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Updated 1/28/2011

Updated 1/28/2011. Cost Allocations and Affordability of Tariffs. March 8, 2011. Jay Caspary jcaspary@spp.org · 501.614.3220. 61 SPP Members. Members in 9 states. Arkansas Kansas Louisiana Mississippi Missouri Nebraska New Mexico Oklahoma Texas.

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Updated 1/28/2011

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  1. Updated 1/28/2011

  2. Cost Allocations and Affordability of Tariffs March 8, 2011 Jay Casparyjcaspary@spp.org · 501.614.3220

  3. 61 SPP Members

  4. Members in 9 states Arkansas Kansas Louisiana Mississippi Missouri Nebraska New Mexico Oklahoma Texas Provide services to Entergy on contract basis (ICT)

  5. Regulatory Environment Incorporated in Arkansas as 501(c)(6) non-profit corporation FERC - Federal Energy Regulatory Commission Regulated public utility Regional Transmission Organization NERC - North American Electric Reliability Corporation Founding member Regional Entity

  6. Regional State Committee • Retail regulatory commissioners:Louisiana maintains active observer status • Functions • Cost allocation • Ensure adequate supply • Market cost/benefit analyses

  7. Who pays for transmission? Highway/Byway 7

  8. How does SPP impact you? • SPP cost = 37¢ of $100 residential utility bill • Cost to typical residential customer for $1 billion of incremental transmission is ~$1.34 per month • 2005 independent analysis by Charles River Associates: • $500,000 cost-benefit study • On behalf of state regulatory commissions • 270% ROI for SPP services over the next 10 years

  9. Rate Impacts Going Forward • Approved SPP transmission plans represent in excess of $5B of new investment in new and upgraded facilities through 2017. • SPP’s Integrated Marketplace will cost $80M+ but its benefits have been shown to exceed the costs due to consolidated balancing authorities, as well as day ahead and ancillary services markets. • Its very important to look at the benefits of transmission plans and market developments and not just the cost.

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