December 3, Southwest Power Pool, Inc., Docket No. ER13- Agreement and Network Operating Agreement

Transcription

1 The Honorable Kimberly D. Bose Secretary Federal Energy Regulatory Commission 888 First Street NE Washington, DC December 3, 202 Re: Southwest Power Pool, Inc., Docket No. ER3- Submission of Amended Network Integration Transmission Service Agreement and Network Operating Agreement Dear Secretary Bose: Pursuant to section 205 of the Federal Power Act, 6 U.S.C. 824d, and section 35.3 of the Federal Energy Regulatory Commission s ( Commission ) regulations, 8 C.F.R. 35.3, Southwest Power Pool, Inc. ( SPP ) submits the following: () an executed Service Agreement for Network Integration Transmission Service ( Service Agreement ) between SPP as Transmission Provider and Kansas Power Pool ( KPP ) as Network Customer ( Fourth Revised KPP Service Agreement ); and (2) an executed Network Operating Agreement ( NOA ) between SPP as Transmission Provider, KPP as Network Customer, and Midwest Energy, Inc. ( Midwest ), Mid-Kansas Electric Company, LLC ( MKEC ), and Westar Energy, Inc. ( Westar ) as Host Transmission Owners ( Fourth Revised KPP NOA ). The Fourth Revised KPP Agreements modify and supersede the Service Agreement and NOA between the Parties currently pending before the Commission in Docket No. ER SPP is submitting this filing 2 The Fourth Revised KPP Service Agreement and Fourth Revised KPP NOA are referred to collectively as the Fourth Revised KPP Agreements, and SPP, KPP, Midwest, MKEC, and Westar are referred to collectively as the Parties. The Fourth Revised KPP Agreements have been designated as Fourth Revised Service Agreement No See Submission of Amended Network Integration Transmission Service Agreement and Network Operating Agreement of Southwest Power Pool, Inc., Docket No. ER (Nov. 9, 202) ( November 9 Filing ). The Service Agreement and NOA submitted in the November 9 Filing are referred to collectively as the November 9 Agreements and individually as the November 9 Service Agreement and the November 9 NOA. The November 9 Filing amends the Service Agreement and NOA submitted on September 28, 202 in ER See Submission of Network Integration (continued... )

2 The Honorable Kimberly D. Bose December 3, 202 Page 2 because the Fourth Revised KPP Agreements include terms and conditions that do not conform to the standard forms of service agreements in the Open Access Transmission Tariff ( SPP Tariff ). 3 I. Background On May 2, 20, SPP submitted an unexecuted Service Agreement and NOA to the Commission between the Parties. 4 The Original KPP Service Agreement was filed unexecuted due to a dispute between KPP and MKEC over the Service and Operating Agreements for Local Delivery Service ( SOALDS ) in Attachment D of the Original KPP Service Agreement. In addition, the Original KPP NOA was filed unexecuted because Midwest declined to execute the Original KPP NOA because SPP declined to include additional language in Section 9.2 of the Original KPP NOA that Midwest had requested. At the time, SPP did not include the requested language because SPP had insufficient time to evaluate its impacts. On July, 20, the Commission conditionally accepted the Original KPP Agreements subject to a compliance filing to remove language in Sections 8.5, 8.6, and 8.2 of the Original KPP Service Agreement. 5 On August, 20, SPP submitted its compliance filing. 6 Westar also filed a request for rehearing of the July Order with (... continued) Transmission Service Agreement and Network Operating Agreement of Southwest Power Pool, Inc., Docket No. ER (Sept. 28, 202) ( September 28 Filing ). The Service Agreement and NOA submitted in the September 28 Filing are referred to collectively as the September 28 Agreements and individually as the September 28 Service Agreement and the September 28 NOA See SPP Tariff at Attachment F ( pro forma Service Agreement ) and Attachment G ( pro forma NOA ), collectively the pro forma Agreements. See Submission of Network Integration Transmission Service Agreement of Southwest Power Pool, Inc., Docket No. ER (May 2, 20). These agreements are referred to collectively as the Original KPP Agreements and individually as the Original KPP Service Agreement and the Original KPP NOA. See Sw. Power Pool, Inc., 36 FERC 6,003, PP 43, 44 (20) ( July Order ). Compliance Filing of Southwest Power Pool, Inc., Docket No. ER (Aug., 20) ( August Compliance Filing ).

3 The Honorable Kimberly D. Bose December 3, 202 Page 3 respect to the Commission s decision requiring SPP to remove the language related to distribution losses in Section 8.6 of the Original KPP Service Agreement. 7 On September 29, 20, the Commission issued an Order on Rehearing and Compliance, in which it granted Westar s Request for Rehearing and conditionally accepted SPP s August Compliance Filing, effective April, In the September 29 Order, the Commission directed SPP to modify further the Original KPP Service Agreement to specify in Section 8.6 of Attachment that composite loss percentages shall exclude transmission losses. 9 Consequently, SPP submitted its compliance filing to further revise Section 8.6 of the Original KPP Service Agreement on October 2, The Commission accepted the October 2 Compliance Filing on December 7, 20. Following the July Order, the Original KPP Agreements have been updated three times. First, on June 2, 202, 2 the Commission accepted the First Revised KPP Agreements which updated the delivery points in Appendix 3 of the Original KPP Service Agreement and the Original KPP NOA to conform to the pro forma NOA. Second, on August 23, 202, 3 the Commission accepted the Second Revised KPP Agreements which updated a delivery point in Appendix 3 of the First Revised KPP Service Agreement. Third, in the September 28 Filing, the Parties revised the Second Revised KPP Agreements to add a network resource in Appendix and update delivery points in Appendix 3 with a requested effective date of September, Request for Rehearing of Westar Energy, Inc., Docket No. ER (Aug., 20) ( Request for Rehearing ). See Sw. Power Pool, Inc., 36 FERC 6,223 (20) ( September 29 Order ). September 29 Order at PP 3, 4. Compliance Filing of Southwest Power Pool, Inc., Docket No. ER (Oct. 2, 20) ( October 2 Compliance Filing ). Sw. Power Pool, Inc., Letter Order, Docket No. ER (Dec. 7, 20) ( December 7 Letter Order ). Sw. Power Pool, Inc., Letter Order, Docket No. ER (June 2, 202) ( June Letter Order ). The agreements accepted in the June Letter Order are referred to collectively as the First Revised KPP Agreements and individually as the First Revised KPP Service Agreement and First Revised KPP NOA. Sw. Power Pool, Inc., Letter Order, Docket No. ER (Aug. 23, 202) ( August Letter Order ). The agreements accepted in the August Letter Order are referred to collectively as the Second Revised KPP Agreements and individually as the Second Revised KPP Service Agreement and Second Revised KPP NOA.

4 The Honorable Kimberly D. Bose December 3, 202 Page 4 On October 9, 202, MKEC filed a Joint Motion for Leave to Intervene ( MKEC Motion ) in ER In the MKEC Motion, MKEC noted that the SOALDS included in Attachment D of the September 28 Filing were not the correct versions and that SPP would amend the filing to include the correct agreements. Since the MKEC Motion, KPP and MKEC agreed to remove the SOALDS from the September 28 Filing. Accordingly, the Parties revised the September 28 Service Agreement to remove the SOALDS in Attachment D and to update the language in Section 8.9 of Attachment to reflect that Wholesale Distribution Service Charges will be charged in accordance to agreements on file at the Kansas Corporation Commission ( KCC ) and filed the updated agreements in the November 9 Filing with a requested effective date of September, 202. The November 9 Filing is currently pending before the Commission. II. Description of and Justification for the Non-Conforming Language in the Fourth Revised KPP Agreements Since the November 9 Filing, the Parties revised the November 9 Agreements to update a delivery point in Appendix 3 and executed the Fourth Revised KPP Service Agreement. SPP submits the Fourth Revised KPP Service Agreement and the Fourth Revised KPP NOA as the Fourth Revised KPP Agreements. The Fourth Revised KPP Agreements conform to the pro forma Agreements, except for the non-conforming language in the Fourth Revised KPP Service Agreement described below, which is similar to the non-conforming language included in the November 9 Service Agreement and previous iterations of the agreements. 5 First, Section 8.6 of Attachment of the pro forma Service Agreement contains a fill-in-the-blank provision for Real Power Losses Distribution. In Section 8.6 of Attachment of the Fourth Revised KPP Service Agreement, the Parties insert language specifying that [t]he Network Customer shall replace all distribution losses in accordance with Westar Energy s Open Access Transmission Tariff, Section 28.5, based upon the location of each delivery point meter located on distribution facilities and that the composite loss percentages in Section 28.5 shall exclude transmission losses. 6 The inserted language is just and reasonable because it provides the Parties with detail on how distribution losses will be calculated in accordance with a Commission-approved tariff Joint Motion for Leave to Intervene of Sunflower Electric Power Corporation and Mid-Kansas Electric Company, LLC, Docket No. ER (Oct. 9, 202). The Fourth Revised KPP NOA does not contain any non-conforming language and conforms to the pro forma NOA. See Fourth Revised KPP Service Agreement at Attachment, 8.6.

5 The Honorable Kimberly D. Bose December 3, 202 Page 5 (i.e. Westar s Open Access Transmission Tariff). This language is identical to the language that was included in the Original KPP Service Agreement as revised by the October 2 Compliance Filing ordered by the Commission in the September 29 Order 7 and accepted by the Commission in the December 7 Letter Order. 8 Second, Appendix 3 of the Fourth Revised KPP Service Agreement, which identifies the pertinent delivery points located on Westar s distribution facilities, also contains non-conforming language. Specifically, the Parties include additional information beyond the name, ownership, and voltage of the delivery point contemplated by the chart in Appendix 3 of the pro forma Service Agreement. The additional information, which includes the SPP bus number, delivery point number, and a footnote indicating that the voltage of the delivery point is the voltage where the meter is physically located, is necessary and benefits the Parties because it provides additional detail regarding the delivery points. The Commission previously has accepted agreements submitted by SPP with similar language, including the Second Revised KPP Service Agreement. 9 Third, Section 8.8 contains the following non-conforming language: [M]aximum firm import capability limitations will be enforced for Network Customer load both before and after completion of required network upgrades as detailed in Attachment B and Attachment C respectively subject to later re-studies, facility improvements, and/or modifications to Network Customer's network loads and/or resources. These limitations are applicable during peak loading conditions as identified by Midwest Energy and Westar Energy. 20 Attachments B and C are non-conforming attachments to the Fourth Revised KPP Service Agreement. The language in Section 8.8 and Attachments B and C is necessary to provide for the maximum firm import capability limitations associated with KPP s See September 29 Order at P 3. See December 7 Letter Order. This language also appears in the Second Revised KPP Service Agreement, which the Commission accepted in the August Letter Order. August Letter Order; June Letter Order; Sw. Power Pool, Inc., Letter Order, Docket Nos. ER , et al. (Nov. 2, 20); Sw. Power Pool, Inc., Letter Order, Docket No. ER (Aug. 20, 200); Sw. Power Pool, Inc., Letter Order, Docket No. ER (Aug. 20, 200). See Fourth Revised KPP Service Agreement at Attachment, 8.8.

6 The Honorable Kimberly D. Bose December 3, 202 Page 6 network service. This language is virtually identical to language that the Commission accepted in a prior order. 2 The Commission previously has accepted agreements submitted by SPP with similar language, including the Second Revised KPP Service Agreement. 22 Fourth, Section 8.9 of Attachment to the Fourth Revised KPP Service Agreement contains language indicating that Wholesale Distribution Service Charges for all of KPP s load on the Westar transmission system will be calculated pursuant to an agreement, currently in effect, between Westar and KPP ( Ancillary Services Agreement ). 23 This language is consistent with Schedule 0 of the SPP Tariff, which provides that [a]ll rates and charges for Wholesale Distribution Service shall be on file with the appropriate agency as required by law or regulation. 24 Section 8.4. of Attachment of the Fourth Revised KPP Agreement similarly references the Ancillary Services Agreement. Specifically, the additional language provides that the ancillary services initially will be self-supplied by KPP utilizing the Ancillary Services Agreement, subject to change pursuant to the Ancillary Services Agreement. The Commission has accepted Service Agreements submitted by SPP that contained similar language, including the Second Revised KPP Service Agreement. 25 Finally, Section 8.9 of Attachment to the Fourth Revised KPP Service Agreement further provides that Wholesale Distribution Service Charges for all of KPP s load on MKEC s transmission system, if any, are specified in the agreements approved by the Kansas Corporation Commission ( KCC ) in KCC Docket No. - GIME-597-GIE and on file with the KCC, as they may be amended by order of the KCC from time to time. 26 Section 8.9 also provides that the monthly rate for Wholesale Distribution Service Charges shall be as specified in the MKEC Open Access Transmission Tariff approved by the KCC in KCC Docket No. 2-MKEE-650-TAR and See Sw. Power Pool, Inc., 3 FERC 6,070 (200). See August Letter Order; see also June Letter Order. On September 2, 2008, SPP filed the Ancillary Services Agreement, SPP Service Agreement No. 36, which the Commission accepted on October 28, Sw. Power Pool, Inc., Letter Order, Docket No. ER (Oct. 28, 2008). See SPP Tariff at Schedule 0. See August Letter Order; see also June Letter Order; July Order; Sw. Power Pool, Inc., 3 FERC 6,070 (200); Sw. Power Pool, Inc., Letter Order, Docket Nos. ER and -00 (June 23, 2008). See Fourth Revised KPP Service Agreement at Attachment, 8.9.

7 The Honorable Kimberly D. Bose December 3, 202 Page 7 on file with the KCC, as it may be amended by order of the KCC from time to time. 27 This language is consistent with Schedule 0 of the SPP Tariff, which provides that [a]ll rates and charges for Wholesale Distribution Service shall be on file with the appropriate agency as required by law or regulation. 28 In addition, MKEC and KPP requested the inclusion of this language and it is identical to the language in the November 9 Service Agreement. III. Effective Date and Waiver SPP requests an effective date of November, 202, for the Fourth Revised KPP Agreements. To permit such an effective date, SPP requests a waiver of the Commission s 60-day notice requirement set forth at 8 C.F.R Waiver is appropriate because the Fourth Revised KPP Agreements are being filed within 30 days of the commencement of service. 29 IV. Additional Information A. Information Required by Section 35.3 of the Commission s Regulations, 8 C.F.R. 35.3:. Documents submitted with this filing: In addition to this transmittal letter, SPP is submitting the following: (a) (b) A clean copy of the Fourth Revised KPP Agreements; and A redlined copy of the Fourth Revised KPP Agreements. 2. Effective Date: See Fourth Revised KPP Service Agreement at Attachment, 8.9. See SPP Tariff at Schedule 0. See Prior Notice and Filing Requirements Under Part II of the Federal Power Act, 64 FERC 6,39, at 6,983-84, order on reh g, 65 FERC 6,08 (993) (the Commission will grant waiver of the 60-day prior notice requirement if service agreements are filed within 30 days after service commences. ); see also 8 C.F.R. 35.3(a)(2); Sw. Power Pool, Inc., 3 FERC 6,070 (200) (Accepting amended service agreements, and allowing the amended agreements to be effective as of the dates requested in the original filing); Sw. Power Pool, Inc., Letter Order, Docket Nos. ER and -00 (Nov. 7, 2009) (same).

8 The Honorable Kimberly D. Bose December 3, 202 Page 8 As discussed herein, SPP respectfully requests that the Commission accept the Fourth Revised KPP Agreements with an effective date of November, Service: SPP is serving a copy of this filing on the representatives the Parties listed in the Fourth Revised KPP Agreements. 4. Basis of Rate: B. Communications: All charges will be determined in accordance with the SPP Tariff and the Fourth Revised KPP Agreements. Copies of this filing have been served upon all parties to the Fourth Revised KPP Agreements. Any correspondence regarding this matter should be directed to: Tessie Kentner Attorney Southwest Power Pool, Inc. 20 Worthen Drive Little Rock, AR Telephone: (50) tkentner@spp.org Nicole Wagner Manager - Regulatory Policy Southwest Power Pool, Inc. 20 Worthen Drive Little Rock, AR Telephone: (50) jwagner@spp.org V. Conclusion For all the foregoing reasons, SPP respectfully requests that the Commission accept the Fourth Revised KPP Agreements with an effective date of November, 202. Respectfully submitted, /s/ Tessie Kentner Tessie Kentner Attorney for Southwest Power Pool, Inc.

9 Southwest Power Pool, Inc. Fourth Revised Service Agreement No. 298 SERVICE AGREEMENT FOR NETWORK INTEGRATION TRANSMISSION SERVICE BETWEEN SOUTHWEST POWER POOL AND KANSAS POWER POOL. This Network Integration Transmission Service Agreement ("Service Agreement") is entered into this st day of November 202, by and between Kansas Power Pool ("Network Customer" or KPP ), and Southwest Power Pool, Inc. ("Transmission Provider" or SPP ). The Network Customer and Transmission Provider shall be referred to individually as Party and collectively as "Parties." WHEREAS, the Transmission Provider has determined that the Network Customer has made a valid request for Network Integration Transmission Service in accordance with the Transmission Provider s Open Access Transmission Tariff ("Tariff") filed with the Federal Energy Regulatory Commission ("Commission") as it may from time to time be amended; WHEREAS, the Transmission Provider administers Network Integration Transmission Service for Transmission Owners within the SPP Region and acts as agent for the Transmission Owners in providing service under the Tariff; the Tariff; and WHEREAS, the Network Customer has represented that it is an Eligible Customer under WHEREAS, the Parties intend that capitalized terms used herein shall have the same meaning as in the Tariff. NOW, THEREFORE, in consideration of the mutual covenants and agreements herein, the Parties agree as follows: , ,

10 .0 The Transmission Provider agrees during the term of this Service Agreement, as it may be amended from time to time, to provide Network Integration Transmission Service in accordance with the Tariff to enable delivery of power and energy from the Network Customer s Network Resources that the Network Customer has committed to meet its load. 2.0 The Network Customer agrees to take and pay for Network Integration Transmission Service in accordance with the provisions of Parts I, III and V of the Tariff and this Service Agreement with attached specifications. 3.0 The terms and conditions of such Network Integration Transmission Service shall be governed by the Tariff, as in effect at the time this Service Agreement is executed by the Network Customer, or as the Tariff is thereafter amended or by its successor tariff, if any. The Tariff, as it currently exists, or as it is hereafter amended, is incorporated in this Service Agreement by reference. In the case of any conflict between this Service Agreement and the Tariff, the Tariff shall control. The Network Customer has been determined by the Transmission Provider to have a Completed Application for Network Integration Transmission Service under the Tariff. The completed specifications are based on the information provided in the Completed Application and are incorporated herein and made a part hereof as Attachment. 4.0 Service under this Service Agreement shall commence on such date as it is permitted to become effective by the Commission. This Service Agreement shall be effective through June, Thereafter, it will continue from year to year unless terminated by the Network Customer or the Transmission Provider by giving the other one-year advance written notice or by the mutual written consent of the Transmission Provider and Network Customer. Upon termination, the Network Customer remains responsible for any outstanding charges including all costs incurred and apportioned or assigned to the Network Customer under this Service Agreement , ,

11 5.0 The Transmission Provider and Network Customer have executed a Network Operating Agreement as required by the Tariff. 6.0 Any notice or request made to or by either Party regarding this Service Agreement shall be made to the representative of the other Party as indicated below. Such representative and address for notices or requests may be changed from time to time by notice by one Party or the other. Southwest Power Pool, Inc. (Transmission Provider): Tessie Kentner Attorney 20 Worthen Drive Little Rock, AR Address: tkentner@spp.org Phone Number: Network Customer: CEO/General Manager Kansas Power Pool 200 W. Douglas, Suite 60 Wichita, KS Phone Number: This Service Agreement shall not be assigned by either Party without the prior written consent of the other Party, which consent shall not be unreasonably withheld. However, either Party may, without the need for consent from the other, transfer or assign this Service Agreement to any person succeeding to all or substantially all of the assets of such Party. However, the assignee shall be bound by the terms and conditions of this Service Agreement , ,

12 8.0 Nothing contained herein shall be construed as affecting in any way the Transmission Provider s or a Transmission Owner s right to unilaterally make application to the Federal Energy Regulatory Commission, or other regulatory agency having jurisdiction, for any change in the Tariff or this Service Agreement under Section 205 of the Federal Power Act, or other applicable statute, and any rules and regulations promulgated thereunder; or the Network Customer's rights under the Federal Power Act and rules and regulations promulgated thereunder. 9.0 By signing below, the Network Customer verifies that all information submitted to the Transmission Provider to provide service under the Tariff is complete, valid and accurate, and the Transmission Provider may rely upon such information to fulfill its responsibilities under the Tariff. IN WITNESS WHEREOF, the Parties have caused this Service Agreement to be executed by their respective authorized officials. TRANSMISSION PROVIDER NETWORK CUSTOMER Signature /s/ Carl Monroe Signature /s/ Mark Chesney Printed Name Carl Monroe Printed Name Mark Chesney Title EVP & COO Title CEO/GM Date Date Nov , ,

13 ATTACHMENT TO THE NETWORK INTEGRATION TRANSMISSION SERVICE AGREEMENT BETWEEN SOUTHWEST POWER POOL AND KANSAS POWER POOL SPECIFICATIONS FOR NETWORK INTEGRATION TRANSMISSION SERVICE.0 Network Resources The Network Resources are listed in Appendix. 2.0 Network Loads The Network Load consists of the bundled native load or its equivalent for the Network Customer load connected to Mid-Kansas Electric Company, LLC s ( Mid-Kansas ) transmission system, Midwest Energy, Inc. s ( Midwest Energy ) transmission system, and Westar Energy, Inc. s ( Westar Energy ) transmission system, as listed in Appendix 3. The Network Customer s Network Load shall be measured on an hourly integrated basis, by suitable metering equipment located at each connection and delivery point, and each generating facility. The meter owner shall cause to be provided to the Transmission Provider, Network Customer and applicable Transmission Owner, on a monthly basis such data as required by Transmission Provider for billing. The Network Customer s load shall be adjusted, for settlement purposes, to include applicable Transmission Owner transmission and distribution losses, as applicable, as specified in Sections 8.5 and 8.6, respectively. For a Network Customer providing retail electric service pursuant to a state retail access program, profiled demand data, based upon revenue quality non-idr meters may be substituted for hourly integrated demand data. Measurements taken and all metering equipment shall be in accordance with the Transmission Provider s standards and practices for similarly determining the Transmission Provider s load. The actual hourly Network Loads, by delivery point, internal generation site and point where power may flow to and from the Network Customer, with separate readings for each direction of flow, shall be provided. 3.0 Affected Control Areas and Intervening Systems Providing Transmission Service , ,

14 The affected control area is Sunflower Electric Power Corporation and Westar Energy. The intervening system providing transmission service are none. 4.0 Electrical Location of Initial Sources See Appendix. 5.0 Electrical Location of the Ultimate Loads The loads of Kansas Power Pool, identified in Section 2.0 hereof as the Network Load are electrically connected to the Mid-Kansas transmission system, the Midwest Energy transmission system, and the Westar Energy transmission system. 6.0 Delivery Points The delivery points are the interconnection points of Kansas Power Pool, identified in Section 2.0 as the Network Load. 7.0 Receipt Points The Points of Receipt are listed in Appendix Compensation Service under this Service Agreement may be subject to some combination of the charges detailed below. The appropriate charges for individual transactions will be determined in accordance with the terms and conditions of the Tariff. 8. Transmission Charge Monthly Demand Charge per Section 34 and Part V of the Tariff. Network loads connected to the Westar Energy transmission system are based on the charges for the Westar Energy pricing zone, network loads connected to the Midwest Energy transmission system are based on the charges for the Midwest Energy pricing zone, and network loads connected to the Mid-Kansas Electric Company transmission system are based on the charges for the Mid-Kansas Electric Company pricing zone , ,

15 8.2 System Impact and/or Facility Study Charge Studies may be required in the future to assess the need for system reinforcements in light of the ten-year forecast data provided. Future charges, if required, shall be in accordance with Section 32 of the Tariff. 8.3 Direct Assignment Facilities Charge System reinforcements are required to address the City of Kingman s 6 MW path limit as part of Attachment D to allow for SPP Network Integration Transmission Service to Kingman s forecasted load. Future charges, if required shall be in accordance with Mid- Kansas Open Access Transmission Tariff and/or the Mid-Kansas Tariff. The following System reinforcements have been identified in SPP-2009-AGP2 to address the City of Kingman's 6 MW path limit. Alternatives to these system reinforcements would be subject to mutual agreement between the Network Customer and Mid-Kansas and SPP. Name Description Transmission Owner Pratt 5/34.5kV Transformer Install new 5/34.5 kv TXF rated at 25/30/37.5 MVA at Pratt 5 kv Substation to address 34.5kV distribution limitations to address 34.5kV distribution limitations Date Required in Service Estimated Engineering and Construction SUNC 8//200 $2,000,000 Cunningham - Pratt 34.5kV CKT Cunningham Voltage Regulator Rebuild and reconductor 5 miles of 34.5-kV Line with T2 Raven (T2 4/0 ACSR) from Pratt to the Cunningham metering station to address 34.5kV distribution limitations Replace existing voltage regulator with a 8 MVA rated voltage regulator SUNC 8//200 $4,64,600 SUNC 8//200 $250, , ,

16 8.4 Ancillary Service Charges 8.4. The following Ancillary Services are required under this Service Agreement. a) Scheduling, System Control and Dispatch Service per Schedule of the Tariff. b) Tariff Administration Service per Schedule -A of the Tariff. c) Reactive Supply and Voltage Control from Generation Sources Service per Schedule 2 of the Tariff. d) Regulation and Frequency Response Service per Schedule 3 of the Tariff. e) Energy Imbalance Service per Schedule 4 of the Tariff. f) Operating Reserve - Spinning Reserve Service per Schedule 5 of the Tariff. g) Operating Reserve - Supplemental Reserve Service per Schedule 6 of the Tariff. For Network Customer s load on Westar Energy s transmission system: The Ancillary Services may initially be self-supplied by the Network Customer utilizing the Service Agreement for Ancillary Services and Distribution Facilities (SPP Service Agreement No. 36) currently in effect between Westar Energy and Kansas Power Pool, subject to change pursuant to that agreement, and in accordance with Sections through 8.4.4, with the exception of the Ancillary Services for Schedules, -A, and 2, which must be purchased from the Transmission Provider. For Network Customer s load on Mid-Kansas transmission system: The Network Customer has entered into a Service Agreement for Ancillary Services with Mid-Kansas that was executed contemporaneously with this Agreement, which is included as Appendix In accordance with the Tariff, when the Network Customer elects to self-supply or have a third party provide Ancillary Services, the Network Customer shall indicate the source for its Ancillary Services to be in effect for the upcoming calendar year in its annual forecasts. If the Network Customer fails to include this , ,

17 information with its annual forecasts, Ancillary Services will be purchased from the Transmission Provider in accordance with the Tariff When the Network Customer elects to self-supply or have a third party provide Ancillary Services and is unable to provide its Ancillary Services, the Network Customer will pay the Transmission Provider for such services and associated penalties in accordance with the Tariff as a result of the failure of the Network Customer s alternate sources for required Ancillary Services All costs for the Network Customer to supply its own Ancillary Services shall be the responsibility of the Network Customer. 8.5 Real Power Losses - Transmission The Network Customer shall replace losses in accordance with Attachment M of the Tariff. 8.6 Real Power Losses - Distribution For Delivery Points on Westar Energy Network System: The Network Customer shall replace all distribution losses in accordance with Westar Energy's Open Access Transmission Tariff, Section 28.5, based upon the location of each delivery point meter located on distribution facilities. The composite loss percentages in Section 28.5 shall exclude transmission losses. 8.7 Power Factor Correction Charge 8.8 Redispatch Charge Redispatch charges shall be in accordance with Section 33.3 of the Tariff. For transmission requests and network resources (denoted in the table below), provide generation redispatch power in the specified amounts necessary to alleviate loading on the facilities listed in Attachment A prior to completion of Service s, Reliability and Construction Pending upgrades. The Network Customer agrees to provide redispatch , ,

18 pairs listed in Table 6 of the final posting of the respective Aggregate Study (denoted in the table below), and the Transmission Provider agrees that such redispatch will satisfy the redispatch obligation. Transmission Request Subject of Request Aggregate Study and replaced by and combined into and Initial pooling of KPP Pool load and resources on Midwest Energy and Westar Energy transmission system 2007-AG replaced by replaced by combined into Initial pooling of KPP Pool load and resources on Mid-Kansas Electric Company transmission system 2007-AG Replaced by and combined into , , , and Replaced by combined into and replaced by combined into replaced by combined into Addition of 45 MW Westar Energy Coal Purchase - Jeffrey Energy Center, 2, 3 to network load on Midwest Energy and Westar Energy transmission system Addition of 5 MW Westar Energy Coal Purchase - Jeffrey Energy Center, 2, 3 to network load on Mid-Kansas Electric Company transmission system Addition of City of Scranton and St. Mary s to KPP pool. Addition of Network Resources and City of Horton to KPP pool 2007-AG 2007-AG 2007-AG AGP , ,

19 Transmission Request Subject of Request Aggregate Study combined into Addition of City of Marion to 2009-AGP KPP Pool on Westar Energy transmission system , , and Addition of Greensburg Wind 2009-AGP replaced by , , and Network Resource ,742368, and Addition of Kansas City Power 2009-AGP replaced by , , and and Light Purchase Network Resource Addition of Dogwood Resource 200-AGP In the absence of implementation of interim redispatch as requested by the Transmission Provider for Network Customer transactions resulting in overloads on limiting facilities, the Transmission Provider shall curtail the customers schedule. Such redispatch obligations shall be arranged in accordance with Attachment K and shall occur in advance of curtailment of other firm reservations impacting these constraints. Network Customer shall bear the cost of such redispatch. This interim redispatch shall remain in place until the Network s are completed and the ATC required for this service is available. Additionally, maximum firm import capability limitations will be enforced for Network Customer load both before and after completion of required network upgrades as detailed in Attachment B and Attachment C respectively subject to later re-studies, facility improvements, and/or modifications to Network Customer's network loads and/or , ,

20 resources. These limitations are applicable during peak loading conditions as identified by Midwest Energy and Westar Energy. 8.9 Wholesale Distribution Service Charge For Network Customer s Load on Westar Energy s transmission system: Wholesale Distribution Service Charges for all KPP delivery points connected to the Westar Energy distribution system will be calculated pursuant to the Service Agreement for Ancillary Services and Distribution Facilities (SPP Service Agreement No. 36) currently in effect between Westar Energy and KPP. For Network Customer s Load on Mid-Kansas transmission system: Wholesale Distribution Service Charges, if any, are specified in agreements approved by the Kansas Corporation Commission ( KCC ) in KCC Docket No. -GIME-597-GIE and on file with the KCC, as they may be amended by order of the KCC from time to time. The monthly rate shall be as specified in the Mid-Kansas Open Access Transmission Tariff approved by the KCC in KCC Docket No. 2-MKEE-650-TAR and on file with the KCC, as it may be amended by order of the KCC from time to time. 8.0 Network Charges A. The Network Customer has confirmed the following Network Resources requiring Network s:. Initial pooling of KPP Pool load and resources on Midwest Energy and Westar Energy transmission system as more specifically identified in the study of transmission service request and replaced by and combined into and Contingent upon the completion of required upgrades as specified below, designation of these resources shall be effective on June, 2009 and shall remain effective through June, , ,

21 The requested service depends on and is contingent on completion of the following aggregate study SPP-2007-AG allocated network upgrades. The costs of these upgrades are allocated to the Network Customer but are fully base plan fundable in accordance with Section III.A. Attachment J of the Tariff. Service s Name Description Transmission Owner ALLEN - LEHIGH TAP 69KV CKT ALLEN 69KV Capacitor ALTOONA EAST 69KV Capacitor ATHENS 69KV Capacitor Athens to Owl Creek 69 kv BARTLESVILLE SOUTHEAST - NORTH BARTLESVILLE 38KV CKT BURLINGTON JUNCTION - COFFEY COUNTY NO. 3 WESTPHALIA 69KV CKT BURLINGTON JUNCTION - WOLF CREEK 69KV CKT CHANUTE TAP TIOGA 69KV CKT COFFEY COUNTY NO. 3 WESTPHALIA - GREEN 69KV CKT Green to Vernon 69 kv COFFEYVILLE TAP DEARING 38 KV CKT WERE #2 Tear down / Rebuild 5.69-mile line; 954-KCM ACSR Allen 69 kv 5 MVAR Capacitor Addition ALTOONA EAST 69KV 6 MVAR Capacitor Addition Athens 69 kv 5 MVAR Capacitor Addition Rebuild 2.93 miles with 954 kcmil ACSR (38kV/69kV Operation) Rebuild 8.37 miles of 795 ACSR with 590 ACSR & reset BSE Rebuild 7.2 miles with 954 kcmil ACSR (38kV/69kV Operation) Rebuild 4. miles with 954 kcmil ACSR (38kV/69kV Operation) Date Required in Service WERE 6//2009 WERE 6//2009 WERE 6//2009 WERE 6//2009 WERE 6//2009 AEPW 6//2009 WERE 6//2009 WERE 6//2009 Replace Jumpers WERE 6//200 Rebuild 9.22 miles with 954 kcmil ACSR (38kV/69kV Operation) Rebuild 7.9 miles with 954 kcmil ACSR (38kV/69kV Operation) Replace Disconnect Switches, Wavetrap, Breaker, Jumpers WERE 6//2009 WERE 6//2009 WERE 6// , ,

22 Name Description Transmission Owner COFEYVILLE TAP NORTH BARTLESVILLE 38KV CKT LEHIGH TAP - OWL CREEK 69KV CKT LEHIGH TAP - UNITED NO. 9 CONGER 69KV CKT NEOSHO - NORTHEAST PARSONS 38KV CKT NORTH ELLINWOOD 69KV SUBSTATION NORTH ELLINWOOD- CITY OF NORTH ELLINWOOD 34.5 CKT TIMBER JCT CAP BANK TIOGA 69KV Capacitor Vernon to Athens 69 kv Rebuild 3. miles of 795 ACSR with 590 ACSR Tear down / Rebuild 8.47-mile 69 kv line with 954-KCM ACSR (38kV/69kV Operation) Tear down / Rebuild 0.9-mile 69 kv line; 954-KCM ACSR (38kV/69kV Operation) Replace bus and Jumpers at NE Parsons 38 KV substation Tap the College South Ellinwood 69kV line and install a new North Ellinwood substation Build approximately 4.5 miles of new 34.5 kv line with 477 ACSR from North Ellinwood to interconnect near the City of Ellinwood Install 30 MVAR Cap bank at new Timber Junction 38kV Tioga 69 kv 5 MVAR Capacitor Addition Rebuild 5.7 miles with 954 KCM- ACSR (38kV/69kV Operation) Date Required in Service AEPW 6//2009 WERE 6//2009 WERE 6//2009 WERE 6//20 MIDW 6//2009 MIDW 6//2009 WERE 6//2009 WERE 6//2009 WERE 6//2009 The requested service depends on and is contingent on completion of the following aggregate study SPP-2007-AG Reliability and Construction Pending s resulting from the SPP Expansion Plan. These upgrades costs are not assignable to the Network Customer. Name Description Transmission Owner Sub - Franklin 6 kv XFR - Franklin 6/69 kv Transformer Ckt Tap Litchfield - Marmaton 6 kv line at new Franklin substation New 6/69 kv transformer at Franklin Date Required in Service WERE 6//203 WERE 6// , ,

23 Name Description Transmission Owner Line - Franklin - Mulberry 69 kv Ckt Line - Franklin - Sheffield 69 kv Ckt RICHLAND ROSE HILL JUNCTION 69 KV CKT Build 6 miles of double circuit 69 kv line from new Franklin substation to Mulberry - Sheffield 69 kv line, tapping line and connecting to Mulberry. Build 6 miles of double circuit 69 kv line from new Franklin substation to Mulberry - Sheffield 69 kv line, tapping line and connecting to Sheffield. Rebuild 5.73 mile Rose Hill Junction-Richland as a 38 kv line but operate at 69 kv. Date Required in Service WERE 6//203 WERE 6//203 WERE 6//2009 In addition to all other applicable charges, Network Customer shall pay remaining monthly revenue requirements of $347.5 from June, 2009 May, 2026 for a total of $70,47.45 for remaining revenue requirements for upgrades by Empire District Electric Company for the Oronogo Junction- Riverton 6kV upgrade to be completed on or before June, 20. This upgrade was required to provide firm Point-To-Point Service to the City of Erie, Kansas under transmission service request (later converted to Network Integrated Transmission Service under transmission service request 73206) In addition to all other applicable charges, Network Customer shall pay remaining monthly revenue requirements of $2, from June, 2009 October, 2026 for a total of $496,647 for remaining revenue requirements for upgrades by Empire District Electric Company for the Oronogo Junction- Riverton 6kV upgrade to be completed on or before June, 20. This upgrade was required to provide firm Point-To-Point Service to the City of Girard, Kansas under transmission service request , ,

24 In addition to all other applicable charges, Network Customer shall pay remaining monthly revenue requirements of $82.63 from June, 2009 October, 2026 for a total of $37,987 for remaining revenue requirements. The revenue requirement for American Electric Power transmission facility upgrade is $9.24/month for the Explorer Glenpool- Riverside Station 38kV upgrade. The revenue requirements for Oklahoma Gas and Electric s transmission facility upgrades are $30.4/month for the Beeline-Explorer Glenpool 38kV upgrade, and $6.25/month for the Explorer Glenpool-Riverside Station 38kV upgrade. These upgrades were required to provide firm Point-To-Point Service to the City of Holton, Kansas under transmission service request In addition to all other applicable charges, Network Customer shall pay remaining monthly revenue requirements of $ from June, 2009 May, 200 for a total of $4,635.7 for remaining revenue requirements. The revenue requirement for the American Electric Power transmission facility upgrade is $656.33/month for the Explorer Glenpool-Riverside Station 38kV upgrade. The revenue requirements for Oklahoma Gas and Electric s transmission facility upgrades are $222.44/month for the Beeline-Explorer Glenpool 38kV upgrade, and $45.70/month for the Explorer Glenpool-Riverside Station 38kV upgrade. These upgrades were required to provide firm Point-To-Point Service to the City of Ellinwood, Kansas under transmission service request This service is now reflected as network service request for the Ellinwood portion of the original service. 2. Additional Westar Energy Purchase, 45MW, as more specifically identified in transmission service request replaced by and combined into , , , and Contingent upon the completion of required upgrades as , ,

25 specified below, designation of this resource shall be effective on June, 2009 and shall remain effective through April, The requested service depends on and is contingent on completion of the following aggregate study SPP-2007-AG allocated network upgrades. The costs of these upgrades are allocated to the Network Customer but are fully base plan fundable in accordance with Section III.A. Attachment J of the Tariff. Service s Name Description Transmission Owner ALLEN - LEHIGH TAP 69KV CKT ALLEN 69KV Capacitor ALTOONA EAST 69KV Capacitor ATHENS 69KV Capacitor Athens to Owl Creek 69 kv BARTLESVILLE SOUTHEAST NORTH BARTLESVILLE 38 KV CKT BURLINGTON JUNCTION - COFFEY COUNTY NO. 3 WESTPHALIA 69KV CKT BURLINGTON JUNCTION - WOLF CREEK 69KV CKT CHANUTE TAP TIOGA 69KV CKT COFFEY COUNTY NO. 3 WESTPHALIA - GREEN 69KV CKT Tear down / Rebuild 5.69-mile line; 954-KCM ACSR Allen 69 kv 5 MVAR Capacitor Addition ALTOONA EAST 69KV 6 MVAR Capacitor Addition Athens 69 kv 5 MVAR Capacitor Addition Rebuild 2.93 miles with 954 kcmil ACSR (38kV/69kV Operation) Rebuild 8.37 miles of 795 ACSR with 590 ACSR & reset Rebuild 7.2 miles with 954 kcmil ACSR (38kV/69kV Operation) Rebuild 4. miles with 954 kcmil ACSR (38kV/69kV Operation) Date Required in Service WERE 6//2009 WERE 6//2009 WERE 6//2009 WERE 6//2009 WERE 6//2009 AEPW 6//2009 WERE 6//2009 WERE 6//2009 Replace Jumpers WERE 6//200 Rebuild 9.22 miles with 954 kcmil ACSR (38kV/69kV Operation) WERE 6// , ,

26 Name Description Transmission Owner COFFEYVILLE TAP DEARING 38 KV CKT WERE #2 COFFEYVILLE TAP NORTH BARTLESVILLE 38 KV CKT Green to Vernon 69 kv LEHIGH TAP - OWL CREEK 69KV CKT LEHIGH TAP - UNITED NO. 9 CONGER 69KV CKT NEOSHO NORTHEAST PARSONS 38 KV CKT NORTH ELLINWOOD 69KV SUBSTATION NORTH ELLINWOOD 69/34.5KV TRANSFORMER CKT NORTH ELLINWOOD CITY OF NORTH ELLINWOOD 34.5 KV CKT TIMBER JCT CAP BANK TIOGA 69KV Capacitor Vernon to Athens 69 kv Replace Disconnect Switches, Wavetrap, Breaker, Jumpers Rebuild 3. miles of 795 ACSR with 590 ACSR Rebuild 7.9 miles with 954 kcmil ACSR (38kV/69kV Operation) Tear down / Rebuild 8.47-mile 69 kv line with 954-KCM ACSR (38kV/69kV Operation) Tear down / Rebuild 0.9-mile 69 kv line; 954-KCM ACSR (38kV/69kV Operation) Replace bus and Jumpers at NE Parsons 38 kv substation Tap the College South Ellinwood 69 kv line and install a new North Ellinwood Substation Install a new 69/34.5kV transformer at North Ellinwood Build approximately 4.5 miles of new 34.5 kv line with 477 ACSR from North Ellinwood to interconnect near the City of Ellinwood Install 30 MVAR Cap bank at new Timber Junction 38kV Tioga 69 kv 5 MVAR Capacitor Addition Rebuild 5.7 miles with 954 KCM ACSR (38kV/69kV Operation) Date Required in Service WERE 6//200 AEPW 6//2009 WERE 6//2009 WERE 6//2009 WERE 6//2009 WERE 6//20 MIDW 6//2009 MIDW 6//2009 MIDW 6//2009 WERE 6//2009 WERE 6//2009 WERE 6//2009 The requested service depends on and is contingent on completion of the following aggregate study SPP-2007-AG Reliability and Construction Pending s resulting from the SPP Expansion Plan. These upgrades costs are not assignable to the Network Customer , ,

27 Name Description Transmission Owner Date Required in Service Sub - Franklin 6 kv Tap Litchfield - Marmaton 6 kv WERE 6//203 line at new Franklin substation XFR - Franklin 6/69 kv Transformer Ckt New 6/69 kv transformer at Franklin WERE 6//203 Line - Franklin - Mulberry 69 kv Ckt Line - Franklin - Sheffield 69 kv Ckt KELLY - SOUTH SENECA 5KV CKT Knob Hill - Steele City 5 kv BONANZA - NORTH HUNTINGTON 69KV CHASE - WHITE JUNCTION 69KV CKT ROSE HILL (ROSEHLX) 345/38/3.8KV TRANSFORMER CKT 3 Displacement Build 6 miles of double circuit 69 kv line from new Franklin substation to Mulberry - Sheffield 69 kv line, tapping line and connecting to Mulberry. WERE 6//203 Build 6 miles of double circuit 69 WERE 6//203 kv line from new Franklin substation to Mulberry - Sheffield 69 kv line, tapping line and connecting to Sheffield. Rebuild 0.28 mile line with WERE 5// kcmil ACSR and replace CTs. New 5 kv Line from Knob Hill WERE 6//200 to Kansas/Nebraska state line. Convert from 69KV to 6KV AEPW 6//209 Tear down / Rebuild 7.3-mile Chase - White Junction 69 kv line. Replace existing 2/0 copper conductor with 795 kcmil ACSR conductor. Add third kv transformer at Rose Hill WERE 6//2009 WERE 5// City of Scranton and St. Mary s, 8MW, as more specifically identified in transmission request combined into Contingent upon the completion of required upgrades as specified below, designation of this network resource shall be effective on October, 2009 and remain effective through June, , ,

28 The requested service depends on and is contingent on completion of the following aggregate study SPP-2007-AG2 Reliability s by the required date as listed below. These Reliability upgrades costs are not assignable to the Network Customer. Name Description Transmission Owner AUBURN ROAD (AUBRN77X) 230/5/3.8KV TRANSFORMER CKT 2 Add second Auburn kv transformer. Date Required in Service WERE 6//205 LITCHFIELD - AQUARIUS - HUDSON JUNCTION 69KV CKT ROSE HILL (ROSEHLX) 345/38/3.8KV TRANSFORMER CKT 3 Displacement Replace 69 kv disconnect switches at Aquarius. Add third kv transformer at Rose Hill WERE 6//203 WERE 6// City of Sterling, 5MW, as more specifically identified in transmission request replaced by combined into Contingent upon the completion of required upgrades as specified below, designation of these network resources shall be effective on June, 200 and remain effective through June, The requested service depends on and is contingent on completion of the following aggregate study SPP-2008-AGP Reliability and Construction Pending s by the required date as listed below. These Network upgrade costs are not assignable to the Network Customer , ,

29 Name HEIZER - MULLERGREN 5 KV CKT MIDW HEIZER - MULLERGREN 5 KV CKT MKEC Description Install 5 kv bay at Heizer and update relaying equipment Construct approximately one mile of 5-kV transmission line from the Great Bend (Mullergren) generation station to Heizer Substation with 795 ACSR conductor Date Required in Transmission Service Owner MIDW 6//20 MKEC 6//20 MEDICINE LODGE 38/5KV TRANSFORMER CKT Accelerated transformer MKEC 2//20 5. Addition of Network Resources and City of Horton, as more specifically identified in transmission request replaced by combined into Contingent upon the completion of required upgrades as specified below, designation of these network resources shall be effective on June, 200 and remain effective through June, The requested service depends on and is contingent on completion of the following aggregate study SPP-2008-AGP Reliability and Construction Pending s by the required date as listed below. These Network upgrade costs are not assignable to the Network Customer. Name Description Transmission Date Required in Service Owner CLEARWATER GILL ENERGY CENTER WEST 38 KV CKT Rebuild 7.88 mile Gill Clearwater WERE 6// , ,