M-S-R PUBLIC POWER AGENCY MEMORANDUMmsrpower.org/Portals/0/Public Documents/M-S-R Public Power Agen… · AGN MSR PPA 6-12-14.doc . M-S-R Public Power Agency MEETING OF THE TECHNICAL

M-S-R PUBLIC POWER AGENCY

MEMORANDUM Date: June 3, 2014 To: M-S-R PPA Technical Committee From: Martin R. Hopper, General Manager Subject: Thursday, June 12, 2014, M-S-R PPA Technical Committee Meeting Please find enclosed the agenda for the Thursday, June 12, 2014, M-S-R PPA Technical Committee Meeting to be held in Folsom, CA. Please post as required for Brown Act compliance. Distribution: Alan Hockenson – KBT Dave Arthur – KBT Rin Helzerman – NCI Steve Gross – General Counsel Toxie Burriss - MID Roger van Hoy - MID Greg Salyer - MID David Olivares – MID James McFall – MID Scott van Vuren – MID Ed Oborn – MID Regina Cox – MID Joy Warren - MID Cindy Worley – MID Steve Hance – SVP Ann Hatcher – SVP Joyce Kinnear – SVP Jan Pepper – SVP Elizabeth Hadley – Redding Steve Handy – Redding Daniel Beans – Redding Barry Tippin – Redding Macintosh HD:Users:martinhopper:My Laptop Documents:M-S-R Public Power Agency:Technical Committee:Agendas:2014:JUN 14 AGN MSR PPA 6-12-14.doc

M-S-R Public Power Agency

MEETING OF THE TECHNICAL COMMITTEE

Thursday, June 12, 2014, 10:00 AM

Navigant Consulting, Inc.

35 Iron Point Circle, Suite 225 Folsom, CA 95630

AGENDA

Any member of the public who desires to address the Committee on any item considered by the Committee at this meeting before or during the Committee’s consideration of that item shall so advise the Chair and shall thereupon be given an opportunity to do so. 1. Call to Order

2. Roll Call

3. Approval of Minutes of May 8 and May 27, 2014 (attached)

4. June 2014 General Manager’s Report (Attached, Martin Hopper)

5. Projects and Activities (Alan Hockenson)

a. San Juan Project Status Report (Attached)

b. Southwest Transmission Projects Status Report (Attached)

c. Pacific Northwest Projects Status Report (Attached)

6. Discussion and Possible Action Regarding June 2014 Outside Services Budget Versus Actual Report (attached, Martin Hopper)

7. Discussion and Possible Action Regarding April 2014 WREGIS REC Transfer Status Report (attached, Martin Hopper)

8. Discussion and Possible Action Regarding Status Report on Flynn RCI SWTP Review (attached, Martin Hopper)

9. Closed Session

a. Closed Session Pursuant to Government Code Section 54956.9(d)(1) – Conference with Legal Counsel – Existing Litigation (10th US Circuit Court of Appeals 11-9557 et al, EL11-44 - BPA, OS-14-E-BPA, EF13-7-000 et al, and BP-14-E-BPA), Five cases

b. Conference with Real Property Negotiator Pursuant to Government Code Section 54956.8, Property: Transmission facilities and entitlement connecting the Westwing Substation, 11400 W Hatfield Road, Peoria, Arizona, to the midpoint of the Victorville-Lugo transmission line. Negotiating Party(ies): Duke-American Transmission Company, LLC. et al. Agency Negotiator: Martin R. Hopper and/or Steven C. Gross. Under Negotiation: Purchase/Sale/Exchange/Lease of Real Property (provisions, price and terms of payment)

10. Announcement from Closed Session

11. Public Comment

12. Confirm date and time of next meeting

13. Adjourn

ALTERNATE FORMATS OF THIS AGENDA WILL BE MADE AVAILABLE UPON REQUEST TO QUALIFIED INDIVIDUALS WITH DISABILITIES.

Page 1 of 4

DRAFT MINUTES OF THE

M-S-R PUBLIC POWER AGENCY TECHNICAL COMMITTEE

MAY 8, 2014

The M-S-R Public Power Agency (M-S-R PPA) Technical Committee held a special

meeting on May 8, 2014. A list of the attendees is provided as Attachment 1. Mr.

Hopper chaired the meeting.

Roll Call/Call to Order

The following M-S-R Members were represented: Modesto Irrigation District – James

McFall, City of Santa Clara – Joyce Kinnear, City of Redding – Steve Handy (joining at

10:50 a.m.) The meeting was called to order at 10:19 a.m.

Approval of Minutes

Upon a motion by Mr. McFall, seconded by Ms. Kinnear, the minutes of the meeting held

on April 10, 2014 were approved with Redding absent.

Manager’s Report

Mr. Hopper reported that the 2014 Audit Report was essentially complete. One recurring

issue of material deficiency was identified. The deficiency raised by the Auditor, Baker

Tilly, Verchaw Krause (Baker Tilly), is that M-S-R PPA has the same contractor, Baker

Tilly, both prepare the financial statements and audit them. By accounting standards, this

is considered a weakness in internal controls or material deficiency. However, Baker

Tilly has indicated that this is very common with small organizations that cannot justify

the expense of specialized staff to prepare financial statements. Upon discussion, it was

concluded that no action needed to be taken in the near term other than to provide

clarifying language in the Audit Report. As a long term action item, there will be some

investigation on the viability of another means for preparing the financial statements.

Page 2 of 4

Mr. Hopper reported that the City of Redding has begun the process to investigate

terminating its portion of the transmission service M-S-R PPA holds on its behalf with

the Southern California Edison Company (SCE) as did Santa Clara at the end of 2013.

Redding is working on the justification analysis to accomplish this goal. It was also

suggested that an effort should be made to improve internal communications.

Monthly Budget v. Actual Reporting

Mr. Hopper discussed the Budget vs. Actual Report. Mr. Hopper indicated that balances

over the first part of the year have been consistently high in certain categories and low in

other categories. He announced he likely be recommending at the mid-year budget

review a shift of budget between categories to reflect what is actually happening.

Overall, the total budget appears to be in alignment with the total expected expenditures.

Projects and Activities

Mr. Hockenson indicated the program to perform maintenance on the pulverizers for San

Juan Unit had been completed on schedule. A review of the project concluded that the

work on the pulverizers was badly needed and a prudent action. The projected quality of

coal (that led to the initiation of this program) was found to be better than expected.

Mr. Hockenson indicated that the information requested on scheduled flows as compared

to actual flows on the Mead-Phoenix and Mead-Adelanto Transmission Lines had finally

been received. Although the differences on Mead-Adelanto and the Perkins-Mead

segment of Mead-Phoenix were at 15 percent, ha stated that is not unreasonable.

However, the fact that almost 2/3 of the flows on the Mead-Marketplace segment of

Mead-Pheonix were unscheduled is a concern. This will be addressed at the next

Engineering and Operating Committee meeting in Fall 2014.

Mr. Hockenson indicated that the Pacific Northwest is experiencing high water/high wind

conditions such that curtailments of production at the Big Horn projects have

dramatically increased. However, what energy that is being produced is on the high end

of the scale of historic production so the situation may not be as bad as it seems.

Page 3 of 4

At 10:50 a.m. Steven Handy, representing the City of Redding, arrived in person and

became the voting member for Redding. Also, Steven Gross, Pete Scanlon, and Elizabeth

Hadley joined the meeting telephonically.

Closed Session Conference with Legal Counsel

Pursuant to Government Code Section 54956.9(d)(1), the M-S-R PPA Technical

Committee retired to closed session at 11:05 a.m. to Conference with Legal Counsel - 5

Existing Cases (10th US Circuit Court of Appeals 11-9557 et al., EL-11-44 - BPA, OS-

14-E-BPA, EF13-7-000 et al, and BP-14-E-BPA).

Announcement from Closed Session

Upon returning to open session at 12:33 p.m., Mr. Hopper reported that there were no

reportable announcements.

Public Comment

Mr. Hopper solicited comment from the Public and received none.

Next Meeting

There being no further business, the next meeting date will be a regular meeting at 10:00

a.m. on June 12, 2014 to be held at the Navigant offices in Folsom, CA. The meeting

was adjourned at 12:35 p.m.

Respectfully submitted,

Martin R. Hopper

General Manager

Page 4 of 4

Attachment 1 ATTENDANCE LIST


REGULAR MEETING

May 8, 2014 10:19 AM

NAME STATUS ORGANIZATION Toxie Burris Guest Modesto Steve Gross Guest General Counsel (Telephonic) Elizabeth Hadley Guest Redding (Telephonic) Steven Handy Member Redding Alan Hockenson Guest Consultant Martin Hopper Chair General Manager Joyce Kinnear Member Santa Clara James McFall Member Modesto Pete Scanlon Guest Special Counsel (Telephonic)

Page 1 of 3

DRAFT MINUTES OF THE


MAY 27, 2014

The M-S-R Public Power Agency (M-S-R PPA) Technical Committee held a special

telephonic meeting on May 27, 2014. A list of the attendees is provided as Attachment 1.

Mr. Hopper chaired the meeting.

Roll Call/Call to Order

The following M-S-R Members were represented: Modesto Irrigation District – James

McFall, City of Santa Clara – Joyce Kinnear, City of Redding – Dan Beans. The meeting

was called to order at 3:03 p.m.

Southwest Transmission Project Assessment

Doug Boccignone of Flynn Resource Consultants Inc. (Flynn RCI) made a PowerPoint

presentation on the status of its evaluation of the M-S-R PPA Southwest Transmission

Project. He discussed the basis of the Flynn RCI evaluation, a list of the key

assumptions, features that were discovered in the Flynn RCI research, and preliminary

findings. Questions were asked during the presentation and answered to the extent

information was available.

Four options had been analyzed: (1) retain the asset, (2) sell the asset, (3) become a

California Independent System Operator (CAISO) Participating Transmission Owner

(PTO), and (4) another retention option. The planning horizon was assumed to be 20

years. M-S-R PPA historic data was reviewed from the Controller’s office as well as

current transmission project budgets.

A first draft of the report will be available June 9, 2014 in advance of the next meeting of

the M-S-R PPA Technical Committee meeting scheduled for June 12, 2014. A review

Page 2 of 3

and comment period would be completed in July, a Final Draft Report would be issued in

August, final comments would be accepted and a Final Report completed in September.

Doug agreed to release a copy of the current slide presentation for the review of the

meeting participants with the understanding that this information is a status report of the

ongoing work and not to be considered a final product.

Public Comment

Mr. Hopper solicited comment from the Public and received none.

Next Meeting

There being no further business, the next meeting date will be a regular meeting at 10:00

a.m. on June 12, 2014 to be held at the Navigant offices in Folsom, CA. The meeting

was adjourned at 4:00 p.m.

Respectfully submitted,

Martin R. Hopper

General Manager

Page 3 of 3

Attachment 1

ATTENDANCE LIST M-S-R PUBLIC POWER AGENCY SPECIAL TELEPHONIC MEETING

May 27, 2014

3:03 PM NAME STATUS ORGANIZATION Dan Beans Member Redding Doug Boccignone Guest Flynn Consulting, Inc. Toxie Burris Guest Modesto Amy Burroughs Guest Modesto Martin Cabellero Guest Modesto Steve Hance Guest Santa Clara Steven Handy Guest Redding Alan Hockenson Guest Consultant Martin Hopper Chair General Manager Robert Jenkins Guest Flynn Consulting, Inc. Joyce Kinnear Member Santa Clara James McFall Member Modesto Matt Ray Guest Modesto

Page 1 of 1

M-S-R Public Power Agency Staff Report

Date: June 3, 2014 From: Martin R. Hopper, General Manager To: M-S-R PPA Commission Subject: June 2014 General Manager’s Report San Juan Coal Company Arbitration: The billing and accounting for costs reimbursable to the San Juan Coal Company (SJCC) pursuant to

the Underground Coal Sales Agreement are periodically audited by the Utilities (PNM and TEP)

through an independent third party review performed by PricewaterhouseCoopers. The audit

currently in dispute covered the period 2006 – 2009. Three major exceptions pertaining to Labor

Burden, Longwall Shield Repairs, and Surface G&A Allocations were not resolved in the audit

process and were submitted to binding arbitration. The arbitration was conducted the week of May

27, 2014 and the arbitrators’ ruling was released June 2, 2014. Unfortunately, SJCC prevailed on all

issues. The arbitrator’s ruling is final, binding, and not subject to appeal.

The amounts at issue were $5.2 million of unbilled Labor Burden that the Utilities argued was

foregone by SJCC under a prior settlement, $13.9 million for Longwall Shield Repairs due to

original design flaws and thus should have been capitalized and not billed to the Utilities as a

reimbursable operation and maintenance cost, and $1.5 million for Surface G&A Allocations that

the Utilities argued should not have been classified as reimbursable. As the Long Wall Shield

Repairs had been previously billed to and paid by the Utilities, the net magnitude of the decision is

about $6.7 million plus applicable taxes and royalties due SJCC. At this time the Utilities have not

received the final calculation of the amount due including tax and royalty uplifts, nor a proposal

from SJCC on a payment schedule. M-S-R PPA’s share of this cost will be about $630,000 and will

likely be payable prior to year-end. Macintosh HD:Users:martinhopper:My Laptop Documents:M-S-R Public Power Agency:Administrative:Director:June 2014 MSR PPA General Manager's Report.doc

6/5/14

M-S-R PUBLIC POWER AGENCY SAN JUAN PROJECT

STATUS REPORT JUNE 2014

SAN JUAN UNIT 4 OPERATIONS April 2014 Unit Net Generation (MWh) 169,054 Net Capacity Factor (%) 46.3 San Juan Generating Station (San Juan) Unit 4 was limited to 80% of maximum output for the entire month of April due to the pulverizer maintenance program. In addition, Unit 4 experienced 4 separate forced outages during the first 12 days of April totaling almost 245 hours or approximately 10 days. The separate causes of the outages were:

! April 1 – hydrogen cooler leak

! April 4 – gland seal system steam leak

! April 5 – generator hydrogen cooler leak

! April 7 – tube leak in secondary superheater. The good news is that there were no more forced outages after Unit 4 was returned to service on April 12. APRIL COAL BURN OBLIGATION Due to the low availability of Unit 4 in April, M-S-R PPA failed to burn its minimum coal obligation during the month. Not only did M-S-R PPA not benefit from burning Incremental Coal, credits were taken against Incremental Coal burned in earlier months. Put another way, M-S-R PPA burned between 54 and 56 thousand tons per month, January through March and only 29 thousand tons in April.

6/5/14

M-S-R PUBLIC POWER AGENCY SOUTHWEST TRANSMISSION PROJECTS


UNSCHEDULED FLOW The Western Area Power Administration, Desert Southwest Office (Western) has released to the Mead-Phoenix Transmission Line (Mead-Phoenix) Owners/Participants daily flow data from October 2012 through September 2013. For the segment between Mead and Phoenix, unscheduled flow represents about 15 percent of the actual flows observed. However, on the segment between Mead and Marketplace, unscheduled flow represents 64 percent of actual flows. The Los Angeles Department of Water and Power (LADWP) has released to the Mead-Adelanto Owners/Participants daily flow date from October 2013 through September 2013. Unscheduled flow (netted over the year) represents about 13 percent of the actual flows observed. Although the actual flows are into California on Mead-Adelanto, unscheduled flow occurs in both directions. However, the net accumulation of unscheduled flow is into California. This topic will be discussed at the fall meetings of the Engineering and Operating Committee meetings to see if further action needs to be taken.

6/5/14

M-S-R PUBLIC POWER AGENCY PACIFIC NORTHWEST PROJECT


BIG HORN I OPERATION MWH % of 5-Year Average April 2014 56,532 94.2 2014 to Date 190,211 99.2 Project Life (since October 2006) 3,986,671 92.8 BIG HORN II OPERATION MWH % of 5-Year Average April 2014 14,140 105.7 2014 to date 50,163 99.3 Project Life (since November 2010) 428,046 91.3 Operational Data from May 2014 is not yet available. BONNEVILLE POWER ADMINISTRATION (BONNEVILLE) ACTIVITIES Bonneville has decided to take a fresh look at the issues of segmentation and generation inputs cost allocation. It is not clear whether this effort will result in rate changes; however, impacts could be either positive or negative. Details about the Bonneville capital finance situation are surfacing and are drawing concern. One issue is that fact that Bonneville continues to back the financings associated with Washington Public Power Supply System (WPPSS) Nuclear Units 1 and 3. The annual cost supporting these projects is approximately $300 Million per year with no apparent benefit. More details are expected at future Bonneville meetings.


Date: June 3, 2014 From: Martin R. Hopper, General Manager To: M-S-R PPA Commission Subject: June 2014 Outside Services Budget versus Actual Report Major Legal Providers Reporting Are: Duncan, Weinberg, Genzer, and Pembroke: Through: April 30, 2014

Law Offices of Susie Berlin: Through: April 30, 2014

Porter Simon: Through: April 30, 2014

Major Consulting Providers Reporting Are:

Navigant Consulting: Through: April 30, 2014

KBT LLC: Through: April 30, 2014

Flynn Resource Consultants Through: N/A

Detailed charts of monthly budget versus actual cost comparisons for each provider are

attached in their usual format.

I recommend the Commission note and file this report.

Macintosh HD:Users:martinhopper:My Laptop Documents:M-S-R Public Power Agency:Budget:2014:May 2014 Outside Services Budget v Actual Report.doc

M-S-R PPAAll Legal Summary

6/5/14 2014 Legal Expenses.xlsx

Month of: Apr-2014

By FunctionBudget Current Month

Actual Current Month

Positive Variance

Actual v. Budget % By Function Budget Year

to DateActual Year to

DatePositive Variance

Actual v. Budget %

Generation 11,250 10,994 256 98% Generation 45,000 77,210 (32,210) 172%Gen - Other 0 0 0 0% Gen - Other 0 0 0 0%Transmission 43,583 27,638 15,945 63% Transmission 174,333 94,417 79,916 54%Trans - Other 0 0 0 0% Trans - Other 0 3,856 (3,856) #DIV/0!Renewables 6,833 1,863 4,970 27% Renewables 27,333 13,004 14,329 48%Rens - Other 17,083 18,048 (965) 106% Rens - Other 68,333 81,936 (13,603) 120%Administrative 3,667 56 3,610 2% Administrative 14,667 7,935 6,731 54%Total 82,417 58,599 23,818 71% Total 329,667 278,358 51,308 84%

By ProviderBudget Current Month


Positive Variance

Actual v. Budget % By Provider Budget Year



Actual v. Budget %

Duncan 62,083 43,992 18,091 71% Duncan 248,333 182,915 65,418 74%Berlin 9,500 6,415 3,085 68% Berlin 38,000 21,724 16,276 57%Porter Simon 10,833 6,694 4,140 62% Porter Simon 43,333 63,658 (20,325) 147%Others 0 1,498 (1,498) #DIV/0! Others 0 10,061 (10,061) #DIV/0!Total 82,417 58,599 23,818 71% Total 329,667 278,358 51,308 84%

CURRENT MONTH YEAR TO DATE

-‐

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

All Legal -‐ Total

CUMMULATIVE BUDGET

CUMMULATIVE ACTUAL

M-S-R PPADuncan Summary


Month of: Apr-2014

Budget Current Month


Positive Variance

Actual v. Budget %

Generation 0 0 0 0%Gen - Other 0 0 0 0%Transmission 42,500 25,944 16,556 61%Trans - Other 0 0 0 0%Renewables 2,500 0 2,500 0%Rens - Other 17,083 18,048 (965) 106%Administrative 0 0 0 0%Total 62,083 43,992 18,091 71%

Budget Year to Date

Actual Year to Date

Positive Variance

Actual v. Budget %

Generation 0 0 0 0%Gen - Other 0 0 0 0%Transmission 170,000 92,723 77,277 55%Trans - Other 0 3,856 (3,856) #DIV/0!Renewables 10,000 4,400 5,600 44%Rens - Other 68,333 81,936 (13,603) 120%Administrative 0 0 0 0%Total 248,333 182,915 65,418 74%

CURRENT MONTH

YEAR TO DATE

-‐ 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000

1,000,000

Jan-‐2014

Feb-‐2014

Mar-‐2014

Apr-‐2014

May-‐2014

Jun-‐2014

Jul-‐2

014

Aug-‐2014

Sep-‐2014

Oct-‐201

4

Nov-‐2014

Dec-‐201

4

Duncan -‐ Total

CUMMULATIVE BUDGET

CUMMULATIVE ACTUAL

M-S-R PPABerlin Summary


Month of: Apr-2014



Positive Variance

Actual v. Budget %

Generation 5,000 4,548 452 91%Gen - Other 0 0 0 0%Transmission 0 0 0 0%Trans - Other 0 0 0 0%Renewables 4,167 1,863 2,304 45%Rens - Other 0 0 0 0%Administrative 333 4 329 1%Total 9,500 6,415 3,085 68%

Budget Year to Date

Actual Year to Date

Positive Variance

Actual v. Budget %

Generation 20,000 12,019 7,981 60%Gen - Other 0 0 0 0%Transmission 0 0 0 0%Trans - Other 0 0 0 0%Renewables 16,667 7,988 8,678 48%Rens - Other 0 0 0 0%Administrative 1,333 1,717 (384) 129%Total 38,000 21,724 16,276 57%

CURRENT MONTH

YEAR TO DATE

-‐

20,000

40,000

60,000

80,000

100,000

120,000

Jan-‐2014

Feb-‐2014

Mar-‐2014

Apr-‐2014

May-‐2014

Jun-‐2014

Jul-‐2

014

Aug-‐2014

Sep-‐2014

Oct-‐201

4

Nov-‐2014

Dec-‐201

4

Berlin -‐ Total

CUMMULATIVE BUDGET

CUMMULATIVE ACTUAL

M-S-R PPAMisc Legal Summary


Month of: Apr-2014



Positive Variance

Actual v. Budget %

Generation 0 1,498 (1,498) #DIV/0!Gen - Other 0 0 0 0%Transmission 0 0 0 0%Trans - Other 0 0 0 0%Renewables 0 0 0 0%Rens - Other 0 0 0 0%Administrative 0 0 0 0%Total 0 1,498 (1,498) #DIV/0!

Budget Year to Date

Actual Year to Date

Positive Variance

Actual v. Budget %

Generation 0 10,061 (10,061) #DIV/0!Gen - Other 0 0 0 0%Transmission 0 0 0 0%Trans - Other 0 0 0 0%Renewables 0 0 0 0%Rens - Other 0 0 0 0%Administrative 0 0 0 0%Total 0 10,061 (10,061) #DIV/0!

CURRENT MONTH

YEAR TO DATE

-‐

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Jan-‐2014

Feb-‐2014

Mar-‐2014

Apr-‐2014

May-‐2014

Jun-‐2014

Jul-‐2

014

Aug-‐2014

Sep-‐2014

Oct-‐201

4

Nov-‐2014

Dec-‐201

4

Misc Legal -‐ Total

CUMMULATIVE BUDGET

CUMMULATIVE ACTUAL

M-S-R PPAPorter Simon Summary


Month of: Apr-2014



Positive Variance

Actual v. Budget %

Generation 6,250 4,947 1,303 79%Gen - Other 0 0 0 0%Transmission 1,083 1,694 (611) 156%Trans - Other 0 0 0 0%Renewables 167 0 167 0%Rens - Other 0 0 0 0%Administrative 3,333 52 3,281 2%Total 10,833 6,694 4,140 62%

Budget Year to Date

Actual Year to Date

Positive Variance

Actual v. Budget %

Generation 25,000 55,130 (30,130) 221%Gen - Other 0 0 0 0%Transmission 4,333 1,694 2,639 39%Trans - Other 0 0 0 0%Renewables 667 616 51 92%Rens - Other 0 0 0 0%Administrative 13,333 6,218 7,115 47%Total 43,333 63,658 (20,325) 147%

CURRENT MONTH

YEAR TO DATE

-‐

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Jan-‐2014

Feb-‐2014

Mar-‐2014

Apr-‐2014

May-‐2014

Jun-‐2014

Jul-‐2

014

Aug-‐2014

Sep-‐2014

Oct-‐201

4

Nov-‐2014

Dec-‐201

4

Porter Simon -‐ Total

CUMMULATIVE BUDGET

CUMMULATIVE ACTUAL

6/5/14 2014 Input 2014 Legal Expenses.xlsx

Legal Costs - 2014 2014 Budget Jan-2014 Feb-2014 Mar-2014 Apr-2014 May-2014 Jun-2014 Jul-2014 Aug-2014 Sep-2014 Oct-2014 Nov-2014 Dec-2014 Total Average Year-End Notes8.33% 16.67% 25.00% 33.33% 41.67% 50.00% 58.33% 66.67% 75.00% 83.33% 91.67% 100.00% Projection

DWG&PTransmission

FERC Gen'l 300,000 19,331 15,071 19,132 22,444 75,977 18,994 227,931 SCE 200,000 8,130 3,138 1,978 3,500 16,746 4,187 50,238 SCE Experts 10,000 - - - - - - -

Trans - OtherOther Trans - TRR 200,000 2,204 380 1,272 - 3,856 964 11,568 CASIO Rate Case/SWTP

RenewablesBPA/PNW Gen'l 30,000 3,549 166 684 - 4,400 1,100 13,199

Rens - OtherOMP/BPA Rate Case 205,000 19,152 25,422 19,314 18,048 81,936 20,484 245,809

945,000 52,366 44,177 42,380 43,992 - - - - - - - - 182,915 45,729 548,745 5.54% 10.22% 14.70% 19.36% 19.36% 19.36% 19.36% 19.36% 19.36% 19.36% 19.36% 19.36% 58%

McCarthy & BerlinGeneration

AB32/Cap & Trade/SB136860,000 1,173 2,647 3,652 4,548 12,019 3,005 36,056 Renewables

RES/RPS 50,000 4,082 972 1,072 1,863 7,988 1,997 23,965 A&G 4,000 816 856 42 4 1,717 429 5,151

114,000 6,070 4,474 4,766 6,415 - - - - - - - - 21,724 5,431 65,172 5.32% 9.25% 13.43% 19.06% 19.06% 19.06% 19.06% 19.06% 19.06% 19.06% 19.06% 19.06% 57%

PNW CounselRenewables

PNW - - - - - - Rens - Other

BPA Rate Case - - - - - - OMP/IRI Complaint - - - - - -

- - - - - - - - - - - - - - - - #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Others Italics = EstimatesGeneratiion

Montgomery Andrews - 649 395 7,519 1,498 2,515 30,183 Trans - Other

TBD - CAISO 150,000 - - - - TCA/PTO Agreements150,000 649 395 7,519 1,498 - - - - - - - - - 2,515 30,183

0.43% 0.70% 5.71% 6.71% 6.71% 6.71% 6.71% 6.71% 6.71% 6.71% 6.71% 6.71% 20%- -

Sub Total 1,209,000 59,085 49,046 54,664 51,906 - - - - - - - - 204,639 53,675 644,100 4.89% 8.94% 13.47% 17.76% 17.76% 17.76% 17.76% 17.76% 17.76% 17.76% 17.76% 17.76% 53%

Porter SimonM-S-R PPA

Generation 75,000 22,240 13,413 14,530 4,947 55,130 13,782 165,390 Transmission 13,000 - - - 1,694 1,694 424 5,082

Renewables 2,000 220 396 - - 616 154 1,848 A&G 40,000 4,010 582 1,574 52 6,218 1,555 18,655

130,000 26,470 14,391 16,104 6,694 - - - - - - - - 63,658 15,915 190,975 20.36% 31.43% 43.82% 48.97% 48.97% 48.97% 48.97% 48.97% 48.97% 48.97% 48.97% 48.97% 147%

G 135,000 67,149 201,446 T 873,000 98,273 294,819 R 287,000 94,940 284,821 A 44,000 7,935 23,806

1,339,000 268,297 804,892

M-S-R PPATotal Outside Consult Summary

6/3/14 2014 Consulting Expenses.xlsx

Month of: Apr-2014

By FunctionBudget Current Month


Positive Variance

Actual v. Budget % By Function Budget Year



Actual v. Budget %

Generation 11,458 13,490 (2,032) 118% Generation 45,833 67,609 (21,775) 148%Gen - Other 3,333 2,280 1,053 68% Gen - Other 13,333 3,800 9,533 29%Transmission 8,750 5,320 3,430 61% Transmission 35,000 24,676 10,324 71%Trans - Other 25,050 0 25,050 0% Trans - Other 25,050 0 25,050 0%Renewables 6,250 1,520 4,730 24% Renewables 25,000 9,431 15,569 38%Rens - Other 7,083 4,800 2,283 68% Rens - Other 28,333 14,480 13,853 51%Administrative 4,167 3,758 409 90% Administrative 16,667 17,177 (510) 103%Total 66,092 31,168 34,924 47% Total 189,217 137,172 52,044 72%

By ProviderBudget Current Month


Positive Variance

Actual v. Budget % By Provider Budget Year



Actual v. Budget %

Navigant 4,375 1,098 3,277 25% Navigant 17,500 12,401 5,099 71%KBT 33,750 30,070 3,680 89% KBT 135,000 118,804 16,196 88%Flynn RCI 25,050 0 25,050 0% Flynn RCI 25,050 0 25,050 0%Others 27,967 0 27,967 0% Others 36,717 5,968 30,749 16%Total 91,142 31,168 59,974 34% Total 214,267 137,172 77,094 64%

CURRENT MONTH YEAR TO DATE

-‐

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Jan-‐2014 Feb-‐2014 Mar-‐2014 Apr-‐2014 May-‐2014 Jun-‐2014 Jul-‐2014 Aug-‐2014 Sep-‐2014 Oct-‐2014 Nov-‐2014 Dec-‐2014

Outside Services Consultants -‐ Total

CUMMULATIVE BUDGET

CUMMULATIVE ACTUAL

M-S-R PPANavigant Summary


Month of: Apr-2014



Positive Variance

Actual v. Budget %

Generation 625 0 625 0%Gen - Other 0 0 0 0%Transmission 2,917 0 2,917 0%Trans - Other 0 0 0 0%Renewables 0 0 0 0%Rens - Other 0 0 0 0%Administrative 833 1,098 (264) 132%Total 4,375 1,098 3,277 25%

Budget Year to Date

Actual Year to Date

Positive Variance

Actual v. Budget %

Generation 2,500 464 2,037 19%Gen - Other 0 0 0 0%Transmission 11,667 8,906 2,761 76%Trans - Other 0 0 0 0%Renewables 0 0 0 0%Rens - Other 0 0 0 0%Administrative 3,333 3,031 302 91%Total 17,500 12,401 5,099 71%

YEAR TO DATE

CURRENT MONTH

-‐

10,000

20,000

30,000

40,000

50,000

60,000

Jan-‐2014

Feb-‐2014

Mar-‐2014

Apr-‐2014

May-‐2014

Jun-‐2014

Jul-‐2

014

Aug-‐2014

Sep-‐2014

Oct-‐201

4

Nov-‐2014

Dec-‐201

4

Navigant -‐ Total

CUMMULATIVE BUDGET

CUMMULATIVE ACTUAL

M-S-R PPAKBT Summary


Month of: Apr-2014



Positive Variance

Actual v. Budget %

Generation 10,000 13,490 (3,490) 135%Gen - Other 3,333 2,280 1,053 68%Transmission 5,833 5,320 513 91%Trans - Other 0 0 0 0%Renewables 6,250 1,520 4,730 24%Rens - Other 5,000 4,800 200 96%Administrative 3,333 2,660 673 80%Total 33,750 30,070 3,680 89%

Budget Year to Date

Actual Year to Date

Positive Variance

Actual v. Budget %

Generation 40,000 61,177 (21,177) 153%Gen - Other 13,333 3,800 9,533 29%Transmission 23,333 15,770 7,563 68%Trans - Other 0 0 0 0%Renewables 25,000 9,431 15,569 38%Rens - Other 20,000 14,480 5,520 72%Administrative 13,333 14,146 (812) 106%Total 135,000 118,804 16,196 88%

YEAR TO DATE

CURRENT MONTH

-‐

100,000

200,000

300,000

400,000

500,000

600,000

Jan-‐2014

Feb-‐2014

Mar-‐2014

Apr-‐2014

May-‐2014

Jun-‐2014

Jul-‐2

014

Aug-‐2014

Sep-‐2014

Oct-‐201

4

Nov-‐2014

Dec-‐201

4

KBT -‐ Total

CUMMULATIVE BUDGET

CUMMULATIVE ACTUAL

M-S-R PPAMisc Consultants Summary


Month of: Apr-2014



Positive Variance

Actual v. Budget %

Generation 833 0 833 0%Gen - Other 0 0 0 0%Transmission 0 0 0 0%Trans - Other 0 0 0 0%Renewables 0 0 0 0%Rens - Other 0 0 0 0%Administrative 0 0 0 0%Total 833 0 833 0%

Budget Year to Date

Actual Year to Date

Positive Variance

Actual v. Budget %

Generation 3,333 5,968 (2,635) 179%Gen - Other 0 0 0 0%Transmission 0 0 0 0%Trans - Other 0 0 0 0%Renewables 0 0 0 0%Rens - Other 0 0 0 0%Administrative 0 0 0 0%Total 3,333 5,968 (2,635) 179%

YEAR TO DATE

CURRENT MONTH

-‐

2,000

4,000

6,000

8,000

10,000

12,000

Jan-‐2014

Feb-‐2014

Mar-‐2014

Apr-‐2014

May-‐2014

Jun-‐2014

Jul-‐2

014

Aug-‐2014

Sep-‐2014

Oct-‐201

4

Nov-‐2014

Dec-‐201

4

Misc Consultants -‐ Total

CUMMULATIVE BUDGET

CUMMULATIVE ACTUAL

M-S-R PPAFlynn RCI Summary


Month of: Apr-2014



Positive Variance

Actual v. Budget %

Generation 0 0 0 0%Gen - Other 0 0 0 0%Transmission 0 0 0 0%Trans - Other 25,050 0 25,050 0%Renewables 0 0 0 0%Rens - Other 0 0 0 0%Administrative 0 0 0 0%Total 25,050 0 25,050 0%

Budget Year to Date

Actual Year to Date

Positive Variance

Actual v. Budget %

Generation 0 0 0 0%Gen - Other 0 0 0 0%Transmission 0 0 0 0%Trans - Other 25,050 0 25,050 0%Renewables 0 0 0 0%Rens - Other 0 0 0 0%Administrative 0 0 0 0%Total 25,050 0 25,050 0%

CURRENT MONTH

YEAR TO DATE

-‐ 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000

Jan-‐2014

Feb-‐2014

Mar-‐2014

Apr-‐2014

May-‐2014

Jun-‐2014

Jul-‐2

014

Aug-‐2014

Sep-‐2014

Oct-‐201

4

Nov-‐2014

Dec-‐201

4

Flynn RCI -‐ Total

CUMMULATIVE BUDGET

CUMMULATIVE ACTUAL

6/3/14 2014 Input 2014 Consulting Expenses.xlsx

Consultant Costs - 2013 2014 Budget Task Orders Jan-2014 Feb-2014 Mar-2014 Apr-2014 May-2014 Jun-2014 Jul-2014 Aug-2014 Sep-2014 Oct-2014 Nov-2014 Dec-2014 Total Average Year-End Notes8.33% 16.67% 25.00% 33.33% 41.67% 50.00% 58.33% 66.67% 75.00% 83.33% 91.67% 100.00% Projection

NavigantGeneration

General 7,500 464 - - - 464 116 1,391 Transmission

SCE TO-6 et al 35,000 - - 8,906 - 8,906 2,227 26,718 Other Trans

TRR - - - - - - - - CAISO Rate CaseRenewables - - - - - - - -

Administrative 10,000 791 818 325 1,098 3,031 758 9,094 52,500 1,255 818 9,231 1,098 - - - - - - - - 12,401 3,100 37,202

2.39% 3.95% 21.53% 23.62% 23.62% 23.62% 23.62% 23.62% 23.62% 23.62% 23.62% 23.62% 71%

KBTGeneration

General 120,000 19,695 11,311 16,681 13,490 61,177 15,294 160,590 Gen - Other

SJGS Disposition 40,000 SJGS Options/AgreementsKBT-2 15,770 - - 1,520 2,280 3,800 950 11,400 Consultants Report re Bonds

- - - - Remaining 24,230

TransmissionGeneral 70,000 1,710 4,750 3,990 5,320 15,770 3,943 47,310

Trans - OtherBond Opinion 25,000 - - - - - - - Bond OpinionManagement 49,700 - - - - - - - Management

RenewablesGeneral 75,000 1,850 2,291 3,770 1,520 9,431 2,358 28,293

Rens - OtherBPA Rate Case 35,000 - BPA Rate Case

KBT-1 1,600 640 3,120 3,760 1,880 3,760 Jan - FebKBT-3 4,800 3,520 4,800 8,320 4,160 8,320 Mar - AprKBT-4 10,240 - - - - May - Jun

- - - - - - - -

Remaining 18,360 BPA - OMP/IRI Cases 25,000 BPA - OMP/IRI Cases

KBT-1 2,560 640 640 1,280 640 1,280 Jan - FebKBT-3 2,560 1,120 - 1,120 560 1,120 Mar - AprKBT-4 1,280 - - - - May - Jun

- - - - - - - -

Remaining 18,600 Administrative 40,000 6,903 2,481 2,101 2,660 14,146 3,536 42,437

- - - - Remaining 40,000

479,700 31,439 24,593 32,703 30,070 - - - - - - - - 118,804 33,321 304,510 6.55% 11.68% 18.50% 24.77% 24.77% 24.77% 24.77% 24.77% 24.77% 24.77% 24.77% 24.77% 63%

Mayson Italics = EstimatesGeneration - - - -

Transmission - - - - Renewables - - - - Rens - Other

BPA Rate Case 20,000 - - - - - - - - - - - BPA Rate CaseBPA - OMP/IRI Cases 5,000 - - - - - - - - BPA - OMP/IRI Cases

Administrative - - 25,000 - - - - - - - - - - - - - - -

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0%

Flynn RCIGeneration - - - -

Transmission - - - - Trans - Other

SWTP Study 150,300 - - Renewables - - - - Rens - Other -

Administrative - - - 150,300 - - - - - - - - - - - - - - -

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0%

Misc (MID etc) - Generation

Ferguson Group 10,000 - 1,521 4,447 5,968 1,989 23,871 SJGS DCA AdvocateTransmissionTrans - OtherRenewables - - - - - - - - - - - - -

Administrative - - - - - - - - - - - - - 10,000 - 1,521 4,447 - - - - - - - - - 5,968 497 5,968

0.00% 15.21% 59.68% 59.68% 59.68% 59.68% 59.68% 59.68% 59.68% 59.68% 59.68% 59.68%

Total 717,500 32,693 26,932 46,380 31,168 - - - - - - - - 137,172 36,918 443,022 4.56% 8.31% 14.77% 19.12% 19.12% 19.12% 19.12% 19.12% 19.12% 19.12% 19.12% 19.12% 62%

G 177,500 T 330,000 R 160,000 A 50,000

717,500

CONSULTING EXPENSES PeachtreeGeneration 127,500 20,159 11,311 16,681 13,490 - - - - - - - - 61,641 55,880 (5,760) Added KBT MayGen - Other 40,000 - - 1,520 2,280 - - - - - - - - 3,800 15,770 11,970 Added KBT MayGen - Outside Svc Gen 10,000 - 1,521 4,447 - - - - - - - - - 5,968 6,862 894 Transmission 105,000 1,710 4,750 12,896 5,320 - - - - - - - - 24,676 65,277 40,601 Added KBT MayOther Trans #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF!Renewables 75,000 1,850 2,291 3,770 1,520 - - - - - - - - 9,431 21,420 11,989 Added KBT MayRens - Other 85,000 1,280 3,760 4,640 4,800 - - - - - - - - 14,480 41,040 26,560 Added KBT May

Administrative 50,000 7,694 3,299 2,426 3,758 - - - - - - - - 17,177 24,822 7,645 Added KBT May#REF! - #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF!

Page 1 of 1


Date: June 3, 2014 From: Martin R. Hopper, General Manager To: M-S-R PPA Technical Committee Subject: June 2014 WREGIS REC Transfers Status Report Last year, the General Manager met with Iberdrola Renewables, Inc regarding the status of its

transfers of Western Renewable Energy Generation Information System (WREGIS) Renewable

Energy Credits (RECs) for the Big Horn I and Big Horn II Wind Energy Projects to M-S-R PPA.

Ideally, the WREGIS timelines would allow transfers of RECs to M-S-R PPA about 90-days after

the close of a reporting month. At the time of that meeting, some transfers were as many as 215-days

outstanding. Iberdrola has subsequently reviewed its internal procedures and has completed Big

Horn I and Big Horn II transfers in a timely manner and no RECs now exceed 90-days outstanding.

The attached chart illustrates current and historic status of REC transfers. As requested by the

Commission, this report will be updated and presented every 60-days.

I recommend the Commission note and file the June 2014 WREGIS REC Transfers Status Report.

WREGIS Transfer Durations.xlsx 6/3/14

0

90

180

270

360

450

540

630

Jan-‐08 May-‐09 Oct-‐10 Feb-‐12 Jul-‐13

Elap

sed Time (Days)

Month

Big Horn I & II REC Transfers

BH I Dura?on

BH II Dura?on

Open Transfers

6/3/14 WREGIS Transfer Durations.xlsx

REC Transfer Timeliness

Month Ending

Date Transferred to Members

BH I DurationDate

Transferred to Members

BH II Duration Today's Date Open

Transfers

Jan-08 29-Jun-09 515Feb-08 29-Jun-09 486Mar-08 29-Jun-09 455Apr-08 29-Jun-09 425May-08 29-Jun-09 394Jun-08 29-Jun-09 364Jul-08 29-Jun-09 333Aug-08 8-Jun-09 281Sep-08 8-Jun-09 251Oct-08 29-Jun-09 241Nov-08 8-Jun-09 190Dec-08 8-Jun-09 159Jan-09 8-Jun-09 128Feb-09 29-Jun-09 121Mar-09 7-Jul-09 98Apr-09 2-Sep-09 125May-09 2-Sep-09 94Jun-09 5-Nov-09 128Jul-09 30-Nov-09 122Aug-09 15-Dec-09 106Sep-09 8-Jan-10 100Oct-09 8-Feb-10 100Nov-09 10-Mar-10 100Dec-09 9-Apr-10 99Jan-10 10-May-10 99Feb-10 10-Jun-10 102Mar-10 10-Aug-10 132Apr-10 10-Aug-10 102May-10 10-Sep-10 102Jun-10 13-Oct-10 105Jul-10 9-Nov-10 101Aug-10 10-Dec-10 101Sep-10 2-May-11 214Oct-10 2-May-11 183Nov-10 9-May-11 160 9-May-11 160Dec-10 3-Jun-11 154 3-Jun-11 154Jan-11 11-Jul-11 161 11-Jul-11 161Feb-11 11-Jul-11 133 11-Jul-11 133Mar-11 11-Jul-11 102 11-Jul-11 102Apr-11 29-Aug-11 121 31-Aug-11 123May-11 30-Aug-11 91 31-Aug-11 92Jun-11 8-Nov-11 131 8-Nov-11 131Jul-11 8-Nov-11 100 8-Nov-11 100Aug-11 30-Nov-11 91 30-Nov-11 91Sep-11 20-Jan-12 112 20-Jan-12 112Oct-11 15-Feb-12 107 15-Feb-12 107Nov-11 24-May-12 176 24-May-12 176Dec-11 24-May-12 145 24-May-12 145Jan-12 15-Aug-12 197 15-Aug-12 197Feb-12 15-Aug-12 168 15-Aug-12 168Mar-12 15-Aug-12 137 15-Aug-12 137Apr-12 15-Aug-12 107 15-Aug-12 107May-12 30-Aug-12 91 30-Aug-12 91Jun-12 1-Oct-12 93 1-Oct-12 93Jul-12 31-Oct-12 92 31-Oct-12 92Aug-12 30-Nov-12 91 30-Nov-12 91Sep-12 3-May-13 215 3-May-13 215Oct-12 3-May-13 184 3-May-13 184Nov-12 3-May-13 154 3-May-13 154Dec-12 3-May-13 123 3-May-13 123Jan-13 3-Jun-13 123 3-May-13 92Feb-13 3-Jun-13 95 3-Jun-13 95Mar-13 2-Jul-13 93 2-Jul-13 93Apr-13 31-Jul-13 92 31-Jul-13 92May-13 4-Sep-13 96 5-Sep-13 97Jun-13 1-Oct 93 1-Oct 93Jul-13 21-Nov 113 21-Nov 113Aug-13 5-Dec 96 5-Dec 96Sep-13 2-Jan 94 2-Jan 94Oct-13 3-Feb 95 3-Feb 95Nov-13 3-Mar 93 3-Mar 93Dec-13 3-Apr 93 4-Apr 94Jan-14 8-May 97 8-May 97Feb-14 3-Jun 95 3-Jun 95Mar-14 3-Jun-14 64 Apr-14 3-Jun-14 34 May-14 3-Jun-14 3

Big Horn I Big Horn II

Page 1 of 1


Date: June 3, 2014 From: Martin R. Hopper, General Manager To: M-S-R PPA Technical Committee Subject: Southwest Transmission Project Review – Update on Flynn RCI Review

of SWTP Options On March 19, 2014, the M-S-R PPA Commission approved an Agreement for Professional Services With Flynn Resource Consultants, Inc., to perform a review of the highest and best use of the Southwest Transmission Project (SWTP) as outlined below: Task I – Initial Overview of Options

Task I-A –Analysis of the Retention of the SWTP

Task I-B – Analytical Review of the Financial Value of the SWTP Task I-C – Analysis of Becoming a PTO in the CAISO

Task I-D – Sale or Layoff of the Southwest Transmission Project Asset:

Task I-E (Optional) – If directed by MSR, Conduct an RFO

Task I-F – Initial Report to M-S-R PPA Task II – Final Recommendation

Task II-A – Final Recommended Course of Action Task II-B – Attestation

The Technical Committee held a kickoff meeting with Flynn RCI on April 10, 2014 regarding performance of Task I of SWTP. The Technical Committee received a preliminary review of Task 1 Work-products (Initial Overview of Options and Valuations) on May 27, 2014. At this meeting the Consultant will present their initial draft of the Task 1 Work-products and set a schedule to receive comments from the Members.