SouthwestPowerPool SPPorg southwest-power-poolHelping our members work together to keep the lights on... today and in the future. 1

KEY PERFORMANCE INDICATORSQ1 2021

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KEY PERFORMANCE INDICATORS (KPI) Q1 2021RESPONSIBILITY & ECONOMICS

Stewardship (40%) | Economics (30%)Staff Readiness (30%)

WORKING TOGETHER

Engagement (33%) | Facilitation (33%)Satisfaction (33%)

KEEP THE LIGHTS ON TODAY

Responsiveness (33%) | Reliability (33%) Performance (33%)

KEEP LIGHTS ON IN THE FUTURE

Planning (25%) | Adaptability (25%)Strategy (25%) | Staff Readiness (25%)

Stakeholders with diverse perspectives are highly engaged and supportive of

organizational initiatives.

SPP balances economics and reliability while responsibly providing valuable

services at affordable costs.

Staffing, operations and systems exceed thresholds and continuously improve. SPP

finds timely, high quality solutions.

SPP stays ahead of industry trends, enacts a future-looking strategy and grows

in a way that benefits members.

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WORKING TOGETHERENGAGEMENT • FACILITATION • SATISFACTION

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WORKING TOGETHER

Increasing satis.We have engaged stakeholders with

diverse perspectives who collectively enact new policy

with a high consensus.

Exceeds Expectations

Engagement (33%)SPP facilitates collective decision making by an engaged group of stakeholders with diverse needs and perspectives.

Facilitation (33%)SPP’s stakeholder process results in policy changes that benefit the region affirmed by a high rate of approval or consensus.

Satisfaction (33%)SPP’s staff and services exceed the expectations stakeholders.

Benchmarks Analysis Grade

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ENGAGEMENT: ORG GROUPROSTER ATTENDANCE

Average: 88%Max: 95% Min: 79%MOPC: 56%

Number of Meetings

Roster MemberPresent

Roster Member Absent/Proxy

Avg. Roster Attendance

SPC 5 63 3 95%SECWG 4 67 5 93%ORWG 12 201 16 93%OTWG 8 108 9 92%MWG 15 260 25 91%ESWG 17 289 30 91%PCWG 9 113 12 90%SSC 11 139 15 90%MDWG 15 254 29 90%SAWG 14 269 39 87%RTWG 16 371 62 86%BPWG 8 79 14 85%TWG 13 308 55 85%RCWG 8 132 32 80%CPWG 12 97 25 80%SPCWG 4 44 12 79%

MOPC 4 214 171 56%

Source: Org Group Self Assessments (Aug 2019 – July 2020)

MOPC representation is automatic for all members, so

we expect lower attendance, but there is room for improvement.

Proxies reduce roster attendance avg. for this measure. Some groups

report so-called “permanent proxies” that attend the majority of

meetings for the roster member

SPP is developing a process to update

data quarterly

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3

3.5

4

4.5

5

2016 2017 2018 2019 2020

Membership represents thediversity of the SPPorganization.

Membership has the necessaryexpertise and/or skills toaccomplish its goals.

Members come prepared tomeetings.

Members are committed toparticipate and accomplish thegroup's goals.

Members are supportive andrespectful of the individualneeds and differences of groupmembers.

StronglyAgree

Agree

Neutral

ENGAGEMENT: MEMBER PARTICIPATION

All scores are stable or trending up, but

member preparation continues to receive the lowest scores.

Source: Annual Org Group Surveys

We plan to use consistent assessment

of effectiveness of MOPC meetings for future KPI reports

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FACILITATION: MOPC CONSENSUS

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

April 2020 July 2020 Oct 2020 Jan 2021 April 2021

Average Percent Approval of Votes Taken by MOPC

Yes No

Lowest “yes” votes in July were associated

with ITP futures, which passed by simple majority

New voting software allows us to more easily track this data. Trends

over time will be indicators of success of working group process

12votes

15votes

9votes

3votes

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SATISFACTION: QUARTERLY RMS DATA

0%

20%

40%

60%

80%

100%

2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1

Satisfaction with SPP RMS Request Resolution

Very Dissatisified Dissatisfied Satisfied Very SatisfiedThis small decrease in

satisfaction coincides with the beginning of pandemic and

initial transition to virtual work

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SATISFACTION: QUARTERLY RMS DATA

2.00

2.25

2.50

2.75

3.00

2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1

Request Management System (RMS) Survey

Professional Attitude Understanding Needs Sufficient Knowledge Timely Solution Quality of Solution

Excellent

Good

This dip across all categories coincides with transition beginning of

pandemic and shift to work from home

Q3 had the lowest RMS survey response. 13 “Good” ratings

pulled down the average score for “Understanding Needs” while

other categories were up.

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SATISFACTION: STAFF PERFORMANCE

3

3.5

4

4.5

5

2016 2017 2018 2019 2020

Overall Satisfaction with SPP

SPP staff members areresponsive to my needs.

SPP staff members provideaccurate information uponrequest.

SPP staff members resolveproblems to my satisfaction.

Exceeds expectations

Meets expectations

Greatly exceeds expectations

Satisfaction measures are headed in the right

direction, trending toward “exceeds expectations”

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RESPONSIBILITY & ECONOMICSSTEWARDSHIP • ECONOMICSSTAFF READINESS

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SPP responded to COVID by reducing NRR

and coming in under budget, our market

continues to provide benefits. The impact of the winter storm has affected economic

outcomes for members. We are assessing and

improving staff readiness processes.

Meets Expectations

Stewardship (40%)SPP balances affordable costs with provision of services of value to our stakeholders.

Economics (30%)SPP’s systems result in competitive wholesale prices and good ROI for MPs

Staff Readiness (30%)SPP recruits, retains and develops a skilled, diverse staff that works efficiently to resolve issues and implement improvements to our systems.

Benchmarks Analysis Grade

RESPONSIBILITY AND ECONOMICS

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ICS STEWARDSHIP: EXPENSE MANAGEMENT

$100.0 M

$110.0 M

$120.0 M

$130.0 M

$140.0 M

$150.0 M

$160.0 M

$170.0 M

$180.0 M

$190.0 M

2016 2017 2018 2019 2020

Year-End Gross Revenue Requirement (GRR) Actual vs. Budget, and Net Revenue Requirement (NRR)

GRR Actual GRR Budget NRR Actual

2016 2017 2018 2019 2020

Over/Under (O/U) -$7.1 M $3.9 M $12.8 M $4.3 M $20.2 M

The gap between a stable/declining NRR and increasing GRR shows the impact of services revenue

The variance between budget and actual

expenses reflects SPP’s cost reductions implemented in

response to COVID-19

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ICS STEWARDSHIP: MEMBER VALUE STATEMENT (MVS)

-$17.4 M

$603.7 M

$749.4 M $768.4 M

$37.8 M

($100.0)

$0.0

$100.0

$200.0

$300.0

$400.0

$500.0

$600.0

$700.0

$800.0

$900.0

FERC & SchedulingFees

Operations &Reliability

Markets & Regulation Transmission Tariff, Scheduling &Professional Services

SPP provides $2.14 billion in annual savings and benefits to

members

Annual Savings and Benefits for SPP Members

With a $155.3 million Net Revenue Requirement for

2020, SPP had a benefit-to-cost ratio of 14-to-1

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ICS ECONOMICS: MARKET SAVINGS

$347.9 M

$497.7 M

$589.2 M$545.6 M

$728.0 M$776.0 M $744.3 M

0

200

400

600

800

1000

1200

1400

2014 2015 2016 2017 2018 2019 2020

Year

ly S

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M)

Yearly Savings (In Millions) Linear (Yearly Savings (In Millions))

Since the launch of the Integrated Marketplace

participants have realized $4.23 billion in

cumulative benefits.

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ICS

$13.01 $17.63 $18.43 $25.95 $23.85 $19.86 $29.61

$17.28 $21.77 $22.94

$337.36

$17.71

$-

$50

$100

$150

$200

$250

$300

$350

$400

Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21

ENERGY Reserves DA MWP RUC MWP Total

ECONOMICS: ALL-IN-PRICE OF ELECTRICITY

The February winter storm event created a historic

spike in all-in prices

Ener

gy C

ost (

$/M

Wh)

Annual averagewhen excluding Feb 21: $20.73

Annual averagewhen including Feb 21: $47.12F

Averages were calculated as total of average prices per month divided by number of months

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ICS STAFF READINESS (PART 1)

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9

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Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021

Benchmark Implementation Continuous Learning Engagement & Retention Diversity, Equity and Inclusion

In Q1, SPP developed scopes and guidelines to establish Employee

Network Groups

SPP has partially developed objective benchmarks of

productivity and efficiency for some departments

HR recently launched internal departmental KPI measures to track

performance over time

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KEEP THE LIGHTS ON TODAYRELIABILITY • PERFORMANCERESPONSIVENESS

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Reliability (33%)SPP maintains compliance and succeeds at job number one: reliability.

Performance (33%)Outages are well within thresholds, core services and systems are reliable and we respond quickly.

Responsiveness (33%)SPP Operations maintains systems and retains and develops highly trained staff to respond quickly to all contingencies.

The historic storm of Feb. 2021 tested the

limits of SPP’s systems. We responded quickly,

limited outages and preserved the grid. Our comprehensive

review will reveal opportunities to

improve.

NeedsImprovement

Benchmarks Analysis Grade

KEEP THE LIGHTS ON TODAY

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RELIABILITY: BALANCING AUTHORITY AREA CONTROL ERROR LIMIT (BAAL)

0

2

4

6

8

10

Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21

Even

ts

Number of BAAL Events by Month and Length of Event

>10 and <=20 min >20 and <=25 min >25 and <=30 min >30 min

Winter storm event

BAAL event caused by network server issues. Resolved by switching to redundant systems.

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RELIABILITY: CONGESTED INTERVALS (BREACHED)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Perc

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bre

ach A year-over year trend of

increases in breached intervals can be

attributed to increases in variable wind generation

February saw the largest percent of intervals, with

higher market-to-market flows due to high levels of imports

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PERFORMANCE: SYSTEM AVAILABILITY

RTBM State Estimator ID RUC DAMKT **MTLF *STLF80 %

82 %

84 %

86 %

88 %

90 %

92 %

94 %

96 %

98 %

100 %System Availability

Last 12 Months Mar-21 Feb-21 Jan-21 Threshold* Percentage of time STLF is within 1% error** Percentage of time MTLF is withing 5% error

Availability of multiple systems was affected by the winter storm event

of Feb. 2021

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PERFORMANCE: IT SERVICE PERFORMANCE

99.000

99.100

99.200

99.300

99.400

99.500

99.600

99.700

99.800

99.900

100.000

Markets/ RTBM EMS ICCP Marketplace Portal Market UI/API Settlement UI/APIActual Uptime % 99.992 99.998 99.998 99.983 99.983 99.983Target Uptime % 99.950 99.990 99.990 99.900 99.900 99.900Actual Downtime Minutes 95 0 0 0 0 198Threshold Minutes 263 53 53 526 526 526

Cumulative YTD IT Service Availability Through MAR 2021

GREEN = Meets and/or Exceeds YELLOW = Within Target Threshold, but Exceeds 85% RED = Exceeds the Targetthe Cumulative Target Minutes or more of the allowable Cumulative Target Minutes Cumulative Minutes

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PERFORMANCE: OPERATIONAL SERVICES

2.5

3

3.5

4

4.5

2016 2017 2018 2019 2020

Reliability coordination

Scheduling

Tariff administration

RTO member complianceassistance

Exceeds expectations

Meets expectations

2020 Stakeholder Satisfaction Survey

Satisfaction with operations services is on

an upward trend over the past five years.

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RESPONSIVENESS – RMS SERVICE LEVEL AGREEMENT (SLA) COMPLIANCE

98.2%98.5% 97.8%

96.9%

96.8%

97.8%98.1%

97.3% 97.1%

97.5%

96.9%

98.6% 98.3%

98.9%99.3%

97.1%

98.1%

96.3%

97.3%

99.5%

97.3%

98.3%

97.0%

97.2%

99.1%

98.3%

90.0%

91.0%

92.0%

93.0%

94.0%

95.0%

96.0%

97.0%

98.0%

99.0%

100.0%

Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21

SLA Compliance Rate

5 Day SLA (Standard Requests) 10 Day SLA (Non-standard or longer process)

Threshold

No SLA% lower than 97% in more than a year, and Q1 2021 is trending up

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KEEP LIGHTS ON IN THE FUTUREPLANNING • ADAPTABILITYSTAFF READINESS • STRATEGY

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The SCRIPT and other working groups are working to improve

planning processes. We are re-envisioning our

work environment in the midst of a pandemic. We are enacting our current strategy and will launch

a new one in 2021.

Meets Expectations

Planning (25%)

SPP’s responsive planning processes produce quality studies with a reasonable level of outcome certainty

Adaptability (25%)

SPP adapts to a changing and complex operational environment.

Staff Readiness (25%)

SPP analyzes the skills we need for the future and trains and hires to meet the challenges of tomorrow.

Strategy (25%)

SPP makes progress toward strategic goals with timely, high quality solutions.

KEEP THE LIGHTS IN THE FUTURE

Benchmarks Analysis Grade

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E PLANNING: RESOURCE ADEQUACY

2017 2018 2019 2020 2021 2022 2023 2024 2025

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

0 1 2 3 4 5 6 7 8 9 10

PRM

Per

cent

age

Historical 5-year Resource Adequacy (RA) Planning Reserve Margin (PRM) Projections

2017 Report 2018 Report 2019 Report 2020 Report PRM Requirement

System excess capacity is declining each year,

and doing so more quickly than projected

each previous year.

System excess capacity could hit the minimum

by 2025, based on latest 2020 projections

PRM% includes proposed generation submitted by

members, but does not make resource assumptions based

on the GI queue.

The 2021 winter storm event has raised new

concerns about how we measure RA

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0

10

20

30

40

50

60

70

Com

plet

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Com

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Com

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2019-AG1

2019-AG2

2020-AG1

2020-AG2

REQ

UEST

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Status of Long-Term Transmission Service Requests

for Current and Recent Aggregate Studies

Study ResultsPending

Withdrawn

Confirmed

0

10

20

30

40

50

60

70

Jun-19

Jul-19 Aug-19

Sep-19

Oct-19

Nov-19

Dec-19

Jan-20 Feb-20

Mar-20

Apr-20

May-20

Jun-20

Jul-20 Aug-20

Sep-20

Oct-20

Nov-20

Dec-20

Jan-21 Feb-21

Mar-21

Requ

ests

Month

Trend of Requests in the Aggregate Study Queue Over Time

2019-AG1 2019-AG2 2020-AG1 2020-AG2

Our Aggregate Study process has been

effective and timely

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2019 ITP operational needs included one voltage issue with planned upgrade, remaining were flowgates over congestion cost threshold

2020 ITP operational needs were flowgates over congestion cost threshold

22NEEDS

18NEEDS

7

5

6

4

2019 ITP

In-service upgrades Planned upgrades

Identified in ITP study Remaining ops need

3

9

3

3

2020 ITP

In-service upgrades Planned upgrades

Identified in ITP study Remaining ops need

Operational Needs in the Planning Process

Congestion is calculated for the

previous 2 years, these needs are expected to

roll off over timePlanned upgrades

increased due to the needs identified in the previous cycle

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50

100

150

200

250

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

TOTAL REQUESTS WITHDRAW REQUEST

As of 2021, studies from 2015 and earlier should

experience few to no withdrawn requests

SPP’s SCRIPT is evaluating new

processes to mitigate the

current backlog by 2024 and prevent future backlogs

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ADAPTABILITY: WIND GROWTH VS PLANNING ASSUMPTIONS

Our ITP assumptions significantly underestimated

the amount of wind we would have in service by 2021 In future KPI reports, we will

look at other resource types

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0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

GI Queue - Generation Type MW

COAL CT CC HYDRO NUCLEAR WIND SOLAR BATTERY OTHER

Wind was the largest GI request type by MW from

2006 to 2017)

Solar requests jumped in 2017 & became largest GI

request type in 2018

Battery storage became a significant

GI factor in 2017

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Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021

Critical Skills Analysis Professional Development Succession Planning Staffing Metrics

In Q1 2021, SPP developed a pilot succession planning program for director- and

manager-level roles.

SPP is assessing skillsets for each department to track

current & future skills needs. Expected completion of

analysis by Q4 2021

Q1 2021: Launched new HR software

system

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STRATEGY

# Status Initiative Staff Priority Stakeholders

1.1 Integration of Variable Energy Bruce A MOPC (TF)

1.4 Regional Resource Needs Michael, Bruce, Paul A SPC

2.1 ARR/TCR Feasibility Antoine A MOPC

2.2 Optimization Strategies for the Future Antoine B SPC

3.1 Transmission (Seams) Lanny A MOPC (SSC)

3.2 Optimize Market Efficiencies Along Seams Lanny A MOPC (SSC)

4.1 Communication Strategy on Value and Affordability Mike A SPC

4.2 PMO Best Practice and Rigor Michael B FC/MOPC

4.3 Strategic Membership Expansion Michael/Lanny/Paul A SPC

4.4 Technological Advances Antonine/Bruce/Sam B SPC

1. Reliability Assurance 2. Optimized Transmission3.Interdependent Systems4. Enhance Member Value

SPP is developing a new strategic plan an initiatives, expected to launch later in 2021

with new accountability metrics.