RR8-364 of

Transcription

1 DOCKET NO APPLICATION OF SOUTHWESTERN PUBLIC SERVICE COMPANY FOR AUTHORITY TO CHANGE RATES AND TO RECONCILE FUEL AND PURCHASED POWER COSTS FOR THE PERIOD JULY 1, 2012 THROUGH JUNE 30, 2013 PUBLIC UTILITY COMMISSION OF TEXAS DIRECT TESTIMONY of JOHN S. FULTON on behalf of (filename: FultonRRDirect.doc) Table of Contents GLOSSARY OF ACRONYMS AND DEFINED TERMS... 2 LIST OF ATTACHMENTS... 3 I. WITNESS IDENTIFICATION AND QUALIFICATIONS... 4 II. ASSIGNMENT AND SUMMARY OF TESTIMONY AND RECOMMENDATIONS... 7 III. TRANSMISSION AND SUBSTATION CAPITAL ADDITIONS... 8 IV. CONCLUSION AFFIDAVIT Fulton Direct Revenue Requirement Page 1 RR8-364 of

2 GLOSSARY OF ACRONYMS AND DEFINED TERMS Acronym/Defined Term Commission kv NTC OATT OGE Operating Companies PSCo SPP SPS Meaning Public Utility Commission of Texas Kilovolt Notice to Construct Open Access Transmission Tariff Oklahoma Gas & Electric Company Northern States Power Company, a Minnesota corporation; Northern States Power Company, a Wisconsin corporation; PSCo; and SPS Public Service Company of Colorado Southwest Power Pool Southwestern Public Service Company, a New Mexico corporation Test Year July 1, 2012 through June 30, 2013 Total Company or total company Xcel Energy XES Total SPS (before any jurisdictional allocation) Xcel Energy Inc. Xcel Energy Services Inc. Fulton Direct Revenue Requirement Page 2 RR8-365 of

3 LIST OF ATTACHMENTS Attachment JSF-RR-1 JSF-RR-2 JSF-RR-3 Description Partial List of Appearances before Regulatory Bodies (filename: JSF-RR-1.doc) Transmission and Substation Capital Additions (filename: JSF-RR-2.xls) Transmission Capital Additions Summary of Projects (filename: JSF-RR-3.xls) Fulton Direct Revenue Requirement Page 3 RR8-366 of

4 DIRECT TESTIMONY OF JOHN S. FULTON I. WITNESS IDENTIFICATION AND QUALIFICATIONS Q. Please state your name and business address. A. My name is John S. Fulton. My business address is 600 S. Tyler Street, Amarillo, Texas, Q. On whose behalf are you testifying in this proceeding? A. I am filing testimony on behalf of Southwestern Public Service Company, a New Mexico corporation ( SPS ) a wholly-owned electric utility subsidiary of Xcel Energy Inc. ( Xcel Energy ). Xcel Energy is a registered holding company and owns several electric and natural gas utility operating companies. 1 Q. By whom are you employed and in what position? A. I am employed by SPS as Manager, Transmission Asset Management. Q. Please briefly outline your responsibilities as Manager, Transmission Asset Management. A. I provide overall management direction for SPS s transmission planning staff in Amarillo. Their duties include planning new transmission facilities required for generation and customer additions. I also direct SPS s involvement with the Southwest Power Pool s ( SPP ) transmission planning activities. In addition, I direct the preparation of the SPS transmission capital budget. Finally, I interact 1 Xcel Energy is the parent company of four wholly owned electric utility operating companies: Northern States Power Company, a Minnesota corporation; Northern States Power Company, a Wisconsin corporation; Public Service Company of Colorado ( PSCo ), a Colorado corporation; and SPS (collectively, Operating Companies ). Xcel Energy s natural gas pipeline subsidiary is WestGas InterState, Inc. Fulton Direct Revenue Requirement Page 4 RR8-367 of

5 with retail and wholesale customers seeking new service, as well as wind developers working on interconnection with the SPS transmission system. Q. Please describe your educational background. A. I received my Bachelor of Science in Electric Engineering degree in 1974 from 5 New Mexico State University. In 1977, I received a Master of Science in Electrical Engineering degree from New Mexico State University. Q. Please describe your professional experience. A. From 1974 to 1975, I was employed as an electrical distribution engineer with International Minerals and Chemical Corporation. In 1977, I joined West Texas Utilities Company as a planning engineer. I joined SPS as Supervisory Engineer, Electrical Operations, in 1979, and served in that capacity until 1982, when I became System Operations Supervisor, Electrical Operations. In 1992, I became Principal Engineer, System Planning, and in 1997, I assumed my current position, supervising the transmission planning staffs for SPS and PSCo. In 2001, transmission planning for PSCo required a local manager and my position was changed to focus only on SPS. Q. Do you hold any professional licenses? A. Yes. I am a Registered Professional Engineer in New Mexico. Q. Are you a member of any professional organizations? A. Yes. I am a member of the Institute of Electrical Engineers in New Mexico. Fulton Direct Revenue Requirement Page 5 RR8-368 of

6 1 2 3 Q. Have you testified or filed testimony before any regulatory authorities? A. Yes. I have filed testimony or testified before the Public Utility Commission of Texas ( Commission ) in numerous cases, including base rate cases and 4 certificate of convenience and necessity cases. Among other topics, I have testified on SPS s transmission planning activities, transmission capital additions (including capitalized affiliate charges), and SPP policies and activities that affect SPS s transmission operations, planning, capital expenditures, and other costs. I have testified on similar topics before the New Mexico Public Regulation Commission and the Federal Energy Regulatory Commission. A partial list of the cases in which I have testified in Texas and New Mexico is provided in Attachment JSF-RR-1. Fulton Direct Revenue Requirement Page 6 RR8-369 of

7 1 2 II. ASSIGNMENT AND SUMMARY OF TESTIMONY AND RECOMMENDATIONS Q. What is your assignment in this proceeding? A. I sponsor the Transmission and Substation capital additions closed to plant-in-service during the period July 1, 2012, through June 30, 2013 ( Test Year ), some of which include affiliate charges. Q. Please summarize your testimony and recommendations. A. The Transmission and Substation capital additions that I sponsor of $161,371,297 are reasonable and necessary and have been prudently incurred, and the affiliate charges of $3,471,087 included in the capital additions reflect reasonable and necessary costs and services, the charge from SPS s affiliate for a particular service is no higher than the charge by that affiliate to any other entity for the same or similar service, and the costs reasonably approximate the affiliate s cost to provide the service. Fulton Direct Revenue Requirement Page 7 RR8-370 of

8 1 III. TRANSMISSION AND SUBSTATION CAPITAL ADDITIONS Q. As part of this rate case, is SPS asking to include Transmission and Substation capital additions in its rate base? A. Yes. SPS is asking to include the Transmission and Substation capital additions listed on Attachments JSF-RR-2, all of which support SPS s ability to provide electric service to its customers. Q. What is the time period for these Transmission and Substation capital additions? A. These projects are those Transmission and Substation capital projects that closed to plant-in-service during the 12-month period starting on July 1, 2012 and ending on June 30, The starting date for this period (July 1, 2012) is the first month after the end of the test year in SPS s most recent base rate case, Docket No , 2 and the ending date for this period (June 30, 2013) is the end of the Test Year in this current case. Q. Please describe the Transmission and Substation capital additions. A. The Transmission and Substation capital additions are for expanding the SPS transmission system infrastructure and for upgrading the SPS transmission system to interconnect new generation resources, to maintain reliability, and to improve load-serving capability. operations. These capital additions support SPS s transmission 2 In the Matter of the Application of Southwestern Public Service Company for Authority to Change Rates and to Reconcile Fuel and Purchased Power Costs for the Period January 1, 2010 Through June 30, 2012, (Jun. 19, 2013). Fulton Direct Revenue Requirement Page 8 RR8-371 of

9 Q. What is the dollar amount of the Transmission and Substation capital additions that SPS is requesting in this docket? A. The total dollar amount of Transmission and Substation capital additions closed to plant for SPS during the period July 1, 2012 through June 30, 2013 is $161,371,297 (total SPS before jurisdictional allocations, or Total Company ). SPS witness Kathy McNulty Kropp will allocate the total company dollar amount among SPS s jurisdictions (Texas retail; New Mexico retail; and wholesale). Attachment JSF-RR-2 provides a list of all the Transmission and Substation capital additions closed to plant during this 12-month period. Q. Please describe the information in Attachment JSF-RR-2, which provides the details about the dollar amounts closed to plant in service for these Transmission and Substation capital additions and the associated affiliate component. A. Attachment JSF-RR-2 provides the following information: Column A Work Order Number Provides the Work Order number for the project Column B Work Order Description Provides a short title for the work order. Column C Asset Class Identifies the type of asset. Column D Witness Identifies the witness supporting the project. Column E Parent Provides the parent work order number for the project Column F Parent Description Provides a short title for the parent work order Fulton Direct Revenue Requirement Page 9 RR8-372 of

10 Column G In-Service Date Date that the project was completed and added to plant-in-service. Column H Column I Column J Column K Column L Addition to Plant-in- Service (July 2012 June 2013) XES Charges (Included in Column H) Other Affiliate Charges (Included in Column H) Total Affiliate Charges (Included in Column H) Total Native Charges (Columns H less K) Within the Total Additions to Plant-in- Service Shown in Column H The total company dollar amount of the addition to plant-in-service for the project. The amount of charges from XES that are included in the total company dollar amount of addition to plant-in-service for the project in Column H. The amount of charges from affiliates other than XES that are included in the total company dollar amount of addition to plant-in-service for the project in Column H. Total of Columns I and J associated with new plant-in-service shown in Column H. The dollar amount (total company) of the addition to plant in service in Column H that is not an affiliate charge Q. Attachment JSF-RR-2 includes capitalized affiliate costs. Are those affiliate costs necessary to complete the Transmission and Substation capital projects in support of SPS s operations? A. Yes. Many employees in the Transmission and Substation organization perform work that causes their labor and expenses to be capitalized, rather than expensed. For example, Transmission and Substation engineers who do design work routinely charge their time to specific capital projects, and these costs are charged back to SPS as part of the capital project cost. In addition, the capital projects Fulton Direct Revenue Requirement Page 10 RR8-373 of

11 include overhead charges that reflect labor and other costs as discussed by SPS witness Lisa H. Perkett. When those projects are complete, the costs, including the labor charges, are recorded as new assets. Q. What portion of the total Transmission and Substation capital costs included in Attachment JSF-RR-2 are affiliate charges? A. The affiliate charges included in Attachment JSF-RR-2 are $3,471,087 which is approximately 2% of SPS s total $161,371,297 capital costs. Q. Are the costs of these capitalized affiliate charges reasonable? A. Yes. SPS witness Alan L. Bellinghausen addresses the reasonableness of the Test Year affiliate charges to SPS for the Transmission affiliate class, which are the affiliate classes that contain these capitalized costs. Mr. Bellinghausen discusses the services provided, explains that those services are reasonable and necessary for SPS s operation, that the costs for those services are reasonable and necessary, that the services do not duplicate services that SPS provides to itself or that are provided from any other source, and that XES charges to SPS for those services are no higher than the charges to SPS affiliates for the same or similar services. That discussion also applies to these capitalized affiliate costs of $3,471,087 for the entire 12-month capital additions period. Thus, that discussion supports the reasonableness and necessity of these capitalized affiliate costs for the period from July 1, 2012 through June 30, Fulton Direct Revenue Requirement Page 11 RR8-374 of

12 Q. What is the difference between the affiliate charges discussed by Mr. Bellinghausen and the affiliate charges you discuss regarding capital additions? A. The affiliate charges discussed by Mr. Bellinghausen were those related to only operation and maintenance affiliate expense during the Test Year. In contrast, the affiliate charges that I discuss in this section of my testimony refer to the capitalized affiliate charges that were closed to plant-in-service during the period from July 1, 2012 through June 30, Q. Were the Transmission and Substation capital additions, including the capitalized affiliate charges, reasonable and necessary? A. Yes. The projects listed on Attachment JSF-RR-3 were necessary to expand and sustain the transmission grid that serves as the path between generation and the distribution systems. For example, SPS must construct new transmission lines and substations to interconnect new generation and to deliver that energy reliably 15 through the transmission grid. SPS also must complete transmission system rehabilitation projects related to transmission line and substation improvements, replacement of obsolete and failed equipment, and replacement of systems damaged by storms. These new and reinforced transmission lines, substations, and protection and control systems are integral to providing reliable service to SPS ratepayers. Oversight for prioritization of capital investments was provided by the Financial Council and the Investment Review Council. The Investment Review Council reviews and approves major projects above $10 million, which are then brought to the Financial Council for review and approval. Standard Fulton Direct Revenue Requirement Page 12 RR8-375 of

13 governance processes were followed in evaluating, selecting, and monitoring execution of the capital projects. SPS witness Raynard A. Gray discusses the capital projects budgeting process in more detail. Q. Please describe the Transmission and Substation capital additions in more detail. A. In the following Table JSF-RR-3, I will discuss the top five (in terms of total company dollars) Transmission and Substations capital additions for the 12-month period at issue. TABLE JSF-RR-2 Project Title Total Project Dollars Why it was Reasonable and Necessary to Construct this Project TXN Hitchland- Ochiltree County Project STEP Randall County Interchange Project $29,050,165 This project constructed a 230-kilovolt ( kv ) line from Hitchland Substation to the Ochiltree substation (Perryton) and a 230/115-kV interchange at the Ochiltree Substation with connections from existing 115-kV lines into the new substation. SPP issued a notice to construct ( NTC ) for this project related to reliability issues. $20,384,418 This project consists of upgrading existing 115-kV transmission lines between the Randall Substation to East Plant and to the Osage Substation, constructing a new 230-kV transmission line between the Randall Substation and the Amarillo South Substation; and adding a second 230/115-kV auto-transformer at the Randall Substation. These upgrades will add more capacity to the transmission system in the Amarillo area, relieving the overloaded elements during system intact and single contingency summer peak conditions. SPP issued an NTC for the project to address reliability issues. Fulton Direct Revenue Requirement Page 13 RR8-376 of

14 Project Title Total Project Dollars Why it was Reasonable and Necessary to Construct this Project TUCO- Mooreland (Woodward) Project Chaves 230-kV Bus Rebuild Project LEA Co. COOP 115-kV Project $18,948,329 This project constructs a single circuit 345-kV line between the TUCO Substation, near Lubbock, TX, and Woodward, Oklahoma to interconnect with Oklahoma Gas and Electric Company ( OGE ). SPS will construct the line to just inside the Texas/Oklahoma state line and OGE will construct from there into Woodward, Oklahoma. For this project, SPP issued an NTC to SPS and OGE based on the Balanced Portfolio economic studies SPP conducted. $10,965,248 This project modified the 230-kV bus from a straight bus to a breaker-and-a-half design to increase the reliability of the station and service to the Roswell-Artesia, New Mexico area. $9,081,005 This project provided another point of interconnection for Lea County Electric Cooperative as well as additional reliability benefits with the construction of the Johnson Draw Substation. SPP issued an NTC for this project to address reliability issues In addition, the various Transmission and Substation capital additions fall into several general categories, each of which has several projects. The following list describes, for each category as a whole, the reasonableness and necessity for the capital additions that fall into that category. (1) Transmission Service (TS) transmission system upgrades for new transmission lines and substations necessary to provide transmission service from generation to load inside the SPS area or through the SPS area under either the Xcel Energy Open Access Transmission Tariff ( OATT ) or the SPP OATT. SPS is required to make these upgrades under the OATTs. In addition, these capital additions provide a benefit to SPS s Texas retail customers by enhancing the reliability of the transmission system and by increasing SPS s access to generation resources. (2) Generation Interconnection (GI) transmission system upgrades necessary to connect new generation sources to the SPS transmission system as required by the SPP OATT. These capital additions may have Fulton Direct Revenue Requirement Page 14 RR8-377 of

15 the incidental benefit to SPS s Texas retail customers of enhancing SPS s transmission system reliability. (3) Load Interconnection (LI) transmission system upgrades necessary to connect new load-serving substations for either SPS retail or wholesale customers, including cooperatives, municipal electric utilities, and other investor-owned utilities. The load interconnection request for the wholesale customers is made under either the Xcel Energy OATT or the SPP OATT, as appropriate, as their request constitutes a request for network transmission service. Again, these capital additions provide a benefit to SPS s Texas retail customers for the same reason the Transmission Service upgrades provide a benefit. (4) Reliability Projects (RE) transmission upgrades identified by SPS or the SPP that are needed to maintain reliability on the SPS transmission system. Upgrades required from the SPP Transmission Expansion Planning process fall into this category as well. SPS Texas retail customers benefit from the maintenance and improvement in transmission system reliability by having a reduced risk with respect to both frequency and duration of outages, and by having reduced operational constraints. (5) System Refurbishment (SR) transmission upgrades to replace stormdamaged equipment and aged or failed equipment. SPS s Texas retail customers benefit from these capital additions through a restoration of service, improved transmission reliability, the prevention of possible future outages, and avoiding higher maintenance costs associated with some aging equipment. (6) Other (OT) transmission projects such as tool and equipment purchases, spare parts, and data acquisition including fault or disturbance recorders. These capital additions support the projects in the first five categories and enhance or improve transmission reliability by enabling SPS to conduct diagnostic testing to prevent outages. Q. You have described capital additions totaling approximately 56% of the total cost of the Transmission and Substation capital additions that SPS is asking to include in its rate base. remaining capital additions? Why have you not specifically covered the A. In light of the number of items and relative dollar amounts, I have not gone into a detailed discussion of these additions in order to keep the discussion to a Fulton Direct Revenue Requirement Page 15 RR8-378 of

16 manageable level. These capital additions, however, are presented in Attachment JSF-RR-3, discussed earlier. Q. Were the remaining capital additions that you have not described in detail needed? A. Yes. These capital additions were needed to provide reliable electric service to SPS s customers and the costs for these projects were reasonably incurred. Fulton Direct Revenue Requirement Page 16 RR8-379 of

17 1 IV. CONCLUSION Q. Were Attachments JSF-RR-1 and JSF-RR-3 prepared by you or under your direct supervision and control? A. Attachments JSF-RR-1 and JSF-RR-3 were prepared by my staff and myself. Attachment JSF-RR-2 was prepared by Ms. Perkett and her staff. My staff and I 6 have reviewed this attachment and I believe it to be accurate. The same information provided in Attachment JSF-RR-2 is presented in Ms. Perkett s Attachment LHP-RR-2 and is attached to my testimony for the convenience of those reviewing my testimony. Q. Does this conclude your pre-filed direct testimony? A. Yes. Fulton Direct Revenue Requirement Page 17 RR8-380 of

18 RR8-381 of

19 Attachment JSF-RR-1 Page 1 of 2 PARTIAL LIST OF PRIOR TEXAS AND NEW MEXICO TESTIMONY For John S. Fulton Public Utility Commission of Texas Dockets Docket No Application of Southwestern Public Service Company for Approval of a Transmission Cost Recovery Factor Docket No Docket No Joint Report and Application of Sharyland Utilities, L.P., Sharyland Distribution & Transmission Services, L.L.C., and Southwestern Public Service Company for Approval of Purchase and Sale of Facilities, for Approval of Regulatory Accounting Treatment of Gain on Sale, and for Transfer of Certificate Rights Application of Southwestern Public Service Company for Authority to Change Rates and to Reconcile Fuel and Purchased Power Costs for the Period January 1, 2010 through June 30, 2012 Docket No Docket No Application of Southwestern Public Service Company for Authority to Change Rates and to Reconcile Fuel and Purchased Power Costs for 2008 and 2009 Application of Southwestern Public Service Company for Approval of a Transmission Cost Recovery Factor Docket No Application of Southwestern Public Service Company for: (1) Approval of Line Loss Factors, and (2) Authority to Implement Revised Fuel Factors Docket No Application of Southwestern Public Service Company for: (1) Authority to Change Rates; Reconciliation of Its Fuel Costs for 2004 and 2005; (3) Authority to Revise the Semi-Annual Formulae Originally Approved in Docket No Used to Adjust Its Fuel Factors; and (4) Related Relief RR8-382 of

20 Attachment JSF-RR-1 Page 2 of 2 PARTIAL LIST OF PRIOR TEXAS AND NEW MEXICO TESTIMONY For John S. Fulton New Mexico Public Regulation Commission Cases Case No UT Case No UT Case No UT In the Matter of Southwestern Public Service Company s Application for Revision of Its Retail Rates Under Advice Notice No. 245 In the Matter of Southwestern Public Service Company s Application for Revision of Its Retail Rates Under Advice Notice No. 235 In the Matter of the Application of Southwestern Public Service Company for Revision of Its Retail Electric Rates Pursuant to Advice Notice Nos. 217, 218, and 219 and Request for Expedited Interim Relief Authorizing Recovery of Capacity Related Costs Associated with the New Hobbs Generating Station RR8-383 of

21 Attachment JSF-RR-2 Page 1 of 22 Transmission and Substation Capital Additions (A) (B) (C) (D) (E) (F) (G) Work Order Number Work Order Description Asset Class Witness Parent Parent Description In-Service Date PHILLIPS #1 69KV SWITCH REPLACEMENT Electric Transmission Fulton Phillips #1 Switch Replacement PHILLIPS #1: 69KV SWITCH REPLACEMEN Electric Transmission Fulton Phillips #1 Switch Replacement Total T-41 ADD TAP STRUCTURE AND SWITCH F Electric Transmission Fulton Agave-Red Hills, Line(Ochoa) Total AMOCO WASSON SUB 230KV BRKR ADDITIO Electric Transmission Fulton Ammoco Wasson 230 kv Breaker Addt, Total AMOCO SW STA, CONTROLS MOD FOR CUST Electric Transmission Fulton Amoco Switching Station Relayi Total V80 INST TAP AND SWITCH FOR APACHE Electric Transmission Fulton Apache Roberts Tap Switch, Line V80 INST WAVE TRAP STRUCT AT ALLRED Electric Transmission Fulton Apache Roberts Tap Switch, Line SPS METER / APACHE ROBERTS SUB Electric Transmission Fulton Apache Roberts Tap Switch, Line Total DENVER CITY - 69KV APT REPLACEMENT Electric Transmission Fulton Denver City Power Plant, Rpl APT s, Total KRESS- 69KV APT REPLACEMENT Electric Transmission Fulton Kress- Replace APT s, Sub Total HOCKLEY CO INTG: RPL 115KV APT BUS Electric Transmission Fulton Hockley Co -Replace APT s, Sub Total MOORE CO APT REPLACEMENTS Electric Transmission Fulton Moore Co - Rpl APT s, Sub Total PANTEX NORTH / REPLACE APT'S Electric Transmission Fulton Pantex North - Rpl APT s, Sub Total PANTEX SOUTH / REPLACE APT'S Electric Transmission Fulton Pantax South - Rpl APT s, Sub Total PHILLIPS #1-69KV APT REPLACEMENT Electric Transmission Fulton Ohillips Refinery #1 - Rpl APT s, S Total SHELL CO2: RPL 115KV APT BUS PTS Electric Transmission Fulton Shell CO2 - Rpl APT s, Sub Total NICHOLS APT REPLACEMENTS Electric Transmission Fulton Nichols Station Sub - Replace APT s Total PLANT X - 230KV APT REPLACEMENT Electric Transmission Fulton Plant X Station - Rpl APT s, Sub Total AMERADA HESS INTG: RPL 115KV APT BU Electric Transmission Fulton Amerada Hess CO2 APT Rplmnt, Sub Total CARLISLE INTG: RPL 2 115KV APT BUS Electric Transmission Fulton Carlisle Interchange APT Rplmnt, Su CARLISLE INTG: RPL 69KV PT Electric Transmission Fulton Carlisle Interchange APT Rplmnt, Su Total HUTCHINSON CO INTG / REPLACE 115KV Electric Transmission Fulton Hutchinson Co.-Rpl APT, Sub Total BAILEY - 69KV APT REPLACEMENT Electric Transmission Fulton Bailey Co. Interchange Rpl APT, Sub Total CANYON WEST - 115KV APT REPLACEMENT Electric Transmission Fulton Canyon West Sub Rpl APT, Sub Total PHILLIPS #2-69KV APT REPLACEMENT Electric Transmission Fulton Phillips refinery #2 Rpl APT, Sub Total LUBBOCK EAST - 69KV APT REPLACEMENT Electric Transmission Fulton Lubbock East Intchg 69kV Rpl APT, S Total FLOYD COUNTY - 69KV APT REPLACEMENT Electric Transmission Fulton Floyd Co - Replace APTs, sub Total HALE COUNTY - 69KV APT REPLACEMENT Electric Transmission Fulton Hale Co - Replace APTs, sub Total PLAINS - 115KV APT REPLACEMENT Electric Transmission Fulton Plains Sw - Replace APTs, sub Total SEAGRAVES - 69KV APT REPLACEMENT Electric Transmission Fulton Seagraves - Replace APTs, sub Total LYNN CO - 69KV APT REPLACEMENT Electric Transmission Fulton Lynn Co - Replace APTs, sub Total COCHRAN - 69KV APT REPLACEMENT Electric Transmission Fulton Cochran Co-Replace APT,Sub Total Z-56- SERO-RELOCATE SINGLE POLE FOR Electric Transmission Fulton Artesia structure, Line Total SPS METER / HOWARD SUB TRANS NEW 11 Electric Transmission Fulton Howard Substation HOWARD SUB TRANS ADD 2ND XFMR AND BElectric Transmission Fulton Howard Substation Total HOWARD SUB -GREENBELT 115KV TERMINAElectric Transmission Fulton Howard Sub, Greenbelt 115kV, Term,S Total LOPEZ-NEW 115KV RING BUS SUBSTATION Electric Transmission Fulton Campbell St. Bus Modification,Sub Total W-59 LOPEZ-CAMPBELL 115KV 2013 CONV Electric Transmission Fulton Campbell St. Sub. Line Total Norton T-Line, ROW Electric Transmission Fulton Norton T-Line,Lopez/Quay,ROW Total CANADIAN SUB ADD 69KV CAPACITOR Electric Transmission Fulton Canadian Sub 7.2 MVAr Capacito Total W-25 PECOS INTER. - OCOTILLO SUBSTA Electric Transmission Fulton Carlsbad Octillo 115kV, Line Total PECOS SUB 115KV BREAKER ADDITION Electric Transmission Fulton Calsbad Octillo Sub Total CHAVES 230KV BUS REBUILD - #2 WO Electric Transmission Fulton Chaves 230 kv Bus, Line ROSWELL INTG. RELAY UPGRADE V77 (CH Electric Transmission Fulton Chaves 230 kv Bus, Line RR8-384 of

22 Attachment JSF-RR-2 Page 2 of 22 Transmission and Substation Capital Additions (A) Work Order Number (H) (I) (J) (K) (L) Additions to Plant-in-Service (Jul Jun. 2013) XES Charges (Included in Column H) Other Affiliate Charges (Included in Column H) Total Affiliate Charges (Included in Column H) Total Native Charges (Columns H less K) Within the Total Additions to Plant-in-Service Shown in Column (H) 159, , (15,081.25) (13,697.77) 0.00 (13,697.77) (1,383.48) 144, (13,168.61) 0.00 (13,168.61) 158, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , (23.45) 6, , (6,177.15) (23.45) 6, , (6,177.15) (125.56) (125.56) (125.56) (125.56) (78.06) (78.06) (78.06) (78.06) 10, , , , (1,056.91) (1,056.91) (1,056.91) (1,056.91) (566,218.25) (566,218.25) (566,218.25) (566,218.25) (55,131.00) (55,131.00) (55,131.00) (55,131.00) 9,596, , , , ,518, (3,807.78) (3,807.78) RR8-385 of

23 Attachment JSF-RR-2 Page 3 of 22 Transmission and Substation Capital Additions (A) (B) (C) (D) (E) (F) (G) Work Order Number Work Order Description Asset Class Witness Parent Parent Description In-Service Date ROSWELL CITY 115KV RELAY UPGRADE T2 Electric Transmission Fulton Chaves 230 kv Bus, Line Total T26 - RETERMINATE AT CHAVES CO FOR Electric Transmission Fulton Chavez Bus T-26, Line Total V77 - FINAL TERMINATION INTO NEW SU Electric Transmission Fulton Chavez Bus V-77, Line Total K38- RETERMINATION AT CHAVES CO DUE Electric Transmission Fulton Chaves Bus K-38, Line Total K66 - RETERMINATE LINE DUE TO SUB E Electric Transmission Fulton Chaves Bus K-66, Line Total ROSWELL CITY 115KV RELAY UPGRADE T2 Electric Transmission Fulton Rosell City Relay T-26, Sub Total EDDY CO 230KV RELAY UPGRADE K38 (CH Electric Transmission Fulton Eddy Co. Relay K-38, Sub Total ROSWELL INTG 115KV RELAY UPGRADE V7 Electric Transmission Fulton Roswell Interchange Relay V-77, Sub Total SAN JUAN 230KV RELAY UPGRADE K66 (C Electric Transmission Fulton San Juan Relay K-66, Sub Total GRASSLAND-REPLACE RELAYING ON 230KV Electric Transmission Fulton Cirrus Wind-Grassland, Sub Total BORDEN-REPLACE RELAYING ON 230KV LI Electric Transmission Fulton Cirrus Wind-Borden Sub Total CIRRUS - REIMB NEW 3 BREAKER RING B Electric Transmission Fulton Cirrus Wind Substation Total K48 - CIRRUS WIND IN AND OUT Electric Transmission Fulton Cirrus Wind TL, Line Total HALEY - EXPAND TO 230KV BRKR-AND-HA Electric Transmission Fulton Clipper Wind Farm 400MW 230kV Sub Total STEVENS COUNTY SUB Electric Transmission Fulton Conestoga Wind, Sub Total FINNEY REPLACE 345KV REACTOR Electric Transmission Fulton Finney Reactor Replacement, Sub Total Z-74 INSTALL 12 MI LINE FOR CRMWA 2 Electric Transmission Fulton CRMWA #23, Line Total CUNNINGHAM L980 BREAKER REPLACEMENTElectric Transmission Fulton Cunningham Breaker Replacement L Total SPS METER/T-59 INSTALL METERING FOR Electric Transmission Fulton Deaf Smith # 24, Line T-59 INSTALL 3 WAY SWITCH AND TAP D Electric Transmission Fulton Deaf Smith # 24, Line Total W-40 SER0-115KV FROM CANYON WEST TO Electric Transmission Fulton Deaf Smith T-03 term. 115kV, Line W-41 SER0 115KV FROM HEREFORD TO DE Electric Transmission Fulton Deaf Smith T-03 term. 115kV, Line T-63 SER0 INSTALL TAP FOR W-41 HERE Electric Transmission Fulton Deaf Smith T-03 term. 115kV, Line Total DEAF SMITH 115KV TERMINAL TO CANYON Electric Transmission Fulton Deaf Smith T-03 term., Sub HEREFORD INTG RELAY REPLACE ON LINE Electric Transmission Fulton Deaf Smith T-03 term., Sub CANYON WEST RELAY REPLACE ON LINE T Electric Transmission Fulton Deaf Smith T-03 term., Sub Total K-11 SER0 NEW DBL CIRCUIT WITH W-40 Electric Transmission Fulton Deaf Smith K kv, Line Total W-21 EDDY COUNTY TO EAGLE CREEK INS Electric Transmission Fulton Eagle Creek 115kV Line W-17 SEVEN RIVERS - EAGLE CREEK Electric Transmission Fulton Eagle Creek 115kV Line Total Seven River-Eagle Creek Sub ROW Electric Transmission Fulton Eagle Creek 115kV ROW Total EAST CLOVIS SUB TRANS HIGH SIDE Electric Transmission Fulton East Clovis kV Conv, Sub Total T-76 CURRY CO TO NORTON 115KV CONVE Electric Transmission Fulton East Clovis Conversion, Line V-75 CURRY CO TO FEC CLOVIS 115KV C Electric Transmission Fulton East Clovis Conversion, Line Total EDDY CO ADD 2ND 230/115KV XFMR Electric Transmission Fulton Eddy Co. 230/115 auto, Sub Total PHILLIPS 1 - REPLACE BREAKERS 1F25 Electric Transmission Fulton Phillips #1 Rpl Breakers 1F25,1F30, Total RIVERVIEW? REPLACE RELAYING LINE V Electric Transmission Fulton Riverview V38 ELR Relays, Sub Total ETTER RURAL INSTALL 115KV CAP BANK Electric Transmission Fulton Etter Rural Cap Bank, Sub Total EUNICE ADD 28MVAR CAP BANK Electric Transmission Fulton Eunice 28.8 Mvar Cap Bank, Sub Total CITA CANYON - NEW 230KV SUBSTATION Electric Transmission Fulton Higher Power Sub Total MUSTANG- ADD 230KV TERMINAL FOR UNI Electric Transmission Fulton GSEC Mustang 6 Generator Total T25 MOORE CO-DUMAS 19TH INST 3-WAY Electric Transmission Fulton GSEC RB_S&S Inter K31&T25 Switch,Li Total K-31,SWITCH,REHAB,SCHLD,SWITCH/TAP Electric Transmission Fulton GSEC RB-S&S IA 230kV, Line Total K KV LINE HAPPY WHITEFACE WIN Electric Transmission Fulton Happy Whiteface Wind Gen, line Total HALEY- NEW 230KV 3-RING SUB Electric Transmission Fulton Happy Whiteface East, Sub Total RR8-386 of

24 Attachment JSF-RR-2 Page 4 of 22 Transmission and Substation Capital Additions (A) Work Order Number (H) (I) (J) (K) (L) Additions to Plant-in-Service (Jul Jun. 2013) XES Charges (Included in Column H) Other Affiliate Charges (Included in Column H) Total Affiliate Charges (Included in Column H) Total Native Charges (Columns H less K) Within the Total Additions to Plant-in-Service Shown in Column (H) (7,007.80) (5,503.64) 0.00 (5,503.64) (1,504.16) 9,585, , , , ,513, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , (638,449.04) 23, , (661,769.92) (638,449.04) 23, , (661,769.92) 350, , , , , , , , , , , , (292,174.94) (292,174.94) (292,174.94) (292,174.94) 704, , , , , , , , , , , , , , (9,018.96) (9,018.96) (5,596.68) (5,596.68) (11,492.47) (11,492.47) (12,196.85) (12,196.85) (29,286.00) (29,286.00) 5, , , , , , (389.20) (389.20) (1,212.83) (1,212.83) (1,602.03) (1,602.03) 2, , , , , , , , , , , , , , , , , , ,026, , , ,991, ,026, , , ,991, , , , , , , , , , , , , , , , , , , , , ,176, , , ,165, ,176, , , ,165, (1,241,840.88) 15, , , (1,261,492.38) (1,241,840.88) 15, , , (1,261,492.38) 306, , , , , , , , , , , , (290,020.18) 52, , (342,866.17) (290,020.18) 52, , (342,866.17) RR8-387 of

25 Attachment JSF-RR-2 Page 5 of 22 Transmission and Substation Capital Additions (A) (B) (C) (D) (E) (F) (G) Work Order Number Work Order Description Asset Class Witness Parent Parent Description In-Service Date HILLSIDE SUB NEW SUB HIGH SIDE Electric Transmission Fulton Hillside Sub, Sub Total V-52 INSTALL 2 WAY SWITCH AND TAP H Electric Transmission Fulton Hillside Sub, Line Total Hitchland to Woodward,OK,J12,ROW Electric Transmission Fulton Hitchland to Woodward 345 kv OK, RO Total T-14 SANGER TO OXY WRECK OUT REBUIL Electric Transmission Fulton Hobbs Improvemennts T-14, Line T-13 REMOVE SWITCH 4J12 SANGER SWIT Electric Transmission Fulton Hobbs Improvemennts T-14, Line T-14 MADDOX TO SANGER WRECK OUT REB Electric Transmission Fulton Hobbs Improvemennts T-14, Line Total T42 115KV WRECKOUT REBUILD MADDOX T Electric Transmission Fulton Hobbs Improvements T-42, Line Total T42 - Maddox to Monument,ROW Electric Transmission Fulton T-42 Maddox to Monument, NM ROW Total T-14 Maddox to Sanger, ROW Electric Transmission Fulton T-14 Maddox to Sanger NM, ROW Total T14 MADDOX TO SANGER RECONDUCTOR Electric Transmission Fulton T-14 Rework Maddox to Sangor, Line Total K-52 POTASH JUNCTION TO CUNNINGHAM Electric Transmission Fulton Intrepid Potash 230kV, Line Total Z-01 POTASH JUNCTION TO DUVAL #1 Electric Transmission Fulton Intrepid Potash 69kV, Line Z-22 POTASH JUNCTION TO KERMAC Electric Transmission Fulton Intrepid Potash 69kV, Line Total RED BLUFF - INSTALL CAPACITOR BANK Electric Transmission Fulton Intrepid West-Red Bluff Swicth Sta, Total T-38 WIPP-POTASH JUNCTION- TAP TO I Electric Transmission Fulton Intrepid West T38 Tap, Line Total LUBBOCK SOUTH - REPLACE RELAYING LI Electric Transmission Fulton Jones Plant Bus, Sub GRASSLAND - REPLACE RELAYING LINE K Electric Transmission Fulton Jones Plant Bus, Sub LUBBOCK SOUTH - REPLACE RELAYING LI Electric Transmission Fulton Jones Plant Bus, Sub Total K-14 RETERMINATE AT JONES STATION D Electric Transmission Fulton Jones Plant Bus, Line K-15 RETERMINATE AT JONES STATION D Electric Transmission Fulton Jones Plant Bus, Line K-07 RETERMINATE AT JONES STATION D Electric Transmission Fulton Jones Plant Bus, Line K-08 RETERMINATE AT JONES STATION D Electric Transmission Fulton Jones Plant Bus, Line Total JONES REPOWERING 230KV ADDT Electric Transmission Fulton Jones Plant Repowering, Sub Total KINGSMILL - 2ND TRANSFORMER ADDITIO Electric Transmission Fulton Kingsmill Auto, Sub KINGSMILL SUBSTATION ADD 2ND TRANSF Electric Transmission Fulton Kingsmill Auto, Sub Total Z-17 69KV REMV ONE 3-POLE WOOD TERM Electric Transmission Fulton Kingsmill Z-17 Reroute Total V-29 REMOVE ONE LIFT STR & RETERM T Electric Transmission Fulton Kingsmill V-29 Reroute Total Y-59 69KV REMV WOOD 3-POLE TERM, IN Electric Transmission Fulton Kingsmill Y-59 Reroute Total KINGSMILL - 69KV UPGRADES Electric Transmission Fulton Kingsmill 69kV, Sub Total W-35- SERO JOHNSON DRAW T Electric Transmission Fulton Lea County Coop, Line W-33 -SERCO-JOHNSON DRAW TO HIGGS Electric Transmission Fulton Lea County Coop, Line W-36 - SERO JOHNSON DRAW Electric Transmission Fulton Lea County Coop, Line W-34 -SE-00- JOHNSON DRAW TO AMFRAC Electric Transmission Fulton Lea County Coop, Line Total JOHNSON DRAW 115KV SWITCHING STATIO Electric Transmission Fulton Lea County Coop, Sub HIGG SUB TRANS ADD CARRIER SYSTEM Electric Transmission Fulton Lea County Coop, Sub GAINES CO TRANS WAVE TRAP REPLACEMEElectric Transmission Fulton Lea County Coop, Sub Total ROW Johnson Draw Sub Electric Transmission Fulton Lea County Coop, Land Total ROW Taylor-Johnson Draw W-36 Electric Transmission Fulton Lea County Coop,ROW Total TAYLOR SWITCH STATION ADD TRANSFER Electric Transmission Fulton Taylor Relay, Sub Total Hobbs Gen, Land Electric Transmission Fulton Sub, Land Total W KV 6 MILES 397 ACSR LEGACY Electric Transmission Fulton Legacy Interchange 115kV Line Total Z-53,ELR,REHAB,SCHLD,REPL ARMS WITH Electric Transmission Fulton ELR SPS TX, 69kV, Line Total V-55,TX 115 ELR,REHAB,SCHLD,REPL 52 Electric Transmission Fulton ELR SPS TX, 115kV, Line Total K-56,ELR,REHAB,SCHLD,REPL 72 ARMS 1 Electric Transmission Fulton ELR SPS TX, 230kV, Line Total V-26,ELR,REHAB,SCHLD,REPL 102 ARMS Electric Transmission Fulton ELR SPS NM, 115kV, Line Total T-53,PHASE 10,REHAB,SCHLD,REPL ARMS Electric Transmission Fulton SPS T-Line EOL Rplmnts Ph 10 TX, Li T-98,PHASE 10,REHAB,SCHLD,REPL ARMS Electric Transmission Fulton SPS T-Line EOL Rplmnts Ph 10 TX, Li T-25,PHASE 10,REHAB,SCHLD,REPL ARMS Electric Transmission Fulton SPS T-Line EOL Rplmnts Ph 10 TX, Li Z-41,PHASE 10,REHAB,SCHLD,REPL ARMS Electric Transmission Fulton SPS T-Line EOL Rplmnts Ph 10 TX, Li Total RR8-388 of