spp.org 1. priority project update bruce rew vice president, engineering

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SPP.org 1

Priority Project Update

Bruce RewVice President, Engineering

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Priority Project Overview

• Commitments to Construct have been received from all Transmission Owners

• Westar Energy, Mid-Kansas Electric Co., and Sunflower Electric Power Corp. propose Novation to Prairie Wind and ITC Great Plains

• Routing changes surrounding Medicine Lodge

Environmental/ Right-of Way issues

• Cost Estimate changes

Multiple causes, including re-routing, reactive support, and refining project scope within shared projects

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Nebraska City - Maryville - Sibley• KCPL GMO and OPPD Project Updates

Added reactive support to updated project estimates

Addition of reactive support has caused increase in cost for both KCPL GMO and OPPD

KCPL GMO forecasted contingency for higher labor, material, equipment costs

Estimates are preliminary due to limited design work, siting and procurement activities

OPPD has refined project scope and updated project estimates

Uncertainty of line route and river crossing/ROW issues increases cost estimate

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Hitchland - Woodward

• OGE and SPS Project Updates

SPS and OGE divided construction at approximately 30 miles for SPS, 90 miles for OGE

Original OGE estimate contained total 120 miles of project

SPS estimate lower than original OGE estimate for their 30 mile section

SPS estimates are preliminary

Limited experience in double circuit 345kV construction

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Woodward - Comanche County/Medicine Lodge• MKEC and OGE Project Updates

Routing Changes due to environmental concerns

Woodward line proposed to terminate at Medicine Lodge instead of Comanche County

Line to move eastward and increase by approximately 40 miles

Additional line length causes significant cost increase

Proposed Novation of portions of project to Prairie Wind and ITC Great Plains

Prairie Wind will be involved in line construction, ITC Great Plains for substation

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Spearville - Comanche County - Medicine Lodge - Wichita• MKEC, SUNC, and WR Project Updates

Proposed Novation of portions of project to ITC Great Plains and Prairie Wind

Added reactive support to project estimates

ITC GP Substation costs increased with new reactive compensation

ITC GP still optimizing studies

Routing changes for new substation in Wichita

Prairie Wind estimates additional 5 miles of line to substation

Increased cost for additional line and substation

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• NW Texarkana – Valliant

No changes proposed by AEP

• Tulsa Reactor

No changes proposed by AEP

Priority Projects Unchanged

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Project Cost Summary

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Updated B/C Ratio

• Original cumulative B/C = 1.78

• Based on new cost estimates, Cumulative B/C = 1.58

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Transmission Owner Cost Changes

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Bruce RewVice President, [email protected]