Minutes No. [33]
Southwest Power Pool
ECONOMIC STUDIES WORKING GROUP
July 28th, 2010
Embassy Suites Downtown/Old Market
555 S. 10th Street
Omaha, Nebraska
• Summary of Action Items •
1. SPP Staff will incorporate ITP Manual changes and publish another draft to the ESWG by the end
of the first week in August. This draft will include line numbers.
2. Black & Veatch will provide a summary of the resource plans for each future for MOPC
presentation as soon as possible.
3. SPP Staff will distribute the ESWG approved resource plan to MOPC members for their review as
soon as possible.
4. Black & Veatch will finalize the resource plan following changes made at the meeting and submit
modeling data to SPP staff on Thursday of this week. The specific changes identified in the
meeting are listed below:
a. Futures 1, 2, 3 and 4 – move the GRDA Boomer Lake Station CC to Horseshoe Lake or
Seminole in OGE.
5. SPP staff will change the location of the new windfarm locations in Bates County, MO to
Nodaway County, MO and combine the capacity into one location.
6. SPP Staff will work with stakeholders one-on-one to facilitate a review of the PROMOD
transmission model.
• Summary of Motions •
1. The posted agenda was adopted with no changes.
2. The base (aka “business as usual”) case resource plan was endorsed with changes identified at
the meeting.
3. The future case’s resource plans were endorsed with changes identified at the meeting.
4. The wind siting locations were approved with a change identified at the meeting.
Minutes No. [33]
•
M INUT E S
•
Agenda Item 1 – Administrative Items
SPP Chair Alan Myers called the meeting to order at 8:05 a.m. The following members were in
attendance:
Alan Myers
Bruce Merrill
Bruce Walkup
David Hudson
Leon Howell
Doug Kallesen
Greg Sweet
Jason Atwood
Paul Dietz
ITC Great Plains
Lincoln Electric
Arkansas Electric Cooperative Co
Xcel Energy
OG+E Electric Services
Nebraska Public Power District
Empire District Electric Co.
Kelson Energy
Westar Energy, Inc.
Jim Sanderson
Mike Proctor
Kansas Corporation Commission
Consultant to SPP Regional State Committee
It was noted that Terri Gallup held a proxy for Kip Fox and Tom Hestermann held a proxy for Al Tamimi.
Motion: The agenda was reviewed and David Hudson made a motion for the ESWG to approve the.
The motion was seconded by Terri Gallup and it passed unopposed with no abstentions.
Agenda Item 2 – Finalize Resource Plans for all futures
a. Finalize Conventional Resource Siting for all futures
Gary Wilmes from Black & Veatch presented the group with the generation siting, fuel types and
capacities. He discussed some of the changes that had been made since the last meeting and
conducted a line-by-line review of the posted file ITP20 BlackVeatch Site Descriptions 072710.xls.
Discussion arose concerning the low allocation of resources in the OG+E zone and it was resolved that a
change would be made such that the GRDA allocated Boomer Lake Station combined cycle plant would
be changed to a Horseshoe Lake or Seminole combined cycle plant. This effectively moves 550-MW of
capacity from GRDA to OG+E. The allocation of the Boomer Lake Station capacity to GRDA may have
arisen because the GRDA partial ownership of Redbud 2 was not reflected in the Black & Veatch models.
This change was to be made in all four futures.
Motion: David Hudson motioned for the group to endorse the siting plan for the basecase and provide for
comment to the full MOPC group. (Includes explicit changes identified at the meeting.) The motion was
seconded by Terri Gallup and it passed unopposed with no abstentions.
Questions about the placement of two 180-MW combustion turbines in the Empire footprint for futures 2
and 4 arose because it was generally thought that such quick-response units would be better placed in
the western side of SPP nearer to the windfarms. Paul Dietz noted that the group must be careful when
representing this resource plan siting method because we are not studying wind’s operational
characteristics nor accounting for the Ancillary Service requirements that will arise as more wind is added
to the system and therefore a placement of turbines closer to the west is not a useful guideline in this
plan. Greg Sweet and Tom Hestermann weighed in on the placement of the turbines and it was decided
that the group was comfortable with the original location in Empire. No changes were requested.
Minutes No. [33]
Motion: David Hudson motioned for the group to endorse the siting plan for futures 2 through 4 and
provide for comment to the full MOPC group. (Includes explicit changes identified at the meeting.) The
motion was seconded and it passed unopposed with no abstentions.
b. Finalize Renewable Resource Siting for all Futures
Tim McGinnis presented the group with the locations, capacities, energies and NREL shape profiles of
the existing and new wind sites. Tim reviewed the changes that had been made since the last meeting
and walked the group through a review of the posted document ITP20 ESWG Wind Siting Plan
072810.xls.
Clarification of wind sites that exist today but will be expanded in the futures was requested as well as a
change in the location of the Bates County, MO windfarm to somewhere closer to the north-west corner of
the state.
A discussion of the appropriate use of the NREL wind profiles was initiated by Steve Gaw and Tim
McGinnis communicated that his discussions with Matt Schueger, a consultant dealing with the NREL
datasets, reached consensus that the proposed method of scaling the selected wind site profiles was
reasonable.
Motion: David Hudson motioned for the group to approve the wind siting as modified in the meeting. The
motion was seconded by Doug Kallesen and it passed unopposed with no abstentions.
Agenda Item 3 – ITP Manual Revisions
Brett Hooton presented the group with the latest draft copy of the ITP Manual. The group made edits and
changes to the manual and commissioned Brett to complete another draft with their comments. A call
was scheduled for August 10th to hammer out the details of the manual.
Agenda Item 4 – Analysis Process Overview
Charles Cates provided a high-level overview of staff’s intentions regarding the August 12th planning
workshop and the schedule thereafter. He explained that the workshop will include a presentation of a
least-cost transmission plan for the Business-As-Usual case. Discussion centered on the definition of
“least-cost” and its place in the ITP scoping documents. Some stakeholders indicated that the term didn’t
seem to mesh with the ITP plans at first, but that after some thought it made more sense. Discussion was
cut short due to time and will be assumed again during the ITP workshop scheduled in August.
Agenda Item 5 – Schedule Update
Tim Miller encouraged a discussion of future ESWG meetings. Meetings through the end of September
where scheduled.
 August 10th 2pm-5pm teleconference with WebEx
 August 31st 10am-4pm face-to-face meeting in Dallas
 September 13th 2pm-4pm teleconference
 September 23rd 10am-4pm at AEP’s office in Dallas
Other Items
Doug Kallesen proposed that a review of the PROMD model be considered. Charles Cates responded
that, due to the tight schedule, staff felt it best for any data reviews to be pursued one-on-one with
stakeholders as they had concerns. The conversation was cut short due to time and Doug indicated that
he would follow up with staff and the group.
Minutes No. [33]
Respectfully Submitted,
Tim Miller
Minutes No. [33]
Minutes No. [33]
Phone Attendees
Jason Atwood
Greg Sweet
Leon Howell
Bruce Walkup
Kelson Energy
Empire District Electric Co.
OG+E electric Services
Arkansas Electric Cooperative Co
Mark Griffith
Bennie Weeks
Tim Nelson
Nathan McNeil
Black & Veatch Corporation
Xcel Energy
Kansas City Power & Light Company
Midwest Energy, Inc.
Cary Frizzell
Brett Hooton
Tim McGinnis
Southwest Power Pool, Inc.
Southwest Power Pool, Inc.
Southwest Power Pool, Inc.