Texarkana 345 kV AEP Priority Projects > 300 COMPLETE Y Y 12/16/2016 $131,451,250 $185,751,250 $185,751,250 $0 0.0% 2016 $185,751,250 $0 0.0%

938 Multi - Nebraska City - Mullin Creek - Sibley 345 kV (GMO) TSMO Priority Projects > 300 COMPLETE Y Y 12/15/2016 $384,240,000 $250,078,565 $266,072,098 ($15,993,533) -6.0% 2015 $272,723,900 ($22,645,335) -8.3%

939 Line - Nebraska City - Mullin Creek 345 kV (OPPD) OPPD Priority Projects > 300 COMPLETE Y Y 12/15/2016 $19,500,000 $59,170,665 $70,361,776 ($11,191,111) -15.9% 2015 $72,120,820 ($12,950,155) -18.0%

30160 XFR - Ft Smith 500/161 kV Ckt 3 OGE Ag Studies 100 - 300 COMPLETE Y Y 11/10/2017 $11,000,000 $22,598,424 $25,635,637 ($3,037,213) -11.9% 2017 $25,635,637 ($3,037,213) -11.8%

30361 Multi - Chisholm - Gracemont 345 kV AEP/OGE 2012 ITP10 > 300 COMPLETE Y Y 3/1/2018 $175,061,392 $121,366,069 $127,678,129 ($6,312,060) -4.9% 2017 $128,774,467 ($7,408,398) -5.8%

30364Multi - Woodward District EHV - Tatonga - Matthewson -

Cimarron 345 kVOGE 2012 ITP10 > 300 COMPLETE Y Y 2/15/2018 $206,966,741 $159,875,026 $178,212,300 ($18,337,274) -10.3% 2013 $198,746,648 ($38,871,622) -19.6%

30367 Multi - Elm Creek - Summit 345 kV ITCGP/WR 2012 ITP10 > 300 COMPLETE Y Y 3/1/2018 $104,807,789 $113,043,085 $113,049,038 ($5,953) 0.0% 2013 $123,448,513 ($10,405,428) -8.4%

30374 Multi - Hoskins - Neligh 345 kV NPPD 2014 ITPNT > 300 COMPLETE Y Y 6/8/2018 $98,697,720 $82,139,513 $81,544,517 $594,996 0.7% 2017 $80,053,595 $2,085,918 2.6%

30375 Multi - Gentleman - Cherry Co. - Holt Co. 345 kV NPPD 2012 ITP10 > 300 DELAYED N N 5/1/2021 $287,900,000 $408,565,094 $313,376,623 $95,188,471 30.4% 2013 $363,420,807 $45,144,287 12.4%

30376 Multi - Hobbs - Yoakum 345/230 kV Ckt 1 SPS HPILS > 300 ON SCHEDULE N N 6/1/2020 $69,907,711 $101,035,365 $106,833,199 ($5,797,834) -5.4% 2014 $120,424,792 ($19,389,427) -16.1%

30437Multi - Geary County 345/115 kV and Geary - Chapman 115

kVWR 2014 ITPNT 100 - 300 IN SERVICE Y N 12/13/2018 $64,658,982 $67,493,875 $64,658,982 $2,834,893 4.4% 2014 $71,371,418 ($3,877,543) -5.4%

30449 Line - Rock Hill - Springridge Pan-Harr REC 138 kV Ckt 1 AEP 2013 ITPNT 100 - 300 COMPLETE Y Y 9/19/2016 $25,060,655 $25,060,655 $25,060,655 $0 0.0% 2013 $26,987,585 ($1,926,929) -7.1%

30451 Line - Atoka - Eagle Creek 115 kV Ckt 1 SPS 2013 ITPNT 100 - 300 DELAYED N N 12/31/2018 $19,639,618 $22,500,000 $20,808,304 $1,691,696 8.1% 2013 $24,131,253 ($1,631,253) -6.8%

30469Multi - Kilgore Switch - South Portales - Market St. - Portales

115 kVSPS 2013 ITPNT 100 - 300 COMPLETE Y Y 7/11/2018 $24,951,218 $24,573,313 $27,029,587 ($2,456,274) -9.1% 2013 $30,581,497 ($6,008,184) -19.6%

30484Multi - Viola 345/138kV Transformer and 138 kV Lines to

Clearwater and GillWR 2013 ITPNT 100 - 300 IN SERVICE Y N 11/16/2018 $78,162,713 $56,198,001 $67,066,974 ($10,868,974) -16.2% 2017 $68,743,648 ($12,545,648) -18.2%

30488 Multi - Renfrow - Wakita - Noel Switch 138 kV WFEC DPA Studies 100 - 300 COMPLETE Y Y 4/30/2014 $28,722,401 $31,303,754 $30,722,401 $581,353 1.9% 2013 $30,772,401 $531,353 1.7%

30495 Sub - Messick 500/230 kV AEP 2013 ITPNT 100 - 300 COMPLETE Y Y 4/29/2016 $51,877,771 $55,064,470 $51,877,771 $3,186,699 6.1% 2013 $55,866,685 ($802,215) -1.4%

30496Multi - Bobcat Canyon 345/115 kV and Bobcat Canyon -

Scottsbluff 115 kVBEPC/NPPD 2014 ITPNT 100 - 300 COMPLETE Y Y 10/26/2017 $35,000,000 $33,461,003 $36,705,157 ($3,244,154) -8.8% 2016 $37,622,786 ($4,161,783) -11.1%

30501 Multi - Renfrow - Medford Tap - Chikaskia 138 kV OGE/WFEC DPA Studies 100 - 300 COMPLETE Y Y 4/1/2016 $31,892,184 $21,832,236 $25,246,084 ($3,413,848) -13.5% 2015 $25,007,557 ($3,175,321) -12.7%

30560 Line - Sumner County - Viola 138 kV Ckt 1 WR 2014 ITPNT 100 - 300 DELAYED N N 6/1/2020 $51,513,963 $48,513,963 $51,513,963 ($3,000,000) -5.8% 2014 $58,283,321 ($9,769,358) -16.8%

30569 Multi - Potash Junction - Road Runner 230/115 kV Ckt 1 SPS HPILS 100 - 300 COMPLETE Y Y 10/27/2015 $49,596,223 $59,848,300 $53,673,499 $6,174,801 11.5% 2014 $55,015,336 $4,832,964 8.8%

30578 Multi - Bailey Co. - Lamb Co. 115 kV SPS 2014 ITPNT 100 - 300 DELAYED N N 3/15/2022 $28,122,150 $52,657,687 $49,643,005 $3,014,682 6.1% 2016 $55,992,727 ($3,335,040) -6.0%

30581Line - Park Lane - Ahloso - Harden City - Frisco - Lula 69/138

kV Ckt 1 OGE 2014 ITPNT 100 - 300 COMPLETE Y Y 9/1/2016 $20,998,500 $23,661,107 $21,492,965 $2,168,142 10.1% 2014 $22,581,046 $1,080,061 4.8%

30588 Multi - Fremont - S991 E 161/69 kV Ckt 1 OPPD 2015 ITPNT 100 - 300 COMPLETE Y Y 4/30/2019 $35,091,946 $27,497,485 $27,497,485 $0 0.0% 2018 $28,184,922 ($687,437) -2.4%

30596 Multi - Broken Bow Wind - Ord 115 kV Ckt 1 NPPD 2014 ITPNT 100 - 300 COMPLETE Y Y 6/1/2018 $32,573,600 $24,131,103 $28,534,673 ($4,403,570) -15.4% 2018 $28,534,673 ($4,403,570) -15.4%

30619 Line - Darlington - Roman Nose 138 kV Ckt 1 AEP/OGE HPILS 100 - 300 COMPLETE Y Y 6/29/2017 $26,416,440 $23,135,990 $24,353,198 ($1,217,208) -5.0% 2014 $25,892,128 ($2,756,138) -10.6%

30622Multi - Knipe - SW Station - Linwood & Warwick Tap 138 kV

Ckt 1OGE HPILS 100 - 300 COMPLETE Y Y 5/11/2018 $28,572,000 $31,794,580 $30,884,580 $910,000 3.0% 2014 $34,090,798 ($2,296,218) -6.7%

30637 Multi - Hobbs - Kiowa 345 kV Ckt 1 SPS HPILS > 300 COMPLETE Y Y 3/24/2018 $65,989,591 $59,199,211 $58,767,041 $432,170 0.7% 2018 $58,767,041 $432,170 0.7%

30638 Multi - Kiowa - North Loving - China Draw 345/115 kV Ckt 1 SPS HPILS > 300 COMPLETE Y Y 5/30/2018 $62,619,690 $65,908,291 $67,617,399 ($1,709,108) -2.5% 2014 $74,636,957 ($8,728,666) -11.7%

30639Multi - Potash Junction - Road Runner 345 kV Conv. and

Transformers at Kiowa and Road RunnerSPS HPILS > 300 COMPLETE Y Y 4/27/2018 $21,560,659 $21,309,725 $23,178,991 ($1,869,266) -8.1% 2014 $25,585,269 ($4,275,544) -16.7%

30666 Device - China Draw and Road Runner 115 kV SVC SPS 2015 ITPNT 100 - 300 COMPLETE Y Y 6/8/2016 $38,413,569 $54,843,257 $54,843,257 $0 0.0% 2015 $56,214,338 ($1,371,081) -2.4%

30695 Multi - Livingston Ridge - Sage Brush - Cardinal 115 kV SPS HPILS 100 - 300 COMPLETE Y Y 11/30/2017 $26,257,165 $28,127,695 $32,370,314 ($4,242,619) -13.1% 2016 $33,671,134 ($5,543,439) -16.5%

30717 Line - Hopi Sub - North Loving - China Draw 115 kV Ckt 1 SPS HPILS 100 - 300 COMPLETE Y Y 5/25/2015 $22,240,813 $21,154,466 $23,264,106 ($2,109,640) -9.1% 2014 $23,845,709 ($2,691,243) -11.3%

30732Multi - Anthony - Bluff City - Caldwell - Mayfield - Milan - Viola

138 kV Ckt 1MKEC/WR HPILS 100 - 300 IN SERVICE Y N 5/31/2018 $43,265,193 $42,961,200 $49,070,637 ($6,109,437) -12.5% 2016 $51,554,838 ($8,593,638) -16.7%

30817Line - Canyon West - Dawn - Panda - Deaf Smith 115 kV Ckt 1

RebuildSPS 2016 ITPNT 100 - 300 DELAYED N N 12/15/2018 $17,686,344 $12,411,424 $12,787,234 ($375,810) -2.9% 2018 $12,838,627 ($427,203) -3.3%

30850 Line - Iatan - Stranger 345 kV Ckt 1 Voltage Conversion GMO/WR 2015 ITP10 100 - 300 COMPLETE Y Y 6/1/2018 $15,726,289 $31,551,721 $37,510,000 ($5,958,279) -15.9% 2015 $40,394,167 ($8,842,446) -21.9%

30912 Multi - Walkemeyer Tap - Walkemeyer 345/115 kV SEPC/SPS 2015 ITPNT 100 - 300 COMPLETE Y Y 6/30/2018 $20,965,055 $34,139,402 $35,090,177 ($950,775) -2.7% 2017 $37,626,062 ($3,486,660) -9.3%

30914 Multi - Road Runner 115 kV Loop Rebuild SPS 2015 ITPNT 100 - 300 DELAYED N N 4/15/2019 $22,043,187 $18,815,589 $21,866,137 ($3,050,548) -14.0% 2018 $22,157,461 ($3,341,872) -15.1%

30943 Multi - AVS - Charlie Creek 345 kV BEPC IS Integration Study > 300 COMPLETE Y Y 6/1/2016 $108,000,000 $58,376,741 $108,000,000 ($49,623,259) -46.0% 2014 $113,467,500 ($55,090,759) -48.6% Reviewed 3Q 2018

30944 Multi - Charlie Creek - Judson - Williston 345/230 kV BEPC IS Integration Study > 300 COMPLETE Y Y 1/1/2016 $126,400,000 $61,893,823 $126,400,000 ($64,506,177) -51.0% 2014 $132,260,875 ($70,367,052) -53.2% Reviewed 3Q 2018

30945 Multi - Judson - Tande - Neset 345/230 kV BEPC IS Integration Study > 300 COMPLETE Y Y 11/11/2017 $111,000,000 $88,572,754 $111,000,000 ($22,427,246) -20.2% 2014 $119,456,063 ($30,883,309) -25.9% Reviewed 2Q 2018

30946 Multi - Lower Brule - Witten 230 kV BEPC IS Integration Study 100 - 300 DELAYED N N 1/1/2018 $38,000,000 $38,000,000 $38,000,000 $0 0.0% 2014 $42,993,512 ($4,993,512) -11.6%

31021 Line - Mustang - Seminole 115 kV Ckt 1 New Line SPS 2016 ITPNT 100 - 300 DELAYED N N 9/15/2020 $14,323,305 $20,136,042 $19,736,026 $400,016 2.0% 2016 $21,253,541 ($1,117,499) -5.3%

31031Multi - Kummer Ridge - Roundup 345 kV New Line and Patent

Gate and Roundup 345/115 kV SubstationsBEPC 2016 ITPNT 100 - 300 COMPLETE Y Y 9/1/2016 $69,884,000 $70,424,000 $69,884,000 $540,000 0.8% 2016 $69,884,000 $540,000 0.8%

31032Multi - Plaza 115 kV Substation and Blaisdell - Plaza 115 kV

New LineBEPC 2016 ITPNT 100 - 300 COMPLETE Y Y 2/1/2018 $19,042,308 $19,042,308 $20,202,546 ($1,160,238) -5.7% 2016 $21,225,300 ($2,182,992) -10.3%

31042Multi - DeGrasse - Knob Hill 138 kV New Line and DeGrasse

345/138 kV TransformerOGE/WFEC 2016 ITPNT 100 - 300 DELAYED N N 7/1/2020 $30,500,000 $34,458,334 $28,807,044 $5,651,290 19.6% 2017 $30,265,401 $4,192,933 13.9%

31068 Multi - Tuco - Yoakum 345/230 kV Ckt 1 SPS 2016 ITPNT/HPILS > 300 DELAYED N N 6/1/2020 $133,612,272 $128,605,777 $133,520,696 ($4,914,919) -3.7% 2016 $143,787,186 ($15,181,409) -10.6%

41223 Line - New East Ruthville - SW Minot 115 kV New Line CPEC 2017 ITPNT 100 - 300 DELAYED N N 12/31/2019 $21,780,000 $21,781,000 $21,781,000 $0 0.0% 2017 $22,883,663 ($1,102,663) -4.8%

51254 Multi - Sheldon - Monolith 115 kV NPPD DPA Studies 100 - 300 DELAYED N N 1/1/2021 $39,300,207 $39,300,207 $39,300,207 $0 0.0% 2018 $40,282,712 ($982,505) -2.4%

51282 Multi - Park Community - Sunshine 138 kV WFEC DPA Studies 100 - 300 DELAYED N N 3/1/2021 $78,900,000 $85,750,000 $85,200,000 $550,000 0.7% 2018 $89,217,500 ($3,467,500) -3.9%

51327 Line - Cogar - OU SW 138 kV WFEC DPA Studies 100 - 300 ON SCHEDULE N N 3/1/2021 $31,100,000 $31,100,000 $31,100,000 $0 0.0% 2018 $31,877,500 ($777,500) -2.4%

61347 Multi - China Draw - Road Runner 345 kV SPS DPA Studies > 300 DELAYED N N 4/15/2020 $91,074,869 $89,647,302 $89,647,302 $0 0.0% 2019 $89,647,302 $0 0.0%

71347 Line - Eddy+B2:B57 County - Kiowa 345 kV New Line SPS DPA Studies > 300 ON SCHEDULE N N 6/1/2024 $49,015,426 $63,730,259 $63,730,259 $0 0.0% 2019 $63,730,259 $0 0.0%

Action Item 202 –MDSTF Member AvailabilityJune 5, 2019

John O’Dell

1

BackgroundAction Item 202 – Added December, 2018

Action Item: Research availability of current MDSTF members

Update provided in March, 2018

• Not all members had responded

2

MDSTF Member Availability

3

MDSTF Position Company Availability Comment

Jeff Stebbins Chair Tri County Not Available Not available

David

ParrishVice-Chair AEP Available

Doug

Bowman

Staff

SecretarySPP Available

Jay Dring Member NPPDLimited

Availability

Garrett

GraybillMember OGE Available

Erin Keeler Member ITCGP Not Available

Mark

KuhnenegelMember OPPD Available

Kenny

MunsellMember Xcel Available

Paul

SedlacekMember Evergy Not Available

Resigned upon Evergy merger.

Dan Slaven is Evergy rep. Paul

wishes to be considered for future

task forces of similar nature.

Dan Slaven Member Evergy Available

Clarence

SuppesMember SEPC Available

Conclusion• One member did not respond upon follow-

up

• 11 members listed

• 7 are available now and in future, if needed

• 1 has limited availability

• 3 not available

4

Recommendations• Maintain contact with available members

• Remove members who are not available from MDSTF web page

• PCWG Chair may solicit new members per Section 3.1 of the Bylaws

The Chair of any Organizational Group may appoint any ad hoc task forces as necessary to fulfill its mission. Task force appointments shall be made with due consideration of the various types and expertise of Members and their geographic locations.

5

Page 1 of 3

Revision Request Form

SPP STAFF TO COMPLETE THIS SECTION

RR #: Date:

RR Title: Grandfathered Applicable Projects

System Changes No Yes

Process Changes? No Yes

Impact Analysis Required? No Yes

SUBMITTER INFORMATION

Name: Company:

Email: Phone:

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).

Market Protocols Section(s): Protocol Version:

Operating Criteria Section(s): Criteria Date:

Planning Criteria Section(s): Criteria Date:

Tariff (OATT) Section(s):

Business Practice Business Practice Number: 7060

Page 2 of 3

Integrated Transmission Planning (ITP)

Manual Section(s):

Revision Request Process Section(s):

Minimum Transmission Design

Standards for Competitive Upgrades (MTDS) Section(s):

Reliability Coordinator and Balancing

Authority Data Specifications (RDS) Section(s):

SPP Communications Protocols Section(s):

OBJECTIVE OF REVISION

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

BP 7060 defines “Applicable Projects” as construction projects, including Legacy Projects that SPP has the authority to direct

construction of, has a nominal operating voltage of 100 kV or above, and has a Study Estimate in excess of $20 million. There are

a limited number of cases where SPP funds projects that were not directed by SPP. Although PCWG can review cost changes for

these projects, current BP language does not consider these projects “Applicable” and does not require the same PCWG

recommendation for MOPC and Board as it does for other base plan funded upgrades. The objective of this RR is to allow all

future upgrades that are cost allocated in accordance with Attachment J, greater than 100 kV, and have estimates of $20 million or

more to be reviewed using the same methodology and decision structure as those currently defined as “Applicable” whether SPP

issues an NTC for the project or not.

Describe the benefits that will be realized from this revision.

This revision will allow upgrades that SPP did not direct construction of to be held to the same review standards for the Project

Cost Working Group as upgrades that SPP directs.

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

SPP Tariff (OATT)

SPP Operating Criteria

SPP Planning Criteria

Page 3 of 3

SPP Business Practices

2.2. Applicable Projects

Applicable Projects are construction projects, including Legacy Projects, that meet all of the following criteria:

Approved for construction under the Tariff or identified in the Tariff as a Base Plan Upgrade, except upgrades identified

through the Generator Interconnection process under Attachment V

Have a nominal operating voltage of 100 kV or above

Have a Study Estimate in excess of $20 million

A single Applicable Project may consist of multiple upgrades or multiple projects assigned to multiple DTOs. A non-Applicable

Project with a nominal operating voltage of 100 kV or above that has been issued an NTC will become an Applicable Project if either

its NTC Project Estimate (NPE) or any subsequent cost estimate exceeds $20 million. Applicable Projects will continue to be

Applicable Projects even if their subsequent cost estimates fall below $20 million.

For projects which did not receive an NTC from SPP, the initial cost estimate received from the project owner and reported in

Quarterly Project Tracking will be used as the established baseline cost estimate for reporting all future cost estimate changes during

the Project Tracking process for the project and will be the basis for determining project cost variances.

10. PCWG Review Process for Applicable Projects

The Project Cost Working Group (PCWG) process applies to approved Applicable Projects when the project exceeds the stated

bandwidths as described in Section 5.1.

Integrated Transmission Planning (ITP) Manual

Minimum Transmission Design Standards for Competitive Upgrades (MTDS)

Reliability Coordinator and Balancing Authority Data Specifications (RDS)

SPP Communications Protocols

Revision Request Process

Page 1 of 4



RR #: Date:

RR Title: Modification of Close Out requirements



Impact Analysis Required? No Yes


Name: John O’Dell on behalf of Project Cost Working

Group Company: SPP

Email: [email protected] Phone: 501-688-8285



SPP Staff


SPP Member



SPP Market Monitor


SPP/SPP member


Working Group







Correction

Clarification

Design Enhancement




standard(s))







Financial








Business Practice Business Practice Number: 7060

Page 2 of 4


Manual Section(s):








Objectives of Revision Request: This revision will remove requirement for Transmission Owners to provide a final SCERT that includes as-built equipment

specifications before an upgrade can be closed out.

TOs will benefit by saving time that their staff has spent entering this information in the past.




Market Protocols

SPP Tariff (OATT)



Page 3 of 4


13. NTC Project Close-out and Validation Process

For SPP to validate a Network Upgrade has been constructed and placed into service pursuant to the NTC, the

DTO shall provide the following to SPP in addition to the reporting requirements described in Section 12.2:

Letter of Commercial Operation with company letterhead submitted to [email protected];

All pertinent modeling information to the SPP Engineering Department through the Models On Demand

(MOD) system;

Actual cost amount to-date of Network Upgrade as reflected through one or both of the following methods:

o Base Plan Funded Network Upgrades – submitted through formula rate updates

o Non-Base Plan Funded Network Upgrades – submitted through the Project Tracking update

process;

o Final SCERT that includes as-built equipment specifications; and

All pertinent Geographical Information Systems (GIS) data to the SPP Engineering Department through

the TruShare appropriate file sharing system (only applicable to Network Upgrades that include greenfield

transmission lines).

Once all the required information has been provided to, and validated by SPP staff, the status of the Network

Upgrade will be marked as “Closed-out” on the next quarterly Project Tracking report, and will not appear on

subsequent quarterly reports.

If a DTO does not provide one or more of the requirements listed above for a Network Upgrade within two

calendar years after the in-service date reported in Project Tracking, SPP staff will provide a report to the

following organizational groups, in escalation based on the length of time the information is delinquent:

i. Level 1 – Report provided to PCWG after 2-year delinquency is identified;

ii. Level 2 – Report provided to MOPC and RSC at their next regularly scheduled meetings if delinquent

three months after Level 1 report; and

iii. Level 3 – Report provided to BOD at its next regularly scheduled meeting if delinquent three months

after Level 2 report. Subsequently, reports provided to BOD each regularly scheduled meeting until

delinquency is resolved.

SPP staff will report to the MOPC, RSC, and BOD if an actual cost reveals a deviation of +/-20% of the

established baseline cost.

Actual costs will continue to be tracked for all Network Upgrades after they are closed-out, as there could be

additional costs identified by the DTO and submitted to SPP. SPP staff will report the updated actual costs of a

closed-out project to the MOPC, RSC, and BOD if the updated actual cost of the project deviates +/-20% from

the established baseline cost.


Formatted

Page 4 of 4





Page 1 of 4



RR #: Date:

RR Title:



Impact Analysis Required? No Yes | If no, but system or process changes are expected please explain why an Impact

Analysis will not be performed (e.g. FERC Order, work included in another Impact Analysis for a related RR):


Name: John O’Dell on behalf of PCWG Company: SPP

Email: [email protected] Phone: 501-688-8285



SPP Staff


SPP Member



SPP Market Monitor


SPP/SPP member


Working Group







Correction (i.e., revising erroneous language or

language that needs clean-up for grammatical errors or

inconsistency across governing documents - no changes to

intent or policy)

Clarification (i.e., revising language to better

represent existing intent, no changes to functionality or

policy)

Enhancement (i.e., revising language to expand upon

existing intent or functionality)


(i.e, new language to accommodate new functionality or

policy not existing today)



standard(s))







Financial

Page 2 of 4








Business Practice Business Practice Number:


Manual Section(s):








Objectives of Revision Request:

This change will clarify Business Practice 7060 Appendix C where baseline estimates are set in the NTC-C process per Section 5.1

of that Business Practice.

This change will provide consistency in representation for establishing baselines for NTCs and NTC-Cs.




Market Protocols

SPP Tariff (OATT)



Page 3 of 4


Applicable Project?

NTC Re-evaluation

Issue NTC

Board Action

SPP Task

TO Task Stakeholder Group Task

Continue to Quarterly

Process

Withdraw NTC

NO

YES

Issue NTC-CStudy

Completion

Is CPE bandwidth

within Study Estimate

bandwidth?

NPE (+/-20%)

CPE (+/-20%)

Issue NTC (Remove

Conditions)

NO

YES

NPE Review

SPP and/or TO TaskStudy Estimate (+/-30%)

Competitive Project?

NO

TO Selection Process

YES

RRE (+/-20%)

Issue NTC

Set Baseline Estimate

Suspend NTC

Set Baseline Estimate

Although not required by Business Practice 7060, Staff will compare the NPE for a project to the Study

Estimate and may recommend a re-evaluation of the project at its

discretion




Commented [JO1]: “Set Baseline Estimate” added for NTC-C

process

Page 4 of 4



Meeting Rooms and LogisticsJohn O’Dell 6/5/2019

1

Meeting Rooms & Logistics

Booking Process

Budgeting Process

Cost Saving Opportunities

Meeting Registration

2

Booking Process for Meetings

3

Meeting Form

• Provides all details and meeting specifics

• Plan ahead and send form as soon as possible

Booking

• Meeting is formally booked and confirmed

Posted on SPP.org

• Announcement to the group

Budgeting Process

4

Budgeting

Begins*

Budget Numbers

Must Be Turned In

* Information requested:

Months you plan to meet

City or Cities

Location (hotel, member company, SPP, AEP)

Expected number of attendees

Duration of meeting

Any major changes to your normal meeting set-up, catering, AV, etc.

• Meeting Locations:

Downtown Dallas (50 people)

Member companies

SPP offices

Certain cities/locations are more cost effective than others

Certain cities/locations are more expensive than others

5

Cost Saving Opportunities

• Don’t provide breakfast if meeting starts after 8:00 am or hotel provides free breakfast

• Hold lunch dessert for afternoon snack or no afternoon snack

• Take SPP owned AV equipment when possible

6

MORE Cost Saving Opportunities

Meeting Registration

Please encourage your groups to

REGISTER

REGISTER

REGISTER!…………..and

unregister if needed.

7

8