honorable kimberly d. bose secretary federal energy ... · 1/24/2011 · er10-393 to reduce the...

January 24, 2011

Honorable Kimberly D. Bose Secretary Federal Energy Regulatory Commission 888 First Street, N.E. Washington, D.C. 20426

Re: Southwest Power Pool, Inc., Docket No. ER11-____Submission of Revisions to Open Access Transmission Tariff to Modify Operational Constraint Violation Relaxation Limit

Dear Secretary Bose:

Pursuant to section 205 of the Federal Power Act (“FPA”), 16 U.S.C. § 824d, and Part 35 of the regulations of the Federal Energy Regulatory Commission (“FERC” or “Commission”), 18 C.F.R. § 35, Southwest Power Pool, Inc. (“SPP”), as authorized by its independent Board of Directors, hereby proposes to revise its Open Access Transmission Tariff (“OATT” or “Tariff”) to reduce the currently effective Violation Relaxation Limit (“VRL”) governing operational constraints (“OCs”) from $1,500/MW of loading to a set of tiered “block” dollar values based on the percentage amount of the overload. The proposed change follows the completion of an annual review of VRL levels and a “Block VRL Analysis” performed by SPP staff at the request of the SPP Market Working Group (“MWG”). In support of the requested change, SPP states the following:

I. BACKGROUND

A. Description of SPP

SPP is a Commission-approved Regional Transmission Organization (“RTO”). It is an Arkansas non-profit corporation with its principal place of business in Little Rock, Arkansas. SPP currently has 61 members serving more than 6 million households and covering a geographic area of 370,000 square miles. SPP’s current membership consists of 14 investor-owned utilities, 9 municipal systems, 12 generation and transmission cooperatives, 4 state agencies, 7 independent power producers, 10 power marketers, and 5 independent transmission companies.

Honorable Kimberly D. BoseJanuary 24, 2011

As an RTO, SPP is a transmission provider administering transmission service over portions of Arkansas, Kansas, Louisiana, Missouri, Nebraska, New Mexico, Oklahoma, and Texas. In addition, through SPP’s EIS Market, participants are able to purchase and sell wholesale electricity in real-time, thereby promoting economic supply and demand balances and improved system stability. SPP’s EIS Market was implemented February 1, 2007 pursuant to Commission authorizations.1

B. Overview of VRLs

SPP’s EIS Market employs a Security-Constrained & Economic Dispatch engine (“SCED”) that is programmed to produce economically optimal solutions, subject to a series of security-based constraints. As relevant here, one such modeled constraint is a loading limit (MW) for each activated flowgate or other monitored transmission branch (“OC Limit”). When a specific OC Limit is reached on a monitored facility, the SCED engine is designed to search for other dispatch solutions rather than breach the OC Limit. However, in certain instances, the SCED engine cannot solve within the constraint limitation. In order to produce feasible results, some of the constraints (including OC Limits) must be relaxed to allow the temporary violation of the limit based on a pre-determined dollar value of that violation. The value of these violations, or violation relaxation limits (“VRLs”), allow the model to reach a lower-cost dispatch solution in lieu of continuing to dispatch generation resources at unreasonable costs. The specific values that are assigned to VRLs vary depending on the particular violation category. Currently, the Commission-approved OC VRL is set at $1,500/MW.

C. Related Proceedings: Docket Nos. EL07-73, ER07-319, ER09-1338, and ER10-393

In Docket Nos. EL07-73 and ER07-319, the Commission addressed various concerns raised by intervenors regarding the operation of VRLs in SPP’s EIS Market. Ultimately, the Commission directed SPP to submit VRL values for review and approval pursuant to section 205 of the FPA and initiated paper hearing procedures to consider the justness and reasonableness of the specific dollar amounts associated with each VRL.2

The paper hearing procedures resulted in the filing of an uncontested settlement agreement that resolved all issues pending in Docket Nos. EL07-73 and ER07-319. The settlement was approved by the Commission on June 3, 2009,3 and procedures were subsequently put in place to periodically monitor and reevaluate the operation of VRLs, including the performance and publication of annual VRL sensitivity analyses. 1 Sw. Power Pool, Inc., 118 FERC ¶ 61,055, reh’g denied, 120 FERC ¶ 61,018

(2007).

2 Sw. Power Pool, Inc., 119 FERC ¶ 61,342 (2007).

3 Sw. Power Pool, Inc., 127 FERC ¶ 61,216 (2009).


The procedures for the sensitivity analyses were memorialized in a June 22, 2009 tariff filing in Docket No. ER09-1338-000, which was approved by Commission letter order issued August 18, 2009. Further, on December 7, 2009, SPP filed in Docket No. ER10-393 to reduce the VRL for OCs from $2,000/MW to $1,500/MW based on a VRL sensitivity analysis, which concluded that a reduction in the OC VRL could significantly reduce congestion prices within the EIS Market without a notable increase in the incidence or magnitude of OC violations. This filing was approved by Commission letter order issued January 25, 2010.

II. SPP STAKEHOLDER PROCESS AND APPROVAL OF PROPOSED TARIFF REVISIONS

In the instant filing, SPP proposes to revise its OC VRL from $1,500/MW to five separate “block” dollar values that vary based on the percentage of the OC Limit violation that ranges from $500/MW when the loading on an OC is between 100% and 101% to $1,500/MW when the loading on an OC is greater than 104%. This adjustment reflects the results of both the annual VRL analysis and a separate “Block VRL Analysis” performed by SPP staff at the request of SPP MWG. This MWG request was the result of extreme price volatility experienced in the previous year that caused certain Market Participants to limit their participation in the EIS Market. Based on the Block VRL Analysis, SPP staff determined that the use of five block VRLs would significantly decrease the price volatility while only minimally increasing the amount of congestionexperienced in the market.

Based on this analysis, a recommendation to change the structure of the OC VRL from $1,500/MW to the tiered system based on the level of violation as described further herein was vetted through the SPP stakeholder process and received unanimous approvals by the MWG on September 22, 2010 and the SPP Markets & Operations Policy Committee on October 12, 2010. The recommendation was then forwarded to SPP’s Board of Directors/Members Committee where it received unanimous approval onOctober 26, 2010.

III. DESCRIPTION AND JUSTIFICATION FOR TARIFF REVISIONS

As discussed above, the proposed tariff revision follows a comprehensive analysis of the operation of VRLs in SPP’s EIS Market and, in particular, consideration of the market and reliability impact of the proposed change from the current $1,500/MW VRL for OC Limits violations to the set of tiered “block” values that depend on the level of OC Limit Violation.

SPP staff, in its performance of the Block VRL Analysis, reviewed all OC Limit violations (i.e. VRL activations) that occurred between August 2009 and August 2010 and found that 61% of these violations occurred when the loading on the OC was between 100% and 104%. SPP staff then conducted a number of modeling runs to determine the impact of introducing various block dollar values at different levels of


loading below 104% on price volatility, overall cost of congestion, and the amount of congestion experienced by any downward adjustment on the VRL values. SPP staff found that as fewer blocks are used, the effect of the block VRL is muted due to the presence of price volatility and a limited reduction in congestion costs. Inversely, as more blocks are used, additional OC Limit violations occur as the inherent price signal is lost to the market, and significant additional violations could become more difficult to control with non-market congestion management tools (e.g. the transmission loading relief (“TLR”) process).

Of the various scenarios studied by SPP Staff, the use of five block values progressing linearly from $500/MW to $1500/MW for loading between 100% and 104% was the most effective in balancing the reduction in price volatility and the overall cost of congestion with the additional congestion introduced into the market due to the VRL change. It is expected that this proposed modification to the VRL values will significantly reduce the cost of congestion in all instances of OC Limit violations below 104% of loading (which, as noted above, accounted for 61% of all violations from August 2009 – August 2010) while adding only minimal additional OC Limit violations to the system (the flowgate example included in the Block VRL Analysis report showed additional loading of roughly 2 MW or less than two-tenths of a percent of the OC Limit for that flowgate).

Accordingly, the purpose of the enclosed tariff revision is to modify the OC VRL from the current set value of $1,500/MW to a set of block values that vary based on the percentage loading on an OC Limit. No other changes are proposed. This adjustment reflects an enhancement to SPP’s EIS Market based on commitments previously made by SPP to monitor and reevaluate the operation of VRLs. Having been fully vetted through SPP’s stakeholder process and receiving broad-based and unanimous support, SPP submits that the proposed change warrants Commission approval.

IV. EFFECTIVE DATE

SPP requests that the Commission accept the tariff revision proposed in this filing with an effective date of March 25, 2011. This effective date would permit SPP sufficient time to allow for implementation of the requested tariff modification and installation of all required software changes following issuance of a Commission order (assuming sixty (60) days for issuance of such order).

V. ADDITIONAL INFORMATION

A. Information Required by Section 35.13 of the Commission’s Regulations, 18 C.F.R. § 35.13:

(1) Documents submitted with this filing:

In addition to this transmittal letter, the following material is provided with this filing: (a) a list of its Members and Customers


served with a copy of this filing, as Attachment A; (b) a clean and redline version of the Tariff revisions.

(2) Effective Date:

As discussed in this filing, SPP requests that the Commission accept the proposed Tariff revisions with an effective date ofMarch 25, 2011.

(3) Service:

SPP has served a copy of this filing on all its Members and Customers. A complete copy of this filing will be posted on the SPP web site www.spp.org, and is also being served on all affected state commissions.

(4) Requisite Agreements:

SPP’s Board of Directors approved this filing at its meeting on October 27, 2010.

(5) Specifically assignable facilities installed or modified:

There are none.

B. Communications:

Correspondence and communications with respect to this filing should be sent to, and SPP requests the Secretary to include on the official service list, the following:

Heather H. Starnes, J.D. Jeffrey G. DiSciulloManager, Regulatory Policy Jeffrey W. PriceSouthwest Power Pool, Inc. Wright & Talisman, P.C.415 North McKinley, Suite 140, Plaza West 1200 G Street, NWLittle Rock, AR 72205 Suite 600Telephone: (501) 614-3380 Washington, D.C. 20005Fax: (501) 664-9553 Telephone: (202) [email protected] Fax: (202) 393-1240

[email protected]@wrightlaw.com


VI. CONCLUSION

For the foregoing reasons, SPP respectfully requests that the Commission accept the Tariff revision submitted in this filing, with an effective date of March 25, 2011. SPP further requests waiver of any additional Commission regulations that the Commission may deem applicable.

Respectfully submitted,

Jeffrey W. Price

Jeffrey G. DiSciulloJeffrey W. Price

Attorneys forSouthwest Power Pool, Inc.

Attachment A

SPP Customer List

Lundy KigerDirector of Gov't & Community RelationsAES Shady Point, LLCP.O. Box 1740Panama, OK 74951

Don MosierAmeren Energy Marketing Company1901 Choteau AvenueMail Code AME-902St. Louis, MO 63103

Shawn SchukarAmeren Services Company1901 Choteau AvenueMail Code AME-900St. Louis, MO 63103

Monique Rowtham-Kennedy, Senior CounselAmerican Electric Power 801 Pennsylvania Avenue, N.W.Suite 320Washington, D.C. 20004-2684

C. Richard Ross, Director Market DevelopmentAmerican Electric Power6705 E. 81st StreetSuite 160Tulsa, OK 74133

Ricky BittleArkansas Electric Cooperative Corp.P.O. Box 194208Little Rock, AR 72219-4208

Chris BolickAssociated Electric Cooperative, Inc.2814 S. GoldenP.O. Box 754Springfield, MO 65801-0754

Ms. Michelle HileyBarclays Bank PLC200 Park AvenueNew York, NY 10166

Mr. David CharlesBasin Electric Power Company1717 East Interstate AvenueBismarck, ND 58504

Larry WilliamsonFERC Tariff and Compliance ManagerBlack Hills Power, Inc.P.O. Box 1400Rapid City, SD 57709

Andy ButcherManager Generation Dispatch and Power MarketingBlack Hills Power, Inc.P.O. Box 1400Rapid City, SD 57709

Vanessa KelloggBlue Canyon Windpower, LLC808 Travis StreetSuite 700Houston, TX 77002

Matt DanielAsset Management AssociateBlue Canyon Windpower, LLC808 Travis Street, suite 700Houston, TX 77002

Greg BruceBP Energy Co.501 Westlake Park Blvd.Houston, TX 77079

SPP Customer List

David Van HoogstratenDirector of Wind Energy PolicyBP Wind Energy North America, Inc.1101 New York Avenue, N.W.Suite 700Washington, DC 20005

Carla HarrymanRegulatory Compliance SpecialistBP Wind Energy North America, Inc.700 Louisiana Street33rd FloorHouston, TX 77002

Fred MitroWind Development ManagerBP Wind Energy North America, Inc.700 Louisiana Street33rd FloorHouston, TX 77002

Clifton KarneiBrazos Electric Power CooperativeP.O. Box 2585Waco, TX 76702-2585

Daniel WhyteBrookfield Power Corporation480 Boulevard de-la-CITEGatineau, Quebec J8T8R3

Christopher CoulterCalpine Energy Services L.P.717 Texas Avenue, Suite 1000Houston, TX 77002

Gene BeckerCargill Power Markets, LLC12700 Whitewater DriveMS 151Minnetonka, MN 55343

Robert Williams, General ManagerCarthage Water & Electric Plant149 E. 3rd StreetP.O. Box 611Carthage, MO 64836

Walter HornadayCielo Power Marketing, LP823 Congress AvenueSuite 500Austin, TX 78701

Kolby P. Kettler, DirectorCitigroup Energy Inc.2800 Post Oak Blvd.Suite 500Houston, TX 77056-6156

Jim SuttonCity of AugustaP.O. Box 489Augusta, KS 67010

Gerald BritschgePower Plant SuperintendentCity of Burlingame101 E. Santa Fe AvenueBurlingame, KS 66413

Larry GatesCity of ChanuteP.O. Box 907Chanute, KS 66720

Steve McGieManager of Interconnected OperationsCity of Coffeyville KSP.O. Box 1629Coffeyville, KS 67337

SPP Customer List

Jeff MorrisCity ManagerCity of Coffeyville KSP.O. Box 1629Coffeyville, KS 67337

Michael D. ShookSuperintendent of Electric OperationsCity of Coffeyville KSP.O. Box 1629Coffeyville, KS 67337

E. Leon DaggettCity of IndependenceP.O. Box 1019Independence, MO 64051

Gregory DuMarsCity AdministratorCity of LindsborgP.O. Box 70Lindsborg, KS 67456

Tim DunnPublic Works DirectorCity of LindsborgP.O. Box 70Lindsborg, KS 67456

Mr. Galen CumminsUtility Production DirectorCity of Mulvane211 N. Second StreetMulvane, KS 67110

Ms. Patty GerwickCity ClerkCity of Mulvane211 N. Second StreetMulvane, KS 67110

Mike Gilliland, Director of UtilitiesCity of Osage City201 S. 5th StreetP.O. Box 250Osage City, KS 66523

Billy HouseOffice ManagerCity of PrescottP.O. Box 676Prescott, AR 71857

John StephensCity Utilities of Springfield301 E. Central StreetP.O. Box 551Springfield, MO 65801

Mark MacDonald, Director FERC Regulatory AffairsCleco Power LLC2030 Donahue Ferry RoadPineville, LA 71360-5000

Mark MacDonald, Director FERC Regulatory AffairsCleco Support Group LLC2030 Donahue Ferry RoadPineville, LA 71360-5000

Wanda LeeCobb Electric Membership Corporation1000 EMC ParkwayMarietta, GA 30061

Tad JohnsenColumbia Water and Light DepartmentP.O. Box 6015Columbia, MO 65205

SPP Customer List

Russell MartinsonConAgra Trade Group, Inc.Eleven ConAgra Drive, STE 11-160Omaha, NE 68102

Gary J. Morsches, President and CEOConectiv Energy Supply, Inc.500 N. Wakefield DriveNewark, DE 19702

Maria HendrixConoco Inc.600 North Dairy Ashford (CH1081)Houston, TX 77079

Randall OsteenConstellation Energy Commodities Group, Inc.111 Market PlaceSuite 500Baltimore, MD 21202

Rob JanssenDogwood Energy LLC6700 Alexander Bell DriveSuite 360Columbia, MD 21046

Marcia HissongDTE Energy Trading414 South Main StreetSuite 200Ann Arbor, MI 48104

Chris ArmitageEagle Energy Partners, L.L.P.4700 West Sam Houston Parkway N.Suite 250Houston, TX 77041

Seth BrownEast Texas Electric Cooperative, Inc.P.O. Box 631623Nacogdoches, TX 75623-1623

Eastex Cogeneration LTD Partner

Kelly WaltersEmpire District Electric CompanyP.O. Box 127Joplin, MO 64802

Bary WarrenDirector of Transmission Policy & ComplianceEmpire District Electric CompanyP.O. Box 127Joplin, MO 64802

Chris DubayEnergetix, Inc.31 Lewis Street, Suite 401Binghamton, NY 13901

Brooke SeimsEnergy Transfer Group3738 Oaklawn AvenueDallas, TX 75219

Andrea Weinstein, Assistant General CounselEntergy Power Ventures, LP101 Constitution Ave., N.W.Suite 200-EastWashington, D.C. 20001

SPP Customer List

Tom Reagan, President, Competitive OperationsEntergy Power Ventures, LP1661 Gravier StreetNew Orleans, LA 70112

Matt WolfEntergy Services, Inc.Parkwood Two Bldg., Suite 30010055 Grogan’s Mill Rd.The Woodlands, TX 77380

Kristy AshleyExelon Generation Company, LLC1005 Congress AvenueAustin, TX 78701

Fortis Energy Marketing & Trading1100 Louisiana, Suite 4900Houston, TX 77002

Ms. Carrie ClarkStaff AttorneyGolden Spread Electric Coop., Inc.P.O. Box 9898Amarillo, TX 79105

Mark W. Schwirtz President and General ManagerGolden Spread Electric Coop., Inc.P.O. Box 9898Amarillo, TX 79105

Mike WiseVice President, Transmission & OperationsGolden Spread Electric Coop., Inc.P.O. Box 9898Amarillo, TX 79105

Michael Kiefner, Chief Operating OfficerGrand River Dam AuthorityP.O. Box 409Vinita, OK 74301-0409

Mr. Jim DeTourHastings Utilities1228 N. Denver AvenueP.O. Box 289Hastings, NE 68902

Mr. Jim BerryPower Plant SupervisorHigginsville Municipal UtilitiesP.O. Box 110Higginsville, MO 64037

David L. FincherDirector, Electric System PlanningHoper Water & LightP.O. Box 2020Hope, AR 70802-2020

Brent Hebert, Director of Regulatory AffairsHorizon Wind Energy, LLC808 Travis StreetSuite 700Houston, TX 77002

Toan Nguyen, Legal DepartmentIberdrola Renewables, Inc.1125 NW Couch StreetSuite 700Portland, OR 97209

Ms. Thresa AllenIberdrola Renewables, Inc.1125 Couch StreetSuite 700Portland, OR 97209

SPP Customer List

Kathy BeniniJ. Aron & Company85 Broad Street26th FloorNew York, NY 10004

Daniel FeitJ. Aron & Company1 New York Plaza38th FloorNew York, NY 10004

Ronald BowenJonesboro City Water & LightP.O. Box 1289Jonesboro, AR 72403

Ms. Bridget PattiJW Prairie Wind Power645 MassachusettsSuite 300Lawrence, KS 66044

Patricia DennyKansas City Power & Light CompanyP.O. Box 418679Kansas City, MO 64141-9679

Mr. Charles LockeKansas City Power & Light CompanyP.O. Box 418679Kansas City, MO 64141-9679

Doug HewittKansas City Power & Light CompanyP.O. Box 418679Kansas City, MO 64141-9679

Robert D. BowserKansas Electric Power CooperativeP.O. Box 4877Topeka, KS 66604-0877

Amanda KenlyDirector, Credit & ContractsKansas Energy LLC17795 W. 106th StreetSuite 204Olathe, KS 66061

Rusty SmithVice President, PowerKansas Energy LLC17795 W. 106th StreetSuite 204Olathe, KS 66061

Neil RowlandKansas Municipal Energy Agency6300 West 95th StreetOverland Park, KS 66212-1431

Mr. Colin WhitleyKansas Power Pool200 W. DouglasSuite 601Wichita, KS 67202

Dan O’BrienGeneral ManagerKaw Valley Electric1100 SW Auburn RoadTopeka, KS 66615

Jerry ManningAssistant ManagerKaw Valley Electric1100 SW Auburn RoadTopeka, KS 66615

SPP Customer List

Bob AdamKC Board of Public Utilities312 N. 65th StreetKansas City, KS 66102

Patricia DennyKCP&L Greater Missouri Operations CompanyP.O. Box 418679Kansas City, MO 64141-9679

Mr. Charles LockeKCP&L Greater Missouri Operations CompanyP.O. Box 418679Kansas City, MO 64141-9679

Doug HewittKCP&L Greater Missouri Operations CompanyP.O. Box 418679Kansas City, MO 64141-9679

Frank LedouxLafayette Utilities Systems1314 Walker RoadP.O. Box 4017-CLafayette, LA 70502

Liberty Power Holdings LLC800 W. Cypress Creek RoadFort Lauderdale, FL 33309

Ben LaneySystems AdministratorLighthouse Energy Trading Co., Inc.7077 Northland CircleSuite 200Brooklyn Park, MN 55428

Dennis FloromLincoln Electric System1040 O StreetLincoln, NE 68501

Doug CurryLincoln Electric System1040 O StreetLincoln, NE 68501

Eric RuskampLincoln Electric System1040 O StreetLincoln, NE 68501

Andrea Kraft, Manager of Wholesale PowerLuminant Energy Company, LLCEnergy Plaza1601 Bryan Street, Suite 11005BDallas, TX 75201

Martin Gauthier, PresidentMAG Energy Solutions, Inc.1010 Sherbrooke WestSuite 800Montreal, Quebec H3A 2R7

Anchalee DoMerrill Lynch Commodities, Inc.20 E. Greenway Plaza – 8th FloorHouston, TX 77046

Ms. Cheryl CannonMerrill Lynch Commodities, Inc.20 E. Greenway Plaza – 8th FloorHouston, TX 77046

SPP Customer List

Gregory C. SchaeferRegulatory Manager, Wholesale TradingMid-American Energy Company4299 Northwest Urbandale DriveUrbandale, IA 50322

William DowlingMidwest Energy1330 Canterbury RoadP.O. Box 898Hays, KS 67601-0898

Deborah HartMorgan Stanley Capital Group, Inc.Commodities2000 Westchester AvenuePurchase, NY 10577

Tom HestermannManager, Transmission PolicyMid-Kansas Electric Company, LLCP.O. Box 980Hays, Kansas 67601

Noman WilliamsV.P. Transmission Services & EngineeringMid-Kansas Electric Company, LLCP.O. Box 980Hays, Kansas 67601

Doug HealyGeneral CounselMissouri Joint Municipal EUC939 N. Booneville, Suite ASpringfield, MO 65802

Eve LissikAssistant General ManagerMissouri Joint Municipal EUC1808 I-70 Drive SWColumbia, MO 65203

Rebecca AtkinsEnergy EconomistMissouri Joint Municipal EUC1808 I-70 Drive SWColumbia, MO 65203

Robert PickManager of Electric MarketsMunicipal Energy Agency of NebraskaP.O. Box 951241111 O Street, Suite 200Lincoln, NE 68509-5124

Benjamin MaherManager of Electric OperationsMunicipal Energy Agency of NebraskaP.O. Box 951241111 O Street, Suite 200Lincoln, NE 68509-5124

Paul J. MaloneNebraska Public Power District907 West 25th StreetP.O. Box 608York, NE 68467-0608

Harold L. HadlandNebraska Public Power District1414 15th StreetP.O. Box 499Columbus, NE 68602-4099

Ronald F. Thompson, Jr.Nebraska Public Power District2060 W. Platte River Dr.P.O. Box 1000Doniphan, NE 68832-1000

Kathleen BrinkerGeneral ManagerNemaha-Marshall Electric Cooperative Assoc. Inc.402 PrairieP.O. Box OAxtell, KS 66403

SPP Customer List

Charles SchultzNextera Energy Power Marketing, LLC700 Universe Blvd.Juno Beach, FL 33408

Rachel PanzicaSenior ParalegalNoble Great Plains Windpark, LLC8 Railroad Avenue, Suite 8Essex, CT 06426

Rick Tyler, General ManagerNortheast Texas Electric Cooperative1127 Judson RoadSuite 249Longview, TX 75601

Bernie LiuSenior Transmission Tariff ConsultantNorthern States Power Company414 Nicollet MallMinneapolis, MN 55401

Lain LovelaceDirector of Energy & RiskNorthPoint Energy Solutions2025 Victoria AvenueRegina, SK S4P0S1

Keith ComeauxDirector of Regulatory ComplianceNRG Power Marketing, Inc.112 Telly StreetNew Roads, LA 70760

Alice JacksonOccidental Power Marketing, L.P.P.O. Box 275705 Greenway Plaza, Suite 110Houston, TX 77227-7570

Jean HallOccidental Power Services, Inc.P.O. Box 275705 Greenway Plaza, Suite 110Houston, TX 77227-7570

Gary D. ClearOklahoma Gas & Electric CompanyPost Office box 321, Mail Code GB58Oklahoma City, OK 73101-0321

Cindy HolmanOklahoma Municipal Power AuthorityP.O. Box 1960Edmund, OK 73083-1960

Kimber L. Shoop, Senior AttorneyOklahoma Gas & Electric CompanyPost Office Box 321, Mail Code 1208Oklahoma City, OK 73101-0321

Pat McDonieONEOK Power Marketing100 W. Fifth StreetSuite 1600Tulsa, OK 74103

Margaret SailorsOmaha Public Power District444 S. 16th Street, Mall, 10E/EP1Omaha, NE 68102

Bruce GlorvigenOtter Tail Power Company215 S. CascadeFergus Falls, MN 56537

SPP Customer List

John HudsonPeople’s Electric CooperativeP.O. Box 429Ada, OK 74820

Anne LovettPPL EnergyPlus, LLC2 North Ninth Street PL7Allentown, PA 18101

David EubankPublic Service Company of New MexicoAlvarado Square MS-0604Albuquerque, NM 87158

Cynthia HenryRegulatory Administration ManagerPublic Service Company of Colorado550 15th Street, Suite 1000Denver, CO 80202

Joe WolfeRainbow Energy Marketing Corp.Kirkwood Office Tower919 S. 7th Street, Suite 405Bismarck, ND 58504

Mike RustumRedbud Energy, LP1825 Eye Street, N.W.Washington, D.C. 20006

Robert JanssenRedbud Energy, LP6700 Alexander Bell DriveSuite 360Columbia, MD 21046

John RitchRRI Energy Services, Inc.1000 Main StreetHouston, TX 77002

Grace TomczakSempra Energy Trading83 Commerce RoadStamford, CT 06902

Diane Davis, Commercial AdvisorShell Energy North America (US), L.P.909 Fannin, Plaza Level OneHouston, TX 77010

Rick LandersSikeston Board of Municipal UtilitiesP.O. Box 370Sikeston, MO 63801

Jessica CollinsMarket Operations ManagerSouthwestern Public Service Company550 15th Street, Suite 1000Denver, CO 80202

Tracey StewartSouthwestern Power AdministrationU.S. Department of EnergyOne West Third StreetTulsa, OK 74103

Teri BrownTenaska Power Services Co.1701 E. Lamar Blvd.Suite 100Arlington, TX 76006

SPP Customer List

Michael KnauffTennessee Power Company4612 Maria StreetChattanooga, TN 37411-1209

Steve WatsonTennessee Valley Authority1101 Market Street, MR 2DChattanooga, TN 37402-2801

Edd Hargett, General ManagerTex-La Electric Cooperative of Texas, Inc.P.O. Box 631623Nacogdoches, TX 75963

Rene DumstorfThe Energy Authority301 West Bay StreetSuite 2600Jacksonville, FL 32202

Mr. Chris MelleyThird Planet Windpower4239 SW High Meadow AvenuePalm City, FL 34990

Sterling KochTransAlta Energy Marketing (US) Inc.110 12 th Avenue S.W.Box 1900, Station “M”Calgary, Alberta T2P 2M1

Suzanne Calcagno, Regulatory ComplianceUBS AG, London Branch677 Washington Blvd.C/O UBSW Energy – 6th FloorStamford, CT 06901

Frederick KunkelWabash Valley Power Association, Inc.722 N. High School RoadIndianapolis, IN 46214

Dennis ReedWestar Energy, Inc.818 S. Kansas AvenueTopeka, KS 66612

Grant WilkersonWestar Energy, Inc.818 S. Kansas AvenueTopeka, KS 66612

Mr. John StonebargerWestern Area Power Administration (WAPA)P.O. Box 790Watertown, SD 57201

Mr. Pete KinneyWestern Area Power Administration (WAPA)P.O. Box 790Watertown, SD 57201

Gary RouletWestern Farmers Electric CooperativeP.O. Box 429Anadarko, OK 73005-0429

Brenda HollandXcel Energy/Southwestern Public Service Company600 South Tyler, Suite 2400Amarillo, Texas 79101

SPP Customer List

John EichelmannXcel Energy/Southwestern Public Service Company600 South Tyler, Suite 2400Amarillo, Texas 79101

Allison Heaton, Legal/Compliance ManagerMacquarie Energy LLC500 Dallas St. Suite 3100Houston, TX 77002

Eric Barreveld, Energy Market SupervisorSmoky Hills Wind Project II, LLCOne Tech Drive, Suite 220Andover, MA 01810

SPP Member List

Frank BristolAcciona Wind Energy USA LLC333 West Wacker DriveSuite 1500Chicago, IL 60606

Gary BraunAcciona Wind Energy USA LLC333 West Wacker DriveSuite 1500Chicago, IL 60606

Mr. Kip Fox, Manager RTO PolicyAmerican Electric PowerAEP Oklahoma Transmission Company, Inc.AEP Southwestern Transmission Company, Inc.1201 Elm Street, Suite 800Dallas, TX 75250

Gary VoigtArkansas Electric Cooperative Corporation8000 Scott Hamilton DrivePost Office Box 194208Little Rock, AR 72209

Christopher CoulterCalpine Energy Services L.P.717 Texas Avenue, Suite 1000Houston, TX 77002

Gene BeckerCargill Power Markets, LLC12700 Whitewater DriveMS 151Minnetonka, MN 55343

Robert PriestCity of Clarksdale MississippiP.O. Box 70Clarksdale, MS 38614

E. Leon DaggettCity of Independence, MOP.O. Box 1019Independence, MO 64051

Jeff KnottekCity Utilities (Springfield, MO)301 E. CentralP.O. Box 551Springfield, MO 65801-0551

Mark MacDonald, Director FERC Regulatory AffairsCleco Corporation2030 Donahue Ferry RoadPineville, LA 71360-5000

Carl CosciaConstellation Energy Commodities Group, Inc.111 Market PlaceSuite 600Baltimore, MD 21202

Walter YeagerDuke Energy139 East Fourth StreetMail Code EA600Cincinnati, OH 45202

Kevin Carter, Market and RTO Services ManagerDuke Energy139 East Fourth StreetMail Code EA600Cincinnati, OH 45202

Jason Cox, Sr. Director, MW Asset ManagementDynegy Power Marketing1000 Louisiana AvenueSuite 5800Houston, TX 77002

SPP Member List

Tambra OffieldEast Texas Electric Cooperative, Inc.P.O. Box 631623Nacogdoches, TX 75963-1623

Letitia Davis, VP, Chief Ethics and Compliance Ofr.Edison Mission Marketing & Trading Inc.160 Federal StreetBoston, MA 02110-1776

Christopher Bernard, Trading & Regulatory ComplianceEdison Mission Marketing & Trading Inc.160 Federal StreetBoston, MA 02110-1776

Ellen Oswald, Director of NERC ComplianceEdison Mission Marketing & Trading Inc.160 Federal StreetBoston, MA 02110-1776

Dennis PriceEl Paso Marketing, L.P.1001 Louisiana StreetHouston, TX 77002

Mr. Mike PalmerVice President – Commercial OperationsEmpire District Electric CompanyP.O. Box 127Joplin, MO 64802

Andrea Weinstein, Assistant General CounselEntergy Power Ventures, LP101 Constitution Ave., N.W.Suite 200-EastWashington, D.C. 20001

Tom Reagan, PresidentCompetitive OperationsEntergy Power Ventures, LP1661 Gravier StreetNew Orleans, LA 70112

Randall HelmickVice President of TransmissionEntergy Services Inc.P.O. Box 61000M-ELEC-8GNew Orleans, LA 70161

Noel TraskLead Counsel, Exelon Power TeamExelon Business Services Company300 Exelon WayKennett Square, PA 19348

Mark W. Schwirtz President and General ManagerGolden Spread Electric Coop., Inc.P.O. Box 9898Amarillo, TX 79105

Michael Kiefner, Chief Operating OfficerGrand River Dam AuthorityP.O. Box 409Vinita, OK 74301-0409

Bill BojorquezVice President, PlanningHunt Transmission Services, LLCSutherland Asbill & Brennan701 Brazos Street, Suite 970Austin, TX 78701-2559

Susan BraunKansas City Power & Light CompanyP.O. Box 418679Kansas City, MO 64141-9679

SPP Member List

Todd FridleyKansas City Power & Light CompanyP.O. Box 418679Kansas City, MO 64106-9679

Robert D. BowserKansas Electric Power CooperativeP.O. Box 4877Topeka, KS 66604-0877

Frank LedouxLafayette Utilities SystemP.O. Box 4017-CLafayette, LA 70502

Dennis FloromLincoln Electric System1040 O StreetLincoln, NE 68501

Doug CurryLincoln Electric System1040 O StreetLincoln, NE 68501

Eric RuskampLincoln Electric System1040 O StreetLincoln, NE 68501

Cordell GrandLouisiana Energy & Power Authority210 Venture WayLafayette, LA 70507-5319

Andrea KraftManager of Wholesale PowerLuminant Energy Company, LLCEnergy Plaza1601 Bryan Street, Suite 11005BDallas, TX 75201

William DowlingMidwest Energy Inc.1330 CanturburyP.O. Box 898Hays, KS 67601-0898

Paul J. MaloneNebraska Public Power District907 West 25th StreetP.O. Box 608York, NE 68467-0608

Harold L. HadlandNebraska Public Power District1414 15th StreetP.O. Box 499Columbus, NE 68602-4099

Ronald F. Thompson, Jr.Nebraska Public Power District2060 W. Platte River Dr.P.O. Box 1000Doniphan, NE 68832-1000

Richard M. TylerNortheast Texas Electric Cooperative1127 Judson RoadSuite 249Longview, TX 75601

The Assistant General Counsel, Regulatory AffairsNRG Power Marketing Inc.211 Carnegie CenterPrinceton, NJ 08540

SPP Member List

Kimber ShoopOklahoma Gas and Electric CompanyPost Office box 321, Mail Code 1208Oklahoma City, OK 73101-0321

David L. KaysOklahoma Gas and Electric CompanyPost Office Box 321Oklahoma City , OK 73101-0321

Cindy HolmanOklahoma Municipal Power AuthorityP.O. Box 1960Edmond, OK 73083-1960

Margaret SailorsOmaha Public Power District444 S. 16th Street, Mall, 10E/EP1Omaha, NE 68102

Jimmy WeverPublic Service comm. Of Yazoo City MS210 South Mound StreetP.O. box 660Yazoo City, MS 39194

Robert JanssenRedbud Energy, LP6700 Alexander Bell DriveSuite 360Columbia, MD 21046

Trent CarlsonRRI Energy Services, Inc.1000 Main StreetHouston, TX 77002

Jeff Brown, Regulatory AffairsShell Energy North America (US), L.P.909 Fannin, Plaza Level OneHouston, TX 77010

Nick BrownSouthwest Power Pool415 N. McKinleySuite 140Little Rock, AR 72205-3020

AdministratorSouthwestern Power AdministrationAttn: 1000-AdministratorOne West 3rd StreetTulsa, OK 74103

L. Earl WatkinsSunflower Electric Power CorporationP.O. Box 980Hayes, KS 67601

Trudy HarperTenaska Power Services Co.1701 E. Lamar Blvd.Suite 100Arlington, TX 76006

Mr. Edd Hargett, General ManagerTex-La Electric Cooperative of Texas, Inc.P.O. Box 631623Nacogdoches, TX 75963

Darrell DorseyThe Board of Public Utilities (Kansas City KS)312 N. 65th StreetKansas City, KS 66102

SPP Member List

Dennis ReedWestar Energy, Inc.818 S. Kansas AvenueTopeka, KS 66612

Grant WilkersonWestar Energy, Inc.818 S. Kansas AvenueTopeka, KS 66612

Gary RouletWestern Farmers Electric CooperativeP.O. Box 429Anadarko, OK 73005-0429

Tim Woolley, Senior Manager, RTO PolicyXcel Energy550 15th Street, Suite 700Denver, CO 80202

SPP State Commissions List

New Mexico Public Regulation CommissionDirector, Utility DivisionP.O. Box 1269Santa Fe, New Mexico 87504-1269

Arkansas Public Service CommissionDirector Electric UtilitiesP.O. Box 400, 1000 Center StreetLittle Rock, Arkansas 72203-0400

Kansas Corporation CommissionExecutive Director1500 SW Arrowhead RoadTopeka, Kansas 66604

Louisiana Public Service CommissionAttn: SecretaryP.O. Box 91154Baton Rouge, Louisiana 70821-9154

Missouri Public Service CommissionUtility Regulatory ManagerGovernor Office Bldg.200 Madison StreetJefferson City, MO 65101

Oklahoma Corporation CommissionStrategic Liaison2101 Lincoln Blvd., Room 311BOklahoma City, OK 73152

Texas Public Utility CommissionDirector of General Law1701 N. Congress, 7th FloorAustin, TX 78701

Addendum 1 to Attachment AE

Violation Relaxation Limit Values (VRLs)

This Addendum 1 to Attachment AE sets forth the Violation Relaxation Limit Values (VRLs) to be used in conjunction with the operation of the SPP Energy Imbalance Service Market.

Violation Category VRL $ Level and Unit of Violation

Operational Constraint (Loading) Limit Block 1

$500 per MW when the loading is greater than 100% and less than or equal to 101% at each network constraint (called operating constraints or OCs)


$750 per MW when the loading is greater than 101% and less than or equal to 102% at each network constraint (called operating constraints or OCs)


$1,000 per MW when the loading is greater than 102% and less than or equal to 103% at each network constraint (called operating constraints or OCs)


$1,250 per MW when the loading is greater than 103% and less than or equal to 104% at each network constraint (called operating constraints or OCs)


$1,500 per MW when the loading is greater than 104% at each network constraint (called operating constraints or OCs)

Resource Ramp Rate Limit $5,000 per MW* at each resource Generation –to-Load Balance $50,000 per MW within each dispatch solutionResource Maximum/Minimum Limit $100,000 per MW at each resource

*Generally as quantified across a five-minute EIS Market deployment interval.

Addendum 1 to Attachment AE

Violation Relaxation Limit Values (VRLs)

This Addendum 1 to Attachment AE sets forth the Violation Relaxation Limit Values (VRLs) to

be used in conjunction with the operation of the SPP Energy Imbalance Service Market.

Violation Category VRL $ Level and Unit of Violation

Operational Constraint (Loading) Limit

Block 1

$1,500 per MW when the of loading is greater than

100% and less than or equal to 101% at each

network constraint (called operating constraints or

OCs)


Block 2

$750 per MW when the loading is greater than



OCs)


Block 3

$1,000 per MW when the loading is greater than



OCs)


Block 4




OCs)


Block 5


104% at each network constraint (called operating

constraints or OCs)

Resource Ramp Rate Limit $5,000 per MW* at each resource

Generation –to-Load Balance $50,000 per MW within each dispatch solution

Resource Maximum/Minimum Limit $100,000 per MW at each resource

*Generally as quantified across a five-minute EIS Market deployment interval.