MINUTES NO. 139 Southwest Power Pool BOARD OF DIRECTORS/MEMBERS COMMITTEE MEETING Teleconference February 23, 2011 Agenda Item 1 - Administrative Items SPP Chair Mr. Jim Eckelberger called the meeting to order at 2:04 p.m. The following Board of Directors/Members Committee members were in attendance or represented by proxy: Ms. Phyllis Bernard, director Mr. Julian Brix, director Mr. Nick Brown, director Mr. Mike Deggendorf, Kansas City Power and Light Mr. Kevin Easley, Grand River Dam Authority Mr. Jim Eckelberger, director Mr. Kelly Harrison, Westar Energy Ms. Cindy Holman, Oklahoma Municipal Power Authority Mr. Rob Janssen, Dogwood Energy Mr. Jeff Knottek, City Utilities of Springfield Mr. Rob Janssen, proxy for Mr. Brett Kruse, Calpine Energy Services Mr. Joshua Martin, director Mr. Steve Parr, Kansas Electric Power Cooperative Mr. Phil Crissup, proxy for Mr. Mel Perkins, OG+E Electric Services Mr. Pat Pope, Nebraska Public Power District Mr. Stuart Solomon, American Electric Power Mr. Noman Williams, Sunflower Electric Power Corporation Mr. Harry Skilton, director Mr. Mike Wise, Golden Spread Electric Ms. Cheryl Robertson called roll, presented proxies and a quorum was declared (Proxies and Attendance – Attachment 1). Agenda Item 2 – SPP Staff’s Recommendation Mr. Paul Suskie presented estimated cost comparison information related to the pending novations for Priority Project’s V-Plan upgrades (Presentation and Novation Agreements – Attachment 2). The information compared the capital structures of all entities involved in each of the pending novations as well as estimated cost impact on transmission customers. It was requested that the Board of Directors approve the following Staff recommendation: 1. Release Sunflower of its obligation pursuant to NTC # 20101 and assign that obligation to ITC Great Plains, and grant the requested novation to ITC Great Plains. 2. Release Mid-Kansas Electric Company (MKEC) of its obligation pursuant to NTC # 20102 and assign that obligation to ITC Great Plains, and grant the requested novation to ITC Great Plains. 3. Release MKEC of its obligations pursuant to NTC # 20102 and # 20120 and assign that obligation to Prairie Wind, and grant the requested novation to Prairie Wind. 4. Release Westar of its obligation pursuant to NTC # 20103 and assign that obligation to Prairie Wind, and grant the requested novation to Prairie Wind. 5. Direct SPP to file the Novation Agreements with FERC.
Transcript
MINUTES NO. 139
Southwest Power Pool
BOARD OF DIRECTORS/MEMBERS COMMITTEE MEETING
Teleconference
February 23, 2011 Agenda Item 1 - Administrative Items
SPP Chair Mr. Jim Eckelberger called the meeting to order at 2:04 p.m. The following Board of Directors/Members Committee members were in attendance or represented by proxy:
Ms. Phyllis Bernard, director Mr. Julian Brix, director Mr. Nick Brown, director Mr. Mike Deggendorf, Kansas City Power and Light Mr. Kevin Easley, Grand River Dam Authority Mr. Jim Eckelberger, director Mr. Kelly Harrison, Westar Energy Ms. Cindy Holman, Oklahoma Municipal Power Authority Mr. Rob Janssen, Dogwood Energy Mr. Jeff Knottek, City Utilities of Springfield Mr. Rob Janssen, proxy for Mr. Brett Kruse, Calpine Energy Services Mr. Joshua Martin, director Mr. Steve Parr, Kansas Electric Power Cooperative Mr. Phil Crissup, proxy for Mr. Mel Perkins, OG+E Electric Services Mr. Pat Pope, Nebraska Public Power District Mr. Stuart Solomon, American Electric Power Mr. Noman Williams, Sunflower Electric Power Corporation Mr. Harry Skilton, director Mr. Mike Wise, Golden Spread Electric
Ms. Cheryl Robertson called roll, presented proxies and a quorum was declared (Proxies and Attendance – Attachment 1). Agenda Item 2 – SPP Staff’s Recommendation
Mr. Paul Suskie presented estimated cost comparison information related to the pending novations for Priority Project’s V-Plan upgrades (Presentation and Novation Agreements – Attachment 2). The information compared the capital structures of all entities involved in each of the pending novations as well as estimated cost impact on transmission customers. It was requested that the Board of Directors approve the following Staff recommendation:
1. Release Sunflower of its obligation pursuant to NTC # 20101 and assign that obligation to ITC Great Plains, and grant the requested novation to ITC Great Plains.
2. Release Mid-Kansas Electric Company (MKEC) of its obligation pursuant to NTC # 20102 and assign that obligation to ITC Great Plains, and grant the requested novation to ITC Great Plains.
3. Release MKEC of its obligations pursuant to NTC # 20102 and # 20120 and assign that obligation to Prairie Wind, and grant the requested novation to Prairie Wind.
4. Release Westar of its obligation pursuant to NTC # 20103 and assign that obligation to Prairie Wind, and grant the requested novation to Prairie Wind.
5. Direct SPP to file the Novation Agreements with FERC.
SPP Board of Directors/Members Committee Minutes February 23, 2011
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Following a brief discussion, Mr. Nick Brown moved to approve Staff’s recommendation and Mr. Harry Skilton seconded the motion. Ms. Robertson called roll for the Members Committee vote, which resulted in unanimous approval. The Board provided votes via email to Ms. Stacy Duckett. The meeting adjourned at 2:22 p.m. Following the meeting, Ms. Duckett announced that the motion passed. Stacy Duckett, Corporate Secretary
Southwest Power Pool, Inc. BOARD OF DIRECTORS/MEMBERS COMMITTEE MEETING
Teleconference February 23, 2011
ATTENDANCE LIST
Name System Phyllis Bernard Director Julian Brix Director Nick Brown Director Jim Eckelberger Director Josh Martin Director Harry Skilton Director Mike Deggendorf KCPL Kevin Easley GRDA Kelly Harrison Westar Energy Cindy Holman OMPA Rob Janssen Dogwood Energy Jeff Knottek City of Springfield Steve Parr KEPCo Phil Crissup OG&E Pat Pope NPPD Stuart Solomon AEP Noman Williams Sunflower Mike Wise Golden Spread Electric Doug Collins OPPD Tom DeBaum KCC Les Dillahunty SPP Bill Dowling Midwest Energy Kip Fox AEP Richard Greffe PUCT Michelle Harris SPP Thomas Hestermann Sunflower Noah Hollis AEP David Hudson Xcel Energy Jim Krajecki CES Jake Langthorn OG&E Elena Larson KCC Sam Loudenslager APSC Mike Moffet Sunflower Carl Monroe SPP Dennis Reed Westar Bill Reid OCC Richard Ross AEP James Sanderson KCC Andrew Schulte KCC
Southwest Power Pool, Inc. BOARD OF DIRECTORS/MEMBERS COMMITTEE MEETING
Teleconference February 23, 2011
ATTENDANCE LIST
Name System Michael Siedschlag NPPD Antonio Smyth AEP Raja Sundararajan AEP Al Taylor ETEC Brian Thumm ITC Great Plains Matt Vermilion AEP Bary Warren Empire Mark Watson Platts Mike Palmer Empire Paul Suskie SPP Pat Bourne SPP Dan Jones SPP Tom Dunn SPP Stacy Duckett SPP
2/17/2011
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Priority Project’s V‐Plan Novation’s Projected Impact on Transmission Customers
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Feb 16, 2011
Pending Novations for V‐Plan Upgrades
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V‐PLAN MAP
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Summary of the Pending Novations
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Present Value of Sum of Total ATRRs for the Life of Six V‐Plan SegmentsSegment #1: 1/2 of Spearville to Comanche, SUNC to ITC
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*Construction by Sunflower and MKEC under these circumstances is apparently unfeasible. This hypothetical case is provided for comparison purposes only.
Segment #2: Second ½ of Spearville to Comanche, MKEC to ITC
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*Construction by Sunflower and MKEC under these circumstances is apparently unfeasible. This hypothetical case is provided for comparison purposes only.
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Segment #3: Comanche to Medicine Lodge, MKEC to ITC
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*Construction by Sunflower and MKEC under these circumstances is apparently unfeasible. This hypothetical case is provided for comparison purposes only.
Segment #4: ½ of Medicine Lodge to Wichita: MKEC to Prairie Wind
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*Construction by Sunflower and MKEC under these circumstances is apparently unfeasible. This hypothetical case is provided for comparison purposes only.
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Segment #5: Second ½ of Medicine Lodge to Wichita, WERE to Prairie Wind
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Segment #6: Medicine Lodge to KS/OK Boarder Towards Woodward, MKEC to Prairie Wind
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*Construction by Sunflower and MKEC under these circumstances is apparently unfeasible. This hypothetical case is provided for comparison purposes only.
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Summary of the ATRR Information
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CWIP v. AFUDC Break Even
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Additional Documentation Provided
• Addendum/Background Information has beenAddendum/Background Information has been compiled and made available.
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Paul Suskie, JD
Senior Vice President, Regulatory Policy and General Counsel
