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Overview of the Transco’s Operation within the Partnership SPP RTO

Transmission Policy. Overview of the Transco’s Operation within the Partnership SPP RTO. SERC Sys Op Conf March 7, 2001. ENTERGY TRANSCO Partnership with SPP. Send inquiries to: Tim Ponseti email: tponset@entergy.com phone: 870-541-3924. AMEREN. AECI. EDE. TVA. SPA. Entergy. OG&E.

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Overview of the Transco’s Operation within the Partnership SPP RTO

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  1. Transmission Policy Overview of the Transco’s Operation within the Partnership SPP RTO SERC Sys Op Conf March 7, 2001

  2. ENTERGY TRANSCO Partnership with SPP Send inquiries to: Tim Ponseti email: tponset@entergy.com phone: 870-541-3924

  3. AMEREN AECI EDE TVA SPA Entergy OG&E BATESVILLE SMEPA CSW SOUCO CLECO CAJUN LEPA LAFA Entergy Interfaces 75 Transmission Interconnections with 14 Systems

  4. The roadmap for future operation of the transmission system has been radically altered by FERC order 2000 “To infinity, and beyond.” Buzz Lightyear

  5. RTO Market Structure for the SPP Partnership RTO is still under development • Reached agreement on a hybrid structure • Team formed (CMSWG) to work out the details • LMP for real-time balancing energy market • Combination of financial rights and physical rights for development of forward market • Not clear how forward market will develop but LMP with financial rights will be the baseline market structure. “In theory, there is no difference between theory and practice. But, in practice, there is.” Jan L.A.van de Snepscheut

  6. The SPP will not be collapsed into a single Control Area (yet?) • A control area is an electrical system bounded by interconnection (tie line) metering and telemetry. It controls its generation directly to maintain its interchange schedule with other control areas and contributes to frequency regulation of the Interconnection • A CA controls its actual interchange and contributes to Interconnection frequency by adjusting its generation through its automatic generation control system (AGC). • The Transco will be the Control Area for the Transco footprint

  7. Ancillary Services under the Partnership RTO • Service RTO Transco • #1 Scheduling  • #2 Voltage  • #3 Regulation  • #4 Imbalance  • #5 Op Reserves spinning  • #6 Op Reserves supplemental  6

  8. Remaining Issues and Key Milestones

  9. 2002 2000 2001 Oct Nov Dec Key Milestones Key Milestones Sourcing/Staffing Begins Assets or operational control transferred to TransCo by TransCo participants Select Facility Sites (Primary, Backup & Headquarters) Begin Selection of TransCo Board of Directors LMP Parallel Operation FERC approval of TransCo IT Shared Corporate System Split TransCo Blueprint Implementation Team Kick-Off Mgt. Team Selected File changes to TransCo rate schedules with FERC TransCo Board of Directors Selected LMP Operational Q4 Q1 Q2 Q3 Q4 TOC/OIC Split Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep T&D IT Split Texas Pilot Mock Market begins EMO Split SPP/TransCo Market Trials Begin TransCo Blueprint Complete RTO Market Rules TransCo independent operation begins RTO Procedures & protocols for Partnership finalized Migrate to new facilities TransCo commercial terms finalized (205 filing) Migrate EMS to Pine Bluff FERC Filing Internal Integration Test for SPP Begins FERC filing (rate schedule proposal) (205 filing) Key Texas Pilot Begins SPP Milestones TransCo Milestones

  10. RTO Day One Operations • Full congestion Management System will not be in place for Day One operations • No FTR/FGRs • Will still use TLRs to resolve congestion • RTO will provide a Balancing Market and Reserve Market. • Regulation Market not in place. CAOs to provide regulation service • SPP will calculate Net Scheduled Interchange every 15 minutes for each control area based on bilateral schedules and deployment of balancing energy. This NSI will be used by each control area to manage their ACE. • Transco will send EMO a “net signal” indicating the energy balance for Entergy Opcos net of IPP generation inside the Opco’s territories

  11. SPP Membership • Entergy has rejoined the SPP now as a Non-Transmission Owner • Ability to participate as members of RTO Teams • Ability to officially vote on issues as any other member • Primary membership will remain at SERC until FERC approval of SPP RTO and Transco • Upon FERC approval, the Transco will become a full member of the SPP RTO • The Transco plans to remain active in SERC and maintain some type of active associate membership.

  12. Entergy TRANSCO Ops TRNG DESK XMSN DESK SCHED DESK A SCHED DESK B GIS DESK TAG TS DESK RTA DESK Shift Mgr DESK

  13. ENTERGY TRANSCO Partnership with SPP Send inquiries to: Tim Ponseti email: tponset@entergy.com phone: 870-541-3924

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